Philip Andersen, CEO of Printing Industries says that although the Association was very supportive of the small business and general business tax break, an urgent and immediate amendment was needed to the legislation.
He says, “Our feedback from treasury officials suggests that the taxation treatment of software as an intangible asset means that it does not fall under the definition of new tangible assets, which attract taxation deductions in the government stimulus package.”
The package allows a 30 per cent tax deduction for assets acquired from December 13 2008 to June 30 2009 and installed by June 30 2010, as well as the additional 10 per cent deduction for eligible assets acquired from July 1 2009 to December 31 2009 and installed by December 31 2009.
Andersen continues that in the printing industry software is a critical platform driving economic and commercial activity.”
He says, “Ongoing outlays on software are necessary to support and drive the physical equipment and assets such as printing presses, image setters, computer-to-plate equipment and workflow management systems.”
Andersen adds that Printing Industries had advised the Prime Minister that the initiative could be more effective and useful for the printing industry by also expanding the definition of eligible assets to include both new as well as used printing machinery and equipment.
He says, “A printing company that has, for example, a 12 year-old printing press should be able to use the new investment incentives to retire the old press in favour of a new printing press or a reasonably new printing press.”
Andersen concludes, “In terms of improvements to productivity and efficiency, investing in a printing press that is six months old would help deliver the printing company enormous economic benefits due to enhanced features and capabilities of the newer machine as opposed to its 12 year-old press.”
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