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As you are probably aware, 2009 shall provide quite a few unique opportunities for tax, businessand investment planning.

We have provided a few key points from the budget for your review....

a) Small Business

A bonus deduction of 50 per cent will be available to small businesses that acquire an eligible asset between 13 December 2008 and 31 December 2009 and install it ready for use by 31 December 2010.

 This is truly an unbelievable change.

The investment allowance has increased from 10% to 30%, now to 50%.

Note: Assets must be brand new, and meet certain criteria including the way they are financed. This providesa real opportunity for smallbusiness owners looking to reinvest back into their business and receivean exceptional tax benefit at the same time.

Warning: the criteria is very specific and careful planningshould be implemented to ensure that you receive this generous concession. Kindly contact our officeor attend our information night.

b) Individuals and families

From 1 July 2010, the "Private Health Insurance Rebate" shall be means tested.

 We note that careful planning using corporate and trust structures maywell get around this!

 c) The First Home Owner's Boost will be extended for an extra six months, i.e. until 31.12.09.

 It appears as though the artificial demand for thelower end of the housing market shall continue.

 With unemployment rising, overall income levels and GDP falling, asset values including house prices are likely to follow. It remains to be seen whetherthe boost shall exceed the likely short term price hike.

 d) A Paid Parental Leave scheme will be available to parents for births and adoptions that occur on or after 1 January 2011.

 e)From the 2009/10 income year, taxpayers with an adjusted taxable income of over $250,000 will have excess deductions quarantined to the business activity under the non-commercial losses rules. A typical labor policy!

 f) Superannuation concessions

 e) Companies and trusts

 From 2010/11, the current R&D concession will be replaced by the new R&D tax credit.

The government will convert Medibank Private to a "for profit" government-owned business enterprise in early 2009/10.

Australian managed investment trusts will be able to make an irrevocable election to apply the capital gains tax regime as the primary code for taxing certain disposals of assets, with effect from the 2008/09 income year.

A limited CGT roll-over will be provided for assets transferred between trusts that have the same beneficiaries with the same entitlements and no material discretionary elements (ie fixed trusts).

f) Indirect and other taxes

The administration of GST is to be streamlined, and compliance costs reduced, from 1 July 2010.

 Important Note: This is not advice, you may not rely on any of the information above, it is general in nature and does not take into account your personal circumstances. Any error is unintentional, we cannot be held responsible for any error or misinformation, you must seek further appropriate advice before taking any action. Also, above budget measures are NOT law, merely proposed law. Best Wishes,