Call for stimulus package to include software

Printing Industries is campaigning to have the Australian Government include software in the business tax break package announced as part of its $42 billion National Building and Jobs Plan.

Printing Industries CEO Philip Andersen, said 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.
 
“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,” he said.
 
The package allows a 30 per cent tax deduction for assets acquired from 13 December 2008 to 30 June 2009 and installed by 30 June 2010, as well as the additional 10 per cent deduction for eligible assets acquired from 1 July 2009 to 31 December 2009 and installed by 31 December 2009.
 
“In the printing industry software is a critical platform driving economic and commercial activity,” Andersen said.
 
“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.
 
“In other words the software enables the printer to become more efficient and hence more competitive.”
 
Andersen said 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.
 
“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.
 
“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,” he said.