[Linux-aus] Australian Federal Budget - software depreciation

ajdlinux at gmail.com ajdlinux at gmail.com
Wed May 14 03:25:33 EST 2008

On 5/14/08, Marco Ostini <m.ostini at uq.edu.au> wrote:
> Greetings all,
> So Last night the Australian Federal Budget was released, the first from a
> new Federal Government in a while.
> The First Budget of a new government is usually where they attempt to make
> their mark and be bold. It was one of our best chances to get FOSS
> integrated into Australian governance, but so far I can see no real
> evidence of that, despite the submission LA made.
> After reflection that's not too surprising, as there has been minimal one
> on one contact with the Federal Treasurer. This measure is normally highly
> desirable in concert with submissions, to communicate a specific message
> through to the decision making process.
> After reading the Australian Budget documents last night I came across this
> interesting detail.
> Within 'Revenue Measures' Under the title of 'Capital gains tax' there's
> the option of 'Depreciation of computer software'. Worth a substantial
> quantity of money, It's specifically forecasted as:
> $m	2008-09 	15.0
> $m	2009-10 	300.0
> $m	2010-11 	681.0
> $m	2011-12 	318.0
> That's 1.3 Billion forecasted in the next 4 years.
> You'll find the document here:
> http://www.aph.gov.au/budget/2008-09/content/bp2/html/revenue-01.htm
> If I'm reading this correctly, the Government expects to make about 1.3
> Billion on 'Depreciation of computer software'.(???) Could anyone who
> understands this better than I explain it to the list?
> As for influencing the Federal Government to use and include FOSS, we need
> to persistently continue in this endeavour.


Summary: the tax laws are being changed so the depreciation period for
capital expenditure on in-house computer software is now 4 years
rather than 2.5.

In-house software is defined as "computer software or the right to use
computer software that is acquired, developed or developed by someone
else and that is mainly used by the taxpayer in performing the
functions for which the software was developed."

Andrew Donnellan <><                   ajdlinuxATgmailDOTcom
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