FARMERS and other small enterprises are being urged to take advantage of the Federal Government's small business tax break.

Small businesses are entitled to claim a 50 per cent bonus tax deduction for eligible assets costing more than $1000, acquired by December 31 and installed ready for use by December 31, next year.

A small business is defined as having a turnover of less than $2 million a year.

The tax break is in addition to the normal depreciation allowance.

For example, a small business ordering and taking delivery of a new vehicle at a cost of $50,000 can claim a bonus tax deduction of $25,000 off its taxable income.

All other businesses have access to a 10 per cent tax break for eligible assets contracted by December 31.

The Victorian Automobile Chamber of Commerce is advising small business owners to act quickly.

Delivery or installation of an eligible asset does not have to be completed until the end of next year but the paperwork must be signed off by the end of this year.