On the 3rd of February 2009 the Prime Minister and The Minister for Small Business announced; this was updated in the Budget on 12 May 2009:

The Government will fund an investment allowance / tax break for all Australian businesses.

Small businesses (those with turnover of $2m or less a year) can claim an additional 50% tax deduction for eligible assets costing $1,000 or more that they acquire from 13 December 2008 to 31 December 2009, and install by the end of December 2010.

For all other (read BIG) businesses:

They can claim a 30% tax deduction for eligible assets costing $10,000 or more if acquired between 13 December 2008 to 30 June 2009, and install by the end of June 2010.

Also for eligible assets costing $10,000 or more that they acquire from 1 July 2009 to 31 December 2009 they can claim an additional 10% deduction where they are installed by 31 December 2010.

Eligible assets for the allowance are NEW tangible assets and  NEW expenditure on existing assets used in carrying on a business for which a deduction is available under the core provision of Division 40 (Capital Allowances) in the ITAA1997.

For more information on how you can take advantage on this investment allowance, please contact Moody Kiddell & Partners at 07-3272 7000 or visit www.mpkfinance.com.au