The Treasurer has announced a 10 per cent temporary investment allowance – in the form of an additional tax deduction.

The allowance will be applicable to most new tangible depreciating assets – which includes most items of plant and equipment – over $10,000 which are acquired or ordered by the end of the current financial year (ie 30 June 2010).

The investment allowance will apply from 12.01am AEDT 13 December 2008 until the end of 30 June 2009. To be eligible for the investment allowance, a taxpayer must start to hold the asset under a contract entered into between those times, or start to construct the asset between those times. Assets must also be installed ready for use by the end of 30 June 2010.