Below is a summary of the specifics of the investment allowance applicable from 1st July 2009.

Business Turnover                                 Less than $2 million ( Small Business) 
Date of Order                                            01/07/2009 to  31/12/2009 
Date of Installation                                   01/07/2009 to 31/12/2010
Minimum Cost                                          $1,000
Rate to Claim                                             50% of the cost of asset

Business Turnover                                  Greater than $2 million ( Large Business)
Date of Order                                             01/07/2009 to 31/12/2009
Date of Installation                                    01/07/2009 to 31/12/2010
Minimum Cost                                           $10,000
Rate to Claim                                              10% of the cost of the asset

For large businesses, orders placed before 30th June 2009 and installed before 30th June 2010 are eligible for the 30% investment allowance amount. Orders placed after 30th June 2009 and installed between 30th June 2010 and 31st December 2010 will be eligible for the 10% investment allowance. 

If you are planning on financing the asset with a hire purchase, that finance will need to be in place by the 31st December 2009. If you finance with a chattel mortgage or bank loan you only need to have your order in by the 31st December 2009.

The investment allowance can only be claimed on the purchase of new assets, second hand purchases are not eligible. In addition to the investment allowance, businesses will still be eligible for other deductions on those assets such as depreciation.

It should be noted that assets ordered between 1st July 2009 and 31st December 2009 that meet the criteria for the investment allowance will be included in the 2010 income tax returns.