This will be an additional deduction based upon the cost of the depreciating assets.  For those older taxpayers who remember the investment allowance of several decades ago, it is very similar with more bells and whistles.

Features include:-

• Start to hold between 13 December 2008 and 30 June 2009, and installed ready for use by 30 June 2010 - 30% bonus, or
  
  
• In the following 6 months period (roughly) - 10%
  
  
• Small business entity minimum cost is $1,000, other businesses $10,000
  
  
• Business use proportion of GST exclusive cost (i.e. private use is excluded)
  
  
• Applies to most tangible depreciating costs e.g. machinery and equipment, but not land, trading stock, cars deducted under cents per kilometre rule
  
  
• Must be new - never previously been used or installed ready for use. There is an exception for reasonable testing and trialling - a demo car might pass when first used.
  
  
• It must be principally in Australia for the principal purpose of carrying on a business (assets held in a holding company may only generate rental income which is not necessarily business income)