The clarification of the 10 percent investment allowance last month clearly identifies the opportunities. For the $10,000 minimum cost price of new tangible capital equipment, the allowance is provided as an additional tax deduction where the clients claim 110 percent of the cost price with an outright 10 percent deduction available when the asset is ready for use and the remaining 100 percent over the life of that asset. The time limit for the contract is 30th June 2009 to be installed by 30th June 2010.

The Board of the Reserve Bank of Australia (RBA) has announced it has dropped the basic cash rate from 4.25 to 3.25 percent. This drop of one percent is in line with market expectations and analysts are saying it is indicative of the way the RBA is determined to keep Australia out of recession. Additionally, many believe the battle to beat inflation is nearly won with the latest figures showing an 11 year low.