The federal government has announced an incentive for Australian businesses to purchase new capital equipment. Until June 30, businesses with under $2 million turnover will receive an up front tax deduction of 30% for hardware purchased over $1000.

The tax deduction will be available for any business with a turnover of $2 million a year or less. It will fall to 10 per cent for equipment bought from July until the end of December for installation by the end of 2010.

Bigger businesses will be eligible for the same tax deductions but will have to spend at least $10,000 on new equipment to qualify.

You only have till June 30 to receive the full deduction though, so it’s time to act now.

Read more over at The Age Small Business section.