There is scratchy info about a Scheme whereby businesses will be eligible for a 30% rebate on new equipment purchased prior to june 30 2009.

Can anyone shed some light on this topic.

recthub,
I believe it's a further 30% investment allowance (I read tax deduction, not necessarily rebate)in the first year- on top of general depreciation. ie 130% total over the deprciation life. The scheme was to end June 30 but has been extended through to December

Yes rojo I have comfirmed that myself, only the allowance drops back to 10% after june 30.

Now what puzzles me here is that in a time when jobs are at risk and with overall job security at an all time low, why an earth would any government give incentives to buy new equipment, much of which is either imported or manufactured from imported goods.

Here we have Krud and the 'red mastiff' bringing back the bad old 'unfair dismisal'laws and loosening the riens on the unions.

Would it not make sence to make employing more attractive than buy new equipment.

In my industry alone, one $50,000 machine can put three people out of work.

It just does not make any sence to me!

rechtub,
if equipment is ordered by June 30 this year but installed by June 30 next year the 30% can be claimed in the 2010 tax year.

In relation to why the incentive, well I can only surmise that without active capital purchasers salesmen don't have an income, manufacturers fold and productivity declines.
While it most likely means some jobs do disappear others grow -specialised maintainance, extra transport/packageing/sales/marketing required.
What we can't compete on in world trade is our labour costs, so we can either equip with efficient machinery and loose jobs or simply export those jobs overseas. Net result the same. At least the ancillary jobs remain in Australia.

Rolo, I have been an employer for over 20 years and still am today.

During this time it is simply mind boggling to think of the hurdels put in front of us when it comes to employing staff.

As for our labor markets and our anticompetetiveness, you may have to check with STG on that spelling, one huge problem is that Aussies just will not buy Australian made goods as they are to expensive.

I seriously doubt that giving incentives to buy new equipment, while at the very same time making it less attractive for many to employ is the answer.