A Shorten Labor Government will boost investment and create new jobs with the Australian Investment Guarantee targeted tax relief for businesses that invest in Australia and Australians.

Under Labors Australian Investment Guarantee, all businesses in Australia will be able to immediately deduct 20 per cent of any new eligible asset worth more than $20,000, with the balance depreciated in line with normal depreciation schedules from the first year.

Assets such as tangible machinery, plant and equipment (for example, trucks and utes, but not buildings) and intangible investments (such as patents and copyrights) would be eligible for the immediate deduction.

The Australian Investment Guarantee is a pro-growth, pro-jobs reform that rewards businesses making new investments in Australia.

Under Labors Australian Investment Guarantee, only companies that make the decision to invest in Australia will benefit from this tax relief while up to 60 per cent of the Conservatives company tax handout goes directly to foreign shareholders.

Over the past five years, business investment in Australia has collapsed by 20 per cent. Despite strengthening global economic conditions, business investment in Australia has remained subdued with the RBA commenting that non-mining business investment has been disappointingly low in recent years.

Labors plan invests in growing the Australian economy and creating Australian jobs.

Unlike previous asset write-off schemes, Labors Australian Investment Guarantee is permanent that means businesses can continue to take advantage of the immediate tax deductibility whenever they make a new investment in an eligible asset.

While Labors plan guarantees new investment in Australia, the Conservatives $65 billion tax giveaway to the top end town only guarantees windfalls for foreign shareholders and bigger executive bonuses.

Unlike the Government, Labors plan for tax relief is affordable and targeted and it works.

The Australian Investment Guarantee is part of Labors economic plan for Australia including properly funding schools, universities and TAFE, boosting apprenticeships, building a better NBN, and investing in job-creating infrastructure.

Our responsible economic plan will grow the economy, create jobs and improve the budget without forgetting the fair go.

Turnbull and his divided government are handing over a $65 billion tax giveaway to the top end of town while increasing income taxes for seven million working Australians.

A Shorten Labor Government will keep taxes lower for working Australians. Someone earning $70,000 a year will pay $350 less tax a year under a Labor Government.

Labors Australian Investment Guarantee has a budget impact of $3.4 billion over the forward estimates from 2018-19 and $10.3 billion over the medium term. This is more than paid for by Labors reforms to dividend imputation and other Labor budget announcements that have already been made.

Labors policy has been fully costed by the independent Parliamentary Budget Office.

More information on Labors policy can be found here.