Tax rebate to drive new truck sales


Isuzu and Hino back the $2.7 billion tax break, hoping it will boost declining new truck sales

The Australian divisions of Isuzu and Hino are backing the Federal Government’s recent announcement of the $2.7 billion tax break and are banking on it leading to a spike in new truck sales.

The 30 percent rebate, which stems from the $42 billion Nation Building and Jobs Plan, means "there’s never been a more tax-effective time to buy a new truck", according to Hino Australia chief operating officer Steve Lotter.

"This is a golden opportunity to take advantage of the Federal Government’s business assistance measures," he says.

While the break only applies to vehicles which are purchased between December 13 and June 30, smaller businesses can also take advantage of the scheme for any aftermarket accessories.

"Small businesses—those turning over less than $3 million per annum—also qualify for a 30 percent tax cut on purchases to upgrade existing assets," Lotter says.

Isuzu Director and Chief Operating Officer Phil Taylor says the plan may help manufacturers and operators affected by the economic downturn or hesitant about investing in capital equipment.

"A modern and reliable truck fleet is critical to a successful business, and this investment allowance will prove attractive to any operators who are considering upgrading their equipment," Taylor says.

While the trucking industry has not been hit as hard as the automotive sector, Taylor saus Isuzu has noticed a slowdown in sales this year.

Lotter says Hino Financial services is currently looking at whether lease customers will also be granted the deduction.



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