BUDGET 09-10: Manufacturers back tax extension

Manufacturers back extension of investment allowance until December for small businesses

By Michael House

Trucking manufacturers have backed the decision by the Federal Government to raise the investment allowance to 50 percent and extend it to December for small businesses earning $2 million or less.

A number of manufacturers had been calling for an extension, claiming trucking operators were struggling to find finance in the current economical climate.

Isuzu Business Planning Manger Paul Evans says the announcement is positive for the industry and will hopefully turn customer interest in purchases.

"Hopefully this [the extension] will act as a catalyst and give some of the businesses who have been getting quotes some incentive to get out there and get the funds," Evans says.

The majority of manufacturers say they have experienced an increase in consumer interest since the incentive was introduced, the majority coming from the smaller businesses.

Volvo Australia is another company in favour of the extension but the company’s National Marketing and Communications Manager Mark Hughes believes that many companies may already have a plan on how to get finance.

"You would think that for smaller operators it’s a really attractive proposition," Hughes says.

"Im sure you are going to find that certain operators will have different practices in place to obtain finance."

Steve Lotter Chief Operating Officer at Hino Australia says he is happy to see the government helping out the industry.

"The government are doing a lot to help, I really think with all the efforts they are putting in the results will be visible," Lotter says.

The Government laws month told ATN it had no plans to extend the allowance.

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