Senate passes Government’s investment allowance proposal, with predictions of a jump in truck and machinery orders
The Senate has passed the Federal Government’s investment allowance proposal, which the trucking industry says will see an increase in orders for trucking equipment like vehicles and trailers.
Australian Trucking Association (ATA) Chairman Trevor Martyn says 43 percent of trucking companies had changed their new asset purchases as a result of the bonus deduction.
He says operators are likely to end up with “safer, more productive and efficient truck fleets”.
“The industry’s thanks must go to the Coalition and independent senators, who listened to the ATA and other industry groups and allowed it through the Senate,” Martyn says.
The legislation which was passed yesterday allows the budget night decision by the Rudd Government to extend the tax bonus for small companies earning under $2 million a year to December 31 and raise the saving from 30 to 50 percent.
Martyn says the extension will allow trucking operators more time to find finance to fund the initial purchase of equipment.
“The extension will give them [operators] more time to jump through the hurdles now imposed by lenders, as well as providing an additional incentive to upgrade their trucks,” he says.