Senate told to pass tax deduction

Senators told to pass the Government's 30 percent bonus tax deduction on new investments to support trucking industry

The Coalition and independent senators are being urged to pass the Government's plan for a 30 percent bonus tax deduction on new investments.

The Senate is scheduled to vote on the plan on May 13 after it is considered by the House of Representatives on Tuesday, and the Australian Trucking Association (ATA) says the Senate must agree to support it.

"The Shadow Minister for Small Business Steven Ciobo was cheered when he told the Australian Trucking Convention last month that the Coalition would not frustrate the passage of the Government's legislation," ATA Chairman Trevor Martyn says.

"We now need the Senate to lock in the Government’s plan as it stands. We can then have a discussion about extending the cut-off for the 30 per cent bonus beyond 30 June 2009, to increase its take up rate and to help offset the industry's credit difficulties."

If passed, the plan will give trucking operatores a 30 percent bonus tax deduction for new investments in assets like trucks and trailers between December 13 this year and June 30, 2009.

Operators will also receive a 10 percent bonus deduction for new investments from July to December 31 this year.

ATA Chairman Trevor Martyn says the the bonus deduction has delivered benefits for trucking companies and the industry’s suppliers.

"The survey we conducted in March-April showed that 43 per cent of trucking companies have changed their new asset purchases as a result of the bonus deduction," Martyn says.

"The industry’s spending on new equipment has fallen because of the economic downturn, but it would have gone down much further without the prospect of the deduction."

Martyn says the deduction is supporting equipment suppliers, which have been hit hard by the economic downturn and the inability for some trucking operators to secure credit.

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