Truck orders poised to increase after tax break boosted

The legislation, passed yesterday by the Senate, comes two days after the Federal Government announced that the Budget would include an increase in the bonus tax deduction for small businesses to 50% and the scheme extended until the end of the 2009 calendar year.

Australian Trucking Association chairman Trevor Martyn said 43% of trucking companies had changed their new asset purchases as a result of the bonus deduction.

“Trucking operators who have obtained quotations on new equipment will now start placing firm orders,” Mr Martyn said.

"They will end up with safer, more productive and more efficient truck fleets.”

Mr Martyn also said the orders would help protect jobs in the equipment supply industry.

The Federal Government Budget was particulary “good news” for trucking companies with one or two trucks, Mr Martyn said.

“Many of these companies want to buy new equipment but are having problems getting finance on reasonable terms because of the collapse of the wholesale finance market.”

The bonus tax deduction:

• Small businesses: a 50% bonus tax deduction for small businesses with a turnover of $2m or less who invest in new equipment such as trucks and trailers from December 13, 2008 to December 31, 2009. Small businesses are required to invest at least $1000 per asset to be eligible for the deduction.

• All other businesses: a 30% bonus tax deduction for investments in new assets between December 13, 2008 and June 30, 2009 falling to 10% for investments between July 1, 2009 and December 31, 2009. An investment of at least $10,000 for each asset in needed to qualify.