ROADS: Trucking says thank you

More than $28bn will be invested in both major and minor road projects around the country over the next six years, treasurer Wayne Swan said on May 12.
Most of the funding for the various road projects will come from the Building Australia Fund, formed last year to aid major infrastructure projects, and the $26.7bn Nation Building Program.
According to Australian Trucking Association chairman Trevor Martyn, the budget funds would benefit truck drivers, trucking operators and Australian consumers.
“Our journeys will be safer and faster, with lower transport costs for businesses,” he said.
“Better roads lead to lower costs at the supermarket checkout, because the trucking industry delivers every item in every Australian’s supermarket trolley.”
Last week’s Budget featured four major new projects on Network 1 (N1), which is the north-south road  freight corridor from Melbourne to Cairns.
The additional investments in the N1 would make a big difference to road users, Mr Martyn said.
“For example, until now, the Hunter Expressway was too expensive to construct, despite everyone agreeing on its importance.”
About $1.5bn will be invested in the construction of the Hunter Expressway in New South Wales, effectively linking the F3 and the New England Highway near Branxton.
This project is due to be completed by 2013.
The Kempsey bypass on the Pacific Highway development will receive $618m from the government in this year’s budget, taking total investment in the Pacific Highway to $3.1bn.
This project is expected to be finished by 2014.
The government will also fund $884m for work on the Ipswich Motorway in Queensland.
The money for all three projects will be drawn from the Building Australia Fund.
The government will also draw $488m from the Nation Building Fund to duplicate the Bruce Highway in Queensland between Cooroy and Curra.
The government also announced a bonus tax deduction on new capital assets, a decision Mr Martyn described as a “lifeline” for the trucking sector and its suppliers.
The budget was particularly “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 extension will give them more time to jump through the hurdles now imposed by lenders, as well as providing an additional tax incentive to upgrade their trucks.”
Small businesses will now be able to claim a bonus tax deduction of 50% (up from 30% previously) of the cost of eligible assets purchased between December 13 and December 31.
Last Thursday, the Senate passed the bonus tax deduction on new equipment.
About 43% of trucking companies had changed their new asset purchases as a result of the bonus tax deduction, Mr Martyn said, citing an ATA survey of 139 trucking companies.
“Trucking operators who have obtained quotations on new equipment will now start placing firm orders.”
“They will end up with safer, more productive and more efficient truck fleets.”