An investment allowance for new and late model second hand trucks and trailers would boost trucking businesses, increase road safety and improve urban air quality, Australian Trucking Association CEO Ben Maguire said today.
Mr Maguire was releasing the ATA’s investment allowance proposal, which the industry submitted to the Federal Treasurer in February. The ATA developed the proposal following a meeting with the Treasurer, who asked for a detailed submission.
“To help trucking businesses upgrade their equipment and boost the economy, the ATA proposes that the Government put in place a 50 per cent investment allowance in year one of the purchase of a new truck or trailer,” Mr Maguire said.
“The paper also argues for a 25 per cent investment allowance for late model second hand truck and trailers.
“93 per cent of trucking businesses have a turnover of less than $2 million per year. Many of these businesses do not have the financial ability to purchase new equipment, but there would be considerable benefits if they could upgrade to newer, but still second hand, vehicles.
“Under our proposal, the second hand vehicle allowance would apply to trucks and trailers manufactured after 1 January 2015, which is the date that all trucks were required to have anti-lock brakes and trailers, anti-lock or variable proportioning brakes.
“Our modelling suggests that the proposal would support the purchase of about 19,500 new trucks and trailers. The proposal would increase the number of trucks and trailers in the fleet with advanced safety features and contribute to improving urban air quality,” he said.
The ATA and its member associations collectively represent the 50,000 businesses and 200,000 people in the Australian trucking industry. Together, the ATA and its members are committed to safety, professionalism and viability.