Tax break scram­ble

Bud­get in­cen­tives are boost­ing com­mer­cial ve­hi­cle sales, writes NEIL McDON­ALD

Herald Sun - Motoring - - Front Page -

UTES and vans are ex­pected to fly out of show­rooms this month as tradies and other small-busi­ness op­er­a­tors scram­ble to take ad­van­tage of the tax break on work ve­hi­cles.

The break is pro­vid­ing a lift for dealers who sell pop­u­lar com­mer­cial ve­hi­cles from Holden, Ford, Toy­ota, Nis­san and Mit­subishi, and vans from some Euro­pean brands.

Fern­tree Gully Nis­san has re­ported strong in­ter­est as peo­ple be­come aware of the break.

Gen­eral man­ager Michael Ban­janin says floor traf­fic has in­creased and web-based in­quiries are flow­ing through at a higher rate.

Apart from the Navara ute, busi­nesses are also in­quir­ing about the Pa­trol four-wheel drive.

‘‘We’ve even had peo­ple ask about the Mu­rano,’’ he says.

‘‘We ex­pect in­quiries to be pretty con­sis­tent for the rest of the year.’’

The Vic­to­rian Au­to­mo­bile Cham­ber of Com­merce is urg­ing the the Trea­surer and Min­is­ter for Small Busi­ness, Craig Emer­son, to ex­tend the ‘‘all other busi­nesses’’ tax break for those with turnovers of more than $2 mil­lion.

‘‘We would like to see the as­set in­stal­la­tion dead­line ex­tended to De­cem­ber 31, 2010, for th­ese busi­nesses, too,’’ Pur­chase says.

Un­der the scheme, small busi­nesses are en­ti­tled to claim a 50 per cent tax de­duc­tion for el­i­gi­ble as­sets, in­clud­ing work ve­hi­cles, cost­ing more than $1000 bought from De­cem­ber 13 last year to De­cem­ber 31 this year, and in­stalled, or de­liv­ered, by De­cem­ber 31 next year.

This is an in­crease from the 30 per cent an­nounced ear­lier this year and ex­tends the pe­riod of el­i­gi­bil­ity by six months.

All other busi­nesses can get the 30 per cent tax break un­til the end of the month, when it drops to 10 per cent for the six months to De­cem­ber 31.

The VACC, the Fed­eral Cham­ber of Au­to­mo­tive In­dus­tries and the car in­dus­try have wel­comed the move, which is part of the Fed­eral Gov­ern­ment’s stim­u­lus pack­age an­nounced in the Bud­get.

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