Tax break scramble
Budget incentives are boosting commercial vehicle sales, writes NEIL McDONALD
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.