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.
The ATA submitted the investment allowance proposal to the Government in February 2020.
To help trucking businesses upgrade their equipment and boost the economy, the paper argues that the Government should put in place a 50 per cent investment allowance in year one of the purchase of a new truck or trailer.
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 the proposal, the second hand vehicle allowance would apply to trucks and trailers manufactured after 1 January 2015: the date that all trucks were required to have anti-lock brakes and trailers, anti-lock or variable proportioning brakes.