The extension of temporary full expensing to 30 June 2023 will continue to drive trucking business investment and help more businesses purchase safer trucks and trailers, Australian Trucking Association CEO Andrew McKellar said today.
The Government announced the extension in last night’s budget. Under full expensing, eligible businesses with an aggregated turnover of up to $5 billion can deduct the full cost of eligible assets, including trucks and trailers. Assets will need to be used for the first time or installed ready for use by 30 June 2023.
“This is a real win for the ATA and our members. Since the Government introduced full expensing last year, new truck sales have soared. Trucking businesses have rightly seen the measure as a once in a lifetime opportunity to renew their fleets,” Mr McKellar said.
“New trucks are markedly safer than older ones, because they are required to have safety features such as front underrun protection, anti-lock brakes and, in many cases, electronic brakes.
“Many new trucks also have advanced emergency braking and other safety technologies.
“When the ATA briefed the Government on the success of the measure in March, we urged them to extend its availability. The Government has listened to the industry and more than delivered,” he said.
Mr McKellar said the extension would not only help businesses seeking to buy new equipment.
“Businesses with an aggregated turnover of less than $50 million can fully expense second hand assets, so this is a great opportunity to buy a late model second hand truck to replace older equipment,” he said.
Other key measures for the trucking industry in the budget include—
- $15 billion in additional infrastructure commitments
- $1 billion in 2022-23 to identify and deliver road safety projects such as road widening and audiotactile line marking and
- $16.5 million over four years to establish the National Freight Data Hub
- $5.1 million over four years for the Office of Road Safety
- $12.1 million over three years for the National Heavy Vehicle Regulator to fund engineering assessments of local government road infrastructure. These assessments will support the increased use of high productivity trucks on local roads, which increases productivity and safety.