The Australian Government should extend the increased instant asset write off from its current end date, 30 June 2020, to the end of the year, the Australian Trucking Association (ATA) and Heavy Vehicle Industry Australia (HVIA) said today.
As part of its response to the COVID-19 pandemic, the Government increased the instant asset write off from $30,000 to $150,000, with access expanded to include all businesses with a turnover of less than $500 million. The increased write off is only available till 30 June 2020.
ATA CEO Ben Maguire said the increased write off had enabled trucking businesses to support the industry’s suppliers and invest in new equipment such as trailers.
“The purchase of new equipment under the write off has delivered an economic boost – and will improve road safety into the future,” he said.
“With 30 June fast approaching, though, many trucking businesses have not been able to use the write off. They needed to focus on staying in business, or simply could not have equipment built to their specifications in time.”
HVIA CEO Todd Hacking urged the Government to extend the increased write off to 31 December, and to consider a joint plan put forward by the ATA and HVIA to increase the value of the write off further.
“The 30 June deadline for the write off is a real problem for our members. After the increased write off was announced in March, there was not enough time for many businesses to act before the pandemic escalated,” he said.
“We need this extension to keep business investment going and to keep Australians in jobs.”
The CEO and Managing Director of heavy trailer manufacturer MaxiTRANS [ASX: MXI], Dean Jenkins, said the instant asset write off had been a godsend to transport industry suppliers.
“In conjunction with the 50 per cent investment allowance, it’s enabled us to keep our operations going to support our customers, keep food on the shelves and also to enable us to keep people employed, which is really a fundamental thing,” Mr Jenkins said.
“We support the case for this extension and urge the Government to listen to industry,” he said.
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