The Australian Trucking Association (ATA) has strongly congratulated the Australian Government on its COVID 19 economic package, which includes measures to boost industry investment and safeguard the Australian economy.
“The government is demonstrating great courage and reaching deep to keep Australians in work and Australian businesses going,” ATA Chair Geoff Crouch said today.
“This is a targeted, positive and proactive measure that will make a real difference to Australian communities,” he said.
“The new 50 per cent investment allowance is a win for the ATA and every trucking business. The allowance will encourage trucking businesses to invest in new trucks and trailers and reflects the key arguments we put forward in our recent brief to the Treasurer,” Mr Crouch said.
“The allowance will significantly boost the sale of new trucks and trailers. Many of them will be made in Australia, by Australians.
“The purchase of these new trucks and trailers will not only deliver an economic boost at a time of extreme financial stress; they will improve road safety because new trucks and trailers have better safety equipment.
“On behalf of the trucking industry, I would like to thank the Treasurer and the Government for considering the detailed, evidence-based arguments we put forward.”
Under the new allowance, businesses with a turnover below $500 million will be able to deduct 50 per cent of the cost of an eligible asset immediately, with existing depreciation rules applying to the balance of the asset’s cost.
The package also expands the instant asset write-off, with the threshold to be increased from $30,000 to $150,000, and access expanded to businesses from a turnover of less than $50 million to less than $500 million.
The package will boost business cashflow, helping approximately 690,000 businesses employing 7.8 million people, with payments of between $2,000 and $25,000 to help pay wages or hire extra staff. Up to 70,000 businesses will also be supported to retain their apprentices and trainees.
“The COVID-19 pandemic has hit the trucking industry hard. Container operators are reporting drops in volume of 70 to 80 per cent. Interstate freight, which was already low, has plummeted in the last few weeks,” Mr Crouch said.
“The Government has acted decisively as we face the coming months and challenges together.
The ATA and its member associations collectively represent the 50,000 businesses and 200,000 people in the Australian trucking industry. Together, the ATA and its members are committed to safety, professionalism and viability.