| Media item | |
| | BUSINESSES LOADING UP | Northern Territory News,
Darwin
by David Mccowen And Dom Triplone
| 24 Jun 2023 | | General News - Page 26 - 516 words - ID 1877553481 - Photo: Yes - Type: News Item - Size: 671.00cm2 | |
End of tax breaks for work vehicles drives demand
Dealers are bracing for a rush on utes this weekend as tax incentives for company vehicles end on June 30.
The instant asset writeoff program put thousands of dollars back into the pockets of business owners, encouraging them to invest in new equipment worth up to $150,000 and claim part of the cost back with an accelerated depreciation scheme.
The Covid-era incentive ends next Friday, making this weekend the last opportunity for customers to snap up a deal on a new ute.
Manufacturers say demand has been strong throughout June, with dealers reporting people are walking in off the street asking to have the keys to a new ute before the cut-off.
Car companies reported increased interest in utes after changes to the scheme were introduced in the federal budget.
Mazda notched record sales for its BT-50 ute in May, when the Toyota HiLux and Ford Ranger utes were Australia's bestselling cars.
Phil Diab, dealer principal for Rockdale Mazda in Sydney, said demand "has been very strong".
"We've had people walk in and say I need to have it done by the end of the financial year," Mr Diab said.
After-sales specialist Jona Aleishe said the dealership had BT-50 utes ready for delivery before the cut-off.
Australian Automotive Dealer Association chief executive James Voortman said businesses had until Friday to put vehicles to work to take advantage of the incentives.
"It's incredibly important the asset is in use before the end of the financial year, so the best thing to do is inquire at multiple dealers to find cars in stock to make sure you don't miss out," Mr Voortman said.
The car industry has struggled to maintain a steady supply of new cars.
Many models have waiting lists of 12 months.
The AADA and other groups have asked Treasury to extend the June 30 deadline for businesses that have ordered new cars that were not delivered in time.
Component shortages, shipping delays and customs holdups have prevented many motorists receiving cars before the end of the year.
"We're really hopeful of a late result for businesses that have ordered vehicles but not taken delivery," Mr Voortman said.
Treasury has been contacted for comment.
Victorian Automobile Chamber of Commerce chief executive and interim Motor Trades Association of Australia chief executive Geoff Gwilym said the end of temporary full expensing would bruise the car industry.
"Tradies and dealers alike will really feel this one," Mr Gwilym said.
"These adjustments essentially make it impossible for businesses to instantly claim the cost of a new commercial vehicle as a tax deduction.
"Why slam the brakes on initiatives that encourage people to get out there, drive their business forward and put money back into our community?
"During these challenging times, I would have thought economic growth was the No.1 priority." "Tradies and dealers alike will really feel this one Geoff Gwilym Vic Automobile Chamber
Caption Text:
Jona Aleishe stands beside a Mazda BT-50, one of the models buyers are flocking for to make the most of the tax breaks. Picture: Richard Dobson
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