Australian trucking industry calls for truck, trailer investment allowance

2 MinutesBy NZ Trucking magazineMarch 11, 2020

An investment allowance for new and late model secondhand trucks and trailers would boost trucking businesses, increase road safety and improve urban air quality, says Australian Trucking Association CEO Ben Maguire. 

Maguire released the ATA‘s investment allowance proposal, which the industry submitted to the Federal Treasurer in February. The ATA developed the proposal following a meeting with the treasurer, who asked for a detailed submission. 

“To help trucking businesses upgrade their equipment and boost the economy, the ATA proposes that the Government put in place a 50 percent investment allowance in year one of the purchase of a new truck or trailer,” Maguire said. 

“The paper also argues for a 25 percent investment allowance for late model secondhand truck and trailers.”

Maguire says 93 percent 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 secondhand, vehicles. 

“Under our proposal, the secondhand vehicle allowance would apply to trucks and trailers manufactured after 1 January 2015, which is the date that all trucks were required to have anti-lock brakes and trailers, anti-lock or variable proportioning brakes. 

“Our modelling suggests that the proposal would support the purchase of about 19,500 new trucks and trailers. The proposal would increase the number of trucks and trailers in the fleet with advanced safety features and contribute to improving urban air quality,” he says.