Assistant Minister for Transport, the Hon. Scott Buchholz MP joined the HVIA Board meeting this week to hear direct feedback on the impact of COVID-19 on HVIA members and the heavy vehicle industry.
HVIA President, John Drake outlined the need for the Instant Asset Write-Off (IAWO) stimulus measure to be extended past the 30 June 2020 deadline.
Mr Drake said the Board and Minister Buchholz strategised ways to increase the uptake of the Backing Business Investment allowance, which provides 50% bonus depreciation until 30 June 2021.
“The IAWO was an amazing stimulus announcement, but I know from my own personal experience and from the feedback to HVIA, that all manufacturers were in the same boat – the majority of our customers were not able to take full advantage of the tax incentive before the anxiety of the health pandemic really hit hard,” Mr Drake said.
“In addition, the required lead in times for new trucks and trailers meant that the 3 months from the stimulus announcement to its conclusion precluded most new builds and so HVIA has strongly advocated for the IAWO to be extended past 30 June 2020.
“Whilst the Government investigates this possibility, it is crucial that we continue to promote the Backing Business Investment measure, which for the next 13 months will enable a bonus 50% depreciation to be written off immediately.
“In some cases this could mean as high as 60-65% of the assets can be written off with no upper expenditure threshold.
“This is an incredible, unprecedented level of support which makes it attractive to purchase equipment and upgrade the fleet.
“Both of these measures are crucial to kickstart investment, create cashflow and secure jobs.
"As always, Minister Buchholz was grateful for our frank advice and offered his support as he undertook to provide our feedback to the Treasurer,” Mr Drake said.
