Extending the asset write-off scheme would be a boost to a road transport industry already shouldering more than its share of the COVID burden, the National Road Transport Association said today.
The Federal Government beefed-up the measure in its last Budget, allowing businesses with income or turnover up to $5 billion to immediately write-off the cost of assets they use or install by June 30, 2023.
“In view of the lingering impact of the pandemic and current supply chain problems that are making life tough all around the country right now, extending this measure by another year would be a prudent step,” said NatRoad CEO Warren Clark.
“The extended write-off makes depreciation quick and easy and allowing it to be used immediately protects a small business against economic turbulence.
“It’s good for our capital intensive industry and it’s good for small business generally, where unavoidable delays in delivery can have a severe impact.
“It has meant that buying a new truck for some members became a reality in difficult conditions.”
Mr Clark said Australia’s freight transport task had been growing at unprecedented levels up until COVID hit and the short-to medium term outlook was challenging.
“Current estimates are that industry revenue is expected to decline this year by 2.7% because of COVID and on average our members’ profit margins have dropped to around 2.5%,” Mr Clark said.
“COVID changed the industry’s focus in 2020 and 2021 to largely a domestic one, but we showed we really are an essential service to the nation.
“We have kept supply chains between major cities functioning – ensuring supermarket shelves are full and critical supplies like medicines are delivered.
“Our industry met and exceeded expectations so we’re asking the Federal Government to recognise that and continue a measure that will help smooth out the bumps in the economic road.”