The Truck Industry Council is calling on the Federal government to increase the instant asset write-off to $450,000 for heavy vehicle specific purchases, saying that this would stimulate sales in the Heavy and Medium truck sectors.
As reported elsewhere in T&B News, the $150,000 instant asset write off had a massive effect on the light duty sector in June, helping to make it the highest June sales in Australia on record. However with the cost of the upper end of the medium and into the heavy sector going beyond $150,000 it did not have the same impact on sales of trucks in these sectors.
TIC points out in its comment on the record sales figures for June, that the industry is bracing for a plunge in the coming months
“It must be remembered that July, August and September truck sales are historically low, as the new financial year begins,” The TIC statement said.
“Coupled with an Australian economy still reeling from the effects of COVID-19 and now with much of Victoria facing Stage 3 lockdown restrictions again, I have concerns that the better than expected June sales result will be a short-lived aberration,” said TIC CEO Tony McMullan.
McMullan went on to say that while he was was enthused by the June light duty truck and van sales, he also noted the declining truck market year-to-date.
“We are now gaining a real insight into just how COVID-19 has impacted heavy vehicle sales in 2020, with the Heavy Duty segment hit very hard,” he said.
“The record, or near record, sales in the Light duty segment appears to be a clear indication of the effectiveness of the federal government’s instant asset write-off incentive of $150,000, coupled with the financial year end.
“While the result has been of notable benefit for smaller trucks, it is clear that financial stimulus is required at the heavy end of the truck market,” said McMullen.