Industry heaps praise on Govt stimulus package

The $17.6 billion coronavirus stimulus package announced by the Morrison Government today (March 12) has come in for heavy praise from Australian Trucking Association (ATA) and Heavy Vehicle Industry Australia (HVIA).

In a press statement released shortly after the announcement, HVIA Chief Executive Todd Hacking said the tax incentives for equipment purchases will incentivise spending by the industry’s customers, enable investment by manufacturing businesses and protect jobs.

“The current disruptions place the world economy on something of a precipice,” Mr Hacking said.

“The Australian Government’s stimulus package is a realistic and well-timed response, giving our economy the shot in the arm it needs and that will protect business and jobs.

“It is essential that every one of us plays our part in the keeping the economy pumping and that’s why these tax incentives are about purchasing equipment now.

“The extension of the incentives to include all businesses with a turnover up to $500 million means the cycle of spending incentives will work up and down the supply chain.

“The Government has also shown its understanding of industry by putting into place a series of measures to protect apprentices and other new starters,” Mr Hacking added.

Meanwhile, in a statement of its own, the ATA also come out with bouquets for the Government.

“The government is demonstrating great courage and reaching deep to keep Australians in work and Australian businesses going,” ATA Chair Geoff Crouch said.

“This is a targeted, positive and proactive measure that will make a real difference to Australian communities,” he said.

“The new 50 per cent investment allowance is a win for the ATA and every trucking business. The allowance will encourage trucking businesses to invest in new trucks and trailers and reflects the key arguments we put forward in our recent brief to the Treasurer,” Mr Crouch said.

“The allowance will significantly boost the sale of new trucks and trailers. Many of them will be made in Australia, by Australians.

The package also expands the instant asset write-off, with the threshold to be increased from $30,000 to $150,000, and access expanded to businesses from a turnover of less than $50 million to less than $500 million.

The package will boost business cashflow, helping approximately 690,000 businesses employing 7.8 million people, with payments of between $2,000 and $25,000 to help pay wages or hire extra staff. Up to 70,000 businesses will also be supported to retain their apprentices and trainees.

“The COVID-19 pandemic has hit the trucking industry hard. Container operators are reporting drops in volume of 70 to 80 per cent. Interstate freight, which was already low, has plummeted in the last few weeks,” Mr Crouch said.

“The Government has acted decisively as we face the coming months and challenges together,” Mr Crouch concluded.