The peak body representing the Australian automotive industry, the Federal Chamber of Automotive Industries (FCAI), says the Federal Government’s Budget decision to increase and extend the investment tax break for small business provides a valuable incentive for new vehicle sales.
Small businesses will be able to claim a bonus tax deduction of up to 50 per cent – up from 30 per cent – on the cost of new vehicles acquired between 13 December 2008 and 31 December 2009.
“The tax break will help stimulate the new vehicle market and support jobs in the industry,” FCAI Chief Executive Andrew McKellar said. “Every plumber, every painter, every electrician – in fact any small business owner – is urged to take full advantage of this offer.
“This measure offers an incentive of real value and will encourage small business owners to bring forward purchasing decisions. The tax break offers a huge saving on the cost of a new vehicle. It provides a real boost in confidence to small businesses looking to undertake new investment in coming months.”