Truckworld

Hino has welcomed the Federal Government's recently announced $2.7 billion tax break that will allow businesses to claim a 30 per cent tax deduction from the price of a new truck.

Part of the Government's $42 billion economic stimulus package, the Business Tax Break will provide a 30 per cent deduction - also referred to as an investment allowance - for the purchase of business assets costing in excess of $10,000, including motor vehicles.

Hino Australia chief operating officer Steve Lotter said the tax cut will significantly increase capital investment affordability and has urged customers considering purchasing new Hino trucks to do so before the temporary concession expires on 30 June, 2009.

"This is a golden opportunity to take advantage of the Federal Government's business assistance measures. There's never been a more tax-effective time to buy a new Hino truck, but customers must act before the window closes in July."

Only trucks purchased between 13 December, 2008 to 30 June, 2009 qualify for the 30 per cent deduction, which drops to 10 per cent from July to December 2009.

"We appreciate businesses' need for advance planning and that the timeframe to take full advantage of the tax break is relatively short, however customers are not required to take delivery of their vehicles by the deadline, only the contract must be entered into. Customers then have up to a year to ready their truck for use - buying them more 'breathing time', if required."

Mr Lotter said that customers who are not in the market for a new Hino truck can also take advantage of the investment allowance, which provides a tax deduction for new expenditure on existing business-related assets.

"Small businesses - those turning over less than $2 million per annum - also qualify for a 30 per cent tax cut on purchases over $1000 to upgrade existing assets.

"This includes fitting Genuine Hino Accessories, so if your truck needs a bull-bar, windshield protector or wheel covers you'd be wise to buy them before the July deadline."

Mr Lotter said Hino is aware that financial advice and credit are potential stumbling blocks for customers seeking to capitalise on the investment allowance and that Hino is well placed to assist.

"The investment allowance is still subject to final legislation and our finance partner, Hino Financial Services, is investigating complexities such as whether lease customers will be entitled to the deduction. In the meantime customers can call on qualified advice and competitive finance just by asking their Hino dealer.

"As part of the Toyota Group, Hino Financial Services is AA+ credit rated. Its access to low-cost funds ensures customers can obtain highly competitive finance and it is vastly experienced in tailor-making packages to suit particular needs."