Truckworld

Hino Australia COO Steve Lotter said the Government's Business Tax Break investment allowance provides a 30 per cent tax deduction from the price of new trucks purchased before 30 June, 2009.

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

The Business Tax Break Part is part of the government's $42 billion economic stimulus package. It will provide an additional 30 per cent deduction - also referred to as an investment allowance - for the purchase of business assets costing in excess of $10,000, including trucks.

Hino Australia chief operating officer Steve Lotter said the additional tax deduction 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," Mr Lotter said.

Only trucks purchased from 13 December, 2008 to 30 June, 2009 qualify for the 30 per cent deduction, which drops to 10 percent 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," Mr Lotter said.

"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 take delivery of their truck - 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 eligible business-related assets.

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

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.

"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 tailoring packages to suit particular needs."