Car yards benefit from tax break

LAST night's Federal Budget was expected to bring substantial pain and little gain to most Australians, though pre-budget leaks gave some encouragement for small businesses on the Fraser Coast looking to buy new cars and the dealerships that hope to supply them.

With the budget blow-out caused by natural disasters skittling the government's hopes to be back in the black, and the cost of living rising relentlessly, it has been confirmed by Treasurer Wayne Swan that low income households will get a modicum of support.

Mr Swan has, for example, approved a low income tax offset – usually paid as an annual lump sum – to be drip fed into household budgets across the year to ease the day-by-day pressures.

Families with teenagers will also find themselves a few dollars a year better off under this budget.

But it was in Fraser Coast car yards where the mood was most optimistic yesterday on the back of solid government leaks that small-and-medium-sized businesses which bought a new car would get the first $5000 as a tax write-off from 2012-13.

It is the sort of news that local businesses need and, if the tax break comes to pass, motor dealers believe it will boost the local economy.

Bay City Autos dealer principal Martin Singer said any sort of tax break on cars was good for the automotive sector.

“Anything that helps the battler is going to help us as well,” he said.

What's in the Budget for you? Take a look at our interactive



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