Rebate costs truckload of jobs
AFTER weeks of speculation a spokesman for Federal Treasurer, Wayne Swan, has confirmed what Macksville truck dealer Tony Smith had feared.
Rather than supporting local jobs, the Federal Government's temporary tax break will put many jobs in the second-hand truck market at risk.
According to a treasury spokesman, “assets eligible for the (30 per cent rebate) allowance are new tangible depreciating assets and new expenditure on existing assets used in carrying on a business for which a deduction is available”.
Mr Smith, from Midcoast Trucks, said the rebate clearly did not apply to reconditioned second-hand vehicles, which was where the bulk of local jobs were.
“This rebate will encourage an increase in purchases for new vehicles but the number of sales of second-hand trucks has already dropped in the last two weeks,” Mr Smith said.
“As a dealer, I require sub-contractors and employees to do reconditioning work. These jobs will now be affected - how does that stimulate the economy?”
The installation of new parts in a major piece of equipment like a truck might attract the temporary investment allowance for eligible individuals or businesses.