The industry body representing new car Dealers has welcomed the extension of the expanded instant asset write-off until the end of the year.
“This is very welcome news for car Dealers and we hope that this will help our industry recover from the significant downturn we have experienced in new car sales,” AADA CEO James Voortman said.
“I would like to congratulate the Government on this announcement which will encourage businesses to invest during a time in which our economy will need it,” he said.
“I would urge eligible businesses looking to invest in a vehicle to do so before the end of the financial year as there are some very good deals to be had,” Mr Voortman said.
“While this is very welcome news, we will continue to call on the Government to remove the car limit of $57,581 which applies to the instant asset write-off. There is no justification for a car limit. There are no limits on other goods and we’ll be asking the Government to review this,” he said.
The AADA has been calling for the extension of the instant asset write-off along with a number of other measures to help the industry through this difficult time.
New car sales have been falling for 26 months in a row and sales figures in April and May saw some of the biggest declines on record due to the effects of the COVID-19 pandemic.
New car Dealers are located in cities and country towns across Australia, where they employ around 60,000 people and are responsible for more than $55 billion in sales.