The Federal Budget was unveiled on March 29th, introducing several pivotal measures that have garnered approval from prominent truck industry organizations. The Heavy Vehicle Industry Australia, a key representative body, has expressed their endorsement of the significant measures highlighted in the announcement made by Treasurer Josh Frydenberg. Additionally, the provision for mobile health clinics has been met with appreciation from Heart of Australia.
The Federal Budget extends support to truck owners and operators through a range of initiatives, encompassing skill development, training opportunities, investment incentives, tax advantages, and healthcare provisions.
HVIA Comments
The HVIA has especially noted the focus of the Government on skills and training, and on jobs in the 2022 Federal Budget.
In an official media statement, Mr. Todd Hacking, the CEO of HVIA, expressed his views on the 2022 Federal Budget, highlighting its role in motivating businesses to enhance the skill set of their current workforce and actively engage in apprenticeship programs. He emphasized that the Budget incorporates a range of elements that hold potential for HVIA members to leverage.
Mr. Hacking further noted the imperative for the heavy vehicle industry to attract new, proficient workers. He indicated that the measures outlined in the Budget are specifically tailored to bolster the influx of apprentices, thereby fortifying the industry's future workforce.
Furthermore, the press release highlighted initiatives aimed at equipping the existing workforce with the requisite skills for the industry's evolving landscape. Mr. Hacking cited the example of training and expertise required to service electric and hydrogen fuel vehicles, given the growing emphasis on such technologies in fleet management.
The HVIA also expressed their positive reception of the increased allocation for skilled migration positions, viewing it as a significant step to address vacancies within the current workforce.
HVIA Notes Broad Measures for Sector
In their statement, the HVIA expressed their appreciation for the inclusive investment prospects tailored for small businesses that were featured in the budget. They also acknowledged measures aimed at accommodating the changing needs of the workforce, particularly concerning the implementation of more flexible maternity leave policies.
The response to the reduction in fuel excise was predictably positive. Mr. Hacking noted that while it might be temporary, the impact it could have on operators and the entire supply chain could be quite substantial.
The allocation for road infrastructure investment within the Federal Budget 2022 was deemed a priority by the HVIA. This is primarily attributed to its potential to enhance safety and drive productivity. The significance of this investment is particularly underscored in regional areas, in tandem with the bridge renewal program.
Funding Boost for Health Clinics
The mobile health clinics which operate from customised road trains, Heart of Australia, have received a funding boost in the Budget. The commitment of $17.2m was welcomed by the organisation’s founder and cardiologist, Dr Rolf Gomes, who said the funding would allow Heart of Australia to continue to deliver services to regional Queensland.
Heart of Australia operates a fleet of five mobile clinics, benefiting from the support of industry leaders such as PACCAR Australia and other major supporters. These mobile clinics play a crucial role in delivering an array of health services to regions that would face considerable challenges in accessing care without these mobile facilities.
This remarkable initiative involves the provision of specialized healthcare services through tailor-made clinics on wheels. These mobile clinics are powered by vehicles including a DAF XF 530, an Isuzu FSD 260, and a Kenworth K200 prime mover.
Lenders Welcome IAWO Extension
As a specialist lender to the truck industry, Jade Truck Loans welcomes the extension of Instant Asset Write-Off through another financial year. This provides truck operators with further opportunities to upgrade vehicles while realising the tax benefit in the year of acquisition.
Chattel Mortgage is the most suitable financial avenue for operators contemplating leveraging this measure, whether within the current financial year or in the subsequent financial year 22/23. Some Possible Benefits Of Chattel Mortgage Finance in this context are notable. Additionally, some lenders also term it as Heavy Vehicle Loan or Equipment Loan, a nomenclature that aligns with its simple and secured loan structure.
The ownership of the vehicle immediately is transferred to the borrower, the asset onto their balance sheet and as such, the asset can be depreciated or written-off.
Chattel Mortgage also attracts the cheapest truck loan interest rate across the truck loan range. To work up repayment estimates for budgeting purposes, refer to our Truck Loan Calculator.
We also welcome the infrastructure investments in the Federal Budget as they can present significant opportunities for our customers to grow their businesses through increased project work.
Contact Jade Truck Loans on 1300 000 003 to discuss your truck loan requirements.
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