A concerning media release from the Australian Trucking Association has drawn significant attention to the proposed increases in truck registration charges, affecting around 400,000 heavy vehicle owners, as outlined in the release. The CEO of ATA, Andrew McKellar, has strongly urged governments to reject what he deems an "outrageous proposition" that could lead to charge hikes of up to 220% for certain owners.
But what prompted this proposal, and how can truck operators navigate their business costs in the face of rising expenses in various sectors? In our coverage, we delve into the origins of this issue and provide insights into these crucial matters.
Rego Increase Proposal
The proposal to increase rego charges, especially for older trucks, is contained in a report prepared by Austroads. According to information on the report author’s website, it focussed on investigating policy options that would reduce harmful effects caused by older and particularly the oldest model trucks, on roads in Australia and New Zealand.
The provided information highlights that older trucks are being seen as imposing a financial burden on the community, particularly concerning health and environmental aspects. The study examined trucks over 4.5 tonnes that are aged, focusing on their involvement in accidents and contribution to health expenses linked to pollution-related issues. The research indicates that certain measures that have worked in other contexts are showing potential to influence the operation of older trucks.
The comprehensive report was released on April 8, 2021, and Austroads is organizing a webinar on May 27 to present the findings. The full report is available for download on their publications platform. The report presents various options to address this issue, encompassing factors like access restrictions, retrofitting programs, grants, scrappage incentives, and even controversial financial incentives and disincentives. The proposed substantial increase in registration fees appears to fall under the category of financial disincentives.
The release from ATA emphasizes that if this proposal becomes reality, operators of older trucks might face a staggering $20,000 surge in registration charges per truck annually. Such an increase would represent a 220% escalation compared to the current fees, which are approximately $6,225.
The CEO of ATA underscores how the trucking industry has persevered through challenges such as bushfires and the COVID-19 pandemic to ensure the supply to Australian communities. Yet, these industry heroes are now confronted with the prospect of enduring these exorbitant cost hikes.
Against the backdrop of encouraging and assisting operators to invest in newer and particularly safer vehicles, Mr McKellar stated that the ATA had previously argued for a range of measures to assist businesses to purchase new trucks. Efforts which he noted resulted in the introduction of accelerated asset depreciation measures including temporary full expensing and the much-promoted Instant Asset Write-off.
Mr. McKellar highlights the need for the government to take further steps in eliminating obstacles to acquiring new trucks. He specifically points out that these barriers encompass modifications to regulations related to truck dimensions and weight, as well as the implementation of temporary incentives to encourage the purchase of zero-emission trucks.
Undoubtedly, the entire trucking industry, including the team at Jade Truck Loans, will be closely monitoring the progression of this issue following the thorough presentation and evaluation of the Austroads report by policymakers.
Containing Costs of New Vehicle Purchases
This article grabbed our attention not only due to its significance in the trucking industry but also because it underscores the importance of cost containment for businesses across various sectors, with a particular emphasis on freight transport. While costs are rising in numerous aspects, the challenges stemming from the COVID-19 environment have introduced a distinct set of cost factors, including delays caused by border closures, additional compliance measures, and various other restrictions.
With or without any government incentives or programs, Jade Truck Loans has been assisting truck businesses to acquire new vehicles with cheap finance for decades. It is our focus at all times and our cheap truck loans are available for all types of trucks to all types of business operators.
We also highlight the current low interest rate climate which is further enhancing our own cheap loan offerings. Interest rates across our portfolio continue to remain low and based on recent announcements from the RBA, interest rates should stay low for some time.
Jade Truck Loans supports truck buyers not only with cheap truck loan interest rates but with a comprehensive lender service to save their valuable time in sourcing truck finance and in accessing industry-only finance channels.
Our accreditations are vast and include non-bank lenders that specialise in heavy vehicle finance, can be more flexible in negotiating loan conditions and terms and offer hard to get low docs, no doc truck loans and bad credit truck loans.
No matter how costs may rise in other aspects of your business, you can always count on Jade Truck Loans to help you keep your truck acquisition costs as affordable as possible. We offer competitive loans that are designed to assist operators in acquiring the new trucks they need while keeping their expenses under control.
Contact 1300 000 003 to discuss how we can assist lending for a new truck.
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