With the trucking and transport industry one of, if not THE, hardest working sectors of the economy, especially after the increase in deliveries and demands in 2020, any improvements which will ease the workday are sure to be welcomed. So hopefully $300m in new road safety upgrades across Queensland will be appreciated by operators that work in the region. In mid-January, Deputy Prime Minister Michael McCormack announced a joint arrangement with the Queensland Government for funding of key road improvements. The improvements include rumble strips to alert driver, shoulder sealer, median treatments as a preventative measures for head-ons and the erection of barriers.
A major portion of the funding is earmarked for roads in regional Queensland including around Rockhampton where widening and intersection work on the Bruce Highway will be undertaken. Mr McCormack said the works would increase safety, reduce travel times while increasing capacity.
The projects announced are in addition to and build on many that are already underway to upgrade the Bruce Highway south of Cairns and south of Townsville and the Gympie Bypass.
Northern Territory Projects
The Northern Territory (NT) is also reaping the advantages of road safety enhancements. These projects encompass the improvement of regional roads, which involve activities such as widening, incorporating tactile markings and barriers, and establishing new rest stops for trucks along with accompanying facilities.
Certain projects have been designated for prompt initiation, with the aim of concluding them by 30 June 2021. Furthermore, there is allocated funding for additional projects extending into 2022.
Western Australia Projects
In WA the Roads Safety Projects are also rolling out, covering around 4,000 klms of regional roads across the state. The projects cover areas from the Kimberley right through to the Great Southern and involve sealing unsealed shoulders, upgrades and installation of additional safety measures. Assistant Minister Scott Buchholz said truck operators operating in many sectors including wool and iron ore and travelling on regional routes worked hard on these regional routes to keep the economy going.
The projects provide potentially lifesaving treatments to these roads which should be much appreciated across the industry.
Vehicle Upgrading
The primary objective behind these road projects and substantial government expenditure is to enhance safety standards while concurrently generating employment opportunities. Undoubtedly, operators will find value in the diminished wear and tear on their vehicles that can result from improved road conditions. If you're contemplating an upgrade for either your individual truck or your entire fleet, 2021 might be the opportune year to take action.
Various economic indicators, coupled with positive signals from the lending sector, indicate that the current time is favourable for companies to invest in new assets. The prevailing low interest rates within the lending sphere stand as a prominent motivating factor and hold considerable significance. When combined with the government's temporary full expensing measures, the investment landscape appears even more promising.
The temporary full expensing applies to the 2020/21 ad 2021/22 financial years for eligible businesses (with a turnover of up to $5 billion) to write off the relevant amount of eligible depreciating assets in the financial year rather than depreciate incrementally over several years. This measure is essentially an upgrade and expansion of the Instant Asset Write-off scheme which was introduced as an initial response to the economic effects of COVID-19.
Finance Options for Upgrading
If you are considering taking advantage of full expensing, you would need to ensure your business and the truck purchase are eligible under the criteria for the scheme. If all that checks out, then you would need to acquire the truck under a Chattel Mortgage truck finance product.
Jade Truck Loans provides a comprehensive array of commercial finance options, encompassing truck leasing, Commercial Hire Purchase (CHP), Rent to own truck finance, and Chattel Mortgage. However, not all of these options align with the accelerated depreciation measures. Under a Chattel Mortgage, the asset (in this case, the truck) is recorded on the borrower's balance sheet, and tax advantages are realized through gradual asset depreciation in accordance with the guidelines set forth by the Australian Taxation Office (ATO).
The remaining finance facilities also offer distinct tax benefits through different avenues. The suitability of each option should be carefully weighed against your specific business structure, financial objectives, and other operational factors. We strongly recommend engaging in a conversation with your accountant before making a decision of this nature.
When you are ready to proceed, speak with Jade Truck Loans for a cheap loan for your new truck.
- No deposit finance available so you can borrow the full purchase price.
- Fixed, low interest rate truck loans.
- ABN only, Low Docs and No Docs Truck Loans available.
Our consultants individually source and negotiate every truck loan so you are assured that we have your best interests as our sole focus.
If road upgrades are a sign to upgrade your truck, speak with Jade Truck Loans about finance on 1300 000 003.
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