As we approach the end of 2020, many are breathing a sigh of relief, hoping that the worst of the pandemic is behind us. It's a good time to catch up on some of the latest updates in the trucking industry. Truck industry news includes information about grants for road and safety upgrades, a new requirement for director IDs, and important reminders regarding tax benefits for truck loans.
Additional Heavy Vehicle Safety Grants
In a media release dated November 26th, the Federal Government announced an additional $5.6 million to be allocated for safety improvements in the heavy vehicle industry. The announcement was made by Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Barnaby Joyce, along with Assistant Minister for Road Safety and Freight Transport Scott Buccholz. This funding is part of Round 7 of the Heavy Vehicle Safety Initiative (HVSI), bringing the total allocation through HVSI to $33.6 million.
These grants are intended to support community groups in implementing initiatives and road safety programs that contribute to the continued safe operation of trucks and the growth of the economy. Mr. Joyce emphasized the government's commitment to working with the industry to ensure the transport sector remains safe and productive.
The funding is designed to back initiatives that enhance safety awareness, compliance, and education within the heavy vehicle industry. Assistant Minister Buccholz highlighted the positive impact of funded projects from previous rounds, addressing safety concerns in areas like agriculture, rural freight, livestock, and driver well-being. He specifically mentioned the Parallel Access Landing Frame in Kilcoy, QLD, which assists livestock haulers during loading and unloading.
The successful reception of projects funded under Round 6 has encouraged expectations for a similar response in Round 7. Applicants are encouraged to align their project proposals with the theme of Safer Drivers, Safer Vehicles, Safer Road Use. Submissions for funding in this round will close on February 14, 2022.
New Director ID Requirements
When applying for a truck loan, it's important to note that a new requirement has been implemented concerning identification for company directors. This new requirement is the Director Identification Number, commonly referred to as director ID. The introduction of this initiative aims to combat the misuse of fraudulent or false identification by company directors.
The director ID is a unique identifier assigned to an individual, and once obtained, it remains associated with that person permanently. Directors of companies, registered Australian bodies, registered foreign companies, and Aboriginal and Torres Strait Islander corporations are required to obtain a director ID.
The timing of when you need to obtain your director ID depends on your appointment as a director. For directors who are already in position, the deadline for obtaining the director ID is November 30, 2022. If you were appointed as a director between November 1, 2021, and April 4, 2022, you must apply for the director ID within 28 days of your appointment.
For individuals who intend to become directors after April 5, 2022, it is mandatory to apply for the director ID before the appointment. The Australian Business Registry Services (ABRS) oversees the implementation of this initiative, while ASIC (Australian Securities and Investments Commission) is responsible for enforcement.
Applications for director ID can be made online. Applicants will require a range of information including an individual tax file number, myGov login and other details. Refer to the ABRS website for more information and to commence your application.
As a form of ID, it could be expected that a director ID will form part of a truck loan application moving forward.
Truck Loan Reminders
The trucking industry has faced a multitude of challenges recently, such as the impact of the COVID-19 pandemic, disruptions in global supply chains, and the repercussions of the November flooding in eastern Australia. These concerns have understandably demanded the attention of truck owners and operators in various sectors. However, amid these challenges, it's important not to overlook the available tax benefits for acquiring new trucks, especially as we approach the midpoint of the financial year.
Interest rates have played a significant role in the financing landscape. Over the past year, the Reserve Bank of Australia (RBA) has maintained interest rates at their current levels. As we approach the final RBA Board meeting of the year on December 7th, it is widely anticipated that this trend will continue. The historically low interest rate environment has rendered lending rates very appealing for investments in new vehicles. However, it's uncertain how long this favorable situation will persist. Opinions vary regarding the timing and rationale for potential changes in the RBA's interest rate policy. While the RBA Board has indicated a consistent timeframe of 2024 for potential rate adjustments, many analysts suggest that rate changes could occur sooner.
Getting in now for cheaper truck loan rates could be a smart move. With a fixed interest rate truck loan as we secure at Jade Truck Loans, your loan is secured at that low rate regardless of decisions made by the RBA or lenders during the term of your loan.
Indeed, the concept of Immediate Asset Write-Off (IAWO), now referred to as Temporary Full Expensing (TFE), created quite a buzz when it was initially introduced. However, amidst the challenges posed by the successive waves of the COVID-19 pandemic and associated lockdowns, the priorities of many business owners understandably shifted.
TFE remains available as an option until June 2023. Nevertheless, for those aiming to claim the tax deduction for the purchase of a truck in their 2021/2022 tax return, it's essential to take note of the deadline. The acquisition of the truck must be completed, and the vehicle operational within the business, by June 2022. This deadline is now just six months away, underscoring the importance of acting promptly to leverage this opportunity.
Chattel Mortgage for truck & trailer financing is the most appropriate form of truck loan for temporary full expensing and also attracts the cheapest interest rate of the range of truck finance products. Use our finance calculator to work up repayment estimates and compare loan payments on different makes and models. Or just cut straight to the chase and call us to source a quote and get the process moving.
Contact Jade Truck Loans on 1300 000 003 to discuss truck loan news and updates and secure a finance quote for your new vehicle.
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