1 July, the start of the new financial year would usually mean a raft new policies come into play courtesy of the Federal Budget. But 2020, the year of the pandemic, is far from ‘the usual’. The Federal Budget has been deferred from May to October so there’s nothing to see here!
But there are things happening in other sectors that truck drivers and truck owner-operators should be aware of. We’re taking a look at some of the good, the bad and the best news in trucking.
The Bad - Increased Charges
First the bad news. 1 July each year signals scheduled increases in toll charges for roads and motorways across the country. State Governments tend to have arrangements with the toll road operators to increase tolls each year based on the CPI or another standard formula. Despite the devastating effects on the economy caused by COVID-19 and some calls early in the year for governments to step in and pause these, most are proceeding.
First to the sunshine state and not much to warm you up. If you’re driving in and around Brisbane, its surrounds and SE Queensland you’ll be paying more for the privilege from 1 July. According to sources we found, tolls are increasing in line with the BCPI – Brisbane Consumer Price Index on a number of roads. These include, but may not be limited to: Go Between Bridge, Clem7, Toowoomba Bypass, Legacy Way and the Gateway Motorway-Logan Motorway.
If it’s any consolation, these Queensland increases are applied annually, unlike some other states which have a quarterly increase.
Down south and in Victoria the tolls on CityLink are set to increase. The increases are on a quarterly basis up to 30 June 2029 at a rate of 1.04597% per quarter. So 1 July, 1 October, 1 January and 1 April the toll will increase. For heavy vehicles there is a small concession in that night tolls are cheaper than daytime tolls.
On the West Gate Tunnel the tolls will also increase quarterly at a rate of 4.25%
In NSW where the Transport Minister and Premier have been busy donning high-vis for photo opps during construction of several new motorways in recent years, there is good news and bad news.
First the bad news. 1 July is the time for the scheduled quarterly increases on a whole heap of NSW motorways in and around Sydney. They include: The Hills M2, Lane Cove Tunnel, Cross City Tunnel, Eastern Distributor, Westlink M7, M5 West and NorthConnex. Fortunately some of the other toll roads only increase annually so you have till 1 January.
But we did promise some good news, so read on.
The Good News – Fee Freeze
The National Heavy Vehicle Regulator (NHVR) is supporting the heavy vehicle industry as a result of COVID-19. The NHVR has put a freeze on fee increases for its services until January 2021.
New NSW Motorway Opening
In more good news, yes it’s getting better – on 5 July, the NSW Government opened another stage of the massive WestConnex project. The M8 Motorway tunnel opened to traffic. The 9 kilometre tunnel links Kingsgrove with St Peters, cutting out a heap of traffic lights and saving drivers a heap of time. For operators already on tight delivery schedules, any time saving should be welcomed but of course – there is a toll! Check out the map to see how the M8 will save you time around Sydney.
The Best News
We’ve kept the best for last so we go out on a high!
Government Back Business Incentive
As part of the Federal Government’s economic response to the COVID-19 crisis, it has introduced an investment incentive, time-limited, which your business may be eligible to take advantage of with a new truck purchase. The BBI involves a short-term, 15-month incentive of accelerated depreciation deductions. Read more here.
It applies to businesses with an aggregated turnover below $500m. An accelerated depreciation deduction of 50% may be claimed on assets that are acquired after March 2020 and installed by 30 June 2021. Refer to full details to ensure your trucks are included as eligible assets. And of course, discuss with your accountant whether or not your business can benefit from this measure.
If your truck and your business meet the criteria, the BBI might be the catalyst you need to proceed with that new truck acquisition. Reach out to Jade Truck Loans to discuss our range of Truck Loan Products and secure a fantastic finance deal.
IAWO Extended
The good news keeps on coming…as we reported in a number of articles, the Instant Asset Write-Off deadline has been extended to 31 December 2020. This measure is also a part of the Federal Government’s economic response to coronavirus. Please refer to our other articles for details.
Time is ticking on this one, so you’ll need to start organising your truck purchase and your Jade truck finance to meet the 31 December deadline.
Low Interest Rates on Truck Finance
But wait, there’s more! We’ve kept the best till last. FY21 gets underway in a historic low interest rate truck finance environment. Low interest rates means Jade Truck Loans can provide even cheaper truck loan deals than ever before. Cheap loans with Truck Leasing, Rent to Own truck loan, Chattel Mortgage for truck & trailer financing, ABN Loans and CHP.
Before you even select your truck, speak with a Jade consultant about a pre-approved loan.
So that’s the news for now, hopefully in come blogs we can deliver more good and even better updates. Safe driving!
To discuss a cheap truck loan, contact Jade Truck Loans 1300 000 003
DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES.
