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Proposed Truck Rego Hike? Focus on keeping costs down

A disturbing media release from the Australian Trucking Association around proposed hikes in truck rego charges attracted our attention and no doubt that of the nearly 400,000 owners of heavy vehicles that are forecast to be impacted by this proposal. In the release, the ATA CEO, Andrew McKellar called on the governments to reject the, (in his words) outrageous proposition. A proposal which would increase charges by up to 220% for some owners.

So what is all this about? Where did this proposal eventuate and what can truck operators do to keep their business costs at workable levels amidst rising prices in some sectors? We’ve delved into the matter and provide this coverage that addresses these key issues.

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 information states that these older truck are imposing a burden financially on the community in terms of health and the environment. It goes on to say that the study analysed aged trucks above 4.5 tonnes in regard to crashes and contributing to the health costs of pollution related issues. It states that this research identifies measures that have shown an effect in other areas in influencing the operation of aged trucks.

The full report was published on 8 April 2021 and a webinar is being held by Austroads on 27 May to present the findings. The full report can be downloaded here. Options listed in the report cover a range of issues including access restrictions, retrofitting programmes, grants and scrappage incentives and the highly controversial financial incentives and disincentives. No doubt the massive registration increase is one of the financial disincentives.

The ATA release notes that, should the proposal be adopted, some operators of older trucks could face a $20,000 increase in rego charges each year per truck. An increase would represent a 220% increase on current charges which are around $6,225.

The ATA CEO highlights how the trucking industry faced the challenges of bush fires and COVID-19 to maintain supplies to Australian communities and yet these heroes now face these massive cost increases.

Industry Action

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 says that more action is required from the government in removing the barriers to purchasing new trucks. These he noted included the amendment of truck dimension/weight rulings and at least a temporary incentive to purchase zero emission trucks.

No doubt the entire trucking industry along with the team at Jade Truck Loans, will be closely watching how this issue unfolds after the Austroads report is fully presented and considered by decision-makers.

Containing Costs of New Vehicle Purchases

This article attracted our attention both as important trucking industry news but also as it places the spotlight on the significance of containing costs wherever possible for businesses in many sectors, but especially in freight transport. While costs in many areas continue to increase, issues around operating through the COVID-19 environment created a separate set of cost imposts through delays caused by border closures, additional compliance and 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.

Regardless of how costs in other areas of your business may increase, you can rely on Jade Truck Loans to keep your truck acquisition costs as low as possible through our cheap loans and assist operators to get into the new trucks they require.

Contact 1300 000 003 to discuss how we can assist lending for a new truck

DISCLAIMER: THIS INFORMATION IS ISSUED PURELY FOR THE PURPOSE OF GENERAL INFORMATION PROVISION. IT IS NOT TO BE TAKEN AS THE ONLY SOURCE OF INFORMATION FOR BASING FINANCIAL DECISION-MAKING. THOSE REQUIRING FINANCIAL GUIDANCE AND ADVICE SHOULD CONSULT WITH THEIR FINANCIAL CONSULTANT OR ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATION OF POLICIES, DATA OR ERRORS IN THIS CONTENT.

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