VACC Calls For Private Vehicle Tax Breaks

The Victorian Automobile Chamber of Commerce has put out a call to the Australian Federal Government to offer tax breaks to private buyers in an effort to stimulate new car sales.

Business vehicle owners are currently able to claim a 30 percent investment allowance on their tax return, an incentive which will be reduced to 10 percent after June 30 2009 until the end of the year.

VACC is looking to the Federal Government to offer a similar incentive for private vehicle owners.

“VACC believes such a tax break for privately owned new cars is the most comprehensive way of stimulating the Australian automotive industry,” VACC Executive Director, David Purchase said.

Purchase said that an investment allowance for privately owned vehicles would create a level playing field for all vehicle owners, encouraging more people to buy new cars.

VACC believes that private vehicle owners should be entitled to the same benefits of using their car, especially as many private car journeys are for business or work-related purposes.

“In fact, most private car use is ‘business’ related and contributes to the national economy in some shape or form. Commuting to work, going to the shops and even dropping the children off at school are all necessary activities in order to keep the wheels of industry and the community turning,” Mr Purchase said.

A tax incentive, said Purchase, would save consumers money, while greater demand would lead to safer, more environmentally friendly vehicles on the market.

“New car sales are a vital way of ensuring Australia continues to survive the global economic slowdown. With a turnover of $173 billion across all sectors, the Australian automotive industry is vital to this country’s health.

“There are some very good deals available for new car buyers right now. But a Federal Government tax break could prove to be an even greater incentive and prove to be a timely boost to the industry and economy,” Mr Purchase said.