New vehicle sales plummet to 8 year low
Tuesday August 25, 2009
New vehicle sales have declined to their lowest monthly quote in 8 years according to the latest round of statistics.
The Australian Bureau of Statistics reported on Sales of New Motor Vehicles showed that the number declined by 6.9 per cent, seasonally adjusted, from 80,559 units in June to 75,006 units in July. This drop has been attributed to the current economic climate, a withdrawing from a tax rebate for big business and the after effects of the Federal Government stimulus package payments.
Other vehicles sales levels also declined by 25.7 per cent in the month from 19,890 in June 2009 to 14,785 in July, with other vehicles referring to vans, trucks and buses.
However, the findings are not meant to be all doom and gloom for all those industries dependent on the motor vehicle industry including the sales and mechanics industries as economists say that the number of motor vehicle sales should record modest growth for 2009 due to the overall improving national economic outlook.
CommSec economist Savanth Sebastian stated that "The result in July was the worst result in eight and a half years, but the result in June was the best result in over four years, so I think you've seen a bit of a trade off,''
''The expiry of the government's tax rebate for big business at the end of June really has played havoc with the data.''
This tax rebate refers to the governments opportunity for businesses to claim a 30 per cent tax deduction on any new assets valued at over $10,000 that were purchased before 30th June 2009, with conditions attached that the new assets must be in use by June 30 2010. This rebate is not restricted to businesses associated with the motor vehicle industry such as mechanics but businesses in general.
There are still a number of tax rebates available for small businesses with new assets valued at $1,000 and ready for use by December 31, 2010 being able to be claimed for up to 50 per cent on the cost.
