Finance Forecast - September 2009
Recovery is a word we're hearing from all quarters. Meeting
earlier this month, the decision of the Reserve Bank Board to leave
the cash rate unchanged at 3.0% (the lowest it's been since the
70's) has prompted talk of stability, with the accompanying media
statement describing Australia's economic conditions as better than
expected and noting that measures of confidence are showing
improvement.
The Government's decision to increase the small business tax
break for investment in new assets from 30 per cent to 50 per cent
has already had a noticeable effect on the plans of our small
business customers. With small business asset investments of
$1000 or more (a threshold that may be met by a group of
similar items or a set of items) eligible for an additional
tax break of 50 per cent, small businesses would be wise to
consider bringing forward asset investment to fall in line with the
31st of December 2009 investment deadline.
General business can still take advantage of an additional 10
per cent tax break that continues to be available for new assets
ordered before the end of the year and installed by the end of
2010. As has been noted previously, this applies to most new cars
and demonstrator vehicles, as well as other new, depreciating
business assets.
More details about the Temporary Investment
Allowance's additional tax breaks for small and general
business can be found in our Frequently Asked
Questions.
According to the most recent Roy Morgan Automotive Leading
Indicators (July 2009), the number of Australians intending to
buy a new car in the next four years (2,048,000) appears to be
stabilising and is on a par with the long term average (2,052,000).
Although this result is still down on the record numbers recorded
in July 2008, 12-month intentions have also edged ahead of the
long-term average.
These are positive changes for the automotive industry, but new
car buyers should take note of the increasing confidence and be
prepared for bargain basement prices to start winding up. With
prices on the move and a considerable rationalisation of models
predicted, it would be wise to consider the steps you can take
to protect against resale
value changes, as well as giving some thought to appropriate
vehicle insurance and loan protection.
Find out more about equipment finance and car finance
options to help you take advantage of the current tax
breaks for small and general business. Try our repayments
calculator, get a quick online car finance quote or
secure a car
finance pre-approval online - be prepared to buy
smart.
For more information on finance or insurance, or assistance
finding your preferred vehicle at the right price, call us on
1300 STRATTON (1300 787 288) or contact your
Stratton Finance Consultant directly.