Australian Car Sales Up On Back Of Tax Cuts

by Mary Swire, Tax-News.com, Hong Kong

03 June 2009

Australia's Federal Chamber of Automotive Industries (FCAI) has revealed that car sales are improving in light of a set of recently implemented business tax breaks.

Official VFACTS data released by the FCAI shows that 75,439 passenger cars, SUVs and commercial vehicles were sold in May 2009 – down 14.9% (13,201 vehicles) compared to the same month in 2008.

“The May figures provide a tangible indication that new vehicle sales have stabilized and indeed there are even grounds to suggest we may see signs of improvement in coming months,” FCAI Chief Executive Andrew McKellar explained.

Sales to business buyers in May were only down 7.2% on a year ago.

“There is clear evidence that the Federal Government’s business tax break is providing the market with a renewed sense of optimism and confidence,” Mr McKellar continued, adding:

“The business tax break is proving extremely effective, providing a much needed boost to vehicle sales and stimulating economic activity.”

“Vehicle brands have been promoting this incentive heavily in recent few months and since the legislation has been passed there has been a perceptible increase in business sales,” he concluded.

Year-to-date, 352,374 new vehicles have been sold, down 19.2% compared to the same period last year.

According to the FCAI, Toyota continued in the top sales position in May with 15,481 vehicle sales, ahead of Holden with 9,177 and Ford with 8,440.

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