WA will still lose out to Queensland in the heavy vehicle stakes, even though the WA Government has cut stamp duty on truck registrations from 5 per cent to 3 per cent.
The Government has put the flat rate of 3 per cent duty on the registrations of trucks, cranes and forklifts and also capped the amount of duty payable on a new heavy vehicle registration at $12,000.
Two major transport industry groups and even the Transport Workers Union have been calling for the cut for the past three years.
However, any good will the Government hoped to garner with the stamp duty cut has been eroded by its increase of stamp duty on standard motor vehicle registrations and third party insurance premiums.
A vehicle worth more than $40,000 now draws a 6.5 per cent stamp duty. A standard Holden Commodore will be $400 more expensive on stamp duty.
Even with the cut WA is still less competitive, given the Queensland Government charges 2.5 per cent on trucks and trailer registrations are stamp duty exempt.
Transport Industry Forum chief executive office Howard Croxson said he was happy with the stamp duty cut.
However, he was concerned with the Government’s plan to increase stamp duty on third party insurance premiums to 8 per cent.
“If you have a fleet of 10 vehicles and you’re paying $2,000 per vehicle it becomes a fair lump of money,” Mr Croxson said.
Motor Trades Association executive director Peter Fitzpatrick said truck trailers would still be built or registered in Queensland.
“This budget didn’t do much for the motor industry,” Mr Fitzpatrick said.
“Why do we have to build this disincentive for buying cars? The only people that will be better off from this will be the repairers because there are going to be more old smokies on the roads.”
