Stamp duty on new trailers to be waived

Duncan Gay: “I’ve had an absolute gutful of seeing the vast majority of truck trailers being hauled on NSW roads displaying Queensland or Victorian number plates."

NSW Roads Minister Duncan Gay and Treasurer Mike Baird have announced a Government initiative to abolish the requirement for NSW-based truck operators to pay stamp duty on the purchase of new trailers.

“In the upcoming spring session of parliament, the government will be seeking support from all political parties to amend the Duties Act 1997 to allow stamp duty to be waived on the purchase of new truck trailers in NSW,” Minister Gay said. “I’ve had an absolute gutful of seeing the vast majority of truck trailers being hauled on NSW roads displaying Queensland or Victorian number plates. In many cases, it means transport operators are buying and/or registering new trailers in other states with NSW forfeiting vital business and associated revenue.

“Transport operators – many of whom run interstate operations – aren’t stupid; they establish businesses and depots in other states to gain access to competitive pricing. Frankly, I don’t blame them; trucking companies run on tight margins at the best of times.”

Treasurer Baird said the reform will help send a strong pricing signal to the road freight industry that the O’Farrell Government is determined to reduce the cost of freight businesses in NSW.

“Along with rail, road transport plays a crucial role in moving more than $40 billion worth of freight around NSW each year. Whether its building materials, household appliances, groceries, furniture or fuel, chances are some of it spent time travelling by truck.

“Unlike the previous state Labor government, we’re not prepared to stand idly by while freight businesses, jobs and associated registration revenue migrate to other states.

“The abolition of stamp duty on the purchase of new truck trailers will be an important step in the process of levelling the competitive playing field and will help to get NSW back into the game.”

The proposed stamp duty reform is part of a broader suite of government measures to help ease the financial pressure on road freight operators in NSW brought about by increases in national registration charges on July 1.

The NSW Government will assist road freight operators by introducing three key concessions:
1. Full stamp duty exemption on the purchase of new trailers (requires an amendment to the Duties Act 1997 );
2. Full rebate of the national charges applied to tri-axle dollies and a 50 percent rebate of charges applied to all types of tandem-axle dollies; and
3. 50 percent rebate of the national charges applied to spare trailers owned by operators with one or two hauling units (prime movers and rigid trucks), and no more than five trailers (excluding dollies).

“Smaller, low kilometre operators will enjoy lower registration charges for their heavy vehicles and operators who purchase new trailers in NSW will pay no stamp duty,” Minister Gay added. “This will ultimately lead to safer and more efficient truck and trailer combinations, helping to reduce the cost of running a freight business in NSW.”

At the end of three years, the concessions will be reviewed to make sure they effectively target those operators who might be disadvantaged under the new national charging arrangements.

The NSW government is planning to implement the rebate concessions no later than September 1 this year. Freight operators who pay converter dolly and trailer registration charges between July 1and the implementation date will be eligible for the discounts. The stamp duty exemption for new trailers will apply only after legislation has successfully passed NSW parliament.

Under the NSW government assistance package:
• A truck and dog operator with one rigid truck and two dog trailers will save $825 each year.
• A B-double operator with one prime mover, one A-trailer and two semi-trailers will save $1650 each year.
• A roadtrain operator with one prime mover, one tandem axle dolly and two semi- trailers will save $1375 each year.
• An operator purchasing a $75,000 trailer will save $2850.

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