VACC, the peak Automotive Industry body in Victoria, says today’s new vehicle sales figures are good news for the Australian Automotive Industry.

According to VFACTS, the June 2009 industry volume is up 27,406 or 36.3 percent on last month (75,441 vehicles). In seasonally adjusted terms, the June monthly volume equates to a 11.8 percent increase compared to May.

102,847 passenger cars, SUVs and commercial vehicles were sold in June 2009 making it the third highest selling month on-record, following 106,541 in June 2008 and 105,097 in June 2007.

 “This is excellent news for the Automotive industry and the Australian economy as a whole,” VACC Executive Director, David Purchase, said.

“For sales to increase by more than a third on the previous month is outstanding.

“These figures can directly be attributed to the role of small business owners. They have recognised the significance of the Government’s Investment Allowance and purchased new vehicles. The Government’s stimulus package has had the desired effect and business owners have used it to their advantage.

“According to the Federal Chamber of Automotive Industries (FCAI) the business tax break has led to an additional 10,000 vehicles being sold over the past three months.  That is a huge boost to the economy ahead of the end of the financial year.

“However, business owners should not think that July 1st marked the end of the incentive scheme. The Investment Allowance continues, albeit in a reduced form, until the end of the year.

“In May’s Federal Budget, Treasurer Wayne Swan announced that Small Business, with a turnover of less than $2million, would be entitled to claim a 50 percent tax deduction for eligible assets costing more than $1000 acquired before 31 December 2009.

“Larger businesses can claim 10 percent on eligible assets until 31 December 2009.

“Therefore, the incentive scheme is still available and we urge business owners who have not accessed it so far, to do so.  It is an opportunity for small businesses to upgrade company vehicles with incentive provided by the Government. As borne out by today’s figures, its value is clear,” Mr Purchase said.