Wed 13 May 2015
No More Motor Vehicle Stamp Duty on Mobile Plant from 1 July, 2015:
For a number of years, CCF Vic has been lobbying the Victorian Government to address the significant cost impost of Registration Duty on mobile construction plant.
Our primary positions have been:
- Why should contractors pay many thousands of dollars in Stamp Duty to register mobile plant when it is primarily used to construct Victoria’s infrastructure?
- Why is the construction industry being adversely penalised in having to pay this duty when the agricultural sector has had the benefit of significant concessions for many years?
- Government must learn to understand that any cost impost on a contractor eventually finds its way back to the tender price for infrastructure works.
Members would be aware that CCF lobbied the coalition Government for the 4 years of its reign to bring change to this cost impost, and harmonise the plant stamp duty situation with that of neighbouring States.
Our lobbying to Tim Pallas about the absurdity of being inconsistent with other States and territories on this matter has finally paid off.
Quoting from the official Budget Papers; “All vehicles classified as mobile plant (under 4.5 tonnes) and plant based special purpose vehicles (over 4.5 tonnes) will be exempt from motor vehicle stamp duty from 1st July 2015. These vehicles include body types such as backhoes, excavators, bulldozers, headers, scrapers, tractors and off road water sprayers”.
Whilst in real terms the cost saving to business is not huge at an estimated $2.7m annually, it does represent some level of saving on new equipment registration, which will be of benefit to Members.