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 Clearing sales suffer from machinery tax break 

Clearing sales suffer from machinery tax break

01 Oct, 2009 01:34 PM
THERE are signs the Federal Government's 50 per cent tax deduction on new machinery is starting to have an effect on the State's clearing sales.

A number of big ticket items on offer at a sale in the Central West town of Trewilga last month failed to sell, and prices on other machinery were reduced.

According to Landmark Narromine branch sales and operations manager, John Bennett, the tax break was a key reason behind the slow sales because new machinery was much more affordable.

"We had a tractor that was predicted to go for about $50,000 but it didn't sell," he said.

"A new one costs $100,000, and with the 50pc tax deduction, that makes it $50,000."

Click here to view a slideshow of photos from recent clearing sales.

Meanwhile, at a sale south of Temora, a unique motor home, converted from an old bus, stole the show.

The 1973 Denning coach with Leyland chassis had been turned into a motor home containing one double bedroom, two single bedrooms, a dining table, shower, toilet, air conditioning and a bike rack, and was one of the items on offer at the "Kurrajong Park" sale.

After much intrigue from the 600 people in attendance, the motor home sold for $18,500.

Have you had a clearing sale? Or do you have one coming up? Let The Land's Richard Fox know, on (02) 4570 4444 or email richard.fox@ruralpress.com.

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Date: Newest first | Oldest first
Re Clearing Sale. Are you sure about the 50% tax break John Bennett? Perhaps 15% off new price is the outcome at 30% tax rate! You may need to look for some other reason for no sale on the tractors. 50% tax deduction does not equal 50% price reduction.
Posted by jmeic, 7/10/2009 5:29:33 AM, on The Land
50% of the machinery purchase price does not come off your tax bill! If your taxable income is between $34,001 and $80,000 then the tax rate for that income bracket is 30%. For example, if your income was $80,000 and you brought a new $100,000 tractor, this would reduce your taxable income by $50,000 to $30,000. You will no longer be paying 30% tax on that $50,000. Tax saved is $15,000 ($50,000 x 30%).
Posted by jj, 12/10/2009 9:39:09 PM, on The Land

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Clearing sales are finding it hard to shift second hand equipment, due to the Federal Government's new machinery tax break.
Clearing sales are finding it hard to shift second hand equipment, due to the Federal Government's new machinery tax break.

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