Small business write-off tipped to drive car sales

The head of Queensland's biggest car dealership says the asset write-off for small business is exciting news for the car industry.

AP Eagers chief executive Martin Ward said while it was difficult to predict, he expected increased activity - particularly for used cars.

"The average used car we sell is the $18,000 to $20,000 range, so it's a real sweet spot for quality used cars," he said.

"We are expecting additional activity in that space, which is good for the whole car industry.

If anything is going to happen, it will happen in the next 45 days

"We think it's a good thing but as it's still got to be for businesses, it's just very hard to predict how many people in that sector will buy a car." He said the 1.5 per cent cut to the small-business tax rate was also likely to stimulate activity and if the measures were effective they would notice the impact soon.

"If anything is going to happen, it will happen in the next 45 days before the end of the tax year," he said.

"One thing that is a reality is there is nothing in this Budget that is going to hinder anyone buying a new or used vehicle," he said.

The perfect opportunity for small businesses to upgrade their vehicles

Carsales.com Limited chief operating officer Cameron McIntyre said the announcement was a shot in the arm for small Australian businesses.

"Building business confidence is clearly on the agenda of the Federal Government in this year's Budget, starting with small business," he said.'The company tax rate cut, combined with an immediate write-off of acquired assets up to $20,000 per item, has created the perfect opportunity for small businesses to upgrade their vehicles."