Favourable seasonal conditions and the extension of the instant asset write off haveseen a big boost to Victoria's annual end of financial year machinery sales.
While dealers traditionally look to June 30 to increase sales, they say the other factors have also contributed to a jump in purchases, in recent months.
Tractor and Machinery Association of Australia executive director Gary Northover said he expected a strong finish to the financial year, on the back of three consecutive months of increased tractor sales.
May saw a year-on-year increase in tractor sales of 30 per cent, resulting in sales being up by 12 pc since the start of the year.
"There is no question, June will be even stronger - there's plenty of evidence of that," Mr Northover said.
"We are expecting a big finish to the year.
"We are a bit surprised at how buoyant the market is, and we think it will continue, as there is still an appetite to upgrade."
Mr Northover, and dealers, said the extension of the instant asset write-off was one of the main reasons, behind the boost in sales.
The federal government's popular $150,000 instant asset investment write-off offer has been extended until December after many businesses highlighted the previous deadline was too short to make practical use of the incentive.
The instant investment depreciation write-off was initially announced in March for any business with an annual turnover of less than $500 million.
It was to have reverted back to $1000 for small businesses with revenue of $10m after June 30.
Mr Northover said the biggest challenge facing dealers was getting new stock.
"Overseas factories are starting to get back into production, but that takes a while."
He said it could take five to six months to get new machinery from factories in America, Europe and Japan.
"It doesn't happen overnight," Mr Northover said.
"They will satisfy local demand before Australia gets a look in.
"A lot of Australian dealers were overstocked, and some will still be working through that."
By the time that stock had cleared, new machinery would start coming onto the market.,
Phillips Farm Machinery, Hamilton, director Paul Lewis said it had been as good as he had seen it for years.
"I've bought a new truck, with the tax incentive, I got on board with that, it's a great thing," Mr Lewis said.
"When this (the coronavirus pandemic) is finished, you'll never see another $150,000 asset write-off, the only time we will see it again is if we have another outbreak.
"That's what's driving the market for us, it's a big thing, for us."
He said the company was "under the pump" to get machinery out, by the end of the month.
"We feel like it's in spring, our season has started so well."
The workshop had also been "inundated", and staff had only just started to get on top of servicing equipment, that had come in.
"On top of that is finance.
"When it comes to the rate in the dollar, if you can buy tractors at two per cent interest, that's got to be a big market changer, too."
CLAAS Harvest Centre, Echuca, dealer principal Brendan Caffery said sales had definitely picked up, in recent months.
"It's driven by a lot of confidence, conditions are good and a little bit of the end-of-financial year," Mr Caffery said.
"Topping that off is the $150,000 instant asset write-off, which drove a few decisions as well.
"It's a pretty easy decision; you get an instant benefit on-farm and a benefit on the books."
He estimated his sales were up about 20pc, year on year.
"There's a lot of confidence, and even guys looking beyond the end of winter, they are looking at what they are doing in spring."
He predicted a shortage of stock, in the back half of the year.
"A lot of dealers are going to struggle to get hold of specific stock.
"If the season continues like this, there will definitely be a shortage, I've been talking to other dealers, and everyone is in the same situation."
Agrimac dealer principal Hugh McEachern says all kinds of tractors were selling, in the lead up to the end of the financial year.
Agrimac has sites in Ballarat, Warrnambool, Hamilton and St Arnaud.
"We are still selling tillage equipment, for this season, and forward selling air seeders," Mr McEachern said.
"Second hand is quite busy too."
He said buoyancy in the agricultural sector, with "a reasonably good milk price," solid returns for cattle and lambs and favourable seasonal conditions', had also boosted sales.
"It's as good as it's been since 2008, since the last asset write-down, with the Global Financial Crisis.."
O'Connors' Group Sales Development Manager, Tom Sheridan, said there had been a strong take up of the instant asset write off extension.
"It really shows the strength in the industry; it's a good problem to have to make decisions based on reducing your tax.
But he said he believed there were other factors in play, in the Mallee and Wimmera.
"The rain has been more of a driver, than the tax incentive," Mr Sheridan said.
"It's a credit to the stayers in the Wimmera-Mallee and across our large footprint.
"They have their systems right, and they are really maximizing their profitability."
Mr Sheridan said O'Connors had ensured it had increased machinery, available to deliver, before June 30.
"This has meant acquiring more stock and working closely with suppliers to secure more build slots and extra orders," Mr Sheridan said.
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