The Tractor and Machinery Association says tractor sales were steady in June as the government’s temporary full expensing program came to an end.
June ended the federal government’s highly successful temporary full expensing program, which had been introduced during the COVID-19 pandemic.
This program has helped the industry not just continue to operate during this difficult period, but to prosper.
The TMA has been concerned that the termination of this program will cause problems for the industry and has lobbied the government for relief for customers that ordered equipment but were unable to take delivery before June 30 due to the prevalent supply chain issues, however they were unsuccessful.
It remains to be seen now what the full repercussions of the end of this program are for the industry, particularly given the ever-increasing predictions of an El Niño weather pattern which is likely to dominate Australia for the next nine to 12 months.
Looking at tractor sales for the month, there were around 2,500 tractors delivered in June which represents around 60 fewer deliveries than during the same month last year.
This now means that the year-to-date figure is 16 per cent behind the same period last year.
Sales around the nation were generally down across the board.
Victoria was off five per cent on the same month last year and is now 24 per cent behind for the year to date.
Queensland recorded a slight increase of 1.9 per cent on the same month last year and is now 11 per cent behind for the year to date, while New South Wales sales were in line and now sit 17 per cent off the 2022 year-to-date figure.
Sales in Western Australia reported a drop of 17 per cent and remains 13 per cent behind last year.
South Australia was an improver – recording a 9 per cent rise for the month – and now sits 6 per cent behind on the year to date.
Tasmania was off 4 per cent for the month and is 24 per cent behind for the year to date, while sales in the Northern Territory finished 36 per cent down and remain 10 per cent down for the year to date.
Looking at the machine categories, the small, under-40hp (30kw) category – which is the category most likely to be affected by interest rates – was down by 8 per cent for the month and is now 16 per cent behind year to date.
The 40 to 100hp (30-75kw) range enjoyed a small rise of 2 per cent and is now 17 per cent behind year to date, while the 100 to 200hp (75-150 kw) category was down by 3 per cent and remains 20 per cent behind on the year to date.
Finally, the 200hp plus (150kw plus) range slipped slightly, down 2 per cent to remain 5 per cent behind last year.
Sales of combine harvesters continue to gather pace with more than 200 units delivered in the month.
This puts us well ahead of the same time last year, up by a significant 78 per cent, and expectations are for an outstanding year ahead.
Baler sales dipped this month, down 11 per cent, but remain 10 per cent ahead on a year-to-date basis.
Sales of out-front mowers enjoyed another strong month, up 24 per cent on the same time last year.
All is in readiness now for the annual TMA conference being held in Sydney on Wednesday July 19 at the Stamford Plaza, Sydney Airport.
Ticket sales have been strong, as has sponsor support, and there is an exciting line-up of speakers which should all make for another great event.