Caravan Industry Response to Federal Budget

Caravan World — 20 May 2015

Measures to help small businesses including tax concessions and substantial tax relief for new capital expenditure up to $20,000 incurred from Budget night onwards show the Government is aiming to lift investment by small businesses, knowing this generates more economic activity and new jobs.

“As the peak national body representing hundreds of small businesses in the caravanning and camping industry – from manufacturers and dealers through to park owners – we are encouraged by new measures such as a 1.5 per cent tax cut for small businesses bringing the tax burden on small businesses down to the lowest level in 50 years,” said Stuart Lamont, CEO of Caravan Industry Association of Australia.

“This relief will help to encourage investment, especially in regional areas where it is often difficult for mum and dad operators to afford improvements.”

Research by BDO indicates that for every $100 of revenue received by a caravan park operator, $138 is directly retained by the local economy after flow-on (compared for example to fuel and corporate supermarkets for which little margin is retained locally), and so any relief which encourages businesses to invest in their business and make them more attractive for consumers will be directly returned to local communities stimulating the economy particularly in regional areas even further.

Lamont continued, “90 per cent of caravan and camping nights take place in regional Australia, so to see new funding for key road infrastructure in Northern Australia as well as a commitment to complete the duplication of the Pacific Highway is a great sign for getting our consumers to enjoy Australia through a caravanning or camping experience.”

The industry also applauds the decisions to provide additional funding for Tourism Australia and maintaining the freeze on the PMC. While these measures are designed at increasing international tourism, which is currently only a small section of caravanning and camping travellers in Australia, those that do come to Australia to caravan spend up big relative to other international tourists.

“We look forward to working closely with the Government and Tourism Australia on exploiting opportunities in the sector through boosting the number of international guests undertaking a caravanning and camping experience while in Australia, while encouraging supply side quality to match their consumer demands.”


federal budget small businesses local economy caravan parks


Jack Murphy