Crikey

Australian car sales jumped in May from April in the first monthly rebound since the start of 2008.

The tax concessions for small and medium business of 30% and 50% investment allowances have helped boost sales.

A similar situation is expected this month with the 30% allowance for medium business due to expire on June 30; the 50% allowance for small business continues until the end of the year.

Figures today from the Australian Bureau of Statistics show that total sales for May of a seasonally adjusted 75,472 were up 5.4% from April and the highest monthly total this year so far.

The ABS said that sales of other vehicles increased by 11.3%, sports utility vehicles by 6.4% and passenger vehicles by 2.9%.

All states except the Australian Capital Territory recorded seasonally adjusted sales in May 2009 above those in April 2009. Victoria had the highest increase of 9.6% while South Australia, Tasmania and the Northern Territory increased by 7.5%, 5.5% and 4.5% respectively followed by New South Wales 4.0%, Queensland 3.5% and Western Australia 3.1%. According to the ABS, “The Australian Capital Territory was the only state to show a decline in seasonally adjusted sales with a decrease of 2.3% in May 2009 when compared with April 2009.

May’s sales were the highest since last November. Sales crunched after then, bottoming out in April at just over 72,400. Sales peaked at 90,949 vehicles in January of last year.