Despite the ending of the Australian Government’s bonus tax deduction for tangible depreciating assets, fears of an investment freefall have not eventuated and the market has seen a steady stream of asset finance transactions for small, mid and big ticket assets. Big ticket financing continues to be dominated by aviation and mining, with Qantas continuing its fleet renewal programme, V Australia taking delivery of its Boeing 777s and Caterpillar mining equipment being exported to Ghana and Mali.
At the forefront of the market, we have been involved in the majority of the market's aircraft, rail and mining equipment financings. Across these transactions, we have led the trend towards the involvement of Export Credit Agencies and the use of lessors and financiers from outside of Australia (i.e. GECAS, Dubai Aerospace, Avolon, Aircastle and BOC Aviation). As Australia’s asset finance industry prepares for the introduction of the Personal Property Securities Act 2009 (which is scheduled to commence in October 2011), we have been working with large local and global banks to assist with their PPS implementation projects.