This week’s Federal Budget announcement provided a continuation of the business incentives to June 2023. Equipment suppliers and businesses looking to purchase capital equipment continue to be the biggest winners.
Businesses have compelling reasons to reconsider capital expenditure purchases:
- The extension of the Instant asset write-off means that any depreciable asset purchased for business purposes prior to 30 June 2023 can be 100% tax deductible in the financial year it was installed. There is no ceiling on the equipment value and it applies to all businesses with turnover of less than $5B per annum.*
- The Temporary Loss Carry Back continues to June 2023 and enables businesses to potentially redeem tax that they have previously paid. This combined with the Instant asset write-off, may potentially enable profitable businesses to claw back some or all of the taxes paid from FY19 onwards. i.e. if a tax loss was made in FY21 it could be used to claim back income tax paid in the two prior years.*
- Finance is as cheap as ever, although now starting to creep up. Record low interest rates combined with a strong AUD against the USD means that equipment is significantly more affordable.
- The concern for the coming years is the expected skilled labour shortage which is expected to get worse over the next 1-2 years. Australian population growth is expected to stagnate over that period and automation will continue to be important in filling the void.
* Please call us or speak to your accountant to confirm eligibility.
Despite what is reported in the media, the major banks have made it incredibly hard for many customers to borrow money over the last year. Financial results for the June 21 financial year are expected to reflect a second year of COVID-19 Impact which will make borrowing harder for some businesses.
Customers are more than ever looking for trusted finance experts who understand their needs and who provide them with access to the finance solutions they need for their business to grow and prosper.
Halidon Hill Finance has the complete range of finance solutions to meet every business’s needs including: Equipment Finance, Working Capital Finance, Automotive Finance, Property Finance and Insurance Premium Funding. More information available here.