The past 12 months have been like nothing that most have ever experienced across all sectors of both the Australian and the global economy. COVID-19 has wreaked havoc in many areas but has presented unexpected business opportunities for others. But one aspect which may be universal could be the delay, postponement or doubt around investing in new equipment. Whether it be in the construction, manufacturing, medical, mining, transport, medical or any other industry, many business owners may have back-burnered the decisions to purchase new equipment due to uncertainty around the economy. Now could be the time to rekindle those equipment investment ideas as we quickly approach the end of the 2020 to 2021 financial year. A time when businesses traditionally rush to capitalise on tax deductions.
The EOFY rush to buy equipment can be, in simple terms, an absolute pain. It may mean diverting your attention from a busy operational period, having to devote time and attention to selecting and sourcing both machinery and finance and with the rush comes possible delays in delivery. We’ve just seen a container ship holding up trade through the Suez Canal which will cause delays in delivery for the many ships waiting to pass through that important global trade route.
Adding to the need for action, is the raft of tax measures that can be realised by eligible businesses for eligible equipment purchases if acquired in this financial year. If you were interested in say IAWO or temporary full expensing when the Treasurer announced these schemes in 2020, but deferred your purchase due to uncertainty, now is the time to move. That is, if you want to realise the tax deductions this financial year.
At Jade Equipment Finance we’ve been staying across the economic developments and provide a snapshot of why now is a good time to invest in equipment and how we can assist you in streamlining your acquisition.
Reasons to be Positive
If you had doubts about the economy, recent economic indicators should allay those concerns. GDP has grown in two consecutive quarters which is the indicator that the Australian economy is no longer in a recession. The employment figures are continuing to outperform expectations and despite the end of JobKeeper and COVID-19 cluster outbreaks to deal with, there are positive signs of growth and opportunity for many sectors.
Both Federal and State Governments are investing big time in infrastructure projects to boost the economy and create jobs. Infrastructure investment has been a go-to lever by governments to drive economic growth. It creates work for both those companies and operators directly involved in the construction and development processes as well as through the supply chain to component manufacturers and materials suppliers and allied businesses. Click to read more.
For the manufacturing sector, the Federal Government launched a massive scheme in late 2020 to boost many industries. Grants, incentives and other measures are available for many businesses and it may be worth checking out what is on the table for your business to take advantage of.
Tax benefits are a key reason for businesses to invest in new equipment. Multiple incentives were announced in 2020 and many are still available. Temporary full expensing and IAWO are both accelerated asset depreciation schemes that allow businesses to realise a tax benefit in the financial year that the asset/equipment is purchased rather than having to realise a small percentage over many years.
Check out your eligibility at www.ato.gov.au and if eligible, now could be time to move. The clock’s ticking towards 30 June 2020 so if you want that tax deduction this financial year, you may need to move promptly to secure your purchase.
Expediting Equipment Acquisitions
At Jade Equipment Finance we fully appreciated that many business owners and key managers have full schedules with simply running their business on a daily, weekly basis. Finding time to arrange equipment finance can be a challenge. So we have built our business model around removing the time and cost burden often associated with the equipment finance process.
When contacting us, you are assigned one of our specialist equipment finance consultants to handle all stages of your finance. We have the necessary accreditations with specialist equipment lenders and direct communication channels to quickly and easily source you the cheapest equipment finance interest rates.
On acceptance of our quote, we streamline the application approval process and can ensure prompt settlement by liaising with the lender and your equipment dealer.
To ease the cost burden, we provide cheaper interest rate loans across our portfolio and provide the option to possibly include additional costs associated with the equipment purchase in the one loan package. Those costs may include ongoing service agreements, delivery, installation and commissioning expenses. To find out repayment figures regarding you finance options, feel free to utilise our online equipment finance calculator.
Cheap finance is offered for the full range of finance facilities including:-
We see more reasons to act than to delay that equipment purchase and our team is standing by to assist you with your acquisition process.
Contact 1300 000 003 to expedite your equipment purchase before 30 June 2021
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.