Staying across the news and keeping up with all government announcements in regard to business support has been a massive task throughout the COVID-19 pandemic. We know, our team has been attempting to stay up to date to bring the information to the attention of our customers.
While the support is greatly appreciated and in many cases desperately needed, being in a position to know what is available, how it may benefit you and what you need to about it, can involve time that you just don’t have. No problems as we have members of our team following the government press conferences, scouring media releases and analysing the announcements to see what is relevant to our finance lending sector.
At Jade Equipment Finance we’re not just committed to cheap finance deals. We are also intent on bringing information forward which may present benefits and opportunities which can work in with or are complementary to our customers’ equipment acquisitions.
That all said, the significance of one announcement which we noted in the news on Sunday 29 November when much of the country was sweltering through a record-breaking heatwave, may have slipped passed you. Our team have it covered and we bring you news of changes to the Federal Government’s HomeBuilder Grants Scheme and what that may mean to your business.
HomeBuilder Stimulus Measure
- The HomeBuilder Grants Scheme was originally announced in June as part of a much larger business support program by the Federal Government to stimulate the economy out of the COVID recession.
- This scheme was specifically targeted to the home building industry with the intention to create jobs and get tradies back to work.
- The scheme offers cash grants to eligible people of $25,000 towards building/buying a brand new home or making renovations to their existing dwelling.
- The timeframe was from time of announcement through to 31 December 2020.
- The states and territories signed onto the scheme as some of the aspects impacted their legislative areas of control.
- Issues arose with people trying to get both their building plans and their grant applications processed and approved and ready to go facing delays which posed a risk to them being able to participate.
- It is understood, that the building industry and other interested groups lobbied to have the expiration date extended.
Changes to the Scheme
On Sunday 29 November, Treasurer Josh Frydenberg announced changes to the scheme:-
- Deadline extended from 31 December to 31 March 2021.
- The amount of the grants reduced from $25,000 to $15,000
- The lower amount applies to contracts which are signed from 1 January 2021 to 31 March 2021.
- An increase in the time to start construction has been allowed.
- In conjunction with the changes, several states have increased their price caps on new home builds: Victoria has lifted its cap to $850,000 and NSW has lifted its to $950,000.
Potential Opportunities Presented
While the scheme targeted on getting tradies back onto their tools, the wider building and construction sector has the potential to benefit from the HomeBuilder Scheme. An increase in new home builds and renovations, presents potential increases in work and sales to materials producers and suppliers as well as to all trades involved in the hands-on building process.
Architects, planners, excavators, builders, brickies, concretors, sparkies, plumbers, tilers, painters, plasterers, landscaper to name just a few. Move out further in the sphere and producers of building materials including fixtures and fittings such as windows, kitchens, bathrooms and many others stand to benefit.
Equipment Investment Options
If you’re in the building and construction industry, this announcement could be the sign you’ve been waiting for to make that new equipment purchase. Excavation equipment, backhoes, scaffolding, manufacturing and production machinery, engineering machinery – whatever you need to take advantage of an increase in work.
The timing is ripe and right for equipment acquisition with interest rates at record lows and several other Government measures coming into play around asset investments. In particular, the Instant Asset Write-Off scheme which we’re sure you’ve heard plenty about already.
This allows eligible businesses to depreciate the full purchase price of the equipment in the year of purchase (limited to 30 June 2021) rather than having to depreciate the asset incrementally over several financial years.
To purchase equipment and receive the benefits of IAWO, Chattel Mortgage is the most suitable finance product. Jade Equipment Finance offers great deals on Chattel Mortgage for a large range of equipment across all industry sectors.
Chattel Mortgage is quite a straightforward form of business loan. The borrower purchases the equipment, takes ownership and has full use while the lender holds a mortgage over the equipment until the loan is paid out.
This form of finance has the option of a balloon so you can reduce the amount of repayments by varying the balloon, to ensure the repayments will work with your business objectives.
Jade is accredited with many lenders, not just banks, and we have special industry-only access to several non-bank lenders that specialise in key industries. This enables our consultants to source cheaper interest rate equipment loan deals for our customers.
If the changes to the HomeBuilder Scheme present some great work opportunities for your business, speak with Jade about how we can assist with cheap finance for the equipment you need.
Contact Jade Equipment Finance on 1300 000 003
DISCLAIMER: THE INFORMATION WHICH HAS BEEN PREPARED AND PRESENTED IN THIS ARTICLE IS INTENDED FOR GENERAL INFORMATIVE PURPOSES ONLY. IT IS NOT IN ANY WAY MEANT TO BE USED AS THE ONLY SOURCE OF INFORMATION OR ADVICE IN REGARD TO FINANCIAL DECISIONS. IF YOU CONSIDER YOU NEED GUIDANCE, WE RECOMMEND YOU SEEK OUT A PROFESSIONAL FINANCIAL ADVISOR. THE DATA, DETAILS, SPECS AND OTHER MATERIAL PRESENTED IS SOURCED FROM VARIOUS SOURCES AND NO LIABILITY IS ACCEPTED FOR ERRORS AND MISINTERPRETATIONS IN PRESENTING THIS INFORMATION.