Infrastructure projects and construction in general are at the heart of COVID-19 recovery plans. State and Federal Governments as well as local councils are on a continual rolling announcement cycle of new projects, tenders and funds allocation. Businesses need to stay across many channels to ensure they don’t miss a potential opportunity. We’re doing a quick whip around project and product announcements - in case you missed it!
Field Days and Shows
Many will be keen to get their hands on the latest equipment to increase productivity, profitability and competitiveness in tendering for the work on offer. But with many expos, field days and major industry events cancelled for 2020, the opportunities to see new equipment in person have been limited. So it’s great news to read plans coming together for 2021.
In particular the announcement that the Civil Construction Field Days will be held in conjunction with the Brisbane Truck Show 13-15 May 2021. This is a result of a collaboration between the Civil Contractors Federation of Queensland and the Heavy Vehicle Industry Australia and highlights the close links between the equipment and truck sectors.
Tip: before heading to an equipment field day, contact Jade Equipment Finance to arrange pre-approved finance for the equipment you’re interest in. You’ll be in a better position to seal a deal on the day and take advantage of any show specials. And have our equipment repayments calculator handy on your phone to calculate rough repayment estimates on machinery as you do the rounds of the field day.
Quick Whip around – Project Announcements
Current major projects in Queensland include upgrades to the M1 and Bruce Highway, Brisbane Metro and Cross River Rail.
In South Australia, the Government recently announced that $100m would be allocated to road maintenance and upgrade works. Projects earmarked include at Fullarton Road, Port Road, Greenhill Road, Anzac Highway and Marion Road.
In NSW, amongst many projects at various stages is the Melbourne to Brisbane Inland Rail. Approval was recently given for the Narrabri to North Star Environmental Impact Statement so the next stage of the rail project can proceed.
If you need new equipment in order to compete on tenders or complete work on major infrastructure, contact us for a quote on finance.
New Products from Case
CASE Construction Equipment recently launched its B Series compact track loaders and skid steers. According to the media statement, these new machines deliver an intuitive operating experience to simplify operation while withstanding the effect of the use of heavy earthmoving and attachment.
The operator interface has been redesigned and contractors are offered the choice of controls: the standard mechanical, electro-hydraulic or mechanical hand and foot. The display provides an 8” LCD command centre with multi-functionality including visibility of the backup camera.
The B Series has many new features including creep speed capability; new operator profiles; economy mode; engine protection settings and many others. Worth checking out at CASE Construction Equipment website or your nearest dealer. To check out finance options, give us a call.
Investment Allowances: Budget Benefits
A very big ICYMI, the Instant Asset Write Out scheme has been extended through to 30 June 2021 and a new measure, temporary full expensing, were announced in the Federal Budget in early October and are now available.
Essentially, the full purchase price of new depreciable asset purchases such as civil construction equipment, can be claimed as tax deduction in the financial year of purchase. All of course subject to eligibility criteria based on the size of the business as we’ve covered in previous articles. Details are available at the ATO website.
We continue to remind customers that in order to be a depreciable asset, the equipment must be financed by an appropriate loan type. Specifically Chattel Mortgage. This type of finance is suitable for businesses that use a cash accounting method. A method popularly used by businesses in Australia.
Chattel Mortgage is also referred to as a Heavy Equipment Loan by some banks. It has a straightforward format:
- The equipment is used as security against the loan.
- The borrower receives ownership and has full use and responsibility for the equipment once the purchase and finance contracts are settled.
- In establishing your Chattel Mortage, your Jade consultant negotiates the cheapest interest rate and best deal from our lending panel. This rate is then fixed for the term of the loan.
- A balloon is optional so a percentage of the purchase price may be excluded from the monthly repayments and deferred for payment at the conclusion of the loan term.
- The loan term and the repayments are fixed so you can plan your cash flow. Your Jade consultant will structure the loan terms to your specifications.
As you have ownership of the equipment, it’s on your books, so you can depreciate the asset. Usually that means a small percentage depreciation over the life of the asset as established by ATO rulings. This ‘depreciation’ is your tax deduction as the monthly repayments are not fully tax deductible, only the interest portion.
Under the IAWO and full expensing, you won’t have to wait years to realise the full deduction on your equipment purchase. It can be claimed in this financial year. At the EOFY when you prepare your income tax return.
If you’re currently considering an equipment purchase, this could be suitable for your business. So that’s a quick ICYMI and we’ll keep an eye on further updates in the sector FYI.
To discuss a quote on equipment finance, contact Jade Equipment Finance on 1300 000 003 to discuss finance.
DISCLAIMER: THIS ARTICLE INCLUDES INFORMATION, DATA, SPECS, DETAILS AND MATERIALS SOURCED FROM EXTERNAL SOURCES SUCH AS MANUFACTURERS, SUPPLIERS, GOVERNMENT DEPARTMENTS AND OTHER ORGANISATIONS AND NO LIABILITY IS ACCEPTED FOR ERRORS IN THE REPRESENTATION OR PRESENTATION OF SUCH INFORMATION. THE ARTICLE IS PRESENTED AS GENERAL INFORMATION ONLY AND IS NOT INTENDED AS SPECIFIC FINANCIAL ADVICE FOR INDIVIDUALS AND BUSINESSES. THOSE REQUIRING ADVICE IN REGARD TO THEIR INDIVIDUAL CIRCUMSTANCES ARE DIRECTED TO SEEK INDEPENDENT ADVICE FROM THEIR FINANCIAL ADVISOR OR CONSULTANT.