While the Federal Budget sets much of the big picture economic outlook for the financial year, it is in the content of the individual state budgets where many equipment owners and operators will find opportunities to expand their business. NSW has been embarking on a large-scale infrastructure investment program over many years with the Metro and Light Rail amongst many other significant projects. The outlook moving forward continues that trend with a $108.5b spend on infrastructure planned over the next 4 years.
The NSW Treasurer, Dominic Perrottet delivered the state’s budget into Parliament just days prior to a significant COVID-19 outbreak in Sydney. A situation that resulted in a 14-day lockdown being called for Greater Sydney and restrictions placed on regional NSW. Despite one Government minister contracting the virus and others forced into isolation, the work of the government continued and the budget measures should start to be rolled out. Measures that present opportunities for businesses in many sectors.
NSW Budget Overview
The NSW budget is strongly focused on jobs growth and supporting the economy to bounce back from the effects of the COVID-19 pandemic.
- Stamp duty waived on purchase of new electric cars.
- EV charging infrastructure.
- $380m spend on renewable energy projects – wind, solar and storage.
- Assistance for farmers in regard to the plague of mice.
- Costs associated with occupational licences lowered and streamlining the system for those that need to operate in multiple different locations.
- Specific programs to assist Sydney CBD hospitality operations.
- Cutting red tape to fast track developments. More info here
Infrastructure is again a big feature of the NSW budget with multiple projects in the pipeline:-
- Sydney Metro West
- Modernisation of the rail network
- Stage 1 of the M6
- Capital expenditure on schools including new schools
- Great Western Highway upgrade in joint funding with the Federal Government
- Continuation of the WestConnex project
- Upgrade to the Northern Road and M12
- New England Highway projects
- Widening of Henry Lawson Drive
- Stage 2 of Parramatta Light Rail
- Upgrading Warringah Freeway
- Release of new land for home building to assist with the demand for housing in Sydney and surrounds
- Transformation of the Powerhouse Museum at Ultimo
- Development of the Great Southern Walk in the Illawarra
- Significant health infrastructure spends covering 110 capital works projects. Including works on John Hunter Health Precinct, Liverpool Health Precinct and Tweed Hospital.
Development of the ‘New CBD’
A key part of the NSW state budget is an $870m spend on the first stages of development on what has been tagged as Sydney’s next CBD- the Bradfield City Centre. This area is around the site of the new airport under construction and the development will include land releases as well as commercial developments.
This is being billed as ‘Australia’s first smart city’ and will provide an economic hub focusses on high tech. The budget funds are earmarked for enabling works and site preparation. Another spend of $175m is set aside for the first building, a high tech structure and new training and education model.
Disaster and COVID Support Payments
Just a week after announcing the budget, the NSW Treasurer was required to develop support funding for businesses impacted by the COVID lockdown. These plans have been announced with monies available after 19 July by application and subject to a downturn in turnover. Click here for more information on business support funding.
Finance for New Business Opportunities
Despite the Greater Sydney lockdown and restrictions in the regions, many businesses are still able to operate and as such, start planning how they can take advantage of new projects in the various state budgets. Most businesses in the agriculture, construction, trades, manufacturing and processing areas will still be operating as relatively normal and considering their equipment and machinery requirements.
The projects being funded by the NSW Government cut across many areas and present opportunities for a vast range of operators. If you are considering tendering for work on these projects, new machinery and equipment may be your first concern. Being able to include details of the equipment you have to complete the works may be a big plus for your submission.
We have the full portfolio of asset acquisition finance available for the purchase of plant, machinery and equipment.
Our finance products include:
If you would like to maximise the tax deductions of your purchase, Chattel Mortgage may be the most suitable form of finance as it is seen as best suited to temporary full expensing (TFE). An accelerated asset depreciation measure, TFE allows eligible businesses to deduct the full purchase price of new, eligible assets in the year of acquisition. Chattel Mortgage also attracts the cheapest interest rate of the range of asset acquisition loans. To compare the best deals across multiple banks and lenders, feel free to make use of our equipment finance interest rate tool.
To start working up repayment estimates on equipment for new projects, use our loan calculator tools or simply contact us for a quote and an individually tailored solution.
Contact 1300 000 003 for quotes on cheap equipment finance.
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.