The states and territories would normally announce their annual budgets around May each year. But just as the Federal Government did, the states have also postponed the release of their 2020-21 budgets with November now the timing. But prior to bringing down the full budget, several jurisdictions have been doing the usual pre-budget announcements and we’ve flagged a number of good news pieces to pass on to our customers.
At this stage, we’re doing a quick whip around the states in a preview to full budget which we will report on at a later date. In general and in line with the Federal Budget approach, the theme is creating jobs through investment in major projects and providing business with a raft of cuts and relief to a range of fees, taxes and charges.
For business, any cut to existing and expected expenses is good news as it frees up cash flow for investment in equipment to grow their operation.
NSW State Budget Preview
The NSW Treasurer, Dominic Perrottet will bring down the state’s budget on 17 November after deferring from the usual March timing. In a September statement, Mr Perrottet said the focus of the budget would be on jobs creation for the 2020-21 budget.
Pre-budget releases include:-
- Trade and industry the cornerstone of the budget.
- On the ground assistance for key international markets with an increase in the number of NSW offices in global trade centres.
- Extending the Going Global Program which involves export coaching and expert services for businesses looking to expand their export business.
- Advanced Manufacturing Strategy valued at $17.5m
- $300m over 2 years for a Regional Growth Fund.
- $75m Resources for Regions for infrastructure to support mining towns and communities.
- $1.8m for continuing small business rebate program. The money can be used for equipment to improve workplace health and safety.
- Major upgrades to 5 train stations to create jobs and improve the public transport system.
- Relief for payroll tax for eligible businesses.
- Commitment to support women and mature aged workers to take up trades through Trades Skills Pathways Centre.
- Major digital investment initiatives which include cyber security, e-planning and other areas.
- Major roads projects for several of the state’s worst crash spots including the duplication of Heathcote Road and Picton Road.
These pre-budget announcements are in addition to other major investment already undertaken and planned by the NSW Government. Deserving of mention is the Electricity Infrastructure Roadmap which is set to modernise the infrastructure through speeding up approvals for transmission infrastructure in key Renewable Energy Zones and creating long term investments in these zones.
Further detail will be reported when the full budget papers are available following the formal announcement.
South Australia Budget
The SA Treasurer Rob Lucas has brought down the state’s budget and it addresses the impacts of COVID-19 and bush fires on the state’s economy and focuses on creating jobs and backing business. All good indicators for our Jade Equipment Finance customers
The package includes $592m in tax and fee relief and $354m for economic and business growth and significant investment in infrastructure projects. To see how your particular sector and your individual business may benefit, review the complete budget document.
Northern Territory Budget Announced
The NT Chief Minister who is also the NT Treasurer, Michael Gunner, brought down the territory’s budget on 10 November with a raft of jobs creation and investment measures. For employers, the budget includes an extension of the Federal Government’s JobMaker program with additional wage subsidies for eligible workers. Payroll tax relief measures are also included. Read the full detail and what’s in it for you.
What it means for equipment finance
Government media announcements and hi-vis press conferences in news bulletins may get overlooked amidst the demands of operating your business so you may not immediately realise ‘what’s in it for me?’ While we’re not in a position to draw finite conclusions on possible outcomes for every industry in which we operate we can provide some ideas on how you may take advantage of your state government budget inclusions.
While the Federal Government budget and regulations cover the wider area of taxation which represents key cash flow gains for business, the budget initiatives by the states and territories may represent opportunities for new business opportunities.
The investments in infrastructure should mean many more tenders on offer and if that’s your area of concern, it may be time to increase your equipment fleet. Relief in payroll tax across many states may free up cash flow which could be put to better use in servicing an equipment loan.
Many of the packages announced by state governments need to be followed up by business operators in a proactive approach. If you see opportunities for growth in your state budget and are keen to invest in new equipment, have a discussion with Jade about how we can support you with cheap interest rate equipment loan deals.
To discuss equipment finance options, contact Jade Equipment Finance on 1300 000 003
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