With the economy adapting to the post-pandemic conditions – global and domestic inflation, supply chain issues, labour shortages, businesses are no doubt looking for all possible opportunities to increase their profitability and productivity. Opportunities which may be found in the state budgets for 2022/23. But to fully realise the opportunities available through state budget initiatives, businesses may need to secure affordable machinery finance to upgrade equipment.
State budgets traditionally include plans for infrastructure projects and other construction plans which offer opportunities for those operating directly and indirectly in those areas. Big infrastructure spends have been a major component of state budgets in the last few years in particular as part of the stimulus measures.
For 2022/23, as state governments, just like individuals and businesses, deal with rising interest rates on borrowings, addressing the debt accumulated in providing pandemic support is a priority for treasurers. Despite this situation both the NSW and the Queensland state budgets which were recently announced do offer significant opportunities for a range of business operators.
We provide an overview of the budget highlights for business owners to consider if there are opportunities which necessitate upgrading plant, machinery and equipment to take advantage of.
2022/23 NSW State Budget Highlights
The budget for NSW was delivered by Treasurer Matt Kean and seen by some as a pre-election budget in the lead-up to the March 2023 election. Plenty of spending on, as the Treasurer said, on people. While the media highlighted the delay or postponement of a number of key infrastructure projects in this budget, there is still a lot of construction work included. Schools and police stations as well as projects in the renewable energy sector are noted.
Additional spending has been announced for childcare, workforce participation for women, health services, first home buyers and in other areas. Relief for some road users with toll rebates will be seen by many business operators as a true cost savings.
In regard to major projects, the Sydney Metro West is included as is the line to the new airport in Sydney’s west and the extension to the southwest of the Metro Northwest line. Projects to be delayed include the Northern Beaches Link and the M6 second stage.
Those in agriculture can consider the funds available for upgrades to operations and properties to more sustainable farming practices.
The budget covers a broad range of sectors and programs and details can be reviewed at the dedicated website.
2022/23 Qld State Budget Highlights
The Queensland Government also announced its budget for the 22/23 financial year with Treasurer Cameron Dick highlighting the major drivers. These include increasing the health system capacity; creating more storage for energy as well as developing renewable sources; providing support to businesses both emerging and traditional; and recognising cost-of-living pressure on households and businesses.
Highlights of the budget include:-
- Made in Queensland continuing to provide support for the manufacturing sector.
- Waste Package which provides funding for both industry and local councils to invest in programs an in infrastructure to reduce waste.
- Resources Industry Development Plan which aims to fast-track the processing and production of new economy minerals.
On the cost saving side for businesses, Treasurer Dick announced a reduction in payroll tax. The threshold is raised to $10.4m from the current $6.5m from the start of 2023 calendar year.
There could be plenty more opportunities for your business to investigate in the Queensland state budget.
Machinery Finance Opportunities
While Federal Budgets can include measures which impact business finance by way of tax deductions, the same does not generally result from the announcement of state budgets. Though state-based charges, fees and taxes may impact decisions around taking on finance and may add to or decrease business expenses.
The range of finance products available for the acquisition of plant, machinery and equipment include:-
If you identify opportunities in the Queensland or NSW State Budgets for your operations and you would like to upgrade your set-up to be in a great position to capitalise on these situations, start thinking finance.
While lending rates across the board are rising in response to RBA decisions, our policy of achieving better interest rates remains unchanged. We are achieving workable and cost-effective rates across our loan portfolio.
To get a rough idea of estimated repayments on the machinery you are considering, use our Finance Calculator or our Interest rate comparison calculator. Rates are set to edge up again as early as 5 July at the RBA’s next Board meeting, so getting in asap to avoid the next rise is advisable.
To discuss workable machinery finance for your business contact Jade Equipment Finance on 1300 000 003
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.