As state leaders, health authorities, decision-makers and much of the population focus on the daily first dose and full vaccinated percentages, businesses need to not only start thinking but enact investment plans for business reopening. Consider how they will be operating when that 70-80% fully vaccinated level is achieved and the economy is supposed to re-open. Whether or not all jurisdictions will adhere to the National Cabinet decision remains to be seen. But regardless of the exact nature of the outcome, it is fairly certain that the economy will be operating a lot more freely than under the current scenario.
Rather than wait for decisions to be formally announced, smart operators are acting to ensure they are ready to capture their large share of the trade. Have you been hibernating your business, even to a small degree? Possibly holding back on equipment investment decisions in a cautious wait and see approach? Understandable but is that going to leave you behind the competition with your bottom line dragging?
Apart from the pressing and serious COVID-19 situation, other factors need to be considered at this time also. Just as the countdown to reopening is happening, other clocks are ticking which are making buying decisions more of a priority.
Temporary full expensing runs through to June 2022 BUT issues with global supply chains are impacting the availability in the Australian market of a wide range of plant, machinery and equipment across many industries. Leave that buying decision till EOFY is imminent, and you could miss out entirely.
Jade Equipment Finance reminds business that the temporary full expensing clock is ticking and we are ready to assist businesses to both take advantage of accelerated asset depreciation measures and be ready to re-open at full capacity with their equipment acquisitions.
TFE Countdown is ON!
Temporary full expensing has been a great assistance to many businesses over the past 18 months or so. Enabling even small operators to claim the full value of eligible equipment purchases as tax deductions in the year of purchase. By realising this measure, many are also able to take advantage of Loss Carry Back to receive a cash refund on tax paid in earlier years.
But TFE is only available through the end of June 2022. We’re already on the verge of the second quarter of FY21/22 and the countdown is well and truly on. We all know how the Christmas-NY holiday period can distract and disrupt so before you know it, it will be February.
While for many that may seem a long way off, there are other factors to consider. At the moment interest rates are at historic lows and while the RBA has repeatedly stated it does not intend to lift rates until around 2024, international markets may react differently. Lenders sourcing funding at higher rates on global markets may face different costs which may need to be passed on.
The other major global considerations are computer chips and other component supplies. With advances in most equipment and machinery, microprocessors are an integral component of the manufacture. The shortage across the globe has caused many large manufacturers to cut back on production which is causing delays in equipment reaching the Australian market.
It may be advisable to check delivery and availability with your preferred equipment dealer or proceed now with purchasing stock that is available right now. Our Jade Equipment Finance team responds immediately to requests for finance and can expedite applications for quick approval and prompt settlement.
All Options on the Table
As we have covered in multiple articles, Chattel Mortgage is seen as the most appropriate form of finance for businesses seeking to take advantage of instant asset write-off and temporary full expensing. This is a very versatile finance product which can be used to purchase a wide range of business equipment from the most sensitive engineering and medical diagnostic equipment, through to the basics in computing and printing needed by most offices to the tough and rugged machinery used in mining and construction.
But while Chattel Mortgage is suited to a wide selection of equipment it may not be suited to every business. With this form of finance, the asset is posted to the balance sheet and not all businesses are in a position to carry a large-value asset on their books.
So we have all finance options on the table. While not seen as ideally suited for accelerated asset depreciation, Leasing and Rent-to-Own do suit many business set-ups and do have significant tax deductibility features.
Whatever your business set-up and whatever equipment you need to acquire, we can assist with a quote for cost-effective finance at the cheapest interest rates. Use our Interest Rate Comparison Calculator to calculate repayment estimates on the equipment you need and see instantly what repayments we may be able to achieve for you across our portfolio.
Our consultants are ready to assist all businesses prepare for reopening with new equipment and take full advantage of the tax measures available.
Contact Jade Equipment Finance on 1300 000 003 to discuss your equipment finance requirements
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.
