The demand for equipment in the business world has reached new heights.
According to NAB data, businesses throughout the country are buying new equipment and cars in historic numbers, as big and small businesses alike take advantage of the best market conditions in years.
With the end of the fiscal year rapidly approaching, we predict robust demand for equipment and cars, with companies eager to invest in their future by taking advantage of the federal government’s temporary full expensing laws (more on that below).
The desire for new equipment, according to NAB, stems from a rocky 2020, when companies were compelled to ‘pivot’ and innovate their way through the epidemic.
Now, Australian companies are investing to capitalize on the opportunities they’ve discovered.
“It’s not surprising that equipment sales are so high,” says NAB Executive Regional and Agribusiness Julie Rynski, “with business confidence at an all-time high and firms building on what they’ve learned through the epidemic.”
According to NAB, the top equipment purchases made by Australian firms include:
– tractors up 146% year-on-year (YOY)
– irrigation equipment up 217% (YOY)
– earthmoving/construction equipment up 133% (YOY)
– forklifts up 216% (YOY)
– coffee machines up 155% (YOY)
What exactly is this 'temporary full expensing' you speak of?
Temporary full expensing is essentially a more comprehensive version of the federal government’s popular quick asset write-off program.
It permits enterprises of all sizes, large and small, to write off any qualified depreciable asset at any cost until June 30, 2022.
This can help you increase your cash flow by allowing you to reinvest funds into your company sooner.
It’s worth noting, though, that the asset must be installed or available for use by June 30 to be eligible for current fiscal year.
The ATO’s website has complete information on company and asset eligibility.
Do you need to look into your financing possibilities for a new business asset?
It’s all well and good to be able to write off assets right away, but if you don’t have the finances to buy them, the strategy won’t help you much.
So, if you’d like assistance securing financing to take advantage of temporary full expensing for your company, contact us today.
We can give you with scheme financing choices that are ideally suited to your company’s current and future needs.
To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at email@example.com
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