Maximising the 2020-21 Budget for your construction business

The current economic climate dictates that businesses all over Australia are in need of more assistance to continue trading than ever before (well, maybe since the Great Depression, anyway).

It’s no secret that COVID-19 has turned the construction industry on its head, which is why there have been concessions and benefits added to the Budget for 2020-21 that assist construction businesses get through everything a little more comfortably. Here are some of the key elements specifically related to construction.

FY20-21 benefits for the construction industry

Infrastructure investments

Over the next four years, the Government is providing an additional $10bn of funding towards infrastructure projects, increasing the total to $14bn and providing an extensive amount of construction job opportunities.

Assistance for first home buyers & additional funding into low-cost finance

This one’s actually beneficial not just for construction businesses but also those who have always wanted to own a home; a win-win we can definitely get behind!

There will be an additional 10,000 (on top of the already 20,000) first home buyers able to purchase a new house more quickly via the Government’s First Home Loan Deposit Scheme. Also, they’ve set aside a further $1bn to deliver lower-cost finance which will allow for an increase in people being able to afford to take on home loans and, as such, build new homes.

Of course, all of this will mean more work for businesses in the construction industry.

And now for the juicy stuff…

Loss carry-back

For businesses with a turnover of up to $5bn that saw profits during or after the 2018-19 financial year (and paid taxes on said profits) but have seen losses incurred due to COVID-19 up to June 2022, you can offset these losses by getting back some of the taxes paid when you lodge your tax return over the next two years.

Instant write-offs on eligible assets

The 3.5-odd million businesses in Australia that trade under $5bn turnover annually can instantly write off all new assets purchased (no longer capped at $150,000), installed and used for business purposes from now until June 2022. Additionally, should you spend money on improving existing depreciable business assets, you can claim that in full, too.

SMEs with up to $50 million in annual revenue are also able to claim a full deduction immediately on secondhand asset purchases, while businesses trading between $50 million and $500 million in annual revenue can do the same for secondhand assets valued up to $150,000 provided they’re purchased between now and December 31, 2020.

There are a few more great features of this latest Budget such as the new JobMaker hiring scheme - read a bit more about it all in this article.

Take advantage of the new Budget concessions now

If you’ve been considering purchasing some machinery, equipment and/or new commercial vehicles, the new Budget means now is the perfect time to do exactly that.

Here's a selection of great commercial vehicle deals we have access to (amongst many others!)

At Stratton Finance, we can help you find the best finance deals for commercial equipment and vehicles to suit your needs - give us a call for a chat today on 1300 787 288 or send us an enquiry online and we’ll be in touch shortly. And our partners over at carconnect are able to source the vehicle you’re after at a fantastic price - and have it delivered directly to your home or workplace!

It’s really never been easier (or more beneficial) to equip your business with some much-needed new assets that will help make operations smoother and grow your business. So give the friendly team at Stratton Finance a call today to get the ball rolling.

^ Whilst carconnect expects to be able to source these prices or better for our customers, actual prices will depend on use, payment option, location and availability.

^^ This weekly repayment estimate is provided by Stratton Finance Pty Ltd (Australian Credit Licence: 364340. ("Stratton"). Stratton is a finance broker. This repayment is calculated with an interest rate of 4.95% p.a. over a term of 60 months with a 0% residual / balloon payment. Other residual / balloon amounts are available. The vehicle price shown may not include other additional costs such as stamp duty, government fees and other charges payable in relation to the vehicle. In order to provide this estimate, Stratton are required to make several eligibility assumptions, including property ownership. To comply with regulations, consideration may be given for credit score and loan to value ratio (LVR), this estimate has been calculated with an LVR of >90%. This estimate is based on several assumptions outlined above and should be used for information purposes only and is not an offer of finance on particular terms. Credit fees, service fees and charges may apply. Credit to approved applicants only. A quote, details of all fees and charges may be obtained by contacting Stratton via strattonfinance.com.au or calling 1300 STRATTON (1300 787 288).