The scheme aimed to, and has, supported businesses through the COVID pandemic by driving investment - allowing eligible businesses to claim an immediate deduction for the cost of an asset in the year it is first used or installed.
“My advice to any business looking to purchase an asset in this financial year is not to leave it until June. Get in early to avoid disappointment”
This scheme is set to expire at the end of this financial year. As 30 June approaches and supply chains open again for many asset classes, SMEs have a great opportunity to invest in their businesses and take advantage of the tax benefit.
Asset finance can help SMEs free up cash to drive other elements needed to grow the business, such as recruiting more staff, purchasing more stock or investing to improve agricultural yields. Whether it is a new van or fridge, header or tractor, asset investment can enhance to day-to-day operations into the future, not just a tax time.
Recent Australian Bureau of Statistics economic data indicate capital expenditure plans for 2023-2024 show an 11 per cent increase year on year confirming many SMEs intend taking advantage of the federal government package.
Demand for new motor vehicles in Australia remains strong despite interest rate rises. Car dealers say they continue to take more orders than they have vehicles to deliver. While there is a growing acceptance around waiting times for new cars, it does seem delivery delays have begun improving. As a result, there are also signs the second-hand vehicle market is starting to normalise.
Most new cars reported as sold in 2022 were ordered months, in some cases years, prior to delivery, as the global automotive industry continued to struggle with unprecedented demand in the wake of the pandemic.
Industry analysts say electric and hybrid cars will continue to experience rapid sales growth in Australia over the rest of the decade as more models become available, giving consumers a broader choice. Electric vehicles accounted for 3.1 per cent of total sales in the December quarter of 2022 and hybrid vehicles accounted for 7.6 per cent total sales for the year.