As the spotlight remains fixed on the yearly unveiling of the Federal Budget, perceptive truck owners and operators are also maintaining vigilant watch over developments in their respective state government budgets. While the Federal Budget establishes the overarching economic context and features substantial business tax advantages, State budgets frequently harbor valuable prospects for new work prospects and potential reductions in state-related expenses and levies. These state-level financial plans can reveal not only fresh avenues for business growth but also avenues to curtail costs for businesses. For more information click here.
For business owners, the prospects for additional work and business expansion can be key drivers for new truck purchase decisions and sourcing cheap truck loan finance with any possible reduction in costs can make way for that investment in new vehicles.
Following the federal budget announcement in May, various states have followed suit throughout the May-June period. The most recent budgets to be unveiled are those of Queensland and New South Wales, which are the focus of this article. Across the board, the states have unveiled substantial infrastructure projects as part of their stimulus efforts within their deferred 20/21 budgets, with many of these projects slated for continued implementation.
One of the prominent challenges confronting numerous business operators pertains to acute labour shortages. Given this prevailing concern, businesses are undoubtedly turning their attention to all levels of government in anticipation of initiatives that may offer potential resolutions to this issue.
Queensland State Budget 2021/22: Overview
Queensland Treasurer Cameron Dick tabled the state’s budget for 21/22 on 15 June and claimed the economy was larger than prior to the pandemic and predicted that the Queensland economy would grow at a rate, 3.25%, almost double the national rate over the 21/22 financial year. In overview remarks, Mr Dick noted the large migration to QLD from other states of 30,000 in 2020 with 85,000 additional Australians expected to move north over the coming four years.
Population growth means the need for increased services and facilities and that can mean business opportunities!
However, the budget papers included a warning that despite the state’s good economic performance, potential risks were present in regard to global vaccinations, trade and geopolitical tensions and especially coal exports to China.
Budget highlights of note:
- A flagship initiative of $3.34 billion Queensland Jobs Fund to drive growth in the private sector and jobs.
- $2 billion Renewal Energy and Hydrogen Fund.
- The existing program of capital works continues to the tune of $52.2 billion.
- Continuing works on upgrading the Bruce Highway including projects at Rockhampton Ring Road, Cooroy to Curra, Haughton River Floodplain bridges and approaches, Townsville Ring Road and many others.
- Construction of the $367.2m Rookwood Weir in conjunction with funding from the Federal Government will continue.
- Expansion of Cairns Convention Centre and works on Proserpine Entertainment Centre.
- Regional building projects through $148m to regional council projects.
- Cairns Marine Precinct infrastructure works by Ports North.
- Capital works at Ports of Gladstone, Rockhampton and Bundaberg.
- Wharf renewal projects by North Queensland Bulk Ports.
- Capital work by Energy Queensland.
- Upgrades at Stanwell and Tarong power stations.
- Works at Mt Crosby Water Treatment and Gold Coast Desal Plants by Seqwater.
These are just some of the opportunities on offer with new projects. Further details can be found at https://budget.qld.gov.au/highlights/#investing-for-growth
NSW State Budget 2021/22: Overview
The timing was not exactly on the side of NSW Treasurer Dominic Perrottet in his budget announcement. It came just days prior to the escalation of a COVID-19 outbreak in Sydney which highlighted the ongoing risk that the virus represents. The NSW 2021/22 budget contains opportunities for many businesses, with the continuation of the state’s commitment to massive infrastructure spending.
Budget highlights include:-
- Focus on renewable energy with $380 million to solar, wind and storage projects. This includes the construction of renewable energy plants in a number of regional areas.
- $30 billion for infrastructure including upgrading the Warringah Freeway and the Sydney Gateway project.
- Farmers will be assisted with $150 m for controlling the mice plague.
- Developing land and infrastructure in the ‘next CBD’ the Bradfield City Centre around the new airport.
- Development and release of land to create home sites to ease demand for housing.
- $1500 in rebates to small businesses to assist with eligible government fees and charges available through to 30 June 2022.
- Waiving stamp duty on new EVs.
- Lowering the cost of occupational licenses to assist those operating over multiple locations.
Furthermore, there are numerous specific details that we will delve into as they unfold in the future. Alongside these significant overarching projects, the support at a micro level is not disregarded. This is evidenced by the provision of extra Dine and Discover vouchers aimed at aiding hospitality establishments within the challenged Sydney CBD locale.
Capturing the Opportunities
Similar to the Federal Budget, the states are directing their attention towards fostering job growth to facilitate the recovery of businesses from the economic ramifications of COVID-19. This emphasis entails temporarily setting aside the task of addressing debt levels. Should the policies and initiatives on offer align with opportunities for your business, necessitating investments in new trucks, this juncture is also highly opportune for securing truck loans. Business Finance – Commercial Loan Options are designed to complement these recovery efforts, offering tailored financial solutions that align with your business objectives and contribute to your growth during this critical period.
Apart from the historic low-interest rate scenario, the temporary full expensing and loss carry-back measures combine to offer significant positive outcomes for businesses through asset acquisitions. Talk to us about structuring a truck loan to position your business to take advantage of the opportunities available to your business. To get yourself ahead of the game feel free to use our truck loan interest rate table to compare banks and lenders in Australia.
Contact Jade Truck Loans on 1300 000 003 for a quote on a truck loan to suit your business objectives.
DISCLAIMER: THIS INFORMATION IS ISSUED PURELY FOR THE PURPOSE OF GENERAL INFORMATION PROVISION. IT IS NOT TO BE TAKEN AS THE ONLY SOURCE OF INFORMATION FOR BASING FINANCIAL DECISION-MAKING. THOSE REQUIRING FINANCIAL GUIDANCE AND ADVICE SHOULD CONSULT WITH THEIR FINANCIAL CONSULTANT OR ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATION OF POLICIES, DATA OR ERRORS IN THIS CONTENT.
