The Federal Budget was brought down on 11 May and while the Bill needs to be passed by Parliament before being implemented, there are numerous industry measures that could be worth you considering. In addition to the specific business measures such as the extension of temporary full expensing which we have covered in a separate article, the spending side of the budget represents significant business opportunities across many industries. Opportunities that may be motivation for you to expand your business with the purchase of new vehicles.
We cover the key industry programs particularly infrastructure projects as announced by Treasurer Josh Frydenberg in the 2021/22 Federal Budget.
The residential construction sector is being assisted with a tweak to the HomeBuilder program which was originally announced in June 2020. The time for commencement of construction has been extended to 18 months to allow for more work to be taken on.
Infrastructure is once again a big-ticket item in the Federal Budget with a further extension of the Federal Government’s billion-dollar pipeline of projects. An additional $1 billion has been committed in 2022/23 for the Local Roads and Community Infrastructure Program and Road Safety Program. Initiatives which not only potentially represent work for truck operators but also provide better roads to increase safety, less wear and tear on vehicles and potentially more efficient transport routes.
In a state-by-state run down, here are some of the major projects mentioned in the Budget Papers, some of which are already underway but with some funding possibly included in this budget:
- New South Wales: Sydney Metro-Western Sydney Airport; M12 Motorway; M1 extension to Raymond Terrace; WestConnex
- Victoria: Melbourne Airport Rail Link; Geelong Fast Rail; North East Link; south eastern and northern roads upgrades.
- Queensland: Bruce Highway Upgrade; Gateway Motorway; Stage 1 Coomera Connector.
- Western Australia: Bunbury Outer Ring Road; NorthLink WA; Metronet, Morley-Ellenbrook Line
- South Australia: Gawler Rail Line Electrification; Hahndorf improvements and upgrade of access.
- Tasmania: Replacement of Bridgewater Bridge; Midway Point Causeway on the Hobart-Sorrell corridor; Revitalisation of Tasmanian Rail Freight.
- Australian Capital Territory: Stage 2A Light Rail; Upgrade Monaro Highway; Molonglo River Bridge.
- Northern Territory: Upgrade Central Arnhem road; upgrades NT gas industry roads; upgrade Carpentaria and Buntine Highways.
A big focus of the Budget is on securing energy and that includes support for gas infrastructure projects. This includes battery and microgrid projects and the development of hydrogen hubs.
Manufacturing and Supply Chains
In the wake of issues around supply chains through COVID-19, the Budget is addressing key vulnerabilities and sovereign capabilities as well as continuing the Modern Manufacturing Strategy which is a 10-year plan announced last year.
$850.4m is set aside in the budget to assist farmers to achieve their goals of increasing farm gate output. Investment is also being made to improve Australia’s biosecurity systems and weed and pest reduction.
The Future Drought Fund is also included to assist farmers in preparing for future droughts through risk management, resilience programs and investing in better practices and new technologies.
A number of key initiatives have been earmarked in caring for the environment. These include recycling and waste industry programs, ocean health programs and other measures.
These are just a few of the many industries set to benefit from the Federal Budget but ones which we see as presenting potential opportunities for truck owners and operators.
Capturing and Capitalising on the Opportunities
It’s one thing to have these potential opportunities sitting there, it’s another to have a smooth pathway through to capturing and capitalising on them. Especially where the need arises to purchase new vehicles in order to get your share of these budget projects.
Jade Truck Loans provides that streamlined pathway to realising the benefits of new business opportunities through access to cheap truck finance. Our service as a broker-style lender allows business owners to simply contact us, provide a brief as to the truck being purchased and the finance product required and we do the hard work from there.
The tasks of sourcing the cheapest quote from across multiple lenders, negotiating on loan terms and conditions, assisting with the finance paperwork as well as providing access to industry-only lenders are included in our service. Service which saves operators time while delivering cheaper truck loans and specialised options for low doc, no doc truck loans and bad credit applicants.
Truck Loan Options
New business opportunities should be considered in conjunction with the tax incentives presented by temporary full expensing. A measure that allows businesses to fully deduct the full purchase price of eligible truck acquisitions in the year of purchase.
Chattel Mortgage or Heavy Vehicle Loan is seen as the most appropriate loan product to suit temporary full expensing. But the full range of loan options should be considered as one of the other financial products that may deliver better outcomes for the business.
Truck loan options include:
To get a better idea of potential loan repayments, feel free to use our online truck loan calculator. If any of these Budget projects present opportunities for your business, contact us to discuss how we can assist with a truck loan.
Give us a call on 1300 000 003 for a quote on your lending needs.
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.