The Federal Budget was unveiled on May 11th, and while parliamentary approval is required before its execution, there exist several industry-specific provisions that warrant your thoughtful consideration. Alongside the detailed business measures, such as the extension of temporary full expensing which we’ve already discussed in a separate piece, the expenditure facet of the budget presents noteworthy prospects for businesses spanning various sectors. These opportunities have the potential to serve as incentives for you to enhance your business by acquiring new vehicles.
We cover the key industry programs particularly infrastructure projects as announced by Treasurer Josh Frydenberg in the 2021/22 Federal Budget.
Construction Sector
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 Projects
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.
Energy Sector
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.
Agricultural Support
$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.
Environmental Sector
Several noteworthy endeavors have been designated to address environmental concerns. These encompass initiatives directed at the recycling and waste sector, programs aimed at preserving ocean health, and an array of other measures.
These represent only a subset of the numerous industries poised to gain from the Federal Budget. However, we specifically identify these as fields that hold promising prospects for individuals who own and operate trucks.
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
Exploring novel business prospects should be approached hand in hand with the attractive tax incentives facilitated by the temporary full expensing provision. This measure permits businesses to completely deduct the entire cost of qualifying truck acquisitions within the year they are purchased.
When delving into loan products tailored to this scenario, the Chattel Mortgage or Heavy Vehicle Loan emerges as a fitting choice, well-matched to leverage the benefits of temporary full expensing. However, it's prudent to weigh the complete spectrum of loan options. This evaluation ensures that the full array of financial products is considered, increasing the likelihood of achieving optimal outcomes for your enterprise.
Truck loan options include:
- Chattel Mortgage
- Truck Leasing
- Rent to Own Truck Finance
- Commercial Hire Purchase
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.
