There have been plenty of words describe the unusual year that has been 2020. But one issue which stands out is information overload. With varying intentions, governments, government departments, compliance bodies, banks and a raft of other organisation have been disseminating information around COVID-19. A lot of the information is about support programs, some around the restrictions and compliance measures that businesses must abide by. Changes and updates have been constantly rolling out, with truck operators especially impacted with the regularly changing border permits.
If you’re feeling overwhelmed with the amount of information circulating and possibly concerned if you’ve missed something of importance to your business, we’re ‘bringing it all in for you. Encapsulating the key points that are relevant to our Jade Truck Loans sphere – lending, finance and especially opportunities for our customers.
First, we had the Federal Budget in October and now individual states and territories are rolling out their annual budgets for 2020/21. To simplify the scenario, the federal budget deals with key areas of taxation while at the state level, the focus is on state-based taxes, charges and infrastructure projects.
The major takeouts from the Federal Budget for business, which we have covered in several articles including:
- JobKeeper is extended but at a reduced rate through March 2021. Businesses need to reapply each quarter.
- Wage subsidy program available when hiring young trainees and apprentices.
- Major investment is being made into key industry sectors which may result in more work for your business.
- Instant Asset Write-Off extended through to 2021. This allows eligible businesses to write off the full cost of acquiring assets, in your area, trucks, in the same financial year.
- Temporary Full Expensing is a similar concept to IAWO but the scheme is expanded to include some businesses and some assets not covered in IAWO.
- Loss Carry Back is the opportunity to claim business losses made in 2019/20 and 2020/21 against profits made in earlier years rather than carry the losses forward against future profits. Business eligible for this measure may realise an actual cash tax refund after submitting their business income tax return after 30 June 2021.
- Proposition: eligible business could purchase a truck with a Chattel Mortgage finance product arranged by Jade Truck Loans at current record low-interest rates in this financial year, write-off the full purchase price, resulting in the business posting a loss, which is then claimed against the profit made in say 2018/19 and receive a cash tax refund come 1 July 2021.
If this sounds like a plan, contact Jade to talk about pre-approved truck loans or for a quick quote.
State budget initiatives differ according to individual states and territories. Generally speaking, there has been a concerted effort to offer businesses payroll tax relief in light of the challenges posed by COVID-19. This relief may be particularly relevant if you operate within the sectors offering Rent To Own Truck Finance or those that benefit from No Doc Truck Loans & Truck Leasing. Such reliefs have been available since the early stages of 2020, with several state budgets enhancing and prolonging these measures. Some states have opted for waivers, while others are providing deferrals. To aid businesses further, various states have devised payment systems to facilitate a more straightforward repayment process for any deferred tax obligations.
Furthermore, there is substantial investment in infrastructure projects spanning the states and territories. For businesses in the transport sector, especially those interested in truck finance and leasing, this presents a potential opportunity. There might be tenders that align perfectly with your business model. It's advisable to regularly check your state government website to stay updated on available tender offerings.
The states also control road charges and in NSW the opening of NorthConnex signalled mixed news for truck operators. Trucks are forced to use the toll road or risk penalties. That means more tolls for those that regularly travel in that area. Sure it will make the trip a lot faster with heaps fewer traffic lights and take traffic off Pennant Hills Road, but it adds to your costs.
Another reinforcement of how important it is to get low interest rate truck finance deals through Jade. Factoring these types of unexpected cost increases into your long term projections can be challenging. So always achieving the lowest finance when purchasing a new truck is critical.
Interest Rate Cuts and Your Business
The RBA's decision to cut the official cash rate in November translates to a decrease in interest rates. While most news outlets have concentrated on the implications of these cuts for home mortgages, it's essential to note that businesses stand to gain as well.
Consequently, the cost to borrow money should become more affordable. Jade Truck Loans remains committed to procuring better interest rates for all our clientele, making any rate cut a significant advantage.
If you possess an existing truck loan, especially one with a Refinancing Truck Finance Balloon or Residual from earlier days when rates were significantly higher, it might be an opportune moment to converse with Jade regarding the available refinancing options.
State border closures have been a significant source of frustration for interstate truck operators and individuals working within and across border communities. The reopening of the NSW-Victoria border on 23rd November will be warmly welcomed and is expected to provide a boost to your business by reducing delays and the constant need to apply for new permits.
Heading into 2021 With Truck Finance
Unemployment figures are trending better than expected and the latest consumer confidence figures are also looking good. If we’ve brought it all into a point where you’re ready to invest in a new truck, our cheap truck finance offers are always on the table.
To discuss your options for a truck loan contact Jade Truck Loans on 1300 000 003
DISCLAIMER: ALL INFORMATION PROVIDED IN THIS ARTICLE IS INTENDED AS GENERAL INFORMATION PURPOSES AND NOT AS AN EXCLUSIVE OR SOLE SOURCE FOR MAKING FINANCIAL DECISIONS. INDIVIDUALS SHOULD SOURCE INDEPENDENT ADVICE FROM A FINANCIAL ADVISOR IF THEY REQUIRE SPECIFIC DIRECTION IN RELATION TO THEIR CIRCUMSTANCES. CONTENT MATERIAL, DATA, SPECIFICS, PRODUCT FEATURES AND OTHER INFORMATION IS SOURCED FROM A RANGE OF SOURCES AND NO LIABILITY IS ACCEPTED FOR ERRORS OR MISINTERPRETATIONS OF SUCH DATA.