In addition to the constant flow of announcements from governments in relation to business stimulus and support programs, the Federal Government has announced an extension to the HomeBuilder Grant Scheme, albeit at a reduced amount. According to reports, the decision to extend the scheme came after extensive lobbying from several groups in the building and housing industry. Part of the basis for the lobbying was to allow more time for applications to be processed and ensure people didn’t miss out due to delays in the paperwork etc.
A positive upturn in the building industry can create business prospects for numerous truck operators. At Jade Truck Loans, we recognize the potential for your business in such situations. Especially, this presents an opportunity to consider investing in a new truck or expanding your fleet to meet the growing demand for work orders.
Explainer – what it is, how it works, who benefits.
- The HomeBuilder (not a typo, Government spelling) Program was introduced in June 2020 as one of the Federal Government’s business stimulus measures in response to the effects on the economy of COVID-19.
- The strategy was to create or re-establish jobs in the construction sector.
- The scheme provides a grant of up to $25,000 to eligible persons to go towards a new home build or to undertake renovations on an existing home.
- The original expiry date was 31 December 2020.
- In the PM’s words when announcing the scheme, it was to ‘get tradies back on the tools’. But as we all know, any boost in building activity is sure to be felt beyond the trades on-site.
- Potential benefits can flow through to building materials suppliers and deliverers, concrete truck operators, subbies and many other businesses.
The scheme initially sparked some criticism and delays in applications being processed and all the necessary requirements being met posed a risk to many people being in a position to take advantage of the scheme.
- The Prime Minister has now announced an extension to the scheme but a reduction on the amount being offered.
- Scheme extended to 31 March 2021.
- A lower cash grant of $15,000, down from the original $25,000, will apply to contracts finalised and signed between 1 January and 31 March 2021.
- More time is being provided to commence construction.
- NSW and Victoria have lifted the price caps for new builds. NSW to $950,000 and Victoria to $850,000.
In announcing the extension, the Prime Minister, Scott Morrison, echoed his earlier comments stating that it meant a steady pipeline of activity for the construction industry and would ‘keep tradies on the tools.’ It should also keep many others in the building and allied areas busy also.
What’s in it for you?
If you operate in the home building or construction industry, it could mean more work with increased demand for building supplies, more excavation, concrete work and other the possibilities continue.
At Jade Truck Loans, we envisage possible work opportunities for:-
- Building material supplies delivery trucks – bricks, timber, tiles, fixtures and fittings, pre-fab components.
- Crane trucks that deliver equipment to site.
- Tippers for delivery of sand, soil, landscaping materials, gravel
- Dump trucks for removal of excavated material.
- Concrete mixers.
- Water trucks.
Optimising the Opportunity
With a possible increase in work in your sector, it could be time to capitalise on this opportunity with the purchase of a new truck, an additional truck or expand the types of trucks in fleet to better suit the work on offer.
Jade Truck Loans can assist with cheap truck finance on the full range of commercial finance products:-
- Truck Leasing
- Chattel Mortgage for truck & trailer financing
- Commercial Hire Purchase
- Rent to Own truck finance
As professional and highly experienced lenders, we provide special services to assist businesses facing issues in accessing finance:-
- ABN Only Truck Loans
- Low Docs and No Docs Truck Loans
- Bad Credit Loans
Use our truck loan calculator for rough estimates on repayments for the truck you’re considering, or just give us a call and let your Jade consultant source you a quick quote.
Putting the Scheme in Perspective
The Federal Government has introduced several measures, including the HomeBuilder Scheme, to support businesses and boost the economy during the COVID-19 recovery. When looked at independently, the HomeBuilder Scheme presents an appealing option for many individuals in various aspects.
But taking in context with some of the other measures and an even more appealing scenario emerges. Specifically, consider the taxation benefits your business may realise through the purchase of a truck via the Instant Asset Write-Off measure. If you are interested in this aspect, Chattel Mortgage would be the most appropriate form of finance.
We sure there are plenty of other scenarios where this extension to the HomeBuilder scheme presents benefits and opportunities to truck owners and operators. We hope this angle has been helpful and as always, we’re staying across government announcements that may pose a benefit to our customers.
To move forward with a truck purchase, contact Jade Truck Loans on 1300 000 003 to discuss finance and source a quote.
DISCLAIMER: THE INFORMATION WHICH HAS BEEN PREPARED AND PRESENTED IN THIS ARTICLE IS INTENDED FOR GENERAL INFORMATIVE PURPOSES ONLY. IT IS NOT IN ANY WAY MEANT TO BE USED AS THE ONLY SOURCE OF INFORMATION OR ADVICE IN REGARD TO FINANCIAL DECISIONS. IF YOU CONSIDER YOU NEED GUIDANCE, WE RECOMMEND YOU SEEK OUT A PROFESSIONAL FINANCIAL ADVISOR. THE DATA, DETAILS, SPECS AND OTHER MATERIAL PRESENTED IS SOURCED FROM VARIOUS SOURCES AND NO LIABILITY IS ACCEPTED FOR ERRORS AND MISINTERPRETATIONS IN PRESENTING THIS INFORMATION.