In the midst of the demanding COVID-19 landscape, any positive advantage for businesses, no matter how modest, is received with open arms. While the Federal Budget serves as a significant gauge of potential strategies accessible for businesses to reap benefits in the forthcoming year, additional channels of encouraging news and prospects also exist for business proprietors.
We stay across news and developments that may impact or benefit our business truck financing customers so we fully appreciate your operating conditions and can tailor finance to suit your needs. We bring you a selection of pluses, positive signs and points of interest that may motivate you to act on your truck purchasing decisions.
Victorian State Budget
With Federal Budget brought down in early May, focus now turns to see what the individual states and territories will be offering up in their annual budgets. Victoria is one of the first to deliver with Treasurer Tim Pallas making the Budget announcement on 20 May 2021. With opening remarks in his budget speech stating that the state was now on the road to recovery, a snap lockdown was ordered just 7 days later following a serious coronavirus outbreak in Melbourne.
In response to multiple clusters, outbreaks, and periods of lockdown, the Budget places emphasis on supporting vulnerable sectors. This includes allocating extra funds for a comprehensive initiative aimed at rejuvenating Melbourne's central business district, introducing wage subsidies, organizing events, and bolstering mental health services. Notably, for small businesses, a significant achievement is the favorable adjustments to payroll tax regulations.
The threshold for payroll tax, where no tax is applicable, will see an increase from $650,000 to $700,000. This change is anticipated to benefit around 42,000 businesses across the entire state. Furthermore, businesses in regional areas of Victoria will witness a reduction in their payroll tax rate, from 2.02% to 1.21%, commencing from July 1, 2021.
Truck operators will also no doubt be pleased to hear of further road upgrades to the tune of $265 million. The planned works include improvements for Calder Park Interchange, Calder Freeway section, Bulla Bypass planning, local bridge upgrades, improving access for heavy vehicles on regional roads and early works on the Mickleham Road upgrade.
For full details on the Victoria State Budget
Fuel Security Announcement For Trucking
The Trucking Association has claimed the announcement on fuel security by the Federal Government as a win for the sector. The announcement was made by the Prime Minister on 17 May and delivers on the commitment to maintain Australia’s self-sufficiency in refining. The Australian Trucking Association had long been campaigning for fuel security and the Federal Chamber of Automotive Industries has also engaged over a long period with Government on improving fuel standards.
The unveiled package encompasses assistance to refineries through Government funding, as opposed to relying on a levy on road users. Furthermore, initiatives are being implemented to enhance the caliber of fuel. These strategies encompass advancing fuel quality enhancements from the current 2027 timeline to 2024; collaborative investments with refineries to establish infrastructure supporting the production of low sulfur fuel; and expediting the assessment of diesel and petrol standards. The ultimate goal is to formulate an Australia-appropriate standard equivalent to Euro-6 standards.
The Fuel Security Bill is due to be introduced into the Federal Parliament shortly. More information here.
Online Tuck Show
If these encouraging indicators are steering you towards considering a new truck purchase, and you happened to miss the opportunity to attend the Brisbane Truck Show, there’s no need to fret. You can now watch the event online, as a virtual rendition of the show has been made accessible. This digital version offers immersive walkthroughs of key exhibitors’ displays. Noteworthy features include the ability to virtually step into the truck cabins and closely examine the intricate interior details of various trucks.
Head to https://truckshow.online/ for a limited-time run.
If you see a model of interest head to our free online truck loan calculator to work up possible repayment estimates.
Interest Rates on Hold For Truck Financing
In our sphere of interest, excuse the pun, the RBA has continued to hold interest rates at the current low levels over recent months. Despite commentary, suggestion and predictions that rates could and should rise to counter the hot housing market, the RBA remains steadfast with intentions. Those being to hold rates until unemployment is around a lower than 5% rate and inflation is in the range of 2-3%.
While the economy has demonstrated relatively favourable performance in comparison to several other nations, thanks to measures adopted in response to COVID-19, the late-May lockdown in Victoria has the potential to introduce an unexpected element to prior predictions. This state has already borne the brunt of extended and repeated lockdowns, and its significance in contributing to the national economy is widely recognized.
The cessation of the Job Keeper program didn't lead to considerable spikes in unemployment, as per official statistics. However, discernible effects have correlated with the timing of previous lockdowns, fuelling anticipation regarding the outcome of the present situation.
If you find yourself amidst a lockdown and are currently in the process of applying for a truck loan or intend to initiate an application, the consultants at Jade Truck Loans are at your service. They are available to offer assistance via phone or through our online resources.
EOFY –Time to Capitalise on Tax Deductions
We’re on the home stretch to 30 June so if you have plans to buy a new truck to take advantage of temporary full expensing, IAWO or other tax benefits in this financial year, it’s time to act. Contact Jade Truck Loans to discuss your loan requirements.
Contact 1300 000 003 to receive a quote on your heavy vehicle lending.
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