Businesses across the country are purchasing new equipment and vehicles in record numbers, as companies big and small embrace the strongest market conditions seen in years, according to NAB data.
And with the end of the financial year approaching quickly, we're expecting demand for equipment and vehicles to remain strong, with businesses looking to invest in their future by taking advantage of the federal government's temporary full expensing rules (more on that below).
NAB believes the demand for new equipment is the result of a bumpy 2020, when businesses were forced to 'pivot' and innovate their way through the pandemic.
And now Australian businesses are investing to build on the opportunities they uncovered.
"With business confidence at an all-time high and businesses building on things they've learnt through the pandemic, I'm not surprised that equipment sales are so high," says NAB Executive Regional and Agribusiness Julie Rynski.
The top equipment purchases Australian businesses have made according to NAB include:
- tractors up 146% year-on-year (YOY)
- irrigation equipment up 217% (YOY)
- earthmoving/construction equipment up 133% (YOY)
- forklifts up 216% (YOY)
- coffee machines up 155% (YOY)
What's that 'temporary full expensing' thing you mentioned?
Temporary full expensing is more or less an expanded version of the federal government's popular instant asset write-off scheme.
It allows businesses, both big and small, to immediately write off any eligible depreciable asset, at any cost, up until 30 June 2022.
This can help improve your business's cash flow by allowing you to reinvest the funds back into your business sooner.
But it's important to note that the asset must be installed, or ready for use, by 30 June in order to be eligible for this financial year.
Full details on business and asset eligibility can be found on the ATO's website.
Want to explore your finance options for a new business asset?
Being able to immediately write off assets is all well and good, but if you don't have access to the funds to purchase them, the scheme won't be of much use to you.
So if you'd like help obtaining finance to make the most of temporary full expensing for your business, get in touch with us today.
We can present you with financing options for the scheme that are well suited to your business's needs now, and into the future.
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