On Tuesday 29 March this year, Treasurer Josh Frydenberg delivered the Federal Budget for the 2022-23 financial year. As we’ve seen over the past few years, there was a focus on business - and the construction industry was no exception to this.
If you’re running a construction business, here are the key elements of this year’s Budget that may provide you with the financial breathing room you need to be able to take your operation capacity to the next level.
Infrastructure projects investment
As is always the case, infrastructure projects were a major talking point at the release of this year’s Budget. The Government has announced that there will be $17.9 billion invested in completely new infrastructure projects throughout the country. This not only creates opportunities for construction businesses but also job seekers, as there are 40,000 new roles expected to be created as a result.
This takes the total 10-year spend on infrastructure to $120 billion.
Apprenticeship wage subsidy
From 1 July 2022, there will be a new scheme called the Australian Apprenticeships Incentive System. Under this system, employers who hire apprentices from this date forward will be eligible for wage subsidies up to 15 percent for first-years depending on location and occupation. There will also be lower subsidies available in the following years as well.
Apprentices themselves are also eligible to receive allowances and support payments while they’re undertaking their apprenticeships, which has the potential to entice more people to get into the construction industry and level out staff shortages.
Reduced fuel excise
The Government has announced that due to soaring fuel costs, excise on both petrol and diesel will be halved - from 44.2c/litre to 22.1c/litre - for a total of six months, ending at midnight on 28 September 2022.
Although this isn’t specific to businesses but is rather an Australia-wide initiative, working in the construction industry does often involve a substantial amount of driving. Further, a lot of machinery and equipment runs on fuel. As such, it should have a positive effect on your total overhead costs.
Temporary full expensing
Businesses across all industries can take advantage of the Government's temporary full expensing to minimise tax payable, provided they and the commercial asset purchased are eligible within the requirements that have been set. Speak with your accountant to learn more about this scheme.
We’re here to help you grow your business
Stratton Finance has the knowledge and experience to assist businesses looking to invest in new machinery, equipment, vehicles and even staff to ensure you’ve got what you need to thrive.
After operating in the financing industry for well over two decades we’ve amassed a huge pool of lenders, providing us with access to an almost endless number of different finance packages. Which means whether you’re interested in asset leasing, chattel mortgage, commercial hire purchase or any other type of commercial financing, we’ve got you covered.
Get a quote for commercial financing online now - if you like what you see, you can then apply in less than 5 minutes.
Need some assistance with the process or after further information about our services? Call us on 1300 787 288 or send us a message via our contact page.