The 2020-21 Federal Budget delivered on Monday includes a number of opportunities for freight companies to take advantage of to grow their business.
The first is the opportunity for freight companies to upgrade their fleet with the new temporary full expensing measure. The Government is introducing temporary full expensing of eligible depreciable assets for businesses with turnover up to $5 billion from 6 October 2020 until 30 June 2022. The measure will be available to around 3.5 million businesses (over 99 per cent of businesses) that employ around 11.5 million workers. This builds on the existing instant asset write-off introduced earlier this year.
Secondly, companies with a turnover up to $5 billion will be able to temporarily, up to June 2022, offset tax losses against previous profits and tax paid in or after 2018-19. This will help companies that were profitable and tax paying, but now finding themselves in a loss position due to the COVID-19 pandemic. By allowing them to access their losses earlier, by way of a cash refund, it will provide a needed cash flow boost to keep their business running, retain their workers and invest with confidence in the future.
The JobMaker Hiring Credit will also be available to employers for each new job they create over the next 12 months from 7 October 2020 for which they hire an eligible young job seeker aged 16 to 35 years old.
For each eligible employee, employers will receive for a period up to 12 months $200 a week if they hire an eligible young person aged 16 to 29 years, or$100 a week if they hire an eligible young person aged 30 to 35 years.
In addition, the Government has announced:
- An additional $2 billion for road safety, building on the existing $500 million for targeted road safety works
- $5.5 million to establish a National Road Safety Data Hub
- An additional $1 billion for Local Roads and Community Infrastructure Program
- $327.5 million for the Perth City Deal.
NatRoad welcomes the investment being made in the road freight industry and the support for road freight companies. For full details on the Federal Budget 2020, please see the Australian Chamber of Commerce and Industry website.