Ensure your business is taking full advantage of what’s on offer this new financial year to help drive your business forward.

With the new financial year approaching, it’s the perfect time to wrap your head around what’s on offer to assist your business. And with the economy still recovering from the pandemic, there is likely to be plenty of learnings from the last financial year that can inform your new strategy.

Both state and federal government currently have a range of information and resources available to businesses to help you get on top of your cash flow.

Not sure where to begin? We’ve gathered some information on a few programs and incentives to help you get started.

Tax Incentives

If your business earns less than $50 million, you will see your company tax rate reduced to 26% for the 2020-21 year and 25% for the 2021-22 year. The rate for any businesses earning more than $50 million in annual turnover will remain at 30%.

Some states also have payroll tax incentives in place.

NSW – The reduced payroll tax rate of 4.85% will continue into the 2021-22 financial year, with the tax-free threshold at $1.2 million.

VIC – Businesses with a payroll of up to $10 million will have the opportunity to defer their payroll tax for the 2020-21 financial year.

SA – Any businesses with wages up to $4 million will have their payroll tax waived from April to June 2021.

Temporary Full Expensing

The Australian government recently announced in the 2021-22 federal budget the extension of the temporary full expensing scheme for a further 12 months.

Eligible businesses with an aggregated turnover of less than $5 billion can deduct the full cost of any eligible depreciating asset that they first use or install ready for use by the 30^th of June 2023. 

The scheme has already seen businesses increase their spending on machinery and equipment at the fastest rate in nearly seven years and aims to accelerate the speed of depreciation and lower businesses tax bills, helping to increase their cash flow.

More information can be found here.

Business Competitiveness Program (VIC Only)

This program will assist both small and medium-sized manufacturers in Victoria to expand their manufacturing operations and implement new technology and processes that provide the foundations for generating sustainable new local jobs.

Grants are available for up to 33 per cent of project expenditure, with a maximum grant amount of $500,000. These will be allocated on a competitive basis, and projects will need to be completed within 18 months of receiving the grant.

More information can be found here.

Small Business COVID-19 Adaption Grant Program (QLD Only)

The Queensland government have extended the Adaption Grant Program for businesses in regional Queensland as a part of the COVID economic recovery. Eligible businesses may apply for grants ranging from $2,000 to $10,000 to adapt and sustain their business operations.

More information can be found here.

Export Assistance Grant (NSW Only)

Export businesses in New South Wales may be eligible for funding of up to $10,000 from the New South Wales government to assist in accessing global markets.

More information can be found here.

To maintain healthy growth within your business, a positive cash flow is essential. Make sure you continually check your federal and relevant state government resources for further information about measures and possible relief you may be eligible for to help drive your business forward.

Are you looking to purchase or upgrade any commercial assets to support your growing business? Or generate working capital to provide a cash flow boost? Morris Finance offers cost-effective and strategically structured business finance solutions to help take your business to the next level. Contact us today on 03 5223 3453 to discuss your options.