Is your SME ready for the new financial year?
As SMEs continue the reboot after the challenges of 2020, the new Federal Budget announcements are sure to make the recovery easier with more financial help on its way. Below are 3 salient considerations that can help optimise 2021 and beyond for your SME.
Treasurer Josh Frydenberg has unveiled the $35 billion cashflow boost program in aid of stimulating non for profits and businesses alike. The program is set to provide payments to SMEs between $20,000 and $100,000 with a relatively low barrier for eligibility.
For instance, if your SME has held an ABN on 12th March 2020 and continues to be active, you have a total turnover less than $50 million or made eligible payments (salaries, directors fees, compensation et al) that the business is required to withhold from, then you are poised to receive the boost.
As the program is designed to reconcile any losses made through past eligible payments or to remedy hardship endured during the pandemic, there is a great opportunity here to upgrade your SME. Grow Finance can help you capitalise on the SME-first budget approach with tailored Asset Financing that will allow you to invest new technology, transportation or equipment that will enhance your competitiveness.
They are a reputable and leading-edge finance team that can help you strategically invest the funds that may have been spent reconciling last year’s shortfalls before the announcement of the 2021 cashflow boost. A quote only takes minutes and gives you a greater understanding of how to enter the new financial year with confidence.
Personal income tax cuts
The Federal Government has also announced an extra $7.8 billion in tax cuts for the 2021-2022 financial year. Not only will this provide relief to the hip pockets of Australians earning between $37,000 (relief of up to $510) and $126,000 (relief of approximately $2,500) but is estimated to boost the overall GDP by $4.5 billion in 2022-23 with an additional 20,000 jobs created. With such focus on creating jobs and cutting tax to increase discretionary spending, your SME can feel confident that there have been tangible measures in place to remedy the hardship of last year.
Moreover, the tax relief is also geared towards reinvesting your SME and whether that’s in technology, insurance or new job creation, accessible financing options are available for anyone looking to capitalise. For instance, Grow Finance offers tailored business loans that allow you to meet ongoing cash commitments such as wages while investing in new arms of the business. With extra money in the hip pocket piggy-backed with a budget hellbent on employment and up-skilling, there is a genuine opportunity for Growth in the new financial year whereas a year ago survival may have been the highest priority.
Boom time for tradies
Perhaps amongst the most promising long-term announcements, the Federal Government has pledged $110 billion over 10 years towards infrastructure projects. This is tantalising for tradespeople both at the apprenticeship and SME-owner lever. SMEs are set to revel in the $15.2 billion that has been allocated to rail and road upgrades as each require significant amounts of labourers, engineers and skilled trades.
Best place to start?
If the federal budget announcements signal anything it’s that Australia is looking to rebuild with gusto and opportunities are aplenty. When navigating these announcements in relation to your SME, Grow Finance is ready to deal directly with you in a quick, thorough and risk-adjusted manner to help you translate your optimism into a real-word outcome with tailored financing solutions for your unique situation.