Australia’s 2020 Budget – how this impacts you in the equipment hire and construction industry

COVID-19 has had a profound impact not just on Australia’s health system, but the Australian economy and working community as well.

Last night, Federal Treasurer Josh Frydenberg addressed Parliament to deliver this year’s budget, also known as the Economic Recovery Plan for Australia.

Here are some relevant measures that will support the equipment hire industry:

Businesses

• Businesses with a turnover of less than $5bn:

Will be able to write off the full value of any eligible asset they purchase for their business in one year, rather than having the asset depreciate over several years.

Will be able to offset losses against previous profits on which tax has been paid, to generate a refund.

• Businesses earning $50m to $500m:

Will be able to apply ‘full expensing’ to second-hand assets of less than $150,000.

• The government will pay businesses up to $200 per week to hire young people on welfare with aim of trying to reverse the increase in youth unemployment seen during the recession.

Home Builder

• $688 million HomeBuilder scheme giving cash grants, encouraging people to renovate or build new homes.

Infrastructure

• $14 billion in new and fast tracked infrastructure projects over the next four years in every state and territory.

• $3bn towards shovel-ready projects to support further job creation and economic recovery, including for small scale road safety projects.