Unsure about how Federal Budget 2022 relates to your business? Here’s what solar businesses need to know.
1. Instant Asset Write-Off program will continue
The Government will commit to an ongoing, simplified Instant Asset Write-Off program for eligible SMEs until 30 June 2023. Businesses with an annual turnover less than $5 billion can instantly write off assets, but the equipment will have to be installed by 30 June 2023 to claim full expensing.
Let your business customers know that they will have to act soon if they want to claim full expensing.
If your customers buy equipment on a Smart Ease Chattel mortgage plan, they’ll be able to:
- get equipment installed without needing any money upfront* and
- claim the Instant Asset Write-Off for the full value of the equipment**.
2. A boost for apprenticeships
Need to build your solar-installer team? This Budget announced it will funnel a further $365 million into its Boosting Apprenticeship Commencements scheme. The scheme subsidises half of an apprentice’s wages, up to $7000 per quarter, over their first year of employment. Smaller subsidies apply in years two and three.
Enrolments for the Boosting Apprenticeship Commencement wage subsidy are being extended to 30 June 2022. If you need fresh talent in your installation business, apply soon.
Find more information at the Department of Education, Skills and Employment.
3. Promoting digital skills
The Budget announced a new, temporary tax break for businesses that invest in new technology. Eligible businesses that spend up to $100,000 a year would be eligible to deduct $120 for every $100 they spend on services that support their digital capability.
Examples of purchases covered include: improvements to cybersecurity systems, digital tracking for livestock, digital inventory tracking systems, building online sales platforms, creating or updating websites, or investing in cloud computing, data analytics, e-invoicing or portable payment devices.
Organisations would be able to claim the tax break on purchases made between now and 30 June 2023. If you want to invest in digital capability for your own business, keep accurate records and speak to your tax advisor about eligibility*.
Got business customers that want to invest in smart tech like digital tracking for livestock or digital inventory tracking systems?
Buying the digital technology on a Chattel mortgage plan means they could get it installed without needing any money upfront* – and claim the tax break** too!
Contact your Account Manager for more information or call us on 1300 795 695.
*Subject to credit criteria and approval
**This article has been prepared for informational purposes only. Always consult your own tax, legal and accounting advisors before engaging in any transaction.