Australia instant write-off initiative playing key role
Australia's infrastructure and construction sectors have maintained their strength during a tumultuous 2020 and will continue to play a crucial role in Australia's economic emergence out of COVID-19.
Ritchie Bros. has partly attributed the sector's strong activity, investment, and transaction levels to the government's instant asset write-off initiative. This initiative resulted in an increase in asset write-offs from $30,000 to $150,000 at the onset of coronavirus, as well as an expansion of access that included all businesses with an annual aggregated turnover of less than $500 million.
Finlay Massey, Sales Director, Ritchie Bros., said the government initiative has played a key role in equipping the nation to deliver a list of projects being brought forward in 2020.
"We know from experience that June sees increased spending from buyers of machinery and equipment as they seek to make the most of tax advantages prior to the end of the financial year," said Mr. Massey.
"With the added incentive of the instant asset write-off, we're expecting to see even more market activity in the coming weeks. The Ritchie Bros. end-of-financial year auction, for example, is tipped to attract a record number of bidders."
"We have capacity to take on more"
John Kilgour, Chief Executive Officer, Civil Contractors Federation Victoria, said the civil construction sector is ready to lead Australia's economic recovery coming out of COVID-19.
"These industries are already the backbone of the economy, and they have the capacity to take on more civil infrastructure projects and employ thousands more workers to support Australia," said Mr. Kilgour.
Mr. Massey added, that despite the strong projects pipeline, positive intent, and increased investment in equipment, businesses are being held back by traditional financing options.
"Ritchie Bros. Financial Services' more nimble solutions is appealing to buyers and we're seeing a surge in demand," said Mr. Massey. "Coming into tax time, we're working hard to provide financing solutions within days, so buyers have access to the finance they need, when they need it."
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