Instant Asset Write-Off Extension Announced

With Australian small businesses across many industries feeling the pressure of the economic downturn triggered by COVID-19, the extension of the governments Instant Asset Write-Off scheme is a welcome announcement. The scheme was due to end on EOFY 31 June but has been extended until the end of 2020.

Originally offering an immediate deduction with a threshold amount for each asset of $30,000, the program is designed to support small businesses and encourage them to continue to invest in their own growth and expansion. At the beginning of the COVID-19 pandemic, the threshold was extended to $150,000 as an incentive for more businesses to take part. Eligible businesses are those with an aggregated turnover of less than $500 million, however you can check your full eligibility here.

Whilst some advocates are pushing for the scheme to be made permanent in order to help bolster the growth of the counties small business sector, others are highlighting the $300 million cost of just extending the scheme another 6 months.

The government states that the extension will help support over 3.5 million small businesses who purchase new or used assets over the period. By enabling business owners to deduct the asset value in one hit rather than spacing it out over several years, cash flow and growth timelines can be improved. However, there is speculation of the schemes success as research suggests that many operators do not have the initial capital required to purchase the assets.

However, if this is the case there are several options which will allow small business owners to take part in the scheme. Utilising equipment financing is an option that allows for the immediate purchase of assets without having to dip into the businesses cash reserves. Common options are Operating Lease and Chattel Mortgage solutions.

Under a Chattel Mortgage loan, borrows own the assets from the outset and pay off the value over a set term. This allows business owners to depreciate the assets on their balance sheet, as well as have the potential to claim a tax input credit for any applicable GST on the purchase. Whereas under an Operating Lease the financier owns the equipment over the term of the loan, and at the end a residual value is paid to transfer ownership. The option is generally 100% tax deductible and popular among small business operators.

The extension of the Instant Asset Write-Off scheme is an opportunity for small businesses to invest in their growth and recovery post COVID-19. Whether owners are looking to invest in new technology, operating equipment or machinery now is a great time to consider purchasing.

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Wellbeing: A Field Manager Self-Check

A role as a field management can be dynamic, challenging and rewarding. However, when working in the field, managing your own mental health is an important part of the job. Not only does it help you maintain a healthy work-life balance but is a vital element in your ability to achieve success in your role. Often, those working in management rolls can ignore their own stress or neglect their wellbeing when addressing the challenges of their franchisees.

Field work, case work and people management can be stressful careers, and those who work in such roles need to ensure they are taking time to undertake a self-check and remain aware of their own wellbeing. This may come in many different forms, depending on how you experience stress and what helps revitalise you. Common stress responses include physical manifestations such as headaches, fatigue, difficulty sleeping, and muscle tightness. However, stress can also display itself through behavioural symptoms irritability, anxiety, disengagement, and inability to concentrate.

Field managers are often excellent at picking up these signs and symptoms in their franchisees yet may struggle to identify them within their own behaviour. Dealing with franchisees who may be doing through a period of distress can be emotionally draining for field managers. Often, people may take on the problems and stresses of their franchisees at the cost of their own mental health.

In a recent FRI breakout session, the Cashflow It Group team gained some valuable insights from field managers on how they maintain their energy and manage the challenges they face everyday in their role. There were some clear trends, however it is important to consider that what works for one person may not be right for you.

Traditional self-care activities such as daily exercise, meditation and mindfulness are all popular choices. There were however some more unique responses such as learning new skills to share with franchisees, collaborative work projects, and future planning. These activities can help build more personal connections with franchisees and refocus thoughts towards more optimistic times ahead.

No matter how well you manage stress, it is important to take the time to step-back and undertake a wellbeing self-check. Try to consider if you are placing your wellbeing at the forefront of your priorities, and if not, carve out some time in your schedule to dedicate to self-care.

 

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