2020 has been a year for the ages in more ways than one. A shrinking economy brought on by the global pandemic has everyone looking at their finances and business operations in a more strategic and diligent manner than years past.
As we look ahead to 2021 with bated breath in hope of more fortuitous times, there’s a number of important considerations we feel all Australian businesses should be aware of.
1. Federal Budget 2020 – Instant Asset Write-off Scheme
In a new measure aimed at stimulating a business investment lead recovery from the pandemic-induced recession, the federal government introduced a new instant asset write-off scheme which will be applicable to 99% of Australian businesses.
In what the Government has heralded as a $27 billion expansion of the existing asset write-off scheme which has been in place since the beginning of the pandemic,1 Australian businesses will be able to claim the full value of any new eligible depreciable assets that are first used or installed before June 30, 2022.
It’s important to note how this new initiative differs from the existing scheme; there is no cap on the value of new assets that can be claimed, whereas the existing scheme has a cap of $150,000.
2. JobMaker Digital Business Plan
Australian businesses have significantly accelerated their adoption of digital technologies in a bid to pivot their operations and continue to run during the COVID-19 pandemic. The JobMaker Digital Business Plan will devote $800 million across a host of areas to help Australian businesses take further steps to adopt the digital capabilities that will enable them to maintain business continuity and grow into the future.
Typically speaking, in times of economic downturn the adoption of new and prosperous trends accelerates. So, to see the Government making a concerted effort to acknowledge the importance of enabling small and medium sized businesses to exist and thrive in the digital economy is a welcomed step in the right direction.
To see how these investments might benefit your business, you can view a full financial breakdown of where the allocated funds will be spent here.
3. Upgrade to the NBN
To leverage the true power of the digital economy it’s vitally important that businesses in every corner of the country have the infrastructure and tools necessary to take advantage of digital capabilities. As every facet of life seemingly went digital at some point throughout the year the Government has moved to further facilitate the digital shift with a $4.5 billion investment to further distribute the NBN out to regional and remote areas.2
This investment further highlights the growing importance of the digital economy and its role in driving Australia’s digital future. With the NBN network as the foundation, more Australian businesses will be able to leverage enterprise grade networking solutions that can foster new digital transformation initiatives, while also ensuring business continuity and fortuitous growth opportunities.
If you’re a regional business and wondering what this upgrade might mean for you and future digitisation opportunities, please don’t hesitate to get in touch with us.
4. Pitfalls of Software Licensing
One thing we have been noticing in conversations with our existing customers is the pitfalls of software licensing. Off the top of your head, can you quickly account for each and every software license you currently pay for? It’s unlikely, let’s try another one. Can you say with confidence that you are leveraging all the software you consume for a tangible and justified return on investment?
The reason we ask is because as much as 38% of software licenses can tend to go unused across a business, with some apps going to waste in as many as 67% of installations.3 Staff turnover, changing delivery priorities and new and more streamlined SaaS applications are all reasons for licenses to go unused, but it’s costing businesses big. And at the same time, many businesses aren’t aware of the full suite of tools and apps they have access to. To ensure you’re not wasting money on unused licenses, or missing out on potentially business-altering software, it’s critical to have full visibility across your software stack, with knowledge of each and every license you’re paying for.
Talk to our friendly team about a software audit and cost evaluation of your current circumstances and requirements today. You could be in line for some significant savings.