According to data from CommBank, small businesses have shown a significant increase in electric vehicle financing, with a surge of 346 percent in the past year. The data from Commonwealth Bank of Australia indicates that Australian businesses are investing more in environmentally friendly assets despite economic uncertainties. Business spending on electric vehicle fleets grew by over 325 percent, while spending on hybrid vehicles increased by 120 percent compared to the previous year. CommBank’s business bank also witnessed a 22 percent growth in total vehicle and equipment financing during this period.
The data suggests that small businesses are leading the way in green investments, with electric vehicle financing in this sector skyrocketing by 346 percent. Manufacturers have also increased their investments in new assets such as manufacturing lines, forklifts, and scissor lifts by 24 percent. Funding activity from regional manufacturers and agribusinesses on new assets saw a 42 percent increase, particularly in purchases of machinery for food manufacturing.
Grant Cairns, CBA’s Executive General Manager of Business Lending, noted that businesses are focusing on energy transition and improving energy efficiency through equipment upgrades and the adoption of electrified transportation. He mentioned that government rebates and subsidies are driving this shift towards green investments, and businesses are looking for ways to reduce costs and demonstrate returns on investment.
Cairns expressed optimism that small businesses will continue to leverage asset financing to maximize cash flow, especially with the extension of the federal government’s instant asset write-off scheme. The government’s support for small businesses through initiatives like the instant asset write-off could further propel the trend of green asset financing.
Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, emphasized the importance of providing certainty to small businesses regarding tax breaks announced in the budget. He highlighted the need for predictability and certainty to enable small businesses to plan investments that enhance capacity, productivity, and drive innovation.
The article also mentions the small business energy incentive and tax incentives for energy efficiency upgrades, emphasizing the need for encouragement and certainty in these tax breaks to stimulate enterprise and investment in new technologies. Overall, the data indicates a positive trend towards greener investments and energy efficiency upgrades among Australian businesses. Please rephrase this sentence.
Source link
