EOFY 2021: Securing Australia’s recovery

With the end of the financial year fast approaching, now is the time for strategic business and tax planning. The Australian Budget 2021-22, Securing Australia’s Recovery, maintains the momentum of Australia’s economic recovery from COVID-19. Delivered in May, the budget emphasises that the greater adoption of digital technology will be an important driver of employment, wages and productivity growth and help secure Australia’s recovery. A summary of the initiatives are as follows.

Business tax incentives

Instant write-off extension

Due to expire in June 2022, Treasurer Josh Frydenberg announced a 12 month extension until 30 June 2023. Businesses with a turnover or income of less than $5 billion can immediately write-off the cost of assets they first use or install.

Cutting taxes for small and medium businesses 

The Government will deliver more than $16 billion in tax cuts to SMBs by 2023-24 with around $1.5 billion flowing in 2019‑20. This includes reducing the tax rate for small and medium companies, from 30 per cent in 2014‑15 to 25 per cent from 1 July 2021.

Extending tax incentives for businesses that invest 

The Government is extending the loss carry-back scheme for an additional year to June 2023, enabling businesses experiencing COVID‑19 related supply disruptions, or considering investing in projects requiring longer planning times, to take advantage of the incentives; with a turnover of up to $5 billion. 

Growing the Australian digital games industry 

The Government will support the growth of Australia’s digital games industry by cutting the cost of game development in Australia. Digital game developers will receive a 30 per cent refundable tax offset, capped at $20 million per year, for qualifying Australian games expenditure. 

Digital economy strategy and investments

Consumer Data Right

The Government is making significant investments in digital infrastructure to support Australian businesses and workers with a $111.3M commitment to accelerate the roll out of the Consumer Data Right (CDR) across the economy, starting with banking and energy, then moving to telecommunications. This supports the Government’s ambition to be a leading digital economy by 2030, creating new data-driven jobs, products and services and empowering consumers to benefit from their data held by businesses. 

Artificial Intelligence 

The Government is investing over $100M in initiatives to build the digital skills of Australians to meet the needs of the modern Australian workplace. Australia’s research and industry capability in artificial intelligence will be boosted with $124.1M, including a National Artificial Intelligence Centre led by CSIRO’s Data61. Small businesses are being supported to adopt digital technologies through a $12.7M expansion of the Digital Solutions – Australian Small Business Advisory Service. A further $15.3M will be used to drive business uptake of e-invoicing, which can deliver up to $28.2 billion in net benefits over 10 years.

For more information on the Australian Budget, visit the budget website.

Infographic source

How we can help you 

The way that technology is sold and bought has fundamentally changed and customers have prioritised the flexibility to adjust during unprecedented times. We are committed to supporting partners in maintaining profitability and business continuity this EOFY and beyond. 

To support partners in growing their business, we work hands-on with our vendors to enhance our offerings across trends like productivity, collaboration and security space to support their business continuity plans.

Synnex’s Technology-as-a-Service (TaaS) is a powerful finance program enabling partners to wrap up any solution deal on a monthly OPEX model. This secures recurring revenue for your business to increase your stickiness in the market, while providing simplicity to your customers with a single monthly payment covering their infrastructure, software, support and services needs. 

“We fast tracked the phase 2 enhancement of our TaaS program to make available several financial options at a time when our partners’ needed it most. It helped put less pressure on their cash flow and put cash back into the hands of their customers”, says Kuo Yoong, Head of Cloud, Synnex Australia.

Detailed in our April What’s new blog, Synnex TaaS phase 2 provides partners with different options of financial providers they wish to partner with. Partner benefits include: 

✔️ No restrictions on the percentage balance 

✔️ Receive 1%* rebate on the value of the approved finance 

✔️ Finance for your own business 

✔️ Build recurring revenue protection from your support and services 

✔️ No balloon payments. One dollar buyback fee at the end of the finance period 

✔️ Unlock the remaining value of redundant equipment with equipment buyback services 

*% may vary.

Contact us today to learn more on how you can structure a TaaS contract.

“By maximising digital technology, this has enabled us to work more efficiently with our partners and providers amid challenges in the industry. Where a 1:1 or 1 to many face-to-face meeting, once upon a time ago, took time to coordinate, we are now able to get the right stakeholders and resources together virtually and make those crucial decisions and desirable outcomes relatively quicker”, Arthur Gimisis, Sales Director, Synnex Australia.

Strategic vendor partnerships: Best-in-class products spanning the entire technology spectrum. We drive partner success through our expert on-the-ground vendor knowledge; leveraging our specialised pre-sales solutions teams and access to programs, tools and resources that support to maximise your profitability with our hardware partnerships. 

“We have a comprehensive business continuity plan in place to ensure we forecast ahead to avoid any stock shortages that could impact our partner’s business and their customers. Our business is about more than a sale and about the customer journey – full end-to-end services from scoping, consultation, recommendation and installing to pre-configuring, zero touch deployment and life cycle management”, Gimisis details.

See our current EOFY incentives by logging into your Synnex account today.

ISV bundling

Vendors are putting greater emphasis on enhancing their partner network with ISV solutions that assist in accelerating the co-sell engine to harness partner scale and up-skilling. As the market continues to expand, bring additional value to standard product suits for higher profit and reduce churn with a full suite of integrated complementary solutions.

Synnex configuration services

Get access to a dedicated team who provide configuration services to both customer and enterprise portfolios in tandem with our Sales and Product Departments. Operating from our Melbourne logistics centre, we provide a full range of configuration services to the channel from hardware installations and imaging, to device pre-configurations and onsite deployments and asset recovery services.

The partner opportunity: You can create a complete managed services ecosystem by utilising our as-a-service program that combines hardware, software, cloud, configuration services and finance all under one banner. 

Have questions you’d like answered? Leave a comment below and our team will be in touch. 

Important notice: Any advice and information in this publication is of a general nature only published on 8 June, 2021. Synnex Australia is not a registered tax agent. Any general tax information provided in this blog is intended as a guide only and based on our general understanding of taxation laws.