Three Leicestershire sisters are following in the footsteps of their father and launching their own plant hire business.
Hollie, Jade and Ruby Finnegan have launched FinniGroup, having spent years supporting dad Paul Finnegan with his Leicester-based plant hire firm Joinpoint.
Based close to the city centre, Joinpoint has a fleet of 45 dump trucks, more than 30 excavators, as well as rollers and attachments.
The sisters turned to Paragon business bank for financial support because of its long-standing relationship with their father’s business.
Over the years it has helped Joinpoint buy new equipment which has been used for big building projects from work on the NEC in Birmingham, to work on the M42, and at the National Space Centre, in Leicester.
One highlight was working the digger that retrieved the body of King Richard III from under a car park in Leicester eight years ago.
Hollie and Ruby had already established their own plant hire businesses, but decided to form FinniGroup alongside Jade, so that they could all work together.
Paragon provided a funding package worth more than £250,000 for two Bell 30E dump trucks, so that they could begin building a fleet.
Hollie Finnegan said: “Even though plant hire and construction has traditionally been male dominated, growing numbers of women are getting involved.
“Everyone we’ve met along the way, from customers to suppliers, have all been lovely and encouraging.
“After seeing the success of our father’s business, we wanted to invest in some plant equipment ourselves and learn more about the family business.
“Paragon has been a key factor in us starting up our new joint business.
“Without this we wouldn’t have been able to start FinniGroup and we hope to use Paragon’s support more as our business grows. We knew that using Paragon was a great option for us and the best support we needed, at a rate we are comfortable with.
“Paragon provides a friendly and reliable service, and we know that the team is only a phone call away.”
Terry Lloyd, head of construction at Paragon, said: “I have worked with Paul and Joinpoint for many years, so it is great to now be supporting the next generation of his family.
“We understand not only the needs of FinniGroup but also the machinery that Hollie, Jade and Ruby are investing in, which makes a real difference to a customer.”
As of today, farmers can instantly write-off the full value of machinery purchases, thanks to changes announced in the Federal Government’s COVID-19 recovery Budget.
Farmers who purchase machinery can immediately deduct the full cost to generate a tax loss
A machinery dealer says the new arrangement will prompt people to make purchases they were putting off
An accountant has warned farmers should look at the implications beyond the current tax year
Previously, a portion would have been tax-deductible in the first year, and the rest would have been depreciated over future years.
The change is likely to encourage businesses to bring spending forward and invest more now.
This is because the full amount of an asset can now be claimed as a tax deduction upfront, in the first year it is used or installed, reducing the amount of tax a business will pay.
The measure is available to all businesses with a turnover of up to $5 billion.
The Government’s instant asset write-off cap was increased from $30,000 to $150,000 at the onset of the coronavirus but had been set to end on December 31 this year.
The Government will also introduce a ‘loss carry-back measure’, allowing losses made to June 2022 to be offset against profits made in or after the 2018-19 financial year.
This means farmers could purchase machinery and immediately deduct the full cost to generate a tax loss, which could result in the refund of tax paid in the past two financial years.
Machinery sales spike expected
Dealers are preparing for increased interest in new machinery in the wake of the announcement.
Patrick Fox, regional operations manager for the Wimmera with John Deere dealer Emmetts, said he thought there would see more interest in spending into next year.
“This is going to spark some enthusiasm to complete the purchase they may have been thinking about,” he said.
Timing is ideal
Mr Fox said, in areas that were enjoying a favourable season, the announcement had come at the ideal time.
“It’s definitely fortunate timing, especially with the forecast of rain over the next couple of days, that’s going to go a long way to helping finish grain crops,” he said.
“And for us, it is perfect timing, because our early-order programs were released recently for most product lines.
“For those product lines that we generally sell around October, November, December, there’s definitely going to be a flurry of activity for our sales teams.”
‘We can increase our capacity’
Apple and cherry grower, Fiona Hall, of Orange NSW, said the instant asset write-off scheme had already helped her business.
“It has allowed us to install a new grader this year, and to extend our packing shed,” she said.
“And it means that we can increase our capacity for the increase of planting.”
Things to watch out for
Rural accountants have welcomed the news but have urged farmers to proceed with caution.
Cherese Mackley, a partner at BCH Accountants in western Victoria, said farmers should not look at this tax year in isolation.
“What we need to consider is the implication to future years’ taxable income,” she said.
“For example, say a farmer buys a header for $700,000, the business would get a $700,000 tax deduction. However, if in three years it was traded on a new model for $500,000, that would increase the taxable income in three years by half-a-million dollars.
“You need to take advantage of the tax legislation that’s passed, but at the same time be careful that you’re not spending to buy a tax deduction you don’t really need.”