NEWS

Economic Stimulus Package: What You Need To Know

Thinking of investing in manufacturing equipment? Planning to upgrade your cartoning machines and leaflet feeding/inserting systems?

You could be eligible for tax concessions thanks to the Australian Government’s $17 billion economic stimulus package for coronavirus. According to the Australian Government, the package has been designed to ease the economic impact of the Coronavirus (COVID-19) which has been officially declared a global pandemic by the World Health Organisation.

Announced on Thursday March 12, the stimulus package includes tax breaks and subsidies for small businesses over the next four years. Three-quarters of the $17.6 billion package is directed to businesses, including a $6.7bn cashflow payment for employee wages, $4bn for new investment incentives, $1.2bn to support apprentices, and $1bn for the more hard-hit sectors, like tourism.

For manufacturers and food processors, as for any small-to-medium business owners, the big news is the huge expansion of the Instant Asset Tax Write-off scheme.

Let’s break it down

What’s the Instant Asset Tax Write-off?

Launched in the 2015 Federal Budget, the Instant Asset Tax Write-off scheme initially meant that any small business with turnover of less than $2 million could purchase assets up to the value of $20,000 and get an immediate tax deduction for the assets, rather than having to depreciate them over the following years.

The limit applies to each individual item, and business can use it multiple times for multiple assets.

Last year, the scheme was expanded to cover assets up to $30,000, with the revenue threshold for accessing the write-off raised from $10 million to $50 million.

Now, with the economic stimulus package, the Government has expanded it even further.

Introducing the new expanded scheme

Under the expanded scheme announced on March 12:

  • The write-off has increased from $30,000 to $150,000.
  • It is now available for businesses with an annual turnover of up to $500 million, instead of $50 million.

This means assets up to a value of $150,000 can be completely written-off for tax in the current year provided that the purchase is made on or before June 30, 2020.

The good news is that the measure is still available for the purchase of new or second-hand assets, so you can invest a wide range of business-related assets and obtain an immediate tax deduction.

For assets that do not qualify, there’s an additional incentive available in the following tax year, which allows businesses to claim up to 50% of the purchase price in FY21 as a tax write-off.

The remaining 50% must be written off in future tax years using normal depreciation rules.

Think of it as an accelerated depreciation deduction.

This is available provided that:

  • The purchase is made before June 30, 2020
  • The business making the purchase has an annual turnover less than $500 million
  • The asset is “new”

What can you buy?

When we talk about assets, we mean an asset used in a business that has a limited effective life and is expected to decline in value over the period you use it. This could be vehicles, office equipment and furniture, through to manufacturing equipment. Land, computer software, and items of trading stock are not depreciating assets.

For manufacturers and food processors, this is a brilliant opportunity to upgrade inefficient and outdated equipment or invest in those automated solutions that you’ve been thinking about – machinery that will help you drive efficiencies, improve quality, save costs and ultimately boost your bottom line.

If you’re thinking about investing, start by doing some research into the right labelling, coding, marking and vision inspection equipment for your business.

Remember:

This is not a grant or allowance – it’s a concession. Don’t rush out to buy assets (especially large investments) before checking the numbers and working out how the tax deduction will benefit you.

Recap

The instant asset write-off has been extended to more businesses, for more assets.

This is a huge win for Australian manufacturers and food processors. Now is the time to consider how you will use the scheme to invest in equipment that will help your business grow.

Read More...

Your Guide to Buying an Automatic Cartoning Machine

Automatic cartoning machines have revolutionised industries across the world. Since their invention, cartoning machines have helped countless businesses streamline their production lines to meet the market’s high demand for their goods.

Cartoning machines have since become an integral part of businesses’ operations and growth. For companies with high-speed production lines, having the right machine eliminates time wastage and allows for optimised production. For growing businesses, upgrading to automatic cartoning machine significantly improves production processes, allowing businesses to supply more goods and expand operations.

Emphasis must be placed, however, on having the right machine. Despite the numerous benefits of automatic cartoning machines, relying on equipment that does not suit your production’s process and goals could be a waste of investment and running costs.

To help you find the best machine for your operations, let these five steps guide you:

Set a budget

Establishing a budget goes beyond determining what your company can afford at present. The process of setting a budget urges you to look at your operation’s present costs as well as your objectives for return on investment. By determining these figures, you can set a budget range that could prove economically feasible.

Set the product as the main determinant

In numerous cases, the product dictates the type of cartoning equipment necessary for the job. Granular and loose pieces like cereals and detergent powder, for example, require vertical style cartoning equipment. There are also cases where the desired presentation for the product dictates the most suited equipment. Ready meals, for instance, are packed best with wraparound cartoners while products such as coffee capsules work best with end load cartoners.

Determine the speed required

This is one of the hardest steps for many buyers. Many businesses will approach a supplier asking for the fastest-acting machine in their budget range and end up with a product that is either slowing down or over-killing their project.

For online packaging processes, compute your required speed by calculating the maximum rate it takes to create a product, divided by the number of units that go into a carton. For offline packaging, calculate the number of cartons per minute required by considering the daily, weekly or monthly box quota.

You can compute for the possibility of increasing the volume of your products, but be careful not to overestimate and wind up with a machine that is larger and more costly than needed.

Determine your company’s capabilities and needs

You have to consider your current staff’s technical expertise before deciding on a machine. Unless you’re willing to invest in hiring qualified operators or in staff training, it is best to steer clear of machines with technical requirements that are not aligned with your staff’s knowledge and expertise.

Research your machine options

Once you’ve gone through all four steps, you should be able to narrow down your options to a more manageable number. Gain as much knowledge as you can from internet searches, industry network, trade shows or wherever you can gain knowledge about the machines you’re about to invest in.

If you need more help in your buying decision, our team would be glad to give you expert and unbiased advice.

Call PAKSMART today on +61 2 9630 9464 or send us an e-mail at [email protected]

Read More...

Carton Packaging Material

How End Load Cartoners Add Value to Your Business

Carton sealing usually comes last in many production cycles but is in no way the least important. Well-sealed packaging not only provides physical protection for products during delivery and storage, it also indicates the level of stringent care implemented in the production process.

If your business needs a quick, efficient and high-quality carton sealing solution, PAKSMART has the answer.

PAKSMART® PC40 CARTON SYSTEM

Our PC40 Carton System is an End Load Cartoner designed to seal and load up to 40 cartons per minute. Available in hand load or automatic load, PC40 is a machine that can suit a wide range of applications depending on your business requirements. Its automatic carton packing features enhance packaging processes for quick and reliable sealing procedures.

THE ADVANTAGES

PAKSMART takes equipment engineering seriously. Each machine has specific functions and features that enhance your overall business operations. Here are some of the advantages of a PC40 system:

Cost-Efficiency

PAKSMART’s PC40 Carton System is an economical tool that increases productivity and reduces labour costs. What a single employee can do in minutes, a PC40 machine can do in just one. It also helps conserve energy for businesses that have 24-hour operations.

Aesthetics

Using glue and staples in your packaging can damage both the box and the product. The PC40 system gives you a neater way to seal your boxes. Consistency is a key feature of the system, ensuring a clean and presentable sealing job.

Maintenance

At PAKSMART, we supply durable machines that require minimal maintenance. The system aims to help businesses minimise disruptions and costly machine repairs.

Space-Saving Design

With a PC40 system, you get the capabilities of state-of-the-art equipment that does not take up much space in your facility. Instead of working on several tables for your sealing requirements, you can load all your cartons into the machine in an organised manner.

Flexibility

Our PC40 machines can accommodate a wide range of carton shapes and sizes. All you have to do is tweak the system beforehand according to your requirements.

Safety and Comfort for the User

Our packaging systems are designed with the user in mind. The PC40 has a robust frame and easy access to all moving parts, making the machines safe to use and clean. Our systems are also fully compliant with Australian Standards for operator safety.

Straightforward Process

The PC40 is a straightforward system. Once the machine is connected to a power source, the user can immediately begin sealing cartons.

Reduced Waste

Manual sealing often leads to an unnecessary surplus of tape waste. With PAKSMART® PC40, you create less rubbish while assured that your packages are excellently sealed.

PAKSMART

PAKSMART is an Australian manufacturer and supplier of well-designed, robust and durable equipment that improves the automation of packaging processes. We have an enduring commitment to the creation of machinery that increases productivity, meets individual requirements and simplifies operations for packaging businesses. With over 18 years in the industry, PAKSMART continues to serve Australian food, pharmaceutical and contract packaging partners.

As leading case packer manufacturers, we want to know more about your needs. Talk to us and call us on +61 2 9630 9464.

Read More...

production line

Precious Seconds: Remove Time-Wasting Segments from Your Production Line

In manufacturing, fulfilling output targets on time if not ahead of schedule is crucial. As head of production, you want to make sure that your processes are efficient and that no time or resources go to waste. To put things into perspective, consider this: A 5-second delay doesn’t seem like much, but if it recurs 500 times within the day, that’s equivalent to over almost 42 minutes of production time wasted.

It’s things like this that call for a regular evaluation of production processes. While targeting perfection is a tall order, holding your company to a high standard will improve the quality of your products or services. That is what we aim to help you with at Paksmart.

Fulfil the Demands of Your Expanding Business

Whether your manufacturing company is just starting out or already working to fulfil increasing customer demands, three important requirements remain: speed, accuracy, and consistency. Remove or diminish any of these three, and you’ll be dealing with underproduction, delays in delivery, and QA issues.

The key, then, is to identify time-wasting segments of your production lines and to improve the process to cut the delays. It may have to adjust to your staffing, but the result will be worth it.

Integrate Machinery to Boost Employee and Production Efficiency

One way to achieve efficiency is to integrate machinery in areas where they can make the significant improvements. For instance, in a packing line, a mechanized carton erector will be more efficient than an employee who must manually assemble cartons to pack the finished product. Instead of focusing on a single packing line, this employee can now oversee multiple carton erectors. In this scenario, the company saves time and labour cost.

Integrating machines into your production line will enable you to advance your employees from labour-intensive to supervisory positions. If you see the potential of this set-up in your own production line, Paksmart can help you adopt it. Contact us today and let’s discuss your options.


Read More...

Why Your Business Should Use Shelf Ready Packaging

The retail industry is adapting to new trends in presenting products in store. Store managers are re-evaluating their current product packaging processes to make their products more presentable to customers. It is no longer sufficient to supply individual units in plain cardboard shipping containers. One of the new trends in product packaging is in the form of shelf ready packaging (SRP). Also known as retail ready packaging, this type of product package supports marketing messages and product information that make products stand out on store shelves. It has other features such as better product visibility, ease of identification, tray strength and shelf depth. By using SRP, on-shelf products look more enticing for customers.

Promoting Your Brand Using SRP

With an effective SRP strategy, you can promote and sell your products more efficiently. You can place products that use SRP near your store’s entrance or beside the cashier for customers to see them clearly. SRP can be designed according to your brand’s design elements. This can make customers more aware of your brand by associating its colours and other design elements with your product.

Be Creative on How You Sell Your Products

With SRP, you have complete control over how your product is presented. SRP can be made with eye-catching shapes, colours and designs that incorporate your brand identity. Although a striking design attracts customer’s attention, you may opt for a minimalist design. The overall design of a SRP is dependent on what type of product you are selling. To produce a SRP that is suitable for your product, you would have to find the right packaging machine. PAKSMART offers a shelf ready packaging machine that can produce twenty-five cases per minute. Our shelf ready packaging machine can design SRP that can improve overall product visibility and help in increasing product sales. To inquire about our shelf ready packaging machine, call +61 2 9630 9464.

Read More...