Planning this year is particularly important.
I have seen other videos from other accountants.
I think some of them have ultra conservative views.
They are saying you can’t ‘plan’ and use the stimulus available to the fullest.
I COMPLETELY DISAGREE.
My views are as follows:
There are two types of Stimulus available…
- Cashflow boost (stimulus 1 and 2); and
- Emergency stimulus (JobKeeper)
Cashflow boost are put in place to have everyone spend money in the economy.
They push people into spending more at a time they normally wouldn’t.
These boost you should plan as much as possible for your business to capitalise to the max!
Pay your staff a bonus, pay yourself a bonus to utilise the $100k PAYG wages boost available.
That extra money might be spent on keeping businesses alive.
E.g. You or your staff might pay down your mortgage quicker (the banks have people currently on hold on their mortgage, if you paid yours quicker this will help them immensely with their cashflow to offset the people on hold)
Go out for dinner or drinks (now that things are open), this might help the local pub survive
Spend it on new clothes, we all know the retail stores need it!
Buy a car or machinery for less than $150k and write it off straight away!
Maximise your value using the cashflow boost!
Emergency stimulus is a little bit different… this is put in place to keep the economy alive. This saves jobs and heartache; it is a bit different.
This one there is no planning, you either qualify or you don’t.
If you don’t, you didn’t miss out.
You are actually one of the lucky ones who didn’t need it. Don’t get creative to qualify.
You don’t mess with Emergency stimulus.
If you think your accountant’s views don’t align with yours, give us a call at Obsidian Advisory for a second opinion. 0422 697 739.