360 Degrees: The most popular stimulus measures

Kylie Parker director, Lotus Accountants

Long-term impact

In looking at the government stimulus measures it is worthwhile considering the time frame of the measures when contemplating which is the most successful. JobKeeper definitely has provided a short-term lifeline in retaining staff during the lockdown period and hopefully it remains until the initial end provided of 27 September.

However, I am seeing many businesses who may not have been impacted adversely financially receive the cash flow boost of up to $100,000, often smaller businesses with few staff who have high salaries who are really being able to use this “bonus” money and build a strong platform for potential business growth.

Businesses that are able to take advantage of the stimulus measures on offer (legally, of course) that may not have been the initial intended recipients are in a great position to consider new product lines, marketing opportunities, hiring more staff, training programs or enabling other business levers that can improve the long-term success of their business. 

Mitchell Moroney director, Moroney & Associates

Retaining staff

Upon review of my clients’ information, two stimulus measures stand out as the most beneficial – cash flow boost and JobKeeper.

The JobKeeper stimulus measure has allowed many businesses to survive and retain their staff, which has been of great assistance, especially with businesses now opening back up. It has also greatly assisted a number of individual clients who may have been working part-time and as a consequence of the incentive, have received a large pay rise. The biggest financial benefit I have seen has come from the cash flow boost, with some of my clients receiving hundreds of thousands of dollars ($100,000 max per entity).

This has allowed businesses to continue operating and in certain circumstances has put the business in a better position than they may otherwise have been in. It will be interesting to see the fallout once the life support is turned off and what future taxation changes will be made in order to repay the massive stimulus package issued. 

Josh Lowe client manager - tax and advisory, the Gild Group

Added bonus

From our small business clients’ point of view, we’d have to say JobKeeper has had the greatest impact on them.

Although cash flow boost is potentially a greater dollar figure, JobKeeper has been more impactful for the following reasons: It is available to a wider range of clients. Mainly, those who haven’t ran payroll and therefore miss out on cash flow boost. They can still access JobKeeper as an Eligible Business Participant or sole trader.

It is working as a replacement of income, as opposed to a credit for a business expense they would normally have (cash flow boost). This is certainly evident from the influx of emails on the first day of the month, with clients wanting to get their next JobKeeper declaration done. Also, the majority of our clients receiving the cash flow boost are already getting JobKeeper.

So, JobKeeper is assisting on the income side, with cash flow boost an added bonus for them on the expense side.

Miriam Holme founder and senior accountant of Fab Tax Accountants and Flinders Accounting

Saving jobs 

All of the stimulus measures have had an impact for our small business clients and have been gratefully appreciated. I can hand on heart say that these measures have tremendously helped the mental health and wellbeing of business owners and employees across Australia during one of the most challenging times we have ever faced.

The financial impact has depended on the industry and the size of the business. JobKeeper, cash flow boost and instant asset write-off have had a widespread impact in the immediate term. Because of JobKeeper, a lot of businesses felt more secure in buying assets before the end of financial year.

JobKeeper has certainly been most relevant for sole traders who didn’t qualify for any of the other stimulus packages and has saved a lot of jobs from being lost. Businesses have also greatly appreciated the additional $10,000 state grants offered by most of the states.

They have used this extra money to help stimulate local businesses. The apprentice subsidies and homebuilder grants will also hopefully have a greater impact throughout the rest of the year and construction clients have noticed a directly correlating pick-up in jobs because of this measure.