NJH Advisory

18/06/2025

Your ability to reduce “MASSIVE” amounts of “TAX” is directly correlated to:
. taxable income – roughly translated “profit”. structure. industry. free cash flow – roughly translated “money you can spend”

There are multiple tax minimisation strategies available – but these factors determine:

- how much you can save, and your ability to do so -

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04/06/2025

Your company is not you!

its bank account is not yours!

your drawings are not wages, it’s a loan!

if it’s not a wage or a dividend, it’s a loan!

if the loan is not compliant, it’s a dividend (unfranked) – all of it, all at once, all in one year!

making sense? 🤔

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01/06/2025

Statistically speaking 📉
. your business will fail in the first 1 to 2 years

Why...
. poor cash flow management 💸

translated – not all the cash in the bank is yours!

translated again – don’t spend all your profits du***ss!

don’t confuse profit with cash| drawings with wages | and a bank balance with money to spend

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28/05/2025

💀 everyone (when broke)

“the rich should pay more tax”

💸 same everyone (when “rich”)

“why do I pay so much tax”

funny how that works 🤔

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26/05/2025

How to pay as much "TAX" as possible
. find the cheapest accountant. judge accountants on two metrics – cheapest & refund size. keep terrible records. bring your records in as late as possible. buy assets used personally in your business name. buy your partner a luxury car in your business name. if your mate does it, copy them. buy business assets for the sole purpose of reducing tax. set up your own company, this always saves money. don’t tax plan, or better yet, wait to do it after 30 June. don’t consult your accountant on major financial decisions. make loads of money. lodge returns late and pay them even later

Invert for optimal results!

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30/10/2024

Good Debt, Bad Debt

💸 What debt should I pay off first? 💸

Interest deductions can significantly impact your tax. Here’s the order of operations for optimal tax savings!

1️⃣ Personal Debt – There’s no tax benefit here, so focus on paying this off first.

2️⃣ SMSF Debt – If you have an SMSF, tackle this next, as it comes with a 15% tax benefit.

3️⃣ Business & Property Investment Debt – Typically, leave this for last since personal tax rates are "generally" higher.

🔹 Pro Tip: In some cases, steps 2 and 3 can be swapped.

Manage your debt by making informed decisions! 💡

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01/09/2024

Happy Father's Day ❤️

23/08/2024

Compare the Pair

Same business, same entity structure, same taxable income

Same tax outcome? No! ❌

One pays $1,000 less in tax!

Paying profit out as wages vs. distributions creates a distinct advantage. But which one 🤔

Both payment methods have pros and cons, so choose your poison

There are no perfect solutions, only trade-offs. But $1,000 is $1,000 💸

Key Takeaway:

How you structure your business matters. Get advice!

Simples

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28/06/2024

2024 offers a permanent tax deduction

Why?

Tax rates reduce from July 1, 2024. Therefore, any expense results in a larger deduction in the 2024 tax year.

Action?

Accelerate purchases, buying in cash or on credit, items that your business needs or will need in the 2025 tax year.

Important! ⚠️ Don’t spend money for the sole purpose of saving on tax. The decision to buy the thing should benefit the business.

This is why tax planning matters. It reduces uncertainty and identifies opportunities.

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20/06/2024

Lately, I've seen a surge of clients setting up companies. Why? Because it sounds cool... "My mate said he does x and y through his company."

It might make you 10% cooler, but you're not your mate!

Rule of thumb 👍: Don’t start a company unless you’re making a sh*tload of cash 💩💰

You could actually be paying more tax and accounting fees than necessary! If that’s your goal, then reach out!

Each structure has its benefits from a tax and commercial perspective. But there are multiple variables relevant to your unique circumstances – industry, profit, assets, liabilities, risk, personal situation, and so on.

The goal is to strike the optimal balance of tax and commercial outcomes. There are no perfect solutions, only trade-offs.

Here are the four structure options, in order of growth and complexity:

✅ Sole trader
✅ Partnership
✅ Trust
✅ Company

If you have a company and are complaining about a $3,000 accounting fee, then you are probably in the wrong entity!

Strategic planning can help you avoid this issue!

Then, you can climb up the ladder as your circumstances change, i.e., GROWTH / you make loads of money 💩💰

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