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Glossy White Pty Ltd recently won a contract to paint a large supermarket chain (inside and outside).

The contract covers 30 stores throughout Victoria, NSW and Queensland. Internal work will need to be done of an evening when the stores are closed and it is expected to take two weeks per store using four painters and two hydraulic scissor lifts. The contract is for $25,000 (excluding GST) per store and all work must be completed within 24 months. Half of the income will be paid on commencement of the work for each store and the balance on completion.

Jason has estimated he will need to employ a further three painters at a salary of $65,000 each and will also need to purchase two hydraulic scissor lifts with cage and trailer at a cost of $21,000 (including GST) each.

Clients have not yet spoken to Accountant however feel they would like to purchase the equipment in the Trust (White Unit Trust) and also rent the machines out when not in use at the end of the contract.

You are required to prepare a complex application, loan documents, provide all supporting documents (including invoices) and a cash flow showing repayments and all costs that can be covered from contract income.