S & H Tax Accountants

Author: Bizink

  • JobKeeper and JobSeeker Changes Coming Next Week: What You Need To Do

    The Australian Government announced that JobKeeper and JobSeeker payments will be extended, with changes starting on 28 September 2020. Below is a rundown of the changes to expect on these support schemes.

    Changes to JobKeeper

    The JobKeeper scheme will continue until 28 March 2021. The extension of the scheme will operate in two separate periods:

    • Extension 1: 28 September 2020 to 3 January 2021
    • Extension 2: 4 January 2021 to 28 March 2021

    JobKeeper Extension 1

    The tier 1 payment rate of $1,200 per fortnight applies to:

    • Employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020
    • Eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration.

    For any other eligible employees or business participants, the tier 2 payment rate of $750 per fortnight will apply.

    JobKeeper Extension 2

    For extension 2, payment rates will be further reduced to:

    • $1,000 per fortnight for tier 1 employees and business participants
    • $650 per fortnight for tier 2 employees and business participants

    The ATO website provides further information about the eligibility requirements for the extension 2 period.

    Decline in Turnover Test

    Both these extension periods will require satisfaction of an additional actual decline in GST turnover test as follows.

    Extension 1 (28/09/2020 – 03/01/2021)
    September Quarter (Jul, Aug, Sept) relative to comparable period (usually same 2019 Q)

    Extension 2 (03/01/2021 – 28/03/2021)
    December Quarter (Oct, Nov, Dec) relative to comparable period (usually same 2019 Q)

    For further details about the eligibility requirements for the JobKeeper extension 1, please refer to the Australian Taxation Office (ATO) website.

    How does this differ from the original JobKeeper test?

    • The decline in turnover must be demonstrated for specific quarters only .
    • Rather than using projected GST turnover for the relevant quarter being tested, you use your current GST turnover
    • You must allocate sales to the relevant quarter in the same way you would report these sales to a BAS if you were registered for GST
    • If you are not registered for GST, you will work out your turnover using either the GST cash or non-cash basis of accounting.

    What you need to do

    From 28 September 2020, you are required to:

    • Determine your eligibility for the JobKeeper Extension scheme using the actual turnover test for the September quarter
    • Determine if you have any new eligible employees that were not previously nominated for JobKeeper and ask them to agree to be nominated
    • Work out the Tier 1 or Tier 2 rate of pay that you will be claiming for each eligible employee/eligible business participant
    • Notify your eligible employees which payment rate is applicable for them
    • Ensure your eligible employees/eligible business participants receive the correct rate of payment per fortnight during each of the JobKeeper Extension periods according to the two tiers of payment
    • If you are registered for GST and have outstanding Business Activity Statements (BAS), ensure you lodge your BAS for the September 2019 and December 2019 quarters now (or for equivalent months, if you report monthly) so that you don’t hold up your application for the JobKeeper Extension Scheme

    The required decline in GST turnover percentages will remain the same:

    • 30% for an aggregated turnover of $1 billion or less
    • 50% for an aggregated turnover of more than $1 billion
    • 15% for ACNC-registered charities other than universities and schools.

    What you do not need to do:

    If you are already enrolled for the current JobKeeper Scheme for fortnights prior to 28 September 2020, you do NOT need to:

    • Re-enrol for the JobKeeper Extension Scheme
    • Re-assess eligibility for employees already receiving JobKeeper for the JobKeeper Extension Scheme or ask them to agree to be nominated
    • Meet any further requirements if you are claiming for an eligible business participant, other than holding an ABN and declaring assessable income and supplies

    The ATO has a useful one page fact sheet outlining the key changes, but please ask us if you have a question.

    Changes in JobSeeker Payment

    JobSeeker will continue until the end of December 2020, and then the government will review at the end of the year to assess if it needs to be extended further. Here are the changes in payment rates:

    • COVID supplement of $550 per fortnight will be reduced to $250 from October until the end of the year, making the JobSeeker rate around $800 per fortnight.
    • Those on this payment can earn up to $300 per fortnight without reducing their payment

    Mutual Obligations to Return in 2 Phases

    You will need to do the following to avoid penalties:
    Phase 1 – August 4th

    • Reconnect with employment services
    • Undertake 4 job searches a month
    • Take jobs where offered

    Phase 2 – End of September

    • The number of required job searches a month will be higher
    • Take jobs where offered

    In both Phase 1 and Phase 2, people will be given penalties if they do not take jobs offered. We at S & H Tax Accountants are here to help. We have 99% customer satisfaction rate. Best accountants in Melbourne are here to help

  • COVID-19 Business Update – 23 September 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Queensland Border Zone Extensions from October 1st

    Queensland’s border zone will be extended to 5 local government areas in NSW starting October 1st. These areas include: Byron, Ballina, Lismore, Richmond Valley and Glen Innes councils.

    South Australia-NSW Borders to Open at Midnight

    South Australia will reopen its borders to New South Wales at midnight, after NSW recorded another day with no community transmission. This means NSW residents entering SA will no longer have to undergo the mandatory 14-day quarantine.

    From midnight, the only part of Australia barred from entering South Australia is Victoria.

    Business Resilience Package for Victorian Businesses

    The Victorian government is investing $3 billion in cash grants, tax relief, and cashflow support to aid businesses hit by the tight restrictions and help them prepare for COVID Normal. The types of support included in this package are divided into three categories: Business Support, Business Adaptation, and Waivers and Deferrals.

    Included in Business Support is the third round of the Business Support Fund for small- and medium-sized business ($822 million), with applications opening on 18 September 2020.

    Meanwhile, Business Adaptation involves funding, tools, and resources to help businesses adapt to COVID Normal. Tax and cashflow support amounting to $1.8 billion will be provided by the government under the Waivers and Deferrals scheme.

    For a detailed rundown of the inclusions of the Business Resilience Package, click here. Let us help you assess your eligibility and gain access to government support! Get in touch with us so we can schedule a consultation.

    Sole Trader Support Fund

    The Victorian Government has announced the Sole Trader Support Fund for eligible non-employing businesses affected by COVID-19 restrictions. Under this scheme, sole traders will receive a grant of $3,000.

    Grant applications will open in the coming days and the full list of eligibility criteria will be published soon. We will keep you updated as soon as more information is available.

    Federal Government Announces $50 M Grant for Business Events Industry

    The Federal Government has confirmed a $50 million grant for Australia’s business events industry, which will enable organisers of business events to apply for upfront grants that will cover up to 50% of their costs (between $10,000 and $250,000).

    Aside from getting the business events industry back on their feet, this will also pave the way for businesses to connect through consumer and trade shows and conferences.

    If you need expert business advice in growing your network amidst the pandemic, feel free to drop us a message.

    Second Round of Cash Flow Boost

    If you’ve received initial cash flow boosts, you will automatically get a second round of cash flow boost when you lodge your activity statements for each monthly or quarterly period from June to September 2020.

    If you lodge:

    • quarterly, you’ll receive 50% of your total initial cash flow boost for each activity statement
    • monthly, you’ll receive 25% of your total initial cash flow boost for each activity statement.

    If you receive some funds into your account from the ATO and aren’t sure what it relates to, feel free to get in touch with us and we can investigate.

    More details can be found in the ATO website.

    Reminder: JobKeeper and JobSeeker Changes from 28 September

    The Australian Government announced that JobKeeper and JobSeeker payments will be extended, with changes starting on 28 September 2020. Below is a rundown of the changes to expect on these support schemes.

    Changes to JobKeeper

    The JobKeeper scheme will continue until 28 March 2021. The extension of the scheme will operate in two separate periods:

    • Extension 1: 28 September 2020 to 3 January 2021
    • Extension 2: 4 January 2021 to 28 March 2021

    JobKeeper Extension 1

    The tier 1 payment rate of $1,200 per fortnight applies to:

    • Employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020
    • Eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration.

    For any other eligible employees or business participants, the tier 2 payment rate of $750 per fortnight will apply.

    JobKeeper Extension 2

    For extension 2, payment rates will be further reduced to:

    • $1,000 per fortnight for tier 1 employees and business participants
    • $650 per fortnight for tier 2 employees and business participants

    The ATO website provides further information about the eligibility requirements for the extension 2 period.

    Decline in Turnover Test

    Both these extension periods will require satisfaction of an additional actual decline in GST turnover test as follows.

    Extension 1 (28/09/2020 – 03/01/2021)
    September Quarter (Jul, Aug, Sept) relative to comparable period (usually same 2019 Q)

    Extension 2 (03/01/2021 – 28/03/2021)
    December Quarter (Oct, Nov, Dec) relative to comparable period (usually same 2019 Q)

    For further details about the eligibility requirements for the JobKeeper extension 1, please refer to the Australian Taxation Office (ATO) website.

    How does this differ from the original JobKeeper test?

    • The decline in turnover must be demonstrated for specific quarters only .
    • Rather than using projected GST turnover for the relevant quarter being tested, you use your current GST turnover
    • You must allocate sales to the relevant quarter in the same way you would report these sales to a BAS if you were registered for GST
    • If you are not registered for GST, you will work out your turnover using either the GST cash or non-cash basis of accounting.

    What you need to do

    From 28 September 2020, you are required to:

    • Determine your eligibility for the JobKeeper Extension scheme using the actual turnover test for the September quarter
    • Determine if you have any new eligible employees that were not previously nominated for JobKeeper and ask them to agree to be nominated
    • Work out the Tier 1 or Tier 2 rate of pay that you will be claiming for each eligible employee/eligible business participant
    • Notify your eligible employees which payment rate is applicable for them
    • Ensure your eligible employees/eligible business participants receive the correct rate of payment per fortnight during each of the JobKeeper Extension periods according to the two tiers of payment
    • If you are registered for GST and have outstanding Business Activity Statements (BAS), ensure you lodge your BAS for the September 2019 and December 2019 quarters now (or for equivalent months, if you report monthly) so that you don’t hold up your application for the JobKeeper Extension Scheme

    The required decline in GST turnover percentages will remain the same:

    • 30% for an aggregated turnover of $1 billion or less
    • 50% for an aggregated turnover of more than $1 billion
    • 15% for ACNC-registered charities other than universities and schools.

    What you do not need to do:

    If you are already enrolled for the current JobKeeper Scheme for fortnights prior to 28 September 2020, you do NOT need to:

    • Re-enrol for the JobKeeper Extension Scheme
    • Re-assess eligibility for employees already receiving JobKeeper for the JobKeeper Extension Scheme or ask them to agree to be nominated
    • Meet any further requirements if you are claiming for an eligible business participant, other than holding an ABN and declaring assessable income and supplies

    The ATO has a useful one page fact sheet outlining the key changes, but please ask us if you have a question.

    Changes in JobSeeker Payment

    JobSeeker will continue until the end of December 2020, and then the government will review at the end of the year to assess if it needs to be extended further. Here are the changes in payment rates:

    • COVID supplement of $550 per fortnight will be reduced to $250 from October until the end of the year, making the JobSeeker rate around $800 per fortnight.
    • Those on this payment can earn up to $300 per fortnight without reducing their payment

    Mutual Obligations to Return in 2 Phases

    You will need to do the following to avoid penalties:
    Phase 1 – August 4th

    • Reconnect with employment services
    • Undertake 4 job searches a month
    • Take jobs where offered

    Phase 2 – End of September

    • The number of required job searches a month will be higher
    • Take jobs where offered

    In both Phase 1 and Phase 2, people will be given penalties if they do not take jobs offered.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    Sleep is NOT for the Weak

    Significant changes in the way we live brought by the pandemic, such as extended periods of lockdown, work from home setup, and social restrictions, have blurred the lines between life and work. Sometimes people forget even the simplest self-care habits such as getting enough rest.

    Sleep is as close to a panacea as we are likely to get in our lifetimes: it helps us recover from injuries and illness, plays a vital role in memory formation, and helps keep us healthy. Disrupting our sleep has an adverse impact on nearly every system in our bodies.

    The uncertainties due to the current global crisis also cause high levels of stress. In a recent study by the National Bureau of Economic Research, it was found that unemployment disrupts sleep, along with other negative impacts on health and well-being.

    Even if you’re not unemployed, the pandemic has been stressful enough that many people are experiencing ‘coronasomnia.’ In this article, a Harvard Business Review editor describes her experiments with four different tactics to get better sleep. The one that worked best for her was setting aside all electronics and avoiding all screens for two hours before bedtime.

    These have been unusual times that are impacting nearly everyone on the planet. We hope that you are finding ways to make this a time not just for survival but for growth as well!

    Government Launches Business Continuity Website to Support Businesses Amid COVID-19

    The Australian Government has launched the Australian Business Continuity website to support businesses with staff working remotely amid the pandemic.

    The site provides free practical tools for remote communications, collaboration, workforce management, and video conferencing, as well as advice on how to best use teleworking services.

    Get in touch

    Contact us if you have any questions.

  • The worst business advice to follow

    The worst business advice to follow

    When you’re a small business owner, you get used to people giving you advice. Sometimes you seek out their insights while other times they share whether you want them to or not. While the advice is almost always well-intended, it’s not always good. In fact, sometimes it’s downright awful.

    Here are some tips that well-meaning people give to small business owners that definitely should not be followed.

    1. Never turn down a paying customer

    Money is a good thing. But that doesn’t mean you should say yes to everyone who comes through your door. Not every person who approaches you is good for your business. If your gut tells you something is off—maybe the person is very demanding or constantly questions your prices—it’s in your best interests to say no.

    It’s not necessarily about the client, either. You might be very busy, and taking on another project means you’ll be giving them subpar service or using up your valuable personal time.

    If possible, turn them away graciously by explaining that you’re very busy and cannot give them the attention they deserve. Consider recommending another business for them that they could turn to.

    Don’t say “yes” to everyone who walks through the door just because they’re a paying customer.

    2. The customer is always right

    It’s often in your best interests to ensure an unhappy customer is addressed and their needs are met. But there are clients out there who will never be happy, no matter what you do. It’s okay to try to make things right with them, but you also run the risk of word getting out that you’ll bend over backwards to make customers happy. That just encourages more unhappy people to come your way. Or it encourages people to find reasons to be unhappy so they can get additional benefits from you.

    If it’s a normal part of routine that customers are constantly complaining and getting some sort of reward, you need to examine your business. If the customers are truly right, then it’s time for some changes. If they aren’t right, stop treating them like they are.

    3. Do what you love

    In an ideal world, we’d all have jobs we love and make endless money with no added stress, all without giving up any of our personal time. That’s not how the world works. Just because you love something doesn’t mean there is a market out there for it.

    It’s more important that you find something you are okay with doing—don’t take on something you hate—that fills a need. And it has to be something enough people would be willing to pay for.
    That’s how you make money in business.

    Final thoughts

    Everyone has advice about running a small business, even if they have never run one of their own. Some of the advice is helpful but much of it is harmful. Listening to that advice can lead a small business owner down the wrong path.

    When someone offers you advice on your small business, ask what credibility they have to share their insights. Have they owned their own business? Do they have knowledge of the industry you work in? Have they learned lessons you could learn from? Was their business similar to yours?

    Remember, just because someone is offering advice doesn’t necessarily mean their advice is relevant to you. And just because they offer the advice—or just because the advice is a common saying—doesn’t mean you have to follow it.

    Got a question about your business? Please don’t hesitate to get in touch?

    We at S & H Tax Accountants are here to help. We have 99% customer satusfaction rate. Best accountants in Melbourne are here to help

  • Creating your business to-do list

    When you’re an entrepreneur, your to-do list is often long and constantly growing longer. There are an overwhelming number of things you need to do, and it can feel like they’re all urgent. In such cases, it’s easy to push important tasks to the side and focus on less-vital activities, but that often means you miss deadlines, make mistakes or always feel as though you’re trying to catch up.

    Here are some ways for you to determine the most productive order to complete your tasks.

    1. Know all of your tasks

    It isn’t enough to have a running list of tasks in your head; you need to write them out so you can see them at a glance. Take the time to list all your tasks, and break down large tasks into smaller steps.

    Write a list of the activities you need to do for the week—or even the next two weeks—on Monday morning. Include information such as how urgent they are, how long they’ll take to complete and what their deadlines are.

    Now you know what you need to complete and you have an idea of when things need to be done.

    2. Determine what tasks are vital

    There are many methods for determining which tasks are the most vital. Here, we’ll go into two: the Eisenhower Decision Matrix and the ABCDE Method.

    In the Eisenhower Decision Matrix, you classify each task into one of four quadrants. These quadrants are based on whether the task is important, urgent, both or neither. Tasks that are both important and urgent should be done first, followed by those that are either important but not urgent or urgent but not important, and finally those that are neither important nor urgent. If possible, delegate tasks that aren’t both important and urgent to someone else.

    Another method is the ABCDE method, in which you assign each task on your list a letter from A through E based on its level of importance. Tasks with a level of A or B are the most important, while D and E are not at all important. Anything from C down can likely be rescheduled or delegated to someone else.

    3. Schedule your tasks

    Now that you know which tasks are the most important, schedule your to-do list in that order. Write yourself a daily list that puts the most important tasks at the start of your day. Don’t overschedule yourself, though. After all, there’s a good chance that in the course of your week, a new activity that is both important and urgent will arise and you’ll need the space in your calendar to address it.

    Give yourself deadlines in the day to get the work done, based on a reasonable assessment of how long the activity should take you. You can also chunk your work, in which you set aside specific, uninterrupted periods of time to do focused work and then schedule in breaks around that.

    Make sure you turn off distractions and let your colleagues know that you aren’t available during those times.

    Final thoughts

    By determining which of your tasks are the most important to you and your business and scheduling your day based on that criteria, you can ease the pressure caused when you have a long list of activities to take care of.

    Want to chat about your business? Get in touch with our advisors.

  • COVID-19 Business Update – 16 September 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Melbourne’s Roadmap to ‘COVID Normal’

    A staged plan to ease Melbourne out of tight COVID-19 restrictions has been released. Stage 4 restrictions will remain in place for another two weeks with some minor changes, and will start to ease further from 28 September.

    The final step should be reached by late November if the city reaches a targeted decline in COVID-19 cases. Details about this roadmap to COVID Normal can be found here.

    Regional Victoria to Move to Step Three of Reopening Plan

    Regional Victoria will move to step three of the reopening plan from 11:59pm Wednesday night, which means that sitting in a restaurant, meeting up to 10 people outdoors, kids’ sport and travelling for a holiday will all be allowed.

    However, masks will still be mandatory and strict restrictions on the number of people who can visit your home remain in place. You can find a detailed guide on the changes that are coming here.

    Business Resilience Package for Victorian Businesses

    The Victorian government is investing $3 billion in cash grants, tax relief, and cashflow support to aid businesses hit by the tight restrictions and help them prepare for COVID Normal. The types of support included in this package are divided into three categories: Business Support, Business Adaptation, and Waivers and Deferrals.

    Included in Business Support is the third round of the Business Support Fund for small- and medium-sized business ($822 million), with applications opening on 18 September 2020.

    Meanwhile, Business Adaptation involves funding, tools, and resources to help businesses adapt to COVID Normal. Tax and cashflow support amounting to $1.8 billion will be provided by the government under the Waivers and Deferrals scheme.

    For a detailed rundown of the inclusions of the Business Resilience Package, click here. Let us help you assess your eligibility and gain access to government support! Get in touch with us so we can schedule a consultation.

    Missed the Superannuation Guarantee Amnesty Deadline?

    The Superannuation Guarantee Amnesty ended last week on 7 September. Businesses that failed to apply for the SG amnesty but still have unpaid or late paid super to disclose will need to lodge a Superannuation guarantee charge statement and pay the super guarantee charge (SGC).

    The ATO will notify you of the quarters that are not eligible for the amnesty and charge you with an administration component of $20 per employee per quarter. They will factor in the circumstances of your business in their decision of whether the Part 7 penalty should be remitted and will also work with you through the debt processes to collect the outstanding amount.

    If you have any superannuation concerns, feel free to contact us and let us sort it out for you.

    Xero Starter Plans have changed

    COVID-19 has seen a spike in new businesses started in Australia, with the vast majority being micro/small business. To help, the Xero Starter Plan has been upgraded to help micro and small businesses digitise their accounts.

    It’s still $25 per month, however the plan now includes:

    • The bank statement limit has been removed
    • 20 invoices p/m (approx. 1 per business day)
    • 5 Bills per month
    • Hubdoc included
    • 1 employee through payroll

    To celebrate, Xero’s offering all new Starter plans at $12.50 for the first 4 months. This applies to new subscriptions only and for a limited time. See xero.com/pricing or get in touch with us for more information.

    Second Round of Cash Flow Boost

    If you’ve received initial cash flow boosts, you will automatically get a second round of cash flow boost when you lodge your activity statements for each monthly or quarterly period from June to September 2020.

    If you lodge:

    • quarterly, you’ll receive 50% of your total initial cash flow boost for each activity statement
    • monthly, you’ll receive 25% of your total initial cash flow boost for each activity statement.

    If you receive some funds into your account from the ATO and aren’t sure what it relates to, feel free to get in touch with us and we can investigate.

    More details can be found in the ATO website.

    Bankruptcy Protection Rules Until End of 2020

    Australia will extend its temporary insolvency and bankruptcy protection rules until the end of this year, providing businesses a lifeline to recover from the impacts of COVID-19.

    The rules, which were first introduced in March and originally due to expire on 30 September 2020, indicate that creditors cannot issue bankruptcy notices to businesses for debts below A$20,000.

    The creditors’ notice period to act on debts could also be extended, allowing businesses to keep trading without paying rent, tax, and loans.

    Contact us if you have any questions and we’ll help create a plan for your business.

    JobKeeper 2.0 Bill Passed By Federal Parliament

    The JobKeeper Amendment Bill 2020 was passed by Federal Parliament this week. Below are the key changes to the scheme:

    Extending the period of operation– The JobKeeper scheme and the provisions that allow employers to temporarily vary the working arrangements (by way of JobKeeper enabling directions or agreements under Part 6-4C of the Fair Work Act 2009) will now end on 28 March 2021 instead of 28 September 2020.

    New payment rates– The current JobKeeper subsidy rate for full-time workers of $1,500 a fortnight will drop to $1,200 from 28 September 2020, and then to $1,000 a fortnight from January 2021. Meanwhile, those who worked less than 20 hours per week in the relevant reference period (being the four-week pay period before either 1 March 2020 or 1 July 2020) will receive $750 from 28 September 2020, and then to $650 a fortnight from January 2021.

    Legacy Employers– Employers who no longer qualify for JobKeeper after 28 September will be classified as legacy employers, and will have to satisfy a 10% decline in turnover to have access to modified JobKeeper enabling directions.

    Decline in Turnover Test Certificate– Employers will need to obtain a 10% decline in turnover test certificate from an eligible financial service provider, including a BAS or Tax agent.

    These modified directions include reducing an employee’s ordinary hours to a minimum of 60% of the employee’s ordinary hours as they were at 1 March 2020, but cannot result in the employee working less than two consecutive hours in a day.

    A dispute can be brought before the Fair Work Commission about whether an employer holds a 10% decline in turnover certificate for the relevant period, including a dispute about whether a certificate is valid.

    Penalty– A penalty of up to $13,320 for individuals and $66,600 for body corporates or employers will be imposed if an employer doesn’t meet the 10% decline in turnover test and knowingly or recklessly tries to use the provisions or fails to notify employees that a JobKeeper enabling direction or agreement is not continuing due to not having met the requirements.

    JobKeeper Turnover Test Requirements

    From the 28th of September 2020:

    • businesses looking to claim the JobKeeper payment will be required to demonstrate that they experienced a decline in turnover using actual GST turnover, rather than projected GST turnover.
    • businesses will be required to reassess their eligibility with reference to their actual GST turnover in the September 2020 quarter to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021 (the first extension period).

    From 4th January 2021:

    • businesses will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they suffered a decline with reference to their actual GST turnover in the December 2020 quarter to be eligible for the JobKeeper payment from 4 January 2021 to 28 March 2021 (the second extension period).

    The required decline in GST turnover percentages will remain the same:

    • 30% for an aggregated turnover of $1 billion or less
    • 50% for an aggregated turnover of more than $1 billion
    • 15% for ACNC-registered charities other than universities and schools.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    Keeping Your Mental Health in Check and Supporting Others

    With the prolonged lockdowns and tight social restrictions, combined with the financial uncertainty that everyone is facing, it is important to keep our own mental health in check and look out for others. In this Forbes article, Psychiatrist Dr. Dawn Brown discussed some tips on how you can support those struggling with their mental health:

    • Allow for a conversation. As mental health can be a very sensitive matter, start slow and let them lead.
    • Treat them with respect and understanding. Watch your language, don’t judge, and be careful not to make assumptions.
    • Encourage seeking the support they need. Your support alone may not be enough, so encourage them to talk to a professional who is equipped with more resources to help them.
    • Be supportive of positive mental health and do your part to make your workplace better.

    Meanwhile, this article focuses on some weekend habits that can help you boost your happiness and productivity. Some ideas include:

    • Going for solo dates to renew your mind and experience something new. This exploration will give you fresh sources of creativity.
    • Do a weekly personal check-in. This will reorient your life if certain aspects are off track and help you assess your emotional well-being.
    • Connect with close friends and family. Stay in touch by scheduling video calls and starting meaningful conversations. Doing this will improve your connection and make you feel better.

    Government Launches Business Continuity Website to Support Businesses Amid COVID-19

    The Australian Government has launched the Australian Business Continuity website to support businesses with staff working remotely amid the pandemic.

    The site provides free practical tools for remote communications, collaboration, workforce management, and video conferencing, as well as advice on how to best use teleworking services.

    Get in touch

    Contact us if you have any questions. We offer tax and accounting services to small business in Cranbourne and surrounding suburbs. We are expreienced accountant in Clyde, Cranbourne.

  • Essential Tips to Grow Your Family Business

    Most family business owners have a similar goal in mind – to grow the business and pass it on to the next generation of their family.

    While keeping the business in the family and getting to work with your parents, siblings, or children who share common goals can be a fun and rewarding experience, running and growing a family-owned business isn’t without its challenges. Conflicting views on business and family matters such as succession of power, rivalry, favoritism, and disposition of assets often lead to tensions and even legal disputes.

    So if you want your business to thrive while keeping family control over multiple generations, it pays to plan ahead and be prepared to navigate these complexities. Below we’ve listed some ways to avoid the most common pitfalls when managing and scaling a family-owned business.

    Financial Planning for Your Family Business

    It is important for family businesses to build a financial strategy for the long-term to withstand external impacts such as economic downturns, changes in the industry landscape, and potential local or global crises. While ensuring that you turn a profit this quarter and the next is beneficial, proper financial planning that focuses more on the goals for the next generation is what establishes growth, smooth operations, and stability for future years.

    In order to grow your family business, your financial strategies should focus on putting the interests of customers and employees first, adapting to market uncertainties, accurate budgeting, managing risks in long-term investments, and promoting social responsibility.

    Business Management Planning

    One of the most critical drivers of growth and good bottom line performance for family businesses is strategic business management planning. An effective plan in this area includes:

    • A formally agreed business ownership structure
    • Determining management control and operational oversight
    • Hiring policies for family members
    • Compensation plan for family members who are active in the business (and those who are not)
    • Succession planning

    Managing Family Issues

    Family issues are unavoidable when running a multi-generational business. Disagreements on business matters such as mergers, sales, acquisitions, profit distributions, and compensation can be serious issues.

    When it comes to compensation and profit distribution, each family member who is a shareholder expects a share of sales proceeds and salaries. The best practice is to assess this based on comparable positions at similar companies.

    It is also important to note that not because someone is a member of the family, he or she must automatically be employed in the company. Only those who can perform well should be hired.

    Some of the criteria that should be considered include the family member’s skills and capabilities, education and other training, personal motivation to join, temperament, and the business’ ability and need to support the hire. Also, a well-defined job description and performance evaluation process should be a part of the system of employment for family members.

    To ensure that the core values, principles, and ethics are sustained across multiple generations, all family members employed in the business must do their part and cooperate. Failing to do so leads to mediocre quality of output, poor customer service and customer satisfaction, as well as tainted family business reputation.

    Succession Planning in Family Business

    Succession planning refers to determining company leadership and to whom shares of the company will be left.

    This process can be tricky when it comes to family businesses as it involves resolving conflicts about assets and management. While many fail to continue operating into the second generation, and even more fail to survive into the third and fourth generations, there are tips to sustain a family business and retain control over many years including:

    • Roles must be defined clearly even if they are held by close family members.
    • Strong company leadership and governance systems should be developed and put in place.
    • There should be fair and transparent procedures for conflict resolution.
    • Robust standards for business ethics and company culture must be established.
    • Vision and focus on long-term goals that span towards the next generations should be inculcated in the minds of everyone, particularly those in leadership roles.

    Although family businesses are typically rooted in shared goals and values, family ownership itself will not guarantee that you will be able to retain family control or the business will survive many decades. However, through the essential tips shared in this article, and our guidance, you will be able to face the unique challenges in running a family business head on.

    Got a question about your family business? Please don’t hesitate to get in touch.

  • COVID-19 Business Update – 9 September 2020

    COVID-19 Business Update – 9 September 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Australia To Extend Bankruptcy Protection Rules Until End of 2020

    Australia will extend its temporary insolvency and bankruptcy protection rules until the end of this year, providing businesses a lifeline to recover from the impacts of COVID-19.

    The rules, which were first introduced in March and originally due to expire on 30 September 2020, indicate that creditors cannot issue bankruptcy notices to businesses for debts below A$20,000.

    The creditors’ notice period to act on debts could also be extended, allowing businesses to keep trading without paying rent, tax, and loans.

    Contact us if you have any questions and we’ll help create a plan for your business.

    Victoria to Deepen Contact Tracing

    Premier Daniel Andrews said on Monday that he would set up five suburban contact tracing teams to make it easier to target specific locations where people had been infected. This step is intended to further curb COVID-19 cases in the hot spot state.

    For information on state by state lockdown rules and restrictions, you can refer to this guide.

    Australia Strikes Deal to Roll Out 85 Million COVID-19 Vaccine Doses

    The government has reached a deal that would see Australian biotechnology giant CSL manufacture two separate vaccines.

    One is a vaccine being developed by AstraZeneca and Oxford University and trialled in Brazil, the UK, and South Africa, while the other is being developed in CSL’s own labs in partnership with the University of Queensland.

    If the trials become successful, CSL is expected to supply 30 million doses of the AstraZeneca/Oxford vaccine and 51 million doses of its own vaccine in early 2021.

    Businesses on JobKeeper – Pay employees by 13th Sep for fortnight 12

    For those businesses eligible for JobKeeper please ensure your wages are paid by 13th September in order to claim JobKeeper for the period started August 31st and ending September 13th.

    You can see JobKeeper Key Dates on the ATO’s website but please get in touch if you have any questions.

    JobKeeper 2.0 Bill Passed By Federal Parliament

    The JobKeeper Amendment Bill 2020 was passed by Federal Parliament this week. Below are the key changes to the scheme:

    Extending the period of operation– The JobKeeper scheme and the provisions that allow employers to temporarily vary the working arrangements (by way of JobKeeper enabling directions or agreements under Part 6-4C of the Fair Work Act 2009) will now end on 28 March 2021 instead of 28 September 2020.

    New payment rates– The current JobKeeper subsidy rate for full-time workers of $1,500 a fortnight will drop to $1,200 from 28 September 2020, and then to $1,000 a fortnight from January 2021. Meanwhile, those who worked less than 20 hours per week in the relevant reference period (being the four-week pay period before either 1 March 2020 or 1 July 2020) will receive $750 from 28 September 2020, and then to $650 a fortnight from January 2021.

    Legacy Employers– Employers who no longer qualify for JobKeeper after 28 September will be classified as legacy employers, and will have to satisfy a 10% decline in turnover to have access to modified JobKeeper enabling directions.

    Decline in Turnover Test Certificate– Employers will need to obtain a 10% decline in turnover test certificate from an eligible financial service provider, including a BAS or Tax agent.

    These modified directions include reducing an employee’s ordinary hours to a minimum of 60% of the employee’s ordinary hours as they were at 1 March 2020, but cannot result in the employee working less than two consecutive hours in a day.

    A dispute can be brought before the Fair Work Commission about whether an employer holds a 10% decline in turnover certificate for the relevant period, including a dispute about whether a certificate is valid.

    Penalty– A penalty of up to $13,320 for individuals and $66,600 for body corporates or employers will be imposed if an employer doesn’t meet the 10% decline in turnover test and knowingly or recklessly tries to use the provisions or fails to notify employees that a JobKeeper enabling direction or agreement is not continuing due to not having met the requirements.

    JobKeeper Turnover Test Requirements

    From the 28th of September 2020:

    • businesses looking to claim the JobKeeper payment will be required to demonstrate that they experienced a decline in turnover using actual GST turnover, rather than projected GST turnover.
    • businesses will be required to reassess their eligibility with reference to their actual GST turnover in the September 2020 quarter to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021 (the first extension period).

    From 4th January 2021:

    • businesses will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they suffered a decline with reference to their actual GST turnover in the December 2020 quarter to be eligible for the JobKeeper payment from 4 January 2021 to 28 March 2021 (the second extension period).

    The required decline in GST turnover percentages will remain the same:

    • 30% for an aggregated turnover of $1 billion or less
    • 50% for an aggregated turnover of more than $1 billion
    • 15% for ACNC-registered charities other than universities and schools.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    How Much Debt Can Your Business Take On?

    During an economic downturn when business is slow, a cashflow boost in the form of debt might be necessary to maintain the smooth running of your business. While there are plenty of lending options to consider including government-backed funding schemes, you shouldn’t borrow what you can’t pay back.

    So the question is: How much debt is too much?

    This timely Forbes article teaches how to calculate three important metrics that will keep you honest about how much debt you can take on. However, if you need personalised advice based on your unique business situation or some help with loan applications, drop us a message.

    Helping Your Team Overcome the Trauma of the Pandemic

    When COVID-19 hit, we witnessed a significant change in our lives. While the immediate concerns involve worker safety, disrupted supply chains, and financial losses, the pandemic can also adversely impact our mental health.

    Although some people brush off the trauma that the crisis has caused, how you cope can affect your life and your work performance in ways you may not imagine. This Harvard Business Review article outlines the things business leaders can do to support their team members.

    • Build a culture of connection by intentionally checking in with your team on a regular basis.
    • Offer flexibility and be inclusive.
    • Communicate more than you think you need to.
    • Modify policies and practices to reduce stress for everyone.

    The best part about adopting these steps is that they won’t just allow you to help the sanity of your staff during and after this pandemic, it can also make you a more effective leader even without this crisis. If you need personalised guidance on improving the overall performance of your business as you recover from the impacts of COVID-19, feel free to get in touch.

    Government Launches Business Continuity Website to Support Businesses Amid COVID-19

    The Australian Government has launched the Australian Business Continuity website to support businesses with staff working remotely amid the pandemic.

    The site provides free practical tools for remote communications, collaboration, workforce management, and video conferencing, as well as advice on how to best use teleworking services.

    Get in touch

    Contact us if you have any questions.

  • Four great ways to get more leads for your business

    It’s very rare these days that people just happen to find your business and become a client or customer with no work on your part. Your business has to grab people’s attention, turn curious visitors into leads and then convert those leads into sales.

    This means that the more solid leads you have, the greater your chances of making a sale. Solid leads are those contacts who are engaged in your business, fit your buyer persona andare at least somewhat motivated to make a purchase.

    Here are four great ways to develop more solid leads for your business this year.

    1. Target your ideal clients

    You might want your business to be relevant to everybody but the reality is that there is a specific target client who is ideal for your business. Those clients are the ones who are most likely to be attracted to your products or services and therefore the most likely to purchase them.

    These are the people to aim your marketing at. Knowing who they are and what they like helps you develop the products and services they’ll use. It also saves you money on marketing because you can target your ideal clients, rather than marketing to everybody and hoping somebody shows some interest.

    Even more important, when you get to understand your ideal clients you can build connections with them more effectively, generating leads that can turn into sales.

    2. Know your unique value proposition

    Your unique value proposition is what makes you different from your competition. Every business has something that sets it apart and therefore attracts a specific market.

    Your products or services might be of a higher quality. You might have better loyalty programs or a more specialized staff. Even the size of your business can be a unique value proposition. Smaller business can claim more personal, attentive and efficient service for their clients. Large businesses may be able to handle larger or global accounts.

    Determine what makes your business different from your competition and use that uniqueness in your marketing.

    Attend networking events

    Networking events are a great way to get some face-to-face time with potential leads. Yes, in-person marketing takes time and energy, and you can only talk to so many people at a time. But hearing an entrepreneur speak passionately about their business can be very persuasive.

    Meeting people at events gives you a chance to talk to directly to your potential clients and hear what issues they need solved.

    Just make sure the networking events you attend are relevant to your business and are functions that your ideal clients attend. Otherwise, you’ll be wasting that valuable time and energy.

    4. Create high-value content.

    With so many people using the Internet to find companies and make purchasing decisions, you need to ensure your business is easily found. That means developing high-value, informative website content that is compelling and encourages page visitors to submit their contact information.

    Make sure you use engaging calls to action. Write blog posts that drive traffic to your website. Develop tip sheets that quickly address some of your clients’ issues and get people to sign-up to receive them. Create a newsletter that clients or customers can subscribe to. The people on your newsletter subscription list become leads.

    Make certain, however, that your content is timely, engaging and relevant to your clients and your business.

    Final thoughts

    Leads don’t just magically appear out of thin air. It takes time and work to develop solid contacts that turn into paying customers. By knowing who your ideal clients are, understanding your unique value proposition, putting in some face-to-face time and developing relevant content, you can easily increase your solid leads this year. Need help growing your business? Get in touch.

  • COVID-19 Business Update – 2 September 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    COVID-19 Cases in Victoria Fall to Seven-Week Low

    Victoria, the epicentre of Australia’s second wave of COVID-19 infections, has reported a significant drop in the number of new cases, reaching a near two-month low.

    This is good news as the total lockdown in Melbourne is set to end on 13 September. Details on how restrictions will be slowly eased will be released on Sunday.

    Meanwhile, here’s a list of COVID-19 hotspots in New South Wales for your guidance.

    Australia’s Q2 GDP Shrinks As COVID-19 Pushes Country Into Recession

    Australia suffered its worst economic downturn on record last quarter due to COVID-19.

    Data from the Australian Bureau of Statistics showed the country’s $2 trillion economy shrank 7% in the three months to end-June, representing the largest decline in quarterly gross domestic product since 1959.

    This comes as Victoria remains in lockdown to prevent the spread of the virus. Also, more than a million people have lost their jobs since March when the country had to shut down entire sectors of the economy, which affected demand and investments.

    If your business has been hit by the pandemic, chat to us today so we can help you get a plan to come back strong.

    Government Launches Business Continuity Website to Support Businesses Amid COVID-19

    The Australian Government has launched the Australian Business Continuity website to support businesses with staff working remotely amid the pandemic.

    The site provides free practical tools for remote communications, collaboration, workforce management, and video conferencing, as well as advice on how to best use teleworking services.

    JobKeeper 2.0 Bill Passed By Federal Parliament

    The JobKeeper Amendment Bill 2020 was passed by Federal Parliament this week. Below are the key changes to the scheme:

    Extending the period of operation– The JobKeeper scheme and the provisions that allow employers to temporarily vary the working arrangements (by way of JobKeeper enabling directions or agreements under Part 6-4C of the Fair Work Act 2009) will now end on 28 March 2021 instead of 28 September 2020.

    New payment rates– The current JobKeeper subsidy rate for full-time workers of $1,500 a fortnight will drop to $1,200 from 28 September 2020, and then to $1,000 a fortnight from January 2021. Meanwhile, those who worked less than 20 hours per week in the relevant reference period (being the four-week pay period before either 1 March 2020 or 1 July 2020) will receive $750 from 28 September 2020, and then to $650 a fortnight from January 2021.

    Legacy Employers– Employers who no longer qualify for JobKeeper after 28 September will be classified as legacy employers, and will have to satisfy a 10% decline in turnover to have access to modified JobKeeper enabling directions.

    Decline in Turnover Test Certificate– Employers will need to obtain a 10% decline in turnover test certificate from an eligible financial service provider, including a BAS or Tax agent.

    These modified directions include reducing an employee’s ordinary hours to a minimum of 60% of the employee’s ordinary hours as they were at 1 March 2020, but cannot result in the employee working less than two consecutive hours in a day.

    A dispute can be brought before the Fair Work Commission about whether an employer holds a 10% decline in turnover certificate for the relevant period, including a dispute about whether a certificate is valid.

    Penalty– A penalty of up to $13,320 for individuals and $66,600 for body corporates or employers will be imposed if an employer doesn’t meet the 10% decline in turnover test and knowingly or recklessly tries to use the provisions or fails to notify employees that a JobKeeper enabling direction or agreement is not continuing due to not having met the requirements.

    JobKeeper Turnover Test Requirements

    From the 28th of September 2020:

    • businesses looking to claim the JobKeeper payment will be required to demonstrate that they experienced a decline in turnover using actual GST turnover, rather than projected GST turnover.
    • businesses will be required to reassess their eligibility with reference to their actual GST turnover in the September 2020 quarter to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021 (the first extension period).

    From 4th January 2021:

    • businesses will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they suffered a decline with reference to their actual GST turnover in the December 2020 quarter to be eligible for the JobKeeper payment from 4 January 2021 to 28 March 2021 (the second extension period).

    The required decline in GST turnover percentages will remain the same:

    • 30% for an aggregated turnover of $1 billion or less
    • 50% for an aggregated turnover of more than $1 billion
    • 15% for ACNC-registered charities other than universities and schools.

    Shop Local to Kickstart Economic Recovery

    Local small businesses are a vital part of our economy and the communities they represent. While the government is trying its best to protect the economy, there are many ways people can do their part and support local small businesses. Here are ways you can help small businesses stay afloat during the COVID-19 crisis.

    • Purchase gift cards from your local stores.
    • Shop online, but keep it local.
    • Order takeaway food and drinks from your local restaurants.
    • Be a little more generous than usual when giving tips.
    • Leave positive reviews online and promote them on social media.
    • Postpone instead of cancelling.
    • Join online classes if local businesses offer this option to follow social restrictions.

    The coronavirus is one of the greatest challenges of our times. If you own a small business and are struggling, please get in touch.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    How to Know Which New Product Ideas to Pursue

    Last week, we talked about ways to come up with fresh ideas to bring in more money into your business or identify a profitable niche for a new business.

    Now that you have a list of new product ideas, the next logical step is to determine which of these are worth pursuing. Check out this Forbes article that discusses ways to determine if your customers want your new product and how to make sure you’re investing your time wisely.

    If you need guidance in boosting your profitability, don’t hesitate to get in touch with us for expert business advice tailored specifically to your business

    Taking Time Off From Work During the Pandemic

    With the extended periods of lockdown and working from home, days become indistinguishable from one another and the line between work and life starts to blur. As people tend to work longer days, not to mention the fact that we are still in the middle of a pandemic, managing stress levels has become more important than ever.

    So what does taking some time off from work during a pandemic look like? This Forbes article shared some steps to take a work-free vacation, including:

    • Truly disconnect from work by setting an out of office message on your email and turning off notifications that will tempt you to work.
    • Prepare for your time off by figuring out what must be done ahead of time and which ones can wait until you get back.
    • Sometimes, you can only disconnect from work 90% of the time. So establish boundaries by setting a specific time frame you’ll allow yourself to address urgent issues and check in on critical projects during your vacation.
    • If you live in an area with strict social restrictions, you’ll need to get creative on how you’ll spend your time off. Staying at home doesn’t mean boring- spend quality time with your family, try out new activities, or meet with your friends virtually.

    Regardless of how you spend your vacation, the important thing is to use this time to rest, relax, and recharge your body and mind. Do this, and you’ll get back to work feeling refreshed.

    Get in touch

    Contact us if you have any questions.

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  • Adjustments to Employee Eligibility for JobKeeper

    Adjustments to Employee Eligibility for JobKeeper

    The ATO has released further guidance on the recent changes to the JobKeeper scheme in relation to the timing of an eligible employee.

    From JobKeeper fortnights commencing 3rd August, the key date for eligible employees has changed to 1 July. In the past, an employee had to be on the books as of the 1st of March in order to be eligible for the JobKeeper wage subsidy. This change is to allow for businesses that started opening up and taking on new employees after March.

    Any full time or part time worker as of 1 July or any casual employee with over 12 months regular and consistent service of a business is an eligible employee for JobKeeper purposes.

    Full time or part employees who commenced work after 1 March and before 1 July will now be eligible. However, there are also several other categories of employees who might become eligible under this change over this time frame:

    • Casuals who with the extended date now meet the 12 months service requirement;
    • Employees who turned 18;
    • Employees who meet the Visa requirements.

    All eligible employees must be provided the nomination notice by this Friday 21st August. Note that this only applies to previously ineligible employees who now are eligible. Any employee who was eligible as at 1 March keeps this status and there is no need for them to confirm their eligibility again.

    There’s also some good news for businesses on JobKeeper as the ATO has announced employers will have until 31 August to ensure these new eligible employees are paid the minimum $1,500 per fortnight wage requirement.

    Further guidance on JobKeeper 2.0 (i.e. the payments after September) will be released shortly.

    If you have any questions regarding JobKeeper, please do not hesitate to contact us.

  • How to grow your network without networking events

    How to grow your network without networking events

    Networking can be a key way to keep your business growing.

    Regardless of your industry or business size, it is hard to ignore the benefits of forming professional networks for potential partnerships, expanding your client base, and scaling up. However, while we are all constantly reminded about the importance of networking, reaching out to grow your network isn’t the same now thanks to the COVID-19 pandemic.

    Social restrictions to prevent spreading the coronavirus do not allow traditional networking approaches such as in-person conference events or face-to-face business meetings over coffee or dinner. However, this doesn’t mean that you should put all your networking efforts on hold, because no one can really tell when this global crisis will end.

    In fact, it becomes more important than ever to try new ways to increase your sales and ensure that your business stays afloat during these difficult times. In this article, we will explore a couple of strategies to keep up your networking efforts during the COVID-19 crisis and well into the future.

    Host Webinars, Online Courses, or Podcasts

    Webinars, online courses, and podcasts give you a chance to establish thought leadership and be at the forefront of your industry.

    Now that most of the world is in lockdown, it is the perfect time to start that project you’ve been meaning to work on but haven’t found the time. When done right, you will be able to engage people in your existing network and add more people to your database.

    Take the time to do some planning on the industry-relevant topics that you’d want to discuss on your webinar, online course, or podcast, and include interactive activities that will keep your audience engaged. Don’t forget to let the participants know about your other courses or webinars, as these subscribers can help you keep your network growing.

    Offer Free Downloadable Content

    Whether you are creating fresh content or repurposing existing content that you already have, aim to provide value that will attract new people to your network.

    You might create ebooks, courses, whitepapers, research reports, and other valuable pieces of content that people in your industry will find useful. Offer your content to your current contacts and promote them even further through social media, email marketing.

    Take Part in New Online Communities

    As the COVID-19 pandemic changes the way we interact, you should move online to connect with more people. Join virtual discussion groups and online communities that will give you an opportunity for targeted networking.

    When you do an online search of relevant groups, you will find that there are thousands of them. You don’t have to join every single one– just choose two to three that are most suitable and start participating. Engage by reacting and commenting on other people’s posts, provide useful tips and consider sending a direct message to start a conversation. Don’t try to be too “salesy” though.

    Tailor your messaging

    When trying to connect with people online, don’t just send a stock-standard template– develop strong relationships by maintaining sincere and genuine interactions. In other words, don’t send a message that you wouldn’t be comfortable receiving.

    Make the effort to personalise each email instead of sending a generic message. You can reference a past event that you both attended or projects that you worked on together in the past, if there are any, in order to show authenticity when reconnecting.

    If this is not applicable, you can also share encouraging words and stories, or ask if there’s anything you can help with.

    Participate in Philanthropic Initiatives

    Times of crisis teach us that we are stronger if we work together. In these trying times, there are a lot of initiatives to help those in need.

    By collaborating with charitable organisations and participating in volunteer programs, you are hitting two birds with one stone– doing some good for society and tapping into opportunities to expand your network.

    Aside from adding people you’ve worked with in these philanthropic events into your contact list, you can also share these experiences on social media.

    Keep Growing Your Network

    These are tough times for many people, and the idea of networking may not be on your priority list. However, it is essential to keep working on those human connections, as the effort you invest in making them will have a significant return on your business in the long run. By nurturing and strengthening your relationships during this period, you will enjoy positive impacts that last until better times return.

    Got a question?

    Want to chat about growing your business? Please don’t hesitate to get in touch with us.

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  • A Guide to Business Recovery in a pandemic world

    As you know, the COVID-19 pandemic is not just a public health issue, it’s also caused lockdowns and financial worries on a global scale.

    Small businesses are not strangers to the impacts of the pandemic. In a survey by the International Trade Centre (ITC) among 1,200 businesses in 109 countries between 20 April and 4 May, the pandemic has strongly affected 60% of the businesses. The results of the survey also show that two-thirds of small businesses are severely hit, with a high risk of permanently shutting down within a matter of months. Almost all business sectors have been experiencing declining profits, liquidity that is drying out, and even bankruptcy.

    Although the short-term outlook varies depending on your industry sector, it is important for all business leaders to set up a strategy that will guide their way towards recovery. If you want some tips on how to hit the ground running after the crisis, this guide will outline the steps to get your business back on track.

    Assess the Damage

    Before taking any action, the first thing you need to do is to assess the financial impacts the pandemic has had on your business. You can determine the impact by checking your key numbers.

    Take a look at your financial statements, especially the profit and loss or cashflow statements and compare the data to the previous year. If you have any questions about the financial side, please feel free to ask us. Aside from knowing and understanding your numbers, you also need to be mindful of any other ways that your business has been adversely affected. You have to account for factors such as the reduction in your workforce and customer churn when preparing a plan to rebuild.

    Rethinking Your Business Plan

    What may have worked for your business before COVID-19, may not deliver the same results in the current climate, or the post-pandemic world. Now is a good time to fine tune your business model and think about how you can pivot and adapt.

    For example, some people may still remain cautious about going to physical stores even if lockdowns are easing. That means you could consider strengthening your online presence and digital capabilities to accommodate customers who prefer online shopping.

    You’ll also find a bunch of useful resources online including free webinars and other tools you can use to address coronavirus-specific challenges. We’d also suggest you chat to your trusted business advisor for more focused and personalised guidance.

    As you rebuild your business, you need to pay attention to trends in your industry as a whole and try to spot untapped opportunities. Be aware of your business’ strong and weak points and adjust accordingly.

    As the coronavirus seems to have flipped the business world on its head, it might also be time for you to revisit the goals you’ve set to make sure that they are still feasible given the current market conditions. After setting realistic goals, you will then need to adjust your action plan to get towards those goals. Get in touch with us if you have any questions.
    Additional Funding for Your Recovery
    Unless you had a large amount of cash before the pandemic started, it is likely that you may need some additional financial support to jumpstart your business.

    There are a lot of funding options for small businesses that you can consider including government-backed business loans, wage subsidies, grants, and other support schemes. Chat to us to find out what’s best for you.

    Assess Your Budget

    As we come out of the pandemic, expect that you will have to spend money before you can make money. For instance, if you had to lay off employees when the coronavirus hit, you may have to spend money on hiring and training new employees if you can’t rehire the people that you had to let go. You might also need to prepare for additional spending on cleaning, inventory and marketing post-pandemic.

    Whatever your additional costs are, the key is to have a clear idea of the necessary spending that you need to budget for and which ones can be reduced or eliminated so you can make the most of the revenue that is coming in. As much as possible, keep your operating budget lean so you have the capacity to invest in future growth opportunities.

    Develop a Timeline

    As much as you want to get all business matters sorted out at once, this is far from realistic. Try to take stock of where everything is up to and decide what to prioritise. From there, create a timeline that you will follow to get your most important business activities done first.

    While you accomplish the steps in your action plan, make sure that you’re tracking your progress. If possible, do a weekly check of what’s working and what’s not, and then make the necessary tweaks. Don’t waste time and resources on business activities that are not producing a solid return on investment. As your business starts to return to normal, you might transition to reviewing your financials on a monthly basis.

    Prepare a Contingency Plan

    The COVID-19 crisis is a wake-up call that shows us unexpected events such as this can disrupt your small business at any time. Learn from this experience and prepare a contingency plan that will cushion your business from possible future shocks.

    Aside from thinking outside the box and having a Plan B (and even a Plan C, D, and E) that will help you prepare for the worst, improve your position in tough times by building up your cash reserves, paying down your debt, cutting down on non-essential spending, and increasing operational efficiency by streamlining processes and boosting your employees’ productivity.

    Leading Your Business Towards Recovery

    While COVID-19 has affected nearly every person and business in some way, you should take into your own hands the task of finding the light at the end of the tunnel. In order to cope with the changes and find your way to the so-called “New Normal”, you must be agile enough to step up your game and confront the business challenges now and in the uncertain times ahead.

    While you prepare to get your business back to full speed, it also helps to have a business expert to guide you in rethinking your business strategy and rebuilding your business into a more resilient one. If you need personalised advice about your specific situation, get in touch with us so we can work out a plan.

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  • Preparing for the end of JobKeeper

    Since the government announced the $70-billion JobKeeper program to support businesses and their employees during the COVID-19 pandemic, many small- and medium-sized businesses and non-profit organisations heavily relied on this scheme to stay afloat.

    According to a recent survey by the Australian Institute of Company Directors on the impact of COVID-19, over 40% of the respondents reported reliance on JobKeeper payments. 47% of SMEs indicated that the JobKeeper Scheme had provided the most relief.

    So given the deep reliance on JobKeeper and the changes coming in September, now is the time to think about how your business will be impacted. If you’re still eligible for JobKeeper at the end of September, you will not be receiving the same amount as you are now. If you are no longer eligible, you will not be able to receive this wage subsidy support at all.

    As a business owner relying on the relief from this scheme provides, the end of JobKeeper could create some concerns. So what exactly can you do to prepare the end of the JobKeeper program?

    Conduct Scenario Planning

    Planning makes a huge difference. So before we get to the end of the JobKeeper program for you, make sure that you have explored various scenarios for the future and plan for these accordingly.

    Your scenario planning should include thinking about the worst possible scenario and preparing for it. Now is also the time to revisit your business and know which levers can you pull in the event that the government wage subsidy scheme ends earlier than expected.

    Secure additional credit lines, liquidity, or equity for your business if needed. Chat to us and we’ll help map out a plan together.

    Evaluate Your Business Model

    Many businesses have developed creative ways to pivot during the pandemic. Restaurants have focused on takeaways, fitness centres have launched online sessions, and others have created totally new products or services.

    What can you do to reimagine your existing business model and understand new industry norms and market trends? Don’t just wait for your peers to do something and follow suit. Those who strategise and act first tend to find their way to the front in their industry compared to reactive players.

    Keep nimble

    In today’s business landscape, adaptability and flexibility are the key to surviving and thriving. The unprecedented global crisis has put us in a tricky situation, but being flexible in the way you do business can help you roll with the waves.

    From remote work arrangements to the way you design your payment models for your customers, there are countless ways to adopt these characteristics that will help you scale back quickly even as the government support ends.

    Review Your Expenses and Financing Arrangements

    Run your business as lean as possible and cut down on unnecessary expenses so you can save as much cash as you can while you still have support from the JobKeeper program. By keeping a bit of a war chest, you will be in a stronger financial position when it ends.

    Additionally, if business is picking up, you might be in a good position to secure additional credit. You can also look into refinancing your existing obligations.

    Keep in mind that insufficient cashflow and capital can easily throw your business off track– so secure your access to the finance you need to carry on and boldly face the uncertain months ahead.

    You Don’t Have to Do it Alone…

    In these unpredictable times, changes such as the early end of the JobKeeper program can have a massive impact on your strategy and direction. We understand that these events can be confusing and frustrating, but you don’t have to face these business challenges alone.

    It makes perfect sense to work closely with your trusted business advisors. If you need professional guidance at this time, please feel free to get in touch with us. We’ll help you strengthen your position now and give you a better chance of thriving in the future.

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  • More JobKeeper changes expected

    7 August 2020

    You may have heard the news that Treasurer Josh Frydenberg has announced the government will expand the JobKeeper scheme again. This comes a few weeks after announcements of JobKeeper 2.0 to start at the end of September.

    Below is a roundup of what has been announced and what we expect to see, but please note that this is not legislated yet and is still subject to change. Again, we appreciate your patience as we work through the changes and what it will mean for your business.

    Two significant changes to JobKeeper have been announced: one is to the business turnover requirements and one to the eligible employees requirements.

    Business Turnover Test

    Previously:

    Previously a business would need to have experienced a decline (by the requisite amount in their turnover) in both the June and the September quarters to be eligible for JobKeeper in the December quarter.

    The change:

    Now the government is saying businesses only need to be down in the September quarter. This takes into account that some businesses did okay in April to June, but have suffered in recent months. This is welcome news for those in Victoria who may be struggling in July, August, and September given the Stage 4 lockdowns.

    Eligible Employees Test Changes

    Previously:

    In the past, an employee had to be on the books as of the 1st of March in order to be eligible for the JobKeeper wage subsidy.

    The change:

    Now, the government will change the eligibility to also qualify employees that were hired as of the 1st of July.

    This is to allow for businesses that started opening up and taking on new employees after March. Those employees will now join the JobKeeper program over the September quarter.

    Payment amounts

    There has been no new changes announced to the payment amounts for JobKeeper 2.0. As it stands, the next phase of JobKeeper will start at the end of September at a reduced rate. The subsidy will be reduced from $1500 per fortnight to $1200 per fortnight for full time workers and those working more than 20 hours per week. For those working less than 20 hours per week, they will receive $750 per fortnight.

    From 4th January 2021, these payments will fall to $1000 per fortnight for full time employees and to $650 per fortnight for those working less than 20 hours per week.

    Thank you

    Thanks for your patience as we work through these changes. We will continue to keep you updated as we have more news.

    As always, we appreciate your ongoing support.

    If you need help call us on 1300 724 829

    We are here to support you in this hard time if your business need help.

  • Easy ways to build an online business

    Easy ways to build an online business

    More and more people are leaving their office jobs and setting up an online business these days, especially because of COVID-19/ Running an online business offers a way for you to work from home and be your own boss. It may sound like an overwhelming process, but many entrepreneurs find it fulfilling.

    Happy Women From Ordering Products From Customers Business Owners Who Work Home White Backg 1150 8102

    Here are some tips to increase the chances your small online business will be a success, and you’ll be happy with your decision.

    1. Decide what your online business will be

    There are two important factors to determining what your online business will be: what you enjoy doing and what there’s a market for. If you’re lucky, there will be a market for something you like. Sometimes, however, you have to do a bit of digging to find something that you enjoy and that other people require.
    To be successful, your business has to fill a need. You don’t have to be the only business of its kind in your area—in fact, other existing businesses prove there is a need for your goods or services—but it still has to offer a solution to an issue people face. Without that, you won’t have enough clients or customers.
    Conduct research to ensure there’s a market for a product or service you like offering. There’s no point in running your own business if you don’t like what you’re doing or if no one will buy it.

    2. Build a website

    You need a website for your business. It markets you 24 hours a day and, if you’re an online store, it gives you a place to sell your products. Your website must have engaging content that includes keywords, a user-friendly design, and a way to collect email addresses so you can continue marketing new goods and services to your website’s visitors.

    It should also provide an easy way for clients or customers to contact you to ask questions or set up an appointment. If customers have to click too many times, they’re likely to just leave your site.

    If writing content and designing websites are your things, great. If not, it’s worth looking into hiring a writer and/or designer to help you. Your content and your design are vital to the success of your online business, so although it will cost you a bit in the start, it’s worth it, in the long run, to invest in your website.

    3. Establish your reputation

    As with any business, your reputation will go a long way to ensuring your business has a steady stream of customers and clients. That means you need to build a positive reputation. Deliver your goods or services on budget and on time. Address customer concerns or issues. Be easy to reach.

    Market yourself on social media to build followers and establish your brand. Social media can be used to drive traffic to your website and it encourages those who like your company to share their experiences as well, which also builds your reputation.

    You can also write a blog or other content that viewers will find useful and that will establish you as an authority in your industry.

    Final thoughts

    Running a business takes time and energy, but starting an online business doesn’t have to be an overwhelming process. With a bit of thought and planning, and by creating compelling content that attracts viewers, you can easily start a successful online business of your own.

    Get in touch with us if you have any questions about your business.

  • JobSeeker income-support payments will change this September

    The PM recently announced changes to the JobSeeker program are coming. Here is an overview of the changes.

    The JobSeeker scheme has been extended but rates have been cut and eligibility has been tightened.

    The JobSeeker coronavirus supplement will continue for another three months but it will fall from $550 to $250 a fortnight. That means those on the program will receive $815 a fortnight after September 2020.

    The revised JobSeeker program will also increase the income-free threshold to $300. That means recipients can earn $300 per fortnight before facing a reduction in their payment.

    At the end of September, the government will reintroduce the assets test to determine eligibility for those payments.

    From August 4th, those on JobSeeker will be required to connect with employment services and search for jobs at least four times a month, with penalties for those who refuse a role.

    The Prime Minister has not ruled out further extensions and says the scheme will be reviewed again before December.

    As always, please get in touch with us if you have any questions.

  • JobKeeper changes coming in September

    The government has announced changes to the JobKeeper scheme. The Treasury’s review found that the subsidy was still “needed” but required a “test to ensure that JobKeeper is well targeted”.

    Be prepared

    This means there will be changes to your current situation and your entitlements will be affected. The details of the changes are being announced now and we will ensure our clients are fully informed as to how this will affect them once we have processed the finer details of these changes.

    What’s changing?

    The JobKeeper subsidy has been extended to March 2021, but with some changes. Here is an overview of what’s changing and when.

    JobKeeper 2.0

    The next phase of JobKeeper will start at the end of September at a reduced rate. The subsidy will reduce from $1500 per fortnight to $1200 per fortnight for full time workers and those working more than 20 hours per week. For those working less than 20 hours per week will receive $750 per fortnight. This will be based on the amount of hours worked in February (pre-coronavirus).

    JobKeeper 3.0

    From 4th January 2021 these payments will fall to $1000 per fortnight and to $650 per fortnight for those working less than 20 hours per week.

    A new test to see if businesses are eligible

    From October, the payment will be subject to a new eligibility test which assesses whether the business recovered in the last 6 months.

    Reassessments in October and January

    In early October, businesses will need to prove they’re in financial distress (showing a decline of at least 30%) in the Jun 2020 quarter in order to be eligible for the October – December scheme.

    This will need to be proven again in early January based on September quarter figures.

    Please note: details surrounding these changes are yet to be legislated so they are subject to change. As more details come to hand, we will pass them on.

    Thank you

    Once again we thank you for your support and request your patience as we work through these next set of changes and its ramifications for you.

    Once we have all the information on hand from the Government and the ATO and have understood what it means for you, we’ll be in touch.

    What’s next?

    Take the time now to prepare for the future. It would be wise to prepare a budget and cashflow forecast now to ensure you are ready for these changes that are coming. We are happy to help on this front so please get in touch if you have any questions.

  • COVID-19 Business Update – 15 July 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Tightening restrictions as COVID-19 cases top 10,000

    Restrictions have tightened back up in some states in an attempt to contain a fresh outbreak of COVID-19 in the country’s southeast, which pushed the total number of cases in the country beyond 10,000. While Australia has avoided the high number of COVID-19 casualties of other nations through strict measures, an increase in community-transmitted cases in Victoria and new cases in New South Wales is a cause for action.

    South Australia cancelled plans to reopen its border to New South Wales on July 20, while Queensland introduced a mandatory two-week quarantine for those who have visited two areas in Sydney’s western suburbs.

    COVID-19 Restrictions Guide for Each State

    Since the government announced a three-stage plan in May to ease restrictions across the country, Australians have been slowly emerging from COVID-19 lockdowns. However, from midnight on 8 July, the Melbourne and Mitchell shire returned to stage three lockdown for six weeks.

    As COVID-19 restrictions vary across the different parts of Australia, it can get confusing for some. This guide will help you navigate through lockdown rules, including how far you can travel, what types of businesses are open, and guidelines on social gatherings for each state.

    Australian Made and eBay Partner Up to Grow Aussie Brands Online

    Australian Made and eBay have partnered to support local manufacturers grow their online business through a dedicated ‘Australian Made on eBay’ hub. This will allow eBay Australian small- and medium-sized businesses the opportunity to be discovered by 174 million international customers. The hub will feature accredited products across a range of categories, including fashion, health, beauty, automotive, and home and garden.

    With the return to lockdown conditions in some parts of Australia, online sales will likely continue to be increasingly important throughout the remainder of 2020. If you want to re-evaluate your business model and strategy, don’t hesitate to get in touch with us for more personalised business advice.

    Payment summaries have changed

    Last year’s introduction of Single Touch Payroll (STP) means that tax time this year will be a little different.

    Employers are now required to report pays, taxes and superannuation information directly to the ATO each payday through STP.

    Employers that do report this way will not have to give you a payment summary as they usually would at this time of year. Instead, employees will get an end-of-year income statement in ATO online services through myGov.

    All employers will eventually report in this manner.

    Employers that do not report to the ATO in this way will still need to provide a payment summary at the end of financial year.

    ATO Tax Time Toolkit

    The ATO’s Tax Time Toolkit has some useful guides for small businesses on topics such as: home-based business expenses, motor vehicle expenses, travel expenses and pausing or permanently closing your business due to Coronavirus. Ask us if you have any questions.

    Boosting Your Digital Capabilities

    Small businesses across Australia can access individual support to grow their digital capabilities through the Australian Small Business Advisory Services Digital Solutions. This program offers small businesses with fewer than 20 full-time employees and sole traders with high quality advice on a range of digital solutions to meet their business needs at a subsidised rate. More information can be found here.

    Running a business in a post-pandemic world

    They say the worst of times can bring out the best in people– and this is also true for businesses. Last week, we put businesses showing resilience in the face of adversity in the spotlight, and shared the creative ways they serve their customers and communities amid the COVID-19 crisis.

    This week, we talk about the hallmarks of an organisation designed for speed, as outlined by McKinsey & Company (see page 40). Below is a list of characteristics of operating models they’ve identified that result in faster speed to market, increased customer responsiveness, greater efficiency, and enhanced employee satisfaction. These characteristics will help companies stay competitive in the post-pandemic business environment:

    • Flatter organisations with less hierarchy and streamlined decision rights
    • Faster information flows and decision-making, powered by embedded data and analytics
      • As number-crunchers – we love this one!
    • Cross-functional teams collaborating to tackle common missions through test-and-learn approach
    • Flexible ways of working, including affinity for hybrid remote/ in-person teams
    • Dynamic allocation of talent deployed against mission-critical priorities
    • Agile, resilient talent able to move fast, adapt to change, and continuously learn

    This Forbes article also shares tips on how to future-proof your business for a post-pandemic workplace, including:

    • Making flexibility as a core benefit
    • Upgrading equipment and investing in technology
    • Prioritising employee health and wellness
    • Increasing communication
    • Investing in management development
    • Creating a sustainable company culture

    The future of businesses will no longer be determined by what has worked, but instead, what will work in the post-pandemic world. While the “when” and “how” of the end of the pandemic remain unknown, reimagining your organisation and re-evaluating the way you work can help you rise to the occasion and lead your business as the “new normal” we hear so much about takes shape.

    If you want to talk about your specific situation, please get in touch with us and we’ll help you work out a strategic plan.

    Second Round of Cash Flow Boosts

    If your business has received initial cash flow boosts, you’ll automatically receive additional cash flow boosts when you lodge your activity statements for each monthly or quarterly period from June to September 2020. The amount will be equal to the total amount of initial cash flow boosts you received and will be split in either two or four installments, depending on your reporting period.

    If you lodge:

    • quarterly – you will receive 50% of your total initial cash flow boosts for each activity statement
    • monthly – you will receive 25% of your total initial cash flow boosts for each activity statement

    You can find more information here, or alternatively, you may contact us if you have a question.

    State grants and support programs

    Along with national assistance, each state and territory has announced various grants and assistance packages which you may be eligible for. You can find a roundup of these grants on the Government’s Business website. Alternatively, you can also contact us so we can discuss which options are most suitable for your business.

    Minimum Wage Increase

    The Fair Work Commission has announced a 1.75% increase to minimum wages. This will apply to all award wages and the increase will start on 3 different dates for different groups.

    You can find the complete list of awards in each group here.

    For those not covered by an award, the new national minimum wage will be $753.80 per week or $19.84 per hour. This applies from the first full pay period starting on or after 1 July 2020. If you’re not sure which award applies or if you have any questions, get in touch with us.

    Instant Asset Write-Off Expanded

    The Instant Asset Write-off has been extended to 31 December 2020, which means Australian businesses with less than $500 million annual turnover will have more time to take advantage of the write-off and invest in assets to support their business. This government initiative is designed to help the economy reopen and boost economic growth. The instant asset write-off applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided they each cost less than $150,000.

    Contact us so we can walk you through the different thresholds, exclusions, and limits.

    COVID-19 Safety Guidelines

    SafeWork Australia has put together useful guidelines for a range of industries. The guidelines provide clarification on WHS laws, workers’ rights, risk assessments, hygiene, emergency plans and more.

    What’s next?

    We’ll keep you updated if anything changes but now we’ll shift to helping you get a plan in place for the future. Please get in touch to discuss what’s next for your business.

  • Do you have more questions this tax time?

    What a year!

    We don’t need to tell you that this year has been “unprecedented”. With so many stimulus packages, support programs, tax changes and business shutdowns this financial year is set to be like we’ve never seen before.

    First and foremost we appreciate your support and patience as we continue to wade through those programs and what they mean for business owners and individuals.

    Have a question?

    We also understand that most people are more questions than normal this year and we want to let you know that we’re here to help. Some of the questions we’ve been getting recently include:

    • Do I have to pay tax on JobKeeper
    • What can I claim when I’m working from home
    • My business has to shutdown again and I’m worried about cash – what can I do?

    If you have any questions at all this financial year (or down the track), please don’t hesitate to get in touch.

    Wishing you all the best in the coming months.

  • Payment Summaries have changed

    Last year’s introduction of Single Touch Payroll (STP) means that tax time this year will be a little different.

    Employers are now required to report pays, taxes and superannuation information directly to the ATO each payday through STP.

    Employers that do report this way will not have to give you a payment summary as they usually would at this time of year. Instead, employees will get an end-of-year income statement in ATO online services through myGov.

    All employers will eventually report in this manner.

    Employers that do not report to the ATO in this way will still need to provide a payment summary at the end of financial year.

    Employers and BAS agents have until 14 July 2020 to complete all STP finalisations so please give them time to work through this process. You may be eager to get your tax sorted but this year it may pay to wait.

    As always, please contact us if you have any questions.