Posts Categorized: COVID-19 strategies

Tips for working from home

COVID-19 now sees a staggering number of people working from home.  One just has to see how few people are driving to work in the morning!

However working from home does present some challenges.  In particular, many must be working in poorly set out working areas that may already be causing discomfort and harm.

I have therefore asked Jeremy Balbin from Centre4Health to provide some tips.

I highly recommend Jeremy to you.  Jeremy has done a terrific job loosening up both my neck and middle back as my recently lower golf scores can attest.

You can check out his tips at:-

https://www.facebook.com/centre4healthau/photos/a.239635736669008/547985702500675/?type=3&theater

You can read more about Jeremy and his team at https://centre4health.com.au/our-team

How can I benefit from all the stimulus packages?

How can I benefit from all the stimulus packages is understandably the most common question we receiving at the moment.  Stimulus packages and other relief concessions are coming thick and fast from both the Federal and State governments. 

In such tough times, any dollar which comes back in the door is welcome!

We are selectively working through all these opportunities as we undergo planning sessions with our business clients.

We are happy to answer any question you may have.  In the meantime though you may wish to read about every offer on the table within the summary that can be found at https://tinyurl.com/s7bxqh5. 

We subscribe to a number of research house services.  One of those houses provided the attached white labelled report which we are allowed to include our details.  Everything else we write is ours!

Whilst many are focused on what concessions they can receive, absolute focus must be centered on how the business is likely to perform in the coming months and what can be done about.  In this regard, we encourage you to read all the blogs.  In particular,  watch the short videos posted within this section.

 

Free credits with Google

Google will provide up to $800,000,000 of  those affected by COVID-19. 

Google will donate $250m to the World Health Organisation.

Most of the rest will take the form of advertising credits to those that have advertised with Google in the last 12 months.  Check your balance.  You may have a large credit there ready to use!

JobKeeper payment

The JobKeeper scheme was announced late yesterday.  It provides for government funded fortnightly payments of $1,500 to eligible employees.

You can read more by clicking on the following link to access the Treasury fact sheet:-

https://tinyurl.com/vouhffq

Important points to notify are:-

How do you qualify?

A small business will qualify if turnover has fallen by more than 30% compared to the same month last year.

What do you need to do now

Register which you can do at:-

https://www.ato.gov.au/general/gen/JobKeeper-payment/

What you will need to do going forward

  • Supply to the ATO employee details as at 1st March 2020.

  • Notify all employees

Fine detail

A number of questions arise such as:-

  • What is the position for employees of a new business?

  • What if the first half of March was OK? 

The fine details will come so please return to read updates.

 

The perils of discounting (1 min video)

Discounting is a commonly employed strategy in tough times.  It can also be a good way to sell old stock.  

It can however be a faster way to the end.  

As we show in the following video, discounting needs to be augmented with other strategies.

https://www.loom.com/share/fbabc5c1a4934dc3927c08149bb4fda1

We welcome the opportunity to explore with you if discounting is appropriate and how to mitigate the bottom line loss.

 

New employer stimulus

Another stimulus is currently being announced!  The Prime Minister and Treasurer are currently answering questions on a new employer stimulus package.

Please return to this page for further details as they are revealed.

It is also pleasing to her that the Centrelink partner income threshold to be increased from $48,000 to $79,000.

 

Relief to SMSF property owners

Thankfully the ATO is on record as to providing relief to SMSF property owners.

In today’s climate, many landlords are reducing the rent to help retain tenants. 

However, there has been concern that a self managed super fund charging less than market rent on a commercial property to a related party would still constitute to a breach/contravention.

The ATO has now stated that they will not take action against a temporary rental reduction in either the remainder of this 2019/20 year or 2020/21.

So what is an acceptable rental reduction? 

That remains to be seen and should be monitored.  However, the most common story over the last two weeks seems to be that rents are being reduced by between a third and a half.

 

How long can you last without customers (1 minute video)?

How long can you last without customers? 

It is a question most businesses are asking at the moment.

And it is one that keeps people awake.

We can show how long you can last – click on the following video to see an example.

https://www.loom.com/share/588fb889519e4eb19a853f6adc097976

Moreover, we can show the outcome from changing multiple drivers in your business.

So don’t like awake at night worrying; replace worry and fear for a predictable future.  And there’s nothing to fear from the meeting itself as we use Zoom Meetings.

 

Early release of super

Part of the first stimulus package was the to permit an early release of super within the next 6 months.

For some, this may be what gets them through this period.  But it will not be appropriate for many.

There are many reasons as to why one should not take up this option. 

Moreover, it should NOT be done without first obtaining financial planning advice.  You must ensure that taking super out before retirement is an appropriate course of action.

The qualifying rules can be found at https://tinyurl.com/tojexfp

If you are with a public fund, you may find that they do not offer an early release of super – which is understandable considering the cost to temporarily changing all their systems.

If you have your own self managed super fund, then you should assume that you can’t.  Many trust deeds wont permit such a withdrawal before age preservation age – so if you do pull money out then it is a notifiable breach.  

So please don’t assume that you can withdraw some of your super or that it is your best course of action.  Seek advice first.

 

Staying afloat with better supplier terms (2 min video)

Want to know how much lost sales can be covered by getting a 5% discount from suppliers.

You might be very surprised.

Please click on the following link to find out:-

https://www.loom.com/share/f1f52aba9c164833a94cf2c959baa2f4

We welcome the opportunity to show you how you can safeguard your business in today’s COVID-19 by making any change to the key drivers in your business.