Posts Categorized: General
State government rent relief
The state government announced this afternoon its own rent relief package. The fine details are due to be released next week when the legislation is put before state parliament..
Most of the funds and attention will no doubt be directed at residential leases. A pool of funds will set up to help distressed tenants.
Today’s announcement said that Land Tax relief would be given to landlords to help them to wear a rent reduction. It is not clear whether that is for commercial property landlords as well as residential landlords.
We will let you know of the fine details when they are known.
Register for #2
VECCI (Victorian Chamber of Commerce and Industry) is looking to do more to support businesses in Victoria.
So much so that they are offering free membership for the next year.
VECCI is a terrific resource in opening doors to those who are importing and exporting. But every business can benefit as they offer:-
-
Two free employment and HR support calls.
-
Free attendance at 4 networking events
-
$700 training credit
-
Amongst many other benefits
Why not give them a go – you have nothing to lose and those HR support services may prove invaluable.
You can register at:-
Standing down and retrenching employees
Businesses find themselves in desperate times. Most businesses are cutting costs in order to survive. And many businesses are laying off workers due to dramatically lower sales. Even so, there is a right way and a wrong way in standing down and retrenching employees.
Fairwork Australia has a useful article which you can access from the following link.
You should only be standing down and retrenching employees after ensuring that you have complied with FairWork rules and employment agreements.
Moreover, we recommend engaging an HR specialist to guide you through this process.
And before standing down and retrenching employees, check to see whether you don’t have to. It just might be that JobKeeper (assuming you qualify) helps you retain those employees. You will almost certainly need them when times improve.
So please factor in these considerations should you be considering standing down and retrenching employees .
JobKeeper – unannounced details
JobKeeper was passed by by both houses of parliament yesterday.
But it is yet to be finalised.
The bill as passed gave Treasury the power to legislate the rules. They have yet to do so. On past experience, one would be concerned that they narrow the rules and prevent many intended recipients from receiving this crucial stimuli.
We also await details as to what discretionary powers the ATO will give themselves.
We will post as soon as we have clarity on exactly how this system will operate.
Zoom meeting security
If you are like us, we are now using Zoom so much more than ever before.
If so, you should be concerned about the security of Zoom Meetings.
It is not that difficult to randomly guess the web address of a Zoom meeting given the relatively short identifying number.
They have been many stories circulating about Zoom meetings being bombed by some uninvited “guest.”
That is unfortunate as Zoom has a built in security feature which enables entry into a meeting only after entering a password.
We use this feature when inviting guests.
If you are new to Zoom, you might also appreciate the following tips:-
-
Ask your attendee to log in at least 3 minutes beforehand.
-
Sit in a well lit area.
-
If there is a number in the meeting, consider turning your microphone and video off to avoid dropping out.
-
If connecting via your laptop, have it plugged in.
Lodgments and ATO assistance
It is critical that you keep:-
-
Lodging activity statements.
-
Reporting under Single Touch Payroll
-
Meet your super guarantee obligations
Whilst there are various forms of relief available, you are still required to meet all your ATO compliance obligations.
And whilst there are payment extensions to a certain ATO taxes or some are being waived, there is no extension in regard to employee super. It is also important to note that the two-part penalty of a 200% penalty and non-deductibility of anything paid late remains in place.
Paying employee’s super has always been a business’s number one obligation; now even more so!
The deadline for reporting and paying March quarter superannuation is April 28. As some clearing houses take up to 8 business days to pass on any payment into a super fund, we strongly recommend paying the super by this time next week.
The stimulus packages include such concessions being able to vary the March quarter PAYG instalment to nil (and claim back any instalments paid for the September and December quarters), not paying January to June PAYG withholding and up to a six-month deferral for paying bases, tax shortfalls & FBT liabilities.
We remind you not to lodge your March quarter BAS without speaking with us first.
We take this opportunity to remind you to return to this web page for daily blogs on a variety of short videos and business survival tips (including health and well being).
As we are all in this together, we are determined to help as many business owners as possible. We would therefore appreciate you passing on a link to any article you find of interest to your team, family, friends and business associates.
Commercial rent relief
Next to wages relief, small business are crying out for commercial rent relief.
Following Friday’s brief announcement, the Prime Minister today stated that there would be a mandatory code which will apply where either the landlord or tenant qualifies for the JobKeeper payment.
So if you are a tenant, your turnover has to fall by 30%.
You don’t qualify if your turnover has only fallen by 25% from the same period last year.
This is a most difficult initiative to get up as it requires passing by each state government.
Keep an eye for updates.
Can I keep my business open?
Can I keep my business open? It is understandably a very common question.
Essential businesses can stay open. Non-essential businesses can’t.
So what is a non-essential business?
You can find out by reading the Victorian state government direction order which you can access:-
We take this opportunity to remind you to return to this web page for daily blogs on a variety of short videos and business survival tips (including health and well being).
As we are all in this together, we are determined to help as many business owners as possible. We would therefore appreciate you passing on a link to any article you find of interest to your team, family, friends and business associates.
End of instant asset write-off
If one incentive had clients jumping the last couple of years it was the instant asset write-off. Particularly last year when the limit was increased to $25,000 and then to $30,000.
As part of the stimulus measures, it has now been increased to $150,000 to 30th June 2020. And the small business threshold has been removed. A business with turnover of less than $500,000,000 can now use this concession!
In today’s environment, using this incentive may not be possible for many.
But beware!
From 1st July 2020, the instant asset write-off is set to reduce to only $1,000.
So as tough as things are, consideration should be given to buying needed business assets now to bring forward tax deductions. Not only will this save on income tax, it will have a flow on effect with reduced PAYG Instalments payable through 2020/21. We are not saying buy assets willy-nilly; we are simply saying seriously analyse the impact rather than dismiss it as a knee jerk reaction.
You might also find that you get good deals over the next few months.
Who else should consider this?
Those selling major assets to larger businesses. They might well have the cash flow to acquire assets others can’t. Make sure you tell them about this incentive. With much noise and unprecedented rapid, change, they may not be aware. You might be doing them a favour by telling them.
Register for #1
There are a number of benefits and stimulus incentives that business owners should register for ASAP.
#1 would be to register for the JobKeeper scheme.
Even if you think you don’t qualify or don’t qualify based off March 2020, we recommend registering now.
You can do so at :-
https://www.ato.gov.au/general/gen/JobKeeper-payment/
Please return to our web site for other suggested registrations and new stimulus benefits as they arise.
We are also welcome any query you may have.