We’ve said it before and we’ll say it again – this has been an extremely difficult few months for all of us, but there is no better time to think seriously about your business. In this article, we have compiled a few tips to create value in your business. The key to building value in your business is to plan the process in a systematic way, whether you’re aiming to…  Read more

Your “war chest” is the financial reserve your business has built up so you can take advantage of an opportunity or cover unexpected costs or emergencies. Building a cash reserve when finances are tight, however, can be difficult. You need money to continue running your business but, if at all possible, you want to keep your reserve account healthy. Here are some ways to build—or preserve—a cash war chest during…  Read more

Most small business owners face a time in their career when they have to communicate in ways or about topics they aren’t comfortable with. COVID-19 has put small business owners in the position of having many conversations that are uncomfortable and stressful. Whether you’re communicating with employees about business issues during the pandemic, hoping to negotiate a rent reduction or changes to credit terms, or asking customers for help in…  Read more

The COVID-19 pandemic has proven challenging for many small business owners. It’s difficult to run your business remotely, especially if you’re not set up to do so. If you run a business that requires customers or clients to come to you, you might be very concerned about how you can continue to operate without opening your premises. If you have access to technology, are adaptable, and are willing to look…  Read more

The ATO has just released Alternative Tests for the JobKeeper payment which expands eligibility from the initial basic test.   This is good news for many businesses, particularly startups, those affected by last year’s droughts and those with variable revenues.   Basic Test If you satisfy the eligibility requirements for the basic test, you can ignore the alternative tests below.   The basic test is satisfied where your projected GST…  Read more

On 8 April 2020, the Federal Government passed a package of Bills through both Houses of Parliament (which received Royal Assent on 9 April 2020) to give effect to (amongst other things) the JobKeeper Scheme. Subsequent to this, a Legislative Instrument was released by the Treasurer containing the detailed rules of the JobKeeper Payment. Refer to the Coronavirus Economic Response Package Payments and Benefits) Act 2020, the Coronavirus Economic Response…  Read more

An employer will only be eligible to receive a JobKeeper Payment in respect of an ‘eligible employee’ (refer below) if, at the time of applying: for employers with an aggregated annual annual turnover of $1 billion or less – the employer estimates that their projected GST turnover has fallen (or is likely to fall) by 30% or more; or for employers with an aggregated annual turnover of more than $1…  Read more

When determining if the annual turnover of a business is $1 billion or less, for the purposes of working out whether the applicable decline in turnover threshold is 30% or 50%, it is the entity’s aggregated turnover that must be considered. In this context, an entity’s ‘aggregated turnover’ is the same as what is used when determining if an entity is a small business entity (‘SBE’), which includes the annual…  Read more

In determining whether the turnover of a business has fallen (or is likely to fall) by at least 30% (or 50% as the case may be), the business would generally need to show a decline in its projected GST turnover in the current period (i.e., either a month or quarter) relative to its current GST turnover in the corresponding period in the 2019 income year. The concept of ‘projected GST…  Read more

A business can only claim a JobKeeper Payment in respect of an employee who is an ‘eligible employee’. Importantly, an employer that elects to participate in the JobKeeper Scheme is required to include all eligible employees in the scheme (unless the employee advises the employer they do not wish the employer to claim the JobKeeper Payment on their behalf). An ‘eligible employee’ is an employee who satisfies the following requirements:…  Read more

The JobKeeper Scheme will ensure that eligible employees receive a gross payment (i.e., before tax) of at least $1,500 per fortnight for the duration of the scheme. Employers are able to pay eligible employees more than this amount, based on the employees’ usual pay arrangements. PRACTICAL TIP – Satisfying the ‘wage condition’ On this basis, the JobKeeper Payment scheme requires employers to pay their eligible employees a minimum of $1,500…  Read more

Amendments have also been made to the Fair Work Act 2009 to support the practical operation of the JobKeeper Scheme and to facilitate a range of flexible working arrangements designed to support the continued operation of businesses and the ongoing employment of employees. JobKeeper enabling directions Under these amendments, an employer who qualifies for JobKeeper Payments in respect of an eligible employee will be able to provide (subject to certain…  Read more

The JobKeeper Scheme also recognises that certain participants in a business (such as a sole trader) have also been affected by the economic downturn caused by the Coronavirus. Accordingly, in order to provide a benefit to such business participants, payments can also be made to an entity in respect of what is referred to as an eligible business participant (i.e., generally controlling individuals who are not employees of their business).…  Read more

Since the release of the Government’s JobKeeper Scheme, the NTAA has fielded a number of queries from our tax agent members, looking to make an application for a JobKeeper Payment on behalf of their clients and, where applicable, their own practices. A number of these commonly asked questions are addressed below. Question 1:   Do businesses have to meet the decline in turnover test on an ongoing basis? The answer is…  Read more

Dealing with a sudden cash flow crisis, even if you’re working hard to avoid shortfalls, is hugely distracting. A formerly reliable customer might take much longer to pay than anticipated or a large consignment might fail to show up, leaving you out of pocket. If you’re starting a business, it could simply be taking longer than expected to turn a profit. Red light warnings Develop red light systems to warn…  Read more

More and more business employees are now telecommuting, that companies around the world are restructuring their management practices to meet the challenges of remote collaboration. Now with the spread of the Coronavirus and workers being asked to work-from-home the need for managing remote teams is higher than it’s ever been. Because they tend to be more agile and open to change, small businesses are particularly well positioned to adapt to…  Read more

We would like to take this opportunity to update you on the JobKeeper Payment Scheme. Bills passed but no details are yet available Yesterday, the Coronavirus Economic Response Package (Payments and Benefits) Bill 2020 was introduced and passed both Houses of Parliament. Unfortunately, it did not contain the finer detail of how the JobKeeper Payment Scheme (‘the Scheme’) will operate. What it did was set up a framework including giving…  Read more

The Australian Taxation Office (‘ATO’) has announced a temporary simplified short cut method to make it easier for individual taxpayers to claim deductions for additional running expenses incurred (e.g., additional heating, cooling and lighting costs), as a result of working from home due to the Coronavirus pandemic. Refer to the ATO’s Media Release of 7 April 2020. Based on the announcement, the ATO will allow individuals to claim a deduction…  Read more

If you’ve been reviewing your business’s financial position and are looking for ways to improve your cash flow, one of the first things to look at are your expenses. As your business grows, so will your costs, but there are things you and your employees can do to keep them down as much as possible and so improve your cash flow. It’s important not to rest on your laurels. Continually…  Read more

Most small businesses experience cash flow problems from time to time and urgently need working capital. Many business owners immediately think of the bank or loans when they’re short of money. But there are other resources you can tap before you ask for that expensive overdraft or overdraft extension. The money you need might already be there, locked up in inventory, assets or your debtors’ book. You can often free…  Read more

If you’re a small business owner whose company hasn’t gone through hard times, that’s great but it’s likely to happen at some point. As much as we dream about being brilliant enough at business that we’ll never face slow times, there are many things beyond our control that can negatively affect our business. It’s highly likely that the Coronavirus and it’s resulting impacts, could put some significant pressure on your…  Read more