Finance News

Getting back to business post-corona

Posted on Wednesday, April 29, 2020
We are now another week down the track of navigating the government’s Job Keeper assistance program and there are some important updates for businesses to be aware of.   The first is that a bit of common sense has come in for employers looking to access the assistance program, where they can lodge a claim for the program up until May 31 instead of the previously announced April 30. Good result.   The other good news that we heard this week is that maybe small businesses will be getting back to work soon. But it won’t be business as usual, it will be business post-corona.   I was speaking with my mechanic on Sunday, who opened his second shop just before Christmas, following huge growth in his business from better processes, honouring dealer warranties and more cars on the road from ride sharing. His business was going really well before the shutdown. He asked me what he should do marketing-wise as a small business at this time. Should he re-do all marketing plans?  ... Read the rest of entry »

Job Keeper 101: My experience now that it's live

Posted on Wednesday, April 22, 2020
If you’re a small business owner, chances are you’ve been hanging out to hear how the Australian government’s Job Keeper program is going to work.   I’m one of the 900,000 business owners who is signing up to the program, which provides $1500 per employee, per-fortnight in relief to businesses that can show they have experienced at least 30 per cent reduction in revenue due to the COVID-19 pandemic.   With every employer in the country seeking the same information at the moment, the on-hold times at the ATO are astronomical – I spent over four hours on hold! My advice? Don’t call!   The good news is, the process for applying is done very simply through the business portal on MyGov, which allows you to apply for the Job Keeper payments for your employees and start getting some financial relief flowing.   There is still a lot of information and developments to come out as the payment is rolled out, and more information will come to light as this pr ... Read the rest of entry »

The silver lining to this corona crisis

Posted on Wednesday, April 8, 2020
Every cloud has a silver lining. And without diminishing the hardship that a lot of small business operators (and others) are facing at the moment, there is at least one positive that can come from this coronavirus downturn.   Small business operators often find they spend a lot of time working in their business, performing day to day tasks, managing staff and clients, actually doing the work. However, they often lack the time and resources to work on their business.   This downturn we’re currently experiencing is a perfect opportunity to step back, take stock, examine the weak spots in your business and get to work on fixing them for when things do return to normal in a few months’ time.   And here’s something to think about: if your business qualifies for the government’s Jobkeeper payments, you will find yourself in the unlikely scenario that once that payment kicks in, the government will be paying your employees to sit at home and work on y ... Read the rest of entry »

"Jobkeeper" payment should help a lot more people sleep easy

Posted on Wednesday, April 1, 2020
The government’s latest tranche of coronavirus stimulus – the “jobkeeper” payment – is going to help a lot of business operators and their employees sleep easier through this crisis.   It’s important to note how monumental this piece of stimulus is. Any business that can prove a 30% drop in earnings will be eligible for a $1500 fortnightly payment for each employee. And in my view, the government will want to pay out this money, so they’re unlikely to be too nit-picky if you can only prove a 27% drop, for example.   Of course, there are concerns around the potential for employers to rort the system, but I think this is unlikely due to the introduction of single-touch payroll for all businesses last year. The ATO now has almost-immediate visibility on business revenue, which will make it easy for them to judge drops in revenue, but also make it difficult for dodgy operators to game the system.   From an employee perspective, all who have been affec ... Read the rest of entry »

Government stimulus: cutting through the noise

Posted on Thursday, March 26, 2020
In these extremely difficult times, it’s easy to get lost in all the noise. As the government works to counter the medical crisis, as well as shore up the economy, they’ve announced multiple rounds of stimulus measures particularly to assist SMEs. One announcement you might have missed, is the major banks are offering loans of up to $250,000 to SMEs, where no repayments will be required for 6 months. The unsecured loans are 50% guaranteed by the government and no interest will be charged unless the funds are actually drawn down. This presents as a potentially once-in-a-lifetime debt consolidation opportunity for businesses. In many cases small business owners are required to offer their family home as collateral to secure business finance, or they may have struggled to get finance at good rates since the Royal Commission. This might be an opportunity to sit back, assess the business’ debt position, and take advantage of an opportunity presented by a horrible situation. Of course, we&r ... Read the rest of entry »

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