CBA putting a hold on foreclosures, I suspect the rest will follow

Posted on Wednesday, November 4, 2020
This week we heard probably the best news a business could hear from a bank, with the Commonwealth Bank announcing they will not foreclose on customers coming into Christmas if they had met their mortgage repayments in the 12 months leading up to the pandemic.   It's fantastic news from a retail point of view, a customer point of view, but most importantly from a small business point of view. It means that if you are under pressure you are able to maintain your home and your business well into 2021, when we all hope that the pandemic will have eased. At this stage only the CBA has committed to this, but I believe the other major banks will follow their lead.   It’s now almost a week since many Melbourne businesses have reopened, and while pubs and cafes are welcoming back customers, things are far from normal. Estimates say that up to $450 million has been wiped from the Victorian economy as a result of major events being cancelled or crowds being absent from them.   All the mi ... Read the rest of entry »

Finally some positivity!

Posted on Thursday, October 29, 2020
Finally, some positivity!   It’s been a tough year for all small businesses across Australia, but it is great to see so much positivity around this week as Victoria takes a huge step towards recovering from the pandemic and re-opening the economy.   Finally pubs, restaurants and retail outlets can fling open their doors and start to do what they do best, and there’s already reports of venues planning for a rush of activity in the weeks until Christmas, and some even booked into January!   There will obviously be a few teething problems along the way, and I’m sure all businesses would have liked a bit more notice to plan and prepare, but seeing Victoria start to catch up to the other states with their economic activity is a great sign.   The downside is that Victorian businesses are now a long way behind the other states in their recovery and their ability to access the JobMaker program, which was announced in the recent federal budget. This is a program designed t ... Read the rest of entry »

Reopening: it's back to business basics

Posted on Wednesday, October 21, 2020
It’s been a very strange few months for small businesses, especially in Victoria. But as things are starting to get moving again, it’s crucial that you have a clear plan for how your business will look in this new world we’re entering.   A small number of businesses have already opened their doors this week, with hairdressers and barbers doing a roaring trade from last Monday, and there’s every chance a large number of retail and hospitality businesses will be back open next week sometime, or early November at the latest.   We’ll await the Premier’s Sunday press conference for that.   But I’ve spoken to a number of small business owners in recent weeks who say they’ve had to take a good look at how they operate their business – almost like going back onto your L plates – to figure out if what they are doing and how they are doing it is the best way forwards.   It’s back to basics.   For example, I know a ... Read the rest of entry »

Changes due this Sunday, but what will they be?

Posted on Wednesday, October 14, 2020
It’s been an exasperating time for small businesses in Victoria, but particularly those in the retail and hospitality sectors that have been counting down the days and weeks to re-opening.   From everything I’m hearing, it appears that not much will change for those businesses when the next steps are announced on Sunday, and the light at the end of the tunnel of re-launching the industry on grand final weekend now seems unlikely.   It means more time juggling JobKeeper, which is now into its second phase and businesses have until the end of the month to get their business turnover information to the ATO to qualify for the next phase of the scheme.   The federal budget last week went a long way to recognising the importance of small businesses across the country and helping get people into jobs. A big issue with that is obviously cash flow, and businesses being uncertain how they will look in the months and years to come, so remaining apprehensive about hiring more staff. &nbs ... Read the rest of entry »

Tax Cuts + stimulus = jobs! (Hopefully!)

Posted on Wednesday, October 7, 2020
This year’s budget is arguably a once in a lifetime level of spending and stimulus. The federal government has sought to plug the economic hole by bringing forward tax cuts, supplements to various welfare payments, and a number of smaller schemes to encourage building, hiring of apprentices, and boosting manufacturing. These all add up to an unprecedented boost in government spending. The government's decision to bring forward planned tax cuts worth about $12.5 billion over the next 12 months represents a big win for a forecast 11.5 million taxpayers. The 19% tax bracket threshold will rise from $37,000 to $45,000 under the government's plan, while the 32.5% bracket will go from $90,000 to $120,000. The one-off low and middle income tax offset will stay in place for another year. When combined the measures will deliver individuals up to $2745 in tax benefits. All of this was designed to help set Australia up for a bounce in economic growth and employment that involves more than j ... Read the rest of entry »