New financial year, new coronavirus challenges
Normally our 1st July newsletter starts with “happy financial new year!” Unfortunately, this year there’s not a lot to celebrate.
Just when it looked like we could take stock, focus on tax time and start preparing for the new financial year with some clarity, the COVID-19 pandemic throws Victorian businesses another curveball.
News this week that ten Melbourne postcodes (more than 30 suburbs) are heading back into lockdown means it is back to take-away service for cafes and restaurants, and the return of restriction for pubs, gyms and beauty parlours.
It is important that businesses affected by these changes make sure they apply for the Victorian government’s $5000 support payment. Those eligible for the payment will be businesses previously eligible for a Business Support Fund grant or a payroll tax refund that have been affected by coronavirus and this additional lockdown.
This would also apply to businesses currently receiving JobKeeper payments for their employees, so make sure that if you fall into these categories that you apply for this payment and get the assistance. If you missed out on the previous support from the government but have since experienced hardship in your business as a result of coronavirus, I’d also recommend you apply for this support.
Turning to tax time, this year it is more important than ever to get all your ducks in a row and be organised as quickly as you can. My suggestion would be to have all your tax done by 23rd July, which is when the federal government will be announcing the future of JobKeeper.
Businesses should assess if they’ve been profitable, what sort of turnover they have had, and if they have year-on-year or month-on-month drops for this financial year, before the Treasurer makes his announcement. That way you will be best placed to get the next round of paperwork sorted quickly if JobKeeper or Job Seeker is phased out.
Most businesses I’ve spoken to over recent months have said they are more organised than in previous years, due to the constantly changing business environment and new stimulus announcements every few weeks. My advice is to make the most of that organisation and set yourself up better for the financial year to come.