The COVID-19 pandemic has placed unprecedented pressure on Australian business owners, with those who fall within ‘essential service’ category having to pivot or re-engineer their businesses in order to remain operational.
As a result, many Australian business owners have been thrown into survival mode and are seeking support and strategies for weathering the impact of COVID-19.
If your business is struggling to survive, you’re probably wondering what support is available to you, and what it means to your business in real terms.
We understand that it can be overwhelming trying to navigate the information on the government COVID-19 initiatives, as such we have compiled summaries to assist.
Updates to the Australian Government’s JobKeeper payment
There have been recent updates announced on the extension of JobKeeper as well as new support packages introduced by the Victorian government to support Victorian businesses impacted by the current stage 4 restrictions. We have compiled the following summary to assist you to navigate your entitlements.
Extension to JobKeeper
JobKeeper has been extended from the 28th September 2020 until 28th March 2021 as two separate extension periods. For each extension period, an additional actual decline in turnover test applies. The rate of the JobKeeper payment is different in each extension period & is dependent on either the hours an employee works or a business participant is engaged in the business.
Extension 1 covers the period between 28th September 2020 to 3rd January 2021
Tier 1 rate: $1,200 per fortnight (before tax)
Tier 2 rate: $750 per fortnight (before tax)
Extension 2 covers the period between 4th January 2021 to 28th March 2021
The Victorian Government has introduced a new support package to help businesses in industries that have been restricted, heavily restricted or closed as a result of continued restrictions. Grants of $10,000, $15,000 or $20,000 are available based on annual payroll amounts.
WHO is eligible?
Businesses located in Victoria within these industries that are participating in the JobKeeper scheme
Annual payroll of up to $10 million in 2019/20 on an ungrouped basis
as at 13th September 2020:
hold an ABN
are registered with ASIC (or ACNC for charities)
are registered for GST
are registered with worksafe
HOW to apply?
Submit an application via Business Victoria website prior to the 23rd November 2020 (note: funding for this grant is limited & once exhausted, applications will not be assessed).
How to help your business survive COVID-19: Financial Survival Tips
As business owners, how often do we have the opportunity to truly hit pause, take time to think about what our businesses could look like, and strategise?
It’s clear now that the way businesses have operated in the past will continue to change radically far beyond the coming weeks and months. So, ask yourself:
‘How can I rise to the challenge and re-engineer my business for the future?’
‘How can I simplify our structure to make it more efficient, profitable and agile?’
The impacts and challenges posed by COVID-19 are going to be felt for quite some time, but this situation also presents what is possibly a once in a lifetime opportunity to streamline business practices, seek cost savings, and refine working from home processes, all of which stand to change our lives for the better.
This is a time for leadership, not a time for wobbly knees. This virus – and this health, social and economic situation - will pass. You have to do everything in your power to survive it and, if you can, to take the opportunity to reengineer your business to come out the other side for the better.
understand your personal obligations as a director.
undertake a review of what directors guarantees you have provided.
secure the money you have lent to your business.
Understand your entitlements to state and federal government grants that will help you fund the changes you need to make.
And remember, we're on hand to assist you and your business over the coming months. Our office remains open and we will be working physically and/or remotely to support you, so please don’t hesitate to contact the Matthews Steer team.