COVID-19 Business Update – 16 July 2020
Welcome back to our Weekly Digest. Read on for information on more tightening of restrictions, must know tax time information and business tips for future-proofing your business during and post pandemic.
Tightening restrictions as COVID-19 cases top 10,000
Restrictions have tightened back up in some states in an attempt to contain a fresh outbreak of COVID-19 in the country’s southeast, which pushed the total number of cases in the country beyond 10,000. While Australia has avoided the high number of COVID-19 casualties of other nations through strict measures, an increase in community-transmitted cases in Victoria and new cases in New South Wales is a cause for action.
South Australia cancelled plans to reopen its border to New South Wales on July 20, while Queensland introduced a mandatory two-week quarantine for those who have visited two areas in Sydney’s western suburbs.
Payment summaries have changed
Last year’s introduction of Single Touch Payroll (STP) means that tax time this year will be a little different.
Employers are now required to report pays, taxes and superannuation information directly to the ATO each payday through STP.
Employers that do report this way will not have to give employees a payment summary as they usually would at this time of year. Instead, employees will get an end-of-year income statement in ATO online services through myGov.
All employers will eventually report in this manner.
Employers that do not report to the ATO in this way will still need to provide a payment summary at the end of financial year.
ATO Tax Time Toolkit
The ATO’s Tax Time Toolkit has some useful guides for small businesses on topics such as: home-based business expenses, motor vehicle expenses, travel expenses and pausing or permanently closing your business due to Coronavirus. Ask us if you have any questions.
Australian Made and eBay Partner Up to Grow Aussie Brands Online
Australian Made and eBay have partnered to support local manufacturers grow their online business through a dedicated ‘Australian Made on eBay’ hub. This will allow eBay Australian small and medium-sized businesses the opportunity to be discovered by 174 million international customers. The hub will feature accredited products across a range of categories, including fashion, health, beauty, automotive, and home and garden.
With the return to lockdown conditions
in some parts of Australia, online sales will likely continue to be increasingly important throughout the remainder of 2020. If you want to re-evaluate your business model and strategy, don’t hesitate to get in touch with us for more personalised business advice.
Running a business in a post-pandemic world
They say the worst of times can bring out the best in people– and this is also true for businesses. Last week, we put businesses showing resilience in the face of adversity in the spotlight, and shared the creative ways they serve their customers and communities amid the COVID-19 crisis.
This week, we talk about the hallmarks of an organisation designed for speed, as outlined by McKinsey & Company (see page 40). Below is a list of characteristics of operating models they’ve identified that result in faster speed to market, increased customer responsiveness, greater efficiency, and enhanced employee satisfaction. These characteristics will help companies stay competitive inthe post-pandemic business environment:
- Flatter organisations with less hierarchy and streamlined decision rights
- Faster information flows and decision-making, powered by embedded data and analytics
- As number-crunchers – we love this one!
- Cross-functional teams collaborating to tackle common missions through test-and-learn approach
- Flexible ways of working, including affinity for hybrid remote/ in-person teams
- Dynamic allocation of talent deployed against mission-critical priorities
- Agile, resilient talent able to move fast, adapt to change, and continuously learn
This Forbes article also shares tips on how to future-proof your business for a post-pandemic workplace, including:
- Making flexibility as a core benefit
- Upgrading equipment and investing in technology
- Prioritising employee health and wellness
- Increasing communication
- Investing in management development
- Creating a sustainable company culture
The future of businesses will no longer be determined by what has worked, but instead, what will work in the post-pandemic world. While the “when” and “how” of the end of the pandemic remain unknown, re-imagining your organisation and re-evaluating the way you work can help you rise to the occasion and lead your business as the “new normal” we hear so much about takes shape.
If you want to talk about your specific situation, please get in touch with us and we’ll help you work out a strategic plan.
Second Round of Cash Flow Boosts
If your business has received initial cash flow boosts, you’ll automatically receive additional cash flow boosts when you lodge your activity statements for each monthly or quarterly period from June to September 2020. The amount will be equal to the total amount of initial cash flow boosts you received and will be split in either two or four installments, depending on your reporting period.
If you lodge:
- quarterly – you will receive 50% of your total initial cash flow boosts for each activity statement
- monthly – you will receive 25% of your total initial cash flow boosts for each activity statement
State grants and support programs
Along with national assistance, each state and territory has announced various grants and assistance packages which you may be eligible for. You can find a roundup of these grants on the Government’s Business website. Alternatively, you can also contact us so we can discuss which options are most suitable for your business.
Minimum Wage Increase
The Fair Work Commission has announced a 1.75% increase to minimum wages. This will apply to all award wages and the increase will start on 3 different dates for different groups.
You can find the complete list of awards in each group here.
For those not covered by an award, the new national minimum wage will be $753.80 per week or $19.84 per hour. This applies from the first full pay period starting on or after 1 July 2020. If you’re not sure which award applies or if you have any questions, get in touch with us.
Instant Asset Write-Off Expanded
The Instant Asset Write-off has been extended to 31 December 2020, which means Australian businesses with less than $500 million annual turnover will have more time to take advantage of the write-off and invest in assets to support their business. This government initiative is designed to help the economy reopen and boost economic growth. The instant asset write-off applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided they each cost less than $150,000.
Contact us so we can walk you through the different thresholds, exclusions, and limits.
We’ll keep you updated if anything changes but now we’ll shift to helping you get a plan in place for the future. Please get in touch to discuss what’s next for your business.