COVID-19 Business Update – 21 April 2021
Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.
Australia Drops COVID-19 Vaccine Target
Prime Minister Scott Morrison said he won’t set a new target date for Australians to get vaccinated, as concerns about the AstraZeneca vaccine and European export restrictions delay the rollout of the programme.
Despite this, Australia is still ahead of some nations including Canada, France, and Japan in terms of vaccinations. About 1.2 million people out of 25.8 million have already received a first dose.
Business Conditions Hit Record High
The National Australia Bank’s report showed business conditions, which involve hiring, sales, and profits, hit a record high despite the end of the JobKeeper wage subsidy.
The index jumped to 25 points in March from 17 a month earlier, signifying strong recovery. This is a positive sign but please get in touch with us if you have any concerns about the future of your business.
$2000 Upfront Cash So Unemployed Move for Work
Starting in May, job seekers will get up to $2000 upfront if they move to a new location for ongoing work. Job seekers will get help relocating for jobs offering at least 20 hours a week, instead of the existing threshold of 30 hours.
Emergency Funding for Those Affected by Cyclone Seroja
Tropical cyclone Seroja has left a trail of damage across a 1,000 km stretch in Western Australia, as it made landfall near Kalbarri on Sunday with 170 km/h winds.
Emergency funding is now being offered to affected residents through the Australian Government Disaster Recovery Payment. Under this scheme, payments of $1,000 for adults and $400 for children will be provided. You can check your eligibility here.
RBA Left Cash Rate Unchanged in April
The Reserve Bank of Australia has left its cash rate unchanged at 0.1%. It has been at this level since November. RBA said they won’t increase the cash rate until inflation was sustainably within the 2% to 3% inflation target and wages growth was higher.
Government Extends Energy Bill Support to June
The Federal Government has extended the COVID-19 energy support measures for consumers and small businesses until the end of June.
This means energy suppliers must work out and rearrange payment plans with customers who are experiencing financial hardship. This may include payment plans that mean no payments will be required for some period of time.
Energy companies will also not be allowed to cut the power to customers for unpaid bills as long as the customer is working with the supplier to find a suitable payment solution.
Wage Subsidy Scheme for Apprentices to Be Expanded
The government will spend $1.2 billion on the wage subsidy scheme for apprentices, as JobKeeper ended last month.
Under the apprentice scheme, the government will pay half the wages of apprentices up to a maximum of $7,000 each quarter for 12 months. It will run until September 2022. Ask us if you have any questions.
Claiming the JobMaker Hiring Credit
The JobMaker Hiring Credit is available for eligible employers who create new positions for eligible young people between 7 October 2020 and 6 October 2021.
To receive JobMaker Hiring Credit payments, you don’t need to satisfy a fall in turnover test. All you need to do is complete three steps:
- Register – via ATO online services, Online services for business or the Business portal, or through your registered tax or BAS agent.
- Nominate your eligible additional employees – by running payroll events through your Single Touch Payroll (STP) enabled software by 27 April 2021.
- Claim payments – using ATO online services, Online services for business or the Business portal, or through your registered tax or BAS agent.
You can register at any time until the scheme ends. Ask us if you have any questions.
Upcoming Key Dates
Upcoming key lodgment and payment dates for businesses:
- Lodge and pay March 2021 monthly business activity statement.
- Lodge and pay quarter 3,(January–March 2020–21) PAYG instalment activity statement for head companies of consolidated groups
- Lodge and pay quarter 3, 2020–21 activity statement if electing to receive and lodge by paper and not an active STP reporter.
- Pay quarter 3, 2020–21 instalment notice (form R, S or T). Lodge the notice only if you are varying the instalment amount.
- Make super guarantee contributions for quarter 3, 2020–21 to the funds by this date.
- Lodge TFN report for closely held trusts if any beneficiary quoted their TFN to a trustee in quarter 3, 2020–21.
- Lodge lost members report for the period 1 July 2020 to 31 December 2020.
Contact us if you have any questions.
Government-backed COVID-19 Loans Extended
The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.
What Causes Your Profit Problem?
Do you ever feel stuck in your business? After all the time and effort you’ve put into it, your revenue seems to have plateaued or maybe has even decreased. If you’re having a profit problem, it can be a sign of a deeper issue that needs to be fixed.
Below are the three key areas that you should look into:
- Products or services– Are your customers happy with what you’re offering? Listen to what they have to say and make the necessary improvements.
- Systems and structure in place– Next, evaluate if you’ve put a good structure and systems in place. As your business grows, some systems you created in the beginning may no longer work. Also ask your staff for their opinions as they may draw insights on issues you didn’t know existed.
- People and company culture– Did you hire the right people for the job? Are you lacking key talent that could potentially boost your business performance? Also, take a good look at the company culture you’ve created. You may be surprised to find out that you have fostered an unsustainable working environment full of inefficiencies, disarray, or burnout.
While some business challenges are out of your control, it’s important to first cross out possible issues that are within your control. The good thing about finding out that the cause of your profit problem is something internal is that it also means that you have the power to fix it.
Need tailored business advice? Get in touch with us and let’s talk about your specific situation.