JobKeeper Extension is Some Clarification for Businesses
Accountant's Minute 241
The Prime Minister has announced significant changes to the JobKeeper Programme from 28th September 2020 with the programme being extended until 28th March 2021 following some changes. From 28th September 2020 the current flat $1,500 a fortnight subsidy will be replaced by a 2 Tier System.
The subsidy payable from 28th September 2020 to 3rd January 2021 will be reduced to $1,200 a fortnight for people who were working 20 or more hours in March 2020. For people working less than 20 hours per week in March 2020, the subsidy payable will be $750 per fortnight.
The rates change again from 3rd January 2021 when the top tier, for people working more than 20 hours per week in March 2020, will reduce to $1,000 a fortnight and the lower rate, for people working less than 20 hours a week in March 2020, will be reduced to $650 a fortnight.
The eligibility test will continue at 30% revenue reduction for businesses with a turnover up to $1 million with further tests being imposed from 28th September 2020, which will mean that businesses and not-for-profits will need to demonstrate their actual GST turnover has significantly fallen in both the June and September quarters 2020, when compared to the corresponding quarters in 2019.
The eligibility test from 4th January 2021 will be similar, except that the actual GST turnover has to significantly fall in the December 2020 quarter, as well as the June and September quarters, when compared to the corresponding quarters in 2019.
Coronavirus SME Guaranteed Loans Upgraded and Extended
The Prime Minister also announced this week that the government will be introducing guaranteed loans of up to $1 million to small businesses and medium-sized enterprises as an upgrade for the Coronavirus SME Guaranteed Loans, which were scheduled to conclude at 30th September 2020. These loans currently have a limit of $250,000 and will be extended to $1 million and will be available for small and medium-sized businesses until June 2021. The loans will be for a period of 5 years and can be used for more than “working capital purposes". The Prime Minister has indicated that the Commonwealth government would continue to guarantee 50% of the individual loans.
To apply for these loans businesses are going to need to produce appropriate documentation, including Business Plans, Budgets and Cashflow Forecasts probably for the full 5 year period for which the loans can apply.
In Demand Business Advisory Services/Crowd Sourced Funding Equity Raising Assists Funding Requirements
In this week’s COVID-19 Survival Panel webinar Peter Towers, Managing Director, of ESS BIZTOOLS will discuss some of the key issues relating to the “In Demand Business Advisory Services” products as identified in the CommBank “Accounting Market Pulse” June 2020 report, when they indicated that the accountants who were surveyed for the report had identified “Business Advisory Services” as the practice area expected to be in most demand in the next 6 to 12 months.
The other keynote speaker this week is Nigel Abbott, Director, Fundsition (a Crowd Sourced Funding Intermediary) who will give an overview of the opportunities that are available for small businesses and medium-sized enterprises to raise capital from the market, without having to produce a Prospectus and proceed to an Initial Public Offer.
Nigel will identify the services that accountants can provide to assist their clients to become “investment ready” so they can use this new methodology of capital raising, made available due to amendments to the Corporations Act two years ago.
You can register for this free webinar, which is being presented on Friday 24th July at 12-Noon AEST by clicking here.
In last week’s webinar, Trent Butler, Trent Butler Consulting Pty Ltd, gave an overview on how accountants can better utilise social media, particularly LinkedIn, to target prospects that meet the accounting firms' preferred avatars with its businesses in a particular industry, location or range of interests. With the expected growth in Business Advisory Services, as identified in the CommBank report, the strategies could be very beneficial for accountancy firms trying to identify businesses which might be responsive to an individual accounting firm's proposals.
Matthew Karakoulakis, Founder and Principal Solicitor, AMK Law, identified the legal processes that are available for small businesses and medium-sized enterprises and commented on some of the variations that have been caused by the COVID-19 coronavirus which have meant that some of the court processes have changed.
Matthew also commented on the desirability of people, who are trying to get restitution in a legal dispute, which they should try to resolve the issue via arbitration and direct negotiation, normally with input from their lawyers, before proceeding with legal action within Courts, which is very costly and time-consuming.
If you would like to access a link to the recording of the presentations made in last week’s webinar please click here.
Would you like to know more about the services provided by ESS BIZTOOLS to assist accountants to get started on the development of a “Business Advisory Service” section within your accountancy firm? We invite you to register for a free no obligation 30 day Guest trial of ESS BIZTOOLS by clicking here.
If you would prefer an exclusive webinar presentation on the challenges confronting accountants relative to business advisory services and how you could get started on delivering services to your clients, please contact us for a free webinar booking for you and your colleagues whereby you will be able to ask questions about the various service packages included within ESS BIZTOOLS.
You can also obtain additional information by going to ESS BIZTOOLS' website è Survival In Difficult Times è Learn More.
A reminder…. ESS BIZTOOLS and our Affiliates are presenting this special webinar series “COVID-19 Survival Panel” each Friday at 12-noon AEST until 30th September 2020. If you'd like to register in advance for upcoming webinars please click here. If you'd like to view the recordings for the past fourteen webinars (click here) and scroll down to the COVID-19 Survival Panel section.
We look forward to hearing from you relative to the free no obligation 30 day trial of ESS BIZTOOLS or booking a free no obligation webinar to discuss the challenges of offering business advisory services and how you could utilise the products developed by ESS BIZTOOLS.
If you would like to contact us about any aspect of ESS BIZTOOLS' or ESS BIZGRANTS' products and services, please do not hesitate to contact us:
If you have a friend or colleague who you think might find this article interesting, please feel free to pass it on to them.
Stay safe! Have a great day!
