August 3 Things E-Newsletter 2020

1. Great News for Small Businesses – JobKeeper extended for another 6 months!

This is how it works in a nutshell…

Eligibility is now based on showing a 30% fall in actual GST turnover.

In addition, from 3 August 2020 the relevant date of employment will move from 1 March to 1 July 2020, increasing employee eligibility for the existing scheme and the extension.

The extension will run from 28 September 2020 to 3 January 2021 and will be issued in two stages.

From 28 September 2020 to 3 January 2021: 

Payment will be reduced to $1200 per fortnight for staff who worked a minimum of 20 hours per week in the four weeks prior to 1 March 2020 or 1 July 2020.  

Payment of $750 per fortnight applies for all other eligible staff

From 4 January 2021 to 28 March 2021: 

Payment of $1000 per fortnight for staff who worked a minimum of 20 hours per week in the four weeks prior to 1 March 2020 or 1 July 2020.  

Payment of $650 per fortnight applies for all other eligible staff

For more detail please talk with you accountant or download Jobkeeper Fact Sheet here.

2. Need another pair of hands?

New equipment could do the trick

With many businesses running with fewer staff, some business owners are finding their working week is longer than ever.

Labour saving equipment and technology is more critical than ever to maintain productivity and profitability.

Over the past couple of months, we have heard firsthand from our amazing customers how important the right equipment is for business – especially now. New technology is allowing business to produce more with less. 

Here are a few questions to get you thinking about how new equipment may help your business:

  • Will equipment produce my product quicker, easier, more cheaply, reduce waste? 
  • Does it give us more control over quality and production time? (especially true if you are outsourcing)
  • Will purchasing the equipment open my business up to new streams of income, new markets? 
  • Does it allow me to produce new goods that my existing customers are demanding?

If you answered YES to any of these questions now may be a good time to buy. 

Any current downturn in business may allow you time get the equipment installed and staff trained so that when business ramps up (and it will), you will be ready.

The price of the equipment (and how you intend to pay) is the final consideration. Focus should always be on the value the equipment brings to your business. 

Financing the equipment can help because you only have to come up with a monthly repayment rather than a large lump sum. It also allows you to hang on to cash, essential in the current environment. Cash should be spared for operational purposes rather than purchasing equipment where possible.

With the additional benefits of lower rates and tax deductions from the Instant Asset Write Off scheme now is a good time to consider. We suggest you seek advice from your accountant regarding your individual circumstances

3. Extend Your ‘cash’ Runway.

Cashflow forcasting is a powerful tool

Cashflow forecasting is a powerful tool to help you beat COVID, keep your business alive and help you prosper on the other side.  

Stuart Donaldson unpacks survival and revival methods you can implement in your business in this thirty-minute webinar we aired back in May. An absolute must watch for any business owner but particularly if your business is being negatively impacted by COVID.

PLUS We are giving away free 13 week and 12-month Cashflow Templates and guide for you to start forecasting.