As businesses move through the recovery phase of COVID-19, business owners are looking at how they can continue to survive and adapt to the new ‘normal’, taking the opportunity to explore new ways of operating. It is likely that the business plan you had at the start of 2020 didn’t go to plan at all, and if you haven’t already re-visited your plans (or if you never had one) then now is a great time to document a clear way forward for 2020. Your new plan is likely to be more comprehensive as you’ll now be aware of risks that you hadn’t previously identified and there may be new opportunities that you can capitalise on. It is also highly likely that budgets or cash flow forecasts completed previously will need revisiting to align to the new economic climate and any changes made to your business plan. As your trusted business advisors we are here to help. If you need assistance understanding the numbers, a sounding board for new strategies or you would like some help to come up with innovative ways that you can do business differently, reach out to us.
There is still a range of business support measures available and we are happy to work through these with you to navigate the best pathway forward for your business:
The Wage Subsidy Scheme Extension is available to businesses for an eight week period. You must prove at least a 40% reduction in revenue due to COVID-19 when compared to the closest period last year, for a continuous 30 day period in the 40 days prior to application, but this period must not be earlier than 10 May 2020. The basis for proving a decline in revenue is different from the one used for the first subsidy and we encourage you to refer to Work and Income for full details.
Qualifying employers are entitled to an extra eight weeks of the subsidy per employee at the same weekly rate as the Wage Subsidy was paid. The Wage Subsidy Extension will be paid in a lump sum and applications are open from 10 June 2020 until 1 September 2020. You can’t apply for the Wage Subsidy Extension for an employee until their twelve-week Wage Subsidy has finished. You can apply the Wage Subsidy Extension for your employee, even if you haven’t applied for Wage Subsidy for them before.
Certain obligations must be met when applying for the Wage Subsidy Extension such as agreeing to pass the subsidy on to your employees, retaining your employees for the entire duration of the subsidy, doing your best to pay employees at least 80% of their normal pay and taking active steps to mitigate the impact COVID-19 has on your business.
Talk to us first if you feel like this may be an avenue you wish to explore as a life-line for your business.
The Small Business Cash Flow (loan) Scheme has been further extended. Applications opened on 12 May 2020 and can now be submitted up to and including 31 December 2020. All other conditions remain the same. Refer to our earlier article on the Small Business Cash Flow (Loan) Scheme for more information.
Our team of Business Advisors are experts in their field and are here to help you make informed decisions so that you can take the right steps today to future-proof your business for success. Get in touch today.
Subscribe to get tips on how to grow your small business