The following are details of what to keep in mind as we make adjustments to our businesses moving forward:

As of Monday the 28th of September, the rates and eligibility for JobKeeper has changed in the following ways –

• Rate cut from 1500 per fortnight to 1200 per fortnight:
• The Government has previously paid a flat $1,500 each fortnight to everyone eligible for JobKeeper. For those working the equivalent of 20 hours a week or more during the reference periods of either February or June, then you are required to receive the full-time JobKeeper rate. This will be cut to $1,200 each fortnight.
• Rate cuts for 20 hours and under:
• If you worked less than 20 hours a week in both reference periods then you will move to the new part-time rate of $750 each fortnight — half what you would have been getting up to this point.
• Nothing will change about how you receive the payments — you'll still receive them through your employer or will be paid by the government to pass onto your employees
• If you have questions or concerns about your continuing edibility businesses must demonstrate a 30% reduction in revenue for the quarter ending in September. If you have Xero please login to your dashboard and use the inbuilt JobKeeper tools to assess your income or contact your accountant for assistance

The Andrews government has indicated that a review of the current lockdown will occur on or around the 19th of October. If Melbourne continues to move it’s 14-day average in a downward trend retail and food industries will move to Step 3 on the road map. According the Vic.gov site this step is a restricted opening with density quotients and cleaning requirements for retail. And for hospitality it includes density quotients and predominantly outdoor dining.

While we are all looking forward to being with our staff and customers again it is more critical than ever to ensure your online systems are operating well. Density quotas for retail means that you should still encourage online transactions as the first port of call and walk-ins only when necessary. The same is true with hospitality. Ensure that your online booking systems are functioning well. Ensure that your clients understand how to book and if a deposit is required to hold the table. The next stage will be tricky to navigate with lots of limitations. All communication and processes should be clear to help everyone to do the right thing and keep businesses profitable.

The federal government is creating a new two-tiered system, with large companies required to work under existing insolvency rules and business with liabilities of less than $1 million moving towards a simpler system.

The new system for small businesses will include:

• Small business owners remain in control of their company and assets, rather than immediately being placed in the hands of an administrator or creditors.
  
• An insolvent small business would have 20 days to come up with a restructuring plan, and creditors would have to vote on whether to accept it within 15 days after that.
• For small businesses that can't return to operation, liquidation would be changed, in an effort to make it quicker and easier.
• The Federal Government wants to cut liquidators' investigative processes, mandatory meetings and reporting requirements which are costly lessen the likely hood a business can recover

While it might not feel good to consider these possibilities, it is not a bad idea to start running scenarios now based on current trading. Being placed into administration was once so costly it could use up all of a business’s remaining assets. Now with good planning and forecasting there are more possibilities for recovery and deals with creditors. Please contact your accountant or financial advisor to start looking at options for the future.

This is a time that has been hard on many businesses. And while things still look uncertain, there are always options. Please get in touch for a chat or to ask questions any time. We always welcome the change to connect and assist during this difficult time.