COVID-19 Business Update – 22 May 2020
Welcome back to our Weekly Digest. We hope you and your family are doing well. Read on for this week’s update.
Last week we mentioned the government’s state-by-state roadmaps to relaxing restrictions. Most states have started their roadmap and as a result some businesses are gearing up to reopen. If it’s still a little while away for your business – hang in there, and please don’t hesitate to reach out if you want to chat about cashflow.
Superannuation Guarantee Amnesty
In March the government introduced a Superannuation Guarantee Amnesty. The amnesty allows employers to disclose and pay previously unpaid Super Guarantee Charge, including nominal interest, that they owe to their employees for past quarters (1 July 1992 to 31 March 2018).
- Tax deductions for payments of the Superannuation Guarantee Charge
- No administrative penalty of $20 per employee
- No Part 7 penalties (which could otherwise be 200% of the SG Charge owing).
You can find more details on the ATO’s website.
Important: Employers participating in the amnesty need to apply online by 7 September 2020.
Paying superannuation is a key part of being an employer. It is much easier for the ATO to detect non-payment of super, so non-complying employers should wisely consider their options, and apply to the ATO to take advantage of the amnesty.
Claiming expenses when working from home
Employees working from home may be able to claim deductions for expenses relating to work. For people working from home because of COVID-19, the ATO introduced a temporary simplified method of tracking these expenses. The ATO has more details on the arrangement, including details on what you can and can’t claim. It’s always good practice to keep good records.
Is it time to look at your business model?
The business landscape may never go back to “normal” again, which is why it’s so important to take the time now to think seriously about your business. This pandemic may have shown you some ways you can pivot your business model to adapt to economic turmoil. Exploring new ways to earn money—such as additional revenue streams—can provide your business with financial stability, and help you be successful.
Here are some questions to ask:
- Is my current business model viable following the pandemic?
- If not, are there ways to adjust my business model?
- Can my expertise be used to create additional revenue streams?
- What are current market trends that could affect how I run my business?
- What are my competitors doing to adapt?
Look to businesses similar to yours to see how they’re changing, and how successful their adjustments are.
We are more than happy to chat with you to help you “future-proof” your business. Please get in touch.