Coronavirus is arising along with many difficult challenges for businesses in Australia. The dramatic pace at which coronavirus (COVID-19) is spreading, has disturbed communities and businesses all around the world.
Many organizations all over the world are coming forward to find innovative ways to reduce its impact on health of public and limit its disruptions on supply chains and economies.
The Australian Government has announced their economic stimulus package whose aim is to protect the economy from pandemic coronavirus, by providing business investment allowance, immediate support for small and medium businesses and financial boost for pensioners.
The economists have warned that the nation is at risk of falling into period of recession, in spite of the latest accounts figure that shows that economy of the country grew by 0.5% in December quarter.
However, there are certain issues that must be kept in mind before contacting any local Chartered Accountants for your business
Having too much uncertainty, a strategy a clear communication is important to maintain good connection with employees. Share with them the detailed actual impact of COVID-19 on businesses.
Ask for the support of employee and their ideas as well on the method by which your business can move through this pandemic. Seek the advice on helping the employees with benefits related to health like- providing workplace hygiene programs that includes providing hand sanitizers.
The expenses levied on employers in providing assistance shall be deductible from the taxes as a part of business cost of hiring labor. There are numerous sensitive issues on the HR front like crafting policies, these are as follows:
- Leave without pay
- Condition where an employee does not feel well but still show up for work.
- Workers who want to avoid contact with others.
- Revise the terms of contract to regulate the rights of the respective parties, for contractors.
The travel, hospitality and tertiary education have been influenced drastically, and the flow-on impact is proliferating regularly. The businesses must adjust the strategies for marketing like from an overseas audience to local one only. There are different topics to be discussed with Chartered Accountant, in terms of cost reduction. Proactively manage the debts that are relates to your business and get the support of contact suppliers.
Landlords should opt for variations in lease and reductions in rent. It is crucial to notice that the abrupt decisions taken can prove to be pricey in the long term. The employees who are acquiring valuable skills must be allowed to take leave or work according to reduced hours.
Restrictions on Travelling
The HR teams and management must monitor the warnings by Australian Government about travelling to different countries due to COVID-19 outbreak. There are different restrictions that are applied according to travel history or whether immigrants are Australian residents or not. The board meeting must be set remotely and not physically.
This must be kept in mind that relocation of employees for their safety, depending upon the circumstances has unintentional results.
The online strategies of marketing can be ramped to attract new customers online, if a business is experiencing downturn. You must check video conferencing and other work from home arrangements with the help of your IT system facilities. Also, ensure that your employees are trained to use such tools efficiently to lower the risks.
The suppliers and clients can convey desire for online engagement; therefore it should be analyzed whether they can be set up with essential software to get engaged online with your business.
Receipts of Compensation
Check the current insurance policies to verify the scope to claiming and discuss the taxable nature of received compensation receipts.
Variations in installment of PAYG (PAYG-I)
The tax payment system of Australia- PAYG-I has in-built structures that allow taxpayers to change their installments. The March 2020 quarter looms as a crucial time to vary the installment to be payable in the end of April. The variations of PAYG-I that are calculated with reasonable efficiency by tax experts provides benefits of cashflow.
Problems associated with Tax payment
Our discussions with ATO that were held recently stated that there is much empathy towards small businesses, due to uncontrolled outside factors. The ATO is more open to requests of tax debt deferment from the taxpayers, who have their statements of business activity and tax returns up to date and can articulate that when the tax payments will be back on track. When dealing with ATO, it is not efficient strategy to just hope that this pandemic will go away.
Support by Government
Your business could be eligible for concessions and incentives by government. To exemplify, the Government of Queensland declared a payroll tax deferral package for small and medium businesses that are influenced by coronavirus. Moreover, the announcements by officials are also expected in few weeks for helping Small Businesses.
Moreover, Government is announcing certain changes in the policies related to businesses. This has also been announced by the authorities that for small- business, tax incentives could be helpful if they will be brought instantly rather than waiting for the financial year.