And how to protect your business during the outbreak
Unless you’ve been living under a rock for the past month or so, you’ll know all about Coronavirus disease and it’s far reaching consequences.
Coronavirus disease - (COVID-19) – has the potential to affect us all personally, and many businesses too.
This week the Australian Government announced an $18 billion economic stimulus package to assist with the fallout from the virus.
So that does this mean? And how can you benefit?
Packages for all in the coronavirus stimulus package
- The Government will make payment of up to $25,000 to businesses that employ people and have a turnover of up to $50 million. The payment will be delivered automatically through the tax system.
- There will be 50 per cent wage subsidy for apprentices and training in businesses with less than 20 employees.
- Nearly 700,000 small to medium businesses will also be able to get cash payments of between $2,000 and $25,000 to help pay wages or hire extra staff.
- The government will also spend $700 million over four years to expand the instant asset write-off, which will also be raised from $30,000 to $150,000 and access expanded to businesses with an annual turnover of $500 million.
It is important to note that as great as these measures are, they do not extend beyond 30 June next year, with the Government hoping the budget and the community will bounce back soon.
- Households receiving government benefits including pensioners and those getting Newstart, Carer’s Allowance and Family Tax Benefits will get a one-off payment of $750 from March 31.
It’s hoped the payments will inject cash into the economy if the money is spent and will help keep small and medium businesses running.
Tips for protecting your business during the Coronavirus outbreak
Avoid your business being damaged by being prepared to react instantly, and by following some simple, common-sense advice:
Put in place work from home options or restrict movement & contact
If you can, encourage people to work from home for at least the next two weeks. This will help reduce the risk of your employees getting sick, and/or passing on the virus to others.
Obviously, if anyone in your team has symptoms they must self-isolate for 14 days.
You will need to set out clear boundaries for working at home and ensure your employees have the correct technology and infrastructure.
Thankfully, modern technology makes it very easy to work from home. Skype, Zoom, Slack, and Loom are all useful apps.
Get your communications clear
What communication methods do you use to speak to your employees, shareholders, your clients/customers, and your supply chain?
Ensure there is a consistent message across all channels, and be prepared for things to change quickly.
This advice extends to your social media channels. Ensure your social media is all up to date and putting out clear messaging.
Understand your supply chains
Understand how your supply chain could be affected and have a plan to deal with the supply of your products and services.
Consider ways to diversify your customer base particularly where you rely on customers from China and other countries most affected by the virus.
For example, if you’re in the tourism and hospitality industry, consider promoting your products and services within Australia.
Check your cashflow
Do you usually have healthy cash flow? Do you have credit options in place if needed? Consider seeking professional financial advice to put you and our business in the best possible place during this crisis.
Take advantage of the Coronavirus stimulus package and make sure you have a financial plan for the uncertain few months ahead.
There’s a lot of information flying around, and knowing what is going on will go a long way toward protecting you and your family.
Stick to trusted news sources and perhaps limit social media use if it's all feeling overwhelming.
Seek professional financial help
Contact us at Profacc Accountants & Financial Planning for all your finance and business advice. We can help you understand your current personal and business situation, and implement strategies now to help you in the long run.