Prepare your Business for COIVD-19 Lockdown

With the whole state of NSW now in lockdown, we would be naïve in thinking that our businesses are immune to its impact. I’m a big believer in forward planning and having contingencies in place for the unexpected. This time is now, and I implore that, as a minimum, you consider the following basic steps to help protect the longevity of your business:

1. Consider standing-down employees or reducing hours

• • If your revenue has been impacted, consider standing down employees and/or reducing hours of employees where you can. Employees will be able to access the Federal Government COVID-19 Disaster payments of up to $750 per week (tax-free). For specific advice on standing-down employees, consult with your HR specialist or speak with Fair Work NSW;

2. Seek Government assistance
   • There is a wide range of NSW Government support for businesses, which could be expanded given the whole of NSW is now in lockdown. This includes COVID-19 Support Grant (up to $15,000), JobSaver Grant (from $1,000 to $100,000 per week) and Micro Business Grant ($1,500 per fortnight). For more information on these grants, refer to Government Support for NSW Businesses and Individuals;
   • 25% Payroll Tax Waivers for 2021-22 will be provided to businesses with wages of between $1.2m and $10m that have experienced a 30% decline in turnover. Also, for 2020/21 annual payroll tax return payments along with payments for July and August 2021, deferral options are available up to 7 October 2021;
   • Land Tax Relief for commercial, retail and residential landlords of up to 100% of the 2021 land tax liability based on the relief offered to their financially distressed tenants;

3. Minimise costs
   • Now is the time to review all your expenses and consider what can be reduced. Even if it is only temporary, the less money going out the door, the better;
   • Work out how much money you and your business needs per month. Set a budget based on this and try to minimise the impact to your cash contingencies;
   • Don’t be afraid to seek payment plans with the ATO where needed.

4. Seek bank assistance
   • It is important to minimise your cash outflow during this period of revenue downturn and loan payments are a big portion of spending. For all loan types including equipment loans, discuss deferral options with your finance provider;
   • Consider refinancing options if you believe your interest rates are too high. Please contact us for advice and options here;

5. Talk with your landlord
   • Unfortunately, the is no obligation for landlords to provide rent relief to their tenants. This may change, but, at the moment it is completely up to the landlord’s discretion. It can’t hurt to reach out to your landlord and seek some sort of rent relief. Whether this is a combination of waivers and deferrals or simply deferrals, any assistance from your landlord will help minimise the cash impact to your business;
   • There is an eviction moratorium, which protects tenants from being evicted that have been financially impacted by COVID-19.

This is a basic overview of some simple steps to take during this trying time. For further assistance, please do not hesitate to contact us.