The Times Australia
Small Business News

.

HOW CORONAVIRUS IS IMPACTING AUSSIE SMALL BUSINESSES – AND WHAT TO DO ABOUT IT

  • Written by Chartered Accountants Australia and New Zealand

Coronavirus is proving a particularly difficult challenge for many Australian businesses given lingering uncertainty on the duration and extent of the outbreak, says Michael Croker, Australian Tax Leader at Chartered Accountants ANZ.

 

And while we recommend you contact your local Chartered Accountant for business advice during tough times, there are some specific issues to bear in mind:

 

  1. Your employees

 

“With so much uncertainty, a clear communication strategy is essential to maintain connections with employees,” Mr. Croker said.

 

“Make sure you keep them in the loop, share details of the actual and possible future business impact of COVID-19.

 

“Get advice about helping employees with emergency health-related benefits, including bringing expat families home.

 

“Encourage your workers to get vaccinated against known strains of the flu. If paid for by the boss, this is FBT free.”

 

  1. Managing a downturn

 

“In times like this, cashflow is key – it’s important to realise that business resilience has as much to do with recovering after COVID-19 as it is about managing temporary setbacks.”

 

“Hasty decisions can prove costly in the long run.

 

“The hospitality, travel and tertiary education are already being severely impacted, and the flow-on impact is growing day by day.

 

“Get advice on adjusting your marketing strategy, perhaps this means going from an overseas audience to a domestic one?

 

“Manage debts owed to your business proactively.

 

“For debts owed by your business, contact suppliers and seek their support. Landlords may be open to temporary rent reductions or lease variations.”

 

  1. Supply chain

 

“Talk to critical suppliers about their ability to deliver reliably.”

 

“Consider temporarily seeking alternative suppliers where the current business supply chain involves countries severely impacted by COVID-19.

 

“Network with similar businesses to see if they have surplus supplies to sell. Promote those product lines less impacted by supply chain issues.

 

  1. Travel restrictions

 

“Continue to monitor Australian Government warnings about travel to countries with major COVID-19 outbreaks.

 

“Many businesses have already stopped business travel altogether.

 

“Director or board meetings which must physically be held offshore for tax or other regulatory reasons should be deferred in the absence of approval to conduct such meetings remotely.”

 

  1. Your online strategy?

 

“Can your business’s online marketing strategy be ramped up to attract a new pool of online customers to help you combat a possible downturn?”

 

“For employees, check whether your IT systems facilitate working from home arrangements and video conferencing.”

 

  1. Compensation receipts

 

“Check current insurance policies carefully to see if there is any scope for claiming and discuss with your small business adviser the taxable nature of any compensation receipts received.”

 

  1. Financing commitments

“Engage early with financiers if there will be difficulty in meeting interest and loan repayments.”

 

“These discussions need to be formal and should include the steps currently being taken to manage the downturn and the recovery plan for when conditions improve.” 

 

  1. PAYG instalment (PAYG-I) variations

 

“Australia’s PAYG-I tax payment system has built-in mechanisms allowing taxpayers to vary their instalment which, for most, are paid quarterly.”

 

“The March 2020 quarter looms as an important opportunity to consider varying down the instalment payable late April.”

 

  1. Tax payment problems

 

“Don’t bury your head in the sand and hope they’ll just go away - this isn’t a good strategy when dealing with the ATO.”

 

“Keeping your tax returns and Business Activity Statements up to date will mean the ATO is more open to tax debt deferment requests.”

 

  1. Government support

“Your business may be eligible for government incentives and concessions. For example, some State governments have announced a payroll tax deferral package for small and medium businesses impacted by the coronavirus,” he said.

 

For health updates and advice please visit:

Australia: here

New Zealand: here

WHO (World Health Organization): here

About Chartered Accountants Australia and New Zealand

Chartered Accountants Australia and New Zealand is a professional body comprised of over 120,000 diverse, talented and financially astute members who utilise their skills every day to make a difference for businesses the world over.

Members are known for their professional integrity, principled judgment, financial discipline and a forward-looking approach to business which contributes to the prosperity of our nations.

www.charteredaccountantsanz.com

Property Times

Top Tips for Finding the Ideal Block to Build Your Home

There’s something deeply personal and exciting about building your own home. You’re not just choosing paint colours or furniture, you’re creating a space that reflects your lifestyle, your dreams, and your future. However, before you start sketchin...

The Home Buying Process Explained Step by Step

Buying a home is a thrilling milestone, but it can also feel like navigating a maze without a map. With paperwork, finances, and decisions at every turn, understanding the home-buying process is crucial for success. Whether you're a first-time buye...

Thinking of Selling Your Home? Here’s What You Need to Know

Selling a home is more than just putting up a “For Sale” sign. It’s a strategic process that involves preparation, pricing, and negotiation - all aimed at getting the best value for your property. Let’s go through the most important steps to take b...

Smart Ways to Earn Passive Income from Real Estate

Imagine making money without doing much work. You get paid even while you sleep, travel, or do fun things. This is called passive income. Indeed, real estate has great ways to do this. You don't have to be a landlord all day; similarly, you don't h...

Food & Dining

Onsite Caterer vs a Full Service Venue: 9 important things to explore

Choosing between an external catering company and an all-inclusive venue is a major decision that affects cost, flexibility, food quality, and the overall event experience. Venues with in-house catering offer convenience and streamlined coordinatio...

Meal Prep as Self-Care? The One Small Habit That Could Improve Your Mood, Focus & Confidence

What if the secret to feeling calmer, more focused, and emotionally resilient wasn’t found in a supplement or self-help book — but in your fridge? That’s the surprising link uncovered by leading dietitians Anna Debenham and Alex Parker from The Biti...

Cult Favourite, TokyoTaco, Opens Beachfront at Mooloolaba this June

FREE Tokyo Tacos to Celebrate!  Cult favourite Japanese-Mexican restaurant TokyoTaco is opening a beachfront venue at the Mooloolaba Esplanade on Queensland’s Sunshine Coast this June.  The doors of the new venue will open on 18 June and to cel...

International lager claims crown as Australia’s most preferred beer

Launching its inaugural ‘Brand Map of Australia’, Tracksuit reveals Corona as the nation’s most preferred beer  Sydney, Thursday, 29 May 2025 - From iconic mass-produced lagers to innovative craft brews, beer is woven into the fabric of Australi...

Business Times

Agentforce for Financial Services: Merging AI and Human Expertise…

In this rapidly evolving world of financial services, deploying customer experiences that are personalized and intelligen...

Samsara Eco and lululemon announce 10 year partnership

lululemon and Samsara Eco Announce 10-Year Plan to Advance Recycled Material Portfolio Plan will see lululemon source a...

Barelli Bathrooms announces celebrity interior designer Kellie Ri…

Barelli Bathrooms, a leading name in contemporary bathroom accessories and design, is proud to announce its new national ...

The Times Features

Ways to Attract Tenants in a Competitive Rental Market

In the kind of rental market we’ve got now, standing out is half the battle. The other half? Actually getting someone to sign that lease. With interest rates doing backflips and ...

Top Tips for Finding the Ideal Block to Build Your Home

There’s something deeply personal and exciting about building your own home. You’re not just choosing paint colours or furniture, you’re creating a space that reflects your lifes...

The Home Buying Process Explained Step by Step

Buying a home is a thrilling milestone, but it can also feel like navigating a maze without a map. With paperwork, finances, and decisions at every turn, understanding the home-b...

Thinking of Selling Your Home? Here’s What You Need to Know

Selling a home is more than just putting up a “For Sale” sign. It’s a strategic process that involves preparation, pricing, and negotiation - all aimed at getting the best value ...

Smart Ways to Earn Passive Income from Real Estate

Imagine making money without doing much work. You get paid even while you sleep, travel, or do fun things. This is called passive income. Indeed, real estate has great ways to do...

Small Details, Big Difference: How Minor Decor Tweaks Can Redefine Your Home

Have you ever walked into a home that felt effortlessly stylish, but you couldn’t quite figure out why? It’s often not about major renovations; it’s the small details that make a...