Job Keeper Payments
28 September 2020
Why is this date such a significant date? For a number of businesses, and their employees, it will mark the end of Jobkeeper payments, with significant changes to other businesses as payment rates and criteria become more stringent.
By now, most businesses who have applied for the Jobkeeper payments will know that the purposes of these payments were to support businesses that were significantly affect by the COVID-19 pandemic, to help keep Australians in jobs. Having started from 30 March 2020, the Jobkeeper payment is open to eligible employers to enable them to pay each eligible employee’s salary/wages of at least AUD $1500 (before tax) per fortnight. Then these eligible employers will be reimbursed the amount for their employees. Most small businesses would have had at least a 30% reduction in turnover to be eligible for this payment.
The problem now is many business owners are putting off making important decisions as long as the Job Keeper payments continue to flow in. With the changes to the extended payment which commences 28 Sep 2020 and ends 28 March 2021, not every business will qualify as the Australian government has set further stringent criteria to ensure it benefits businesses which have been most significantly impacted.
To keep on holding out for a handout ignores the fact of whether the business was profitable or not before COVID-19, or whether the impact of COVID-19 has materially changed the ongoing viability of your business.
Many businesses have been kept afloat temporarily or artificially whilst Jobkeeper payments have been paid out by the Government but haven’t considered whether their business model is viable once these payments cease. Some businesses may not have even been having any cashflow since the shutdowns began and some may have already been facing difficulties since the commencement of 2020.
If you’re struggling and don’t know where to start, contact Andrew today for a free consultation.
These Jobkeeper payments are not a cure but a temporary reprieve.
You need to act soon for your business and get the advice on what needs to be done before these payments end. Even if the Jobkeeper payments continue, the criteria set may result in your business being ineligible at any point of time during the extension. This will not make your debts go away as the economy will not suddenly bounce back from where it was and may take a while to recover. In fact, with our international border closures (and ongoing internal hard borders closures like in Western Australia) probably lasting into the next year, holding on to unrealistic hope is only prolonging the pain that will come.
What do you need to consider?
- Take stock of your business’s financial position, profitability post 28 September 2020 and get the advice from a trusted financial advisor.
- Have you placed payments of rent, utilities and other financing costs on hold? Remember for some of these payments, it does not mean interest stops accumulating on them, and you may be in for a greater shock once the payments resume. Your overheads may still continue to mount.
- If your company is unable to pay its debts once Jobkeeper payments cease, consider the implications of going into liquidation. Keep in mind that if you provided a personal guarantee against any unpaid liabilities of the company, and if the company can’t pay the debts, you may be legally responsible to pay for that guarantee.
For business owners, you can also find out more on personal bankruptcy and liquidation of a company from the Australian Financial Security Authority website or details via their brochure via this link: https://www.afsa.gov.au/sites/default/files/bankruptcyliquidationbrochure.pdf
Remember you may not need to go into bankruptcy personally and there can be different ways of repaying your debt which you have not considered. However, if you have obtained the relevant advice to start thinking about the next steps from your accountants, lawyers or other financial advisors, it may be time to act.
Bite the bullet now! Don’t wait like the rest, get the necessary information today to make those important decisions for your current debts and have a solution ready for when these Jobkeeper payments will stop.
With over 70 years of combined experience with our team at Bankruptcy Advisory Centre, we pride ourselves on our personalized services, we treat each and every one of our clients with the respect and compassion they deserve, ensuring that obligations to both debtors and creditors are met fairly.
Give Bankruptcy Advisory Centre a call at 1300 887 210 or email us at info@bankruptcyadvisorycentre.com.au to chat with one of our experienced team members on what options are available to you today.
Reviews
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As a Trustee in Bankruptcy, Ross Thomson is often required to think outside the box. As well as creative thinking, Ross brings compassion to the table.
For Ross, it’s important to see the people behind the financial problem –not just numbers.
Ross recently helped a bankrupt client who lives in a retirement village with her seriously ill husband.
The unit she & her husband live in is not owned by them, but subject to a 20-year lease.
The money to be repaid by the management was due only at sale, when the client finally left the retirement village.
Sale of the unit was likely to take several years &, if he did sell the couple’s unit, Ross realised he would be effectively evicting them from their home, without resources or family to help them.
Ross decided to contact the retirement village management & put a proposal to them that they prepay some of the moneys they would otherwise pay the client.
The village management considered the proposal & have agreed to prepay some of the moneys otherwise due.
The client is relieved that she will not be evicted & can now concentrate on helping her husband through his health issues.
The moneys paid represented about 75% of what would have been available to creditors if they waited two years.
It is a win for the client and for the creditors.
Melinda
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I made an appointment with Andrew after finding him on google. I was nervous and apprehensive about what to expect but he made the process of bankruptcy extremely uncomplicated and stress free, allowing myself the opportunity to get the fresh start I was so desperate for. Thank you Andrew I could not recommend you enough.
Kristy
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Making the decision to go bankrupt was not easy however once I had spoken to Andrew i felt all my anxiety disappear. Andrew does not judge you and he has an innate ability to put you at ease. He took care of the whole process for me again reducing the stress involved with completing paperwork.
Thank you very much.Hayley Eastough
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I will definitely recommend Andrew Bell to anyone contemplating bankruptcy. Don't wait! Andrew is there to help. With his knowledge, he can advise you of the best path to take and assist with the mind boggling paperwork.
Best of all, he is there for you through your entire bankruptcy period. Get your life back, it's not as bad as you think. Thank you Andrew for lifting the burden and allowing me to move on.
Karilyn Mahon
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I saw Andrew for 'advice only' on possible bankruptcy due to a divorce. Left an hour later with the paperwork all done and feeling like a new person!
Andrew was extremely welcoming and made me feel so comfortable with my decision to proceed immediately.
This was the best investment I have ever made and cannot speak highly enough of Andrew. He doesn't just give excellent service his follow up afterwards is amazing. Thankyou Andrew you made my 'new' life so easy to achieve!
Vicki Johnston
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Andrew was very helpful in helping me through the bankruptcy process, as a single mother left with a massive debt from my ex and our previous marriage. I was struggling to keep my head above water on a week to week basis.
Andrew made me feel at ease immediately and helped me every step of the way, he happily and professionally answered any and all questions I had before, during and after the process. Thanks so much for your help Andrew!
Aisha Edmonds
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Would highly recommend Andrew to anyone having financial difficulties. Andrew made me feel very comfortable - he took care of everything and keep in regular contact with me throughout the whole process.
Service was fantastic and he also keep in regular contact with me when everything had been finalised Thanks Andrew! can now get my life back on track.
Cassandra Walsh
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Very prompt service and excellent source of knowledge and information, I highly recommend Andrew's service for a quick turn around of circumstances.
Eve Damjanovich
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Andrew put my mind at ease in one easy appointment. Very satisfied with the outcome and service provided. Highly recommend Andrew.
Tracey Douglas
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Andrew was a steadying hand with his advice.Showing that things aren't as bad as first thought nor any obstacle insurmountable. If you have questions needing answers, Andrew is the person to ask. Thanks for your advice Andrew.
Shane Thompson
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Andrew was very knowledgeable, caring, helpful and compassionate when I went and saw him. He made me feel that I wasn’t the loser and failure that I thought I was being. Even down to the box of tissues on the table.. which I needed. Highly recommend to go see Andrew if your struggling. There is life after!
Joanne Parker
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Andrew and his team do an excellent job of helping their clients with bankruptcy advice and it is a pleasure to work with him.
Gareth Lane
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Don't hesitate contacting Andrew, I was stressed, struggled sleeping through debt. Andrew put me at ease. He listened to my situation and we decided on my next move. Andrew is professional and easy to talk too. I would recommend highly to anyone who wants help to give him a call. I appreciate your support Andrew. Regards Brett.
Brett
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Andrew has given me back my life!!! After living paycheck to paycheck, I didn’t know what to do. Until I made the big step and booked an appointment with Andrew. As soon as I left his office I felt a huge weight lifted!!!
Deezy H
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Andrew was prompt, organised, friendly and efficient with the processing of my documents and made everything very simple for me so I didn’t need to deal with the added pressure and stress. Thank you Andrew for allowing me to start afresh and getting it done within a matter of weeks.
Kristy-lee
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