I’m here with the COVID-19 continuity update for Australian businesses on 21st September.
I’d like to give you a broad view of the current state of play. I’ll be looking at:
1. The upcoming Federal budget
2. State budgets
3. Victorian restrictions
4. Facebook grants closing tomorrow
1. The upcoming Federal budget 2020/21
The 2020/21 Federal budget is due to be handed down in parliament on 6 October (having been delayed from July). I’ve been researching commentary from a range of experts to help you understand what business owners might expect in the budget:
• Possibly more company tax cuts;
• HomeBuilder is likely to be extended beyond its original date of 31 December to maintain work in residential construction;
• Massive spending on infrastructure, plus more infrastructure projects will be brought forward
• Stimulus focusing on job retention and creation;
• Personal tax cuts – these were slated for next financial year but it was proposed in July that they would be brought forward.
We’re hearing that the budget will likely have record levels of spending to stimulate the economy. The Age reported today that, “One senior member of the government, speaking on condition of anonymity, said the size of the spending to be revealed in the October 6 budget would shock many observers, describing it as an “astounding injection of assistance into the economy.”
Also making public commentary was Secretary of Treasury, Steven Kennedy, who was a key adviser during the GFC recovery and the person who designed JobKeeper. When interviewed on what Australian’s can expect in the budget, Mr Kennedy said, “The top three priorities of any budget at the moment are jobs, jobs and jobs.”
Similarly, the Grattan Institute, (a public policy think tank) has said the case for job-boosting stimulus is compelling.
The Grattan Institute estimates that additional stimulus of about $100 billion to $120 billion would be enough to bring unemployment back down to about 5% – about the level the Reserve Bank says is needed to get wages growing again.
Advisory firm BDO Australia is predicting the budget will include business stimulus by way of business investment incentives, such as:
• Investment allowances for business including incentives to buy assets and expand business operations; and
• Employee headcount rebate – paid as a tax benefit in cash per new full-time equivalent employee created by a business.
Like the Federal budget, the state governments of Victoria, NSW and Queensland postponed their budgets due to the pandemic. The revised dates for the respective state budgets are:
• VIC: postponed until October but a date has not yet been set.
• NSW: 17 November 2020
• QLD: The state election is scheduled for October 31. The budget won’t be passed down until November at the earliest.
Positioning your business for the opportunity
2021 is going to a year most of us in business have never witnessed. The amount of money flowing into the economy from federal and state governments is going to create great opportunities for many businesses to expand their operations. Businesses employing new people and those investing in capital purchases will see government incentives that we never imagined possible.
Even if you aren’t looking to be directly involved in expanding through buying assets, I strongly advise you to consider the prospective clients you can supply to who will be acquiring. Stay tuned and work diligently with your coach on maximising the upside through the big picture plans you have for your business.
Victorian restrictions may ease
Victorian Premier Dan Andrews is set to make an announcement on Sunday 27 September on possibly bringing forward easing of restrictions (subject to infection rates this week).
I know we would all welcome a pragmatic perspective to enabling business activity to resume safely and swiftly.
Facebook business boost grants close tomorrow – Tuesday 22nd September
A reminder for businesses in Melbourne and Sydney that the Facebook business boost grants close tomorrow. I have heard that some people have experienced technical difficulties when applying; if you get stuck, email the grant support team: [email protected]
Some Tenfold clients have also been able to get through the process by using a different browser (e.g. Safari, Firefox, Chrome, Explorer/Edge) and a different email address.
Ashley Thomson B.Eng(Hons), Grad. Dip. Mgmt, MEI
Tenfold Business Coaching