As a result of the fallout from the Royal Commission into the banking sector that took place in 2018, banks have had to change the way they... Read more
What is happening with JobKeeper after 27th of September? JobKeeper 2.0 is designed to ensure that the businesses that need the most help will continue to receive payments. The updated JobKeeper is not automatically available to everyone, even if you have already been receiving payments.
We want to give you an update on the state of play.
Since we last gave you an update, there has been the announcement of the recession, so we’re officially in the recession.
And from that, speaking to other professionals, speaking to clients, it’s resulting in some fear and uncertainty in the market and in their business.
In addition, the Government stimulus is going to be wound back which isn’t going to help with the situation at all so the fear and the uncertainty will keep going for a little while. If nothing changes, we’re expecting stimulus to end in March.
We should expect announcements to continue over the next 6 months of things that may continue or new changes. At this stage, we’re assuming everything with stay the same until the end of March and then it’s all gone.
The other thing that we’ve started to notice is, the banks are starting to make calls to clients to check on their halts. If you have any halts, you’ll be getting those phone calls soon, if not already.
We are expecting unemployment to spike as well with this uncertainty with small businesses not knowing. Particularly, as JobKeeper winds down, businesses that were previously on JobKeeper will fall out of the system. It’s going to have a significant impact over the next 3-6 months. Unfortunately, due to this, we would expect unemployment to rise.
The positive is that household debt is the lowest it has been in a long time. It means that we’re not spending – not good for our businesses in South Australia. To keep business going, we all need to go out and spend! #SupportSA #SupportLocal
Recap on what it looks like for the next 3 months on stimulus:
From our last video, the announcements that were made, and we provide in that video, have now been legislated. To qualify for the next 3 months – JobKeeper – there needs to be a 30% drop in turnover in the September 2020 quarter compared to the September 2019 quarter.
If the eligibility criteria are met, obviously you’re eligible for the next 3 months, however, the JobKeeper amounts will decrease. They’ll go from $1500 per fortnight to $1200 per fortnight. This is only for employees who have worked an average of 20 hours per week for 4 weeks preceding March 1st or July 1st. For other employees it will drop to $650 per fortnight.
As a business owner, we are going to have to worry about what we can control. That means you’ll have to have your worst case budget in place and you will need to have a plan. So that you can enact it if indeed the worst case does happen. Monitor, act and be prepared to think outside the square.
We really need to get through this recession and kick it in the butt.
Please remember we’re here to help you and our goal is to get you, business owners, to the other side intact.
For more information or if you have any questions about your personal situation, contact our office on (08) 8172 1444 or email our friendly team today!
Rodney Quinn, Quinn Transport
Phillip Cross, Royce Cross Agencies