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JobKeeper officially ended yesterday on Sunday, the 28th March 2021.

Since March 2020, JobKeeper has played a critical role in helping businesses survive during the Covid-19 pandemic.

At its peak, JobKeeper was helping around 500,000 businesses and supporting more than 3.6 million workers.

In the most recent reported period between October to December 2020, over 1.54 million Australians were still collecting JobKeeper payments.

Research commissioned by Small Business Australia found the end of the wage subsidy could have a devastating impact on small businesses, forcing 224,000 businesses to move premises and 192,000 to sell assets.

 

Coronavirus-hit industries like tourism, accommodation, transport, arts and recreation are most at risk. Job losses could be up to 250,000.

 

BetterHR has helped thousands of businesses over the last 12 months by providing the essential HR tools and advice they need to weather the Covid-19 pandemic storm. Our team continue to build HR tools and provide up to date advice as needed. So please reach out to us if you need help with HR.

 

We’ve also prepared the tips below to help.

 

Check Your Cashflow

If your business has been reliant on JobKeeper payments, it’s important to check your cashflow for the next few months to ensure you’ll have enough to operate successfully.

Start by forecasting your income – how much cash you expect to ‘flow in’ to your business (eg. sales, investments, grants, tax refunds, etc). Next, forecast your expenses – how much cash you expect to ‘flow out’ of your business (eg. rent, salaries, superannuation, electricity, phones, marketing, loan repayments, etc).

This will help you calculate if your business is likely to run at a profit or a loss over that period. You can then use this knowledge to adjustments where possible – such as changes to staffing, operations or marketing.

If your business finances are more complex, consider seeking the help of an accountant to help you plan better for the future.

 

Check Your Employment Contracts

Now that JobKeeper has ended, so to have the measures introduced to empower business owners to take advantage of the JobKeeper scheme. Such as stand down directions that enabled employers to reduce employees’ hours, the ability to amend employees’ usual duties, and the right to require employees to perform duties outside of their usual place of work. These measures superseded terms outlined in the Fair Work Act or contract of employment.

At midnight on 28th March 2021, JobKeeper enabling instructions that you’ve given to your employees no longer exist; and employment contracts, including hours of work and other conditions, must return to their pre-COVID state.

By now, you should have finalised any staffing changes with your staff. If not, please contact the BetterHR’s team of HR and employment law experts urgently for help.

 

JobMaker Hiring Credit

The Federal Government has introduced the JobMaker scheme, to incentivise businesses to employ young job seekers by providing them with ‘JobMaker Hiring Credits’. These ‘credits’ will provide eligible employers with payments of up to:

$200 per week for each eligible additional employee aged 16–29 years old inclusive

$100 per week for each eligible additional employee aged 30–35 years old inclusive

The JobMaker Hiring Credits will be available for employers for 12 months, from 7 October 2020, for a maximum claim period of 12 months from the new employees’ start date.

More information: https://www.ato.gov.au/General/JobMaker-Hiring-Credit/

 

Australian Government Support

There is still government support for some industries such as tourism, construction, hospitality and retailers.

https://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business/government-assistance-for-business

 

State and Territory Support

Each Australian state and territory has different financial help, restrictions and assistance for businesses affected by the coronavirus, so it’s important to stay up-to-date with new announcements.

https://www.business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business/Coronavirus-state-and-territory-information-and-assistance