With 2021 now well underway, it is more important than ever to review your business’ performance, needs and goals, especially after the tough times of 2020.
Our experienced team of business accounting and tax specialists at Wilson Pateras would welcome the opportunity to meet with you to help with your business analysis and planning.
Important discussion points could include the following.
The potential for snap lockdowns being the ‘new normal’ for business.
We all experienced months of lockdown in 2020, and we have already had a snap five-day lockdown in 2021.
Despite the arrival of COVID-19 vaccines, the extended rollout program means that we could be living with the threat of another lockdown anytime in 2021
Changes to insolvency rules.
The federal government has made changes to changes to Australia’s insolvency legislation for small businesses with a turnover of less than $1 million. The goal is to help businesses to restructure and survive the economic impact of COVID-19. The following measures have come into effect from 1 January 2021:
- a new debt restructuring process that allows business owners to retain control of their business while a plan is put in place by a certified debt restructuring practitioner.
- a simplified liquidation pathway to reduce time and costs.
Changes to the compulsory employer Superannuation Guarantee.
The Super Guarantee is scheduled to increase from 9.5% to 10% from 1 July 2021 for all Australian employees who earn over $450 before tax in a calendar month. This is an additional business cost that will need to be budgeted.
2021 ATO lodgement dates.
Quarterly BAS lodgement dates in 2021 if your turnover is less than $20 million are:
- 28 February (for the last quarter of the 2020 calendar year)
- 28 April (for the first quarter of 2021)
- 28 July (for the second quarter of 2021)
- 28 October (for the third quarter of 2021).
In addition, lodgements of individual, partnership and most trust tax returns are due by 15 May 2021. A concessional date of 5 June 2021 is available if you meet specific eligibility requirements
The 2021 FBT season is about to start
The FBT year runs from 1 April to 31 March. If your business has an FBT liability, you must lodge your annual FBT return by 21 May.
Bank Financing in a Low Interest Environment
You should look closely at the interest rate you are getting from your bank. If it isn’t very low, ask your banker for a better rate or consider engaging with a broker to find you a better deal with another bank.
Now is also the time to use your increased borrowing capacity due to the growth in the property market. You can secure a drawdown facility from your bank to provide a buffer in the event of another COVID-19 lockdown or any other unforeseen business interruptions.
Wilson Pateras have an association with a team of brokers who can assist you with all your business finance needs.
In addition to these potential discussion points, we would also be happy to clarify any other business queries you may have. We can help you to navigate your way through these challenging economic times.
The Wilson Pateras Business Services Team