This week we have seen changes to the JobKeeper wage subsidy scheme for the childcare sector, with payments expected to cease in July and instead be replaced with a revenue subsidy for qualifying childcare businesses. Even though the JobKeeper scheme was legislated to run through until the end of September, there are no guarantees that this will be the case.
The Government are currently reviewing the JobKeeper scheme and have announced that they will make the outcome of the review public on July 23, 2020, along with an economic and fiscal update. The Treasurer, Josh Frydenberg, has not ruled out further changes to the scheme, saying “We will be looking to see how to strengthen and improve that program".
There are many possible changes to the scheme that have been raised, including alteration of the $1,500 per fortnight flat rate for all workers, or the introduction of eligibility criteria to qualify for the ongoing monthly payments. While industries that are expected to take longer to recover, such as tourism and hospitality, may receive government assistance for a longer period than other sectors, most businesses should now be considering their business strategy and financial position under the scenario of JobKeeper payments coming to an end. This includes moving their business continuity plan into the ‘recovery phase’.
The recovery phase involves outlining the steps you will need to take to get your business running again and returning to its previous operational state. This is a great time to consider if any existing processes can be improved, as many businesses have realised efficiencies and new ways of operating during the time of crisis. Preparing financial projections are an important part of the recovery, to ensure that business not only continues as normal, but is in a position to set goals and targets and return bigger and better than ever!
For assistance with your business continuity plan or financial projections for your business, please contact the team at UHY Haines Norton CQ on 07 4972 1300 or info@uhyhncq.com.au.
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