As we enter the final months of 2020, businesses face an economic climate that’s markedly different to anything we’ve seen in years before. Border restrictions, lockdowns, and a recession (which according to the RBA Australia is technically out of) have made 2020 a challenging year for every business owner. There are still many unknowns, such as current policies and how long businesses will be able to benefit from them and general legal questions which businesses face at the end of every year. To get your business ready for 2021, ask your lawyer these questions before the end of 2020.
1. What deadlines are approaching?
Many businesses have tax deadlines which fall in December and January. Your lawyer (or accountant) should be across what tax you have to pay, and when you have to pay it by. Your lawyer can also assist you with lodging your Business Activity Statements (BAS).
2. Is my business structure still suitable?
The structure you started your business off with might no longer be suitable. Reviewing your business’s structure on an annual basis is a good idea, especially as your business grows. A good example is if you started your business as a sole trader in 2019. Current laws give more concessions to companies, meaning converting your business to a company structure might save you thousands in the long run.
3. What Government policies can help my business?
As we mentioned in the previous point, policies introduced this year to stem the recession tide have largely benefited companies. Some key policies outlined in the 2020 to 2021 Budget are loss carry-backs, instant asset write-offs and increased R&D funding.
4. How can I recover money owed to me before the end of the year?
As the year draws to an end, many businesses find that they need to get their finances in order. Ordinarily, creditors can issue a statutory demand to have the debt repaid but these laws have been changed in light of COVID-19. This includes an increase in the debt amount and the amount of time a debtor has to respond to a demand. A lawyer can explain these changes to you in detail, and advise how you can get your debt repaid with minimal dispute.
5. What process should I follow if I’m hiring new employees?
As restrictions ease and Christmas approaches, you may find that you need more hands on deck. A lawyer can provide you with valuable information on:
- Which employment contract you should use
- Minimum pay and entitlements of casual employees
- Rules for hiring Christmas casuals
6. Is my website compliant with current laws?
Laws in the online arena are constantly changing, so it’s worth checking that your website is still adhering to all the relevant laws. This includes checking whether your Privacy Policy is compliant and that your Terms and Conditions meet the Consumer Guarantee requirements.
7. What obligations do Directors have?
Company directors in Australia have duties outline in the Corporations Act 2001 (Cth) which they must adhere to. However, some duties have been altered to help keep businesses afloat in the COVID-19 pandemic. The most prominent of these is a temporary removal on the ban on insolvent trading. However, these provisions are due to expire at the end of 2020 on 31 December and it’s worthwhile speaking to a lawyer to see how this may affect you.
8. How does the JobKeeper extension work?
The Federal Government’s JobKeeper scheme has been extended until 28 March 2021. Despite this, eligibility requirements and subsidy amounts have changed significantly since March 2020. A business or employment lawyer can advise you on whether your business is still eligible, and what to expect when JobKeeper ends.
Finally
Business owners face a stressful time at the end of any year, but as we come towards the end of 2020, there’s more to think about than ever. Although there remains a lot of uncertainty about the future, businesses can still plan ahead and make themselves adaptable to whatever circumstances 2021 brings.
