Responding to Coronavirus COVID-19

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Responding to Coronavirus COVID-19

Over the course of two months we have witnessed an extraordinary national response to the coronavirus COVID-19 health crisis. Our policy makers have delivered historic stimulus and relief packages, our healthcare system doubled down, borders have been closed and banks and businesses have bent their efforts towards protecting lives and livelihoods.

Halfway through April and there are positive signs the curve is flattening. However we are in this for the long-haul and with most, if not all, major policy announcements made, businesses can now turn their minds to how they will navigate this new normal.

With specialists across business risk, business continuity, workforce, tax, compliance, supply chain and restructuring, we are here to help. This may be an assessment of your risk and cash flow, identifying alternative suppliers, or preparation for meetings with suppliers, banks or the ATO to access additional support or extensions.

Australian Tax Office

The Australian Taxation Office (ATO) is encouraging businesses impacted by the coronavirus to get in touch with the ATO to discuss relief options.

Options available to assist businesses impacted by COVID-19 include:

Deferring by up to four months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise.
Allow businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to.
Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.
Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities.
Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.

Employers will still need to meet their ongoing super guarantee obligations for their employees.

Unlike the bushfire relief measures, which applied automatically to particular geographic areas, assistance measures for those impacted by COVID-19 will not be automatically implemented.

Anyone impacted by COVID-19 is advised to contact the ATO to request assistance on our Emergency Support Infoline 1800 806 218.

Small Business Assistance Package

The Australian Banking Association announced on Friday, 20 March 2020, that Australian banks will defer loan repayments for small businesses affected by COVID-19 for six months.

Banks are already reaching out to business customers about the assistance available. The Assistance Package will apply to more than $100bn of existing small business loans and could put as much as $8b back into the pockets of small businesses.

Small businesses are encouraged to reach out to their banks about whether or not this applies to them. The Assistance Package will be fully rolled out as of Monday 23 March 2020.

Read the release from the Australian Banking Association here.

COVID-19 Business Checklist

The questions in this checklist are designed to help businesses develop their response plan for COVID-19. This type of planning is critical and often doesn’t feel urgent until it is. If don’t have one already, this checklist can help you start to build a disaster response plan for your organisation to use now and in the future

COVID-19 Business Checklist Download PDF [ 5917 kb ]

Business continuity plans and crisis management

The current situation continues to evolve and businesses will need to remain agile and alert. A good starting point on creating a response to COVID-19 is the World Health Organisation’s technical guidance and the Australian Government which has released guidelines on how to mitigate the spread of COVID-19.

Some areas to consider include:

Your people

Have measures been put in place to support good hygiene and health for your people, including restrictions to international travel, advice on attending client meetings, site visits and events?
Do you have a clearly communicated policy on what your people should do if they are feeling unwell – including seeking medical attention and isolation? What will this mean for colleagues and clients if you suspect a case of COVID-19?

Review your customers and suppliers

Do you need to inform your clients and customers of any changes to your services? This could include different opening times, delays in deliveries or deadlines.
Do you have plans in place to ensure regular and clear communications to clients about your policies and updates on changes to service?
With international travel and export impacted by COVID-19, have you assessed the strength of your supply chain and do you have alternatives in place if you need to source another provider?
Which customers will need extended terms from you and which suppliers might require different arrangements? Liaise with your suppliers to determine how they can support you.

Cash flow and financing

Any changes or delays in service can have an impact on cash flow. Do you need to have discussions with clients or suppliers about renegotiating terms?
Your banker will be invaluable in helping you over the next couple of months. Plan early if you are going to need additional funding to get restarted. Make sure your banker is across your plans and understands where you are going.
Most banks have hardship teams offering a range of services that may be of support. For more information, or to find the number for your bank’s hardship team go to https://www.ausbanking.org.au/campaigns/financial-hardship/.

Check your insurance cover

Re-assessing insurance coverage – businesses may have insurance coverage to protect certain assets, however, they should ensure they are covered for the business interruption expenses that natural disasters can cause.

Stakeholder management

During these difficult periods, proactive stakeholder management becomes extremely important, in particular with financiers, shareholders, customers and employees. Communicate with these groups early and often!

Get advice and look after yourself and your people

In addition to ensuring the health and safety of yourself and your people, we strongly encourage you to speak to your advisors about how your business can respond to COVID-19.

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As always, we are here to support you in times of difficulty. With a multidisciplinary network of specialists, there are many ways we can assist you now and into the future.

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