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Tradies, How To Get Qualified For A Stimulus Package
Making a point about stimulus packages.
The alternative title for this blog is ‘Get Stimulated’.
I want to make this point because as I’ve been working through this situation with my coaching clients, I’ve seen several incidents where my clients have come to me and said, “I don’t think I’m going to get the job keeper payment. I don’t think I qualify”.
And what seems to have happened is that either they or their bookkeeper or accountant has had a look at the rules and said, “You’re gonna miss out, bad luck”.
I call bullsh*t.
Let’s see how we can make sure we qualify.
And just for clarity, I’m not advocating fraud, lying or any kind of dishonest behavior, none of that. But let’s look at this with an aim in mind.
Let’s see how we can get maximum assistance from the government.
Let’s see how we can get stimulated.
For the Australians, I’m going to go into the details because that’s what I understand.
For Brits and Kiwis, sorry I don’t understand the detail of your stimulus packages properly. And I know there are people on Facebook who do so I’m going to leave it to those experts.
Stimulus packages in Australia
1. For the Australian cash flow boost, you need to do your BAS.
There’s not much more to it. Make sure everyone who can be employed is — the more PAYG tax you withheld, the more what you’re going to get, minimum $10K and you’re going to get $10k a minimum twice now and in August again.
2. The apprentice subsidy – register all your apprentices, crack on and do it to the ones who qualify.
3. Job keeper allowance – This is $1,500 per employee per fortnight stimulus to you that you pass on to your employees and that encourages you to keep them in a job. That’s good for everybody.
And you have to have had a fall-in revenue of 30% and this is the conversation I’ve been having. This is where people have said, “Look, I don’t think I’m going to show a 30% fall-in revenue compared to last April.”
That’s the example I’m using, I’m sure there are others.
So if you haven’t seen a fall-in revenue of 30%, and your business hasn’t suffered and you don’t anticipate a fall of 30% in the near future fair enough, you don’t get it. You don’t need it either.
But, here’s the thing – if your business has been affected but this March compared to last March or this April compared to last April, it doesn’t show 30% fall in revenue, then you’re gonna miss out and that doesn’t seem fair.
Is that a fair comparison?
And for many of my clients, they’ve been investing hard. They’ve been working hard to grow their business. That’s why they’ve hired a business coach.
Their businesses have grown between last April and now and then suffered a downturn as jobs dry up particularly, for builders. You’re still doing work now. You might be quiet in June or July when you don’t win in new jobs.
Recommended Reading: Customers Are Still Buying – You Need To Be Marketing
How to avail the stimulus package
If you’ve been affected or you’re going to be affected, how can you prove it? How can you argue it and get a stimulus payment?
The ATO helpfully gives two options.
You can choose your period to compare like March or April compared to March or April or May or June or July, you can choose those as well. So if it’s going to drop in July, get your application in and do your proving then and get your payment starting then.
If you’re expecting your revenue to decline, get your application and prove it then.
You only get the money after your turnover falls of course but it’s better, you don’t need that.
So the comparison period is the same month last year unless that’s not an appropriate comparison in which case you can consider an alternative test. And it used to say the Tax Commissioner can judge an alternative test on its merits.
So what’s an alternative test?
The ATO gives provisions for (if):
- A business started less than a year ago
- The business acquired a business or part of a business or disposed of part of a business that affected turnover
- There was a business restructure that changed turnover
- A business had a substantial increase in turnover (which is what’s happened to a couple of my clients).They’ve done really hard. They’ve been working with me of course, and they’ve grown, happy days. And now they’ve suffered
- Business is affected by drought, businesses with irregular turnover which applies to quite a lot of builders who have very lumpy turnover so comparing April to April is a meaningless comparison
And they allow you to take the average of several months or to take the smaller numbers, so they’re making it easy for you to get the payment if that direct month-on-month comparison isn’t fair.
So don’t give up. If it seems you’re not going to get it, don’t give up, crack on. Go and investigate.
If you want help from me obviously, get in touch or book a 10- minute chat. I will spend a few minutes thinking through your particular situation and not just give you a business coaching sales pitch.
If you want to do that with me, get in touch and I’ll help you.
My bookkeeper is helping me apply. They can do it from within your ATO portal. I’ve seen a decline in my revenue too.
Your accounting person can as well, so get help. Don’t miss out. Don’t sit there not knowing what to do.
Talk to your advisers and get stuck in. And if you want help from me, ask me. Apply now. You can now apply for the job keeper allowance and you can do your approving on the 4th of May so now is the time to get your application.
It’s a stimulus so that you don’t feel like you have to lay people off.
You can put them on few hours and give them the $1500 and everyone’s okay and can do that for six months while this sh*t sorts itself out.
It’s your job to get the money for your business.
I’m a business coach. If you want someone like me on your side thinking like this, maybe you should get in touch.
There are four ways you can engage with me:
1. Subscribe to these emails and get them once a week in your inbox so you never miss a video from me.
2. Join the Trades Business Toolshed Facebook Group where you can watch these videos, ask me questions or talk to your peers.
3. Attend my next Tools Down workshop.
4. Book yourself a 10-minute chat with me. We’ll talk about whether coaching is right for you now and if it is, we’ll go further into the process before you have to make your mind up.
See you later.