Are you ready for the end of JobKeeper?

Number of Australians on JobKeeper More Than Halved Since September

The number of Australians being supported by JobKeeper has fallen by more than 2 million since September, with Treasurer Josh Frydenberg claiming a “remarkable recovery”.

According to the ATO, over 512,000 businesses have left the scheme and are now covering their entire wage bill by themselves. However, there are still 1.53 million Australians relying on the wage subsidy.

Are you ready for the end of JobKeeper?

The government’s JobKeeper program is scheduled to end on 28 March 2021. If your business is currently relying on the relief this scheme provides, the end of JobKeeper could create some concerns. So what exactly can you do to prepare?

1 – Conduct Scenario Planning
Planning makes a huge difference. Before JobKeeper ends make sure you have explored various scenarios for the future and plan for these accordingly.

Your scenario planning should include thinking about the worst possible scenario and preparing for it. You may need to secure additional credit lines, liquidity, or equity for your business but please speak to us and we will help map out a plan together.

2 – Evaluate Your Business Model
Many businesses have developed creative ways to pivot during the pandemic. Restaurants have focused on takeaways, fitness centres have launched online sessions, and others have created totally new products or services.

What can you do to reimagine your existing business model and understand new industry norms and market trends? Don’t just wait for your competition to do something and follow suit. Be on the front foot and always look for new opportunities. Again, we would be more than happy to discuss to help you work out your next steps.

3 – Keep nimble
COVID-19 has put us all in a tricky situation but being flexible in the way you do business will help you roll with the punches.

From remote work arrangements to the way you design your payment models for your customers, there are countless ways to adopt nimble characteristics that will help you scale back quickly even as the government support ends.

4 – Review Your Expenses and Financing Arrangements
Run your business as lean as possible and cut down on unnecessary expenses so you can save as much cash as you can while you still have support from the JobKeeper program. By keeping a bit of a war chest, you will be in a stronger financial position when the end of March comes.

Keep in mind that insufficient cashflow and capital can easily throw your business off track– so securing finance may be an option to help you carry on and face the months ahead.

5 – You Don’t Have to Do it Alone…
In these unpredictable times, changes like JobKeeper ending can have a big impact on your strategy and direction. We understand that these events can be confusing and frustrating but you don’t have to face these business challenges alone.

Work with trusted business advisors, such as those in our team, to get professional guidance and support. We act as a sounding-board for our clients, helping them to strengthen their cashflow position and build a profitable business. Please contact us if your would like to explore how we can support you and your business.