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How the businesses can adapt to the new normal

The spread of the Coronavirus around the world has caused so many troubles that a lot of businesses whether big or small had to change their business model to sustain the changing demands.

There were several businesses that failed terribly in this everyday changing environment while there are others who made it through this hard time only because they modified their business model. In such a hard time the importance of people who have completed even an accounting internship has increased significantly.

Many companies have shifted their production plans a little bit. Some car manufacturers were seen making ventilators, and many other small scale industries are making sanitizers, masks, and other things that they have never done in the past. They did it because the things mentioned above are in high demand right now. Even the small businesses which have some employee who has good accounting training, they can take such strategic decisions.

And other institutions like gymnasium and dance classes moved to online platforms using the latest applications like Zoom and Google Meet. These cloud-based platforms have helped them a lot in staying connected to their potential customers.

An extraordinary step:

Porter Davis is a big name in the home building industry of Australia. After the lockdown was imposed in Australia, his business shifted to an online model overnight. Using applications like Zoom and other technologies, he provided a 3-D virtual tour of the home to be sold, and then the customers would choose whether to buy it or not.

These types of businesses are done with clients sitting face-to-face. But Davis managed to change it in one night. Shawn Patterson (the general manager at marketing and sales of this company) said that what the people are seeing right now is an effect of a long-term vision. This company has invested millions of money in digitizing the day to day tasks four years ago.

Davis has performed more than 40,000 virtual tours and a large number of contracts have been signed based on those tours. All these efforts were made possible because Davis was successful in promoting his business using digital media.

In an interview, Davis has made it very clear that even the lockdown is eased, his business will never return to a complete offline mode like the earlier days.

Importance of Digital Media in this time of pandemic:

According to PwC (PricewaterhouseCoopers) said in 2018 that the private sector output can be enhanced by an additional amount of 49.2 billion Australian dollars if they shift to digital media for the day to day transactions.

But nobody was caring about it till the lockdown was imposed due to COVID-19.

Sean Leong (an expert in Digital transformations) says that most of the businesses had no idea about what to do for starting the digitization of their product, but the pandemic has forced them to do so.

There is an education design company based in New Zealand which has also moved to a completely digital model in a short span of time. They created a team to make this effort successful and developed a model that has a full production studio. By doing so, they were able to see a growth of 52 percent by having their subscribers in about 75 countries of which customers from 69 countries were new customers. Nanogirl has also reduced the cost of 1 lesson and they are also providing. For each new subscriber, they are also giving these chapters for free to someone who can’t afford it.

According to Leong, any businessman who is running his business successfully, it is not recommended to stick to the traditional model. Instead, they should always try to find some new ways that may help them evolve their business plan.

As you can see in the case of Nanogirl, they tried to go online for sustaining the change in the market but the result that they got was more than they expected from this decision.

New working model for restaurant and other such businesses:

A popular family company in Australia called Winning Appliances has also shifted to an online model to cope with this situation and they have been successful in doing so. All they did was to start video conferencing that enables their customers to choose their products online. The online support and assistance via telephone were enhanced to make the process of virtual cooking very easy.

COO of the winning group has said that they have used modern technology for making their business even better. This positive effect of this decision is very much visible as the number of deliveries in the month of April was 69000.

The case with a restaurant called Italian and Sons is almost the same. During the lockdown when all the restaurants were shut down, the owners of this restaurant started a pick-up and delivery system for the materials that they are engaged in selling. The customers can place an order using an application and the restaurant will deliver that product to your location.

The turnover at the end has not improved so far but the business owners have been benefitted from these decisions so much that they are thinking in implement this online model even when the lockdown is lifted.

If you have employees in your company who have completed some basic accounting internship program, the chances of your company to land in a stressful situation like this is very low.

Evolution of the medical facilities around the world:

There are many doctors who have moved to online platforms for checking up the situation of their patients. Many journals and reports have mentioned that there were some physicians in China and some other countries who were checking up to 100 hundreds of patients daily.

The way to make your business secure for the future:

There are many ways that would help you to make the future of your business secure if something like this happens in the future. These are some crucial points that you should consider:

  • Try to understand where exactly the human work is needed. If anything is not so typical, you can make it automated.
  • Always provide training for your employees to make them able to adapt to the changing environment.
  • Consider the importance of Digital media. Don’t always rely on physical media.
  • Make the processes simple and clear which are performed on a daily basis.
  • While taking any decision, you should focus on the fact that whether your decision is based on some personal interest or the demands of your customers.

Some admirable evolutions of the business models around the world:

There are several examples that will make you believe that it is not that hard to cope with situations like Corona COVID-19 if you understand the problems clearly. Take a look at these companies who made most out of this situation:

  • com is a Chinese company that was selling its products online using the college forums and chat groups on social media. They were doing so because they were completely unprepared for this situation. But now they have become one of the largest ones in this field.
  • Deliveroo is a UK based firm that delivers the essentials like cereals and other tinned goods. Now the Australian customers of this company can get the products on their doorsteps by ordering the products online.

Conclusion:

There are many sources that provide you the information about many things. But for the amateurs, it becomes quite hard to decide the authentic source. Accounts NextGen is in this business for a long time. Feel free to visit our official site for more information like this.

IRS urged to stop sending notices for unpaid taxes until it catches up on mail backlog

Rep. Richard Neal, D-Massachusetts, who performs a significant role in tax-writing House Ways and Means Committee, has recently urged the internal revenue service to stop sending notices on unpaid taxes to the taxpayers.

However, this was happening at the agency because of the Mail Backlog that turned out as the consequence of the global pandemic, COVID-19.

Owing to this problem, many taxpayers were still receiving ‘balance-due notices’ that perhaps have created a tense situation for most people among you.

The officers have stated the reason behind it. After the global pandemic, most of the mails have remained unopened, even taxpayers filled their online tax return to the IRS a month ago, but still, it was happening. Similarly, after the employees returned to work, the entire process began to deal with all these unopened emails. But, this wasn’t the instant solution as the number of mails was in millions.

Therefore, to manage the situation, the IRS decided not to address the payment’s final processed date and only post the receiving date payment. And taxpayers also don’t require to cancel their checks sent to IRS, as they’ll slowly review the mail to ensure taxpayers don’t get any penalties or interest.

But Neal suggested the IRS that in addition to sending lots of notice, IRS can set up an online portal for taxpayers to understand their tax return smoothly.

In the context of this suggestion, Neal says that taxpayers can quickly provide information to the IRS about their previous mails. However, Neal also requested IRS to assure taxpayers that no penalties or charge has knocked their doors, as because of the pandemic, the agency was delaying in processing their payments.

According to IRS official reports- already IRS has piled up a massive backlog of unopened mails.

Therefore on Wednesday, Neal wrote a letter to the commissioner of the IRS (Charles Rettig) and defined all the problems that taxpayers are facing right now. Neal urged the IRS to stop sending out the entire notices that are introducing lots of unnecessary stress on taxpayers.

Because of these emails, taxpayers are daily contacting their tax return agent as this problem is coming at that time when only a limited staff is coming for duty, and no telephone assistance is available to answer them.

Neal also wrote ” to not to make backlog problem a taxpayer problem” indeed, IRS should carefully review each mail and ensure everything before sending, so that a taxpayer doesn’t get penalized unnecessarily. Otherwise, the IRS should leave sending the notices to the taxpayers.

Therefore, last week, the IRS updated its web page with new information that is clearing the taxpayers’ entire doubts. But due to COVID-19, most of the mails may still be unopened. Thus, to avoid penalties while filing the individual tax return, taxpayers must remember that they don’t cancel their checks as IRS will continue to process them to ensure that the fund is available or check isn’t bounced.

Currently, the IRS provides relief from bad checks to provide equitable and fair treatment to the taxpayers. But in most instances, interest and charges may still apply.

Congratulations on Bharathi’s full-time Assistant Accountant position in BAE Systems Australia!

Hi Accounts NextGen team,

I would like to first thank you all, especially my trainers who have guided me through my training and whose insights have greatly helped me in securing a job in my field of choice i.e accounting.

I had prior experience in accounting in my native country. Even though I did have an overseas qualification that matches up to the required Australian qualifications, I was unable to secure an accounting job. Therefore, I had to take up a different job not related to my experience.

After a break due to my maternity leave, I decided to check the opportunities to get an accounting job. It was at this point that I got to know about Accounts NextGen Internships through a friend. I enrolled for Xero Assistant Accountant Programme. I did not know about this software earlier, but the expert guidance of the trainers and the course modules helped me to develop a good understanding. The exposure through internship was of great value, something that I did not get an opportunity during my University studies, with the real-time scenarios enhancing my learning.

Being a full-time mother, the online sessions were very flexible, and I did not feel any compromise in the quality of instructions and learning. The internship was an added benefit on my resume and my understanding which did have a positive impact during my interview process. I got the opportunity for the interview through referral and the positive reference provided by Accounts NextGen did boost my chances.

The overall experience with Accounts NextGen has been a fulfilling one and provided me with the extra edge to gain a job in the current competitive environment. I would favorably refer their training programs to others and do hope many would continue to benefit like me.

Business Update – August 2020

Now the period of unlocking is going to start to bring the economy back on the track. COVID-19 has hurt the business economy all over the world. No country is there which did not suffer from the economic crisis in this pandemic situation.

But this is the high time to start the businesses and keep them on track again. The latest business updates in August 2020 are going to re-establish the companies back.

Several Government Extended Loans Due to COVID-19

The governments will extend the loan schemes until June 2021 for small, medium, and large businesses. The second phase will initiate from October 1, 2020, by implementing the following changes:

  • The loans will be provided for business purposes other than the working capital loans
  • The loan sizes will be increased up to four folds from $250,000 to $ 1 million.
  • In addition to the unsecured loans, secured loans are implemented.
  • Maximum loan terms will be provided to the business individuals.

Business Optimism

Mckinsey & company research proves that the process of business optimism will be increased now. Where most organizations receive downfall in the business and face uncertainty, there are still many sectors that are flourishing and demand consumer return.

In the meantime, the entrepreneurs need to be more optimistic and take some risk to open the gateway of new cashflow and manage business success. But small businesses don’t have that profit margin as large companies have to deal with the economic crisis.

Thus, in that situation, they need to adapt better business strategies and manage the problems and adapt according to the changing conditions.

The JobKeeper Changes in September

The previous week, the Australian Prime Minister announced some changes in the JobKeeper subsidy scheme and extended till March 2021. JobKeeper 2.0 will be the next phase of this scheme and start in September end with a reduced rate of wages.

The full-time workers will get $1200 fortnight instead of $1500, and those who work part-time will receive a $ 750-fortnight payment. Wherein JobKeeper 3.0 that will start from January 4, 2021, will further get reduced wages rate. The full-time worker will receive $1000, and part-timers will receive $650.

Reassessments Would Be Done in October and January

The reassessment will be done for the organizations from September 28, 2020, who are seeking to avail of the benefit of the JobKeeper scheme. To benefit from this extension, the companies and business organizations need to show their eligibility and turnover that they receive during June and September 2020.

If they can demonstrate that they met with a business crisis and face a decline in the turnover, then they are eligible to get the benefit of the JobKeeper scheme.

Technological Tools Advancements to Work from Home

In this COVID-19 pandemic situation, technological tools play a significant role in the business landscape. These tools bring flexibility to work in home zones. The companies have been transiting their employees to work from their remote sites. The future offices are likely to shift in the homes.

The essential digital tools play a crucial role in keeping the workflow and overcoming business challenges. These tools help in boosting the productivity and working efficiency of the employees.

Following are the tools recommended for business purposes:

Video Conferencing Apps

  • Zoom
  • Skype
  • GoToMeeting
  • Google Hangouts

Chat Apps

  • Slack
  • WhatsApp
  • Signals

Other Productivity Apps

  • Asana
  • Trello
  • Basecamp Business
  • Dropbox business
  • com

COVID-19 Scams Alert

Scammers are active in this COVID-19 pandemic situation. People are giving money to these scammers blindly for the sake of COVID-19 charities and other needs. Where the fraud is new, some also scam people by saying to invest in new businesses to have a handsome profit.

But people need to be on alert mode and defend themselves from these kinds of activities. Make sure not to share your personal business-related information and other details that may threaten your bank account and give you a jerk of debts.

Boost the Digital Capabilities

In Australia, small businesses can access business support to accelerate their digital capabilities. The Australian Small Business Advisory Services Digital Solutions provide small businesses better and advance digital solutions to deal with their business crisis. The sole traders with 20 employees can also use these digital solutions to grow their business.

 

How to keep up with Accounting Industry Trends in Tax Season?

The world has been changing at a very rapid speed, so is the technology. And business firms are also evolving at a decent rate to keep up with the trends. Because these adaptabilities can enhance the level of current accounting and tax firms on the next level, so, they can operate faster and smarter.

On the other hand, a substantial cultural shift is going on. The emergence of technology and new tax laws have made some great changes in Accounting. Research has been conducted by the Sage that says approx. Ninety per cent of American accountants feel that massive reliance on technology has started the trend of a cultural shift.

If you are new or have recently joined a firm as an accountant and finding it very difficult to remain in touch with the latest trends of accounting amid tax season, you can follow these things-

 

Cloud software/services 

Cloud technology has a serious impact on accounting trends. The firms are shifting whole work routines and working on cloud services. Remote networks used instead of a local computer for the storing of services or software.

Now, most of the firms and tax agent Melbourne are working on cloud-based tools that are specially made for accounting. Improved security, quality control, disaster recovery, Remote work options, and cost-saving are prominent benefits of cloud technology that are changing the entire trend of accounting.

 

Accounting Journal 

They say, ‘reading is the best exercise that can enhance your knowledge.’ Indeed, this cliché is probably best suited for the fresh accountants. Journals and publications reading can be the best source of information for you to keep yourself updated with new trends of accounting. Some Journals like CPA can make your mind informed with new happenings of accounting and consulting with an experienced tax agent Melbourne is also a great option.

 

Download Accounting apps

Technology has now become the prominent part of accounting jobs. It helps you keep in touch with the latest news, higher security and better communication with clients. Now, most of the applications are free on the play store. So, try to download a great accounting app that can give you new insights into accounting. These apps will help you learn the different aspects of cloud computing, secure company data, and consumer relationship management. Even the best tax agents in Melbourne follow this strategy.   

 

Read accounting content on the internet  

Internet is one of the greatest and prominent inventions of the 21st century. You can find whatever you want and learn anything you can. There are numerous blogs and articles, which already published on the internet. The blogs and articles about each aspect of accounting are there, like new trends, management, financial statement, or related to new accounting technologies like Cloud software. So, you can also explore the internet to learn about unknown trends in accounting.

Conclusion

To be familiar with the new trends and technologies of accounting can be the best way to enhance your knowledge and take a step ahead from your competitors. So, these were some ways that can help you to keep in touch with new trends in accounting. And you can also reach to tax agents in Melbourne for better advice.

Managing tax time in 2020 Critical tips for CPAs

Tax agents have begun scheduling their meetings with the client and discussing income generated from stimulus measures. During Covid-19, the economic stimulus support given to the businesses has proved to be a great support to numerous companies. Many clients have rearranged their business affairs to avail of the benefits of Covid-19 stimulus measures. We bring some critical tips for CPAs in case you come across such a client.

With the execution of economic stimulus measures by the Government of Australia, the ATO has tightened its seat belt to review claims and check the eligibility criteria to ensure the integrity of the superannuation system and tax. As expected, many businesses are reported for their flawed payment to Jobkeepers, and many have been warned for filing early superannuation without being eligible.

With the tax time on the edge, tax agents are on the job of computing income from stimulus measures under income tax return 2020. In many cases, tax agents may detect intentional fraud, concealment of information, or any action hampering the rule’s uprightness.

In some instances, tax agents may come across information that suggests potential fraud or behaviors of concern or the client may disclose actions that contradict the integrity of rules. For instance-

  • Creating unnatural restructure or fraudulent arrangement in the business to fulfill eligibility standards
  • Making false enhancement in wages of any month to maximize amounts
  • Changes in the classification of payments
  • Reschedule supplies
  • Releasing untrue statements or deceptive effort to establish a claim

Taxpayers are found guilty of repayments, interest charges, penalties, and conviction for breach of law under the Taxation Administration Act 1953 and the Criminal Code Act 1995 along with sanctions under the Tax Agent Services Act 2009. Job keeper legislation has also levied many joint liabilities for members of staff and company for the repayment of Jobkeeper amounts.

Outcomes of non-compliance

In the case of non-compliance, tax agents should make sure to acquaint the clients with all certain and possible entitlements and the penalty for the fraudulent act. On suspecting fraud, it is wise to investigate the matter from distinct aspects for better opinions of the case.

Members of CPA, Australia, will run in the need to follow the APES110 Code of Ethics for Professional Accountant (Code of Ethics) having regulations regarding the liabilities according to Non-Compliance with Laws and Regulations. It caters structure for the members to execute NOCLAR having laws regarding the financial statement of a business to its ability to continue its business or to avoid penalties.

It is highly significant for the members to remain versed with the fact that informing authority under NOCLAR is suitable only in a few cases and is applied only after unsuccessful attempts to correct the NIOCLAR charged with Governance. NOCLAR doesn’t lay any compulsion over its members to reveal any non-compliance or doubtful non-compliance when there is no responsibility to do so. Members must fulfill the applicable NOCLAR requirements and regard it as mandatory under the circumstances. It varies from case to case.

A tax agent may communicate with the clients to minimize the warnings of NOCLAR to a bearable level.

 Operation of Tax whistleblower protections

The tax whistleblower protections came into effect From 1 July 2019. It permits whistleblowers, like a tax agent, to reveal secluded disclosures to the ATO.

These disclosures are made where-

  •  There are rational reasons to believe the information implying misconduct or inappropriate affairs or situation concerning an entity or individual’s tax affairs.
  • The details may aid the entitled recipient in carrying out duties linked to those tax affairs.
  • When a whistleblower declares any form of logically supposed indecency, like making untrue statements or misrepresenting business documents to procure tax benefit via massive tax fraud, they are potentially entitled to guard.

Qualified whistleblowers enjoy protection from civil, criminal, and governmental responsibility.  Few clearly stated protections, too, are offered against contractual actions taken in answer to the revelation. The tax whistleblower laws give a tax agent a choice to disclose or not subject to their liability as per Code of Ethics. As the revelation in front of legal practitioners for lawful advice is protected, a tax agent may consider a legal professional’s disclosure as communication with the legal expert to find a suitable plan of action.

How to handle tax stress in the COVID-19 time?

2020 was the year that every business of the world had planned for expansion, profitability, and stability. However, it gifted anxiety, fear, and challenges to individuals as well as to business houses. With Covid-19 overshadowing lives, jobs, businesses, etc., it would probably be marked as the worst year for centuries. At the individual level, safeguarding our health from the deadly virus became our priority. Simultaneously, people in businesses ran in the need to stabilize their mental health with the taxation period on the verge.

Preventive measures turned out to be the only solution for every individual, and likewise, CPAs came for the rescue of businesses. Covid-19 pandemic has increased uncertainty, and the task to maintain stability and accomplish official formalities is beyond the word called difficult. CPAs are the only clouds that could drizzle a bit and provide the pacifying cooling effect in the hot storm of dust and heat in the form of Covid-19.

Those owning an accounting practice are versed with the degree of stress involved in it. With pandemic hampering everything around, the anxiety has got deepened with financial and psychological aches. Overcoming or battling with such high intensity of stress may not be easy, but it isn’t impossible to cope with ideal tools and approaches. Ironically, clients look for their accountant as a tool for stability, control, and support.

It is noticed that many accounting businesses have undergone a handsome revenue drop up to 40 % or above. Many CPAs are devoting this phase on mere establishing relationships by providing services either at nominal prices or free of cost. It is quite evident that stress is showing an upward trend on the graph with income scaling downwards.

Dr. Grant Blashki, a renowned clinical adviser, states that people in business are strictly required to need to maintain their health, happiness, and mental wellbeing. A widespread prescription stores its solution like regular exercise, proper and fruitful intake of diet, adequate sleep, sticking to a healthy routine and socializing with friends and family. It is also essential to stay attuned with the virtual tools and use them in the best and advantageous way, establishing and allocating the time for WFH and family life. It is advised not to allow problems to elevate beyond your control.

Overruling the wheel of stress

Disrupted sleep and constant worry about lethargy and low energy are some of the alarming symptoms of stress. However, staying disconnected from colleagues, friends, and family leads to negativity and drops the performance. It is time to go for professional help if any individual quickly identifies these.

For those on a WFH or work from home mission, it is crucial to structure a routine, have the zeal to stick to it, and be in touch with colleagues. Avoid working late or staying awake late or sleeping when the sun shines in the sky. One should emphasize on refreshing and refocusing

Meditation is undoubtedly fruitful, and doing things that exhilarate you should be focussed. The main motive should be breaking the cycle of stress. Take out time from your schedule when only you and positivity rendezvous with negativity far off.  You may even try to form a gratitude list to distract yourself from problems and have a sheer focus on positive things in your life.

Few tips to drop down stress and pressure

Dr. Blashki states that his organization, Beyond Blue, has crafted a website referred to as Heads Up, which contains videos, articles, blogs, and interviews, especially targeting folks in businesses. In short, all the above content has the message and guidance of modes to stabilize business advisors’ mental health. It also offers tips on how they can aid others to come out of blues. It creates an opportunity in a way to strengthen the relationship with clients. With uncertainty all around in business, clients look for all-round support and advice from advisors. Extending support beyond fiscal issues would be valued more during this phase.

Another way out is to conduct workshops for clients to build mental peace and tips for managing the business in the rough patch. Helping others is highly effective in reducing problems and stress. You may find your problem almost negligible in front of others, and the peace obtained from helping others is incomparable. It imparts a great sense of achievement.

We all are dependent on each other, and a small effort in helping others in business or at a personal level can be a massive contribution to the community.

Some tips for tackling

  • Take time off from your business problems and drain your stress during it.
  • Be close and connected with family and friends.
  • Strike balance between work and home realms.
  • Reach out to the accessible resources for your mental stability.
  • Be aware of warning signs, such as fatigue and social withdrawal.

Australia’s Economic Forecast 2020/21

The world is still battling with Covid-19. And like other economies of the world, the Australian economy is also close to collapsing. The impact is visible, with unemployment predicted to shoot up in Australia.

The Australian government cleared its Economic and Fiscal perspective after being trapped by the virus. It has set out the impact of Covid-19 on finances and the world economy. It further stated that all support provided by the government had protected the economy from the negative outcome due to the pandemic. This measure has taken Australia out of the downturn.

It is anticipated that the economy of Australia will shrivel by 2.25 percent in 2020/21. In the year 2020, the government predicts a 3.75% contraction in economic activities, before ascending in 2.5 % in 2021. The government further predicts that the rate of unemployment will escalate to 8.75% in 2020/21, which was computed 7.4 % in June 2020. The government forecasts that unemployment will be at its peak in December 2020, with figures of 9.25%.

The government further mentioned that the JobKeeper subsidy’s introduction came to the rescue of unemployment and hasn’t allowed it to go beyond the forecast. Such a measure saved approximately 70,000 folks from getting unemployed, which otherwise could have risen the unemployment rate by 5% more than the current unemployment rate.

Whereas, others gave unenthusiastic estimation. The OECD concluded with the forecast that the economy of Australia will contract 5 percent in 2020 due to COVID-19 infections) which will further decline to 6.3 percent if the infections from the virus hit back with more power. The OECD stated that next year, the economy would grow by only 1 %. The OECD stated that the system should confirm that the social safety net is ample and think of investing in energy efficiency expansion.

As per the current scenario with Australia still fighting with more rounds of infections, the economy could not return to its stage in December 2019. It could level it up to the growth rate in 2019 around 2022 only.

As per the forecast of Australian Treasury:

  • US economy will reduce by 8.0 percent in 2020 and grow up 4.75 percent in 2021
  • China is anticipated to grow 1.75 percent in 2020 and 8.25 percent in 2021
  • Japan will shrivel 6.25 percent in 2020 and nurture 2.75 percent in 2021
  • India will shrink by 4 percent in 2020 and grow up 4.25 percent in 2021
  • The Euro area will be worse affected by a shrink of 8.75 percent in 2020 and a growth of 5 percent in 2021.

 From Fiscal point of view

 

According to government, it has endowed the economy with A$289 billion in monetary and balance sheet measures, roughly 14.6 percent of GDP. Fiscal aid further continues with the JobSeeker Bonus Payment, the JobKeeper wage subsidy, and the Cash Flow Boost.

Balance sheet steps taken by the government include the SME bank loan guarantee scheme. The straight fiscal aid by the government approximates at 9 percent of GDP, which is undoubtedly among the largest packages offered by the rest of the countries of the world. It is considered that colossal expenditure will save the finances of the nation. The fundamental deficit is estimated to be A$85.8 billion in 2019-20 or 4.3 percent of GDP. However, in the year 2020-21, the deficit is presumed to escalate to 9.7 percent of GDP.

Net debt of the KIWI’s is predicted to breed from A$488.2 billion in 2019-20 to A$677.1 billion in 2020-21.

Policies introduced

In addition to tax and superannuation relief from the government, it has recently introduced and implemented various policies to safeguard the economy from prospective damage.

  • Extension of the application period for early access to superannuation

To provide a way out to people struggling amidst COVID-19, the government permitted people to procure superannuation with the maximum limit to $10,000 in 2019/20 and $10,000 in 2020/21 income year on the tax-free ground. The application period will also be extended to 31Dec 2020 from 24th September 2020.

  • Extension of COVID-19 SME Guarantee scheme

The Coronavirus SME Guarantee Scheme has been declared to save and provide working capital to SME’s (small and medium enterprises). The scheme is extended from September 2020 to June 2021. According to the program, the government caters assurance of half or 50% of the loan offered by entitled lenders to small and medium-sized businesses.

  • Expansion of Apprentice and Trainee wage subsidy

Apprentices and Trainees wage subsidy is also expanded. The new wage subsidy gave small business employers 50 % of an apprentice or trainee’s wages for nine months with the limit of A$7000 every quarter. The subsidy slated to end on 30th September 2020 shall extend to 31st March 2021. It has been expanded from 1st July by the inclusion of medium-sized businesses.

  • JobKeeper Wage Subsidy extension 

As per the latest introductions by the government, the JobKeeper payment that was scheduled to end up on 27th September 2020. It will extend to 28th March 2021 to eligible businesses and not for profit. The payment rate is slated to decrease from $1500 per fortnight for eligible employees and $1200 per fortnight for business participants from 28th September 2020 and $1000 per fortnight from 4th January 2021.

Accountants and Bookkeepers Essential for Stage 4 Lockdown

Amidst the Corona Virus outbreak and early lockdown phase, only necessary services were allowed. But now gradually, more services are being added to the essential service slot to confirm the smooth functioning of the economy. The Victorian Premiere is now requested to include accountants and bookkeepers as necessary services post stage-four lockdown restrictions.

All nine professional bodies of the Tax Practitioners Stewardship Group buzzed Victoria Premier Daniel Andrews to permit accountants, bookkeepers, tax practitioners, and other related professionals to commence their work out of home in their offices or at the client’s premises on the proposed stage 4 lockdown in Victoria. These nine bodies include CPA Australia, Chartered Accountants Australia, and New Zealand, the Tax Institute, Institute of Public Accountants, The Institute of Certified Bookkeepers, National Tax and Accountants’ Association Ltd, Tax & Super Australia along with the Association of Accounting Technicians.

It was urged as Victoria noticed 428 new COVID-19 cases on Friday, which is also a maximum single-day increase out of the total 429 total everyday cases in entire Australia on 28 March. Victoria Chief health officer has declined to rule out restrictions of stage 4, with the residents compelled to wear a face mask while being on public places.

Accountants and Bookkeepers have been regarded as necessary services as tax time is approaching, and individuals need them for professional advice. Due to COVID-19, taxpayers have a hard time managing their funds and rely on the Tax Return refunds for livelihood and living expenditures. Folks looking for non-business tax advice like in the case of superannuation too are having tough times. Other than the above, business clients, also are running in need of consultancy of tax and account practitioners for filing their tax returns, to draw the advantage of Government stimulus packages along with checking the eligibility for Victorian Business Support Fund Expansion grant.

Businesses would also require the advice of Economic Statement Update on 23 July and the 2020–21 federal budgets in October. It is recommended as well as requested that the Victorian Government to publically recognize the needs of the time and make their statement in support of bookkeepers and accountants. It is further requested to investigate the practical execution under the lockdown 4 stage vigilantly. It is immensely crucial that tax practitioners, bookkeepers, accountants, and other professionals from the accounting realm support businesses and individuals with their essential pieces of advice.

How COVID-19 has impacted the young CAs, and how can they take advantage of this current time?

The Novel Corona Virus has changed the working style across the globe, with the world going virtual. What seemed unrealistic earlier has now become an integral part of our life with the spread of COVID-19. Across the world, with some limitations and a bunch of advantages, every business and every profession is learning to overcome the deadly emotional and fiscal outcomes of the pandemic. For young Chartered Accountants (CAs), the outbreak of the deadly virus has created uncertainty and dilemma about their future.

COVID-19 outspread will be remembered for generations for the commencement of new working styles by facilitating businesses on virtual platforms, pay cuts, work from home trends, and rising unemployment with a large number of people going jobless. Just like other professions, CAs in New Zealand and Australia are also facing the outcomes of economic crunches due to the Corona Virus. They have been the victim of uncertainty about their future too.

Psychology professor Paula Brough requested that the young CAs be prepared for worse conditions, which could be a reduction in working hours or losing a job with the economy getting weak. Losing a job would amount to more significant difficulties of managing households, releasing expenses, payment of insurance premiums, or home installment or rent.

It is, therefore, vital for young professionals to maintain their physical strength. Taking a break is advisable, and so is seeking someone for support.

Working on soft skills

With the businesses facing hold up or multiple issues for their profitable survival, it is considered to be an excellent time for the novice or young CAs to inculcate soft skills which would aid them to combat the uncertain world.

Communication with the client is vital.

It is immensely crucial for young CAs to have strong communication with their clients and not rely on others. With the outburst of COVID-19, we shouldn’t expect them to be experts or technically proficient. CA’s are expected to work on their interpersonal skills. Communication from both ends is important and more significant to develop understanding and reliability between the two.

With everything on the internet, clients can have easy access to all information, but an advisor is always needed for expert and sound advice. Your communication skill should have an impact on being remembered and understood by the client. Your words should encourage clients to react and act. The bespoke response is requested to clients in their verbal style as one key won’t fit in all locks. New technology should be used to make the client understand like video calling or conferencing in place of traditional phone calls.

Adapt the new trends and be tech-savvy

The young and new CAs should be versed with the latest technology trends and be tech-savvy as much as possible. Being a CA, you should be creative, forward-thinking, and do planning to be ahead of time with new technology as it eases the work with newly added and improved features. So, go and check the most exceptional software company and its ideal pricing proposal. Know what tools are being used for screen sharing or video recording.

Every year, thousands of technological tools are introduced. Use the best one for an appropriate time to know it entirely before you suggest them to your client.

 Virtual association with like-minded people

Owing designation of CA is like icing on the top and imparts excellent benefits as you get to associate with the people having a similar mindset, approach, and knowledge. It facilitates you to connect with the folks belonging to the same industry and get acquainted with other chartered accountants.

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Brisbane, QLD 4000

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121 King William Street
Adelaide, SA 5000

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Perth, WA 6000

(08)9288 0603

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T: 1300 22 36 39

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