The Benefits of Debtor in Possession & The Implications of the Small Business Insolvency Reforms Introduced on 1st January 2021
On 11th December 2020 Federal Treasurer Josh Frydenberg announced that the Australian Government would be making changes to Australia’s insolvency framework to help small businesses who have been affected by the economic impacts of COVID-19. The proposed changes came into effect on 1st January allowing businesses with liabilities of less than $1 million to restructure […]
Queensland COVID-19 Jobs Support Loans
Applications open Queensland COVID-19 Jobs Support Loans Applications are now open for the Queensland Government’s $500 million COVID-19 Jobs Support Loan scheme. This scheme is for Queensland businesses and non-profit organisations financially affected by COVID-19 to retain employees and maintain their operations. Low interest loans of up to $250,000 are available to assist with carry-on […]
QLD Government COVID-19 economic relief package
The initial roll-out of the package has been somewhat vague, with more emphasis on how much the government will be giving, and less about the practical realities of eligibility and application processes. The following is a summary of where the Queensland Government’s $4 billion Covid-19 business support package will be going. $2.5 billion for workers […]
PPSR: Traps for Business Owners
Since the implementation of PPSA in 2012 there has been a lot of myth and misunderstanding about the importance of it, and why every business owner needs to be across it.
Avoiding Predatory Business Loans
With online lending and cash flow loans gaining popularity among small business owners as an “easier” financing option, it’s worth being cautious and noting some of the characteristics of predatory business loans.
AirBnB Hitting Rural Motels Hard
The past year has been tough for smaller operators as the impact of technology continues to increase and businesses struggle with significant fixed costs that may not be achieving a realistic return on investment. Airbnb is here to stay and traditional accommodation providers (motels and serviced apartments) are under pressure.
Pitfalls of Cash Flow Loans
We have witnessed the rapid rise of short-term lenders, lending on cash flow. These loans tend to signal the end, rather than the start of the business lifecycle. We see these options as being a six-month indicator for the business to completely fail.
The Importance of Communication in Restructure
Restructuring a business is generally a step towards the end of a period of uncertainty, creditors, stakeholders, staff and the owners are on tenterhooks, communication is generally stressed or non existent and it’s now necessary to re-engage. Often in the lead up to a restructure there has been a period of mixed communication, business owners accentuating the good often to the detriment of the bad.
Observations on Food Retail in Australia 2018/19
Our year in food retail has seen the widespread closure of outlets, rather than regeneration. It has been a tough year, with the dual influence of rising costs and external pressures. There has been an escalation in shutdowns as marginal operators have started closing the doors earlier and walking away from unrealistic leases.
Press in this area has been increasing and there has been a slew of prominent restaurants closing their doors.
Related party premises leases
When applying the Small Business CGT Concessions, one of the threshold tests is firstly determining whether the asset being disposed of is an active asset. Pursuant to section 152-40 of the ITAA97, properties used mainly to derive rent are not classified as active assets unless the property is being used in the business of a connected entity or an affiliate of the taxpayer.
