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WAYS TO STAY ON TOP OF YOUR CASH FLOW As the world economy recovers from the impact of COVID-19 many business owners’ attention is turning to working out an action plan for their business. However, when faced with the pressure of trying to save a business that is facing financial difficulties, business owners can run the risk of making poor decisions. It’s important not only to get the basics right but also to spend your time wisely and concentrate on areas that will help your business succeed. Cash flow is the lifeblood of any business. Like fuel for your car, without cash flowing
through your business, it won’t run. Getting your cash flow in order and understanding the current health of your business will help you and your business to prepare for the ‘new normal’. At the ATO, we offer a range of tools and services to help you manage and grow your business and get back on track if you need it.
Take advantage of Government grants and tax concessions From 6 October 2020 as part of the 2020-21 Budget, the Government implemented several measures and tax incentives to help businesses kickstart their planning and activate their recovery. This includes temporary full expensing, loss carry back, the increase of the small business entity threshold, and the JobMaker Hiring Credit Scheme among others.
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• Temporary full expensing: This measure is intended to interact with the loss carry back measure. Businesses may make a loss in an income year as a result of claiming an immediate deduction under temporary full expensing. If the business makes a tax loss, they can consider if they are eligible for a loss carry back refundable tax offset. Information on temporary full expensing can be found at: ato.gov.au/temporaryfullexpensing • Loss carry back: To make a loss carry back claim, a business must meet certain requirements, including; o Making tax losses in the 2019-20, 202021, or 2021-22 income years o Having an income tax liability in the 2018-19, 2019-20 or 2020-21-income years
