Hume Council Business Webinar - 15 September 2020 - Hume City Council
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Hume Council Business Webinar
15 September 2020
Purpose The purpose of this webinar is to outline techniques for manufacturers and other organisations to build resilience in the current challenging times and introduce strategies to build and maintain financial stability.
Agenda Introductions – Adrian Misiano, John Coulson & Tristan Glennon General information on how businesses have been affected by COVID-19 and Stage 4 Restrictions Importance of understanding key business risks and implementing mitigation strategies Government funding to support manufacturing businesses and supply chains Streamlined approach to applying for government grants Techniques and strategies for building resilience and financial stability Q&A
About Matthews Steer
Background & Services
30 years of operating and supporting clients in Melbourne’s
North West
6 Partners and a team of 50 staff to assist
Dealing with businesses of all sizes; start ups through to large
corporations focusing on:
Business Strategy & Protection
Wealth Creation
Accounting & TaxUnderstanding Key Business Risks Importance of understanding key business risks and implementing mitigation strategies Many businesses have been impacted by stage 4 lockdowns and market decline caused by restrictions on interstate travel and outdoor activities This uncertainty has members feeling challenged with their livelihoods and businesses they’ve spent years building under threat Anxiety builds in business owners when they are unsure of pathways to recovery, when their revenue and profitability base is severely challenged
Understanding Key Business Risks
Importance of understanding key business risks and
implementing mitigation strategies (cont’d)
What are the implications for your business when JobKeeper
ends?
In our discussions with businesses, they are asking
themselves the following questions:
How to fund early stages of recovery?
How to secure new customers to reduce losses from recurring
customers postponing new purchases?
How to streamline existing costs to provide a more sustainable
cost base for recovery?New Victorian Government Support On 13 September, the Victorian Government announced it is investing $3 billion to help businesses impacted by ongoing restrictions and prepare for COVID Normal business $3 billion in cash grants, tax relief and cashflow support will be delivered to Victorian businesses that have been most affected by coronavirus (COVID-19) restrictions The aim of the package is to help businesses survive and keep Victorians in jobs Sole traders will be given grants of $3,000 Full details of the support packages are yet to be released
New Business Support Fund Grants
Victorian Government Business Support Fund Grants
The Business Support Fund aims to provide direct financial
support to businesses impacted by restrictions in Victoria
Third round announced 13/09/2020 with applications opening
soon for businesses enrolled in JobKeeper scheme
Grant amount available based on annual payroll in 2019/20:
$10,000 - Payroll less than $650,000
$15,000 - Payroll between $650,000 and $3 million
$20,000 - Payroll between $3 million and $10 million
Full eligibility criteria are available on the next slideNew Business Support Fund Grants
Victorian Government Business Support Fund Grants
To be eligible, businesses need to:
Operate a business located within Victoria
Participate in the JobKeeper scheme
Employ people and be registered with WorkSafe
Have annual payroll of less than $10 million (2019-20)
Have and ABN and be registered for GST
Be registered with Federal or State regulator (e.g. ASIC).New Business Adaptation Support
Victorian Business Adaptation Support Initiatives
This part of the support program is ostensibly to provide
opportunities to re-tool, adapt and prepare for reopening under
“COVID normal” settings, including:
eCommerce - Vouchers for sole traders and small businesses in building
digital capabilities, enabling the purchase of off-the-shelf software-as-a-
service (SaaS) products such as Shopify
eCommerce - Funding for training and workshops for business owners
looking to move their businesses online
Export market - Addressing logistics and supply chain issues
Export markets - “Virtual trade missions” and advice about entering new
markets
No specific details on the above programs have been made available
by the State Government yetNew Sole Trader Grants Grants of $3,000 will be available to sole traders who are tenants or licensees in commercial premises That will be those traders who work in areas like accommodation and tourism, some permitted retail, media and film production, gyms, creative studios, outdoor entertainment, private museums and galleries More detail on eligibility for these grants is expected in the coming days
New Licensed Hospitality Venue Grants Victorian – Licensed Hospitality Venue Grants In addition to the Business Support Fund, grants of up to $30,000 will be offered to licensed pubs, clubs, hotels, bars, restaurants and reception centres The new funding will be based on venue capacity and location No specific details have been made available by the State Government yet
Update Payroll Tax Deferrals
Victorian – Payroll Tax Deferrals
Payroll tax deferrals, will now run through the entirety of the
2020-21 financial year
The plan is not to remove the payroll tax obligation but delay it
until 2021-22
Businesses with payrolls up to $10 million will be eligible for the
deferrals, although the government has yet to stipulate whether
this will be automatically applied or not
Note – This is separate from payroll tax waiver/refund previously
announced for 2019/20 year for eligible businesses with Victorian
taxable wages less than $3 millionGovernment Funding to support Manufacturing
Businesses & Supply Chains
Business Plan Development
Legend:
Entitlement if company
utilising meets the grant criteria
AusIndustry EP Program Competitive grant process
Export Market
Development R&D Grants CAPEX Subsidies
Grant (EMDG)
R&D
R&D Tax Incentive
Commercialisation
Program GrantsAusIndustry EP Growth Grant
Entrepreneurs Programme
$20,000 grant funding available on a 50:50 basis to support
SME’s to engage in external consultants to assist with business
development activities (project fee $40,000; grant $20,000)
To be eligible, businesses need to:
Have annual revenue or expenditure between $1.5M and $100M
Be in business for >3years
Operate in specified industries, including Advanced Manufacturing,
Food & Agribusiness and Medical Technologies
Or be an enabling service provider (e.g. Transport)
Streamlined approach & dynamic reports – Growth RoadmapR&D Tax Incentive
AusIndustry R&D Tax Incentive Program
Provides higher tax rebate for eligible R&D projects that deliver a new
product, process or service
Applicants must be Australian registered companies (not Trusts) and
must control the IP
FY2019/20 tax offsets:
Turnover of less than $20M are eligible for a 43.5% refundable tax offset
Turnover of greater than $20M are eligible for a 38.5% non-refundable tax
offset
The work must involve R&D which will deliver a new product, process
or service, which based on research of publicly available solutions
does not exist in the marketplace (worldwide)
As the outcome of the work cannot be known in advance on the basis
of current knowledge or experience, the applicant undertakes
systematic R&D activities that involve experimentationEMDG
Austrade Export Market Development Grant Program
Financial assistance program to encourage SMEs with turnover less
than $50M to develop export markets
Reimburses up to 50% of eligible export promotion expenses above
$5,000 to a maximum grant of $150,000 annually for up-to 8 years
Eligible Expenditure
Overseas representatives
Marketing consultants
Marketing visits
Free samples
Trade fairs, seminars, in-store promotions
Promotional literature & advertising
Overseas buyers
Registration and/or Insurance of eligible Intellectual PropertyCase Study – Capex Grant Funding Secured
Stage 1
Matthews Steer assisted Ferguson Plarre to apply for and
prepare a Factory Expansion Plan
subsidised by an AusIndustry EP Business Grant
Stage 2
Matthews Steer assisted Ferguson Plarre
to apply for a MMF grant for a
Robotics led Automation of Bakery Manufacturing project
In late April 2020, they were awarded a $950,000 grantCapex Funding Source:
Manufacturing Modernisation Fund (MMF)
Key Objectives
To support investment in efficient and transformative manufacturing processes
by small and medium sized enterprises (SMEs)
To support jobs growth and a more highly skilled workforce in the
manufacturing sector
The intended outcomes of the program are to support:
Investment in efficient and transformative manufacturing processes by SMEs
Jobs growth and a more highly skilled workforce in the manufacturing sector
Assessment Criteria
Improved manufacturing competitiveness and lead to job growth
Capacity, capability and resources to deliver the project
Impact of the grant funding on the project
CAPEX funding programs are increasingly open for short timeframes and it is
important to undertake the planning well before programs are announced.Capex Grant Funding Criteria Impact of the project on employment and skills Level of economic benefit the proposed project will bring to Victoria / Australia Demonstrated skills, experience and resources Level of investment by the company, including how this will be funded Value for money (from the perspective of the Government) Need for government support
New pathway to access Government subsidies for
Capital Equipment / Expansion
Stage 1
Prepare Capex / Expansion Plan
Utilising
AusIndustry EP Grant
Stage 2 – Pathway B
Stage 2 – Pathway A Access new Federal & State
Access existing Government Grant Government Grants to be announced soon
Programs as
COVID-19 Recovery InitiativesBuilding Resilience & Financial Stability
Techniques and strategies for building resilience and
financial stability
Risk Reviews
Risk identification and mitigation
Restructuring
Asset protection and Director’s Liability
3-Way Financial Forecasts
Projected profit & loss, balance sheet and cashflow projections
Strategic Planning
Growth focused business planning and developmentRisk Reviews
Help identify significant areas of risk exposure and develop
risk mitigation strategies to protect businesses
Confirm Risk Categories
Identify Major Risks by Category
Categorise Identified Risks
Assess Risk Mitigation Options
Risk Ratings are determined by comparing the Likelihood of
an event occurring with the scope of ConsequencesRisk Reviews
Risk Categories
Strategic Risks
Operating Risk – including OH&S, Compliance & Legal
Human Resource Risks
Finance Risks
Risk Exposure may also result from:
Out-dated corporate structures
Inadequate asset protection structures
Inefficient operational processes
Inability to accurately track costs and profitabilityRestructuring & Asset Protection
Asset Protection 101
Property / Assets under Spouse’s name or in trust
Secure credit loans
Debtors / Stock
Personal Liability of Directors
Fiduciary duties under Corporations Act
Vicarious Liability
Directors should not hold assets in own name
Financing: Using private money or family home as security
Company/Trust owes you money – register as secured creditor
Using family home as security for bank loan3-Way Financial Forecasts
3-Way Forecast Model
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Benefits
3-Way Forecasts can be used to assess the profitability of a
business, the health of its balance sheet, and cashflow
requirements now and into the future
Robust forecasts empower management to evaluate the impact
of important business decisions on profitability, the cash position
in the future and make financial decisions with confidenceStrategic Planning
Undertake strategic planning to formalise your growth plans to:
Achieve significant growth in revenue and profitability, on a
sustainable basis
Enhance market development activities
Improve the effectiveness of business processes and
supporting systems
Identify capital equipment requirements to modernise
production processes, including identification of potential
Government grantsWhere to from here? There are a range of Government grants available to businesses and we are happy to discuss potential grants for your business We are expecting a range of COVID-19 recovery initiatives to be announced progressively to kick-start the economy We will send information progressively to Hume Council for distribution to businesses Please feel free to contact the Matthews Steer grants team on any specific opportunity as the range of grants and eligibility criteria constantly change
Questions?
Thank You from the Grants Team
ADRIAN MISIANO, JOHN COULSON & TRISTAN GLENNON
apmisiano@matsteer.com.au
jcoulson@matsteer.com.au
tglennon@matsteer.com.au
03 9325 6300You can also read
