When Should Clubs Re-Open For Business To Ensure Their Survival?

It has been a difficult time for the Hospitality/Clubs industry during COVID-19 over the past 3 months. With the recent roadmap released by Queensland Government for easing restrictions over three stages, many clubs are now faced with the challenge of when they should open to be financially viable.

Before you consider re-opening, you should seriously consider these questions:

• Have you completed any financial modelling,  including break-even analysis to plan ahead and minimize your business risks taking the roadmap into consideration?
• Are you opening just for the sake of opening, which may be negatively impacting your long term financial sustainability?

As specialists in the Hospitality industry, MGI South Queensland Accountants, Business Advisors & Auditors can help you make the right decisions about when you should re-open your club to make financial sense.

MGI South Queensland is offering a FREE 1 HOUR CONSULTATION with one of our experienced Accountants to help guide you make the right decisions for your club.

Queensland small businesses can now apply for up to $10,000 grant under a new $100 million package to help them counter the impact of COVID-19.

The package was announced today as part of Queensland’s Economic Recovery Strategy: Unite and Recover for Queensland Jobs.

The Small Business Adaption Grant program aims to support small businesses subject to closure or highly impacted by the coronavirus (COVID-19) shutdown restrictions announced by the Queensland Government, to adapt and sustain their operations, and build resilience.

In recognition of the significant impacts of COVID-19 on small businesses, the funding of up to a maximum of $10,000 per eligible small or micro business to be used towards the following:

• financial, legal or other professional advice to support business sustainability and diversification
• strategic planning, financial counselling or business coaching aligned to business development and diversification
• building the business through marketing and communications activities, for example, content development (web pages, mobile apps, visual and audio media etc.)
• digital/technological strategy development
• digital training or re-training to adapt to new business models
• capital costs associated with meeting COVID-19 safe requirements
• specialised digital equipment or business-specific software to move business operations online (e.g. logistics program for online ordering)
• meeting business costs, including utilities, rent.

To be eligible, the business must:

• have been subject to closure or otherwise highly impacted by current shutdown restrictions announced by Queensland’s Chief Health Officer on 23 March 2020
• demonstrate that business revenue has been significantly impacted since 23 March 2020 over a minimum 1-month period due to the onset and management of COVID-19
• employ staff and have fewer than 20 employees at the time of applying for the grant
• have a valid Australian Business Number (ABN) active as at 23 March 2020
• be registered for GST
• have a Queensland headquarters
• have an annual turnover over $75,000 for the last financial year
• have a payroll of less than $1.3 million
• not be insolvent or have owners/directors that are an undischarged bankrupt.

If you are eligible, please apply via the following link or contact our office for assistance:

Click here to apply

Prior to application, please ensure you are familiar with the Grant guidelines and obligations.

Assessment

The assessment will be processed on a first-come, first-served basis and application will close once the funds have been fully exhausted.

Grant Payments and obligations.

Funding will be paid upon approval of your grant application.

Within 1 month of completing the project, applicants must:

• complete and submit an acquittal report through SmartyGrants
• submit copies of supplier invoices and proof of purchase for the total project cost.

If you would like more information on how to apply please contact a member of the MGI South Queensland team.

The State Government has provided multiple forms of land tax relief to landlords through the following measures:

• A rebate reducing land tax liabilities by 25% for eligible properties for the 2019/20 year.
• A waver of the 2% land tax foreign surcharge for foreign entities for the 2019/20 year.
• A 3-month deferral of land tax liabilities for the 2020/21 year.

The deferral and waiver will be automatically applied, however, you will need to apply for the rebate.

To be eligible you must fit into one of the two following criteria:

 1. You are a landlord who leases a property to one or more tenants and all the following apply:

– Your regular rental income amount is affected by COVID-19.
– You will provide rent relief to the affected tenants.
– You will comply with the leasing principles.

2. You are a landlord and all of the following apply:

– Your property is available for lease.
– Your ability to secure tenants has been affected by COVID-19.
– You require relief to meet financial obligations.
– You will comply with the leasing principles.

More information surrounding the leasing principles can be found at: https://www.treasury.qld.gov. au/budget-and-financial- management/revenue-and- taxation/leasing-principles/

If you would like more information on how to apply please contact a member of the MGI South Queensland team.