Job Keeper and Tax Cuts

If this is correct .... looks like job keeper will be extended 2021??? And tax cuts for all


Income support WILL continue past JobKeeper's planned end date says Scott Morrison | Daily Mail Online

 

Tax cuts already on the cards, talks about bringing them forward.

 

Lets hope some thought goes into this next lot of jobkeeper The first 6 months has so many faults - it's actually ludicrous some of it.

Just a thought - if a business makes 1million a year profit - should they not be able to last as a business if they have a month with a 30% loss. To be honest they should be able to cope with a whole year at 30% loss, thats still 700k profit.
Where is the need for jobkeeper here?? This business could have 30 employees being paid by the taxpayer for 6 months.
Seems weird to me, although I know who all these businesses will be voting for come next election...

ps I'm ready to get flogged over this but it is how I feel

 

its not as black and white as that, even if they did make that profit they may of reinvested it somewhere else or paid down debt, what really needs to be looked at is the current revenue of a business, as it shrinks, the companies just let staff go regardless of whats happened in the past

 

I think at xmas there may be a better picture of what's to come, especially after Europe has been open for a while and the flow-on effects of transmissions and the actions their governments take.

We have been looking for a commercial lease for the company in Brisbane and I can honestly say I have never seen so many signs out the front for lease. Almost every second (and 3rd) building or shop is for lease, it is simply incomprehensible what is happening

 

But to me it is irresponsible to run a business that cant cope with a 1 month 30% loss.
I'm now hearing of big brand name car yards that shut there doors long enough to incur the 1 month 30% loss. What do you know, they are back up and running and all staff on jobkeeper for 6months = big money

 

Not sure but people were telling me to stay away from commercial property months before covid19.

 

I forgot to add that a company that has a pbit of 1 million is likely to be on an accrual-based accounting method which is different from smaller companies

 

And?

 

just because a company reports a 30% loss does not mean that it was being run irresponsibly, there are a vast number of variables that can contribute to that, regardless it is the companies forecasted cashflow which will push the pen to redundancies

 

Of course you misunderstood me. I never said a company that reports a 30% loss is irresponsible, in fact I feel it could be normal.
I'm on about why they need to be supported by the taxpayer for the next 6-12months with free jobkeeper payments for themselves and all there staff. Bearing in mind we are talking about a company that clears 1 million a year profit.

 

The media seems to be highlighting the businesses that have “benefitted” From jobkeeper. There are many businesses such as mine (fitness industry) that were forced to close for 3 months. No business plans to cope with zero revenue but maintain overheads and staffing costs. People running businesses like mine are scraping the barrel hard to stay afloat even with jobkeeper. People are not rushing back to the gym for so many reasons...

Jobkeeper is based on revenue, not profitability. A 30% drop in revenue will not equal 30% drop in profits. For most businesses a 30% drop in revenue will mean there is no profit left and you are probably losing money. You might want to brush up on your fundamentals of how a business operates.

 

because profit often has nothing to do with cashflow/turnover which is why the government allowed the eligibility test to be based on turnover

 

I hope jobkeeper last for 100% as long as it takes for businesses such as yourself and others that have had to close the doors through no fault of there own. I so support that.

I just don't support the ones who are getting it but definately do not need it, and there are a lot - it's a fact and also it is NOT mentioned in the media in my opinion, I have not seen a single story on it.

Ok i may have worded profit and revene around the wrong way, but I think it is clear what I'm talking about.

 

I had that chat today with someone, it’s insane , beyond belief , the amount of commercial stuff for lease , a couple weeks ago 25 places for lease between the valley and new farm alone , in what 2km of inner Brisbane ?
It wasn’t that bad in the UK in 2008

And plenty people even on this forum spruiking how solid things are and there won’t be a property fall, they must drive around blindfolded

 

Europe is a good example....coronavirus hasn't gone away. Even now, Spain, UK and Germany have placed regions and cities back into lockdown and this will continue happening until a vaccine is developed. Living with lockdowns is the 'new normal' for the foreseeable future that everyone, like it or not, will need to adhere and adapt to.

 

Agree. In most businesses profit is generated by the top 10-20-30% of sales. The first 70+% pays the bills.

 

Yep and companies can still make huge profits regardless of cashflow/revenue/turnover.
And add to that apply and get jobkeeper to cover there staff. Discraceful stuff really but it is the government who is to blame not really the businesses for abusing it.

 

no flogging here, I think the idea is also to help reduce further job losses/redundancies

 

Not heard this here, but am sure we wilL

Overseas - Some high profile insanely rich have been shamed, as they should.

Victoria Beckham's call for government funding triggers backlash

In US government forgiving loans (Dont have to pay loans back), this is disgraceful

https://www.washingtonpost.com/busi...d9b1d0-bfcc-11ea-8908-68a2b9eae9e0_story.html