Newsletter - February 2022 Edition

 

  

14 February

Digital Marketing - Emerging and Influencing all Industries (Peter Horovitz and Hamish McIntyre)

 

Change is constant in all businesses. There has been no more significant change than the evolution of technology and its impact upon the business world. With this change, marketing has rapidly adapted to the digital environment and its ability to shape the way companies communicate with their stakeholders.

 

Three integral factors of digital marketing on business growth are:

  1. Establishing an online presence
  2. Understanding the most effective targeting channels
  3. The personalisation of a company’s brand.

 

Establishing an online presence

Digital marketing has allowed companies to generate greater exposure to a business’s services. The ability for a business to actively and frequently communicate with their target audience overall, enhances their service. Furthermore, an online presence creates a chance for individuals to instantly form opinions of the company, as well as build a relationship with them.

 

Your company’s online presence is now a must have, not a nice to have.

 

This is the first place your stakeholders experience your brand

 

Understanding what channels businesses are most effective in targeting

With the explosion of digital channels, marketers must use the “test, learn and refine” model to optimise channel and message selection. Given the immediacy of digital marketing, true measurement is possible in real time. Based on results, digital channels and messages can be highly refined to optimise effort and results

 

The personalisation of a company’s brand

Before advances in digital technology, businesses relied on first-hand experiences with customers to communicate their brand and the values they wished to project. However, the ever-adapting digital environment has provided organisations with the capability to communicate their brand in a matter of seconds to their audience. The portrayal of a company’s brand online can result in instant responses from audiences, meaning companies need to be certain about the message, values and image portrayed.

 

Ultimately, its impossible to avoid the emergence of digital marketing. It has already proved to help grow many companies, so embrace it! 

 

ATO support for businesses in difficult times

 

The ATO has reminded taxpayers that it has a range of support available for small businesses experiencing difficult situations, such as natural disasters, mental health challenges or financial hardship.

 

Depending on the business taxpayer’s circumstances, the ATO may be able to:

  • give the business extra time to pay its tax; 
  • set up a payment plan tailored to its situation;
  • re-issue tax returns, activity statements and notices of assessment;
  • help the business reconstruct lost or damaged tax records;
  • prioritise any refunds the business is owed; and
  • remit penalties or interest charged during the time the business has been affected.

 

Editor: If your business is in financial difficulty and needs support, please contact our office and we can assist in finding a suitable solution. 

 

Government extends SME Recovery Loan Scheme to 30 June 2022

 

The Government has recently extended the SME Recovery Loan Scheme by a further six months (to 30 June 2022) to support SMEs adversely economically affected by the Coronavirus Pandemic.

 

Under the Scheme, eligible businesses can obtain loans through participating bank and non- bank lenders with the backing of a Government loan guarantee.

 

Around 80,000 loans worth approximately $7.3 billion have been written to date since the Scheme commenced in March 2020.

 

SMEs who are dealing with the economic impacts of COVID-19 with a turnover of less than $250 million will be able to access loans of up to $5 million over a term of up to 10 years.

 

Other key features of the Scheme include the following: 

  • Lenders can offer borrowers a repayment holiday of up to 24 months.
  • Loans can be used for a broad range of business purposes, including to support investment.
  • Loans may be used to refinance any pre-existing debt of an eligible borrower.
  • Loans can be either unsecured or secured (excluding residential property).

 

Importantly, the Government’s loan guarantee has been reduced to 50% (down from 80%) for loans available from 1 January 2022 until 30 June 2022. 

 

COVID-19 vaccination incentives and rewards

 

The ATO has reminded employers to consider their tax and super obligations when employees are provided with incentives or rewards for getting their COVID-19 vaccination.

 

When employees are provided a cash payment, including paid leave for employees to get their COVID-19 vaccination (or additional paid leave to recover from any vaccination side effects), employers should withhold PAYG withholding and make super contributions on the amount.

 

Furthermore, the payment must be reported to the ATO via Single Touch Payroll (‘STP’) as part of the employee's salary or wage.

 

On the other hand, employers must consider the FBT consequences of providing non-cash benefits as an incentive for their employees to get vaccinated.

 

Such benefits may include:

  • Goods or services provided to the employee.
  • Vouchers and gift cards.
  • Prizes won by an employee in a competition (e.g., a raffle).

 

Note that certain FBT exemptions and reductions may apply in some circumstances.

 

For example, if an employer provides or pays for an employee's transport to get their COVID- 19 vaccination, there is generally no FBT payable. 

 

knPeople

 

As 2021 came to a close, we celebrated another successful year! Our end of year celebration was a great chance for our team to not only see each other in person again, but also embrace a new cultural experience together. We were lucky enough to try our hand at eating a traditional Sri Lankan dish, ‘Hoppers’.

 

With most of the team not having heard of the dish, it was an insightful experience for knp manager, Genevieve Rajakulendran to introduce and explain the Sri Lankan tradition associated with the tasty meal!