Publications - COVID-19
Unforeseeable Circumstances and Terms of Trade - Part 3
26 March 2020
This follows on from our first two articles about how the COVID-19 pandemic is impacting trading.
It is a very tragic situation for many people who have had their businesses totally decimated, and some of the legal ramifications will be very difficult to manage.
A number of suggestions are made here.
Where can I find more information?
If you would like advice in relation to your own personal circumstances, please contact us. We will endeavour to respond to any queries that come through on our website as quickly as possible. Click here, or call one of our lawyers.
It is a very tragic situation for many people who have had their businesses totally decimated, and some of the legal ramifications will be very difficult to manage.
A number of suggestions are made here.
- Look at your fixed costs and work out how you can cut them back and speak with your accountant for further advice. There are obvious and tragic consequences, for example, in relation to employees in this regard.
- Your premises will need to be looked at. In some cases, you may find that your lease has provisions in dealing with this, although in many cases they will not. In any case, if your building is not able to be accessed because of a government decree or an order to vacate it, then that may entitle you to require the landlord to give you rent relief. Even if it does not, many landlords (it is hoped) will view approaches for rent relief favourably, although this may depend on their own financial circumstances. The Government announcements relating to Commercial leases on 7 April 2020 should offer some relief.
- You do want to continue to have productive capacity when all of this is over so bear that in mind when managing your reductions in costs. Everyone’s situation will be different and we all want to treat employees suppliers, landlords, banks and other people fairly but at the end of the day we also want to remain solvent and viable in the future even if a “hibernation” arrangement needs to be put in place.
- Talk to your bank. They all have hotlines. They are all saying they are here to help. Some of their offerings including short term loans (whether of the Government backed variety or otherwise) may be helpful to some.
- Don’t forget the government small business packages. Some relief is available from these.
- Ensure you take steps to receive all the tax rebates and assistance, both the rebates from the ATO and State payroll tax. Talk to the ATO hotline about other relief if needs be.
- You are not alone so do not be afraid to talk to others.
Where can I find more information?
If you would like advice in relation to your own personal circumstances, please contact us. We will endeavour to respond to any queries that come through on our website as quickly as possible. Click here, or call one of our lawyers.
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Emma Davies
Senior Associate Bradfield & Scott Lawyers Telephone: 9233 7299 Email: edavies@bradscott.com.au |
