Small Business – The end of JobKeeper

With JobKeeper coming to an end it is very important that small businesses review their projected income and anticipated expenses for at least the next six months. Small and medium-sized businesses are the employment powerhouse of the Australian economy, and the end of JobKeeper will have a substantial impact on most businesses, particularly small businesses.

It has been estimated that there could be as many as 100,000 retrenchments as a result of the JobKeeper assistance coming to completion.


  • If you are the owner or operator of a small business, as a starting point, we suggest you ascertain your anticipated expenses for the next six months, without the aid of JobKeeper.
  • Secondly, you should project the revenue your business needs to derive in order to cover these expenses.
  • Finally, with the aid of your accountant, you should factor in the impact that GST, income tax and PAYG instalments may have on your business cashflow.

Based on the results of this process you should have a clear indication of whether you are likely, over the next six months, to derive a cash flow surplus, deficit or in fact just break even.

If your projections indicate that your business is likely to experience a cash flow deficit or break-even over the next 6 months, you should review your business expenditure again and consider if there are any expenses that may be able to be cut further or delayed for six months or more.

The final issue that small business will need to consider is the retrenchment of staff. Most businesses will do everything they can to retain their staff rather than retrenching staff now and inevitably recruiting and training new employees in six months.

With some prudent planning and homework now, that potential predicament may be circumvented. 

Other cost saving measures that small business should consider include;

  1. Depending on the anticipated revenue, is there a need to make permanent employee redundancies or reduce staff hours?
  2. Negotiate concessions from suppliers.
  3. Apply to the landlord for rent relief.
  4. Request the extension of financial facilities with the bank or finance provider.
  5. Consider the injection of equity capital.
  6. Applying for a variation to your quarterly PAYG Instalments.

Should you have any questions with regard to Small Business or JobKeeper, please submit an online enquiry now or call Peter Quinn on +61 2 9580 9166.  We also offer a FREE 45-minute consultation should you have other financial planning, taxation or superannuation issues you may wish to discuss.

The information in this document does not take into account your personal objectives, financial situation or needs, and so you should consider its appropriateness having regard to these factors before acting on it.  It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.