The Fair Work Commission has decided to increase the national minimum wage by 1.75% to $19.84 per hour, which equates to $753.80 per week.

Modern Award rates of pay will also increase by 1.75%.  However, due to the COVID-19 crisis and the state of the economy, the increases to the Modern Awards will be introduced in stages over the next 8 months between 1 July 2020 and 1 February 2021 as follows:

Group 1 Awards

Modern Awards to be increased from the first full pay period starting on or after 1 July 2020:

• Frontline Health Care & Social Assistance Workers;
• Teachers and Child Care; and
• Other Essential Services.

Group 2 Awards 

Modern Awards to be increased from the first full pay period starting on or after 1 November 2020:

• Construction;
• Manufacturing; and
• A range of other industries.

Group 3 Awards 

Modern Awards to be increased from the first full pay period starting on or after 1 February 2021:

• Accommodation and Food Services;
• Arts and Recreation Services;
• Aviation;
• Retail; and
• Tourism.

To access a full list of the Modern Awards and the relevant increase dates as published by the Fair Work Ombudsman’s website, we have included a link here. ...

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Businesses should make sure they are aware of the recent changes to the Fair Work Act 2009 (Cth) (FW Act) for the JobKeeper Payments, and the new provisions in a number of Modern Awards, as they contain flexibility provisions that will assist in managing your employees and labour costs during the COVID-19 crisis.

We have summarised the key changes, provided some key links below and also answered some of the more commonly asked questions, to assist your business in understanding and best utilising these new provisions.
JOBKEEPER PAYMENTS
The JobKeeper Payments are now available to businesses to assist in retaining your employees through the crisis. To find out if your business is eligible and the steps you need to follow, you should contact the ATO. Key links for additional information include:

• Treasury: https://treasury.gov.au/coronavirus/businesses
• ATO: https://www.ato.gov.au/general/JobKeeper-Payment/

In short, your business may be eligible for $1,500 per fortnight per employee until 27 September 2020 to assist in retaining their employment. Not all employers and employees will be eligible, so it will be important to check if your business is entitled to participate, and which of your employees will be eligible for the payments. There are a number of exclusions businesses will need to be across.

Remember that your business will need to have paid the eligible employees before you receive the payments from the ATO and the payments will start to be made by the ATO to eligible Employers from next month.

You will also need to ensure you keep the ATO updated on any changes to employees you are receiving JobKeeper Payments for. Failure to disclose such changes could result in a recovery of any overpayments made to your business, as well as interest and potential penalties if it ...

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Are you a business owner concerned about what will happen if you are unable to pay your rent amidst the COVID-19 pandemic? Or a landlord unsure of what your obligations are to your tenants in the event that they cannot meet their obligations under a lease agreement? In either scenario, it is helpful to familiarise yourself with the proposed government response, current laws surrounding forfeiture, and potential for relief against forfeiture.

On 7 April 2020, the National Cabinet announced a mandatory Code of Conduct. The Code only applies to tenants with an annual turnover of up to $50 million that are suffering financial distress or hardship as a result of the COVI-19 pandemic as defined in the Commonwealth Government’s JobKeeper programme. As Queensland has not yet changed its laws surrounding evictions, and the Code does not apply to all tenancies, it is important to understand the current risk that financially struggling businesses face from the laws surrounding forfeiture.
What is forfeiture?
Forfeiture is a method of determining a lease by the lessor retaking possession of the property following default by the tenant of an obligation. Many leases will contain an express forfeiture clause, but if they do not forfeiture can be accessed as a proprietary remedy.

The key aspects of forfeiture to keep in mind are:
1. The tenant must default on a particular kind of obligation
In order for a lease to be forfeited, the tenant must default on an obligation under the lease agreement. Under s 107(d) of the Property Law Act 1974 (Qld), default could include a one-month failure to pay rent or a two-month failure to fulfil other obligations. Importantly, lessors cannot evict tenants pre-emptively or immediately once they default on an obligation and the default must be sufficiently serious to enliven forfeiture laws.
2. If the default is waived by the lessor they cannot later try and claim forfeiture
A lessor may waive any covenant in the lease which serves to ...

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The current COVID-19 pandemic and subsequent government action may have you uncertain about what obligations you owe under existing contracts and what you should expect from other parties. Amidst this uncertainty, it is possible that you have already planned ahead in the form of a ‘force majeure’ clause in your contract, which are those dealing with the consequences of unforeseen events. To gain a better understanding of your obligations it is a good idea to check through your current contractual undertakings and consider:
What is a force majeure clause?
A force majeure clause is a clause in a contract which specifies modifications to the contract, such as giving the right to suspend or terminate the agreement, if a particular event occurs without the fault of either party. Often such a clause will appear as a list of circumstances for which the parties wish to create a contingency plan commonly these clauses may include terms such as “an act of God” or “civil unrest”.
Does the COVID-19 pandemic fall within the scope of that clause?
Whether the COVID-19 situation falls within the scope of the clause depends on your particular contract. In some contracts the clause may provide an exhaustive list of events which will trigger the clause. If this list includes terms such as ‘pandemics’, ‘epidemics’, ‘health events’, ‘quarantine’ or ‘government action’ then the force majeure provisions will most likely apply.If the clause is more open-ended, it will depend on the wording of the clause as to whether the pandemic will fall within the scope of this clause.
Has your ability to perform the contract been interrupted or prevented by a force majeure event?
There must be a sufficient connection with the pandemic and your inability to perform the contract (or part thereof). For example, it would be difficult to link COVID-19 with a failure to comply with a confidentiality clause but it may be reasonable to ...

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The government released the National Cabinet Mandatory Code of Conduct (Code) outlining principles that apply to negotiating amendments to existing lease arrangements for ‘SME Commercial tenants’ suffering ‘financial stress or hardship’ during the COVID-19 pandemic period.SME Tenants are tenants with an annual turnover of $50 million or less that are eligible for the governments JobKeeper programme. The COVID-19 pandemic period is the period in which the JobKeeper programme is operational (Pandemic Period).
Key Principles
The Code prescribes the following key principles during the pandemic period:

1. Landlord’s must offer commercial tenants proportionate reductions in the form of waivers and deferrals of up to 100% of the amount ordinarily payable based on the reduction in the tenant’s trade during the Pandemic Period;
2. Rental waivers must constitute no less than 50% of the total reduction in the rent payable under the above principle over the Pandemic Period. Tenants may waive the requirement for a 50% minimum waiver by agreement;
3. Payment of rental deferrals by the tenant must be amortised over the balance of the lease term and for a period of no less than 24 months, whichever is greater, unless otherwise agreed by the parties; and
4. Any reduction in statutory charges or insurance will be passed on to the tenant in the appropriate proportion applicable under the terms of the lease;

*To be clear, rent waivers are not to be repaid or amortised. It is effectively a credit note against rent otherwise payable.Financial stress or hardship is defined as the inability to generate sufficient revenue as a direct result of the COVID-19 pandemic (including government-mandated trading restrictions) that causes the tenant to be unable to meet its financial commitments (including lease commitments). It may be arguable that a ...

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In the current climate of business closures and decreased consumer confidence amidst the pandemic, many businesses are experiencing unprecedented financial hardship. If you are concerned about the risk of insolvency for your business, being aware of the opportunity that safe harbour provisions present could help you form a plan for the next best step for your business.

What is safe harbour provision?
As a director, you generally have a duty to prevent your company from trading while insolvent and can be held personally liable for any debts incurred while the company is insolvent if you fail to do so. As opposed to immediately going into voluntary administration and surrendering control over the company when you think the company may be insolvent or at risk of insolvency, s 558GA of the Corporations Act 2001 (Cth) provides a ‘safe harbour’ from your personal liability as a director and a chance to form a plan to recover the company’s financial position. Importantly, to access these protections you must develop a course of action that is reasonably likely to lead to a better outcome for the company.

If you are considering relying upon the safe harbour exception, there are a few important things to take into account:
The federal government passed amendments on March 24th that make safe harbour more accessible
The amendments passed take effect on March 24th 2020 and provide concessions to directors seeking to rely upon safe harbour for 6 months, or until September 23rd. The new  safe harbour law no longer require companies to be fully compliant with their taxation reporting or payment of employee entitlements in order to access the benefit of safe harbour provisions corporations act. While this change will be helpful to all businesses, it will particularly assist small-medium sized businesses who are likely to be suffering the most at the moment and are typically the least likely to be fully compliant ...

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Stage 2 Shutdown – Places of Social Gatherings
The Stage 1 restrictions on social gatherings imposed at midday, 23 March 2020 will remain in place., with Stage 2 restrictions on social gatherings also now be imposed from 11.59pm today, Wednesday, 25 March 2020.
Stage 2

• Cafes – limited to takeaway and home delivery services, as well as canteens in hospitals, care homes, schools, prisons, military, homeless and workplaces;
• Auction houses, real estate auctions and open house inspections – except for private appointments for inspection;
• Outdoor and indoor markets – as determined by each State and Territory, food markets will continue to operate in all States and Territories;
• Beauty and personal care services – hairdressers and barber shops (up to 30 minute appointments only, with the 1 person per 4 square metre rule), beauty therapy, tanning, waxing, nail salons, tattoo parlours, spas and massage parlours;
• Entertainment venues – including cinemas, nightclubs, casinos, gaming and gambling, strip clubs, brothels, concert venues, theatre, arenas, auditoriums, stadiums (except for live streaming of a performance by a small group with social distancing observed), amusement park and arcades, as well as indoor and outdoor play centres;
• Leisure and recreation centres - health and fitness clubs, yoga, barre, spin facilities, saunas, bathhouses and wellness centres;
• Boot camps, personal training operating inside and outside (except for outside events limited to no more than 10 people and social distancing observed);
• Social sporting based activities and swimming pools;
• Hotels, hostels, bed and breakfast, ...

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1.Dive in unprepared.

• Making an offer before you understand the business and structure of the seller.
• Making an offer before you have undertaken proper due diligence.
• Not seeking professional advisors before you intend to enter a transaction.

2. Appoint the wrong advisors or appoint the right ones too late.

• Accountant
• Lawyers
• Business broker / corporate advisor

3. Fail to address tax and structuring issues from the outset.

• CGT
• Stamp duty
• Risks for buyer and seller entities
• Guarantees / warranties
• Limit of liability

4. Forget about working capital.

• Commonly misunderstood. Most share sales have a working capital adjustment and a level of cash and receivables are left in the business.
• In an asset sale, parties often reach agreement, but working capital is not addressed. When a buyer realises he needs another $500,000 to operate the business, the deal may fall over.

5. Jump to formal agreements when a term sheet might save time and money by ensuring parties are on the same page on key issues before diving into the detail.

6. Understand whether you can get along with the seller or buyer post settlement.

7. Fail to consider vendor finance and appropriate securities (and if seller is the ‘bank’ and you are working with them it can be uncomfortable).

8. Announce a sale too early

• To Staff
• To Suppliers
• To the Market

9. Ask due diligence questions too late and then ask for adjustments.

10. Competitor paranoia complex. Over thinking/assuming the buyer is just looking under your hood. ...

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Gift cards: the backup when you're fresh out of ideas for that person who has everything.

Remember that time you excitedly went to cash in grandma's birthday present, only to find you were a week too late? Well, this dilemma is soon to change. ...

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Many tenants under retail or commercial leases don't realise the extent of their obligations once their lease comes to an end. De-fits and make-goods can be costly, so knowing your obligations before you sign your lease is key. ...

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