Small Businesses in 2021: 5 Things to be aware of
2020 is over – and good riddance!
While we’re all ready for a fresh start, it doesn’t mean that 2021 is going to be a walk in the park for small businesses. In fact, as the nation becomes more prepared to deal with COVID-19, the regulatory and financial landscape for small businesses will get very different. Temporary measures put in place to sustain businesses in 2020 have come to an end, and it’s essential to stay proactive and be aware of any legal issues that could likely impact your business and employees. Read on for the top 5 things small businesses should be aware of this year.
- Any pause on ASIC enforcement will be short-lived
- ASIC will be focusing on misconduct that took advantage of the pandemic environment, such as poor claims handling, superannuation issues, predatory lending, misconduct and product mis-selling;
- ASIC will resume many of its activities that were temporarily suspended during COVID-19, such as implementing the recommendations of the Banking Royal Commission; and
- ASIC will be cracking down on individual liability.
- 2020’s insolvency relief laws have changed
- engaging a Small Business Restructuring Practitioner (SBPR) to certify the plan and to oversee disbursement and distributions to creditors;
- preparing and presenting the plan to creditors in 20 business days;
- implementing the plan only when over 50% of the creditors vote in support of the plan; and
- ensuring any outstanding employee entitlements are paid out in full before the plan is voted on by creditors.
- COVID-19 is not going away
- Review your contracts
- Review your lease agreements