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The Government introduces JobTrainer and wage subsidies

Posted on July 22, 2020 by admin

The Government has introduced a $2 billion JobTrainer scheme, which aims to help businesses train or re-skill workers in Australian industries of high demand.

What is JobTrainer?

The new scheme will create 340,700 job opportunities nation-wide and will be open to recent school graduates and workers looking to re-skill in a new industry. Industries that will be covered by the JobTrainer scheme include:

The JobTrainer job positions will be distributed in proportion to unemployment levels per state, with New South Wales receiving the most training places (108,600) and the Northern Territory receiving the least (3,200).

Further subsidies for apprentices and trainees

Out of the $2 billion, $1.5 billion will be distributed to subsidising existing apprenticeships to keep workers employed and trained. Subsidies will be available to cover 50 per cent of an apprentices’ or trainee’s wages (up to $7,000 per quarter) who were employed from 1 July 2020. The Government encourages businesses to continue applying for the apprenticeship and traineeship subsidies to keep their employees working in light of Australia’s 7.4% unemployment rate.

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Getting your money back from late-paying customers

Posted on July 29, 2020 by admin

Businesses can be heavily impacted by customers who cannot, or simply will not pay when payment is due. A single unpaid invoice can cause issues, and the longer this debt is left uncollected, your chances of getting your money back become slim. Consider these tips to avoid and manage debt recovery to save your business from major losses.

Reduce credit terms
If late payments and managing bad debt is a regular occurrence, consider reducing your credit terms. You may want to remove your credit terms entirely, but it is important to look at your customer base, the services you offer, and whether there is an average credit term that is expected by your clients. If you offer credit terms shorter than your competitors, you may end up losing valuable customers. However, if your credit terms are too spacious, your cash flow will be slow, putting you at financial risk.

Encourage timely payments
Your business might require a set credit term to meet the industry average. In these situations, consider offering discounts on payments made early or within a set date from invoicing. An alternative is to charge a late fee to encourage your clients to pay on time. In these situations, it is necessary to first make your customers aware of the introduction of this policy clearly through your terms and conditions. To maintain good customer relationships, try to limit overdue fees to repeat offenders. You may want to monitor incoming payments to see if these policy changes are reducing your late payments.

Hire a debt collection agency
Efforts to pursue your late-paying customers may not always be successful. If the debt amount is less than $1000, it may not be financially viable to pursue legal action for violation of your credit terms. In such situations, consider outsourcing your debt collection to professional collectors. However, timely involvement is key to getting your money back. Give your clients sufficient time to make a payment, and if over two times the trading terms have passed, hire a collection agency to prompt your clients into making defaulted payments.

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