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IN THIS ISSUE

The "New Normal" for MGI Bass Gordon  • Budget 2021: What it Means to You  • 3 Survival Tips for Your Small Business in 2021: Little Things with a High Impact  • The Department of Small Business Development’s Lifelines to Suffocating SMMEs  • New National Minimum Wage and Earnings Thresholds from 1 March 2021  • Tax Deadlines for March

The "New Normal" for MGI Bass Gordon

This week marks the 1-year anniversary of remote working for our team. What a year it has been! Over the past 12-months we have embraced so many changes. We look forward to sharing our new normal with you in the coming weeks. “We (at MGI) didn’t just change one thing. We’ve changed everything!”
 
Watch this space! 

Budget 2021: What it Means to You

Faced with apprehension, the first Budget Speech of the “new normal’ was generally well-received, with the Rand holding steady, markets reacting positively, and South Africans breathing a collective sigh of short-term relief.

A surprisingly optimistic 2021 Budget provided funding for COVID-19 responses without hiking direct taxes, and previously announced tax increase proposals were withdrawn.
 
As Finance Minister Tito Mboweni called it, the 2021 Budget fiscal framework is “a sound platform for sustainable growth that creates several reasons for hope”. Find out what has changed and what it all means for South Africans as well as small and medium businesses now and in the future.

3 Survival Tips for Your Small Business in 2021:
Little Things with a High Impact

Given the past year's pandemic and economic chaos it's relatively safe to call the present a “hostile economic environment”.
 
Small businesses are struggling across the board as imports are hard to come by, exports near impossible to make, and clients are stripped of their expendable income. In these circumstances it's wise for the small business owner to do everything they can to not only survive in these harsh conditions, but to keep staff on board, and position themselves for better times.
 
We list three easy things every small business should be doing to maximise profit in 2021.

The Department of Small Business Development’s Lifelines to Suffocating SMMEs

SMMEs have had some unusual hurdles to jump over in order to keep their doors open in recent times.
 
Some relief from the impact of the COVID-19 pandemic and subsequent lockdowns, which have had such a destructive domino effect on businesses, is available as the government has put in place resources to help small businesses with problems across the board. These resources aim to help correct imbalances across gender lines in directorship, business performance, COVID-19 constraints, business stagnation and other growth stunters.
 
Here are some of the government resources available to SMMEs to keep them afloat.

New National Minimum Wage and Earnings Thresholds from
1 March 2021

1 March 2021 sees a new National Minimum Wage in place, plus an increase in the “earnings threshold” provided for in the Basic Conditions of Employment Act (BCEA).
 
Quoting from the Employment and Labour Minister’s formal announcement of the changes, we set out the increases for employees generally, as well as those for each of the main employment sectors (domestic workers, farm workers, contract cleaners, wholesale/retail sector), with notes on the percentage increases in each. For employers of domestic workers we also provide a link to a useful “living wage” calculator.
 
We also summarise the BCEA protections that will no longer be available to those newly earning above the adjusted earnings threshold.

+27 21 405 8500 | info@bassgordon.co.za
Suite 1502, 15th Floor, Portside, 4 Bree Street, Cape Town, 8001

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