Construction is the third largest industry in Australia for the number of people it employs and its GDP (Gross Domestic Product) contribution. However, it is the second largest industry when it comes to corporate insolvencies, with an average of 1,552 per annum. Understanding the nature of the industry is extremely important for effective credit management….
Key Points: Drop in Insolvencies What Will Happen in Construction Sector? Construction Insolvency Data Reading the Signs Impact of HomeBuilder Predictions for This Year Forecast for 2021/2022 Drop in Insolvencies Unprecedented fiscal stimulus led to a drop in insolvencies in 2020, but the full picture may not emerge until the second half of 2021. The…
The total value of new loan commitments for housing and the value of owner occupier home loan commitments each reached record highs in October 2020. The total value of new loan commitments for housing rose 0.7 per cent to $22.7 billion in October, seasonally adjusted.
Australian Construction Industry Forum (ACIF) forecasts published today outline that COVID-19 and the measures that have been taken to control its spread, have sent the message to hold or defer many new building projects. The ACIF Forecasts highlight that work done will fall again this year, decreasing 3.2 per cent over 2020-21.
Each quarter, CommSec attempts to find out how are Australia’s states and territories performing. They do this by analysing eight key indicators: economic growth; retail spending; equipment investment; unemployment; construction work done; population growth; housing finance and dwelling commencements. Just as the Reserve Bank uses long-term averages to determine the level of “normal” interest rates; CommSec have done the same with the economic indicators.
The Federal Government’s announcement that it would undertake the most significant reforms to Australia’s insolvency framework in 30 years is welcome news for many small businesses. For directors, it will be very important to carefully consider the information in the Government’s fact sheet outlining the reform process.
A well-executed personal guarantee can be the holy grail of debt recovery tools, but one overlooked detail can bring the whole thing to its knees. It is surprising the number of clients relying on guarantees that are either ineffectively drafted or have been inadvertently discharged by the actions of the client.