We are led to believe that the ATO will not resume recovery activity through statutory demands until early 2022. Therefore, we now believe that construction industry insolvencies will remain relatively low until the end of 2021. Forecast insolvencies for 2020/2021 financial year may reach 971.
Record High in New Loan Commitments for Housing – 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.
The number of loans for the construction of a new dwelling increased by 27.1 per cent in the month of September 2020. This is the highest result since the Australian Bureau of Statistics (ABS) commenced collection of this data in 2002. The ABS building approvals, released on 3 November, which is a more lagged indicator of future building work shows the third strongest month of approvals for detached houses in the past 16 years.
The Australian Government has announced the most significant changes to the Australian Insolvency framework in almost 30 years. These reforms have been proposed in an effort to support small business amidst the potential impact of COVID-19. The changes are proposed to take effect from 1 January 2021 and will affect incorporated businesses with liabilities of less than $1 million.
This month’s newsletter features a press release from the HIA discussing that population growth and access to housing finance will be key to Victoria’s economic recovery. There is also a lead article discussing possible implications of the temporary protections for financially distressed businesses .
This month’s newsletter features a piece on “The ‘false comfort’ of extended temporary insolvency law measures and the need for deeper structural reform” written by Scott Atkins and Kai Luck. There is also an article explaining the close working relationship that BICB has developed with AMPAC Debt Recovery to build greater awareness of each other’s services throughout the the building and construction supply sector.
This month’s newsletter features a piece on “HIA forecasts new home building to fall in half” written by Business News Australia. There is also an article explaining the close working relationship that BICB has developed with AMPAC Debt Recovery to build greater awareness of each other’s services throughout the the building and construction supply sector.