Restructuring Insights

23 October 2021

Australian vaccination rates are rising rapidly and some bricks and mortar business' that have experienced extended lockdowns are opening their doors again.

But what will the end of 2021 and 2022 look like for business owners?

We expect a varied picture to emerge. Plenty of businesses will bounce back, recover and thrive - but not all.

For some, closing the doors may be the only option left. What people all have in common is the need to understand their financial options.

OPTIONS SUPPORT HUB

Our team has used our collective insights and experience working with clients to create a support hub for those who are navigating these uncertain financial times - and often may feel isolated or alone.

The RSM Options Hub includes:

A quiz to help business owners assess where they are at, right now
Blog post resources, including an Options Report process and a focus on mental health
A video of a business owner sharing his personal experience
A direct phone line for free, initial phone consultations: 1300 263 816

We hope you have enjoyed our monthly insights newsletter.
If you have any feedback around topics you’d like us to cover in future editions, please get in touch.

Best regards,
The Restructuring and Recovery team

BLOG POST

Liquidation or bankruptcy: Sometimes it’s for the best

Going into liquidation or becoming bankrupt can seem like a terrifying prospect - but in some situations, it’s for the best.

A really common question we get asked by our clients is: “Will I go to jail?”. When people realise this is an incredibly rare outcome - they tend to immediately feel some sense of relief. There is clearly a lot of fear in the community about bankruptcy and liquidation. Our team aims to make people feel as comfortable as possible, and dispel some of the myths.

This month we interviewed WA-based Travis Kukura, Principal, Restructuring & Recovery at RSM, about bankruptcy and liquidation and why in some circumstances, these paths offer the best outcome for all involved.

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Mandatory Director ID Numbers - are you ready?

From 1 November 2021, Directors will need to verify their identity as part of a new director ID requirement.

A Director identification number (Director ID) is a unique identifier you need to apply for once and will keep forever.

It will help prevent the use of false or fraudulent Director identities. The Director ID regime is intended to tackle illegal ‘phoenixing’ activities and increase Director accountability and traceability. DIN’s will be recorded in a new database to be administered and operated by the ATO and be made available to the public.

CONTINUE READING >>

SECTOR SPOTLIGHT

NOT-FOR-PROFIT

In 2020 we saw headlines like this: “Australian charities heading for 'funding cliff' when COVID-19 job support ends,” ABC News.

According to the Australian Communities Report 2021 produced by McCrindle, despite the pandemic, Australians’ giving remained consistent with previous years, but the way in which people give continues to change.

“Australian givers are more likely to be opportunity givers (60%) than committed givers (40%), giving when they hear about a need or an issue or when they are approached for a donation or support rather than committing to regular donations throughout the year." Source here.

This creates challenges for the NFP sector, in terms of budgeting predictions and cash flow.

Our team is currently working with a number of different types of not-for-profit organisations to consider their financial situation in this continually evolving and challenging environment. Our local team is here to help explore the options available to them, including restructures and mergers.