FASEA - My result and industry impacts

Posted on Wednesday, September 1, 2021
GOOD NEWS: I passed the FASEA exam!   This means I’m fully compliant and qualified to continue acting as a financial adviser through 2026.   The exam became obligatory for all advisers and brokers in the wake of the Royal Commission into financial services. Designed to ensure that advisers act in an ethical way, and in the best interests of their clients, it is pivotal to the future of our industry.   However, the process has taken an enormous toll on those studying and preparing for it, particularly during the pandemic.   The exam itself is tough, and the news out of yesterday’s results is that only 60% of advisers and brokers who sat the exam, passed. That means that almost half failed. Some of those for the second time, which means they need to either exit the industry or apply for special dispensation to sit the exam again.   On the one hand, you might argue this is a good thing as it removes people lacking in the requisite competencies from the indus ... Read the rest of entry »

Will deferring loan repayments impact your credit rating?

Posted on Wednesday, August 25, 2021
Business Analysis Report One question I’ve been asked a lot recently is whether deferring business or personal loan repayments due to COVID-related hardship, will affect your credit rating.   As we know, as the world plunged into the COVID abyss last year, there was a lot of uncertainty about how the pandemic would play out, and how the finances of businesses and individuals would be impacted.   Fortunately, amid the uncertainty, the banks came to the party. In fact, one of the few shining lights from last year was that understanding from the big banks that the 3 million Australian households with mortgages, would need help.   As of July 2021, the ABA announced banks will be providing support to those affected by COVID-19 lockdowns, allowing mortgage repayments to be deferred for up to three months. This would also extend the life of your loan by the same duration at the end.   Under normal circumstances, deferring your loan repayments could affect your credit rating. Things ... Read the rest of entry »

As lockdowns drag on, businesses are pushed to the brink

Posted on Wednesday, August 11, 2021
With the positive distraction of the Olympics now gone, a lot of people I’ve spoken to are finding it really tough to stay upbeat, with yet another lockdown extension announced today in Victoria, and no end in sight to the crisis in Sydney. The major issue most businesses are facing is the lack of government support. Of course, there are some government grants available to businesses in certain sectors, but that doesn’t help the vast majority of businesses, who struggle more and more with every day in lockdown. Some business owners I’ve spoken with have been left with no choice but to ask employees to take whatever leave they have available to them so they can stay in touch while they ride out the COVID wave. Others I’ve heard of are offering their employees leave without pay, given they have no work for them now, but they know they’ll need them back once the lockdown lifts. Some staff are so lacking in motivation and struggling with mental health they’re taking all the ... Read the rest of entry »

Everything you need to know about COVID grants

Posted on Wednesday, August 4, 2021
Let’s be honest, the Olympics could not have come at a better time. With half the nation in lockdown and kids being home-schooled it really has provided great inspiration to many. Unfortunately though, no matter how much we might try to escape reality, the pandemic continues to rage. Last week the government announced a variety of pandemic packages to support businesses in lockdown, and you’d be forgiven for missing the details. Below we have all the links you need to check to see if you are eligible for financial support this time around.  Generally speaking, to be eligible your business needs to show a fall in turnover for a specified period in 2021, compared to an earlier corresponding period. It’s also important to note that some of the grants are time critical. To see if your business is eligible for support and what periods you need to compare, check the government website for your state or territory: New South Wales Victoria Queensland W ... Read the rest of entry »

JobKeeper is gone, but the money's not, just don't call it JobKeeper!

Posted on Thursday, July 29, 2021
With half the nation in lock-down (yes, Victoria's out, but for how long?), in my opinion this is the toughest time many small businesses have ever faced. Despite the property and share markets soaring, the recession has now become real for many people. The government has declared that JobKeeper is not coming back, at least, not with that name. However, the federal government has announced that income support for people in lockdown will be equal to the JobKeeper amount, but will be paid directly to workers, rather than via employers.   So basically JobKeeper.   There is also further assistance available via various state government grants in Victoria and New South Wales for businesses that have been impacted by lockdowns, but for inexplicable reasons the Victorian government application process hasn’t even opened yet, even though lockdown is now over. Seems to not make a great deal of sense.   One of the biggest factors again is the cost of rent for premises t ... Read the rest of entry »