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Welcome to 2022. A new year has arrived, and with it, the continued varied picture of winners and losers in the economic landscape. Add the looming federal election into the picture, and it’s clear we will all continue to operate in a rapidly unfolding situation for some time yet.
It’s been a record $78 billion year for the agriculture sector, and according to the Australian Financial Review, farmers are hopeful they will have a third record-breaking result in 2022-23. In other key sectors including tourism, hospitality and construction, our RSM Restructuring and Recovery team predicts it is going to be the year when the full extent of the pandemic-induced, economic fallout will be felt by many.
We are already starting to see signs of distress, with examples including the Hotondo Homes franchise in Hobart going into administration. As reported by ABC News, dozens of current and planned building projects have been left in limbo.
Reach out to your SME clients
Many SMEs may need support and guidance now, almost as much as they did when COVID-19 first hit, and perhaps in some cases - even more. 
We wish you and your clients a prosperous 2022, as we all navigate a third pandemic year and a national federal election.
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
Timing matters: seek advice early
Our RSM Restructuring and Recovery team is often engaged late in the financial distress process, when there tends to be less options left on the table for clients. We are encouraging people to be proactive, to seek advice when there are early signs that a business may be struggling. What are the red flags?
Our new Options Report process includes four key steps:
- Cash flow issues
- Supply chain challenges
- Late repayments to the ATO
- Business partnership disputes
- Government Grants drying up
A Q&A WITH RSM PRINCIPAL, TIM GUMBLETON FCA
To kick-off 2022, the Restructuring and Recovery team interviewed Principal Tim Gumbleton FCA, who has been regionally-based with RSM since 2008. He grew up in a small town of 600 people in the Riverina region of NSW and is currently based in Port Macquarie.
In our 100 year history, RSM has always been committed to regional Australia, and we currently have 32 offices in city and regional locations throughout the country.
Read this brief and insightful Q&A with Tim where he explains why we can expect to see a varied landscape of prosperity and despair for regional business owners, driven by factors including geographical location and business sector.
A MUST WATCH: The sun will come out tomorrow
It was a combination of factors that led to Stephen Pollard, Director and Board Member, needing to call on the services of the RSM Restructuring and Recovery team.
Watch this 3 minute video featuring Greg Dudley, National Head of Restructuring and Recovery at RSM Australia, and past client Stephen.
Case Study: The sun will come out tomorrow
A tale of two cities (and regions)
A new research report by SGS Economics and Planning sheds light on the economic wellbeing of Australia’s cities and regions exposing the challenges that communities faced during the 2020-21 financial year. The report reveals that national economic growth hides the differing experiences across Australia’s cities and regions.
“The gradual economic recovery Australia has experienced in 2020-21 following Australia’s worst economic downturn in decades has not been spread evenly across the country – some cities and regions have rebounded strongly while others have gone backwards.” Dr Marcia Keegan, Senior Associate at SGS said.
“The significant national trends this year have been the buoyant recovery of the agriculture industry, which grew 22% compared to the previous year bolstering many regional areas, and the loss of tourism which impacted almost every economy across the nation.” Dr Keegan said.
