BLOG POST

Financial distress and mental wellbeing

“There is no doubt that being in financial distress is mentally tough, especially if the cause of the financial difficulties stems from very personal life events. It’s not just about the dollars and cents in these cases; it’s about relationships, identity, pride and concerns about what the future looks like for them and the people they love.”

Andrew Bowcher, Partner, based in Wagga Wagga in regional NSW.

CONTINUE READING >>  
 

Restructuring & Recovery Partners share their post-federal election insights and predictions.

“The time is now - SME's will need to readjust to a non-stimulus world. They are also navigating ongoing supply chain issues, tightening of bank refinancing and ATO Tax liability recovery actions - focusing first on Director Penalties.”

Greg Dudley | National Head of Restructuring and Recovery, Perth

“There will be a period of transition following the election result. It’s one less concern for businesses to worry about. The rate of insolvency will continue to rise at a lower rate as the ATO will engage with businesses to see how their debt will be paid. Businesses are still dealing with interest rate concerns, supply and labour shortages.”

Frank Lo Pilato | Managing Partner, Canberra

“I expect we will just see a ‘business as usual policy’ from the Government and the ATO for the next 12 months and there won’t be any policy changes that will significantly impact the rising trajectory of the costs of living or interest rates. I also expect the ATO will continue the ramp up of recovery actions against delinquent taxpayers, however the banking sector will remain low-key in their recovery processes with a preference to working matters out directly with delinquent clients.”

Mitch Herrett | Partner, Brisbane

“The new government will quickly have to face significant budget pressures. The $50B+ that is owed to the ATO is an obvious means to help balance the books. It remains to be seen, the vigor that will be applied to recovery actions, however there will certainly be an impact on SME businesses that have been allowed to fall into arrears over the past two years.”

Richard Stone | Partner, Sydney

“SMEs will face rising costs and interest rate rises that will erode profit. The Federal Government will also need to manage and reduce the national deficit. Ways to do this include tax increases and the ATO taking a more active approach to debt collection policy and process.”

Andrew Bowcher | Partner, Wagga Wagga

CASE STUDY: IPROSPERITY GROUP

Luxury waterview properties, $3,000 bottles of wine, a collection of sports cars, and casino high-rolling Michael Gu, appeared to have it all until his iProsperity Group collapsed in 2020, and his whereabouts became unknown.

Find out more about RSM Restructuring and Recovery team’s role in this high-profile insolvency case.