This financial burden will be worn by us all, and we must all play our part to carry what we can of it.
The spirit of compassion, community, and patience is something we must all find now, so that we can come to the other side, together, and rebuild.
I feel the following topics are paramount to understanding 'the new norm', as we all race to adapt.
🚨 Breaking news - Job Keeper Payment 🚨
ROUND THREE STIMULUS
The announcement is for a $1,500 per fortnight job-keeper payment, to keep Australians in their jobs when the work dries up. The employers will receive the payment, and be required to pass this on to their employees.
This will be enforced with the new Single Touch Payroll system that is now mandatory for employers.
This is available for full timers, part timers, sole traders and even casuals (if employed over 12 months with the business).
Business must have turnover of less than $1 billion and turnover is reduced by more than 30% relative to the comparable period a year ago.
If you were on the books on March 1 via the mandated Single Touch Payroll System you are eligible even if you have been stood down. The government will backdate payments to today. Casuals are eligible if they worked for 12 months or more. New Zealanders on the 444 visa are included, but other temporary visa holders are still in question with discussions 'under way'.
Many clients are jumping straight on to home loan deferrals on offer of up to six months. Of course at this time, we are 100% on board with this, as an effective way to reduce overheads immediately. We do urge you to please temper these actions with the following thoughts in mind;
- If you wish to refinance or restructure your lending, yet are under deferment arrangements, it is highly unlikely you will be able to refinance. In fact, as a precautionary measure, I would suggest that many clients will not be able to refinance until potentially showing six months of normal conduct if you did enter in to deferment
- If you need deferment, take it, do not wait, this is in by no means a message NOT to apply, it is just we are hearing of some applying ‘just in case’ they are impacted, and we are ensuring we help our clients make transparent decisions for their future. As many choose to refinance to enable equity release for home projects or car upgrades, we want to ensure you do not put those dreams on hold.
- APRA has ruled that deferments will not show on your credit report as arrears, this is fantastic news for our clients, as means they can be safe in the knowledge that no credit damage will be done, please note you HAVE to be approved for deferment of your mortgage, this is not automatic, please contact via these online systems (NOTE – call centres are on hold for hours)
Hardship information for equipment finance / cars please follow this link
🚨 What we are seeing 🚨
First and foremost the feedback from clients is that when lenders reach back out to them (and you will have to wait) the deferments are more being granted relatively easily. This is great news for home owners under duress. Some lenders it's as simple as a phone conversation. So don't put it off thinking it will be difficult, get ahead of your needs now.
In other news, the speed at which business’s, lenders and employees pivot will be critical to our success as a nation, as employers, and as employees. Some great examples of how business are adapting to no contact:
Lenders are adapting to approve video interviews for clients and guarantors so we can keep going
Valuers moving to virtual valuations – this is not out just yet but will be released soon
Banks triggering Kerbside valuations more freely (photos from the front of your street)
Here are some insights into how business’s I know of are adjusting;
- Independent bookshops accepting orders via phone, drive-by collection
- Gyms are now hiring out their equipment & Live streaming classes
- Virtual wine tasting! Local wineries are offering delivered wine tasting packages, and conducting virtual wine tasting classes
- Local markets – our markets are now online, offering delivery, savour the experience of still finding something new, home-made, and original and have it delivered to your door.
For laughs – an Oregan strip club called the Lucky Devil Lounge launched a new food delivery service called Boober Eats! That’s a full redeployment of services!
Hedley & Bennet which make chef aprons started stitching fabric face masks instead.
Swimwear Startup, ‘Summersalt' switched its customer service to emotional support
If you are in services, don’t forget to connect via ZOOM/Facetime or other programs, people deal with people, not business’s.
Public Health Advice is to work from home if you can. As we can, we are!
Wilson Financial feels that social distancing needs to be encouraged and we are easily able to help impact less community transmission by working remotely.
The only way to ensure we achieve the new Aussie dream of flattening the curve and saving lives is to reduce contact.
If we can do something remotely we are and virtually everything we do can be remote..
Whilst many may like to see us face to face, we ask you to Facetime/Zoom/Skype or video conference with us. We promise we will make the process easy for you all the while saving you money.
I was particularly inspired by message from Scomo last night to find bespoke, personalised solutions to managing tenancies and what in many cases is YOUR investment but may also be your tenancy.
NOW is the time to reach out to your landlord if you need help. Now is the time to listen to your tenant if they need help. Come up with arrangements so you have a business or tenant leasing your home/commercial building at the end of this bridge. Come up with arrangement with your landlord so that your business can re-emerge in tact.
We would remind you, that banks are not offering ‘free money’ to people with investment properties by freezing payments, as payments are not frozen, the interest is typically capitalized meaning it is added to the loan every month and the loan increases. As a result, we need not regard landlords as the ‘greedy owners’, many landlords have worked very hard to owner a property which were then leased at market or commercial rates. We also need to remind landlords to find compassion for their tenants, and not be short-sighted about what is happening. To find it in their hearts for those impacted, to find ways to lessen the burden.
We believe there may be more announcements on rent so stay tuned...
Whilst we are helping our frontline industry clients with the immediate effects of Covid-19, it is business as usual for us. We are pleased to report that sales and purchases are occurring, equipment is being bought, and many clients have succeeded in innovating to adjust to low contact
Above all, please call us if we can assist, the office phone lines are being manned by our team just as normal.
1300 780 826 or (02) 4860 3399