NEW Australian Bureau of Statistics (ABS) lending figures for July show that HomeBuilder has started to drive a recovery in loans for  home building.

“The 9 percent jump in the number of owner occupier loans for the building of new homes in the month is encouraging and shows the highly effective impact of HomeBuilding in activating demand,” Master Builders Australia CEO Denita Wawn said.

“However, the outlook for the industry and the economy is extremly grim and HomeBuilder should be extended for 12 months in the Federal Budget to help maintain a pipeline of work and be a lifeline for buiders and tradies.

“Lending for residential land purchase jumped by 31.5 percent over the month. There was also an increase (+4.0%) in the number of loans provided for the purchase of new dwellings by owner occupiers during July,” Ms Wawn said.

“The home renovations market also appears to be responding well to the roll out of HomeBuilder across the country. During July, the number of loans to owner occupiers for home alterations/additions experienced a 6.3 percent uplift compared with the previous month,” she said.

“Our latest forecasts estimate that HomeBuilder is likely to boost new home building commencements by almost 10,000 during 2020-21 but the sector still faces a forecast of 27 percent decline.

“The heavy interlinkage between construction and the wider Australia economy means that the economic benefits across a range of sectors will be even greater than a boost to residentil building activity.

“While the purchase of established homes are obviously not eligible for HomeBuilder, lending in this part of the loan market still jumped substantially during July. This is another encouraging sign, showing that HomeBuilder is starting to help strengthen sentiment even in those areas which is does not directly target,” Ms Wawn said.

www.masterbuilders.com.au

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AUSTRALA’s pesticides regulator, the Tasmanian and NSW Governments, bodies representing animal management and animal welfare along with environmental researchers, will appear at Wednesday’s fourth public hearing for the House of Representatives Standing Committee on the Environment and Energy’s inquiry into the problem of feral and domestic cats in Australia. 

Committee Chair Ted O’Brien MP said Wednesday’s public hearing “is an opportunity for the Committee to learn more about the complexities of managing feral and domestic cats effectively to reduce impacts on native wildlife and habitats".

A full program for the Committee’s hearing on Wednesday is available on the Committee’s website here.

Public hearing details

Date: Wednesday 9 September 2020
Time: 10am to 5pm
Location: Via teleconference

For the information of those wishing to listen to the public hearings, proceedings will be available on the Parliament’s website at: https://www.aph.gov.au/News_and_Events/Watch_Parliament.

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CBUS SUPER, Australia’s lead building and construction industry super fund, has revealed it has committed over $950 million to Australian businesses through equity raising, debt finance and project financing since March 2020 to support Australia’s economic recovery.

An extra allocation to the Cbus debt portfolio means Cbus now has a further $850m in additional capital to invest in companies and project finance.

Cbus has committed over $240m in general corporate debt to Australian businesses and made serious moves into construction project financing by committing $260m of debt funding for construction projects across Sydney and Melbourne including:

• In Melbourne, funding of $160m for the development of over 390 new apartments and associated retail and commercial facilities over two locations in South Melbourne and the inner North East;
• About $100m in a NSW based construction facility for a residential project close to the Sydney CBD.

Cbus has also injected over $450 million into Australian companies that were raising capital. This was done through a combination of its internally managed equity portfolios and externally managed mandates.

Cbus chief investment officer Kristian Fok said Cbus would continue to invest to support jobs and Australia’s critical infrastructure.

“As a long-term investor, Cbus is well placed to assist companies with the capital they need to keep operating and keep employing,” Mr Fok said.

“As the economic landscape has changed so rapidly this year, companies have had capital issues. This has provided an opening for Cbus to be a capital partner for companies that play an important role in the Australian economy while building better retirement outcomes for our members.

“On the debt side, we are proud to have been able to step up and support shovel ready projects—particularly in Victoria during this difficult time.”

Cbus Super CEO Justin Arter said the fund was determined to assist businesses, deliver strong investment outcomes and back projects that spur employment.

“What you saw in Australia through the Global Financial Crisis (GFC) was the industry fund sector stepping up to the plate to provide business with capital,” Mr Arter said.

“Cbus is now a larger investor with significant investment talent and capability. This has allowed the fund to back a wider array of companies and projects.

“The value of superannuation as a national capital pool should not be understated. It is the envy of the world for good reason.”

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THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has welcomed the Federal Government’s extension of temporary insolvency and bankruptcy protections, to support struggling small businesses impacted by the COVID crisis.

Regulations reducing the threat of creditors taking action against a small businesses impacted by trading restrictions have now been extended to December 31, 2020.

The changes also extend the temporary relief for directors from any personal liability for trading while insolvent.

“These necessary measures give otherwise viable small businesses more time to recover, preventing a wave of unnecessary insolvencies,” Ms Carnell said.

“While we support this temporary relief for financially distressed businesses, there will also be a number of zombie businesses kept artificially afloat as a consequence.

“ASIC data shows insolvencies are tracking at close to 50 percent below 2019 levels, which goes to show the extent to which government stimulus and protection measures are keeping businesses on life support, including businesses that have not been viable for some time.   

“Deloitte Access Economics modelling estimates about 240,000 small businesses are at risk of failure, highlighting the critical need for small businesses to sit down with their trusted financial adviser for a viability assessment.

“My office continues to recommend the establishment of a small business viability voucher program, where small business owners facing financial stress can obtain a voucher valued up to $5,000 to access tailored advice on the state of their business," Ms Carnell said.

“The voucher would ensure small businesses have access to the expertise they need to judge business viability.

“Unfortunately small businesses with cash flow issues, compounded by falling revenue, may not seek out professional advice because it’s deemed to be unaffordable. This could prove to be devastating for the business owner and their family, down the line.

“We know the sooner a small business owner experiencing financial stress seeks assistance from an accredited professional, the better the outcome.”

www.asbfeo.gov.au

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