INTHEBLACK August 2022 - Magazine - Page 33
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CONSTRUCTION
SECTOR
COLLAPSE?
CPA Australia’s public practice and small
and medium enterprises manager, Kristen
Beadle CPA, discusses the challenges facing
the construction sector, the skyrocketing rate
of insolvencies and what this means for the
industry’s future.
A GRIM PICTURE
SUPERANNUATION CHANGES
“Every generation, there are these issues in
the economy, because it’s cyclical. But I think
we’re looking probably now at a once-acentury type issue here.”
Richard Webb, CPA Australia’s financial planning and superannuation policy adviser,
explores the recent superannuation overhaul, how it affects small businesses, employers
and employees, and more.
DOMINO EFFECT
“The superannuation guarantee is being
progressively increased to 12 per cent. And
this year and last year as you observed, the
increase has been progressively going up
in half per cent increments. So, there are a
few things that I think practitioners and their
clients will need to actually look at.
Small business clients probably should
be alerted to the superannuation guarantee
rate changes. It is worth reminding business
clients that some contractors are entitled to
superannuation guarantee contributions from
their employer, even if they have an ABN as
our temporary residents.”
“We’ve heard that there are wood shortages,
for example, so timber shortages. But we’re
looking at things like 30 per cent of the
wood used for pallets coming from Ukraine,
and that’s what you transport bricks on for
example, and all the goods that you put into
a kitchen, bathroom and that sort of stuff.
“We’ve got a national shortage of truck
drivers and forklift drivers at the moment in
Australia. Goods that are taking eight days to
ship are now taking six weeks, and shipping
container prices have increased by 500 per
cent to 600 per cent. So it takes that long
and it’s that much to get it to a construction
site, and then you’ve got no one to put it
together and make it into a home.”
I N S O LV E N C Y A C T I O N
“If after speaking to your CPA, there is no
viability in the business and you should
be looking at some kind of insolvency
administration, it’s then key to speak to a
registered liquidator or bankruptcy trustee,
because they’re the only ones qualified to
assist you through that process and give
you the correct advice.”
L I S T E N T O T H E F U L L P O D C AS T
S UPER G UAR ANTEE TO 12 PER C ENT
L O W- I N C O M E B E N E F I T S
“Another group of employees who might
do quite well out of the 1 July changes to
superannuation are workers on lower incomes.
And that’s because the minimum threshold
for superannuation payments, which was set
at A$450 a month, is going to go, meaning
that super will be paid on every dollar an
employee earns.”
DOWNSIZER CONTRIBUTION
A G E D E C R E AS E
“The whole idea of the downsizer scheme
was to allow Australians who were looking
to increase their superannuation to do so
through the sale of their house. And they
could do that up to a total of A$300,000.
At the moment, that would be for people who
are 65 years of age. But, of course, from 1 July
this year, that is going to come down to
60 year olds.”
HOW DOES DOWNSIZING LINK
TO HOUSING AFFORDABILITY?
“Prices of houses, like most things, are
the product of both supply and demand
factors. So what the downsizer contribution
does...is to provide an incentive to release
more housing stock onto the market. And,
hopefully, this should reduce pressure on
housing affordability to some extent.”
P R E PA R AT I O N I S K E Y
“Businesses in particular should consider
seeing their accountant in the first instance
just to get all the technical information
about what it is that they can do to comply
with the changes. For employees, though,
and retirees, we would suggest that your
financial adviser is probably the best person
to go to for queries about superannuation
and any contributions associated with that
as well.”
L I S T E N T O T H E F U L L P O D C AS T
intheblack.cpaaustralia.com.au August 2022 33