We won’t talk about Covid-19 and its impact on society’s health. We aren’t doctors.
We will however focus on the potential impacts on the economy, how it could impact you, and what we should be doing to financially survive during this period of hardship.
Simply put, we don’t yet know the impact this will have on the Australian and global economy, and the time frame required for recovery.
To help ease the situation, the RBA has dropped rates by 0.25%, a new record low for Australia!
Stimulus packages are becoming available, so if you’re self-employed, make sure you talk to us as soon as possible for some guidance around what you are entitled to.
Now onto the biggest issue.. the employment status of Australians. We’ve had a very good ride, with close to 5% unemployment (full employment) for the last 5 years or so. We weathered the GFC because of our strong economic conditions, however, now we are faced with this!
It’s likely you will be able to predict the stability of your employment via your industry. Essential services are holding up (obviously), as well as most transport and infrastructure jobs. Building and trades are still going ahead at this stage, and most schools are still open.
However, hospitality has been hit hard with forced closure of all pubs and night clubs, casino’s, cinemas, gyms, places of worship, and cafes/restaurants restricted to take away only. Beauty salons and hair dressers also have restrictions. Many casual workers have lost employment completely for the foreseeable future, without access to any annual or sick leave.
There will be more stimulus packages which will follow on from this, with potential access to your superannuation.
How this will impact the rest of the economy is yet unknown.
It all leads to one issue – CASH FLOW. Like any business, households also run on cash flow. So we need to be extremely mindful of this and make it our number 1 priority for now.
OK, enough doom and gloom. Let’s talk about solutions and opportunities.
Never has it been more important to have the right team around you to provide support in these times. We can’t stress enough the importance of getting in early if you feel you may face some hardship in the near future.
Fortunately, we can help with the following:
- Your Debt situation!
– relief for mortgage repayments
– restructure of your debts
– interest rate discounts
– redraw opportunities
- Questions regarding your superannuation and how that may be affected / potential early access to your superannuation
- A review of your insurances to ensure you are properly covered
- Accounting to assist with tax implications and deferred payments
- Strategies regarding the stimulus packages
As we progress further into this situation we will keep you informed of any information that comes our way.
DON’T BURY YOUR HEAD IN THE SAND… is the biggest lesson we have learnt from times like this.
We are here to support you and your family through this uncertain time.