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January 2022 Newsletter
3 diverse and could be important items of news
Dear All,
In this newsletter we bring your attention to 3 diverse and important things. If any of them apply to you, please feel free to have a chat with us about it.
SunSuper Insurance Members
If you are a member of SunSuper and have insurance within SunSuper, talk to us. SunSuper, as part of its merger with QSuper, is making a number of changes that could be perfectly fine for you or could cost you a great deal of money, depending on your situation.
For those close to 60 or age 65.
If you or your partner are getting close to age 60 or age 65 and you are earning $50,000 or more a year and you haven’t put $25,000 a year into super for the last few years, then talk to us as the government has changed the law and there are some good opportunities to save tax.
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Government backed scheme to support Small Business access unsecured funding at cheap rates
You may have heard that, as one of the Covid measures, the government is guaranteeing 50% of a particular type of loan as part of the Small and Medium Enterprise Recovery Loan Scheme. We asked the banks at the time the scheme was introduced, whether it is a good idea to apply for these loans but were told that these loans are for people who pay higher interest rates.
Recently we found out that the news is actually better than that.
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Those loans can be used for a wide range of purposes many of us may have never considered and the interest rates are also lower than we thought.
I was alerted to these new facts by Ben Henri from Atmosphere Capital who is a finance broker which means he is a mortgage broker but also does other loans. Ben's contact details are: mobile 0434 474 154, email Ben@atmospherecapital.com.au and below is what Ben recently sent to me:
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From Ben:
“The Banks are offering loans under a Government backed scheme (GGS) used to support Small Business to access unsecured / under secured funding at cheap rates or lower the cost of existing facilities. This is a really good way of supporting businesses, however, is not widely known in the market.
The Government is currently providing a 50% guarantee on these loans and the banks have been encouraged to lend. With this being the case, the banks are far more willing to provide facilities than they normally would be.
All banks are treating this scheme differently and although GGS can be used to refinance existing facilities to reduce the interest rate (given Government Risk) this is generally not being talked about by the banks.
Unsecured money at the major banks in normal state of play is from 7% -12%. With the GGS we have seen rates from 7.48% to 2.99% although most banks have been 4% or below.
Key parameters of GGS:
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Business (borrower) needs to have some impact from Covid (very generous determination, even lower level of sales than anticipated is an acceptable impact)
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Can be Unsecured Facilities (no tangible security required)
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Up to $5M
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Terms up to 10 years
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Acceptable Purposes:
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Refinance
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Investment (non-residential)
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Working Capital
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Taxes and ATO obligations need to be in order (again this has been done as a condition to draw down).
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At Atmosphere Capital, we have worked with several clients and explored options at all the banks having set loans across three of the majors, all rates have been below 4% and facilities have been to assist with working capital needs; buying a business; paying out directors’ loans.
The final round of GGS is now under way with facilities needing to be drawn by 30 June and approved by May this year.
This is a great way to helping clients access more capital or reduce their interest costs. If your clients have unsecured/under secured debt or are looking for more working capital or repay shareholder loans it is well worth exploring the options available.
Certainly the above sounds like something worth considering. If you are interested give either Ben or myself a call.
Amazing to consider we are already at the end of January with another year rolling along. I am sure everyone is having interesting times.
Our whole team is well and loving our work.
We are here and available so please feel free to contact us any time.
Also for our clients it is always good to let us know if your situation has changed and you need a review.
For those who are not currently our clients we are very happy to provide you with a complimentary consultation and review.
We look forward to hearing from you and sharing another year with you.
Christoph, Nicola, Marian, Clare, Deryk, Alvin and Lynne
Christoph Schnelle
Financial Adviser and Life Insurance Specialist
AFP LRS GradDipFinPlan
Life Risk Specialist | SMSF Specialist Advisor
MBiostats | GStat Graduate Statistician
Accredited Aged Care Professional
Accredited Estate Planning Professional
Authorised Representative 308223