Spotlight on Staff: Chris Sequeira, Podcast Legend

Wexted Melbourne Partner Chris Sequeira featured on 'Accountant’s Daily' latest episode of ‘Under the Hood’. Australian businesses are being challenged in the current market and Chris shares his perspective on what can be expected, the changing nature and preference for different types of formal insolvency appointments, current challenges across key sectors, the ATO’s debt collection activities, and key warning indicators to help identify financial distress (insolvency).

Topics covered:

Current challenges across key sectors such as Hospitality, Retail, Construction, Health Services, and Not For Profits
Evolving corporate and personal insolvency trends, and the changing nature and preference for different types of formal insolvency appointments
The ATO’s increasing debt owed by businesses, its debt collection enforcement activity, including the increasing use of garnishee notices and reporting outstanding tax debt to Credit Reporting Bureaus, and Director Penalty Notices (personal liability for directors)
Safe Harbour provisions, and protection from insolvent trading
The rise in Small Business Restructuring Appointments
Key Financial, Operational, and Behavioural warning indicators of financial distress / insolvency for companies, partnerships, and associations

Listen to the episode below

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Snapshot

A significant increase in in both corporate and personal insolvency appointments. FY24 saw approximately 11,000 corporate insolvency appointments, an increase of approximately 40%
The increasing incidence of Small Business Restructuring appointments which in the first six months of the current financial year, represented nearly 1/5th of all appointments.
The ATO’s activity in relation to debt collection, attempting to recover over $50bn in collectable debt, of which $35bn relates to small business.
ASIC statistics identify sectors experiencing an increased incidence of insolvencies: Construction, Hospitality and food service, Retail.
Healthcare, social services, and the Not-For-Profit sectors are expected to experience an increase in financial distress.
Some helpful tips in identifying financial distress and insolvency (from the Waterwheel Case)

At Wexted Advisors, our talented people utilise their unique skillsets to help bring order to chaos in a financially distressed organisation, to help assist all key stakeholders (financiers, employees, trade suppliers, and customers) impacted by an insolvency event.

Chris Sequeira

| Wexted

| Partner

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