Editor’s note: After this story was published, the federal government proposed to change the HECS-HELP indexation rate to match whichever is lower out of the Consumer Price Index (CPI) or the Wage Price Index (WPI).

If passed by parliament, the revised indexation rates would be backdated to June 1, 2023, and loan amounts would be reduced automatically by the Australian Taxation Office (ATO).

Under the proposal, the indexation rate for 2024 would be reduced from 4.7 per cent to 4.0 per cent. The indexation rate for 2023 would be reduced from 7.1 per cent to 3.2 per cent.

The release of March inflation data means student HECS-HELP debts are set to rise by 4.7 per cent on the first of June this year. 

It might pale in comparison to last…

London | Britain’s insolvency service has launched a court action to ban fallen Australian financier Lex Greensill from running or controlling any company for 15 years – the toughest possible penalty.

The UK Insolvency Service has been investigating the spectacular collapse three years ago of Mr Greensill’s eponymous supply-chain finance company, after insurers pulled the plug on his high-stakes funding arrangements.

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Parents from 26 West Australian schools have been left without professional photos of their children, that they paid for, after a school photography business went under.

Liquidators were appointed for Academy Photography Australia late on Friday May 10th 2024.

Drive understands 26 WA schools are in the same position, having had school photos taken which have not been delivered. Another 26 WA schools were due to have the company take their photos in coming weeks.

So, what happens now? Will parents see those photos?

Jo Trilling spoke with Trish Blake, the Commissioner of WA Consumer Protection

Bruno Mars owes millions to MGM casino for hefty poker debts, risking long-term partnership: Report

Bruno Mars is renowned for lighting up the stage, but recent reports alleging a staggering $50 million gambling debt at the MGM Grand have fans buzzing for a different reason. In 2016, the singer-songwriter announced a ‘multi-year residency deal’ with MGM Grand in Las Vegas. However, the recent report suggests that the collaboration between Mars and the hospitality brand has soured due to mounting debt.

Bruno Mars reportedly in $50 million debt to MGM Grand

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The federal government has announced it will guarantee all flight bookings for the embattled airline Rex as it continues its regional operations while under voluntary administration.

On Thursday the transport minister, Catherine King, said Rex customers flying on regional routes would now have certainty “they will either fly or get their money back”, with the government agreeing to provide funding to guarantee bookings.

“Rex’s continuation is in the best interests of Australia, and the government is working closely with the administrators to ensure a strong regional aviation presence now and into the future,” King said.

“This will give customers confidence to continue booking regional flights with Rex –flights that allow them…

HECS/HELP no longer operates as it was supposed to. What was intended to be a modest contribution to the cost of higher education repaid once you earned nearly 90% of average earnings is now saddling Australians with large debts that they are repaying when they earn barely more than the minimum wage.

The line is often made that because HECS/HELP loans are indexed to inflation there is no need to worry about the debt because it is “in effect” interest-free.

The reality is that because inflation has risen faster than wages over the past two years many people…

Several of these factors contributed to the rising levels of formal insolvency appointments and distressed asset sales seen over the past year, which is likely to continue into 2024. 

In this article, we look back at, and think forward to, the trends and legal developments which businesses, insolvency professionals, accountants and investors need to be aware of as 2024 gets underway.

Key trends

Formal insolvencies

The general downturn in aspects of the Australian and global economy led to a heightened focus on financial stability and risk management within Australian businesses. Many businesses have encountered significant adverse fluctuations in aged debtor payments, with some debtors delaying payments, making partial…

Jackie Olden can pinpoint the troubling origin of her mum’s gambling addiction. “She was the kind of person who’d go to one shop where milk was a penny cheaper and another where bread was cheaper,” Olden recalls.

“This [gambling] would never have entered her head.”

But in 2008, her mother, Wendy Hughes, 64, took a job at the bookmaker Coral to make ends meet. At the time, digital roulette machines – known as fixed-odds betting terminals (FOBTs) – were a new feature of betting shops, one that was proving extremely lucrative.

Staff were encouraged to play the machines themselves every day, on a free demonstration setting, to stoke punters’ curiosity and drum up more business.

An email from Hughes’s manager at Coral, seen…

The post-pandemic market has been challenging for small and medium-sized enterprises (SMEs) across Australia. While we like to think we are over the pandemic, the truth remains that the lingering effect of COVID-19 is continuing to unsettle the economic landscape, with an alarming rise in reported insolvencies. While the most common reason for business failure remained cashflow issues, almost 20% of all insolvent companies cited the pandemic as a contributing factor. 

Australia is not unique, however, with Financier Worldwide reporting: “Among the challenges have been market pressures in the form of evolving customer behaviour following the coronavirus (COVID-19) pandemic and the impact of competitors’…