MANY EXPATS are likely to face “unexpected tax complications” because of the lockdown restrictions, warns the CEO of one of the world’s largest independent financial advisory and services organisations.

The warning from Nigel Green, chief executive and founder of deVere Group, which operates in 100 countries globally, comes as many nations around the world are beginning to ease the measures put in place to reduce the spread of Covid-19.

Mr Green said, “Many expats, and others who live outside their countries of origin, have found themselves stuck in other countries where they don’t normally reside due to the widespread lockdown measures, the closure of national borders, and almost no commercial flights.

“And despite the easing of some restrictions in some places, the current situation might not change for a while yet, especially due to the situation in the aviation and wider travel sector.

“People stranded in different jurisdictions could find that their residency status changes," Mr Green said. "Being stuck somewhere you hadn’t planned to be for an extended period of time could mean that you inadvertently become a tax resident there.  

“This could impact your tax planning strategies which, in turn, could affect other personal finance matters including retirement planning, estate planning and trusts. 

“The potential for unexpected tax complications is high, especially as each jurisdiction has its own individual regimes and regulations when it comes to cross-border tax planning.  Also because it is widely predicted that taxes are expected to rise.

“Those who feel they might be affected should seek expert cross-border financial advice sooner rather than later to mitigate any nasty surprises.”

Despite some reports to the contrary, the deVere Group CEO affirms that it is not just the very wealthy who could be hit by the impact of lockdowns on tax positions.

“There’s potential for a significant number of those who live and work or retire outside their country of origin.

“Typically there will be a series of legitimate solutions to reduce being hit with tax complications.  But to avoid burdensome, complex and costly issues arising, the sooner those who could be impacted seek advice, the better.”

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THE COMMERCIALl construction sector is facing a devastating downturn due to the impact of COVID-19 unless governments act to provide stimulus.

Denita Wawn, CEO of Master Builders Australia said, “Commercial construction activity is forecast to severely decline. Compared to our previous forecasts Master Builders now expects commercial building activity to be 15.7 per cent lower in 2020/21 and 11.5 per cent lower in 2021/22.

“The lockdown has obliterated private sector demand in the economy and a gradual easing of restrictions is not going to replace that demand, so governments need to act.

“The impact on the commercial construction sector (as well as residential construction) is severe because the majority of projects are not publicly funded,” Ms Wawn said.

“There are 459 projects in Master Builders’ reports on the current pipeline of potential commercial building projects in Australia. Most of these projects, 314 (68 percent) are private sector funded projects, 108 (23 percent) are public sector projects and 37 (8 percent) are public private partnerships; 43 percent of all projects cost more than $50 million, 24 percent are under $50 million and the cost of 33 percent of the projects is unknown,” she said.

“Master Builders is calling on National Cabinet to urgently develop a COVID-19 Action plan for the building and construction industry including measures to address the looming devastation to the forward pipeline in commercial construction.

“Logical areas where government stimulus can help build the bridge to recoveryare are where the public sector dominates, such as in education, health and defence.

“Bringing forward maintenance on government buildings is a stimulus measure Master Builders has been calling for and we commend the Department of Defence which has just announced $870 million in estate works which will bolster the confidence of construction contractors and subcontractors,” Ms Wawn said.

Other measures that Master Builders is calling for include:

• An expansion of government construction of education, health and aged care facilities.

• Extending the government guarantee for working capital loans to projects above $50 million could reduce the impact of financial risk from COVID-19 thereby softening the impact on commercial activity.
• Governments taking the lead in funding cladding rectification and asbestos remediation. Buildings requiring rectification were identified in the state and territory cladding audits and projects on government asbestos remediation lists could be fast tracked with government stimulus to prop up commercial activity and provide employment opportunities

www.masterbuilders.com.au

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THE CARAVAN and camping sector can lead the road to recovery for regional tourism with an average spend of $584 per trip according to Tourism Research Australia, and over 500,000 travellers indicating they’d take a camping trip within two months. 

This has the potential to kick-start the recovery for tourism and inject over $292 million dollars directly into the hands of regional tourism operators who rely on caravanners and campers travelling to experience a wide variety of attractions.  

The intention to go caravan and camping is significantly higher than general travel intention, with only 12 percent of the broader Australian population planning to book a holiday in the next three months, indicating that caravan and camping travellers are seven times more likely to take a holiday in the next three months than the rest of Australians.  

With restrictions beginning to ease in parts of the country, this is great news for the many regional communities who rely on this market to support local jobs. With over 711,000 registered RV’s and thousands of free-standing roofed accommodation options, it presents a massive opportunity for towns all around Australia.  

Most caravan and holiday parks have implemented COVID-19 safe guidelines already, catering for permanent residents, essential workers and stranded caravanners. 

This includes contact tracing, social distancing and increased hygiene regimes in common areas and amenities.  Unlike other accommodation they also don’t have shared lifts and lobbies or shared air-conditioning facilities.  

This economic opportunity is reflective of the pent-up demand of those that own caravan and camping product which has been sitting idle for months.

www.caravanindustry.com.au

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THE CARAVAN and camping sector can lead the road to recovery for regional tourism with an average spend of $584 per trip according to Tourism Research Australia, and over 500,000 travellers indicating they’d take a camping trip within two months. 

This has the potential to kick-start the recovery for tourism and inject over $292 million dollars directly into the hands of regional tourism operators who rely on caravanners and campers travelling to experience a wide variety of attractions.  

The intention to go caravan and camping is significantly higher than general travel intention, with only 12 percent of the broader Australian population planning to book a holiday in the next three months, indicating that caravan and camping travellers are seven times more likely to take a holiday in the next three months than the rest of Australians.  

With restrictions beginning to ease in parts of the country, this is great news for the many regional communities who rely on this market to support local jobs. With over 711,000 registered RV’s and thousands of free-standing roofed accommodation options, it presents a massive opportunity for towns all around Australia.  

Most caravan and holiday parks have implemented COVID-19 safe guidelines already, catering for permanent residents, essential workers and stranded caravanners. 

This includes contact tracing, social distancing and increased hygiene regimes in common areas and amenities.  Unlike other accommodation they also don’t have shared lifts and lobbies or shared air-conditioning facilities.  

This economic opportunity is reflective of the pent-up demand of those that own caravan and camping product which has been sitting idle for months.

www.caravanindustry.com.au

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