Michael Fabbro

From the Principal’s Desk – Fabbro Talks

Well, the State election has been run and won by the Labour Party in what has proved to be a massive swing away from the Liberal Party. A one term government is an uncommon thing, and the Liberal Party who have enjoyed virtually no success in South Australian State politics this millennium, other than the 2018 election, are left to lick their wounds and do some soul searching. It would appear the same fate may well await the Liberal Party in the Federal election due before the end of May.

The Federal Budget has just been handed down, with nothing too major to shout about, or necessarily cause one to change their vote for their preferred form of government. The fuel excise relief will be welcome by almost everyone, but especially those in the transport or farming industries.

The world appears to be ‘shuddering’ in an unusual way, with the war in Ukraine, in addition to being a horrifying event for the people of the Ukraine, causing oil prices to soar with fuel prices right behind them. The inflationary pressure in the economy, whilst appearing to be significantly supply side driven, is causing pressure on interest rates, even though interest rates are the lowest we’ve probably ever seen. The residential housing boom continues unabated, a real worry for our children’s ability to get into the housing market. Unemployment is at its lowest in fifty years. To coin a phrase from Star Trek, ‘we are at warp speed’.

I’m really hoping that all of these ‘spinning plates’ do not result in a significant ‘fracturing’ of our economy in a way that causes harm to many; it’s a delicate time.

On other matters, the ATO is awakening from its covid induced slumber and collection activity is apparently the subject of a renewed focus on their part; we have articles on some matters in that space. A concerning new approach by the ATO to the treatment of trust distributions of family members, especially younger family members, who may not in fact enjoy the economic benefit of such distributions is discussed.

I’m hoping for rain for our many rural and agricultural clients and am noticing how dry even my property in the Adelaide Hills is, which gets more than its fair share of rain generally. Another bumper season for our farmers would be great, especially those who perhaps didn’t enjoy above average yields last year. With the price of inputs doubling or more in the last twelve months, they deserve a good season and good prices to reward the risk and effort they put in year after year.

On top of the much higher cost of diesel, they are experiencing massive increases in the cost of chemicals, phosphate and urea fertiliser, on top of supply risk with 80% of our phosphate being imported and over half of this normally coming from China. Urea has almost tripled in twelve months!

So spare a thought for our tough farmers who have to cop these costs and then cross their fingers that it will rain when and in the amounts they require, it won’t get damaged by hail, wind, frost or pest, if it does do the right thing and rain as required they then must hope they can pull the crop in and get it to market and receive prices that make it all worthwhile. Best of luck to them and you all in whatever pursuits engage you for the next month, and stay healthy and safe!

Remember, if there is anything of a legal nature that is concerning you … “we’re here to help”!

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Michael Fabbro

Practice Principal

Ezra Legal

Categories: Blog

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