Arguments for both sides here.To date the major issue here is...

Arguments for both sides here.

To date the major issue here is that banks and other credit suppliers have not been selling ledgers or dealing with delinquent creditors in any way because of the temporary legislation introduced by Morrison during Covid and the potential for devastating negative PR if they are seen to be bullying.

Not much of FSA's work comes from bankruptcy work in itself and as far as I am concerned, the lifting of the limit from $5k to $10k won't make much of a difference. To bankrupt someone for such a small amount generally is as a consequence of bloody mindedness and not commerciality.
I'm told even the small claims tribunal aren't really interested in getting involved (other than mediation) unless the amount is of this figure or
higher.
Talk to a solicitor about wanting to bankrupt someone for a piddling amount and 90% of the questioning time will be about how big your wallet is and how aggrieved you are to get even or seek revenge because of the 'principle of the matter'. They will conclude with a request for a sizeable deposit to their trust account.

The real threat to FSA's hopes of a recovery rest squarely with how Morrison acts to prevent the obvious slowdown when he starts reducing the JobKeeper/JobSeeker hand outs and we seek to get to something appproaching the new normal. To date he is really talking tough as in he will 'throw the sink at it' and he has financial leverage because of our brilliant no governmental debt when John Howard and Costello left office. Rudd and his cronies trashed that scenario but we are still in a very strong position to lubricate the economy with stimulus.

This will delay the timing on when we must inevitably address the huge, huge personal debt position...highest in the western world...so, it is there....like rust...bubbling away just under the surface. And it will be good for FSA when it commences...but WHEN is the big issue.

In the meantime FSA can continue to generate cash from collections but we will be running down the asset balance as we wait for the surge of the day of reckoning. I reckon there will be no change to the dividend policy and quite possibly the loan book will surprise to the upside.

If I had 5 minutes with Tim Odillo Maher I would be asking him about the possible structural changes occurring because of the BNPL epidemic and the large number of non bank specialist lenders. Good or bad for FSA?