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Final demands for Senator Bob Day
Topic Started: 17 Oct 2016, 08:28 PM (1,898 Views)
Rufus
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Final demands for debts of more than $100,000 have been lodged against Senator Bob Day’s building company Homestead Homes
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FINAL demands for debts of more than $100,000 have been lodged against Senator Bob Day’s building company, Homestead Homes.
Sources have also told The Advertiser that construction has halted work on some homes being built by the company, of which Senator Day is the sole director.

Mr Day’s media spokesman on Friday did not respond to questions on the debt and construction issues put forward by The Advertiser, saying only that “Senator Day is sorry but he cannot possibly provide comment so close to your deadline’’.

One customer who contacted The Advertiser received an email which said the company “currently have a backlog of trade and supplier difficulties and once the problem has been resolved advice will be provided when work will recommence”.

On Wednesday, a report which details debts under final demand in South Australia reported a $95,817 claim against Homestead. A claim for $6085 was lodged in September.

Having a debt under final demand does not necessarily signify financial problems within a business, as debts can be, and regularly are, disputed — for example for work not carried out to the satisfaction of the debtor.

Mr Day’s Home Australia group has been under fire this week, with reports of angry customers in Melbourne and Sydney complaining about long delays in construction.

The most recent annual report filed by Senator Day’s company Home Australia, which owns Homestead, showed it turned over $102 million in both the 2013 and 2014 financial years, and made a $1.2 million loss and a $3.03 million loss in those years respectively.

Homestead Homes’s website says the company was founded by Senator Day and John Smith in 1983.

“Homestead Homes built its first home in 1979 and in 1983 built its first display home.
“By 1989 Homestead Homes was the State’s largest home builder with sales approaching 1000 new homes per year and a turnover in excess of $50 million per annum.

“The company has been a consistent winner in the Homes of the Year Awards and has been acclaimed as the market leader in the homebuilding industry in South Australia.’’

Labor Senator Alex Gallacher questioned this week whether Senator Day had missed a number of sitting days since the Federal election due to concerns about the building business.

Senator Day has repeatedly been granted a leave of absence for “personal reasons” and has only been in Parliament for three of the 11 sitting days.
“The Senate has given me leave to be absent for personal reasons,’’ Senator Day said in a statement earlier this week.

“Almost every sitting day, senators are excused for personal reasons. Nobody asks them to divulge the personal reasons for their absence.”
Senator Day scraped back into Parliament at the election, winning the 12th of South Australia’s 12 Senate seats.

Housing Industry Association executive Director for SA Brenton Gardener said he was not aware of any complaints raised with his organisation about Homestead.
Take risks - if you win you will become wealthy, if you lose you will become wise
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hidflect
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Embarrassing...
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herbie
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"The Home Australia group has gone into liquidation and construction on 207 properties around the country has been put on hold.
The company operates under different brand names in five states, trading as Homestead Homes in South Australia, Huxley Homes in New South Wales, and Ashford Homes in Victoria."

"Senator Day emailed Home Australia staff members this morning to inform them the company was being liquidated."

http://www.abc.net.au/news/2016-10-17/families-facing-uncertain-future-amid-home-australia-collapse/7939842 (And they are Newstart Homes in QLD to the best of my knowledge)


"FAMILY First senator Bob Day has announced he will resign from Federal Parliament following the collapse of his building company, Home Australia."

"In a statement, Senator Day said he would lose his family home as a result of the liquidation of the building empire, with McGrathNicol appointed liquidator."

http://www.adelaidenow.com.au/news/south-australia/senator-bob-day-resigns-from-parliament-after-collapse-of-his-home-australia-business/news-story/653015de0641b80e35afafc7ffb138dd (He's not allowed to be a Senator if he's bankrupt apparently?)
Edited by herbie, 17 Oct 2016, 09:02 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Ex BP Golly
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But will he keep his pension?
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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zaph
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Ex BP Golly
18 Oct 2016, 12:47 AM
But will he keep his pension?
What pension? Is that mythical million dollars a year pension for life after serving 4 minutes as a senator?

Edited by zaph, 18 Oct 2016, 01:02 AM.
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Foxy
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Zero is coming...

very sad for all involved...

I truly hope this is sorted out.

Good luck.

Peter

When new money comes into a business, as new business, and that money is to service costs at the time, for old business, then any slip up in costings can totally destroy a business.

And the deeper you get in and the further down the road you go the harder it is to stop.

We take money up to 3 months in advance for accommodation.

After three years we are just getting ahead to the point where the money that we have received sits in the bank until the people arrive.

Up until now every cent has gone back into the property to improve it.

So it sits in a separate account now until the people arrive.

It is now available to pay wages buy stock and meet fixed charges.

As and when they come due.

The temptation with any business is to use future income to meet today's needs.

If this starts to happen then alarm bells should be going off.

And early.

The issue Mr. Day may have is the matter of trading while insolvent???

I wish him well.

Seems like a decent guy that took his eye off the ball.











Edited by Foxy, 18 Oct 2016, 01:43 AM.
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herbie
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zaph
18 Oct 2016, 01:01 AM
What pension? Is that mythical million dollars a year pension for life after serving 4 minutes as a senator?
Yep, he was only there for 2 'n a bit years.

Definitely WAY more a businessman than a long term 'professional' pollie as such.

Anyway, info on their super scheme is given here:

http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BN/1011/SuperannuationBenefits#_Toc274224145

Maybe he whacked a bunch into his private super over his years in business? But maybe not 'n he poured it back into tha business?

The bit about him losing tha family home did seem strange to me tho - Given I'd have thought his use of companies would protect it? But maybe he put it up as collateral independently and voluntarily (or some such?) genuinely believing the business would come good?

But anyway, if he's got any damn brains at all he'll have at least stashed a bit of wotever away in tha name of tha missus and/or kids over all those years one would hope.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Rufus
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herbie
18 Oct 2016, 01:42 AM
Maybe he whacked a bunch into his private super over his years in business? But maybe not 'n he poured it back into tha business?

The bit about him losing tha family home did seem strange to me tho - Given I'd have thought his use of companies would protect it? But maybe he put it up as collateral independently and voluntarily (or some such?) genuinely believing the business would come good?

But anyway, if he's got any damn brains at all he'll have at least stashed a bit of wotever away in tha name of tha missus and/or kids over all those years one would hope.
It's much harder to salt money away into a protected asset these days. Even the old tactic of having the house in the wife's name doesn't absolutely quarantine that asset. Forensic accountants check every single transaction going back years and they are masters at piecing complex arrangements together.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Foxy
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Zero is coming...

herbie
18 Oct 2016, 01:42 AM
Yep, he was only there for 2 'n a bit years.

Definitely WAY more a businessman than a long term 'professional' pollie as such.

Anyway, info on their super scheme is given here:

http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BN/1011/SuperannuationBenefits#_Toc274224145

Maybe he whacked a bunch into his private super over his years in business? But maybe not 'n he poured it back into tha business?

The bit about him losing tha family home did seem strange to me tho - Given I'd have thought his use of companies would protect it? But maybe he put it up as collateral independently and voluntarily (or some such?) genuinely believing the business would come good?

But anyway, if he's got any damn brains at all he'll have at least stashed a bit of wotever away in tha name of tha missus and/or kids over all those years one would hope.
Good people do not think like that.

He probably never for a moment thought he would have financial trouble.

Pity to lose a good man from the senate.

Rufus
18 Oct 2016, 07:52 AM
It's much harder to salt money away into a protected asset these days. Even the old tactic of having the house in the wife's name doesn't absolutely quarantine that asset. Forensic accountants check every single transaction going back years and they are masters at piecing complex arrangements together.
The easiest way is to buy a kilo of gold when ever you have spare cash.

I do not do that but some people do.

Peter

I like Mr. Day reinvest into the business.

The issue i keep saying worries me is that i feel a great number of businesses will "zero" out over the next year or two.

That means if the people owning them have not taken something out over time the business will start to reach a "zero point" and bleed them out.

Depression basicly.

This generation has not seen one, so buckle up.





Edited by Foxy, 18 Oct 2016, 09:28 AM.
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herbie
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foxbat
18 Oct 2016, 09:23 AM
Good people do not think like that.

He probably never for a moment thought he would have financial trouble.
Not like I'm suggesting stripping assets from a business one can obviously see is failing Musty.

Just suggesting that if he'd whacked a bit in tha missus 'n kids names over tha years 'just in case' I'd not blame him - For showing a bit of caution; As opposed ta throwing it ALL back into tha business.

Tho as ya say, if he was a true believer (with a run of 35 odd good years behind him where he'd even weathered tha last recession - Wif that being pretty good going for a builder I'd say) he may well have just bin chucking it all back into tha business.
Rufus
18 Oct 2016, 07:52 AM
It's much harder to salt money away into a protected asset these days. Even the old tactic of having the house in the wife's name doesn't absolutely quarantine that asset. Forensic accountants check every single transaction going back years and they are masters at piecing complex arrangements together.
I'm surprised - Wif my understanding being that was one of the reasons for using a company - Namely to quarantine assets in ones own name in the event of a business failure. (But anyway, if things have changed then so be it.)

PS: Do you happen to know the deal wif super these days - Wif my understanding being that it used to be quarantined also.
Edited by herbie, 18 Oct 2016, 11:46 AM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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