The partnership between RBS and the Wyatt Trust has had a significant impact on rural and small business families across South Australia.
Since July 2022, 193 Capacity Building Grants, totalling $239,500, have been distributed to families experiencing financial hardship. Delivered as part of a holistic support approach, these grants provide practical assistance while enabling recipients to engage more deeply with financial counselling services and work toward longer-term stability.
Peter operated a rural service industry motel that faced severe financial challenges due to the COVID pandemic and the subsequent Murray River flood. The cumulative impact of these events ultimately led to the closure of the business.
To supplement his income, Peter purchased a second-hand ute with the intention of undertaking part-time delivery work. Unfortunately, the vehicle required immediate mechanical repairs, which he could not afford. At the same time, he was embroiled in a dispute with a utilities provider over an $8,000 electricity bill from the business and struggled to adhere to the payment plan while managing daily living expenses.
Peter believed the utilities provider had overcharged for electricity supplied to the motel property. Despite attempts to negotiate, no progress was made, and he felt bullied by the provider’s credit department through persistent follow-up letters and phone calls. The fear of legal action had a significant impact on his wellbeing.
Like many businesses, Peter’s motel experienced a substantial downturn due to COVID. He struggled to adapt to the changing economic landscape, attributing the poor cash flow to external factors. Recovery was particularly difficult given the financial strain caused by both the pandemic and the flood.
Peter initially contacted RBS for financial counselling support to address the utilities dispute. He sought to understand the reasons behind the high electricity bill and negotiate a manageable repayment arrangement. At the time, Peter believed he could revive the motel’s performance and stabilise cash flow to sustainable levels.
Understanding the issue with the utilities provider was complicated by unclear billing and correspondence. The credit department pursued aggressive collection tactics despite the client’s file being transferred to the financial hardship division. Peter was also facing mounting debts, including unpaid rent and potential ATO liabilities due to outstanding tax returns. Developing a business strategy to attract more clients posed an additional challenge.
Peter’s Business Financial Counsellor (BFC) assisted him in engaging with the provider’s financial hardship division to address the billing dispute. Despite initial resistance from the credit department, advice and support from the SA Small Business Ombudsman proved crucial. As part of this process, the BFC facilitated detailed discussions about Peter’s financial position, which helped create realistic budgets. An affordable repayment offer was developed for the utilities provider based on these budgets.
To address outstanding tax returns and potential ATO debts, Peter was referred to the UniSA Tax Clinic. This step was essential in understanding the full scope of his financial obligations.
In addition, a Wyatt Trust Capacity Grant was utilised to contribute toward the utilities bill, preventing power disconnection and providing time to explore further options. A second grant enabled Peter to address the mechanical repairs for his ute, supporting his ability to generate cash flow for everyday needs.
Through these interventions, Peter experienced relief and renewed support, enabling him to take positive steps toward resolving his financial issues. The collaborative efforts between Peter, his BFC and relevant agencies highlighted the importance of advocacy and strategic planning in navigating financial hardship.
Peter acknowledged that RBS’s support greatly benefited both his personal and financial wellbeing. This case underscores the critical need for clear communication in disputes, the value of practical cash-flow budgeting, and the role of external support in mitigating financial crises. Through perseverance and strategic support, Peter was able to navigate a path forward despite significant challenges.
