After noticing a gap in the medical finance sector, Mr Boon’s credit service has gone from strength to strength.
3 min
What are Total Lifestyle Credit’s (TLC) goals for the consumer?
TLC’s goal for the consumer is to provide a quick and easy financial platform that allows them to break their upfront payment into smaller more manageable payments over a longer period.
This allows them to have their product or service now, rather than having to wait months or years by giving them an array of options and opportunities to choose a payment plan that suits their specific needs and personal goals.
Having a broader funding option also gives TLC a greater opportunity for the client to get the right approval result.
What makes it different from other finance providers?
With a range of underwriters, we are able to provide the best financial product for the client based on their personal situation. This is alongside real people who listen and talk to the client through the process at each step of the way. Making their otherwise uncomfortable transaction very comfortable and hassle-free.
Additionally, TLC has over 1800 professional partners on board, this gives clients the opportunity to get that extra reassurance and expert opinion before they make what can be seen as a life-altering decision.
A big invoice can be daunting for clients and can often be a deal-breaker. When funding is easily accessible and affordable it is a “win-win” for both business and client.
How did you build the business in its early years?
I am hugely passionate about the medical sector and noticed a lack of funding options available to the public, in 2004 I started MacCredit a patient funding platform and grew it to the largest medical loan business in Australia, successfully selling to a Private Equity firm in 2016.
It definitely was a very hard sell to the medical and cosmetic sector, however after 24 months a lot of businesses saw the service and integrity I was delivering. I started Total Lifestyle Credit (TLC) in 2019 my new consumer lending platform that commenced in 2019.
What’s the reasoning for the pillars of medical, dental, lifestyle and wedding?
At TLC we hold the utmost importance at looking after our clients in relation to their specific needs. For example a client who is looking at a financial payment plan for a wedding will have a very different needs compared to an individual who is seeking finance for a medical procedure that their child needs. This allows us to personalise our interactions with the client based on the service they seek. TLC aspires to help every individual that we can, if there is a client that is in need of funds for a dental procedure and their friend needs funds for a holiday, we are happy to say that we can help both of those individuals, with the same level of service and enthusiasm.
Roughly what percentage of the business does each pillar represent?
Medical – 60%
Broker – 10%
Lifestyle – 20%
Wedding – 10%
You’ve alluded to the fact that TLC goes beyond cosmetic procedures including IVF programs, eye surgery and more — you note a shift away from private health insurance. Why?
The reason individuals are shifting away from private health insurance is that they do not see the value in it anymore. Young individuals are less likely to choose to continue their private health insurance after their family coverage no longer applies to them. TLC offers the opportunity to receive funds almost instantly, rather than having to wait until the benefits of private health insurance kick in. We fund all treatment costs for all medical/cosmetic fees and with little to no early payout fees so the patient can control their repayment timeline.
Australian citizens are spending about $1 billion on cosmetic procedures every year — per capita, around 40% more than Americans do – why do you think it’s so high in Australia?
There is less of a stigma in Australia when it comes to having cosmetic procedures. Social media marketing in reference to cosmetic procedures are increasingly common, creating an inviting space for individuals to be able to seek professional advice on their personalised goal.
How has the market been affected by COVID (if at all)?
Covid has affected the industry quite significantly. Clients have had to opt to have their procedures within Australia instead of the choice of overseas treatment. It has also provided the time and space for patients to focus on themselves. This has increased the demand for TLC during Covid and people are able to have their procedures with minimum downtime from work.
What do you think the future of cosmetic procedures going forward?
TLC is excited to see the growth of the cosmetic world as we see great potential. Already in the past years, TLC has been operating we have seen a reduction of Brazilian butt lift procedures coming through and an influx of breast augmentation. Cosmetic procedures are evidently becoming more popular and desirable to individuals, with an array of talented surgeons coming on board. This ensures us to believe that the cosmetic industry only has one way to go and that’s up!
Millions of workers will see the impact of Stage 3 tax cuts in their next pay packet
2 min
Stage 3 tax cuts will commence on Monday, providing 13.6 million workers with tax savings that they will see in their first pay packets of FY25. The average Australian wage earner on $74,500 per year will receive a $1,540 tax saving over the new financial year. The Superannuation Guarantee is also going up from 11 percent to 11.5 percent from Monday, providing the same worker with a $372 bump per annum to the superannuation payments they receive from their employer.
The Albanese Government amended the Stage 3 tax cuts in January to give every taxpayer a tax cut rather than only those on higher incomes. Many economists have argued the tax cuts will add to inflation, which is proving to be remarkably sticky. Yesterday, the Australian Bureau of Statistics released the May inflation figures showing a 4 percent annual increase in inflation, up from 3.6 percent in April.
The Federal Government decided to amend the legislated tax cuts in January to help more Australians with rising cost of living pressures. Official advice from the Federal Treasury said the amendments were “broadly revenue neutral” because they would cost almost the same amount as the original Stage 3 plan, which had already been factored into inflation forecasts. The amendments reduced the tax break for earners at the top end to enable tax relief for everyone. A Treasury document said the changes “will not add to inflationary pressures and will support labour supply”.
The tables below outline how the tax rates and tax brackets will change from Monday.
At a press conference after the Reserve Bank announced interest rates would remain on hold last week, Governor Michele Bullock said she expects some people would use their tax cuts to cover everyday expenses while others would save it.
“What we do observe in the data is that people who have mortgages – on average, not all – but people on average who have mortgages tend to try and put more into their offset accounts and their redraw facilities because they’re paying quite a high interest rate now on their mortgage and so they want to offset it,” she said.
A Westpac survey found Australians planned to save up to 80 cents for every $1 of tax savings.
“The results suggest consumers will use tax relief as an opportunity to repair their finances and rebuild saving buffers rather than spend,” said senior Westpac economist Matthew Hassan.
If taxpayers followed through on this plan, Mr Hassan said only $4.7 billion of the $23.3 billion in tax relief would be spent, equating to a spending boost of 35 basis points.
