News Updates
AS IT HAPPENS
More than 105,000 scams were reported to the Australian Competition and Consumer Commission (ACCC) last year, resulting in losses of more than $84 million. And that's just the tip of the iceberg: many more scams went unreported, often because the victim was too embarrassed to tell authorities about the crime.
To help combat the increasing number of scams, Macquarie Bank have compiled a list of the 12 most common ones they've come across.
With UK voters narrowly voting to leave the EU markets, and Prime Minister David Cameron announcing his resignation, markets are reacting quite negatively to the news, as expected.
As outlined in the email the blog post below, the ‘Leave' vote will create a period of instability over the coming days and weeks, creating a potential buying opportunity in the short term. This may also add to the case for the RBA to cut interest rates, which was likely to happen anyway.
We’ll continue to monitor the situation, but in the meantime, it is important not to get too perturbed by the media frenzy as this is likely to be a storm in a teacup.
Enjoy your weekend (and stay away from the newspapers!).
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
A balanced summary of the pros and cons of a Brexit ahead of tomorrow's vote. Enjoy! Read more here
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
When news breaks and markets move, content-starved media often invite talking heads to muse on the repercussions. Knowing the difference between this speculative opinion and actual facts can help investors keep their nerve.
The past few weeks have been messy with Brexit, the Australian election, terrorist attacks and an attempted coup in Turkey. But rather than dwelling on what's happened so far this year, this article gives us 9 reasons why the future may begin to look a little brighter. A good read!
AMP Capital's Dr Shane Oliver cuts through some of the current pessimism and finds some good, credible reasons to be optimistic. Be aware of the usual seasonal weakness, but don't let it paralyse you with fear... Read more here
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
Looking for a legal tax haven? There's no need to look offshore - how about one you can get in Australia that's taxed internally at 30 per cent, doesn't need to appear on your annual tax return and if you hold it for 10 years you can withdraw it without paying any tax?
Welcome to the not so new alternative to superannuation - insurance bonds.
As the dust settles from the Federal Budget earlier this month, insurance bonds have suddenly been getting a lot of love from advisers and investors, and for good reason. With the Federal Government effectively deciding that the wealthy can look after themselves, superannuation has been reduced from a five star to a four star investment, still incredibly tax effective and worth the effort, just not quite what it used to be, particularly for those with large superannuation balances. Enter insurance bonds.
What is an insurance bond? Just to refresh your memory, they are a tax-paid investment, with the bond fund paying up to 30 per cent tax on your behalf. All money invested in them comes from after-tax dollars, but there is no limit on the amount you can invest and your money is accessible at anytime.
Because the earnings accrue within the fund there is no assessable income to declare on your tax return each year, and if you hold them for 10 years or more all proceeds can be redeemed tax-free. This makes them ideal for people who want to reduce income for purposes such as maximising the family tax payment, or becoming eligible for the Commonwealth Seniors Health Card.
And if the bond is redeemed earlier than 10 years, the proceeds are taxable as normal income, but the holder is entitled to a rebate of 30 per cent, which effectively makes the bonds almost tax-free for most investors at any stage. For example there tax on $10,000 profit will be $3,250 but the rebate will be $3,000, so the holder will have just $200 tax to pay.
They also offer significant capital gains tax advantages. They can be transferred from one investor to another at any time without capital gains tax, and within the bond you can switch between a range of investment options (like Australian and international shares) without triggering capital gains tax whenever you feel it is appropriate.
Insurance bonds also handy for older investors who can no longer contribute to super, and investing for kids and grandkids.
Assuming the latest round of Budget proposals are passed, expect to hear more about insurance bonds in the coming year.
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
With the proposed changes to Age Pension rules (effective 1 January 2017) becoming law, this development now deserves your full attention. Retirees need to consider whether generally tighter eligibility rules will impact on the longevity of their current retirement strategy as a significant 'pay-cut' may be just around the corner. Read more here
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
With the Federal Election now confirmed for July 2 2016, we can all expect a pretty intense battle starting today. But as elections can sometimes destabilise markets and overall sentiment, is this a good or a bad thing for your investments, superannuation or pension fund? In this article, AMPs Shane Oliver takes a look back at previous election cycles with some interesting results. Read more here
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
As usual, the pre-Budget fears and scaremongering turned out to be largely unwarranted. With a significant focus on superannuation, last night's Federal Budget was in many ways a relief to the majority of Australians with superannuation and pensions. In fact, there were a number of positive proposals put forward like the removal not the work test and the reintroduction of tax deductible personal super contributions (up to $25,000). 2016-2017 Federal Budget Summary
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
For the first time in 12 months, the Reserve Bank of Australia (RBA) has announced it cut the cash rate by 25 basis points to 1.75 per cent.
The RBA's decision to cut the official interest rate comes after a surprisingly low inflation figure of 1.3 per cent year-on-year was released last Wednesday.
The ASX futures market has been pricing in a 50/50 chance of a rate cut to 1.75 per cent versus 'no change' since the release of the inflation figures.
With a target inflation rate of between 2-3 per cent, concerns about a lack of growth in the Australian economy spurred by the low Consumer Price Index readings appear to have forced the RBA's hand.
Last week's low inflation numbers had made a May rate cut likely, despite the fact that the federal budget is on the same day.
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
Dimensional's Jim Parker discusses the importance of international diversification within investment portfolios. The article serves as a timely reminder to superannuation members, retirees, and investors to look beyond attempting to pick winners and, instead, focusing on the bigger picture - or "the effect of how all the parts fit together". Worth a read. The Polyphony of Markets
Does your investment portfolio have the right balance?
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
There will be added interest in the Federal Budget announcement next week (May 3rd) as it's likely to be the final major economic statement the Government makes before the election later this year, quite possibly July 2nd. With the opposition taking a strong stance on capital gains tax and negative gearing, we're looking at a focus this year on taxation. Corporate tax could be cut by up to 1.5% however, there is likely to be minimal, if any, relief in terms of personal income tax.
There may also be some changes to superannuation. Some potential changes might be reduced contribution caps, the concessional 15% tax on super contributions, an end to 'Transition to Retirement' pensions and taxes on superannuation pension payments.
Overall, the outlook is for minimal growth in government spending, with spending offset by savings elsewhere in the Budget.
Where sharemarkets are concerned, historically we have seen some sideways tracking in past election years, but there has been no evidence to date of a lasting impact caused by an election. In fact, Australian economic growth has actually been strong during election years since 1980.
We'll be watching the announcements closely next week and will keep our clients informed of any meaningful developments.
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
At the time of writing, the Australian Dollar is sitting on $US0.770, which begs the question - what on earth is driving it? Read more here
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
