Archive for the General Category

Federal Budget 2019 Paving the way to an election

While last nights’ Federal government Budget is all about playing to the Coalition’s economic strengths and setting up for the forthcoming election, it does confirm that Australia’s finances have finally turned the corner after 12 years of ongoing budget deficits.

Delivered two years earlier than originally expected back in 2017, tax receipts are now being boosted by the resources export boom – resulting from the resources investment boom that went from 2007 through to about 2017 – and has also benefited from continuing higher iron ore, LNG, coal, and other commodity export prices than was originally expected.

The increased financial flexibility as a result of returning to a budget surplus means the government can target tax relief for the lower and middle-class Australian’s impacted by slow wages growth and the rising cost of living (specifically energy bills) earlier than it otherwise might have been able to do – it just has to get re-elected to be pass the budget measures into law! <<Read More>>

Federal Budget 2018 Surge in spending ahead of Election

Last year’s message from Treasurer Scott Morrison was that the Coalition’s government is trying to strike a balance between positive measures to promote economic activity such as increased spending on infrastructure and business incentives, while offsetting this with modest cuts to previously locked in recurrent spending on welfare, universities, and elsewhere.

Last night’s Federal Budget reflects a ‘turning of the corner’ as tax receipts are now being boosted by a slowly accelerating economy, allowing for some well targeted tax relief to the mass of middle-class Australian’s impacted by slow wages growth, while also targeting a budget return to surplus a year earlier than expected (2020). <<Read more>>

BlackRock: Investor Pulse Survey 2013

While we don’t often highlight fund manager generated research, Black Rock Investment Management, one of the worlds largest fund managers, recently completed a global survey of what people the world over were most concerned about when considering their financial futures.

The survey covered 12 developed economies and 17,600 people in total of which 1000 were from Australia. The results from each country were then benchmarked against the collective results to identify what was different or unique to that specific country.

In Australia’s case it seems overall most people are concerned with the state of the Australian economy, followed closely by job security and then rising cost of living pressures – but the ranking of what was most concerning to Australian’s depended (not surprisingly) on the levels of income the respondents earned.

There were a number of other key findings from the Australian research results:

  • Property for both residential and investment purposes is a higher priority for Australians when compared to the rest of the world, possibly reflecting the tax advantages of negative gearing & the tax exempt status of the principal residence;
  • Compared to the global average, Australian’s are slightly more positive about their financial future than their global counterparts;
  • When it comes to taking investment risks the less affluent were less confident & those over 64 years of age were generally the most risk averse;
  • As with Americans, Australians spend roughly 50% of their income servicing mortgages & other debts, paying rent & utilities – which is significantly higher than the global average.

Overall, almost half of the Australian’s surveyed were feeling positive about their financial future. Importantly, feeling positive about finances is much higher for those Australian’s who use a financial adviser (isn’t that good to hear)!

With regard to retirement expectations, the majority of global retirees recommend people start saving for retirement as early as possible. Australian retirees were the most enthusiastic about the need to plan for retirement with 76% encouraging others to start saving as early as possible, 72% encouraging long term thinking, and 76% recommending paying off debt.

The full report makes interesting reading. To read the entire Black Rock Investor Pulse Survey 2013 click on this link

The Future of Financial Advice (FoFA) reforms & what they mean for Banksia Partners clients

The new financial year heralds the formal start of the federal government’s Future of Financial Advice reforms and we at Banksia Partners have given further consideration to what impact these profound changes will bring to the financial advising profession (or ‘industry’ as some would continue to prefer to call it). >>> Read more …

Collapse of the Banksia Financial Group

You may have read in newspapers or heard in the media today of the collapse of the Banksia Financial Group.

Banksia Partners Pty Ltd confirms that it has no relationship with the Banksia Financial Group & never has! >>  Read more…