[VIDEO] Ryan Synnot provides an introduction to Early Stage Tax Concessions, an incentive introduced in 2016 to promote investment in innovative, high-growth potential startups.

In welcome news, the Federal Parliament passed the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021. Effective from 1 July 2022, this legislation will implement the following superannuation changes:

Back in June 2019, the Reserve Bank (RBA) Board meeting minutes stated that “households are net borrowers in aggregate”, which contributed to their view that on balance “a lower level of interest rates was likely to support growth in employment and incomes and promote stronger overall economic conditions.” I subsequently wrote to the RBA and sought clarification, given that households are not net borrowers in aggregate. Their response advised that the comment was in reference to interest bearing net borrowings, rather than total net borrowings. Perhaps this was the intention of the authors, however the lack of this qualification in the minutes makes the statement incorrect – households are in fact large net savers in aggregate.

Since 1 July 2018, downsizer contributions have afforded eligible older Australians the opportunity to top up their retirement savings where their existing balance leaves them concerned about the sustainability of their lifestyle through retirement. It had been observed that older Australians were potentially being discouraged from downsizing hones that no longer met their needs, the result being that many larger family homes were being occupied by singles or couples.

[VIDEO] Private Client Adviser Mathew Ashton introduces ASIC’s new Director Identification Number system, its purpose, and the steps to apply for your own.

Elder abuse has been defined by the World Health Organisation as 'a single, or repeated act, or lack of appropriate action, occurring within any relationship where there is an expectation of trust which causes harm or distress to an older person'.

[VIDEO] Private Client Adviser Mathew Ashton outlines the upcoming indexation change to superannuation Transfer Balance Caps.

A cursory glance at major asset class investment returns for the year 2020 as a whole may reveal little that was exceptional. Many “balanced” investment strategies produced rates of return quite close to longer terms averages and expectations. The fixed interest asset class generated just under 5% for the year, with a basket of local and global equities producing a similar result (subject to currency hedging levels).

Until recently, once you reached age 65, you could no longer contribute to superannuation unless you satisfied the “work test” (with a few exceptions).

In 2019, the Federal Government relaxed the rules applying to the Pension Loan Scheme (PLS). The PLS is a Government provided reverse mortgage scheme administered by Centrelink. It can provide a fortnightly, tax-free income stream using your equity in your home or other property.

Director and Private Client Adviser, Judy Schmidt, shares a brief overview and review of four areas relating to superannuation contributions. Those areas include:

Minimum pension reduction

Work test amendment

Downsizer contributions

Spouse contributions

Short selling or “going short” is a term widely thrown around in finance by investors, fund managers and advisers. Although more complicated than your typical buy and hold strategy, a short enables an investor to profit off the decline of the price of a share or security. Simply, this works by the short seller borrowing shares from a lender then immediately selling them at what they believe is a high price. Then, when the investor is due to return the shares to the lender, they purchase them back, hopefully at a lower price, and keep the difference. In the past, these arrangements were complicated to set up but a rise in the popularity of derivatives such as Contract for Difference (CFDs) has made shorting increasingly accessible to everyday investors.

Last month we discussed the subscription-based model and explained why so many companies from various industries are flocking towards this model. We couldn’t leave this topic without a further exploration around the impact these services are having on the music & recording industry.

It's that time of the month again, Netflix has just charged you another $13.99 for accessing their library of films and shows because you’ve forgotten to cancel that subscription you activated 13 months ago. Or maybe you use Stan, Fetch, Amazon Prime or possibly you’re hanging out for the release of Disney+. Unless you’ve been off the grid for the last few years you may have noticed almost anything and everything is moving towards a subscription model. Now you can access all the cloud storage you’ll ever need or have your shaving blades delivered to your door for just a small, convenient monthly payment. But what’s the big deal? Why are so many companies transitioning towards this model? 

Growth and value are two fundamental styles of stock-picking that for years have faced off in a contest for supremacy. To put it simply, growth investors seek to invest in companies that have been posting above-average earnings growth, while value investors look for stocks that appear to be out of favour and have been mispriced by the market. While in combination the two styles are very much complementary, of late the plaudits have all gone in favour of the growth investors. One contributing factor could be the rapid rise in popularity of passive investment and exchange-traded funds (ETFs).

As we pass the winter solstice, things are starting to look up. The days are getting longer, the weather slowly warmer and hopefully our financial position stronger. This month in Strategy Talk we explore why it just got harder to get a home loan, how household debt can be all-consuming, the great financial apps for your phone and the rarely considered topic of social media after death…

“Winter is coming!”. Time to stack the firewood, place the draft snakes and reach for the big pot recipe book. Now that we’re warm and cozy, it’s time to refresh ourselves on some time-tested money tips and pearls of wisdom. In this month’s edition of Strategy Talk, we’re going back to basics.

The proposed changes announced by the Federal Opposition to the way franking credits operate will have significant implications for some investors; but will have little to no impact for the majority of investors.