Federal Budget 2018 - 19 AnalysisThe Federal Government has turned the spending tap back on, signalling the end of the revenue drought since the GFC and the end of the mining investment boom. As widely anticipated, Treasurer Scott Morrison’s third Budget has cut income taxes, boosted support for senior Australians, delivered $24.5 billion of new infrastructure spending and promised a return to surplus by 2020. That’s a year earlier than previousl.....
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Going guarantor might not seem like a big commitment at firstThere are no upfront costs, minimal time commitments and you are lending a helping hand. But beyond signing on the dotted lines, there are many pitfalls of going guarantor for a loved one.Whether you have been asked to go guarantor for a car or home loan, it would be wise to carefully consider the following: Unintended consequencesGuarantors must understand the responsibilities and repe.....
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Appointing a power of attorney is something individuals do when, for various reasons, they are not in a position to control their own finances. Allowing another individual legal authority over your finances can be daunting, particularly if you don’t understand the ins and outs of what a power of attorney’s role is. Below are a range of questions to consider when evaluating and nominating a power of attorney: What power or control does a power of .....
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Choosing which one to invest in can be tricky, however, smart investors should not only consider the advantages and disadvantages of each property type but also how each investment would fit their current portfolio. The debate over whether it is better to invest in residential or commercial property continues to divide property investors and real estate professionals. Some favour residential, since it is the least risky of the two, while others s.....
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Individuals face making crucial decisions when it comes to the deceased’s finances, which can have lasting tax implications.Here are three common inheritance myths.The family home is CGT-freePrincipal places of residence are usually free of capital gains tax (CGT), but a principal place of residence can be subject to CGT when a beneficiary inherits it. The way homes are treated depend on whether they were purchased before or after September 20, 1.....
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The proposed reforms have now been legislated, In summary they are as follows: Concessional Contributions The concessional contributions cap will reduce to $25,000 pa regardless of age. Non-Concessional Contribution Limits A cap of $100,000 pa per person will apply. If the individual is under age 65 the 3 year bring-forward rule can be utilised, therefore contributing up to $300,000 in one year. For the financial year ending 30 June 2017 the curr.....
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The surprise US election result has generated confusion and volatility in financial markets.Comparisons are being made with Brexit, if only for the unreliability of public polling. Financial markets swung wildly in response to unfolding developments. As the counting progressed and Trump’s chances improved, so equities, the US$ and bond yields all fell, while safe haven assets such as gold, Yen and the VIX rallied. However, the tone of Trump’s vic.....
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Restrictions on Tax Free InvestmentAnyone who thought the government's $1.6 million transfer balance cap was the last word on restrictions to tax-free investment earnings for superannuation pensions as well as contributions to super should think again.New proposals on the drawing board could add hundred of thousands of dollars to the pension balances of what has become a major target group — self-managed super funds with investment loans for eith.....
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Giving buyers money inflates pricesThere are two main ways to make houses more affordable – cut prices or give buyers more money. Bringing down house prices would be political suicide. Many recent buyers have so little equity in their houses that cutting prices via savage bank rationing or big interest rate hikes could trigger widespread defaults and a collapse in construction activity causing an economic recession.Instead, governments have focus.....
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Excessive PessimismWithin the U.S., while uncertainty surrounds President-elect Trump’s tax cut and infrastructure plans, we believe they could further bolster the economic forecast. Indeed, the economy has proved resilient in the face of multiple geopolitical surprises.In addition, a global battle with deflation at last appears to be over. Here the U.S. is also leading the charge as a tightening labor market and increasing hourly earnings propel.....
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