General News
Muirfield Budget Update – May 2014
In one of the more highly anticipated Federal Budgets, the Government announced major changes that could warrant a review of your financial plans. Peter Hogan, MLC Senior Technical Manager provides an analysis of the Federal Budget 2014 and discusses 3 key areas – personal taxation, superannuation and social security.
Note: These changes are proposals only and may or may not be made law.
Summary
- A Temporary Budget Repair Levy of 2% will be payable on taxable incomes over $180,000 pa for the next three financial years.
- Changes to HELP debts will increase the amount payable, and payments may need to be made at lower income levels.
- The Dependent Spouse and Mature Age Worker Tax Offsets will be abolished from 1 July 2014.
- People who make non-concessional (after-tax) super contributions from 1 July 2013 that exceed the cap will have the option to withdraw the excess amount plus earnings on the excess.
- The timeframe for increasing the Superannuation Guarantee contribution rate to 12% will be amended.
- The Age Pension age will gradually increase to 70.
- A range of changes to Family Tax Benefit – Part A and B will reduce the number of people who are eligible and, for some, lower the entitlements.
- The Commonwealth Seniors Health Card thresholds will be indexed from 20 September 2014 and the definition of income will be expanded.
March 2014 Economic Update
In the latest update, Ben McCaw from MLC Investment Management reviews events in markets during February.
The topics he discusses include:
• how global markets did well despite weaknesses in the markets
• why key developed economies are muddling through
• implications of China’s re-balancing from a focus on investments to consumption
• what the outlook is and the economic scenarios MLC is considering.
Click on the above video to see.
Read MoreFebruary 2014 Economic Update
In the latest Economic Update Brian Parker from MLC Investment Management reviews how markets faired in January 2014.
The topics he discusses include:
• why share markets across the world fell sharply over the month
• what impact the US Federal Reserve’s “tapering” of quantitative easing has had on emerging markets
• why the Reserve Bank of Australia is likely to keep interest rates on hold, and
• what strategies MLC has included in its diversified portfolios to help manage risk.
Click above to view his video.
Read MoreTamara Carman recovers $150,000 of over-paid taxes for our clients!
Want to learn if you might be eligible for a refund of over paid taxes?
This video is for you!
Our very own Certified Financial Planner®, Tamara Carman, talks about uncovering over $150,000 for our clients over the past 2 years and how many didn’t even know they were entitled to a refund.
These returns are so easy to claim… but they are also so easy to miss!
If you have direct shares or other investments outside superannuation then you may be able to claim back the franking credits relating to these investments.
So who exactly is Frank?
Franking credits represent the underlying tax paid by a company on pre-tax profits from which any dividends were paid.
They may reduce the amount of tax you pay on dividend income or in the case of retirees where there is little or no other taxable income, claim them back as a refund.
The franking concept was introduced to prevent double taxation, however, once retired we are finding that people stop doing a tax return all together and therefore fail to recover excess tax paid.
If you want to find out more, or to see if you are eligible for a refund, we encourage you to contact our office.
Australian Government Policy Update
The Coalition Government has confirmed its position on a range of previously announced super and tax issues, as part of its mid-year economic and fiscal outlook.
To help you understand how this may affect you, we’ve summed up the key highlights below.
Read MoreSave on health insurance while travelling
Most of us would never travel overseas without first taking out travel insurance with medical cover. Regardless of our destination, the peace of mind such a small outlay provides makes for a better trip.
But what about if you are travelling overseas for a lengthy period, say two months or more, and you are already paying a monthly premium to your Australian private health fund? In effect, you’re paying for the insurance twice.
Read MoreAustralia's Changing Population: some key statistics
A recent study by the Australian Bureau of Statistics has revealed some interesting insights about Australia’s population. These findings show a broader shift in the population and present some stimulating topics of discussion.
Read MoreMoneySmart Week is upon us!
MoneySmart is a Government funded initiative to promote financial literacy amongst all Australians. To start the beautiful season that is Spring, MoneySmart are having a week long festival from September 1 to 7 to outline the importance of good financial habits. Their website, which can be viewed by clicking here, is full of useful tips…
Read MoreAre we in for another mid-year bout of weakness?
After a strong start to the year, share markets have had a few wobbles lately and defensive assets like bonds have rallied again. An obvious concern is that share markets will go down the same path as the last three years that saw the year start off solidly only to see sharp falls in either the June or September quarters led by flare ups in Europe, worries about US growth and fears about China.
From highs around April, global and Australian shares had falls of around 15% in mid 2010, around 20% in 2011 and by around 10% last year.
There are some parallels with the last three years – namely a strong start to the year for shares, followed by a loss of breadth in share market strength both across countries and within markets, renewed Eurozone worries, recent softer jobs data in the US and uncertainty about China.
So its natural to wonder whether markets will follow the same pattern again. And will it be more like 2010 and 2011 which proved to be tough years or 2012 where markets picked up strongly after a milder mid year correction resulting in a strong year?
Read MoreA New Bull Market In Shares?
Oliver’s Insights presented by AMP Chief Economist, Shane Oliver.
Key Points of the article:
1. Shares are overbought and vulnerable to a correction. February is often a soft month and current risks regarding Italy, Spain, the US budget and earnings results in Australia may constrain markets in the very short term.
2. However, the pattern of rising highs and milder lows since late 2011, reasonable valuations, improving global economic news and easy monetary conditions suggests shares have likely entered a new cyclical bull market.
Read More