Five reasons the Turnbull government shouldn’t let us spend super on a home

From The Conversation. Allowing first homebuyers to cash out their super to buy a home is a seductive idea with a long history. Like the nine-headed Hydra, which replaced each severed head with two more, each time the idea is cut down it seems to return even stronger. Both sides of federal politics took proposals … Continue reading “Five reasons the Turnbull government shouldn’t let us spend super on a home”

The unfinished business facing Australia’s new treasurer

From The Conversation. When Australia’s new treasurer walks into the office on Monday morning, a stack of unfinished business awaits. A quick scan of the Treasury website reveals four major inquiries begun in the past 18 months that are still in progress – the Financial System Inquiry, the Competition Policy Review, the Tax White Paper … Continue reading “The unfinished business facing Australia’s new treasurer”

The facts on Australian coal production

From The Conversation. Talk of the demise of Australian coal production is largely political, not economic. The problem for the countries that presently mine and burn coal is that there are currently few low cost alternatives. Most countries in the world today are focused on trying to ensure their citizens have access to electrical power. … Continue reading “The facts on Australian coal production”

Average Super Fund Return Was 13% In 2014 – APRA

APRA just released their Superannuation Fund-level Profiles and Financial Performance (interim edition). Superannuation funds included in this publication represent the vast majority of superannuation assets regulated by APRA. It contains data for all APRA-regulated superannuation funds with more than four members. Pooled superannuation trusts (PSTs) have been excluded from the publication publications as their assets … Continue reading “Average Super Fund Return Was 13% In 2014 – APRA”

Banking Fees Cost $11.6 bn

We have updated our bank fee analysis, to take account of the 2013 data from the RBA. They collect fees data from 17 banks operating in Australia, covering over 90 per cent of total banking sector assets. Each bank provides data on income received over the financial year that is used as the basis for … Continue reading “Banking Fees Cost $11.6 bn”

First Time Buyers Get The Investment Bug – Big Time

The most recent ABS data continues to underscore the fact that Owner Occupied First Time Buyers are sitting out of the market. In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 11.8% in August 2014 from 12.2% in July 2014. However, this … Continue reading “First Time Buyers Get The Investment Bug – Big Time”

ASIC Warns On Super And Managed Investment Fees

ASIC today released a report into fee disclosure practices for super and managed investments.  The intention of the fee and cost disclosure requirements is to promote comparability of products. However, ASIC’s review of industry practices indicates that there is significant variation in the disclosure of fees and costs. A key driver of this variation is … Continue reading “ASIC Warns On Super And Managed Investment Fees”

Why FOFA Matters So Much

Last week, the Future of Financial Advice regulations were tabled in Parliament, following the recently published Senate review.  As currently incarnated they have the potential to drive a coach and horses through the original intentions of the FOFA reforms. Today we explore why this is so, and highlight some of the consequences for both the managed … Continue reading “Why FOFA Matters So Much”

In Europe, Move Towards Greater Investment Fee Disclosure Revealed

The latest EEC Directive “The Markets in Financial Instruments Directive II” (MiFID II) was passed into law recently and includes proposals for greater disclosure to investors in terms of the range of fees which are charged in the investment industry. It will give consumers a better feel for the true “all in” costs of investing. … Continue reading “In Europe, Move Towards Greater Investment Fee Disclosure Revealed”

Australian Annuities, The State of Play – Is There A Demand?

Today we start to look at annuities in Australia. This follows on from our look at the UK’s Annuity Mess recently. In Australia the annuity market appears undeveloped, but in the light of regulatory change, rising superannuation balances and self-managed superannuation, we review the likely prospects. Initially we will look at the demand side and … Continue reading “Australian Annuities, The State of Play – Is There A Demand?”