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The Stage 3 tax cuts have been to the butcher shop and carved into new cuts. What has been minced is the political element of this, i.e. broken promises, bracket creep, rich people were getting too much, low-income earners need it to meet cost of living etc., but if we slice through the politics, there’s way more to consider…
It feels like the investment world has been listening to the Hedgehoppers Anonymous 1965 song lately; where good news is bad and vice versa. One can be forgiven for having to ponder why investment markets have moved in unexpected directions this year. I’ve seen equities rise on news that we’re going into a recession and defensive investments being sold off because a recession isn’t happening quickly enough. Isn’t a recession bad? Don’t shares fall and bonds rise on bad news? Well, maybe, but it’s only part of the picture…
If you’re about to apply for a Centrelink benefit such as the age pension or Commonwealth Senior Health Care Card, you’re going to play a game called Centrelink Snakes and Ladders… The purpose of this is to suggest some tips to finding more ladders and fewer snakes. The difficulty with a Centrelink application tutorial is that everyone's experience in applying for a benefit is different and subject to so many personal variables, let alone the complexities of the system itself. There’s a reason why so many clients prefer to simply pay us to help them with the system barriers, jargon, enormous time delays and hair pulling stress that can be avoided!
It’s tough coming up with some interesting and witty dialogue for this year’s mini federal budget, when it’s exactly that, mini. There are not a lot of maximums on offer for any demographic, although the growing spending on NDIS and Defence are certainly not ‘mini’. Parents may benefit from increased spending in Childcare and more self funded retirees will be able to get the Commonwealth Seniors Health Care Card, thanks to increased income test thresholds (now legislated on Oct 28th, 2022).
The changes in the Financial Services industry in recent years have completely redefined the advice process and the advisers that provide it. The latest figures* show that of the top 16 adviser licencee groups nationally, only 4 had a net positive influx of advisers in the past 2 years. Those 4 groups cumulatively attracted just 66 advisers, while the other 12 groups cumulatively lost 2,966 financial advisers.
For all Age Pensioners and Commonwealth Seniors Health Care Card holders (and other Concession beneficiaries) in SA, now is the time to apply for your Cost of Living Concession if you haven’t already… This year’s Cost of Living Concession is a one off payment of at least $224.60 and Age Pensioners can get up to $449. The application process is pretty simple by entering some basic details online (or via the paper form) but you do need to apply before December 31, 2022 to receive the payment.
Most advanced economies of the world have largely not had to worry about rising inflationary problems for a long time and here in Australia, it’s been very well controlled since the early 1990s. Throughout the pandemic, the financial world has been talking about transitory inflation which has been seen as a positive economic development as it reflects when financial stimulus (in this case from Governments) creates a surge of economic activity (think Job Keeper spending) that temporarily increases the demand and therefore cost of things (think toilet paper).

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Latest insights

As a professional financial adviser, I’m often asked “what do I need to take into account when selling my small business?” Selling a small business can be a complex process, but with careful planning and execution, you can maximize your chances of success.
Humans are naturally overconfident. We overestimate our own ability compared to others. One of the most often quoted studies showed that 93% of drivers rated themselves better than the median. We also know that men usually rate themselves as better drivers than women. However, the data shows the opposite. Men are four times more likely to be involved in a fatal car accident. Men also pay more for car insurance.