Stamp duty has been a significant barrier to business owners wanting to restructure their business assets. There were many instances where the costs of transferring from one business entity into another (e.g. from a sole trader or partnership to a trust or company structure) were prohibitive because of the amount of stamp duty that was involved. From 1 July eligible... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 23 2016 Key points The past financial year has been rather messy for investors with another long worry list, a bear market in most share markets and record low bond yields. However, returns for diversified investors were not disastrous and followed several strong years.... Read more
Starting a new business, or expanding an existing one usually requires significant funds. Securing a bank loan to enable cash flow is one option, however in our experience the banks are so risk averse that their requirements for real estate security to cover their exposure can make this option unpalatable. Consequently business owners often fund start-ups using their personal financial... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 21 2016 Key points The vote by Britain to leave the European Union poses risks for UK, European and global financial and economic stability that may linger for a while. However, it needs to be kept in perspective and is unlikely to plunge the... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 20 2016 Key points Uncertainty around the outcome of Britain’s referendum on whether to Remain in or Leave the European Union has reached fever pitch. While a victory for the Leave campaign will likely see more volatility, the global economic consequences have likely been... Read more
The Australian retirement saving system is ranked third worldwide in the 2015 Melbourne Mercer Global Pension Index (MMGPI). In the overall ranking, which includes measures of adequacy, sustainability and integrity, the Australian retirement saving system was awarded a score of 79.6 behind Denmark (81.7) and Netherlands (80.5). The Australian score results in a B+ categorisation, slightly outside the A grade... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 19 2016 Key points The success of Trump and Sanders in the US, the close Brexit vote and the Australian Federal Election campaign suggest median voters have shifted to the left and support for economic rationalist policies has fallen. The risk is that a... Read more
A builder must take out job-specific insurance for home building work valued over $20,000, under the Home Building Compensation Fund (previously known as Home Warranty Insurance). If you are a home owner, check that a valid insurance certificate has been obtained for the work you want done. Do this before work starts and before paying any money. Without it, you... Read more
New rules will apply to sellers of certain taxable Australian property under contracts entered into from 1 July 2016. The new legislation imposes a 10% non-final withholding obligation on the purchaser of certain taxable Australian assets when they believe the vendor is a foreign resident. Purchasers will be required to pay 10% of the purchase price to the ATO which... Read more
Until recently people with a HELP loan who moved overseas did not have to repay their debt as long as they remained offshore residents. From 1 January 2016 no matter where you live, the requirements for repayment of a HELP debt are the same. All people with a HELP debt who exit Australia with the intention to work overseas for... Read more