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Super
Moves to reduce the tax on earnings of super balances exceeding $3 million and cut the lowest personal tax rate to 14 per cent could have far-reaching consequences for both ends of the income spectrum.
The days when Australia “rode on the sheep’s back” may be long gone, but agriculture remains a critical component of the economy, generating valuable export income. While overseas investors understand its importance, for most local institutions it’s still a bridge too far.
An ASIC report notes the boom in demand for this asset, saying it heightens the need for “better-quality data” about the size of this sector where estimates range between $1.8 billion and $188 billion.
CPA Australia has weighed into the debate about the cost to oversee the industry, adding its voice to those who argue the fee structure favours the larger funds.
A key architect of the compulsory retirement savings system lauds its many achievements, stretching from the national economy to the individual. Where it’s double faulting is in serving members – and it needs to be addressed promptly.
With performance and diversification driving demand, these funds are expected to experience four-fold global growth over the next decade to nearly $AU65 trillion.
With the introduction of MySuper, it seemed investment options based on a person’s age would be the wave of the future. While there were some early adopters, the balanced approach has remained the preferred option.
With Australia’s retirement pool of savings at $4.2 trillion, this nefarious activity is going to become more prevalent, especially with hackers having access to increasingly sophisticated technology.
The ASIC report into death benefit claims revealing the devastating impact of poor industry practices on grieving Australians has again highlighted the pressing need for change. While some funds have taken up the cudgels, others are still playing hardball on improving their service offering.
A Retirement Income Covenant obligation notwithstanding, there is still a paucity of these complex products on offer. The Advice Through Superannuation draft legislation might offer a way forward.
The Coalition has pledged to give young Australians access to up to $50,000 in their retirement savings to get a toehold in the housing market. Super funds say it will only further inflate property prices.
Regulators are on red alert as this technology spreads like wildfire, presenting increasing issues, risks and challenges for global financial markets.