The 50% CGT discount has little justification during low inflation and it encourages capital gains over income. The preferable system is the indexation in effect prior to 1999, and it will help housing affordability.
History indicates that Australian house prices are more likely to flatline than collapse. The main problem is likely to be in high-rise construction, with banks exposed to highly-leveraged buyers and developers.
Urban growth poses many challenges. The way we live and interact as a society, especially in growing cities, will continue to evolve including the way we shop, how we move around and how land is redeveloped.
Despite the confusing and technical nature of the CGT relief rules, it’s important for SMSF trustees and advisers to consider their implications as decisions need to be made prior to 1 July 2017.
It’s laudable for government to fund important research but for it to really make a difference, industry participants and researchers need to engage and collaborate with the other. Research on ageing is a case in point.
Putting money aside to pay for a child’s education requires a serious savings effort, and lack of access to superannuation rules it out as a tax-effective and flexible option. There is an alternative.
With the majority of Listed Investment Companies reporting lower earnings in the six months to 31 Dec 2016, it’s the LICs with adequate profit reserves that can offer dividend sustainability for investors.
Sticking to a value-driven investment strategy is difficult in a market fuelled by hope and buoyant expectations. At what point should investors forego the equity market rally to prepare for a possible correction?
Is it better to position a portfolio with an over-reliance on economic growth expectations, or find companies winning market share, cutting costs, restructuring and acquiring independently of GDP hopes?
Bringing funds management in-house is a popular move for large Australian super funds, but the potential problems have been highlighted by Harvard, an early pioneer of the practice, returning to outsourcing.
Allocation Switch is an asset allocation strategy that follows the profits instead of following the market, which arguably helps limit downside in the event of a market crash.
The 2016 Investment Trends High Net Worth Investor Report analyses the use of financial advice and a surprisingly steady asset allocation despite changing market forces.
Unless all members of an SMSF or SAF are of the same age and have the same retirement goals, the new super rules look like complicating tax payments when one member is in pension and the other accumulation.
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