Finance News

From the monthly archives: April 2021

We are pleased to present below all posts archived in 'April 2021'. If you still can't find what you are looking for, try using the search box.

The financial advice industry - whats really going on!

Posted on Wednesday, April 28, 2021
Over the past few months, I’ve sat in a lot of meetings with advisers and industry experts regarding the future of our industry and the challenges we face, especially this year. So I thought I’d take this opportunity to give you some insight into what’s really going on.  It’s fair to say that the 2017 Hayne Royal Commission has had a profound impact on the industry. Its recommendations have caused financial advisers who wish to remain in the industry to take on an enormous compliance load, and it’s sparked an exodus of those who refuse to do the work. That’s both a good thing and a bad thing. It’s good because it should have Hayne’s intended effect of tightening everything up and ensuring more ethical practice across the industry. The reality though, is that it’s driven a lot of people out of the business. Prior to the Royal Commission there were 30,000 financial advisers across the country. At the moment the number sits just above 20,00 ... Read the rest of entry »

It looks like we're all getting a pay-rise, but it's not going into our bank accounts

Posted on Thursday, April 22, 2021
I’ve got good news, and bad news.   The good news is we’re all about to get a superannuation increase!   The bad news is that despite it being only weeks since JobKeeper ended, Australian businesses are about to be slugged with the cost increase. This super increase was supposed to happen on 1 July 2020 but was pushed back due to COVID. However, with just a short time before 1 July you can assume it is going to happen this year, so get ready for it. The contribution rate to eligible employees is set to increase from 9.5%, to 10% this year, and then to 10.5% from 1 July next year. That may not seem like much, but for small businesses that have not recovered to pre-COVID levels (which is most), it is. Here's the X factor: industry super funds profit from more funds under management, so this 0.5% increase is enormous to them. As a result, their TV and radio advertising has shifted significantly in recent weeks, with a lady on an escalator ... Read the rest of entry »

House prices are up, the share market is up, so why isn't inflation?

Posted on Wednesday, April 7, 2021
In the post-COVID economy, the number one question is around what interest rates are going to do. More importantly, when will they increase?   As we know, the Reserve Bank is in charge of setting the official cash interest rate. The RBA met yesterday and unsurprisingly, has kept rates on hold. But they’ve gone further, stating:   “The Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range.”   As a reference point, inflation in December was 0.9%, so we can expect interest rates to stay at 0.1% for a while yet, probably until 2024 at the earliest.   The interesting thing though is that the economy looks to be booming, and you’d be forgiven for thinking that everything is on the ups in a big way.   Housing prices have gone mad, petrol is through the roof, and iron ore is booming. So if none of those are driving inflation, what is?   I’ve been hosting Money News on Nine’s radi ... Read the rest of entry »

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