Will it be a happy new financial year? I’m not optimistic.
In a few hours’ time we will be saying happy (financial) new year! But is it? I suspect for many individuals and businesses, there won’t be many celebratory fireworks.
Of course, the major concern that we all still have is the various variants of the COVID virus doing the rounds, and our relatively low vaccination rate nationwide.
The government’s surprising announcement that under-40s will be given access to the Astra-Zeneca vaccine flagged an interesting turn in the rollout, which flags a desperation to get the vaccination rate up and avoid future lockdowns.
It will be interesting to see how the younger generation takes up the offer. So far, if social media posts are anything to go by the under-40s I know are getting jabbed at a rapid rate.
Of course, our financial and economic fortunes are inextricably linked to the COVID vaccination rate. A low vaccination rate means higher risk of more widespread lockdowns, which we’re seeing this week across the country.
The issue here is that the government has categorically axed JobKeeper, which will inevitably see the axe fall on more and more businesses if these lockdowns continue.
The NSW Government has issued some business support via grants, but if what I am reading is real there will be a lot more needed than just grants.
On a different note, tomorrow is 1 July, which brings a raft of financial changes, as it does every year.
This year’s significant changes are in the super space, with Superannuation Guarantee Contributions (employer contributions) rising from 9.5% of an employee’s gross salary to 10%, and concessional contributions into superannuation increasing from $25,000 to $27,500.
From a share market point of view, investors who have held their nerve and remained in equities have done very well, with the ASX expected to return more than 25% for the financial year as it comes to a close at 4pm AEST.