Economy Benefits As Foreign Capital Pours Into Resources, Real Estate
International exposure has lead to an increased strength in the Australian economy. The current value of Australian dollar is 105c US dollar. The trade analysts see it as a good omen for Australia’s global financial scenario. Different sectors have made their contributions to this growth. The silent real estate sector will make an impact this financial year. It may help in increasing the foreign income reserves of Australia. A research done on foreign investors by ANZ shows that real estate will be the major destination having capability to rise strongly. The temptation to see a rise in currency value can be seen in the Australian business scenario.
The inflow of cash in any nation’s economy is the result of its openness towards international trade and foreign direct investment. The openness in international trade helps in not only increasing the inflow of money globally but it also helps in decentralisation of skill sets and human resources worldwide. According to United Nations Commission on trade and development, figures show a rise in foreign direct investment. This growth is taking place at a compound growth rate of 12.25% for 40 years. The net foreign direct inflows in Australia are now at a higher rate of 2% of GDP.
According to Salter, rise in FDI and strong currency may be two faces of same coin. But there are various factors which affect the strength of currency. FDI is significant of all these factors. Many businesses coming to Australia are meant to stay here for a long time. This is evident from the stable currency rates since last two years.
To read more updates on the Australian economy, please visit our website: www.bbwgroup.com.au
Super System Changes Affect All
The new year will bring lots of changes to the superfund industry. The government has announced a number of changes that are going to affect your savings at the end.
1. Superannuation Guarantee Rate (SG): The government has increased the Australia’s superannuation guarantee rate. This will affect the savings made by all superfund contributors. It will increase from 9% to 9.5% with effect from 1st of July, 2013. This guarantee is expected to rise to 12% until 2019-20.
2. Super Guarantee Age Restriction: Another significant change is in the relaxation in the upper age limit for the superfund contributors all over Australia. The employees aged upto 70 can now get benefit from their employers. The employers are now responsible to contribute in the senior worker’s superfund. This benefit will help those citizens who are working in their later life and they can now be assured of a decent amount after retirement.
3. Effective from: 01/07/2013: You must be thinking when these changes will actually come into effect? So readers, as per Super CEO, Brendan O’ Farrell, these changes will apply from 1st of July, 2013.
4. Introduction of MySuper: The Super industry is also introducing a flexible and low cost superfund called “MySuper”. This is aimed to provide decent savings in the end to employees who either work on part time basis or keep on fluctuating in their jobs. This smart Superfund will help in ensuring that type of employee has some savings and contribution from their employers.
5. Introduction of Super Stream: The Government is also introducing an online service called Super Stream. This will help in making super transactions easier. This service will be available after middle of the year.
Around 12 million Australians contribute towards superfunds every year. The above-mentioned changes in legislation may or may not affect your actual superfund scenario. If you feel unsure about the actual status of your superfund, please visit our webpage: http://www.bbwgroup.com.au/superannuation.html
Privacy Rules Stop Release Of Mining Tax Take
The federal government has said that they can’t declare the tax accumulated in treasurers’ fund as a result of mining tax. The treasurer said “it is not good to disclose the tax details of individual taxpayers”. It will be a breach of the commonwealth laws to protect privacy. Various parties and crossbenchers have shown strong objection on this issue. They are demanding that government should disclose the revenue generated from the mining companies. They also commented that, if the government has not generated any revenue within six months, it cannot do so in future also.
As reported by newspaper, ‘The Australian’, BHP Billiton, Rio Tinto and Xstrata are not going to pay mining tax for the second quarter of this year. Finance minister said that the Australian taxation office has conveyed to government not to disclose any sensitive personal information on this issue. The Australian Tax office believes that doing so will be a breach of the privacy required under the Taxation Administration Act.
The real reason behind less revenue generation can be initial high costs involved in the basic ore extraction process in the mining industry. Big mining companies pay a huge amount for setting up initial infrastructure. In the end it results in very less profits, so ultimately the government is left with even lesser revenue. A lot of grants and tax deductions available under this tax are also a significant reason to believe that the government may be earning less revenue.
To know more about mining tax and other taxation related queries, please feel free to visit our webpage: http://www.bbwgroup.com.au/tax.html
Capital Gains Tax Hike Proposed For Super Funds
Recently made announcement by Superannuation Minister, Bill Shorten has
left many super fund owners worried. He said “theses tax changes will
affect only high income earners”. As per information received, the
Australian government is planning to levy a capital gains tax on sale of
properties held within super funds. Earlier no taxes were applicable on
sale of a property held within a super fund if the owner is aged above
60. The Australian government collects capital gains tax a at rate of 45
cents in a dollar for sale of any normal property, but now it has big
plans to collect taxes from high income earners belonging to various
super funds.
Small business Superannuation
owners have expressed their worries on future prospects of their
savings. Peter Strong, Council Of Small Business Of Australia Chief
Executive told that “As small business owners, our lives are based
around our assets”. This change would lead to superfund owners paying
taxes at the time of their retirement, when they are actually expecting
benefits from their super fund savings. Australian financial scenario
would be greatly affected by this step, as this change in taxation
policy would annoy very large number of high income earners. Strong said
“They want us to contribute to a very inefficient superannuation system
when we're better off doing it ourselves”. He also added that big
entrepreneurs prefer to invest in self managed super funds as they do
not have confidence in the Australian super system.
Changes in super fund taxation can greatly affect your self managed super funds audit
and later on savings at the time of your retirement, to secure yourself
from such scenario, please get in touch with our super fund experts in
Australia today.
One In Three Borrowers Fixed Their Home Loan In March
One in every three loan borrowers fixed their home loans in the month of March via leading mortgage broker AFG. The broker has recently fixed their rate at 5% to increase number of fixed home loan borrowers. According to The AFG Mortgage Index Published on 2nd April, 2013, 29.6% home loans were fixed in March as compared to 24.1 % and 16.3% in February and January respectively. The rates achieved in March are however highest rates achieved till today by the AFG.
Home loan borrowers have shown good response and are desperate to lock loans at fixed rates offered by the mortgage broker. Many borrowers told that the reason for fixing loans with the broker were simply the ‘historic low rates’ of interest offered by them. This move is a part of sales team of the AFG mortgage brokers. Main borrowers are first home buyers in West Australia (WA) and investors in New South Wales (NSW). As per the mortgage broker, there is a very low percentage of loan borrowers who are first home buyers. The data for different states in Australia is given below:
For more information on mortgage broking and cost effective loan processing with leading mortgage brokers and lenders in Australia, you can talk to our representative or visit our website: www.bbwgroup.com.au
