Inflation, deflation – what’s in a name?
February 4, 2021
When the inflation rate fell into negative territory in the June quarter, it was so unusual it begged the question of what this means for the economy. Are we facing deflation or even stagflation and what is the difference? In the June quarter the annual inflation rate fell to minus 0.3 per cent, only the third time…
2020 Year in Review
January 11, 2021
Just as we were recovering from the long drought and the worst bushfires on record, the global coronavirus pandemic took hold and changed everything. Suddenly, simple things we took for granted, like going to the office or celebrating special occasions, were put on hold. While life is still not back to normal, Australia is in…
Review of 2020, outlook for 2021 – from Pandemic to Recovery
December 10, 2020
Key points 2020 was dominated by the Coronavirus pandemic but shares saw okay returns on the back of policy stimulus and vaccine optimism, resulting in constrained but positive returns for balanced growth super funds. For 2021, the combination of massive policy stimulus and the prospect of vaccines allowing a return to something more normal by…
Federal Budget 2020-21 Analysis
October 13, 2020
Building a bridge to recovery In what has been billed as one of the most important budgets since the Great Depression, and the first since the onset of the COVID-19 pandemic dragged Australia into its first recession in almost 30 years, Treasurer Josh Frydenberg said the next phase of the journey is to secure Australia’s…
Extension of the JobSeeker program
August 5, 2020
The Government is extending the Coronavirus Supplement to eligible recipients to 31 December 2020. The amount of the Supplement will be adjusted to reflect the gradually improved economic conditions and improving labour market. Both existing and new recipients eligible for the Coronavirus supplement will continue to be $550 per fortnight up to and including 24…
JobKeeper changes announced
August 5, 2020
The JobKeeper Payment has been extended by a further six months to March 2021, targeting support to those organisations which continue to be significantly impacted by COVID-19. From 28 September 2020, eligibility for the JobKeeper Payment will be based on actual turnover in the relevant periods. The payment rate will be reduced, and a lower…
JobTrainer skills package
August 5, 2020
The Australian Government will invest $2 billion to provide hundreds of thousands of Australians with access to new skills by retraining and upskilling them into sectors with job opportunities, as the economy recovers from COVID-19. The JobTrainer package has two aspects to it. The first aspect of the package, which is worth $1.5 billion, is…
Year in Review – Investment Insights
July 27, 2020
Financial year 2020 has truly been a year of two halves. The first half was characterised by continued economic expansion, buoyant equity markets and historically low – even negative in some countries – interest rates. However, before midnight’s chimes heralded a new decade, raging bushfires made it clear that Australia was potentially set for a…
Tax Alert June 2020
June 30, 2020
With COVID-19 dominating everyone’s thoughts, employers are being offered a brief window of opportunity to get their tax affairs in order with the new Superannuation Guarantee (SG) amnesty. There is also a range of virus related assistance on offer to help affected business and individual taxpayers. Here’s a roundup of some of the latest tax…
Instant asset write-off extended
June 23, 2020
To further support Australian businesses through the fallout resulting from COVID-19, the government has extended the $150,000 instant asset write-off for an additional six months to 31 December 2020. Initially announced on 12 May and intended to last until 30 June, the government’s $17.6bn stimulus package in part temporarily increased the threshold of the instant…
The HomeBuilder program – government grants to eligible homebuilders and renovators
June 23, 2020
The Government has announced the new HomeBuilder program to support jobs and boost demand in the residential construction sector at a time when the construction industry is facing extreme uncertainty. Prime Minister Scott Morrison says this will drive a “tradie-led recovery” of the economy. HomeBuilder will provide all eligible owner-occupiers with a grant of $25,000…
Unintended consequences of Government COVID-19 Policies
June 9, 2020
For every action there is a reaction. And while we’re not criticising the government’s policy response to COVID-19, we recognise that such intervention often has unintended consequences. Take lower interest rates for instance. Central banks intended to make the cost of investment cheaper and be stimulatory. Instead, Australian households borrowed more money to buy bigger…
Time to reassess your financial priorities
June 1, 2020
At a time of uncertainty about the economy, not to mention unexpected social isolation, people are rethinking their personal and financial priorities. Whether you are spending less by necessity or because you are living more simply at home, this could be a good time to reassess your spending and review your household budget. Our spending…
Keeping the economy moving
May 11, 2020
The Morrison Government’s mind-bogglingly large support packages to get Australians through the COVID-19 shutdown have dominated headlines, and rightly so. Only months ago, the Australian economy was in relatively good shape and headed for a Budget surplus. It’s not just the Government that has swung into action. Behind the scenes, the Reserve Bank of Australia…
The Big Differences between the Great Depression and Covid-19
May 7, 2020
Global economic activity has grounded to a halt, prompting fears the world is in for a re-run of The Great Depression. While there might be similar scenes, the parallels are not as strong as you may think. Without a doubt, countries worldwide are in for sharp, deep recessions as they rightly sacrifice economic growth in…
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