Innholdsfortegnelse for July 2018 i Money Magazine

Last month, as part of our book competition, a Money reader sent us his top strategy for building wealth. His tip: start a business and invest. Sound advice, I thought, from a nine-year-old. This got me thinking: are our kids getting more money savvy? If money lessons are learnt, and not taught, can parents take the credit or are our children forced to get savvy because of the different challenges they face? I mean, when I was 17, the median house price in Brisbane was just $63,500, there was no such thing as Afterpay, cash was king, I had no mobile phone bill to deal with and uni was free! Research shows that having money conversations with your kids now can make a big difference to their financial future. As…

ROSS GREENWOOD Ross is Channel 9’s finance editor and Radio 2GB’s Money News host. Ross says: “The fairly typical advice my mother gave me was to put some money aside from each pay packet for my savings. Somehow I misconstrued this and decided an alternative strategy was to spend everything I earnt but to eventually earn more money than I could spend.” MATT BATEMAN Matt is co-founder of The Property Mentors. He says: “The best advice my parents gave me was, ‘If you really want something, go out and make it happen.’ More importantly, though, they then provided me with all the unconditional love and support to be unafraid to fail.” BERNADETTE SCHWERDT Bernadette is an author and founder of the Australian School of Copywriting. Bernadette says: “My dad loved…

To ease pressures on big city infrastructure, to capitalise on Australia’s phenomenal economic development potential in the Asian century, and as the most viable solution for Sydney’s (unfixable) housing affordability problem, more needs to be done to promote regional Australia. Take it from someone who has lived there, worked there, done lots of business there and helped hundreds of people to invest there. Employment growth in large parts of regional Australia has been strong over the past couple of years. Tourism, agribusiness, renewable energy, advanced manufacturing and natural resources are expected to keep thriving. Already one in three Australians choose not to live in our capital cities. In 2016-17, the regional population grew by 77,740. Thirty-three locations actually had population growth rates that were comparable with (or superior to) those…

This is a money book with a difference. It tells a fictional story of six 40-somethings but includes important messages about money and life that may help you take a good look at your financial behaviours and discover ways to change them for the better. The six former schoolmates have gone along different paths and re-connect at a school reunion. The book explores how the different financial decisions and behaviours of each character have led to their current situation, and what they wish they had done differently. 10 readers can win a copy. In 25 words or less, tell us your favourite financial success story and why you like it. Enter online at moneymag.com.au/winor send entries to Money, GPO Box 4088, Sydney, NSW 2001. Entries open July 2, 2018 and…

Family and friends cannot always be trusted to ensure your pets are looked after when you die. Too many cats and dogs are left homeless when their owners die. In your will you can include a clause that gifts the pets that survive you to your family or friends. Consider also bequeathing an annual cash gift to the person who you’re leaving them to, so lack of funding won’t prevent that person from taking on the responsibility of caring for your beloved pets. Extend the clause to provide that if your chosen family/friends still cannot take your pets, then allow the executor of your will and estate to give them to another person or organisation (such as an animal charity) together with the cash gift, so that your pet is…

Nearly 2.1 million Aussies had an interest in investment property in the 2016 financial year, according to stats released by the tax office. Of those investors, 61% had a net rental loss while the remaining 39% were net rent neutral or made a profit. The majority of investors (71%) had an interest in just one property but nearly 20,000 people had six or more properties. They made a total of $42.1 billion in gross rental income and claimed $21.7 billion in rental interest deductions, $3.3 billion in capital works deductions and $20.7 billion in “other” deductions.…

It’s no secret that investors tend to change their asset allocation based on their age, and research from SuperRatings confirms that is the case when it comes to super. The data shows a steady trend toward more defensive assets as members of super funds get older, with the shift to safer asset classes becomes most pronounced from the age of 50, says SuperRatings. Younger members on average have a stronger weighting to Australian and international shares but SuperRatings found that around 50 on average they tend to have a higher exposure to fixed income and cash at the expense of growth assets.…

3 to 5 • Play “shop” using pretend money so they understand the concept of trading money for goods. • Explain where money comes from, that is, that you are paid for working. • Describe what $2 or $ 5 actually buys you. • Let them practise putting their money away in a piggy bank. 6 to 9 • Give pocket money as a combination of notes and coins to familiarise kids with the different denominations. • Set up a savings account specifically for them. Explain that they’ll be paid extra money (interest) by having their money in an account. • Talk to them about the difference between needs and wants and how they can budget based on these. • Teach them to compare prices at the shops or in…

SPRIGGY This allows parents to allocate money to their child’s prepaid Visa card. It is available for kids aged from eight to 17. They can set savings goals, allowing them (and you) to see transactions in the app. There’s a 30-day free trial period but after that there is an annual fee of $30. Your child won’t be paid any interest. TRACKMYSPEND TrackMySpend is great for older kids who want to monitor their spending. The app lets you set a weekly, fortnightly or monthly budget. You can then add your expenses as you go and it will let you know how you’re tracking. You can also categorise expenses and set regular expense items as favourites. ROOSTERMONEY RoosterMoney is basically a pocket money tracker. You can arrange for a regular “virtual”…

What is the most valuable lesson you have learnt from your parents? The most valuable lessons I have learnt are that: • You don’t learn from doing nothing. Try investing, even if it is only on paper. Experience is key. • The earlier you start investing the better. If I start to invest when I’m young, rather than wait until I’m 50, the more time my money has to grow and I will have more money to invest than people who show no interest until they have to. • When you are young you can afford to make mistakes. If I only start to invest when I’m 50, the magnitude of my mistakes would have greater consequences than if I was 15.…

What is the most valuable lesson you have learnt from your parents? My mum always goes on about how it’s not what you earn that counts but what you spend. Clearly she isn’t being paid $13 an hour – my hourly rate at my part-time job. I guess it could have been worse. Once I checked the Fair Work Ombudsman website I realised the minimum wage for somebody under 16 working casually in fast food was actually $10.65. Based on this rate I’ve told my parents to expect me at home a little longer. Jokes aside, the best advice my parents gave me was to find a part-time job. I really didn’t appreciate how hard it is to make money until I started working. I’ve always been a good saver…

2% Try to borrow money from a friend 4% Buy it with money that really should be used for something else 67% Save up to buy it 15% Try to borrow money from a family member 12% Not buy it That was the average score Australian students achieved in financial literacy, which was significantly higher than the OECD average of 489 points. How often Aussie students discuss money matters with their parents 12% Almost every day 37% Once or twice a week 16% Never or hardly ever 35% Once or twice a month Savings habits of Aussie students 25% Save the same amount each week or month 6% have no money so don’t save 4% Don’t save 17% Only save when they want to buy something 32% Save each week…

What if you fall in love with someone who has a vastly different approach to money? For example, you are a good saver yet your partner loves to spend money. Or you love to shop and your partner doesn’t want to part with a cent. Not all couples have the same approach to money. But they often get around it because the rest of the relationship works. When couples buy a property or have kids, traditionally they merge their incomes and set up a joint bank account. But this is changing as an increasing number opt for separate accounts even if they have children. A new survey from St.George of 1500 parents around Australia found that around 40% of couples with kids keep separate accounts. It found that only half…

Being a successful property investor is not as easy as many people think in spite of the benefits of negative gearing. If you want to maximise your returns from real estate, here are five rules that will help you take advantage of all the tax breaks. Of course, never buy just for the tax perks. Good property selection is first and foremost. 1 Buy new for the big depreciation benefits still available. Investors in residential property bought after May 9, 2017 (the date of the 2017 federal budget) will no longer be able to claim depreciation on plant and equipment assets installed at the time of settlement. Investors who purchase a new property will be able to continue to claim these items as they could do previously. An example from…

When compulsory super started in 1992, workers enjoyed stable work and income growth. Today their children do unpaid internships, juggle part-time or casual jobs, have a contract that may or may not be renewed and eventually, hopefully, get a permanent position. As workers move between jobs, new super accounts are created, leaving them with multiple inactive accounts each generating admin fees, investment management fees and default life insurance. Instead of growing, their super balances dwindle. Let’s not forget this is money that comes out of people’s pay packets automatically, with the savings there to provide for their retirement. While super funds issue an annual statement, it’s often hard for workers moving jobs and addresses to keep track of what’s happening. The federal government has introduced measures to protect small accounts…

ARE WE TOO DEPENDENT? People used to say that when the US sneezes, Australia catches cold. There may still be truth in that but these days our economy depends much more on what is happening with our largest trading partner, rather than the US. In 2016-17 we exported $96 billion of goods to China, almost a third of our total exports. A further $15 billion of services was exported. While raw materials, particularly iron ore ($52 billion), dominate the trade, there is a flow-on effect through our economy. China is also a growing investor in Australia’s economy and a growing market for services such as education and travel. Our close economic ties with this powerhouse proved a boon during the GFC when, thanks to the China-led commodities boom, Australia was…

The power of diversification is in its ability to reduce the risk of your portfolio by spreading your investments in a way that means if some zig, others should zag (or at least not zig too). But that’s different from spreading your portfolio so thinly that it’s almost translucent. You want to invest in your best ideas, spreading your risk but investing in the companies you expect will be winners. By all means think like Noah. But in investing at least, the natural selection of Darwin might be your best bet.…

What was your first job? My first casual job at 13 years of age was working for a carpenter across the road in Wentworthville, Sydney, for a few bob a day during holidays. But my first full-time job was quality control manager of Birds Eye frozen foods in Rozelle after finishing a BSc degree in chemical engineering, majoring in food technology, at University of NSW. Later I was shocked to discover I was earning the same salary as the general manager’s secretary, even after completing a four-year university course. Perhaps I was too judgmental at the time. What’s the best money advice you’ve ever received? From my CBC bank manager in Bathurst, where I had been promoted to quality control manager for Petersville Ltd’s biggest factory, producing Edgell, Birds Eye…

You know, it never occurred to me that the current royal commission would interest me quite as much as it has. As I said last month, I had been expecting the terrible stories about poor advice, loans and so on. Money viewers and readers have been sending these to me for decades. They have formed the basis for many of the TV segments I have filmed and articles for the magazine. As I write this, the topic under scrutiny is parents guaranteeing a loan for the kids. This is a high-octane area of emotion and, at times, abuse of the elderly. It is a subject I have taken up time and time again through Money. It featured in one of my stories on the Money TV show in its first…

The FANG stocks (Facebook, Amazon, Netflix and Alphabet’s Google) and their peers reached record highs in March, with compound returns of almost 40% a year since the end of 2015. Then they had a setback, losing around 15% of their value. In August last year we wrote about the FANGs’ popularity, valuation and volatility. We also included other similar US companies (Microsoft, Apple, Nvidia, Twitter and Tesla) and their emerging-market equivalents, the BATs (Baidu, Alibaba and Tencent). In our view, these technology superstars continue to be, on average, expensive, high risk and of lower quality compared with the broader equity universe. In related consumer discretionary and technology sectors, we see better opportunities elsewhere. In developed markets, we prefer auto and technology hardware companies with steadier growth and more reasonable valuations.…

If tax time sees you sifting through boxes crammed with receipts, the ATO app produced by the Australian Taxation Office could be just the thing to get organised for the new financial year. It is designed to help individuals, small businesses and self-managed super funds manage income and tax deductions on the go, thereby avoiding the annual scramble for paperwork. The myDeductions feature lets you record vehicle trips (handy for private versus work-related car use) and stores details of invoices and receipts. Some of the additional features can be especially useful if you work for yourself. The ABN look-up tool lets you check if a business you’re paying is registered for GST so you can claim GST credits. The business performance check tool lets you compare your business against others…

Thinking about asking for a pay rise? You’re not alone. According to the 2018-19 Hays Salary Guide, 48% of skilled professionals say they intend to ask for a rise in their next review, with another 24% considering doing so. The bad news is that Hays research also found that the salary increases employers intend to offer this year can best be described as “restrained”. To help score the pay rise you’re hoping for, Hays offers these tips: • Prepare a list of your recent achievements that exceed your objectives. Also list any changed or rising work volumes or duties you’re now undertaking and consider projects you’ve been involved in. • List the resulting benefit to the company. The aim is to provide strong evidence to support the value you provide,…

Paul’s verdict: You two need to have a chat – about risk, not money Go with what minimises the stress in your relationship I’m keen to begin investing in equities but to date have been apprehensive to pull the trigger. My wife Felicity and I have focused on minimising our mortgage and we currently owe $125,000 on our home in country Victoria, paying 4.49% with $50,000 in redraw. I estimate our home is worth about $400,000. I pushed my current lender some time ago to reduce our rate but it wouldn't come to the party so I'm in the process of refinancing elsewhere, hoping for about 3.6%. We also owe $19,000 on the family car (1% finance). We are in our early to mid 30s and have a…

WHAT ARE THE MONEY CONVERSATIONS YOU HAVE WITH YOUR KIDS? As parents, grandparents, aunts and uncles we have a lot of responsibility when it comes to our kids, grandkids, nieces and nephews, from safety, hygiene and health to ethics, behaviour and so on. But a big one is helping them to develop money skills. The most obvious way to help is to chat about money when it is appropriate. Unfortunately, money is still a taboo area for many individuals and families. Now I am not saying we should blurt out all our money details to kids at a young age. But if the kids show interest in good or bad news don't brush them off. There are sure to be age-appropriate lessons in many money situations. So we have tried…

The Great $20 Adventure (RRP $14.95) by Money editor Effie Zahos aims to get young kids thinking about money. When Max’s grandmother gives him $20 for his birthday, Max and his dog, George, go on a great $20 adventure meeting a number of interesting characters, including Miss Penny Saver, Jack Flash and Donny Dangerous, along the way. Max and George soon learn that there’s more they can do with money than just spend it. For your chance to win one of 10 copies tell us in 25 words or less what your child would do with $20. Enter online at moneymag.com.au/win or send your entry to Money magazine, GPO Box 4088 Sydney NSW 2001. Entries open July 2, 2018 and close on August 1, 2018.…

Bernadette Schwerdt is the founder of the Australian School of Copywriting and the author of How to Build an Online Business (published by Wiley, RRP $29.95). Download a free chapter at bernadetteschwerdt.com.au. Money has 10 copies of the book to give away. For your chance to win a copy tell us in 25 words or less us your best tip for becoming your own boss. Enter online at moneymag.com.au/win or send your entry to Money magazine, GPO Box 4088 Sydney NSW 2001. Entries open July 2, 2018 and close on August 1, 2018.…

One of the benefits of a joint bank account is that you can both see what is coming in and going out. Transparency ensures that there is a smaller chance of financial surprises, such as big withdrawals. A joint account also makes it easier to keep track of spending. There will be joint bills that you have to pay. A joint account can make this more straightforward than always having to discuss who is going to pay for what. Your legal affairs can also be easier with a joint bank account. For example, if one spouse dies, the other will be able to access the funds without having to go through the slow process of referring to the will or the legal system to claim the money. One of the…

If you hold your investments on what financial planners call a platform, chances are you could be paying a large fee for what is essentially administration and account keeping. You could be paying as much as, or even more than, your investment management fee. Does this make sense? After all, the investing expertise is probably more valuable than admin. Yet many Australians have their investments on platforms. Planners invest 75% of their client assets through platforms, says Recep Peker, research director at Investment Trends, which has been looking at platforms for 14 years. He says self-managed super funds (SMSFs) invest around 53% of assets through a platform, up from 46% last year. Among financial planners tied to a bank or AMP, Australia’s biggest wealth manager, 96% of new client money…

Q How do I know if investing in gold is right for me? You could decide to buy gold for a number of reasons and investors can adopt a short-term or long-term strategy. Anyone who adopted the latter approach and bought gold in the early 2000s, for example, would have enjoyed very good returns on their investment as the decade progressed. For someone with a portfolio weighted to shares, gold can offer an excellent way to diversify risk because it has tended to have an inverse relationship with equities and other traditional asset classes. Historically, when financial markets have faltered the gold price has tended to rise and this has helped protect the overall value of a portfolio containing gold. Humanity’s long association with gold means we can see that…

The cost of life insurance creates a significant performance hurdle for small super balances, says Canstar’s Josh Callaghan. The researcher found the top default insurance premium paid by a person under 25 on its database was $255 a year for $200,000 death cover and $60,00 in total and permanent disability insurance. “For a young member paying $522 a year for insurance with a balance of $10,000, this means that their fund needs to earn 5.22% a year above the inflation rate just to break even.” He says the federal government could have gone further and made insurance an opt-in for those under 30 as people are increasingly buying their first home and starting a family much later in life. Many super funds automatically accept you for life cover without a…

Want to invest in a fledgling business in the hope that it will be the next big thing? New rules, which came into effect late last year, mean that small investors can now put their money into start-ups with as little as $50. This is known as crowd-sourced funding or equity crowdfunding. That’s the good news. The bad news is that while it may be easier to invest in a start-up, choosing a business that will actually become a big success might prove a little harder. Before you invest take a good hard look at the business. Ask yourself: is there a strong management team; are the plans any good and are they achievable; what is special about the business; would you want to buy the product or service on…

The World Economic Forum recently referred to digital transformation as the fourth industrial revolution. So what criteria suggest companies are serious about DX? These are on the list: • Policy directives from management prioritise digital needs. • Cloud technology is being leveraged. • There’s a collaborative culture. • Everything possible is being connected. • Digital talent is being properly deployed. • DX is improving customer experiences, re-engaging employees and optimising operations. • Customer feedback drives future product initiatives. • Help from third-party expertise is being sought.…

The Australian economy has defied the doomsayers over the past year and continued to punch out reasonably good growth numbers. Indeed, it is benefiting from multiple growth drivers, which has underpinned capital spending, home building and exports, although consumer spending remains frustratingly patchy. NSW and Victoria are enjoying the best economic conditions, though even the mining states of Queensland and Western Australia are starting to find their feet again. Globally, the outlook is also promising. Economic growth in the US remains very robust, despite rising interest rates. And while growth in Europe and Japan has slowed in recent months, this reflects a moderation to a more sustainable pace after a particularly strong rebound in 2017. China is also chugging along, which is at least keeping demand for Australian coal and…

The big four banks represent 27% of the S&P/ASX200, so it is unsurprising that they form an even larger part of most investors’ portfolios, and their recent share price falls have not gone unnoticed. Since their individual recent highs, CBA and Westpac shares are down 18%, NAB is almost 20% lower and ANZ is 13%, so what should investors do? In the long run, bank profits drive share prices. In turn, profit growth is driven by the growth in the loan book (largely mortgages) and the bank’s net interest margin (NIM), which is the difference between what the bank earns from its activities (mainly lending) and what it costs the bank to borrow money. The most important thing to understand is that both NIM and mortgage book growth are under…

Timely reminder of what really matters in life What a timely and insightful article from Marcus Padley (“Our most precious asset,” May issue). He reminds us all that money is not the utmost important ingredient in our lives. It is, simply put, time! We can have our money and its trappings but if we make these our priorities we will be missing out. Interestingly, I am guilty of making the preservation and hopeful expansion of my financial assets an obsessive priority at times but my wife is not. Through more than 50 years of marriage she has never asked nor sought more money for anything and, today, in our retirement years, nothing has changed. How lucky am I? We realise that we have what we need – adequate comforts, including…

If you’ve tried to get finance recently, you may have noticed it’s not as easy as it used to be. The regulator APRA has cracked the whip on lending and serviceability requirements, and as a result banks have introduced tougher restrictions on interest rate buffers, debt-to-income ratios, loan-to-value ratios and interest-only lending. At the same time, the royal commission into banking, which has played out in full colour on the front pages of our newspapers, has put a blowtorch on loan application processes, resulting in increased scrutiny of paperwork at every step in the process. If either had played out individually, the impact on loan approvals might have been lessened. But together they’ve been a significant force in today’s lending crackdown, and it’s not over yet. Latest figures from the…

Citi has introduced a new global currency account. Customers can hold up to 10 international currencies on a single debit card. They can switch between currencies instantly via their mobile app and “pay like a local with their card when travelling”. There are zero ATM fees when using local currency. There’s also no fee for international money transfers. There is an $8 monthly service fee though. BetaShares has launched the Australian Investment Grade Corporate Bond ETF (ASX: CRED) in response to continued investor demand for fixed-income ETFs. The fee is 0.25%pa, which BetaShares says makes it the lowest-cost Australian fixed-rate corporate bond ETF currently available on the ASX. Global travel company Thomas Cook has returned to Australia, starting with travel insurance. Free global wi-fi, currently available through over 5 million…

It’s well known that the cost of getting your tax return prepared by an agent is a deductible expense. Less well known is that as well as the agent’s fee you can also claim any incidental costs that relate to having your return prepared, including accommodation, meals, taxi fares and travel insurance. However, great care needs to be taken when claiming those expenses. Recent guidance issued by the ATO highlights that such costs are only fully deductible where the sole purpose of a trip is to meet your tax agent. If you combine the trip with a private purpose, such as a visit to family or friends or maybe a shopping expedition, all incidental costs must be apportioned. The tax office says that where the travel is undertaken equally for…

Two new funds – New Dawn and Every – are set to be launched for investors who want exposure to cryptocurrency. They both describe themselves as options for retail investors, meaning the minimum investment should be relatively small, although at the time of writing neither fund had a PDS available. The New Dawn fund says it will give investors access to the numerous return-generating avenues in the crypto field, and will offer sophisticated management of market risk, using tools normally available only to institution-focused hedge funds. Every, which aims to roll out its fund in the third quarter of 2018, says it will invest in a diverse portfolio of crypto assets and participate in select initial coin offerings. “A lot of seasoned investors are looking for ways to diversify their…

I think what has been most valuable has been my parents' enthusiasm to discuss money issues and that they would take the time to answer questions. I also got to follow, very closely, my dad as he built his business from a one-roomed serviced office into a large company. My parents would buy a few shares for me and my two sisters and I really enjoyed this as I got older. These were companies I knew such as Commonwealth Bank and Qantas. I got to understand franked dividends and dividend reinvestment plans. Watching my shares rise and fall was also a great lesson. I certainly realised what my parents meant when they talked about “time in the market” being a critical factor. It taught me that some investment risk is…

What is the most valuable lesson you have learnt from your parents? The greatest lesson I have learnt from both my parents would be to remain humble but do not let humility hold you back. I’ve interpreted this to mean that you should always take pride in your achievements and celebrate the success that you yourself have created, while also acknowledging your capabilities in order to pursue new projects and adventures and be confident that they are within your power to achieve them. For me, this manifests itself in a very specific way. I will often talk about (and even border-line brag) about things I have achieved myself through hard work and skill but I will never brag about the achievements of others which have benefited me. Trying to show…

As your kids get older you may encourage them to take the plunge to use their savings to buy shares, managed funds or exchange traded funds (ETFs). Investing teaches kids about weighing up risks to make a return and they’ll also learn to use their money to make more money. Before they jump into an investment it might be worth getting them to participate in the ASX’s Sharemarket Game. They’ll get $50,000 in virtual cash which they can use to buy and sell shares in 220 nominated companies listed on the ASX. A new game kicks off in August and runs for 15 weeks. It’s free to enter and there are even cash prizes. Registration opens on July 12. When they’re ready to invest they might want to buy shares…

What is the most valuable lesson you have learnt from your parents? I'm not sure if my mum taught me this or I figured it out for myself but there’s nothing better than having your own money. It’s allowed me to buy a few things that mum and dad didn’t believe I needed, like my Xbox. Instead of spending my birthday money I now save it up because I know there’ll probably be plenty of other things that mum and dad won’t agree with. I’m now saving to buy my first car – a Jeep Wrangler. My parents say if I reach my goal they'll match it. I’ve got around five years before I get my licence so I need to save $3000 every year – it’s a lot. I’m…

Encourage children to hold a garage sale, market stall or lemonade stand. Supervise money transactions and let them experience the tangible reward of a day's work. Trine We don’t say “we can’t afford it”; we say “we can afford it but we choose not to buy it”. Spending is a choice. Cathy My best money tip is to put a picture of their savings goal next to their money box. An extra visual reminder! Matthew Let them look through the catalogues and plan their purchases in advance. This leads to mindful spending. Vaughan It’s important to distribute your money four ways: spendings, savings, donations and investing. You can never start learning too early. Kayla My best tip for teaching kids about money is if they manage to save half their…

1 SPRUCE UP YOUR COLLATERAL To maximise the value of your home and help ensure the loan to value ratio is above 80%, make sure your property is in good order. Make minor repairs, add a fresh coat of paint and give it a good tidy up, inside and out. 2 SHOW YOU CAN HANDLE THE REPAYMENTS Minimising your credit card and other personal debt will show good financial discipline. Maintaining a good repayment history on all your existing debts is important – failing to meet repayments won’t be viewed favourably by the new lender when assessing your application. 3 GET A HEADSTART ON THE APPLICATION Pull together documentation such as ID, payslips and/or tax returns, as well as recent statements for all the debts being refinanced.…

It’s been five months since the New Payments Platform (NPP) was launched. It was supposed to revolutionise how we transfer money so I was quick to embrace it, signing up for PayID as soon as my bank offered it. But I’m yet to use it. Nobody has given me the option to be paid via my mobile number and nobody has offered their mobile number as a way for me to pay them, which got me thinking, “Has anybody used PayID?” NPP Australia says 10 million payments worth $6.5 billion have already been sent over the platform, and since its launch in mid-February more than 1.6 million “Pay-IDs” have been created. The typical payment is for $120 and for whatever reason Thursday seems to be the biggest day for PayID…

NAME: Melissa Maters and Josh Maranesi BUSINESS: The Hill Bar and Kitchen QUESTION: We are a takeaway food business expanding into a bar- and-kitchen-style restaurant and separate event space in Gerringong on the NSW South Coast. We need some help with merchant facilities. Currently we are fitting out a space, which will hold 120 people in a bar and restaurant, that will be next door to our cafe, Fern Street Espresso and Gelato, and we are at a loss as to the best system to install in terms of a merchant facility that can work across the three arms of the business. These businesses will be connected with kitchen and bar use but with different services and opportunities. We need to find a system that will integrate across all three.…

QUEENSLAND • First home owner grant of $15,000 (down from $20,000 previously) available if you buy or build a new home valued at under $750,000. • No stamp duty payable on vacant land priced under $260,000. Concessions on duty for land valued at up to $400,000. NSW • First home owner grant of $10,000 for new home purchases up to $600,000. • First Home Buyers Assistance Scheme offers an exemption on stamp duty for new homes costing up to $650,000, with a concession on duty for new homes valued at $650,000-$800,000. • Zero stamp duty for first home buyers purchasing vacant land valued at up to $350,000. Concessions on duty for vacant land valued $350,000-$450,000. ACT • First home owner grant of $7000 for buyers of new or substantially renovated…

Platforms are big business. Often they are owned by publicly listed companies. A number are owned by banks. For example, Asgard is owned by BT Financial Group, the wealth management arm of Westpac. BT also owns BT Wrap and its latest platform is Panorama. MLC Wrap and MLC Navigator are owned by NAB. FirstWrap and FirstChoice are owned by Colonial First State, which is in turn owned by Commonwealth Bank. Macquarie owns Macquarie Wrap. Some newer public companies that are independent from the banks are challenging this vertical integration model by offering better technology, sharper fees and a bigger range of investment products. “There are various systems that target different niches,” says Recep Peker, research director at Investment Trends. Some don’t offer direct shares while others do; some offer a…

What’s the future for our banks? It’s not a bad question, because as I sit here writing this, ANZ shares are 13% off their highs of this year, the Commonwealth is off 18.9%, NAB is down 20.6% and Westpac is down 17.6%. The four big banks are the 2nd, 4th, 6th and 7th largest companies in Australia, though at one stage last year they occupied positions 1,2,3 and 4. That’s how big their fall has been. Under normal circumstances, if the price of the four largest companies falls by so much, the overall stockmarket should be heading down in a hurry as well. Except it’s not. The S&P/ ASX 200 index is ahead almost 5% this year and in recent weeks has hit its highest point in 10 years. (On…

YES MARTIN FAHY CEO, Association of Superannuation Funds of Australia (ASFA) Not only should the SG be increased to 12% but it should be done as soon as possible. The current 9.5% is not enough to provide as many Australians as possible with what most consider to be a required standard of living in retirement, particularly in the face of increased longevity and health and age care costs. Compulsory super has, since its inception in 1992, been one of this nation’s most successful public policy initiatives. It has driven private savings, national wealth, economic growth and investment innovation. The additional cost to government of increasing the SG is largely offset by a reduction in public pension payments. Under the current legislated increase to 12% by 2025, the number of Australians…

Australia is China’s sixth largest source of imports, with Korea, Japan and Taiwan heading the list. In 2016, we accounted for 4.2% of China’s total imports. BEST-CASE SCENARIO Steady as she goes for the Chinese economy as the necessary reforms are undertaken. This is sufficient to present growth opportunities for Australia. WORST-CASE SCENARIO China has a hard economic landing and trade with Australia is significantly reduced, lowering our own economic growth. THE WILD CARD Threats of a US-China trade war.…

Noah was a smart and well-connected bloke. Not only did he have a direct line to the Man Upstairs but he was a dab hand as a shipwright. He could also have made a nice career for himself as a drummer, repeatedly counting to two as pairs of all of the animals of creation sauntered aboard. It was a fair effort, and perhaps one of the first recorded examples of the benefits of diversification. That said, Noah has a lot to answer for when it comes to spiders, leeches and a few other unmentionables. Would it really have been so hard to grab the unicorns and leave the funnel webs behind? To some extent, Noah can lay some claim to be the spiritual father of diversification in investment, too. Or…