Author: roymorgansocial

SMSFs trail bigger funds by up to 16pc

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Original article by Sally Patten
The Australian Financial Review – Page: 3 : 5-Jul-17

Data from Rainmaker shows that Australia’s self-managed superannuation funds achieved an average annual return of 4.6 per cent in the 10 years to May 2017. In contrast, mainstream super funds had an average annual return of 4.5 per cent. However, Rainmaker forecasts that SMSFs underperformed mainstream funds in the year to May 2017, with respective returns of 7.7 and 9.2 per cent. Rainmaker MD Christopher Page says SMSF trustees should focus on the return over 10 years rather than one year.

CORPORATES
RAINMAKER INFORMATION SERVICES PTY LTD, CHANT WEST FINANCIAL SERVICES PTY LTD, AUSTRALIAN TAXATION OFFICE

Government pushes for progress on group life insurance code

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Original article by Alice Uribe
The Australian Financial Review – Page: 15 : 4-Jul-17

The Australian life insurance sector’s new code of conduct took effect in the week ending 30 June 2017. The code will be enforced by an independent committee, but it does not come under a legal or regulatory body. As yet, the code does not cover life insurance within superannuation, something that Financial Services Minister Kelly O’Dwyer wants addressed sooner than later. O’Dwyer notes that a working group had been looking at the issue for six months, but with seemingly little progress.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AIA AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL, FINANCIAL SERVICES OMBUDSMAN LIMITED

ATO signals tax windfall for wealthy

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Original article by Nick Tabakoff
The Australian – Page: 1 & 2 : 4-Jul-17

A draft tax ruling issued by the Australian Taxation Office in March 2017 could allow "passive" family investment companies to claim tax refunds and deductions. The draft ruling overturned the generally-accepted view that such family investment companies – which do not actively carry on a business – would not be eligible for the reduction in the company tax rate for small businesses from 30 per cent to 27.5 per cent over recent years. Tony Sloan of BDO says the draft ruling would affect many of the firm’s clients, as most would have filed tax returns for 2016 at the full tax rate of 30 per cent.

CORPORATES
AUSTRALIAN TAXATION OFFICE, BDO CHARTERED ACCOUNTANTS AND ADVISERS, NATIONAL TAX LIAISON GROUP

Household debt hits all-time high

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 4-Jul-17

Australia’s household debt-to-income ratio rose to a new high of 190.4 per cent in the March 2017 quarter. Treasurer Scott Morrison has indicated that rising household debt was a key factor for the Federal Government in backing new regulatory measures aimed at curbing interest-only loans for property investors. He has warned of the economic impact if the nation’s residential property market experienced a "hard landing". He adds that the Opposition’s proposed negative gearing reforms would have heightened the risk of a hard landing.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CORELOGIC AUSTRALIA PTY LTD

Small brewers generate $740m economic benefit

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Original article by Simon Evans
The Australian Financial Review – Page: 13 : 4-Jul-17

The Independent Brewers Association, which represents Australia’s craft brewers, states there are now 420 such breweries in Australia. The Association claims its members employ 2,400 people, many of them in non-capital areas, and that craft breweries contribute $A740 million into the economy. However, Burleigh Brewing co-owner Peta Fielding, claims the industry’s ability to expand is being hindered by the high amount of excise tax it pays, and the industry wants it to get the same tax treatment as small wineries

CORPORATES
INDEPENDENT BREWERS ASSOCIATION, BURLEIGH BREWING COMPANY PTY LTD, ASAHI BREWERIES LIMITED, LION NATHAN AUSTRALIA LIMITED, ESSENTIAL ECONOMICS PTY LTD, AKASHA BREWING COMPANY PTY LTD, DAN MURPHY’S, MOUNTAIN GOAT BEER PTY LTD, LITTLE CREATURES BREWING PTY LTD, MALT SHOVEL BREWERY PTY LTD

One in three execs plan to die on the job

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Original article by Patrick Durkin
The Australian Financial Review – Page: 34 : 4-Jul-17

A survey by recruitment firm Watermark of more than 500 executives over the age of 50 has found that almost a third do not intend to stop working. Ron Gauci, who is 58 and has undertaken a number of interim CEO roles in recent years says that temporary roles typically become available without much notice, so being able to adapt to new situations is important. Jacinta Whelan of Watermark says that 30 per cent of Australia’s workforce is expected to be contingent by 2018.

CORPORATES
WATERMARK SEARCH INTERNATIONAL, MELBOURNE STORM RUGBY LEAGUE CLUB LIMITED, CABCHARGE AUSTRALIA LIMITED – ASX CAB, FEDERATION SQUARE MANAGEMENT PTY LTD, NORTHERN MELBOURNE INSTITUTE OF TECHNICAL AND FURTHER EDUCATION

Virgin tips positive cash flow as Velocity slows

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Original article by Michael Smith
The Australian Financial Review – Page: 14 : 4-Jul-17

Virgin Australia released an update on its trading performance on 3 July 2017, two days prior to the launch of its new service to Hong Kong. Virgin Australia, which reported a net loss of $A69 million for the third quarter in May 2017, advised on 3 July that it will be "cash flow positive" for the full financial year. However, its forecast for EBIT growth of between two and three per cent for its Velocity frequent flyer program was down on previous forecasts.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, VELOCITY FREQUENT FLYER PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN

Labor bracing for backlash over $40m timber buyout

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Original article by Samantha Hutchinson
The Australian – Page: 7 : 4-Jul-17

The Victorian Government has entered into an agreement to acquire a majority stake in the Heyfield timber mill in the Latrobe Valley. The mill has been under threat of closure, with the potential loss of 250 jobs, due to insufficient supply of timber from state-owned forests. Agriculture and Regional Development Minister Jaala Pulford said the Hermal Group, the mill’s parent company, had agreed that there will be no loss of jobs while the sale process is being finalised. The Government is understood to have paid between $A38 million and $A42 million to conclude the deal.

CORPORATES
VICTORIA. DEPT OF ECONOMIC DEVELOPMENT, JOBS, TRANSPORT AND RESOURCES, HERMAL GROUP, AUSTRALIAN SUSTAINABLE HARDWOODS, PITCHER PARTNERS CORPORATE ADVISORY PTY LTD, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA

New financial year ‘reset’ for investors

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Original article by Myriam Robin
The Australian Financial Review – Page: 27 : 4-Jul-17

Australia’s S&P/ASX 200 shed 3.4 per cent in May 2017 and 0.1 per cent in June, due to factors such as tax-loss selling in the lead-up to the end of the financial year. Ophir Asset Management’s Andrew Mitchell is upbeat about the outlook for local equities in July, noting that fund managers will begin reweighting their portfolios. Institutional investors may also buy into stocks prior to the reporting season in August.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, OPHIR ASSET MANAGEMENT PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, TPG TELECOM LIMITED – ASX TPM, ACONEX LIMITED – ASX ACX, SANTOS LIMITED – ASX STO, APN OUTDOOR GROUP LIMITED – ASX APO, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, AVEO GROUP – ASX AOG

Fairfax dives as suitors vanish

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Original article by Andrew White
The Australian – Page: 17 & 28 : 4-Jul-17

Fairfax Media has advised that its 2016-17 EBITDA will be within the range of $A262m to $A266m, compared with $A283.3m previously. Group revenue will be six per cent lower, although the Domain property listings business has posted revenue growth of 10 per cent. Fairfax shares fell sharply on 3 July after the media group ended talks with private equity suitors TPG Capital and Hellman & Friedman. Fairfax will now proceed with the demerger of Domain before the end of 2017, although it will retain a majority stake.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, DOMAIN.COM.AU, TPG CAPITAL LP, HELLMAN AND FRIEDMAN, STAN ENTERTAINMENT PTY LTD, MACQUARIE MEDIA LIMITED – ASX MRN, ONTARIO TEACHERS’ PENSION PLAN, CCZ STATTON EQUITIES PTY LTD, CITIGROUP PTY LTD, REA GROUP LIMITED – ASX REA, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS