K63 Insurance and Superannuation Funds

Tax breaks on family home hit $46b

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Original article by Fleur Anderson
The Australian Financial Review – Page: 10 : 2-Feb-15

The Department of Treasury forecasts that continuing to exclude family homes from the capital gains tax regime will cost the Australian Government some $A46bn in revenue in 2014-15. In contrast, superannuation tax breaks cost nearly $A30bn in lost revenue each year. Robert Jeremenko of the Tax Institute says all aspects of the tax regime should be included in the Government’s upcoming tax white paper

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, THE TAX INSTITUTE, AUSTRALIAN COUNCIL OF SOCIAL SERVICE

Murray report to lead to more M&A activity

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Original article by Michael Bennet
The Australian – Page: 20 : 22-Jan-15

Data from Thomson Reuters shows that the value of mergers and acquisitions in Australia’s financial services sector topped $US54bn in 2014, which is 52 per cent higher than previously. Meanwhile, the value of equity capital market deals rose by 14 per cent to $US5bn. Market watchers anticipate further deal-making activity in 2015, with some citing the upcoming release of the final report of the financial system inquiry as a key factor

CORPORATES
THOMSON REUTERS PLC, WESFARMERS LIMITED – ASX WES, MEDIBANK PRIVATE LIMITED – ASX MPL, QBE INSURANCE GROUP LIMITED – ASX QBE, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ESANDA FINANCE CORPORATION LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, LLOYDS BANKING GROUP PLC, INVESTEC BANK (AUSTRALIA) LIMITED, GE CAPITAL AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK OF WESTERN AUSTRALIA LIMITED, AMP LIMITED – ASX AMP, AXA ASIA PACIFIC HOLDINGS LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CITIGROUP PTY LTD, CLYDESDALE BANK PLC, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, IOOF HOLDINGS LIMITED – ASX IFL, SFG AUSTRALIA LIMITED

Health cover costs could rise by 7pc

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Original article by Jessica Gardner
The Australian Financial Review – Page: 3 : 22-Jan-15

Australian Health Minister Sussan Ley is expected to approve health insurance premium increases as high as seven per cent from 1 April 2015. Health insurance firms argue that rises of up to triple the rate of inflation are justified because of increased use of services, rising care costs and costs associated with technological progress

CORPORATES
AUSTRALIA. DEPT OF HEALTH, NIB HOLDINGS LIMITED – ASX NHF, MEDIBANK PRIVATE LIMITED – ASX MPL, WESTFUND HEALTH INSURANCE, CONSUMER HEALTH FORUM, AUSTRALIA. PRODUCTIVITY COMMISSION

Retail super has only 5pc of default funds

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 14 : 21-Jan-15

Data from Chant West indicates that industry and retail superannuation funds achieved a return of 8.6 per cent in 2014. However, industry funds dominate the list of default super funds in the modern industrial awards system. AustralianSuper is listed in 71 of the 122 awards, while SunSuper and Care Super are listed in 56 and 52 respectively. In contrast, AMP is included in just 15 awards. Financial Services Council CEO Sally Loane has called for Federal Government action to enhance competition in the sector

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, AUSTRALIANSUPER PTY LTD, SUNSUPER PTY LTD, CARE SUPER PTY LTD, AMP LIMITED – ASX AMP, FINANCIAL SERVICES COUNCIL, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MERCER INVESTMENTS PTY LTD, PERPETUAL LIMITED – ASX PPT, AON AUSTRALIA PTY LTD, THE TRUST COMPANY LIMITED, EQUITY TRUSTEES LIMITED – ASX EQT, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, MLC LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BT FINANCIAL GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, COLONIAL FIRST STATE GROUP LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN MANUFACTURING WORKERS’ UNION, THE AUSTRALIAN INDUSTRY GROUP, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. PRODUCTIVITY COMMISSION

Union funds may lose inside run

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Original article by Sally Patten
The Australian Financial Review – Page: 1 & 6 : 19-Jan-15

The Australian Government aims to enhance competition in the superannuation industry by making changes to the MySuper system. Assistant Treasurer Josh Frydenberg argues that any super fund that offers a MySuper product should take contributions from all employees, regardless of whether they chose their own super fund. He wants to have super funds removed from workplace agreements and require funds to improve their disclosure practices. Frydenberg also proposes to introduce a requirement for more directors of super funds to be independent

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY,{SPAC}AUSTRALIA. FAIR WORK COMMISSION,{SPAC}AUSTRALIAN LABOR PARTY,{SPAC}INDUSTRY SUPER AUSTRALIA PTY LTD,{SPAC}AUSTRALIA. PRODUCTIVITY COMMISSION,{SPAC}COMMONWEALTH BANK OF AUSTRALIA – ASX CBA,{SPAC}ASIAN FINANCIAL FORUM,{SPAC}FINANCIAL SERVICES COUNCIL

Insurers dented $1bn by city hail

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Original article by Andrew Main, Mitchell Nadin
The Australian – Page: 3 : 16-Jan-15

Data from the Insurance Council of Australia shows that Brisbane’s "superstorm" in November 2014 has resulted in a total of 100,223 insurance claims to date. The total value of insurance claims has topped $A1.040bn, although this is likely to increase. Meanwhile, insurance claims arising from the bushfires in South Australia’s Adelaide Hills have totalled about $A24.9m so far

CORPORATES
INSURANCE COUNCIL OF AUSTRALIA LIMITED, MARSH PTY LTD

Home care costs to rise in ageing nation

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Original article by Nassim Khadem
The Australian Financial Review – Page: 15 : 14-Jan-15

A report produced by the Association of Superannuation Funds of Australia examines the estimated household budget that retirees will need for both a "modest" and "comfortable" lifestyle in retirement. It concludes that people in their 90s will generally need less income in retirement than those in their 70s, although most will also require a higher level of care in their home. More than 50 per cent of older retirees still live in their own home

CORPORATES
THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY

Legal loopholes exposed as cyclist runs down pedestrian at crossing

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Original article by Eryk Bagshaw
The Sydney Morning Herald – Page: 8 : 12-Jan-15

There is no legal requirement in New South Wales (NSW) for cyclists to hold compulsory third party insurance. This has become an issue in a number of cases where these road users have collided with pedestrians, and the latter were then unable to claim for compensation after suffering serious injuries despite the other party having been at fault and charged with negligent driving. The NSW Motor Accidents Authority in 2013 advised Roads & Maritime Services against a proposed scheme under which an insurance levy would apply at the point of sale of new bicycles

CORPORATES
NEW SOUTH WALES. MOTOR ACCIDENTS AUTHORITY, NEW SOUTH WALES. ROADS AND MARITIME SERVICES, NEW SOUTH WALES. MINISTRY OF TRANSPORT, CITY OF SYDNEY, LEICHHARDT COUNCIL, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, PEDESTRIAN COUNCIL OF AUSTRALIA, BICYCLE NEW SOUTH WALES INCORPORATED

Medibank on the way to $3

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Original article by Jessica Gardner
The Australian Financial Review – Page: 13 : 7-Jan-15

The shares of Medibank Private on 6 January 2015 closed 1.7% lower at $A2.35. The health insurer was recently floated with an issue price of $A2.15 for institutional investors and $A2 for small retail ones. Most analysts have placed negative or neutral recommendations on the stock, and the consensus price target is $A2.30. However Tim Lawson of Macquarie Bank is more bullish with $A2.62 and a "buy" rating, while Bank of America Merrill Lynch’s Toby Langley also recommends accumulating the stock and predicts it to reach $A3

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, MERRILL LYNCH (AUSTRALIA) PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MACQUARIE BANK LIMITED – ASX MBL, RAMSAY HEALTH CARE LIMITED – ASX RHC, HEALTHSCOPE LIMITED – ASX HSO, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SUNCORP GROUP LIMITED – ASX SUN

Lindt siege payouts may depend on terrorist decision

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Original article by Mathew Dunckley, Lisa Visentin
The Australian Financial Review – Page: 3 : 5-Jan-15

The Australian Reinsurance Pool Corporation is empowered by law to gauge the losses incurred by businesses in a terrorism event. It can also, if appropriate, reduce the liability of insurance companies in such cases, and providers including Insurance Australia Group are waiting for a decision by the Federal Government on the 15-16 December 2014 siege at the Lindt Cafe in Sydney’s Martin Place. Some small businesses have lodged claims under optional business disruption clauses, and will need to find out whether the siege is indeed deemed a terrorist act

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, AUSTRALIAN REINSURANCE POOL CORPORATION, AUSTRALIA. DEPT OF THE TREASURY, LINDT AND SPRUNGLI (AUSTRALIA) PTY LTD, AUSTRALIAN NATIONAL RETAILERS ASSOCIATION LIMITED, AUSTRALIAN RETAILERS ASSOCIATION, CGU INSURANCE AUSTRALIA LIMITED, LUMLEY INSURANCE GROUP LIMITED, WFI INSURANCE