Banking and Financial Services
Keep up-to-date with the latest banking and finance news, insights and information in the Australian Banking and Finance industry from financial advisors, experts and associations on Top4 News.
Curated by Top4
Your new post is loading...
Scooped by Top4
Scoop.it!

How compulsory superannuation is now detracting from GDP growth and productivity

How compulsory superannuation is now detracting from GDP growth and productivity | Banking and Financial Services | Scoop.it

During the first televised election campaign debate on Friday, both leaders were asked by Julie, a mum from Western Sydney, if they would consider allowing people to access super early to help buy a home. Both Bill Shorten and Malcolm Turnbull said they had no plans to do so.

 

You'd never guess it from the election campaign, but there are bigger problems with superannuation than who gets the lion's share of the tax concessions. That matters. More importantly, however, is that compulsory super is a drag on growth. Yet shadow Treasurer Chris Bowen last week pledged to lift compulsory contributions from 9.5 per cent of salaries to 12 per cent, while insisting Labor has better ways to boost growth than by cutting company tax.

more...
No comment yet.
Scooped by Top4
Scoop.it!

Asset managers look to sustainable investing

Asset managers look to sustainable investing | Banking and Financial Services | Scoop.it

.

Asset managers will need to embrace the sustainable investing strategies and help their clients better understand and explain the broader risks associated with this concept at a both portfolio and the overall strategy level, according to Willis Towers Watson's Global Investment Matters publication.

 

At the moment, both investors and asset managers find it difficult to construct and articulate ESG strategies as the concepts are not clear-cut while the financial impact of both environmental and social governance (ESG) risks and opportunities need to be carefully considered before selecting investments and building portfolios. Additionally, this approach will encourage in the future skewing the portfolio towards companies that rate highly on ESG criteria.

more...
No comment yet.
Scooped by Top4
Scoop.it!

Budget 2016: What are the new superannuation rules?

Budget 2016: What are the new superannuation rules? | Banking and Financial Services | Scoop.it

Big changes for superannuation are planned, but most only impact the very wealthy.

 

What's changing?


Currently, anyone who earns more than $300,000 a year pays 30% tax on concessional contributions (rather than 15%). As predicted, the Budget proposes to lower this to $250,000.

 

The level of concessional contributions (extra money you put into your super above employer contributions but which is still taxed at superannuation rates) will be capped at $25,000. You could still add extra funds, but you won't get any tax benefit from those contributions. There will also be a $500,000 cap on non-concessional contributions (which attract full "superannuation" tax but aren't taxed at the top marginal rate of 45 cents in the dollar).

more...
No comment yet.
Scooped by Top4
Scoop.it!

Mortgage broker caught up in bikie fraud

Mortgage broker caught up in bikie fraud | Banking and Financial Services | Scoop.it

Mortgage brokers are among those being used by bikies to obtain millions of dollars worth of bank loans using false documents, according to police allegations.

A special taskforce, dubbed ‘Maraar’, is made up of the Fraud and Cybercrime Squad, Strike Force Raptor and the National Anti-Gangs Squad. This initiative has charged 11 people with using false loans to purchase luxury cars, motorbikes and property throughout Sydney. Mortgage brokers, real estate agents and ‘front’ people with no criminal records were those found being used by bikies.

more...
No comment yet.
Scooped by Top4
Scoop.it!

Superannuation gender gap leaves Australian women struggling

Superannuation gender gap leaves Australian women struggling | Banking and Financial Services | Scoop.it

Retirement is supposed to be a time to relax and enjoy life, but for more and more Australian women that is not going to be possible.

 

Sandra Bell has worked hard all her life, and at 68, she is still going.

 

"My plan was that once I retired probably at 65, I would have done some travelling, I would have been able to spend more time with my grandchildren, I would have been able to help them financially, and that's nowhere near what the situation is," she told 7.30.

 

Ms Bell is among a growing number of Australian women who will not have the funds to retire comfortably, and will be forced to work well beyond retirement age.

more...
No comment yet.
Scooped by Top4
Scoop.it!

The Only Way To Learn The True Health Of Our Banks

The Only Way To Learn The True Health Of Our Banks | Banking and Financial Services | Scoop.it

Royal Commissions are one of the most powerful instruments of executive government, with great resources at their disposal and significant coercive powers to inquire and to interrogate individuals.

For this reason Royal Commissions are not to be used lightly.

more...
No comment yet.
Scooped by Top4
Scoop.it!

The bitter-sweet ads designed to win back trust in financial services

The bitter-sweet ads designed to win back trust in financial services | Banking and Financial Services | Scoop.it

How do you win the trust of consumers when the recent history of your industry is punctuated by insurance mis-selling scandals and the global financial crisis? Add to that widespread disinterest in and limited understanding of your products, which are largely to do with debt, death, disability and deferred happiness rather than living in the now, and you can sense the challenge facing those with the task of marketing financial services and making them appealing.

more...
No comment yet.
Scooped by Top4
Scoop.it!

Superannuation: what you need to know

Superannuation: what you need to know | Banking and Financial Services | Scoop.it

As compulsory superannuation approaches its 25th birthday, the federal government is planning to enshrine the objective of the $2 trillion system in legislation. But do you know the basics about how it works? The Money asks two super industry experts to share their inside knowledge.

Top4's insight:

Here are the things that you need to know about Superannuation:

 

  • How does it work?
  • Why is it important?
  • What are the advantages of super compared to other investments?
  • What's the best thing I can do to maximise my super?
  • How much do I need?
  • When can I access my super?
  • How do the special transition to retirement super arrangements work?
  • What should I be aiming for—a lump sum, a pension or a combination of the two?
more...
No comment yet.
Scooped by Top4
Scoop.it!

The ANZ bank is getting tougher on home loans.

The ANZ bank is getting tougher on home loans. | Banking and Financial Services | Scoop.it

The ANZ is tightening the rules for home loans from next week as Australia’s banks start to adjust for any downturn in the housing market.

 

The bank is taking a tougher view of household expenses, a factor in determining the size of a loan and an applicant’s ability to make repayments.

 

From Monday, the bank will now work out household expenses according to the level of income rather than using a one-size-fits-all minimum spend.

Top4's insight:

To learn more about home loans and other financial solutions. Get help from one the most trusted financial institution in Australia today.

more...
No comment yet.
Scooped by Top4
Scoop.it!

Bad debts join the list of challenges in banking's bad year

Bad debts join the list of challenges in banking's bad year | Banking and Financial Services | Scoop.it

Investors are unusually twitchy when it comes to any bad news from the major banks as the risk to dividend payments from a slowing housing market and rising bad debts in the resources sector grows.

 

This was highlighted on the eve of the Easter break when both ANZ and Westpac both flagged an uptick in bad debts due to their exposure to the resources sector.

 

The market's reaction was more savage than it would normally have been for a non-material increase in bad debt charges related to what are presumably a handful of cases of distressed clients.

more...
No comment yet.
Scooped by Top4
Scoop.it!

Home loan criteria tightened says bank regulator APRA

Home loan criteria tightened says bank regulator APRA | Banking and Financial Services | Scoop.it

Australia's bank regulator APRA has found a significant tightening of home lending criteria since it began a crackdown in late 2014.

Tighter criteria mean that more marginal borrowers are increasingly likely to have their loan applications rejected, while those who do get finance will generally find they are offered a smaller maximum loan size.

 

A fresh survey into the treatment of four hypothetical borrowers shows that the average maximum amount that an owner-occupier could borrow fell by 6 per cent.

 

With APRA particularly concerned about the previously rapid growth in investor home loans, and introducing a speed limit on growth in that area, the maximum average loan to investors dropped 12 per cent.

more...
No comment yet.
Scooped by Top4
Scoop.it!

Productivity Commission to probe access to data

Productivity Commission to probe access to data | Banking and Financial Services | Scoop.it

The Productivity Commission will examine whether big banks should be forced to share more data on customer transactions with fintech start-ups and other potential competitors as part of a comprehensive investigation into the availability and use of big data throughout the economy.


Treasurer Scott Morrison will announce policy changes to encourage more fintech entrepreneurs to compete against the big banks at fintech hub Stone & Chalk on Monday morning.


The moves will include a request for the Productivity Commission to report to the government within a year on the costs and benefits of boosting the availability of data held by the private and public sectors, and how rules can be established for the way data.

 

more...
No comment yet.
Scooped by Top4
Scoop.it!

Cybercriminals target millions of bank app users

Cybercriminals target millions of bank app users | Banking and Financial Services | Scoop.it

Millions of customers of Australia's largest banks have been the target of a sophisticated cybercrime operation.

 

The criminals attacked customers with Android mobile phones by stealing bank details and thwarting security systems.

 

While millions of customers are potentially at risk, cyber experts said they cannot be sure how many people have been affected.

 

Digital protection company ESET discovered the new malware, known as Android/Spy.Agent.SI, which presents a fake version of the login screen when an Android user accesses their legitimate banking application.

more...
No comment yet.
Scooped by Top4
Scoop.it!

Mortgage rates hit record lows

Mortgage rates hit record lows | Banking and Financial Services | Scoop.it

With over 30 per cent of lenders confirming they will drop their rates, after the Reserve Bank of Australia (RBA) slashed the cash rate to 1.75 per cent, some lenders are pushing rates to ‘never seen before lows' in the threes, according to rate comparison website, RateCity.

 

RateCity said small lender, Homestar Finance, reduced its variable rate to just 3.61 per cent and Reduce Home Loans dropped theirs to 3.65 per cent.

 

CANSTAR, another comparison site, said this is why borrowers should shop around, as they could be saving $369 per month on a $500,000 mortgage.

more...
No comment yet.
Scooped by Top4
Scoop.it!

Mum and dad SMSF trustees furious at Budget changes to super

Mum and dad SMSF trustees furious at Budget changes to super | Banking and Financial Services | Scoop.it

Trustees of self-managed superannuation funds (SMSFs) are furious at the proposed changes to super in the Federal Budget. They feel they've made serious efforts and sacrificed lifestyle to self-fund their retirement and are especially disappointed at those changes with a retrospective element.

 

"I am livid. We have been encouraged by government to save for retirement in an attempt to be independent. Now we are at risk of being dudded for trying to be responsible," says SMSF trustee Diane*.

 

Trustees Tom* and Cathy* are particularly angry about the $1.6 million cap on how much can be used to start a pension, proposed from July 1, 2017. Earnings tax of 15 per cent being slapped on to transition to retirement (TTR) pensions is another sore point.

more...
No comment yet.
Scooped by Top4
Scoop.it!

Budget 2016: Scott Morrison's superannuation changes receive mixed response

Budget 2016: Scott Morrison's superannuation changes receive mixed response | Banking and Financial Services | Scoop.it

The Federal Government's surprise move to cap superannuation concessions for the very well-off has met with a mixed response from retirees and industry players.

 

Treasurer Scott Morrison last night announced the biggest changes to superannuation since former treasurer Peter Costello removed taxation on super during the retirement phase in the 2006-07 budget.

 

Mr Morrison's moves go some way to unwinding the perceived inequity of Mr Costello's super changes, which have been widely criticised by experts for turning a retirement saving system into a tax-sheltered wealth accumulation and transfer system.

more...
No comment yet.
Scooped by Top4
Scoop.it!

Superannuation: 1 in 3 women retire with nothing, Senate report finds

Superannuation: 1 in 3 women retire with nothing, Senate report finds | Banking and Financial Services | Scoop.it

When you imagine your retirement, how do you picture yourself? Carefree and fabulous, kicking up your heels after decades spent working, maybe travelling the world, child-free, job-free and looking forward to a long and happy old age?

 

If you're a woman, you can think again.

 

Of course, the gender pay gap in Australia is alive and well and sitting at a record-high 18.8 per cent.

 

But perhaps an even more insidious disparity is the superannuation gender gap, where Australian women retire with just over half the amount of super as men, and one in three women retire with no super at all.

more...
No comment yet.
Scooped by Top4
Scoop.it!

Superannuation's Sustainable Agriculture Fund harvests cash profit

Superannuation's Sustainable Agriculture Fund harvests cash profit | Banking and Financial Services | Scoop.it

Farmland owner the $167 million Sustainable Agriculture Fund, backed by Australia's leading superannuation funds, has delivered a net profit of $4.9 million for the six months to December, up on the $1.7 million in the previous corresponding period.

 

The strong result – about $4.6 million of it is cash profit – does not include likely increases in the valuation of land being conducted, which will be recorded in the fund's full-year results. 

more...
No comment yet.
Scooped by Top4
Scoop.it!

Building a data analytics culture in financial services

Building a data analytics culture in financial services | Banking and Financial Services | Scoop.it

Fostering a data-driven culture that can successfully inform an organisation’s strategy requires an ability to relate insights back to revenue, business and customer value.

 

Speaking on a panel at the inaugural Chief Analytics Office Forum in Sydney, ANZ New Zealand head of information and insight, Tina MacLean, said one of the key ways she’s brought executives to the data side is to talk about how analytics supports revenue opportunities.

more...
No comment yet.
Scooped by Top4
Scoop.it!

Five tips to prepare for tax time

Five tips to prepare for tax time | Banking and Financial Services | Scoop.it

It might feel like it’s only just started – but did you know there are now less than 90 days to go before the end of the 2016 financial year?

 

Fortunately, there are some steps you can take now to get ahead of the end of financial year (EOFY) rush, as well as prepare for FY17.

Top4's insight:

Here are the five tips to prepare for tax time

 

  • Visit the Super section of the Australian Taxation Office (ATO) website.
  • Visit the ‘Deductions you can claim’ section of the ATO website.
  • Use our savings calculator (CommBank) to find out how much you could save and what it will take to reach your savings goal.
  • Use our Budget Planner (CommBank) to work out how much you can put aside to meet your savings goals sooner.
  • Tackle your debt.
more...
No comment yet.
Scooped by Top4
Scoop.it!

Secrets to buying under market value

Secrets to buying under market value | Banking and Financial Services | Scoop.it

It's easy to feel a sense of urgency when you're in the market for your next investment property purchase, but don't get caught up in the excitement and make rash decisions.

 

With the Australian property market on the rise, more and more Australian home owners are excited to join the market and sell their properties within a short time frame. However, buyers are now finding themselves in a state of urgency when purchasing properties. During this property market frenzy it is important for buyers to take a deep breath and remind themselves to make smart decisions, including not overpaying for properties.

 

Buying property under its market value should (hopefully) mean a big profit for you in the future, should you choose to re-sell. However, to secure your property as future profit, not future loss, you need to be able to identify whether you’re buying a genuine gem or absolute rubbish. Here are seven top tips on finding and buying property under its market value:

Top4's insight:

This seven top tips are:

 

1. Work out what is good value for you
2. Conduct thorough research
3. Think and act smart
4. Learn how to negotiate
5. Build relationships with real estate agents
6. Investigate the property inside and out
7. Learn when to walk away

 

Learn more about investing and other financial services. Get help from one of the most trusted financial experts in Australia today.

more...
No comment yet.
Scooped by Top4
Scoop.it!

» 3 ways to beat the market by investing in monopoly style businesses

» 3 ways to beat the market by investing in monopoly style businesses | Banking and Financial Services | Scoop.it

A monopoly (in the economic sense, not in board game parlance) is defined as the exclusive possession or control of the supply of, or trade in, a commodity or service.

 

Being the owner of a monopoly asset can be a powerful income generator. Australia has several pieces of legislation in place to guard against the misuse of market power and to prevent monopolies from occurring or becoming too powerful. This helps to balance the needs of consumers against those of big business.

 

However, the fact is that effective monopolies exist, and luckily, investors can own a share in them as several of these are listed on the ASX.

 

So which three companies make the grade?

Top4's insight:
  • Sydney Airport Holdings Ltd (ASX: SYD)
  • ASX Ltd (ASX: ASX)
  • Seek Limited (ASX: SEK)
more...
No comment yet.
Scooped by Top4
Scoop.it!

The Australian credit cycle may have finally turned

The Australian credit cycle may have finally turned | Banking and Financial Services | Scoop.it

The health of the Australian banks is a divisive topic, even without global hedge funds betting on their imminent demise. 

 

Yet as the banks continue to demonstrate their resilience to the doubters, there's general agreement on one point: the bad debt cycle has certainly bottomed.

 

The combination of ultra-low interest rates, conservative lending practices and a relatively healthy economy has meant defaults and bad loans have been an all but absent feature of bank lending in recent years. Meanwhile, the banks have been able to write back bad debt provisions to give their profits an extra kick.

 

The median bad debt charge for Australian banks has historically been about 0.34 of a percentage point of all loans, but the banks have been reporting much lower rates, in the teens and single digits, according to Credit Suisse.

 

Earlier this year National Australia Bank reported its lowest bad debt charge since 1980, an incredibly small $84 million expense for a bank with almost $1 trillion of assets.

 

But wisdom dictated that sooner or later credit conditions will "normalise" and the bank profits would be hit by the inevitable increase in loan losses.  

more...
No comment yet.
Scooped by Top4
Scoop.it!

Superannuation hurt by financial markets

Superannuation hurt by financial markets | Banking and Financial Services | Scoop.it

Global financial market jitters continue to drag on superannuation savings in Australia.

 

Market falls wiped 0.5 per cent off the average balanced super fund in February - the fifth month of falls in the 2016 financial year, according to superannuation research company SuperRatings.

 

The average balanced super fund - which is mostly made up of local and international equities, property and infrastructure, and a mix of fixed interest and cash - is down 1.6 per cent since the start of the financial year.

 

Superannuation research and consultancy firm Chant West today reported a 0.4 per cent fall for the average growth fund in February.

 

more...
No comment yet.
Scooped by Top4
Scoop.it!

Westpac's techno download

Westpac's techno download | Banking and Financial Services | Scoop.it

While Westpac Banking Corporation is cutting more than 100 from its institutional bank, it appears to be bulking up elsewhere with a major system upgrade draining some of its smaller rivals of tech talent.

 

The banking behemoth is overhauling its "customer service hub" and subsidiary St George is understood to be in the midst of moving to a new core banking system.

 

It is understood the bank is poaching staff from numerous payment companies and lenders while the projects are underway.

more...
No comment yet.