The Australian share market started the new financial year with a bang. The All Ordinaries index gained 3.7% for the month to close July at 4,135.50 points. Aussie shares have now gained 4.34% for the 2012 calendar year – a good effort given the headwinds from the euro zone debt crisis.
Global shares were also generally positive in July, with the Dow Jones Index up 1.0%, the FTSE up 1.2%, and the Hang Seng up 1.8%. The Nikkei 225 bucked the trend falling 3.9% for the month.
The Australian share market closed June flat at 4,135.5 points. Global shares were positive (following a rally late on Friday) with the Dow Jones Index up 3.9%, the FTSE up 5.0%, the Nikkei 225 up 5.9% and the Hang Seng up 4.4% for the month.
June signalled the end of the Financial Year in Australia – a poor one for share market investors – with the Australian share market down over 11%. The chart below shows the sector performance of the Australian share market over the 2011/12 Financial Year.
As foreshadowed in the recent Federal Budget, commencing next month are changes to Family Assistance Payments. This article highlights the relevant changes and the new payment rates.
Family Tax Benefit Part A and B indexed from 1 July 2012
From 1 July 2012, Family Tax Benefit Part A and B will be indexed. The maximum rates of Family Tax Benefit Part A will increase by:
With the end of another Financial Year only two weeks away, it is important to consider how you can be proactive in maximising any benefits available.
I have included below three simple strategies to consider before the end of the Financial Year.
1. Defer income and accelerate deductions
The Reserve Bank decided to cut rates amidst 'modest growth' and a 'weaker and more uncertain international environment', the RBA mentioned in a media release. This was underpinned by a previous rate cut which left rates at 3.75%.
The current level of 3.5%, signifies one of the lowest interest rates since 2009.
It was a tumultuous month for financial markets with fears that a collapse of the European Union will lead to a further liquidity crisis throughout the developed world. The Australian share market fell 7.5% to close May at 4,133.7 points, giving back nearly all of the gains made this year.
Global share markets were equally impacted with the Dow Jones Index falling 6.2%, the FTSE falling 7.5%, the Nikkei 225 falling 10.3% and the Hang Seng falling 11.7% for the month.
Personal insurance relates to a variety of insurance cover options that protects individuals against loss due to death, illness or injury. Although this can be a sensitive and emotional issue it is important to be aware of the potential risks and ways you can protect your financial well-being.
There are four main types of personal insurance cover:
1. Life cover
Federal Treasurer Wayne Swan has handed down his fifth Budget promising to deliver a surplus of $1.5 billion in the 2012/13 Financial Year. Provided the Government’s somewhat optimistic growth forecasts come to fruition, this will be the first surplus since Labor came to power in 2007.
The Budget provides cash payments and tax breaks mainly targeted at low income families. The big losers from this year’s Budget are high income earners, and those who are seeking to aggressively ‘top-up’ their superannuation savings via salary sacrifice.
Australia's central bank slashed its cash-rate target by 50 basis points to 3.75% yesterday.
The cut by the Reserve Bank of Australia surprised financial markets and was the first easing since December. Economists had been expecting at 25-basis-points cut. It was the biggest single move in interest rates since February 2009 when the RBA was still managing the collapse in global confidence following the demise of Lehman Brothers.
The sharp reduction in rates comes amid signs the economy has slowed sharply in recent months in areas outside of the booming mining sector.
The Australian share market continued its strong start to the year, gaining 1.1% to close April at 4,467.2 points. Global markets were mixed with the Dow Jones Index flat, the FTSE gaining 1.0%, the Nikkei 225 falling 5.6% and the Hang Seng gaining 2.6% for the month.
The Australian share market has now gained more than 8% for the year. So what has changed in investors’ minds? Given the same risk issues (Europe, US growth/debt and China slowdown etc.) that have dominated markets for some time are still very much with us.