The Australian Government in a surprise move said it plans to back a $43bn national high speed broadband network, with investment from the private sector, after the global financial crisis decimated any hope of a single private company completing the project. The Government said it will set up a new majority-owned company to build a high speed, fibre-to-the-premises network, but said it wants investment from the private sector.
The Reserve Bank of Australia fine tuned monetary policy by cutting interest rates a further one quarter of a percentage point to a 49-year low, saying the economy is contracting, but at a slower pace than other major economies. Despite lowering its cash rate target to 3.00%, the central bank indicated a more neutral policy stance and said there are tentative signs of improvement in the world economy, including in China, Australia's largest trading partner.
The High Court Of Australia rejected a legal challenge to the government's proposed fiscal stimulus package, clearing the way for cash payments to begin. Bryan Pape, a former lawyer and university lecturer, had argued in the High Court in Canberra that plans by the government to roll out one-off cash bonuses of up to $900 each to Australian taxpayers is in breach of the constitution. The court ruled the payment of the tax bonus under the Bonus Act is "a valid law of the Commonwealth."
A financial adviser can help you make important decisions so you can maintain your financial security during this stage.
We can offer assistance with:
It's important to get advice today.
With your finances in order, you can plan your next move.
1. Act now and seek advice
If you know you are going to be made redundant, seek financial advice immediately to ensure you don't miss out on any financial planning opportunities. Talk to a financial planner before you receive your termination payment - this will allow you to minimise tax, maximise your entitlement to other benefits and ensure you avoid making any costly mistakes. You should also start seeking new employment and organise your referees straight away.
Australia’s economic growth figures (as measured by gross domestic product, GDP) made news in March. Economic growth was weaker than expected at -0.5% for the December quarter 2008 (versus +0.1% for the September quarter). This took the annual pace of growth to just 0.3%, the lowest rate since the end of 1991 (the last recession).
Understanding redundancy and its financial implications has become more relevant than ever in 2009’s turbulent economic environment.
Q How does a SMSF work?
It works the same as a retail superannuation fund. It accepts contributions from members, and invests and manages those contributions and subsequent earnings. Importantly it must pass the “sole purpose test” of being set up for the sole purpose of providing retirement benefits.
Frequently Asked Questions. Borrowing with your Self Managed Super Fund to invest in residential housing.
Q How does my SMSF purchase a property?
The SMSF chooses the property it wishes to invest in, in the ordinary way. Residential property must be purchased from an arm’s length vendor. Non residential property can be purchased for full value from related parties so long as the property is let for business purposes.