Townsville Bulletin, Townsville QLD, General News, Sophie Elsworth

Transcription

1 TUE 19 JUNE 2018 Mediaportal Report Geopolitical tensions dent super returns InvestorDaily by Jessica Yun 326 words ASR AUD 363 Industry Super Australia - Internet ID: Read on source site 5:31 AM N/A UNIQUE DAILY VISITORS, N/A UNIQUE DAILY VISITORS Our emotionally abusive relationship... with the banks WA Today by Julie Szego 515 words ASR AUD 19 Industry Super Australia - Internet ID: Read on source site 12:04 AM 7,298 UNIQUE DAILY VISITORS, 58 UNIQUE DAILY VISITORS Our emotionally abusive relationship... with the banks Sydney Morning Herald by Julie Szego 755 words ASR AUD 1,128 Industry Super Australia - Internet ID: Read on source site 12:00 AM 117,888 UNIQUE DAILY VISITORS, 1,420 UNIQUE DAILY VISITORS Lenders feel the heat Townsville Bulletin, Townsville QLD, General News, Sophie Elsworth Page words ASR AUD 2,792 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 432 word(s), ~1 min 16,484 CIRCULATION COPYRIGHT This report and its contents are for the internal research use of Mediaportal subscribers only and must not be provided to any third party by any means for any purpose without the express permission of Isentia and/or the relevant copyright owner. For more information contact copyright@isentia.com DISCLAIMER Isentia makes no representations and, to the extent permitted by law, excludes all warranties in relation to the information contained in the report and is not liable for any losses, costs or expenses, resulting from any use or misuse of the report.

2 Keep your hands off our super Daily Telegraph, Sydney, Letters Page words ASR AUD 3,638 Photo: Yes Type: Letter Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 130 word(s), <1 min 232,067 CIRCULATION In up to their eyeballs and bracing for tougher limits Herald Sun, Melbourne, Business News, Michael Roddan Page words ASR AUD 11,716 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 488 word(s), ~1 min 303,140 CIRCULATION Forget Prospa: Silver Chef's ready to cook up growth The Australian, Australia, Business News, Richard Hemming Page words ASR AUD 5,396 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 669 word(s), ~2 mins 94,448 CIRCULATION UBS warns tighter loan rules may crunch credit The Australian, Australia, Business News, Michael Roddan Page words ASR AUD 5,497 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 654 word(s), ~2 mins 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

3 Wine flowing into China The Australian, Australia, Business News, Eli Greenblat Glenda Korporaal Page words ASR AUD 7,497 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 845 word(s), ~3 mins 94,448 CIRCULATION Investors harvest Growth Farms The Australian, Australia, Business News, Sue Neales Page words ASR AUD 3,678 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 505 word(s), ~2 mins 94,448 CIRCULATION ASIC targets super fee-gouging The Australian, Australia, Business News, Michael Roddan Page words ASR AUD 8,184 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 760 word(s), ~3 mins 94,448 CIRCULATION NAB finalising MLC mandates The Australian, Australia, Business News, Bridget Carter Scott Murdoch Page words ASR AUD 5,881 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 419 word(s), ~1 min 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

4 Latitude dusts off prospectus for IPO tilt The Australian, Australia, Business News, Bridget Carter Scott Murdoch Page words ASR AUD 4,931 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 314 word(s), ~1 min 94,448 CIRCULATION Market mulls Macquarie role in Blackstone's $3.1bn IOF bid The Australian, Australia, Business News, Bridget Carter Scott Murdoch Page words ASR AUD 15,803 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 386 word(s), ~1 min 94,448 CIRCULATION Watchdog puts company directors on notice over disclosure of climate change risks The Australian, Australia, Business News, Michael Roddan Page words ASR AUD 5,375 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 594 word(s), ~2 mins 94,448 CIRCULATION Too broad for a view The Australian, Australia, Business News, John Durie Page words ASR AUD 970 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 148 word(s), <1 min 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

5 Word on the street The Australian, Australia, Business News, Richard Gluyas Page words ASR AUD 2,364 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 269 word(s), ~1 min 94,448 CIRCULATION First home buyers caught in middle Age, Melbourne, General News, Chris Kohler Page words ASR AUD 13,483 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 506 word(s), ~2 mins 83,229 CIRCULATION Hard times for property in self-managed super Gympie Times, Gympie QLD, General News, Anthony Keane Page words ASR AUD 179 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 482 word(s), ~1 min 2,997 CIRCULATION O'Dwyer resists industry push to gut super-fee cap The Australian, Australia, General News, Anthony Klan Page words ASR AUD 2,001 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 265 word(s), ~1 min 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

6 AND ANOTHER THING Age, Melbourne, Letters Page words ASR AUD 9,846 Photo: Yes Type: Letter Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 260 word(s), ~1 min 83,229 CIRCULATION Huawei says security risk claim ill-informed Border Mail, Albury-Wodonga, General News Page words ASR AUD 907 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 352 word(s), ~1 min 13,519 CIRCULATION Banking blunders cost me $14 million and my health Morning Bulletin, Rockhampton QLD, General News, Michelle Gately Page words ASR AUD 2,808 Photo: Yes Type: News Item Size: 2, cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 1540 word(s), ~6 mins 9,376 CIRCULATION TRENDING News Mail, Bundaberg QLD, General News Page 2 57 words ASR AUD 20 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 57 word(s), <1 min 6,176 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

7 Leave ABC alone News Mail, Bundaberg QLD, Letters Page words ASR AUD 47 Photo: No Type: Letter Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 130 word(s), <1 min 6,176 CIRCULATION A taxing time News Mail, Bundaberg QLD, General News Page words ASR AUD 881 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 657 word(s), ~2 mins 6,176 CIRCULATION Great Teacher's name used for political gain Queensland Times, Ipswich QLD, Letters Page words ASR AUD 98 Photo: No Type: Letter Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 304 word(s), ~1 min 6,815 CIRCULATION Government should help retiree over super tax slug, says adviser Australian Financial Review, Australia, General News, Joanna Mather Page words ASR AUD 3,418 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 446 word(s), ~1 min 44,635 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

8 Investor lash against 'politically correct' boards lacking skills Australian Financial Review, Australia, Companies and Markets, Patrick Durkin Page words ASR AUD 3,863 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 474 word(s), ~1 min 44,635 CIRCULATION SHORT TAKES Newcastle Herald, Newcastle NSW, Letters Page words ASR AUD 2,510 Photo: No Type: Letter Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 455 word(s), ~1 min 23,625 CIRCULATION Super trustees be careful of the TBAR Gladstone Observer, Gladstone QLD, General News Page 19 ASR AUD 95 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Read full text 3,301 CIRCULATION Pre-purchase for life's big certainty Gladstone Observer, Gladstone QLD, General News, Anthony Keane Page words ASR AUD 412 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 409 word(s), ~1 min 3,301 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

9 A taxing time Gladstone Observer, Gladstone QLD, General News Page words ASR AUD 636 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 657 word(s), ~2 mins 3,301 CIRCULATION Wine slowly flows into China The Australian, Australia, Edition Changes - All-round First, Eli Greenblat Glenda Korporaal Page words ASR AUD 7,477 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 860 word(s), ~3 mins 94,448 CIRCULATION Our emotionally abusive relationship... with the banks Sydney Morning Herald 925 words ASR AUD 1,266 Industry Super Australia - Internet ID: Read on source site 18 Jun :40 PM 117,888 UNIQUE DAILY VISITORS, 1,420 UNIQUE DAILY VISITORS ASIC questions funds over delaying switch to MySuper, fee-gouging The Australian by Michael Roddan 745 words ASR AUD 3,926 Industry Super Australia - Internet ID: Read on source site 18 Jun :00 PM 33,387 UNIQUE DAILY VISITORS, 1,813 UNIQUE DAILY VISITORS ASIC puts directors on notice over disclosure on climate change risks The Australian by Michael Roddan 575 words ASR AUD 2,977 Industry Super Australia - Internet ID: Read on source site 18 Jun :00 PM 33,387 UNIQUE DAILY VISITORS, 1,813 UNIQUE DAILY VISITORS COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

10 APA Group could attract rival bid from Canadian funds The Australian by Bridget Carter 403 words ASR AUD 2,036 Industry Super Australia - Internet ID: Read on source site 18 Jun :00 PM 33,387 UNIQUE DAILY VISITORS, 1,813 UNIQUE DAILY VISITORS Banking royal commission: Stand by for brutal farm debt hearings The Australian by Richard Gluyas 919 words ASR AUD 5,786 Industry Super Australia - Internet ID: Read on source site 18 Jun :00 PM 33,387 UNIQUE DAILY VISITORS, 1,813 UNIQUE DAILY VISITORS O'Dwyer resists industry push to gut super fee cap The Australian by Anthony Klan 272 words ASR AUD 1,369 Industry Super Australia - Internet ID: Read on source site 18 Jun :00 PM 33,387 UNIQUE DAILY VISITORS, 1,813 UNIQUE DAILY VISITORS Trading Day: live markets coverage; Banks push ASX higher; plus analysis and opinion The Australian by David Rogers 17 Jun :00 PM 6015 words ASR AUD 34,756 Industry Super Australia - Internet ID: Read on source site 33,387 UNIQUE DAILY VISITORS, 1,813 UNIQUE DAILY VISITORS COPYRIGHT This report and its contents are for the internal research use of Mediaportal subscribers only and must not be provided to any third party by any means for any purpose without the express permission of Isentia and/or the relevant copyright owner. For more information contact copyright@isentia.com DISCLAIMER Isentia makes no representations and, to the extent permitted by law, excludes all warranties in relation to the information contained in the report and is not liable for any losses, costs or expenses, resulting from any use or misuse of the report.

11 Townsville Bulletin, Townsville QLD Author: Sophie Elsworth Section: General News Article type : News Item Classification : Regional : 16,484 Page: 27 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 2,792 Words: 432 Item ID: Page 1 of 2 Lenders feel the heat Deals favour new buyers SOPHIE ELSWORTH THE banking royal commission has prompted lenders to roll out deals to win new customers, including cash, rewards points, rate discounts and no establishment fees. Disastrous stories of fee gouging, falsified documents and inappropriate action has resulted in financial institutions having to take further action to lure new business. Mozo s spokeswoman Kirsty Lamont said there are dozens of special discounted deals and incentives rolling onto the market, particularly as the end of financial year looms. The home loan market is very quiet right now with property prices having fallen in two capital cities and some of the banks are struggling with the fallout from the Royal Commission (into Misconduct in the Banking, Superannuation and Financial Services Industry), she said. We have got lenders who are desperate to drum up some business. Financial comparison website Mozo found some of the best deals available include: UBank s extended offer of $1000 cash for customers who refinance to their UHomeLoan product. Bank Australia has no establishment fee on basic home loan special and variable basic home loan offers until June 30. Latest CoreLogic figures show Australian home prices fell for an eight consecutive month in May following declines in Sydney and Melbourne national dwelling prices declined 0.1 per cent last month. The Reserve Bank of Australia board has kept the cash rate on hold at 1.5 per cent since August 2016 and many home loan interest rates are under 4 per cent. 1300homeloans director John Kolenda said: In order to get market share lenders are really offering attractive rates and offers to lend out more money. The royal commission has produced as an outcome some of the majors lenders change their living expense requirements, there is a tightening of credit, he said. We are seeing competition earmarked to try and attract additional customers finance by offering much better attractive rates. Aussie Home Loans s chief executive officer James Symond said there had been some rate fluctuations by lenders who are finding new ways to compete. He said the market had been quieter, credit is getting tighter and lenders are facing different funding pressures and he warned borrowers to look beyond the special offers. Borrowers should always beware that so-called specials don t turn sour once any honeymoon period or limited time offer expires, Mr Symond said. Mozo s database found on a $300,000, 30-year owner occupier home loan the lowest principal and interest variable rate was 3.39 per cent and monthly repayments are $1550.

12 Townsville Bulletin, Townsville QLD Author: Sophie Elsworth Section: General News Article type : News Item Classification : Regional : 16,484 Page: 27 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 2,792 Words: 432 Item ID: Page 2 of 2 AUSSIE DREAM: The fallout from the banking royal commision has put new home buyers in a position of strength.

13 Daily Telegraph, Sydney Section: Letters Article type : Letter Classification : Capital City Daily : 232,067 Page: 20 Printed Size: 77.00cm² Market: NSW Country: Australia ASR: AUD 3,638 Words: 130 Item ID: Page 1 of 1 06 MONDAY JUNE Labor s Pla by DANIELLE LE MESSURI BILL Shorten s plan sioners by axing a cr ation credit scheme $10 billion short becau investors would sim investment strategie urban battlers the hea Treasury s detaile Labor s controversial dividend imputations credits shows th $10 billion black hole budget revenue, inclu the forward estimates The costings, relea Scott Morrison, will at the start of a fortni tary sitting where th ernment is hopeful o support to pass $140 b income tax cuts for f pany tax cuts for bu over more than $50 m The tax cuts, anno get, will deliver 10 m up to $530 extra a we Shorten announced h Shorten on maths when it comes to Labor s pensioner tax plan. Yesterday s report. Keep your hands off our super money to provide for ourselves in retirement. We receive and expect nothing from the government. But this isn t good enough for Bill Shorten, is it? No, he has his eyes on our superannuation credit scheme and now we find that there will still be a $10 billion shortfall. It comes as no surprise that the ALP finance people got their calculations wrong. We only have to look at the last time they were in power to see the devastating results of their hopeless forecasts of a surplus and foolish spending. Hands off our money, Mr Shorten. If you are looking for a windfall why not tax your unions? After all, they are more cashed-up than most of us retirees. Marg Swindells, Castle Hill

14 Herald Sun, Melbourne Author: Michael Roddan Section: Business News Article type : News Item Classification : Capital City Daily : 303,140 Page: 45 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 11,716 Words: 488 Item ID: Page 1 of 1 bracing for tougher limits IMMINENT restrictions on lending to heavily indebted borrowers are set to exacerbate a squeeze on borrowing, a leading investment bank says. UBS analysts, who have previously warned of the potential for a credit crunch in Australia, say new rules to be ushered in by the banking regulator will have a significant impact. The Australian Prudential Regulation Authority in April told lenders to tighten lax procedures relating to heavily indebted borrowers and customers who did not comply with usual requirements. APRA has said it also expects banks to develop internal portfolio limits on the proportion of new lending at very high debt-to-income levels, and policy limits on maximum debt-to-income levels for individual borrowers. UBS economist George Tharenou said at the moment, about 30 per cent of outstanding mortgage credit was held by borrowers with debts more than six times their income. That meant the proportion of total lending going to borrowers with debt-to-income levels of more than six times would MICHAEL RODDAN HOUSING previously have been greater than 30 per cent, he said. Mr Tharenou noted Westpac had admitted in March the share of loans on the bank s books with a debt-to-income ratio above six times was about 20 per cent. That could be well above the new limit required by the regulator, he said in a report for investors. We expect boards, shareholders and management teams to recommend very high debt-to-income be a low 5 to 10 per cent of new lending flow, Mr Tharenou said. The impact of even a generous limit of 20 per cent would likely be a negative for lending growth and credit availability. Mr Tharenou said the introduction of such debt-toincome limits would likely make borrowing for the median home in Australia (let alone Sydney or Melbourne) even more challenging. It is the latest warning from UBS analysts about a potential credit crunch in the wake of the early evidence presented to the financial services royal commission, which is already resulting in banks tightening underwriting standards and limiting available credit. Last week, official figures showed the number of loans being given to property investors had tumbled to its lowest point in more than six years. Housing finance has fallen for the fifth straight month in the longest stretch of declines since the start of the global financial crisis. Even taking into account higher household income in Sydney and Melbourne along with a 20 per cent deposit, on our estimates the median household in Sydney will only be able to afford an $800,000 property, still well below the median house price, Mr Tharenou said. About 20 per cent of investors own two properties, and 10 per cent own three or more houses. About half of all Australia s investment properties are owned by investors with multiple properties. Limits could well spell the end of widespread multiple property investing in Australia at least for those investors who maintain an owner-occupier mortgage and geared investments, Mr Tharenou said.

15 The Australian, Australia Author: Richard Hemming Section: Business News Article type : News Item Classification : National : 94,448 Page: 22 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,396 Words: 669 Item ID: Page 1 of 1 Forget Prospa: Silver Chef s ready to cook up growth RICHARD HEMMING Financial services companies are often good to invest in because it s a good business model: where else can profits be made solely from using other people s money? But try telling that to someone who put their hard-earned into CBA when the price was above $90 a few years ago after her financial planner told her about the miracle of Australia s dividend franking system. Now CBA s price is below $70, the yield and those franking credits provide little comfort. Investing successfully in the stockmarket is about achieving growth in your initial investment. Dividends alone cannot bring you that. It s about the price you pay and whether you can extract value from there. The big banks look to be much better value these days, but they remain a bet on the long-term viability of the Australian residential housing. In lending, 86 per cent of the market is plain vanilla such as home loans, overdrafts and credit cards, which is amply serviced by the big banks in their oligopolistic way. But lending and borrowing elsewhere is a tutti-frutti world and often it s in niche or underserved markets where value can more often be found. I m talking about the companies that service the unbanked masses who don t fit through the hoops required by traditional lenders: This sector has recently got the wrong sort of attention with the controversial postponement of an IPO from small-business lender Prospa. Lending to start-up businesses is inherently risky. But for me, it s important not to invest in the socalled payday lending businesses, formed to grasp money from customers who don t have any other options. There is a fine line between providing a service to a relatively unbanked customer and adopting usurious and creditshark behaviour because you can get away with it. On a more positive front, I like the fact you can invest in a financial services firm that offers risk uncorrelated to housing-related risks faced by the big banks. Plus, as I said, you can often find much better value. There are a couple of examples that come to mind. Look at the hospitality equipment financing specialist Silver Chef (SIV). You re exposed to a business with a 30-year history in Australia and the possibility of translating domestic success into the Canadian market. Unlike the big banks, whose travails offshore have been abysmal, success here will generate sufficient scale to move the needle. Silver Chef s shares have climbed more than 20 per cent since mid-april. Earlier that month, it had spooked the market by breaching its senior debt covenants. When its debt negotiations were successfully concluded, Under the Radar s analyst Ravi Reddy honed in on its core operations and outlook. The key growth opportunity comes from the Canadian market, which is 50 per cent larger than Australia. The company has taken a patient approach, having been there for three years. Similarities between the Australian and Canadian markets such as dining trends and strong dealer distribution, bolster the company s chances of success, he said. Another stock Ravi likes is Money3 (MNY), which last week reaffirmed that it expects fiscal 2018 net profit after tax to come in at $31 million, the top end of its per cent guidance range. Money3 stands out because it successfully transitioned out of payday lending and into automotive lending, providing credit for people buying used cars. As you can imagine, the big banks aren t in this sector. This company s market share is only 2 per cent out of an estimated addressable market of 700,000 loans a year. This provides a good opportunity for growth, with management aiming to achieve 3 per cent market share over 12 months. If it s successful, Money3 will have to increase the number of loans it writes from 14,000 to 21,000. That s an increase of 50 per cent! Try looking for that kind of growth in home loans. Richard Hemming is an independent analyst who edits undertheradarreport.com.au r.hemming@undertheradar report.com.au $ $3.72 Silver Chef fell 10 M A M J Source: Bloomberg

16 The Australian, Australia Author: Michael Roddan Section: Business News Article type : News Item Classification : National : 94,448 Page: 21 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,497 Words: 654 Item ID: Page 1 of 1 UBS warns tighter loan rules may crunch credit MICHAEL RODDAN LENDING Imminent restrictions on lending to heavily indebted borrowers will accelerate a squeeze on borrowing, according to UBS analysts who have warned of a potential credit crunch in the Australian economy. The Australian Prudential Regulation Authority in April told the banking sector to tighten lax procedures relating to heavily indebted borrowers and the sale of loans to customers who did not comply with usual requirements. As part of these measures, APRA also expects banks to develop internal portfolio limits on the proportion of new lending at very high debt-to-income levels and policy limits on maximum debt-to-income levels for individual borrowers. UBS economist George Tharenou said about 30 per cent of outstanding mortgage debt was held by borrowers with debts more than six times their income, which meant the flow of total lending going to borrowers with debt-to-income levels of more than six times would previously have been greater than 30 per cent of lending. Mr Tharenou said Westpac admitted in March that the share of loans on the bank s books with a debt-to-income ratio above six times was about 20 per cent, and this could be well above the new limit required by APRA. We expect boards, shareholders and management teams to recommend very high debt-to-income be a low 5 to 10 per cent of new lending flow, Mr Tharenou said. The impact of even a generous limit of 20 per cent would likely be a negative for lending growth and credit availability. It is the latest warning from the UBS analysts of a potential credit crunch in the wake of the early evidence presented to the royal commission into banking and financial services, which is already resulting in banks tightening underwriting standards and limiting the amount of credit available. Last week, official data showed the number of loans sold to property investors had fallen to its lowest point in more than six years. Housing finance has fallen for the fifth straight month, making it the longest stretch of declines since the start of the global financial crisis. Last weekend the auction clearance rate was 56.9 per cent, a slight rise after the Queen s Birthday weekend prompted the lowest recorded clearance rate across the combined capitals since This means that the introduction of debt-to-income limits will likely make borrowing for the median home in Australia (let alone Sydney or Melbourne) even more challenging, Mr Tharenou said. He said restricting the amount of credit going towards borrowers with lower incomes could drag house prices in Sydney and Melbourne lower, as loan sizes would no longer support high house prices. Even taking into account higher household income in Sydney and Melbourne along with a 20 per cent deposit, on our estimates the median household in Sydney will only be able to afford an $800,000 property, still well below the median house price, Mr Tharenou said. A tightening of access to credit for heavily indebted borrowers would also crimp the ability for property investors to enter the market. About 20 per cent of investors own two properties, and 10 per cent own three or more. About half of all investment properties are owned by investors with multiple properties. Limits could well spell the end of widespread multiple property investing in Australia at least for those investors who maintain an owneroccupier mortgage and geared investments, Mr Tharenou said. Reserve Bank governor Philip Lowe last week said the current squeeze on lending credit was manageable and called for calm as Australia s housing market weakened. Major markets such as Sydney and Melbourne are seeing house prices fall. A tightening of credit standards over recent years had put a brake on lending, slowing what had become a worrisome rise in household debt levels. Dr Lowe said the Australian housing market was unlikely to face the same fate as the US housing market in the GFC. Limits could well spell the end of multiple property investing GEORGE THARENOU UBS ECONOMIST

17 The Australian, Australia Author: Eli Greenblat Glenda Korporaal Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 7,497 Words: 845 Item ID: Page 1 of 2 Wine flowing into China Australian exports are moving through the ports again ELI GREENBLAT GLENDA KORPORAAL TRADE Australian top winemakers have acknowledged some thawing in relations with China as they attempt to get stock moving into their biggest export markets, although many say sales are not yet up to full capacity. The nation s $40 billion wine industry was sent into a tailspin last month after a go slow at Chinese ports threatened to sink trade relations, with Australian wine reportedly singled out by customs officials who had instituted new accreditation and documentation processes that caught producers off-guard. While no one could nominate the reason for the slowdown, some blamed Chinese red tape while others saw something more ominous in the form of a trade retaliation. A series of issues including proposed national security legislation, a tightening of foreign investment rules and comments by Turnbull government ministers on China, including its role in the South China Sea and the Pacific, have added to the tension with Beijing. More recent issues have included concerns that Chinese telecommunications company Huawei could be excluded from bidding for work on Australia s 5G mobile network. It comes as Australia China Business Council chairman John Brumby is set to deliver a sharp warning to the Turnbull government today that deteriorating ties with China threaten Australia s $183bn trade with the world s second-largest economy. The deterioration in the government-to-government relationship has the potential to undermine our business opportunities and future success, Mr Brumby, the former Victorian Continued on Page 27 Treasury Wine s earnings (H1, 2018) 8 22 AMERICAS ASIA EUROPE AUSTRALIA/NZ Source: Bloomberg Australian wine flowing into China as Beijing eases red tape Continued from Page 17 Premier, will say in a speech to the ACBC s annual networking day in Canberra. The relationship needs reset and repair to return to a position of mutual trust, respect and friendship to the long-term benefit of both Australia and China. Mr Brumby s speech comes at a time of increasing concern in the business community about the Turnbull government s stance on China which will be discussed at today s meeting between business leaders and federal politicians. The Prime Minister Malcolm Turnbull has agreed to address the ACBC meeting as well as Foreign Minister Julie Bishop and Trade Minister Steve Ciobo. A spokesman for Treasury Wine Estates, which is behind brands such Penfolds, Rosemount and Wynns, last night indicated that some of the shipping and customs problems had been resolved and that containers of its Australian origin wine were once again beginning to move through customs and ports, but not all technical issues had been resolved. Mr Ciobo, who has personally intervened on behalf of winemakers, yesterday said Treasury Wine s issues had been dealt with. Certainly with respect to TWE it is (fixed), Mr Ciobo told Sky News yesterday. Two points on (Australia- China) relations. The first is that there are always, from time to time, irritants in any trade relationship so when I say that we ve dealt with that, that s not to say there will never be any issues again in the future. The chief executive of the Winemakers Federation of Australia, Tony Battaglene, said containers passing through Chinese ports had shown signs of improving in terms of speed and battling with new customs regulations. But he said the ease of trade through these entry points had not completely returned to what it was. The trade issue has certainly quietened own, and product is starting to get through whereas before it was getting held up, Mr Battaglene said. Last week French drinks giant Pernod Ricard, owner of Australian brand Jacob s Creek, issued a statement saying only some of its wines were undergoing normal document reviews at Chinese customs and standard procedures

18 The Australian, Australia Author: Eli Greenblat Glenda Korporaal Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 7,497 Words: 845 Item ID: Page 2 of 2 were being followed. Following a 50 per cent jump in exports, China has become Australia s most important and lucrative export market, with Australia now ranked as China s second largest source of imported wine, sitting just behind France. China recently became the first Australian export market to crack more than $1bn when grouping together sales to China, Hong Kong and Macau, and are up by 51 per cent for the year to March. Darren De Bortoli, the head of De Bortoli Wines, said there had been a slight improvement in shipments to China. It does seem to be different ports have different rules. I have been told there is a variation depending on destination, Mr De Bortoli told The Australian. The wine is getting through. It s just a bit frustrating really, more to do with their systems from what I can gather. In his speech Mr Brumby notes that the government-to-government relationship had been showing signs of fraying at the edges last year but had met more challenging circumstances this year an indication that the deteriorating relationship has come under the Turnbull government. Mr Brumby will use his speech to reject arguments that Australia has to choose between developing its relationship with China and protecting its national security. He will argue that protecting Australia s national security includes developing a more positive relationship with China. The choice is not about whether to protect our national interest or engage more closely with China, he says in the speech. John Brumby

19 The Australian, Australia Author: Sue Neales Section: Business News Article type : News Item Classification : National : 94,448 Page: 19 Printed Size: cm² Market: National Country: Australia ASR: AUD 3,678 Words: 505 Item ID: Page 1 of 1 Investors harvest Growth Farms SUE NEALES INVESTMENT A specialist Australian agricultural investment company is launching a new $140 million farmland fund to capture interest from self-managed super funds, family offices and wealthy individuals. Growth Farms Australia, which manages rural farmland worth $450m on behalf of overseas and family investors, says its latest trust is open to sophisticated investors with between $100,000 and $1m to invest. GFA managing director David Sackett said the new 10- year fund would not run the farms themselves, but earn income from leasing land out to farmers and through capital appreciation of the farmland. Mr Sackett plans for the fund to buy 20 to 25 farms worth $4m- $6m each a smaller farm size that allows for both geographical and commodity diversity while suiting farmers looking to lease smaller parcels of additional nearby farmland to their existing operations to expand. The fund will invest in higherrainfall dairy, cropping, livestock and horticultural farms spread along Australia s east from Tasmania to Queensland. About 20 per cent of the fund will be invested in high-value water entitlements that can be traded. Mr Sackett expects the fund, after fees, to return about per cent a year for investors leaving their money in the trust for the full 10 years. The farms will be sold at the end of the fund s decade although Mr Sackett envisages a secondary market developing for any investors who need their cash earlier with the farm families that have leased the farmland from Growth Farms being given the first option to buy. On an annual basis, without accounting for rural land value rises, the Australian Agricultural Lease Fund will return about 4.5 per cent from the lease of the land to farmers who will run the rural business. The model is similar to that of the world s leading agricultural farmland investment manager, US giant Westchester, which estimates that over the long term farmland returns 5-6 per cent a year on investment from food production and lease income, and a further 6 per cent from capital land value appreciation. There are a lot of investors out there who want to be in agriculture, but who either don t have enough funds to buy individual farms themselves, or who don t want the hassle and stress of being a farmer directly, with the risk exposure that brings to seasons, the weather and commodity prices, Mr Sackett said. Farm leasing is a well-established model in the US and other markets, and Growth Farms Australia believes it has strong potential in the local sector. Mr Sackett said the advantage of the leasing model was that it gave farmers an opportunity to expand their businesses without having to find the capital to buy more land. Many existing farms are subscale and capital-constrained. Leasing overcomes this. Investing in a farm leasing fund is similar to investing in a commercial property fund, where investors receive an income based on the rental yield and are exposed to the change in the capital value of the property, not the value of the business using the property.

20 The Australian, Australia Author: Michael Roddan Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,184 Words: 760 Item ID: Page 1 of 2 FUND CHIEFS QUIZZED ON DELAYS IN MOVING MEMBERS SAVINGS TO LOW-FEE PRODUCTS ASIC targets super fee-gouging EXCLUSIVE MICHAEL RODDAN SAVINGS The corporate watchdog has hauled superannuation executives, including those from scandal-plagued AMP, into its offices to explain instances of apparently deliberate fee-gouging by delaying the transfer of money into lowfee MySuper accounts. The Australian Securities & Investments Commission believes a number of Australia s super fund managers deliberately dragged out a move to shift billions of dollars in super assets out of high-fee legacy products into low-fee accounts, as was required by reforms passed by the Gillard government in As part of its investigation, ASIC has issued a please explain to several wealth managers and invited executives to its offices to discuss their approach to the transition. Super funds were given four years to transfer members savings out of high-fee legacy products and into low-fee MySuper accounts by July last year. But a number of for-profit super funds took until the eleventh hour of the four-year transition period to transfer these funds, meaning customers paid more in fees and companies booked higher profit margins off customers retirement savings. The watchdog is determining whether the tardy approach to transferring the assets was deliberate and whether this constitutes a breach of super trustee duties to act in the best interests of their members. A spokesman for ASIC declined to comment. A number of wealth managers are believed to have provided evidence that their internal office systems were not capable of a more timely transfer, but ASIC is yet to be convinced that the required investment in the systems has been made. Further action is being considered in some cases. A report by Rainmaker Information found that retail and bankowned super funds were collecting between $800 million and $1.8 billion over four years by leaving customer savings in legacy products with higher fees, instead of transferring them to cheaper products. AMP confirmed it had been engaged in talks with ASIC over its MySuper transition. We completed the MySuper transitions ahead of the deadline of June 30, 2017 and are fully compliant, an AMP spokeswoman said. We have an ongoing dialogue with ASIC, including helping them to better understand our transitions. Other banks said they had not been asked to attend discussions with ASIC on the matter. ASIC s invitations to discuss the matter have so far been voluntary. A spokeswoman for National Australia Bank said the group had completed its transfers well ahead of the deadline. A Commonwealth Bank spokeswoman said Colonial First State completed the bulk of its MySuper migration in 2016, with a small tranche completed in the first half of The bulk of the migration was completed well ahead of the required legislative time frame, she said. Westpac s BT Financial Group completed its transition in May However, it had transferred less than half of the assets by November An ANZ spokesman said the bank completed its transition on time and spent more than $100m on building and transitioning customers to better products. Continued on Page 20 SAVE OUR SUPER Total MySuper assets $bn Mar-2017 Jun Sep Dec Mar-18 Source: APRA

21 The Australian, Australia Author: Michael Roddan Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,184 Words: 760 Item ID: Page 2 of 2 ASIC pulls up super funds over fee-gouging Continued from Page 17 Proposals announced by Financial Services Minister Kelly O Dwyer will from July next year limit fees charged on super accounts with balances under $6000 to a maximum of 3 per cent. Speaking to Ticky on Sky News Business last night, Ms O Dwyer said the reform measurers would enter parliament this sitting week. AMP earlier this year told investors in a report its wealth management earnings had fallen 2.5 per cent over the 2017 calendar year largely due to margin compression from MySuper transitions. It said it pushed through large MySuper transitions in the last quarter of 2016 and the second quarter of 2017 just before the deadline. AMP told investors a year earlier that largest volume of transitions was ex- pected to occur in the second quarter of AMP said its corporate super business held the majority of its default accounts, which at the end of 2016 held $5.1bn in assets. That was down from $15bn in early AMP s corporate super customers include employees of Woolworths, Coca-Cola Amatil, Anglicare, Australia Post, Nine Entertainment and Caltex, among others. NAB told shareholders last year its net investment income fell 4.3 per cent, or by $44m, over the year due to the MySuper plan transitions. In its annual report last year, Westpac said it was also suffering lower margins from product mix changes, including the migration to MySuper products. Industry funds, which had only a small amount of so-called accrued default amounts, completed the transition by mid-2014.

22 The Australian, Australia Author: Bridget Carter Scott Murdoch Section: Business News Article type : News Item Classification : National : 94,448 Page: 18 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,881 Words: 419 Item ID: Page 1 of 1 DATAROOM NAB finalising MLC mandates National Australia Bank is finalising the mandates for the investment banks that will lead its dual-track process to decide the future of the MLC business. A beauty parade wrapped up last week, with five banks pitching for the lead role in spinning off the wealth management business, which could be worth between $3 billion and $4bn. DataRoom understands that Macquarie Capital, Bank of America Merrill Lynch, Credit Suisse, Morgan Stanley and Citigroup were among the banks that pitched to NAB. Given the Colonial First State Global Asset Management (CFSGAM) float is still on the cards, the banks working on that deal were not invited to pitch for the NAB work. That ruled out JPMorgan, UBS and Goldman Sachs, which are in charge of the slow-moving CFSGAM deal, which CBA is still reportedly hoping can be done later this year. NAB put MLC on the block in May as part of its move to pare its model to traditional retail banking. The deal had been tipped for some time after the bank sold its life insurance operations to Nippon Life for $2.4bn in But many still believe the preferred option for the bank is a sale rather than a float, with some suggestions Nippon Life could still be circling. The decision by NAB follows a similar move by ANZ and CBA, which have offloaded most of their wealth management businesses already. Investment bankers watching on believe the NAB sale could also be the start of a string of asset sales that the retail banks could order as result of the royal commission. Meanwhile, Deutsche Bank Australian chief executive Anthony Miller has reshuffled the investment bank s staff in a move to increase its market share. Alex Cartel has been appointed co-head of the bank s investment banking operations alongside James Roth. The move follows the departure of Bruce MacDiarmid, who is shifting to Goldman Sachs to become the Australian chairman of its investment banking team. Cartel joined Deutsche Bank in 2000 as an associate. He was promoted to managing director in 2007 and was appointed head of energy, oil and gas in 2010 before being promoted to head of M&A in The future of Deutsche in Australia has been in question following the global bank s decision to pare operations around the world. In Australia, the bank cut a number of its equities staff as part of a global purge. The exact number of job cuts has yet to be revealed but is believed to be about 50. EDITED BY BRIDGET CARTER carterb@theaustralian.com.au SCOTT MURDOCH murdochs@theaustralian.com.au

23 The Australian, Australia Author: Bridget Carter Scott Murdoch Section: Business News Article type : News Item Classification : National : 94,448 Page: 18 Printed Size: cm² Market: National Country: Australia ASR: AUD 4,931 Words: 314 Item ID: Page 1 of 1 DATAROOM Latitude dusts off prospectus for IPO tilt The Latitude draft prospectus is being refreshed and a potential listing is on the cards for the third quarter. The non-bank consumer finance business that was GE Money, was due to float earlier this year but that was put on hold. Goldman Sachs, Deutsche Bank and UBS bankers retreated to the bench while the company considered its options. But after a couple of months off, the bankers and lawyers are as prospectuses and financial forecasts are being finalised. The numbers are due to be put to analysts next month. A listing in the second half of this year means Latitude can set its price off the 2019 forecasts, rather than DataRoom understands Latitude s net profit last year was $360 million and that the company is on track to hit $380m when it rules its books off in the next few weeks. Latitude announced a fortnight ago that it had signed a partnership with the JB Hi-Fi group to provide interest-free loans in 300 stores. The contract was won from HSBC and is expected to help Latitude grow revenue sharply. The response among fund managers towards Latitude is going to be intriguing in light of the collapse of the Prospa IPO nearly two weeks ago. Latitude is keen to emphasise its business is not small business lending and its borrowing rates are nowhere near the 40 per cent-plus levels that surprised observers when Prospa s prospectus was published. The growth projections of Latitude will be keenly examined and there is some speculation the company could be looking at UDC, the consumer finance business in New Zealand owned by ANZ. For fund managers, the more immediate concern is Viva Energy, which is about to hit its full marketing campaign. The cornerstone investors have locked in about $1m worth of support at 6.5 times EBITDA. The company s prospectus is due to be lodged tomorrow. EDITED BY BRIDGET CARTER carterb@theaustralian.com.au SCOTT MURDOCH murdochs@theaustralian.com.au

24 The Australian, Australia Author: Bridget Carter Scott Murdoch Section: Business News Article type : News Item Classification : National : 94,448 Page: 18 Printed Size: cm² Market: National Country: Australia ASR: AUD 15,803 Words: 386 Item ID: Page 1 of 2 DATAROOM EDITED BY BRIDGET CARTER carterb@theaustralian.com.au SCOTT MURDOCH murdochs@theaustralian.com.au Market mulls Macquarie role in Blackstone s $3.1bn IOF bid As Blackstone s $3.1 billion takeover bid for Investa Office Fund appears on the surface to be coming closer to fruition, there are still some in the market questioning what role Macquarie is playing in the whole situation. Some believe the motivation of the investment bank is to manage the IOF assets once they are under Blackstone s control, but others are wondering if there is more to it. One theory doing the rounds is that Macquarie, which is in negotiations to buy half of IOF s manager, could also be working up a rival takeover bid with superannuation funds and pension funds. As part of that mooted deal, Macquarie would contribute about 20 per cent of the equity and would draw a fee for managing the asset before selling down its equity interest. Others say that was once Macquarie s motivation but now it is focused on managing the assets for Blackstone, which is advised by UBS. Apparently, IOF initially approached another investment bank (believed to be Macquarie) to act as a defence adviser before calling on the services of JPMorgan. The move to secure management rights for IOF is an interesting one for Macquarie, which cut ties with its real estate funds management business after it was burnt during the global financial crisis more than a decade ago. But now could be a lucrative time for Macquarie to be involved in such a deal as pension funds globally continue to search for investment opportunities for large amounts of capital. As an aside, it is worth noting that the modular park owner Gateway Lifestyle initially went to Macquarie Capital to provide defence advice for a $635 million bid from Hometown America, although it is now working with Fort Street Advisers. It has some thinking that perhaps Macquarie could be a future Gateway suitor. The move to secure management rights is an interesting one for Macquarie

25 The Australian, Australia Author: Bridget Carter Scott Murdoch Section: Business News Article type : News Item Classification : National : 94,448 Page: 18 Printed Size: cm² Market: National Country: Australia ASR: AUD 15,803 Words: 386 Item ID: Page 2 of 2 IOF s portfolio composition by CBD SYDNEY MELBOURNE BRISBANE Total office market size v vacancy rate Sq m, million Vacancy rate (RHS) Market size (LHS) 5.4 FORECAST % $ IOF closed steady at $5.17 PERTH CANBERRA Source: The company, Bloomberg

26 The Australian, Australia Author: Michael Roddan Section: Business News Article type : News Item Classification : National : 94,448 Page: 21 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,375 Words: 594 Item ID: Page 1 of 1 Watchdog puts company directors on notice over disclosure of climate change risks MICHAEL RODDAN VALUATIONS The corporate regulator has urged Australian companies to undertake formal modelling of the risks posed by climate change to their businesses, warning directors may be unable to avoid legal non-disclosure breaches if they have failed to properly assess it. ASIC Commissioner John Price, speaking at a forum held by the Centre for Policy Development last night, said the Australian Securities & Investments Commission was focused on ensuring companies were correctly booking impairments and properly testing asset values. We are strongly focused on ensuring that, where the law requires it, companies disclose material climate change risks, Mr Price said. The legal liability presented by the risk of climate change has grown in prominence in Australia since last year, when the prudential regulator said climate change was a material risk to companies and warned that company directors could be liable if they failed to incorporate climate change risks into their financial models and disclose the risks they faced. The warnings came after a legal opinion provided by barrister Noel Hutley, SC, found many climate change risks would be regarded by a court as being foreseeable at the present time and Australian company directors who fail to consider climate change risks now could be found liable for breaching their duty of care and diligence in the future. The opinion was commissioned by the Centre for Policy Development and the Future Business Council, was considered by senior participants from Black- Rock, CBA, ANZ, Deutsche Bank, Qantas, ASIC, APRA and some of the largest superannuation funds. Mr Price last night told a forum in Sydney: The Hutley opinion highlights and reinforces the need for directors to adopt a probative and proactive approach in assembling the information reasonably required to inform their decision making in this area, Mr Price said. Depending on the circumstances, it may be difficult for directors who have not even considered the issue to later seek to invoke the business judgment rule. Mr Price said ASIC was currently probing the climate-related disclosures of the 300 largest listed companies in Australia and would publish its findings later this year. In some cases, climate change risk and opportunity will be material to a company s prospects and must be disclosed in a prospectus in a clear, concise and effective way to ensure investors are able to make a fully informed investment decision, he said. In addition to these, the law may require climate risk to be disclosed in other contexts such as by way of continuous disclosure announcement or elsewhere. CPD policy director Sam Hurley and fellow Kate Mackenzie said Australia s response to the Financial Stability Board s International Taskforce on Climate- Related Financial Disclosures had been sluggish. A recent report by Market Forces found that only about half of the 73 most climate-exposed companies in the ASX 200 identified climate change as a material risk in their latest reporting. An Ernst & Young report this year found only 12 out of 144 ASX-listed groups disclosed any climate analysis. International best practice is moving ahead rapidly, Mr Hurley said in a CPD report. He said some of the early attempts at scenario modelling by Australian companies have employed questionable climate transition assumptions and many are still overlooking physical impacts and providing little indication that these exercises have influenced decisions. As a developed economy with a large pool of pension assets, and exposures to transition and physical risks relating to climate change, we can and should do better, he said. In some cases, climate change risk and opportunity will be material to a company s prospects and must be disclosed. JOHN PRICE, ASIC

27 The Australian, Australia Author: John Durie Section: Business News Article type : News Item Classification : National : 94,448 Page: 28 Printed Size: 48.00cm² Market: National Country: Australia ASR: AUD 970 Words: 148 Item ID: Page 1 of 1 JOHN DURIE Too broad for a view Public hearings start in Sydney tomorrow to talk through the Productivity Commission s landmark report on superannuation and the usual suspects are lining up over the next three days. Industry Super, the Financial Services Council, the SMSF Association, Trustees Association et al will all be there except the Association of Superannuation Funds of Australia. A spokesman for the peak body said it was working with members to lodge its formal response in July and the hearings pre-empted this. Put another way, the membership of the association, which runs from life companies to industry funds to retail funds, is too diverse to get a cogent line of sight. New ASFA boss Martin Fahy has taken pot shots at different parts of the PC report but has political sensitivity in going any further. This may well explain why he is missing in action this week.

28 The Australian, Australia Author: Richard Gluyas Section: Business News Article type : News Item Classification : National : 94,448 Page: 21 Printed Size: cm² Market: National Country: Australia ASR: AUD 2,364 Words: 269 Item ID: Page 1 of 1 FOUR PILLARS RICHARD GLUYAS Word on the street As the financial services royal commission secures digs in Brisbane and Darwin for next week s fourth round of hearings on farm lending, an advanced party is spraying notices around the $2.6 trillion superannuation industry with its usual verve. The kick-off date for the fifth round of hearings on super is August 6, a month after nation s farmers and remote communities finish venting their spleen on the hapless banking industry. It s an opportunity for the micro-economy that s built up around the royal commission to actually pause and draw breath. Reserves of sympathy for the legal profession are in, in a word, low, and in inverse proportion to the surging billable hours, but as a lawyer himself, Hayne would have heard the chorus of pleas for mercy. The word on the street is that the notices dispensed to industry and retail super funds have been comprehensive and broad-ranging, more so than for previous rounds. For example, the commission is not only targeting the big industry funds; its interest extends well into the middle tier. Governance and board structures is a hot topic, as is the neverending war between the not-forprofit and for-profit funds over comparative investment performance. Last month s Productivity Commission report found notfor-profit funds have systematically outperformed their rivals. However, while retail funds dominated the tail of underperformance, there were also industry and corporate funds among the laggards. Notices sent out so far indicate the royal commission will also examine fees, and remuneration structures and insurance, including arrangements between the funds and life insurers. Marketing expenses in the industry fund sector will also come under scrutiny. gluyasr@theaustralian.com.au

29 Age, Melbourne Author: Chris Kohler Section: General News Article type : News Item Classification : Capital City Daily : 83,229 Page: 19 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 13,483 Words: 506 Item ID: Page 1 of 1 First home buyers caught in middle Chris Kohler Politics and economics can often be at odds, but rarely more so than with first home buyers. If politicians maintain the status quo, then policies aimed at helping first home buyers could actually start hurting them, and if economists get their way the double-edged sword of first home buyer assistance will be dumped outright. It s classic damned-if-you-do, damned-if-you-don t stuff. The federal government s Super Saver Scheme will tick into live territory in two weeks, with first home buyers then able to withdraw funds they had stored in their superannuation account in order to boost their deposit savings. But it, along with state-based stamp duty discounts, is another narrow, ostensibly hurt no one policy that will, at best, provide a sugar hit to first-home buyers, and, more likely, crowd the next wave of buyers out, according to new criticism from ANZ chief economist Richard Yetsenga late last week. He s not alone in his opinion. Meanwhile, First Home Buyers Australia founder Taj Singh says first home buyers need something anything that reduces the amount of cash they need to save in order to buy a home in Australia s now astronomically expensive cities. And they re both right. While mortgage lending to first home buyers hit a five-year high in January, largely credited to stamp duty relief for the group in NSW and Victoria, ANZ notes the boost is now following a well-worn path as it fades. The next wave of first home buyers will be crowded out as a result, Mr Yetsenga and senior ANZ economist Jo Masters wrote last Thursday. Historically, stamp duty discounts haven t resulted in any sustained improvement for first home buyers access to the market, the economists wrote. Helping one segment of the market may seem like the right thing to do, but the reality is that it offers little more than a sugar hit. Similar policies introduced in 2008 triggered a rush of first home purchasing, ANZ points out, but the impact was fleeting, with loan approvals for the group quickly falling below levels seen prior to the policy announcement. Buyers again flooded into the market when state governments announced the removal and reduction of these polices in 2012, but long-term affordability improvements were not seen. And ANZ is not alone in its criticism of first home buyer grants and stamp duty concessions, with the Grattan Institute earlier this year labelling them as misguided. Beyond their sizeable budgetary costs, giveaways to first home buyers have actually worsened housing affordability by further inflating demand for housing, Grattan Institute CEO John Daley and fellow Brendan Coates wrote in a report on housing affordability in March. ANZ, which has had its mortgage lending practices raked through by the financial services royal commission in recent months, says we need to recognise that the circumstances of our time are conspiring against simple solutions. Politics is all about simple solutions, while economics is all about complicated ones. Which will win? As far as first home buyers are concerned it mightn t be either. Chris Kohler is Domain s business editor.

30 Gympie Times, Gympie QLD Author: Anthony Keane Section: General News Article type : News Item Classification : Regional : 2,997 Page: 13 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 179 Words: 482 Item ID: Page 1 of 1 Hard times for property in self-managed super ANTHONY KEANE THE popular practice of putting property into selfmanaged superannuation using borrowed money is getting harder. Tougher lending rules and falling house prices in some cities are affecting SMSF property investors, and as research shows a slowdown in growth of new funds, investment and law specialists say it pays to know the rules. Solicitor Elizabeth Wang, from Townsends Business & Corporate lawyers, said leverage and lower tax rates made the strategy attractive but changes by regulator APRA had moved the goalposts, particularly for SMSFs buying off-the-plan properties. With APRA s new measures being in force, banks are now requiring SMSFs to have at least 40 per cent of the value of the property as a deposit in addition to the higher interest rates that banks are now charging, she said. On top of this, many lenders are not approving finance for a fund that does not have at least $200,000 initially, and sufficient liquidity in the fund after the property has been purchased. Loans for property investment in SMSFs have jumped tenfold in five years, largely because investors can avoid paying capital gains tax on their SMSF property if they sell it after retiring at age 60. The same property held outside super could attract a massive CGT bill. Labor is expected to ban the practice if it wins the next federal election, and research this month by Vanguard and Investment Trends found that the establishment rate of SMSFs had dropped to a 10-year low. It said regulatory uncertainty was seen as a key challenge for SMSFs, and more people were looking to make investments outside super. Because of this it will be important for investors to ensure their entire portfolio both inside and outside their SMSF is aligned to their investment goals, in addition to keeping an eye on the tax efficiency, said Vanguard head of corporate affairs Robin Bowerman. If SMSF property plans still make sense, the first step to setting up a SMSF is building a team of financial professionals. Bell Direct CEO Arnie Selvarajah said the SMSF Association s find a specialist tool could help, and people needed to decide how many trustees their fund would have. You can opt to be a sole trustee or may want to include your spouse or other family members. You can also opt to have a corporate trustee, he said. The next step is having a trust deed prepared to establish your SMSF s rules, usually with legal advice, registering it with the Australian Taxation Office and obtaining a Tax File Number and Australian Business Number. Your fund will then be required to lodge an annual tax return, have an annual audit prepared and pay an annual supervisory levy, Mr Selvarajah said. SMSF trustees are required by law to prepare and implement an investment strategy for their fund and review it on an ongoing basis. It is not a set and forget strategy.

31 The Australian, Australia Author: Anthony Klan Section: General News Article type : News Item Classification : National : 94,448 Page: 2 Printed Size: 99.00cm² Market: National Country: Australia ASR: AUD 2,001 Words: 265 Item ID: Page 1 of 1 O Dwyer resists industry push to gut super-fee cap ANTHONY KLAN Financial Services Minister Kelly O Dwyer has vowed the federal government will push ahead with its plans to cap fees on low-balance superannuation accounts and will not bow to industry pressure to create a carveout or otherwise water down the proposal. Speaking to Sky News Business s Ticky Fullerton last night, Ms O Dwyer said she would introduce to parliament this week legislation that would cap total annual fees on low-balance super accounts at 3 per cent of an account s total value. That cap, to apply to accounts with balances of under $6000, would include all fees, and would not allow for indirect fees to be carved out, as some in the industry had sought in a move that would render the changes largely useless. I am going to be introducing legislation this week that will ensure we have a 3 per cent cap for administration fees and also investment fees, as we said in the budget, Ms O Dwyer said. That will also reflect indirect fees. I don t care whether it s an industry fund or a retail fund, I m going to do the right thing for consumers and for people who are saving for retirement. Segments of the super industry have been lobbying against the fee cap or urging that any cap not include indirect fees. Industry Super Australia has said it fully supports the proposed 3 per cent cap. However, AMP and most of nation s biggest banks, who control most of the super funds in the $603 billion retail sector, have either declined to comment or indicated they support a carve-out for indirect fees. BUSINESS P17

32 Age, Melbourne Section: Letters Article type : Letter Classification : Capital City Daily : 83,229 Page: 17 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 9,846 Words: 260 Item ID: Page 1 of 1 AND ANOTHER THING The ABC The Liberals will never sell the ABC just like they d never ever introduce a GST. Steve Melzer, Hughesdale Memo to the government: the ABC is not yours to sell. It belongs to the people of Australia, and we want to keep it. Graham Reynolds, Ballarat North Mitchell Collier should start watching B1 and B2 again, because it sounds like he s still a fan of all things bananas. Caroline Stinear, Berwick Young Liberals want to privatise the ABC, but senior ministers say never. Why is it always to the future with the Coalition? Jane Edwards, Peterhead, SA Could you please postpone the sale of the ABC until I die! Heather Frith, Essendon Selling off the ABC will be another Telstra disaster. Bruce Dudon, Woodend Liberals, you do not own the ABC. It belongs to the people and I m not selling my share. Terry Malone, Warburton Furthermore John Brumby, (The Age, 18/6) what part of our democracy do you think we should trade in for a better deal with China? Jerry Koliha, South Melbourne Amanda Vanstone (Comment, 18/6) could have been writing about Donald Trump as well as One Nation. Michael Brinkman, Ventnor How s that Age of Entitlement going for you Joe? Ian Millar, Mordialloc If the government politicians say they will not privatise the ABC, why didn t any of them speak against the motion at their conference? Lindsay Donahoo, Wattle Glen We are a broad church, say the Liberals, and two to one our federal council members have voted to sell the ABC. Pat Lord, Sale

33 Border Mail, Albury-Wodonga Section: General News Article type : News Item Classification : Regional : 13,519 Page: 17 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 907 Words: 352 Item ID: Page 1 of 1 Huawei says security risk claim ill-informed CHINESE telecommunications company Huawei Technologies Co Ltd has gone on the offensive against Australian claims it poses a security risk, issuing an open letter to the government saying that view was ill-informed. There has been much speculation about Huawei in recent weeks as Australia prepares to announce a tender for its massive 5G mobile telecommunications rollout, with local media reporting the country s spy agencies have advised against including the company. Australia, like the United States, worries Huawei is de facto controlled by China, raising fears that sensitive infrastructure will fall into the hands of Beijing. Recent public commentary around China has referenced Huawei and its role in Australia and prompted some observations around security concerns, Huawei s chairman and two board directors wrote in a letter to government that the company released to the media on Monday. Many of these comments are ill-informed and not based on facts. The public letter from Huawei executives, which was accompanied by a fact sheet, comes as Australia s relationship with top trading partner China faces a testing two weeks. Canberra is preparing to pass laws designed to limit Beijing s influence in domestic affairs amid pressure on some of its fastest growing exports, a stance that has led to deteriorating relations between the two countries. Huawei has repeatedly denied the allegations of Beijing control, and in the letter, dated Friday, again insisted it is an independent company. In each of the 170 countries where we operate, we abide by the national laws and guidelines, Chairman John Lord and board directors John Brumby and Lance Hockridge wrote in the letter. To do otherwise would end our business overnight. The executives noted the company s 5G investments in Britain, Canada and New Zealand where it said the respective governments had taken up its offer to evaluate the company s technology to make sure it abided by cybersecurity protocols. They said the company had offered to build an evaluation and testing centre as part of its Australia 5G proposal to ensure independent verification of our equipment right here in Australia. Huawei was banned in 2012 from supplying Australia s massive national broadband network.

34 Morning Bulletin, Rockhampton QLD Author: Michelle Gately Section: General News Article type : News Item Classification : Regional : 9,376 Page: 1 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 2,808 Words: 1540 Item ID: Page 1 of 6 IWASA VICTIM OF FINANCIAL HOMICIDE Peter Comino and the CBD Apartments Photo: Allan Reinikka ROK080618acbdapar In 2010 Rockhampton property developer Peter Comino lost $14 million following ruthless decisions by the ANZ Bank. Now he s been invited to send a submission to the financial services royal commission. Here is his horror story, Pages 4-5 I VE LOST CLOSE TO EVERYTHING BAR THE SHIRT ON MY BACK PETER COMINO

35 Morning Bulletin, Rockhampton QLD Author: Michelle Gately Section: General News Article type : News Item Classification : Regional : 9,376 Page: 1 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 2,808 Words: 1540 Item ID: Page 2 of 6 Banking blunders cost me $14 million and my health As the financial services royal commission uncovers more horror stories, Peter Comino tells how ANZ bank decisions destroyed his life MICHELLE GATELY michelle.gately@capnews.com.au PETER Comino once boasted a $14-million property portfolio and was poised to lead Rockhampton s growing foodie culture with a high-rise boutique apartment complex and coffee shop. But in the wake of the Global Financial Crisis in 2008, Mr Comino s bank panicked with low capitals in reserve and pulled their support. This chain of events forced him into bankruptcy. Mr Comino has every reason to feel bitter, yet he is calm and softly spoken when explaining his financial homicide. In 2010, the CBD Executive Apartments on Bolsover St was set to become the centrepiece of Mr Comino s development portfolio. But he was systemically forced into bankruptcy while it was still in final stages of construction, losing over $14 million as the bank quickly sold off his property portfolio. Mr Comino also lost his professional real estate and building licences, and consulting positions with major national and international companies. I ve lost close to everything bar the shirt on my, Mr Comino said, speaking to The Morning Bulletin at the cafe which should have been his greatest success story. I m starting again, but I will not shut up. When asked how he has managed to maintain such a positive outlook in the face of devastating personal losses, he answers quickly. I ve got two magnificent sons, that s my kryptonite, he said. The collapse of his career has also taken its toll healthwise. Mr Comino admits he holds little faith in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry uncovering all the facts, but believes the terms of reference needs to be expanded and big bank CEOs called to answer tough questions. Australian banks have paid more than $1 billion in fines and compensation for rorting their clients since the Global Financial Crisis. Among these scandals there have been accusations of rate rigging, forged signatures, overcharging fees, and the creation of unauthorised investment accounts. The big four (Westpac, ANZ, Commonwealth Bank and NAB) have all been implicated in various dodgy financial practices. Mr Comino says the bank s chosen receivers and other agencies should also be investigated by the royal commission. Mr Comino believes he was also a victim of the ruthless stop-at-nothing drive to maximise bank capital reserves at the time of the global financial crisis. In 2009, Mr Comino had built his property portfolio under Sypcom Pty Ltd to include the $4.7-million City Ville Apartments, a $1.2-million residential property on Victoria Pde, and the $6.2-million property which would become the CBD Executive Apartments. In addition to this, his management rights equated to approximately 45 per cent equity. Mr Comino had seen the potential to capture Rockhampton s growing foodie culture in a dining space supplementing his short-term apartments. On October 20, 2009, Mr Comino was sent an stating there was a $217, remaining balance from the previous draw on his construction loan and the loan was not fully drawn yet. The next day he received a fax stating the same information, however, it included an additional paragraph stating his overdraft account had an available balance of $103, which could be used for any overruns. This correspondence was in response to Mr Comino s request for clarification about available balances, as his quantity surveyor s calculations weren t on par with the bank s progress claim. They lulled me into a false sense of security, he said. My quantity surveyor s figures showed I had less money, but I wanted clarity from the bank. Construction was being finalised and Mr Comino be-

36 Morning Bulletin, Rockhampton QLD Author: Michelle Gately Section: General News Article type : News Item Classification : Regional : 9,376 Page: 1 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 2,808 Words: 1540 Item ID: Page 3 of 6 lieved, based on this information from ANZ, he had satisfactory funds to finish. He claims he could not make any further withdrawals as the bank falsified his accounts to create a credit default. Mr Comino claims the bank deliberately gave him misleading information about the loan to allow it to progress using trades and supplies for a further four months. In January 2010, the ANZ credit department met with Mr Comino and asked him what he was going to do should the funds run out. They said they would not pay tradespeople from the proceeds of the sale should the development be sold. Later that month Mr Comino was told all the funds had been used and BDO Kendalls would conduct a forensic investigation. Mr Comino agreed, but was reluctant to accept their fees of roughly $26,000. He recently found out ANZ also engaged his personal accountant to prepare fully bound documents at his cost for a meeting with the bank s credit department. Facing increasing anger from contractors and suppliers on the apartment building, Mr Comino was under pressure to sell. ANZ had agreed to fund the project at $5.3 million (plus a standalone facility of $200,000 for GST) and within six weeks, Mr Comino had obtained an unsigned offer for $5.5 million for the Rockhampton apartment complex. The offer included $4 million cash and land worth $1.5 million with approved development applications at Mackay, which was not income producing. The offer collapsed when Mr Comino disclosed, as required by Queensland property laws, anything which adversely affected the value of the property which must be disclosed. In this case the disclosure was the ANZ funding withdrawal, where non-payment would have affected workmanship, and plant and equipment warranties. The same person later bought the complex for $4.5 million, comprised of $3.3 million cash and the Mackay development site. Mr Comino said the bank failed in its obligation to secure the best price for both parties in accordance with Section 420A of the Corporations Act. He said they did not reject offers well below the realistic value (and the amount owed). Mr Comino said the property should have been auctioned to achieve a sale price closer to the true value. In August 2012, the completed 4.5-star, 18-room boutique motel sold for $6 million freehold. The value of plant and equipment, goods and chattels was not disclosed. Mr Comino took his concerns to the Australian Securities and Investment Commission (ASIC) on several occasions, the first in August He told them ANZ had given misleading information to create an event to activate a systemic Credit Default Swap attached, but not disclosed with the 90-day bill swap rate and lending facility. However, he was told in a letter from ASIC that the regulator s focus must be to address systemic misconduct in the public interest. ASIC s role does not generally extend to taking action against licensees on behalf of individuals in relation to their private disputes, the letter stated. Last month, ASIC reported a deluge of customer complaints and bank breach notices in the wake of the Royal Commission but has not disclosed what complaints were made during the GFC. The corporate regulator also admitted they only learned of some banking misconduct, such as improper use of children s accounts and charging fees to dead clients, through media reporting on the Royal Commission. Mr Comino said ASIC should investigate the use of Credit Default Swaps used in 90-day bills by banks, which was central to his lending facility. They will always now celebrate my name as a former bankrupt, Mr Comino said. I want the past and present CEOs dragged, kicking and screaming, into the Royal Commission. An ANZ spokesperson said the bank did not comment on specifics of individual customers banking details. ANZ does not believe it has a case to answer in this matter and totally rejects the customer s allegations, they said. Peter Comino has been invited to provide a submission to the financial services royal commission. He is currently working on that statement. Yesterday The Australian reported that a key part of the commission's focus during its special Brisbane hearings next week would relate to 2009 when the ANZ and the Commonwealth Banks brutally cracked down on what they saw as impaired or high risk loans to specific North Qld farmers, after the banks had taken over the loan book of the Landmark group. But we hadn t done anything wrong, we d made all our payments, but our budgets were all changed and they put us into default, one of the affected farmers, John Wharton, told The Australian. All the major banks contacted by the Australian declined to comment.

37 Morning Bulletin, Rockhampton QLD Author: Michelle Gately Section: General News Article type : News Item Classification : Regional : 9,376 Page: 1 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 2,808 Words: 1540 Item ID: Page 4 of 6 LOST CLOSE TO EVERYTHING BAR THE I VE SHIRT ON MY BACK. I M STARTING AGAIN, BUT I WILL NOT SHUT UP. PETER COMINO I WANT THE PAST AND PRESENT CEOS DRAGGED, KICKING AND SCREAMING INTO THE ROYAL COMMISSION. FLASHBACK: Owner/builder Peter Comino (left) and Paul Mills discuss the upmarket features and finishes that will go into the new five-star apartment development in Bolsover St. Photo: TAMARA MACKENZIE

38 Morning Bulletin, Rockhampton QLD Author: Michelle Gately Section: General News Article type : News Item Classification : Regional : 9,376 Page: 1 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 2,808 Words: 1540 Item ID: Page 5 of 6 The CBD Apartments in Rockhampton. Photo: Allan Reinikka ROK080618acbdapartment1

39 Morning Bulletin, Rockhampton QLD Author: Michelle Gately Section: General News Article type : News Item Classification : Regional : 9,376 Page: 1 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 2,808 Words: 1540 Item ID: Page 6 of 6 MILLIONS LOST: In 2010, the CBD Executive Apartments on Bolsover St, Rockhampton, was set to become the centrepiece of Peter Comino s development portfolio. Photo: Allan Reinikka ROK080618acbdapartment2

40 News Mail, Bundaberg QLD Section: General News Article type : News Item Classification : Regional : 6,176 Page: 2 Printed Size: 22.00cm² Market: QLD Country: Australia ASR: AUD 20 Words: 57 Item ID: Page 1 of 1 TRENDING NEWS Corp has teamed up with QSuper to explore the differences in financial fitness between Queensland's men and women. Data gathered by one of Australia's largest superannuation funds, QSuper, showed almost twice as many women as men took the time to test their financial fitness in a recent Wealth iq mobile check. Full report at

41 News Mail, Bundaberg QLD Section: Letters Article type : Letter Classification : Regional : 6,176 Page: 14 Printed Size: 51.00cm² Market: QLD Country: Australia ASR: AUD 47 Words: 130 Item ID: Page 1 of 1 Leave ABC alone PROPOSALS from the Liberal Party to privatise the ABC should send shivers down the spine of all Australians. The ABC remains the only source of unbiased news, good Australian drama, children s and rural programs, and private ownership would dramatically change that content, with the advertisers views and profits trumping public interest. The privatisation of Telstra, Commonwealth Bank and power assets are proof that once our governments lose control of key assets the people are then ripped off and disadvantaged by the new owners. It should not take a Royal Commission to convince people of the fallacy of privatisation being better than public ownership, but the facts are often disguised by clever political rhetoric from those with something to gain from these selloffs. MAX TANZER Elliot Heads

42 News Mail, Bundaberg QLD Section: General News Article type : News Item Classification : Regional : 6,176 Page: 11 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 881 Words: 657 Item ID: Page 1 of 2 A taxing time The taxpayer Income tax is the most significant stream of revenue in the tax system, consisting of three main types: personal earnings, business earnings, and capital gains. The Federal Government has the authority to tax Australian residents on income. Income tax is applied to an individual s taxable income and is paid on all forms of earnings. This includes wages from your job, bonuses, allowances, profits from business and returns from investments such as rent, or when a house or shares are sold. HAVE you ever wondered why people pay taxes and where the money goes? Each of the three levels of government in Australia (federal, state and local) has responsibility for providing certain services to the community such as education, hospitals, social welfare, defence and roads. They are able to do this from the revenue they collect through taxation. There are a number of different taxes within the tax system used to collect revenue from individuals and businesses. Systems of tax Taxes have a range of rates, thresholds and loads for different kinds of taxpayers. In general, we describe a tax as progressive or regressive. Progressive taxes Income tax for individuals is a progressive tax. The higher the income, the higher the percentage of tax paid. Regressive taxes The departure levy on passengers at airports is a regressive tax. The same dollar amount of tax is paid, regardless of the level of income. Taxpayers also pay a Medicare levy of 2% of their taxable income. A CONSUMING TAX GOODS and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. The tax was introduced on July 1, All the revenue raised by the GST is distributed to the states. To calculate the GST included in the price of goods and services you have to divide the price by 11. For example $330/11=$30. To work out the price without GST you have to divide the amount by 1.1. For example $330/1.1=$300.

43 MORENEWSFORKIDS News Mail, Bundaberg QLD Section: General News Article type : News Item Classification : Regional : 6,176 Page: 11 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 881 Words: 657 Item ID: Page 2 of 2 IN THE NEWS Tax to buy bushland IT S an Australian-first a local government has created a levy specifically to help a species. Gold Coast households will pay $3 a week koala tax from July this year, in a bid to buy land to protect their habitat. It s a bold way to address the problem faced by the koala population on the Gold Coast but it may well save the species from further decline. The $3 per week koala levy will help raise $10.85 million and be used to buy important koala habitats. Some money would also go towards putting in protective fencing in areas that are of high risk for koalas. CHECK IT OUT A super return IT S been 14 years since The Incredibles hit the big screen but the Parr family, with all their amazing powers, have returned in a campaign to bring superheroes. In Incredibles 2, Helen Parr (Elastigirl) takes the lead in an effort to reinstate those with superpowers who have been forced by the authorities to permanently keep their identities secret. While Helen is away on her quest to make Supers legal again, Bob Parr (Mr Incredible) takes care of their three children Violet, Dash and baby Jack-Jack, whose superpowers are about to be discovered. The mission is derailed when a new villain emerges with a brilliant and dangerous plot that threatens everything. But the incredible Parr family, with Frozone by their side, take on the challenge of defeating the scoundrel. Written and directed by Brad Bird, Incredibles 2 opened last week and is worth a visit to your local cinema to see. s. arly kidsnews.com.au the ATO our tax return is complet year approximately 870,000 people claim the maximum work is no most peop Wordy news ATO The Australian Tax Office (ATO) administers revenue systems tax, superannuation and excise on behalf of the Australian Government. Did you know? You can earn up to $18,200 in a financial year and not pay tax. This is known as the tax-free threshold, after which the tax rates kick in.

44 Queensland Times, Ipswich QLD Section: Letters Article type : Letter Classification : Regional : 6,815 Page: 17 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 98 Words: 304 Item ID: Page 1 of 1 Great Teacher s name used for political gain CONTINUING the great debate, Glenda Carroll, letters QT, June 14, the religious leader known to many as The Great Teacher, on the subject of money and whether taxes should be paid in coin, asked, in reply, whose head appeared on the coinage of the time and said Render unto Caesar what is Caesar s, and render unto God what is God s. The world of politics seems to be the world of money and those who take the name of that religious leader into that world of politics in pursuit of votes for one side or another of that particular game rightly invoked the ire of Gough Whitlam. Those who identify themselves with the name of this leader in this way are getting above themselves and will never approach the perfection offered to them as an example by this man. They take his name and message in vain by seeking to self-righteously distinguish themselves from others in the political debate in this way. Many people tend to be repulsed by this and so lose many lessons which might otherwise be learned from this Great Teacher. So, no, I am not any such a Christian, despite the allusion in Glenda s letter. On the subject of superannuation and the idle rich, should there be any blind faith in those, for example, in the banking industry who are putting value into those super shares by nefarious means, by deception and oppression of the public, as shown by the Royal Commission now seeking to establish the truth on the matter? The various Caesars were false gods, in their time, and money is a false subject for faith, arguably a false religion, in fact causing much harm when superannuant shareholders turn a blind eye to the damage being done to their neighbours with said shareholders money? JAMES HILL Redbank Plains

45 Australian Financial Review, Australia Author: Joanna Mather Section: General News Article type : News Item Classification : National : 44,635 Page: 9 Printed Size: cm² Market: National Country: Australia ASR: AUD 3,418 Words: 446 Item ID: Page 1 of 1 Government should help retiree over super tax slug, says adviser Joanna Mather Assistant Finance Minister David Coleman should grant retiree Colin Ward an "act of grace" payment after the Tax Office took his superannuation savings for breaching the contributions limit, Tax Institute senior tax counsel Bob Deutsch says. Mr Ward was given a $209,000 penalty for breaching limits on how much post-tax money can be deposited into super. The penalty was the equivalent of all Mr Ward, 71, had saved in super since immigrating to Australia as a Ten Pound Pom. Contributions limits exist to keep the cost of the super system in check, but Mr Ward's punishment was issued under a harsh penalty regime that has since been repealed by the Tumbull government Professor Deutsch said Tax Commissioner Chris Jordan and Administrative Appeals Tribunal deputy president Gary Humphries had no option but to have upheld the penalty imposed on Mr Ward because it was in accordance with the law. However, the government could help, he said. "In my view the minister should provide relief to this taxpayer who has obviously made an inadvertent catastrophic mistake in respect of a law which has since been changed to avoid such catastrophic outcomes in the future," Professor Deutsch said. "I would have thought this is a classic case for such relief." In a decision earlier this month, Mr Humphries said the case did not satisfy the grounds upon which Mr Jordan could have allocated excess contributions to another financial year, therefore negating the breach. "I urge the commissioner to reconsider the fairness of enforcing the penalty on Mr Ward," Mr Humphries said. "If he will not, I reiterate my commendation to the Minister for Finance to consider an act of grace payment." The power to approve such payments is delegated to Mr Coleman. Under the Public Governance Performance and Accountability Act, he can make payments if there are special circumstances. Mr Ward would need to apply for relief. Professor Deutsch said the Ward case was clearly sad and called for some relief, but the suggestion it should come from the ATO was misguided. "In relation to the imposition of the liability, the law is very clear to the effect that the commissioner has a discretion to deal with the issue but only if there are special circumstances and the exercise of the discretion would be consistent with the Act," he said. "Both the commissioner and the AAT have concluded that these conditions have not been met, so the discretion cannot be exercised." Professor Deutsch said another avenue that could have been explored was whether the commissioner was able to release Mr Ward from the debt. But again, the capacity to do so was tightly constrained by law, he said.

46 Australian Financial Review, Australia Author: Patrick Durkin Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 29 Printed Size: cm² Market: National Country: Australia ASR: AUD 3,863 Words: 474 Item ID: Page 1 of 1 Investor lash against 'politically correct' boards lacking skills Governance Patrick Durkin Top company boards are too focused on political correctness, gender diversity and have appointed too many lawyers, accountants and friends from the directors' club instead of executives with operational experience, leading institutional investors, analysts and fund managers warn. Recruiters Heidrick & Struggles have spoken with more than 50 executives from the investment community including a mix of analysts, chief investment officers, responsible investment officers and proxy advisers, as well as a handful of chairmen and corporate directors. Their report exposes serious concerns from investors about top company boards. The key finding of the Heidrick & Struggles report is there is a lack of relevant business knowledge at board and chief executive level. Research by recruiters Watermark has shown that less than 20 per cent of top 300 directors have direct industry experience, while close to 50 per cent have a legal or financial ground. "We need more chairs and directors who understand the business. And appointing consultants to the CEO position is an experiment that has demonstrably failed," one leading fund manager said, speaking honestly on the condition of anonymity. One top 200 company chairman interviewed added:"we need directors who've run businesses, who are agile and decisive, and who understand that often 100 per cent perfection isn't 'commercial' - sometimes you just need to get things done." The focus comes after the Hayne royal commission triggered a bloodletting on the AMP board and a report from the prudential regulator revealed failings by the board of CBA. The scandals have sparked a lash against boards, including veteran fund manager Peter Morgan warning that boards are "massively over-rated", former Pacific Brands and Bonds CEO John Pollaers warning too many directors are "surfing boards" to enhance their own reputation and Diane Smith- Gander warning that "we have too many part-time directors". Investors said the recent spotlight on boards has seen the risk weighting for board performance rise from 10 per cent to 15 per cent or above. Incoming AMP chairman David Murray - not known for his political correctness - has hinted that skills and experience will be his priority in picking his board to help get the financial wealth giant out of trouble. "We've got a position now where we've got to appoint people and manage and work through a crisis, so we're going to need some people who've already got maybe deeper experience than you might be able to use normally to get through that effectively," he said. Women accounted for 30 per cent of board seats across Australia's 100 biggest companies for the first time, according to the latest quarterly diversity study by the Australian Institute of Company Directors, and female appointments have been driven by the AICD, industry super funds and new proposed ASX corporate governance gender targets. H&S Partner David Scambler said investors are agnostic on gender and more concerned about capability.

47 Newcastle Herald, Newcastle NSW Section: Letters Article type : Letter Classification : Regional : 23,625 Page: 16 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 2,510 Words: 455 Item ID: Page 1 of 1 SHORT TAKES KATHLEEN Steele, Letter of the Week, highlights the enormous damage of no frequent, fast train services with global Sydney (Letters, 13/6). The letter gets the thumbs up from David McTaggart, (Short Takes, 16/6). Yet Bob Hawes, chief executive of Hunter Business Chamber, does not include the desperate need to fill this 30-year void, for our business sector, ( Capacity building must be focus of state budget, Newcastle Herald, 16/6). Instead, nationally-vital infrastructure has been weakened. The nation's most Australian city, a marketer's dream, is now off the rail network. No wonder the state government didn't involve Infrastructure Australia. Graeme Tychsen, Rankin Park BEFORE our government votes on the proposed tax cuts, should our politicians declare if they are going to benefit and by how much they or their immediate family are going to be better from these tax cuts if their income improves substantially? Should they disqualify themselves from voting because they have a conflict of interest? George Williams, West Wallsend JOHN McLennan (Short takes, 15/6) is entitled to his poor opinion of John Howard as a prime minister and I suppose many Howard haters would agree with him. However, to suggest he squandered the royalties from the mining boom is a bit rich. Between 1996 and 2006, his government completely paid off the $96 billion Commonwealth debt it had inherited from the previous Labor government and left the incoming Kevin Rudd team with a clean slate. During the same period, unemployment fell from 8.1 per cent to 4.1 per cent and we would no doubt like to report similar figures today. Howard probably went a year too long without handing over the reins to Peter Costello, but to suggest he was the worst prime minister ever is a little hard to justify. David Stuart, Merewether Exhibition, however, it won't give a cent to permanently fixing Stockton beach. Maybe we should call them the Sydney government. Phillip Mallows, Stockton WHAT an astounding revelation by Keolis! ( Keolis seeks new type of data news, Herald, 15/6). Opal data alone does not give a true indication of the number of people catching the bus. However, the same Opal numbers arguments were used to slash and burn the previous network. Smoke and mirrors, call it what you like, but the privatisation of Newcastle Transport has been anything but successful or seamless, no matter what Our Glad says. Tony Lawler, Newcastle JOHN McLennan (Short Takes, 15/6) says John Howard was the worst prime minister. Obviously he doesn't remember Gillard or Rudd. Ian King, Warners Bay THE POLLS SHOULD it be cheaper for companies to buy new glass products than to use a recycled alternative? Yes 16.92%, No 83.08% SO the NSW government can allocate $50 million to upgrade the Tutankhamen

48 Gladstone Observer, Gladstone QLD Section: General News Article type : News Item Classification : Regional : 3,301 Page: 19 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 95 Words: 0 Item ID: Page 1 of 1 Super trustees be careful of the TBAR THE ATO reminds us that it requires self-managed super fund (SMSF) trustees to use the superannuation transfer balance account report (TBAR) to advise it when a transfer balance account event occurs. SMSF trustees are required to report the following income streams, such as pensions, in existence before July 1, Or any of the following events that occur on or after July 1, 2017: super income streams that have commenced in retirement phase. Limited recourse borrowing arrangement payments. member removals or changes. compliance with a commutation authority issued by the Commissioner. personal injury contributions. super income streams such as pensions that stop being in the retirement phase. The ATO will now only require the member s June 30, 2017 accumulation phase value to be reported on the fund s TBAR when the member is also in receipt of a capped defined benefit pension or a flexi pension from the fund. While the TBAR for pre-existing pension phase pensions as at June 30, 2017 is still due by July 1, 2018, the ATO will not be using the APV information to calculate a member s total super balance until mid-september This date is likely to sneak up on many Trustees. Clearly some key dates are coming up fast and trustees, not their accountants, will be held responsible for such lodgements. Contact the team at Sothertons on

49 Gladstone Observer, Gladstone QLD Author: Anthony Keane Section: General News Article type : News Item Classification : Regional : 3,301 Page: 15 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 412 Words: 409 Item ID: Page 1 of 2 Pre-purchase for life s big certainty ANTHONY KEANE HOW S your end-of-financial year to-do list looking? Tax deductions done? Check. Superannuation sorted? Check? Grave site pre-purchased? Whaaaaaaaat? Prepaying for funeral sites is growing in popularity as Australians become more willing to discuss death. It can help retirees potentially boost their pension payments, and might even be a successful though weird investment. Both in their 60s, Rossana and Michael Parletta recently pre-purchased their burial site after speaking with a friend who had done the same. My husband and I decided to purchase our burial site ahead of time to make it easier for our children when we are no longer here, said Mrs Parletta, 63. She said she thought most people were unaware of pre-purchasing memorial sites. It s important to start thinking about your funeral arrangements how you d like to go and where you d like to be buried. Site costs vary between states and cemeteries but as a guide, a 50-year lease on a cremation garden site can cost around $5000, a burial site from $6000 and a mausoleum from around $30,000. And if you change your mind, there may be a chance to transfer it to someone else, sell it to the cemetery, or potentially profit from selling it later if the site s value increases. Pensioners can potentially boost their income by reducing their assets counted under Centrelink s assets test if they put money into their future grave. The Department of Human Services does not assess burial plots, no matter how much they cost. You don t need to tell us if you own one, its website says. Robert Pitt, chief executive of Adelaide Cemeteries Authority, said cemetery fees could be in addition to the $12,750 that was exempt from assets testing by people who prepaid funerals or bought funeral bonds. He said Australians had become more willing to make plans for the end of their lives to ease the financial burden on family members. People are taking control of their funeral, and choosing their final resting place so they can be buried alongside family or friends, or in a specific location of the cemetery. Mr Pitt said people who prepaid funeral costs should read the fine print and understand what they were paying for. Know where your funeral funds are being held in the event a funeral director or cemetery is sold or goes out of business, he said. Tell a family member or friend your wishes, and what you have purchased.

50 Gladstone Observer, Gladstone QLD Author: Anthony Keane Section: General News Article type : News Item Classification : Regional : 3,301 Page: 15 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 412 Words: 409 Item ID: Page 2 of 2

51 MORENEWSFORKIDS Gladstone Observer, Gladstone QLD Section: General News Article type : News Item Classification : Regional : 3,301 Page: 17 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 636 Words: 657 Item ID: Page 1 of 2 A taxing time HAVE you ever wondered why people pay taxes and where the money goes? Each of the three levels of government in Australia (federal, state and local) has responsibility for providing certain services to the community such as education, hospitals, social welfare, defence and roads. They are able to do this from the revenue they collect through taxation. There are a number of different taxes within the tax system used to collect revenue from individuals and businesses. The taxpayer Income tax is the most significant stream of revenue in the tax system, consisting of three main types: personal earnings, business earnings, and capital gains. The Federal Government has the authority to tax Australian residents on income. Income tax is applied to an individual s taxable income and is paid on all forms of earnings. This includes wages from your job, bonuses, allowances, profits from business and returns from investments such as rent, or when a house or shares are sold. Systems of tax Taxes have a range of rates, thresholds and loads for different kinds of taxpayers. In general, we describe a tax as progressive or regressive. Progressive taxes Income tax for individuals is a progressive tax. The higher the income, the higher the percentage of tax paid. Regressive taxes The departure levy on passengers at airports is a regressive tax. The same dollar amount of tax is paid, regardless of the level of income. Taxpayers also pay a Medicare levy of 2% of their taxable income. A CONSUMING TAX GOODS and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. The tax was introduced on July 1, All the revenue raised by the GST is distributed to the states. To calculate the GST included in the price of goods and services you have to divide the price by 11. For example $330/11=$30. To work out the price without GST you have to divide the amount by 1.1. For example $330/1.1=$300. IN THE NEWS Tax to buy bushland IT S an Australian-first a local government has created a levy specifically to help a species. Gold Coast households will pay $3 a week koala tax from July this year, in a bid to buy land to protect their habitat. It s a bold way to address the problem faced by the koala population on the Gold Coast but it may well save the species from further decline. The $3 per week koala levy will help raise $10.85 million and be used to buy important koala habitats. Some money would also go towards putting in protective fencing in areas that are of high risk for koalas. CHECK IT OUT A super return IT S been 14 years since The Incredibles hit the big screen but the Parr family, with all their amazing powers, have returned in a campaign to bring superheroes. In Incredibles 2, Helen Parr (Elastigirl) takes the lead in an effort to reinstate those with superpowers who have been forced by the authorities to permanently keep their identities secret. While Helen is away on her quest to make Supers legal again, Bob Parr (Mr Incredible) takes care of their three children Violet, Dash and baby Jack-Jack, whose superpowers are about to be discovered. The mission is derailed when a new villain emerges with a brilliant and dangerous plot that threatens everything. But the incredible Parr family, with Frozone by their side, take on the challenge of defeating the scoundrel. Written and directed by Brad Bird, Incredibles 2 opened last week and is worth a visit to your local cinema to see. kidsnews.com.au

52 Gladstone Observer, Gladstone QLD Section: General News Article type : News Item Classification : Regional : 3,301 Page: 17 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 636 Words: 657 Item ID: Page 2 of 2 the ATO our tax return is complet ses. cularly year approximately 870,000 people claim the maximum mount under the Wordy news work is not most peopl She said per ATO The Australian Tax Office (ATO) administers revenue systems tax, superannuation and excise on behalf of the Australian Government. Did you know? You can earn up to $18,200 in a financial year and not pay tax. This is known as the tax-free threshold, after which the tax rates kick in.