Super system strong despite misleading analysis saying otherwise. Daily Mercury, Mackay QLD, General News, Anthony Keane

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MON 16 JULY 2018 Mediaportal Report Super system strong despite misleading analysis saying otherwise Money Management by Hannah Wootton 282 words ASR AUD 341 Industry Super Australia - Internet ID:

1 MON 16 JULY 2018 Mediaportal Report Super system strong despite misleading analysis saying otherwise Money Management by Hannah Wootton 282 words ASR AUD 341 Industry Super Australia - Internet ID: Read on source site 8:35 AM N/A UNIQUE DAILY VISITORS, N/A UNIQUE DAILY VISITORS Short-term super surges are scary, so staying put pays off Daily Mercury, Mackay QLD, General News, Anthony Keane Page words ASR AUD 175 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 412 word(s), ~1 min 7,738 CIRCULATION Short-term super surges are scary, so staying put pays off News Mail, Bundaberg QLD, General News, Anthony Keane Page words ASR AUD 155 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 412 word(s), ~1 min 6,176 CIRCULATION Short-term super surges are scary, so staying put pays off Queensland Times, Ipswich QLD, General News, Anthony Keane Page words ASR AUD 152 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 412 word(s), ~1 min 6,815 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 Think like a rich investor on a regular budget News Mail, Bundaberg QLD, General News, Anthony Keane Page words ASR AUD 212 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 426 word(s), ~1 min 6,176 CIRCULATION Insurance hike for public servants as mental health claims rise Sydney Morning Herald by Doug Dingwall 559 words ASR AUD 773 Industry Super Australia - Internet ID: Read on source site 12:00 AM 117,888 UNIQUE DAILY VISITORS, 1,420 UNIQUE DAILY VISITORS Illegal phoenix activity costing economy up to $5.13b a year Sydney Morning Herald by JENNIFER DUKE 502 words ASR AUD 725 Industry Super Australia - Internet ID: Read on source site 12:00 AM 117,888 UNIQUE DAILY VISITORS, 1,420 UNIQUE DAILY VISITORS More older people facing homelessness Canberra Times, Canberra, General News, Allison Worrall Page words ASR AUD 5,532 Photo: No Type: News Item Size: cm² ACT Australia Industry Super Australia - Press ID: View original - Full text: 445 word(s), ~1 min 17,579 CIRCULATION Buying Perth office dip 'risky' West Australian, Perth, Business News, Ben Harvey Page words ASR AUD 4,821 Photo: No Type: News Item Size: cm² WA Australia Industry Super Australia - Press ID: View original - Full text: 500 word(s), ~2 mins 147,676 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 Call to dob in dodgy directors West Australian, Perth, General News, Nick Evans Page words ASR AUD 4,313 Photo: No Type: News Item Size: cm² WA Australia Industry Super Australia - Press ID: View original - Full text: 380 word(s), ~1 min 147,676 CIRCULATION Standing by the weir Gladstone Observer, Gladstone QLD, General News, Michelle Gately Page words ASR AUD 170 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 278 word(s), ~1 min 3,301 CIRCULATION $270m rort a drain Courier Mail, Brisbane, Edition Changes - Metro, Steven Scott Page words ASR AUD 4,566 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 332 word(s), ~1 min 135,007 CIRCULATION How to invest your tax return Cairns Post, Cairns, General News, Sophie Elsworth Page words ASR AUD 1,394 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 526 word(s), ~2 mins 13,896 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 Short-term super surges are scary, so staying put pays Cairns Post, Cairns, General News, Anthony Keane Page words ASR AUD 517 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 238 word(s), <1 min 13,896 CIRCULATION Call to dob in dodgy directors West Australian, Perth, Edition Changes, Nick Evans Page words ASR AUD 4,330 Photo: No Type: News Item Size: cm² WA Australia Industry Super Australia - Press ID: View original - Full text: 376 word(s), ~1 min 147,676 CIRCULATION Banks face $70b gap in funding Australian Financial Review, Australia, General News, Jonathan Shapiro Page words ASR AUD 14,219 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 1007 word(s), ~4 mins 44,635 CIRCULATION ATO eyes 'phoenix' bosses who dodge payments Townsville Bulletin, Townsville QLD, General News Page words ASR AUD 740 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 261 word(s), ~1 min 16,484 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 Audit giants in secret UK talks Australian Financial Review, Australia, Companies and Markets, Madison Marriage Page words ASR AUD 5,259 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 599 word(s), ~2 mins 44,635 CIRCULATION UBS, Deutsche, Citi forced to navigate BEAR Australian Financial Review, Australia, Companies and Markets, Joyce Moullakis Page words ASR AUD 5,239 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 522 word(s), ~2 mins 44,635 CIRCULATION Why hurricanes are boosting returns for $80b MLC super Australian Financial Review, Australia, Companies and Markets, Joanna Mather Page words ASR AUD 7,929 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 608 word(s), ~2 mins 44,635 CIRCULATION YOUR SAY Launceston Examiner, Launceston TAS, Letters Page words ASR AUD 356 Photo: No Type: Letter Size: cm² TAS Australia Industry Super Australia - Press ID: View original - Full text: 129 word(s), <1 min 17,631 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 Myths blitz for retirees West Australian, Perth, Your Money, Nick Bruining Page words ASR AUD 4,576 Photo: No Type: News Item Size: cm² WA Australia Industry Super Australia - Press ID: View original - Full text: 549 word(s), ~2 mins 147,676 CIRCULATION FINANCIAL FACT FACTS West Australian, Perth, Your Money Page words ASR AUD 12,465 Photo: Yes Type: News Item Size: cm² WA Australia Industry Super Australia - Press ID: View original - Full text: 617 word(s), ~2 mins 147,676 CIRCULATION Short-term super surges are scary, so staying put pays off Townsville Bulletin, Townsville QLD, General News, Anthony Keane Page words ASR AUD 1,056 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 412 word(s), ~1 min 16,484 CIRCULATION Banks under pressure to lift mortgage rates as funding costs rise The Australian by Ben Butler 493 words ASR AUD 2,688 Industry Super Australia - Internet ID: Read on source site 12:00 AM 33,387 UNIQUE DAILY VISITORS, 1,813 UNIQUE DAILY VISITORS How ASIC closed in on AMP's 'orphan' customers The Australian by Pamela Williams 1073 words ASR AUD 5,122 Industry Super Australia - Internet ID: Read on source site 12:00 AM 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

7 Banks slow to meet loan rules The Australian by Michael Roddan 846 words ASR AUD 4,407 Industry Super Australia - Internet ID: Read on source site 12:00 AM 33,387 UNIQUE DAILY VISITORS, 1,813 UNIQUE DAILY VISITORS APRA's shield of secrecy exposed The Australian by Anthony Klan 502 words ASR AUD 2,773 Industry Super Australia - Internet ID: Read on source site 12:00 AM 33,387 UNIQUE DAILY VISITORS, 1,813 UNIQUE DAILY VISITORS Unions wield great power while acting in the service of only a few The Australian by Judith Sloan 1204 words ASR AUD 5,638 Industry Super Australia - Internet ID: Read on source site 12:00 AM 33,387 UNIQUE DAILY VISITORS, 1,813 UNIQUE DAILY VISITORS Think like a rich investor on a regular budget Daily Telegraph, Sydney, Business News, Anthony Keane Page words ASR AUD 10,774 Photo: Yes Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 422 word(s), ~1 min 232,067 CIRCULATION How to invest your tax return Daily Telegraph, Sydney, Business News, Sophie Elsworth Page words ASR AUD 13,514 Photo: Yes Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 522 word(s), ~2 mins 232,067 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 Short-term super surges are scary, so staying put pays off Daily Telegraph, Sydney, Business News, Anthony Keane Page words ASR AUD 8,175 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 412 word(s), ~1 min 232,067 CIRCULATION APRA's shield of secrecy exposed The Australian, Australia, General News, Anthony Klan Page words ASR AUD 3,860 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 498 word(s), ~1 min 94,448 CIRCULATION Latitude eyes bank deals to fund personal loans The Australian, Australia, Business News, Glenda Korporaal Page words ASR AUD 3,274 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 432 word(s), ~1 min 94,448 CIRCULATION MLC tips lean years for super returns The Australian, Australia, Business News, Cliona O'Dowd Page words ASR AUD 3,395 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 484 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

9 AMP, Primewest to cash in on transformed Exchange tower The Australian, Australia, Business News, Ben Wilmot Page words ASR AUD 3,961 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 409 word(s), ~1 min 94,448 CIRCULATION IFM ed in motorway bid The Australian, Australia, Business News, Bridget Carter Scott Murdoch Page words ASR AUD 7,295 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 533 word(s), ~2 mins 94,448 CIRCULATION Banks slow to meet loan rules The Australian, Australia, Business News, Michael Roddan Page words ASR AUD 8,771 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 891 word(s), ~3 mins 94,448 CIRCULATION ASIC net closes in on AMP's 'orphans' The Australian, Australia, Business News, Pamela Williams Page words ASR AUD 14,267 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 1143 word(s), ~4 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

10 QIC's Frawley tackles the big deals head-on The Australian, Australia, Business News, Turi Condon Page words ASR AUD 14,793 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 1055 word(s), ~4 mins 94,448 CIRCULATION Major banks pressured to lift home loan rates The Australian, Australia, Business News, Ben Butler Page words ASR AUD 5,679 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 510 word(s), ~2 mins 94,448 CIRCULATION Banks ramp up sharing of 'positive' data, despite concerns Age, Melbourne, Business News, Clancy Yeates Page words ASR AUD 12,476 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 494 word(s), ~1 min 83,229 CIRCULATION New hotline to dob in a 'phoenix' Age, Melbourne, Business News, JENNIFER DUKE Page words ASR AUD 14,210 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 490 word(s), ~1 min 83,229 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

11 Short-term super surges are scary, so staying put pays off Adelaide Advertiser, Adelaide, Business News, Anthony Keane Page words ASR AUD 2,573 Photo: No Type: News Item Size: cm² SA Australia Industry Super Australia - Press ID: View original - Full text: 412 word(s), ~1 min 112,097 CIRCULATION Short-term super surges are scary, so staying put pays off Courier Mail, Brisbane, Business News, Anthony Keane Page words ASR AUD 3,038 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 412 word(s), ~1 min 135,007 CIRCULATION $270m rort a drain Courier Mail, Brisbane, General News, Steven Scott Page words ASR AUD 4,461 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 334 word(s), ~1 min 135,007 CIRCULATION Banks ramp up sharing of 'positive' data, despite concerns Sydney Morning Herald, Sydney, Business News, Clancy Yeates Page words ASR AUD 17,848 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 494 word(s), ~1 min 88,634 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

12 New hotline to dob in a 'phoenix' Sydney Morning Herald, Sydney, Business News, JENNIFER DUKE Page words ASR AUD 20,649 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 490 word(s), ~1 min 88,634 CIRCULATION Elderly crisis 'only going to get worse' Age, Melbourne, General News, Allison Worrall Page words ASR AUD 18,797 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 683 word(s), ~2 mins 83,229 CIRCULATION PM pressed to act: voters cut to migrants The Australian, Australia, General News, Greg Brown Simon Benson Page words ASR AUD 12,206 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 733 word(s), ~2 mins 94,448 CIRCULATION Economy suffers $5bn blow from phoenix company fraud The Australian, Australia, General News, Rosie Lewis Page words ASR AUD 3,476 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 399 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

13 UNIONS WIELD THEIR POWER IN SERVICE OF SO FEW The Australian, Australia, General News, Judith Sloan Page words ASR AUD 8,851 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 1165 word(s), ~4 mins 94,448 CIRCULATION New hotline to dob in a 'phoenix' Canberra Times, Canberra, Business News, JENNIFER DUKE Page words ASR AUD 6,480 Photo: No Type: News Item Size: cm² ACT Australia Industry Super Australia - Press ID: View original - Full text: 490 word(s), ~1 min 17,579 CIRCULATION Banks ramp up sharing of 'positive' data, despite concerns Canberra Times, Canberra, Business News, Clancy Yeates Page words ASR AUD 5,712 Photo: No Type: News Item Size: cm² ACT Australia Industry Super Australia - Press ID: View original - Full text: 494 word(s), ~1 min 17,579 CIRCULATION Rising mental health claims lift premiums Canberra Times, Canberra, General News, Doug Dingwall Page words ASR AUD 6,685 Photo: No Type: News Item Size: cm² ACT Australia Industry Super Australia - Press ID: View original - Full text: 524 word(s), ~2 mins 17,579 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

How to invest your tax return Hobart Mercury, Hobart, Business News, Sophie Elsworth Page 18 522 words ASR AUD 1,894 Photo: No Type: News Item Size: 262.

14 How to invest your tax return Hobart Mercury, Hobart, Business News, Sophie Elsworth Page words ASR AUD 1,894 Photo: No Type: News Item Size: cm² TAS Australia Industry Super Australia - Press ID: View original - Full text: 522 word(s), ~2 mins 28,265 CIRCULATION Short-term super surges are scary, so staying put pays off Hobart Mercury, Hobart, Business News, Anthony Keane Page words ASR AUD 1,258 Photo: No Type: News Item Size: cm² TAS Australia Industry Super Australia - Press ID: View original - Full text: 412 word(s), ~1 min 28,265 CIRCULATION Rising cost of phoenixing delivers $5b hit to economy Australian Financial Review, Australia, General News, Andrew Tillett Page words ASR AUD 4,915 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 541 word(s), ~2 mins 44,635 CIRCULATION New Forests has $873m to plant in pricey market Australian Financial Review, Australia, Property, Matthew Cranston Page words ASR AUD 5,036 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 534 word(s), ~2 mins 44,635 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.

15 Daily Mercury, Mackay QLD Author: Anthony Keane Section: General News Article type : News Item Classification : Regional : 7,738 Page: 13 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 175 Words: 412 Item ID: Short-term super surges are scary, so staying put pays off ANTHONY KEANE RELYING on one year s financial performance to pick your super fund is dangerous for your wealth, and new numbers prove it. An analysis of 10 years of superannuation fund performance by QSuper has found that chasing fast-growing funds can slash average annual returns almost in half. QSuper found that someone who started with a $50,000 balanced superannuation fund option in July 2007 and swapped their super each year to the previous year s best balanced fund ended up with $68,000 by 2017, compared with $86,700 for a person who stuck with a consistently good fund. The swapper achieved annual returns averaging 3.13 per cent over the 10 years which included the Global Financial Crisis while the saver who stayed put earned 5.66 per cent. QSuper head of investment strategy Damian Lillicrap said 80 to 90 per cent of investment risk in a typical balanced fund came from shares, also called equities. Very good one-year returns, in a year when equities have done well, could be a sign that the fund is not very diversified, he said. A good rule of thumb could be to avoid the top funds in a good equity year and seek out those that are among the top in a poor equity year provided they have good long-term returns. Last year s top performer based on a one-year return may not be in the top 10 or even top 25 the following year. Mr Lillicrap said decisions made on one-year returns were dangerous, and people should check how their fund performed over 10 years. People can compare funds using websites such as morningstar.com.au, superratings.com.au, chantwest.com.au and canstar.com.au, but these can still be tricky to navigate. SuperRatings chief executive officer Kirby Rappell said a good starting point was your annual statement, which should show how your super compared with various benchmarks. He said people should check returns over multiple time periods such as three, five and 10 years to see how funds averaged out. It s about making sure there s a good long-term history rather than it just being flavour of the year, Mr Rappell said. Canstar s group executive financial services, Steve Mickenbecker, said people should make sure they were comparing similar fund options. Don t compare oranges with Ferraris, he said. A lot of outstanding returns come from asset allocation, and there s a cycle. If you are always looking in your rear view mirror you might have missed the cycle where the asset did well...

News Mail, Bundaberg QLD Author: Anthony Keane Section: General News Article type : News Item Classification : Regional : 6,176 Page: 16 Printed Size: 170.

16 News Mail, Bundaberg QLD Author: Anthony Keane Section: General News Article type : News Item Classification : Regional : 6,176 Page: 16 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 155 Words: 412 Item ID: Short-term super surges are scary, so staying put pays off ANTHONY KEANE RELYING on one year s financial performance to pick your super fund is dangerous for your wealth, and new numbers prove it. An analysis of 10 years of superannuation fund performance by QSuper has found that chasing fast-growing funds can slash average annual returns almost in half. QSuper found that someone who started with a $50,000 balanced superannuation fund option in July 2007 and swapped their super each year to the previous year s best balanced fund ended up with $68,000 by 2017, compared with $86,700 for a person who stuck with a consistently good fund. The swapper achieved annual returns averaging 3.13 per cent over the 10 years which included the Global Financial Crisis while the saver who stayed put earned 5.66 per cent. QSuper head of investment strategy Damian Lillicrap said 80 to 90 per cent of investment risk in a typical balanced fund came from shares, also called equities. Very good one-year returns, in a year when equities have done well, could be a sign that the fund is not very diversified, he said. A good rule of thumb could be to avoid the top funds in a good equity year and seek out those that are among the top in a poor equity year provided they have good long-term returns. Last year s top performer based on a one-year return may not be in the top 10 or even top 25 the following year. Mr Lillicrap said decisions made on one-year returns were dangerous, and people should check how their fund performed over 10 years. People can compare funds using websites such as morningstar.com.au, superratings.com.au, chantwest.com.au and canstar.com.au, but these can still be tricky to navigate. SuperRatings chief executive officer Kirby Rappell said a good starting point was your annual statement, which should show how your super compared with various benchmarks. He said people should check returns over multiple time periods such as three, five and 10 years to see how funds averaged out. It s about making sure there s a good long-term history rather than it just being flavour of the year, Mr Rappell said. Canstar s group executive financial services, Steve Mickenbecker, said people should make sure they were comparing similar fund options. Don t compare oranges with Ferraris, he said. A lot of outstanding returns come from asset allocation, and there s a cycle. If you are always looking in your rear view mirror you might have missed the cycle where the asset did well...

17 Queensland Times, Ipswich QLD Author: Anthony Keane Section: General News Article type : News Item Classification : Regional : 6,815 Page: 17 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 152 Words: 412 Item ID: Short-term super surges are scary, so staying put pays off ANTHONY KEANE RELYING on one year s financial performance to pick your super fund is dangerous for your wealth, and new numbers prove it. An analysis of 10 years of superannuation fund performance by QSuper has found that chasing fast-growing funds can slash average annual returns almost in half. QSuper found that someone who started with a $50,000 balanced superannuation fund option in July 2007 and swapped their super each year to the previous year s best balanced fund ended up with $68,000 by 2017, compared with $86,700 for a person who stuck with a consistently good fund. The swapper achieved annual returns averaging 3.13 per cent over the 10 years which included the Global Financial Crisis while the saver who stayed put earned 5.66 per cent. QSuper head of investment strategy Damian Lillicrap said 80 to 90 per cent of investment risk in a typical balanced fund came from shares, also called equities. Very good one-year returns, in a year when equities have done well, could be a sign that the fund is not very diversified, he said. A good rule of thumb could be to avoid the top funds in a good equity year and seek out those that are among the top in a poor equity year provided they have good long-term returns. Last year s top performer based on a one-year return may not be in the top 10 or even top 25 the following year. Mr Lillicrap said decisions made on one-year returns were dangerous, and people should check how their fund performed over 10 years. People can compare funds using websites such as morningstar.com.au, superratings.com.au, chantwest.com.au and canstar.com.au, but these can still be tricky to navigate. SuperRatings chief executive officer Kirby Rappell said a good starting point was your annual statement, which should show how your super compared with various benchmarks. He said people should check returns over multiple time periods such as three, five and 10 years to see how funds averaged out. It s about making sure there s a good long-term history rather than it just being flavour of the year, Mr Rappell said. Canstar s group executive financial services, Steve Mickenbecker, said people should make sure they were comparing similar fund options. Don t compare oranges with Ferraris, he said. A lot of outstanding returns come from asset allocation, and there s a cycle. If you are always looking in your rear view mirror you might have missed the cycle where the asset did well...

News Mail, Bundaberg QLD Author: Anthony Keane Section: General News Article type : News Item Classification : Regional : 6,176 Page: 15 Printed Size: 232.

18 News Mail, Bundaberg QLD Author: Anthony Keane Section: General News Article type : News Item Classification : Regional : 6,176 Page: 15 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 212 Words: 426 Item ID: Think like a rich investor on a regular budget ANTHONY KEANE RICH Australians have a different mindset when it comes to wealth, and habits that everyday investors can aim to mimic. The latest Capgemini World Wealth Report ranked Australia ninth globally in terms of numbers of high net worth individuals, at 278,000. High net worth individuals are people with net investment assets of $US1 million ($1.3 million) apart from their home and their Australian numbers have grown 9.8 per cent in a year. The word millionaire doesn t have the lustre it once did, and growing numbers of investors have $5 million-plus fortunes. Finance specialists say we can learn from them. Thinking like rich people means broadening your mind beyond property and shares, surrounding yourself with professional advisers and using different investment structures to lower your tax and risk. I m seeing more clients with multi-million dollar portfolios, said Adrian Frinsdorf, director of wealth advisory at William Buck. With the sale of successful businesses and the rise of investments over the last decade, wealthy investors have moved from rich to very rich, he said. Often these people come from successful business grounds or established families. Traditionally they are usually in their 50s but I m also seeing more people in their 30s seeking advice, having built exceptional wealth through smart business decisions. Financial strategist Theo Marinis, who has dozens of clients with more than $1 million of assets and many with $5 million-plus, said rich investors were not afraid to pay for good advice that helped them in areas such as minimising tax. It s the old story: the rich get richer, he said. They have greater capacity to afford to pay for advice to structure it. Mr Marinis said multimillionaires often used trusts and company structures but these were not usually necessary for those with $1 or $2 million because superannuation s low tax structure could work just as well. They also use investment bonds, which pay a maximum tax rate of 30 per cent and the investment is tax free if held for at least 10 years. You can do some of the same things yourself, Mr Marinis said. The family home, exempt from capital gains tax, was another tool for wealthy people to build and store wealth, he said. They diversify their portfolios and don t put all their eggs in one basket. They don t have it all in shares. Mr Frinsdorf said while average mum-and-dad investors focused on building enough assets for retirement, wealthier investors focused more on maximising their estate for their children. Start saving today moneysaverhq.com.au

Canberra Times, Canberra Author: Allison Worrall Section: General News Article type : News Item Classification : Capital City Daily : 17,579 Page: 11 Printed Size: 216.

19 Canberra Times, Canberra Author: Allison Worrall Section: General News Article type : News Item Classification : Capital City Daily : 17,579 Page: 11 Printed Size: cm² Market: ACT Country: Australia ASR: AUD 5,532 Words: 445 Item ID: HOUSING CRISIS This situation is only going to get worse More older people facing homelessness Allison Worrall Thousands of older Australians are being forced to choose between buying groceries, medication or paying their rent, experts say. Leading academics and housing providers have warned that the homelessness crisis among the elderly is set to deepen unless more money is injected into affordable housing. With the country s older population forecast to double in coming decades, the authors of a new report to be launched by Senator Doug Cameron on Monday have called on policymakers to urgently address the problem. At the last census, there were 18,625 homeless people aged over 55, but this is likely to be an underestimate given the complicated nature of counting those with no fixed address. Meanwhile, the number of renters aged over 65 who are in housing stress, defined as paying more than 30 per cent of their income on rent, has jumped by 42 per cent in the past five years. This situation is only going to get worse, warned Debbie Faulkner, the deputy director of the centre for housing, urban and regional planning at the University of Adelaide. In some cases, rent chewed up to 70 per cent of a household s income, she said. They tend to pay their rent first and go without their health needs, their pharmaceutical needs or even food. Brian Lipmann, the founder of a not-for-profit organisation dedicated to helping disadvantaged older Australians, said housing options for poor elderly people were non-existent. It has been almost 30 years since he opened Wintringham Specialist Aged Care but Mr Lipmann said the situation was worse than ever. We now have 1900 people on our waiting list, he said. A lot of those people have never had anything to do with homelessness before. On any given night, Wintringham provides housing, care or outreach services to about 1800 people aged over 50 in Victoria. Domestic violence or the death of a partner were common triggers forcing older people out of the rental market, Mr Lipmann said. He added that they also typically had little to no superannuation savings to fall on. Many find themselves couchsurfing at the homes of their children or friends. It s demoralising and it s humiliating, he said. Housing advocates have reported a growing number of older people locked out of the private rental market were now faced with long waiting lists for public housing. Last year, more than 23,000 people aged over 55 turned to homelessness services, said Council to Homeless Persons chief executive Jenny Smith. Due to the chronic shortage of affordable housing, the best those people are offered is a short stay in a refuge, rooming house or caravan park.

West Australian, Perth Author: Ben Harvey Section: Business News Article type : News Item Classification : Capital City Daily : 147,676 Page: 59 Printed Size: 275.

20 West Australian, Perth Author: Ben Harvey Section: Business News Article type : News Item Classification : Capital City Daily : 147,676 Page: 59 Printed Size: cm² Market: WA Country: Australia ASR: AUD 4,821 Words: 500 Item ID: Buying Perth office dip risky Ben Harvey One of WA s most successful commercial property investors has warned buyers eyeing a counter-cyclical investment in Perth that they could be waiting a long time to realise value. Security Capital director Mark Clohessy, whose property syndication business recently sold the lion s share of its east coast interests, said buying at the bottom of the market did not guarantee success because record-low interest rates had corrupted Perth s property cycle. It s gauging the length of the downturn that s the difficult bit, he said. Mr Clohessy and fellow director Rod Shea have generated stellar returns for wholesale investors and self-managed super funds since they started riding the property cycles in the mid-1990s. Security Capital sold its Perth office, industrial and retail holdings to GE Capital in mid They sat on the sidelines until 2009 when they took a punt on the then-depressed Melbourne and Sydney suburban office markets, buying eight properties over the next five years. They started selling those properties two years ago. The growth in office rentals and compression in office yields fuelled by strong demand from both local and offshore buyers chasing limited stock has created very favourable selling conditions, Mr Clohessy said. In particular, the impact of offshore buyers has been significant in forcing Australian buyers to pay higher prices. We were able to purchase on yields of circa 8 per cent to 10 per cent and have sold on yields of 5 per cent to 6 per cent. We have also had the benefit during our ownership period of interest rates declining from around 7 per cent to 8 per cent to current levels of 4 per cent to 5 per cent, improving income return. These historically low interest rates which have assisted in pushing down cap rates and contributing to strong capital gains may be ironically the same contributor as to why there should be pause for thought before jumping into the next countercyclical buy too soon. Ultimately the impact of higher global bond rates will impact on Australian property yields negative, Mr Clohessy said. Equally importantly, these historically low rates post- GFC have insulated property prices from being fully impacted by the economic downturn in the WA economy in two ways. First, banks have not had to aggressively pursue a selldown of non-performing loans and bringing with it a flood of properties to the market and, secondly, in combination with these low interest rates have artificially kept selling yields from softening, he said. The follow on from this is that there are limited buying opportunities available which will allow for significant cap rate compression in the future, which is the major driver of capital gain. Additionally, the high vacancy rates and incentive level in the Perth office market may take some number of years to retreat to levels to provide rental growth. It may also be that there is risk on the downside due to upward pressure on interest rates resulting in the softening of cap rates and we may see a fall in capital values.

21 West Australian, Perth Author: Nick Evans Section: General News Article type : News Item Classification : Capital City Daily : 147,676 Page: 14 Printed Size: cm² Market: WA Country: Australia ASR: AUD 4,313 Words: 380 Item ID: Call to dob in dodgy directors Nick Evans Canberra Dodgy company directors who skip on their bills are costing small businesses, workers and taxpayers more than $5 billion a year, according to figures from the tax office, prompting a crackdown on the practice of so-called corporate phoenixing. The Federal Government is set to step up its campaign against dodgy company directors, launching a new hotline today to help catch corporate thieves. The Australian Taxation Office will release figures today, showing corporate phoenixing where directors send a company under to avoid paying the bills, only to resume trading under another name costs the economy far more than previously believed. The report, from the ATO s Phoenix Taskforce, suggests that the dodgy corporate practice costs the economy up to $5.2 billion a year, causing untold misery as subcontractors go bust when their bills are not paid and workers lose out on accrued leave and unpaid superannuation. Subcontractors and other small businesses wear the bulk of the costs, according to the review, conducted by accounting firm PwC. It estimates the direct cost to business, mostly in unpaid bills, at up to $3.2 billion a year. Employees lose up to $300 million in unpaid entitlements, and dodgy directors skip on $1.7 billion worth of payments to State and Federal governments. Minister for Revenue and Financial Services Kelly O Dwyer will launch the ATO hotline for workers and subcontractors to dob in companies and directors they believe are skipping on their obligations by sending companies under rather than paying the bills. Phoenixing hurts hardworking Australians, including the company s employees, suppliers, customers and competing businesses, she said. It causes a significant drain on the Australian economy. Last financial year the ATO sent out tax bills totalling more than $270 million from more than 340 reviews and audits of businesses involved in phoenix activity. Since 2014, when the Federal Government established the Phoenix Taskforce which brings together 30 Federal and State government agencies to identify and deal with suspected illegal phoenix operators it has conducted more than 3000 audits and reviews, Ms O Dwyer said, raising more than $1 billion in liabilities. Only $450 million of that has been collected, she said. Employees, creditors, competing businesses and the public should report their concerns about phoenix behaviour by calling or at ato.gov.au/reportphoenixactivity

Gladstone Observer, Gladstone QLD Author: Michelle Gately Section: General News Article type : News Item Classification : Regional : 3,301 Page: 4 Printed Size: 186.

22 Gladstone Observer, Gladstone QLD Author: Michelle Gately Section: General News Article type : News Item Classification : Regional : 3,301 Page: 4 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 170 Words: 278 Item ID: Standing by the weir Report finds project costs to exceed benefits in the short term MICHELLE GATELY michelle.gately@capnews.com.au LABOR and Liberal politicians have re-affirmed their commitment to Rookwood Weir, despite an independent assessment finding insufficient evidence of immediate need. Infrastructure Australia s assessment of the Lower Fitzroy River Infrastructure Project had found costs were likely to exceed the benefits at this time. Chief executive Philip Davies said although the project may be needed in the longer term, there was insufficient evidence to show it was required now. The short-term need for an additional 4000 megalitres of water to the Livingstone Shire Council region does not currently require the construction of a weir which could provide 76,000 megalitres each year, Mr Davies said. The other driver for the project, which is connecting the Lower Fitzroy River to Awoonga Dam to diversify supply, is a longer-term need and most likely not required until Mr Davies said a staged approach should be considered as a more cost-effective way to secure water supply. We support Building Queensland s recommendation in the business case to clearly establish customer demand for additional water before the project proceeds, he said. Capricornia MP Michelle Landry said the Prime Minister and Deputy Prime Minister were still 100 per cent committed to Rookwood Weir and had the money on the table. Ms Landry said the assessment did not remove the weir s priority initiative status, keeping it among the top infrastructure projects in the longer term future. She said as far as she was aware, construction was still set to start in the dry season next year. Rockhampton MP Barry O Rourke echoed Ms Landry s comments, saying the State Government would not walk away from the commitment.

Courier Mail, Brisbane Author: Steven Scott Section: Edition Changes - Metro Article type : News Item Classification : Capital City Daily : 135,007 Page: 2 Printed Size: 260.

23 Courier Mail, Brisbane Author: Steven Scott Section: Edition Changes - Metro Article type : News Item Classification : Capital City Daily : 135,007 Page: 2 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 4,566 Words: 332 Item ID: $270m rort a drain ATO snares deadbeat bosses who weasel out of payments EXCLUSIVE STEVEN SCOTT costing more than $270 million were caught by the tax office last year, according to figures to be released today. And a new report commissioned by the Australian Taxation Office said businesses that used company structures to rip off customers, staff and suppliers cost the economy up to $5.13 billion a year. As part of a crackdown on so-called phoenix companies, the ATO has set up a phone line for people to dob in businesses that use corporing invoices, wages or superannuation entitlements. The ATO s Phoenix Taskforce conducted 340 audits last financial year and identified $270 million in tax liabilities from these dodgy businesses. More than $190 million was recouped. The taskforce, set up in 2014, has so far found more than $1 billion in liabilities, and collected close to half of that in owed taxes. Seven people face criminal prosecutions as a result of the audits last year, and 34 others have been banned from acting as company directors. es that try to avoid paying entitlements. Penalties could include jail time for individual employers who fail to pay superannuation to staff. Laws are also being drafted to prevent workers being left out of pocket when businesses collapse. Kelly O Dwy the Governm to further t fraud to claw and staff entit Phoenixin working Aus ing the employees, s tomers and businesses. I significant dr economy, sh For thos try to beat t tem, it s only ter of time be the law catch up with them Coopers report suggests the unlawful use of company structures by people trying to get out of paying their bills is actually much wider. It estimated that illegal phoenix companies cost the economy $2.85 billion and $5.13 billion in The Federal Government

Cairns Post, Cairns Author: Sophie Elsworth Section: General News Article type : News Item Classification : Regional : 13,896 Page: 27 Printed Size: 278.

24 Cairns Post, Cairns Author: Sophie Elsworth Section: General News Article type : News Item Classification : Regional : 13,896 Page: 27 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 1,394 Words: 526 Item ID: How to invest your tax return Aussies are eagerly awaiting their tax refunds, but plan to spend the money wisely, writes Sophie Elsworth MILLIONS of taxpayers will receive a much-needed cash injection from the Australian Taxation Office in the coming weeks and many plan to spend their tax return money wisely. Australians often rush to get their tax returns filed in the first few months of the financial year in the hope they will receive a wad of cash. But experts warn taxpayers to use their returns smartly and not just fritter them away. New data from financial institution ME quizzed 1000 Australians and found 43 per cent are expecting to save or invest their tax refund. And for those carrying debts, about 27 per cent are planning to cull debts and tip the money into their home loan or pay down credit card debt. Rising Tide Financial Services chief executive officer Chris Browne said Australians should be careful with any money they receive but also leave a portion for play. Spend 80 per cent wisely and spend 20 per cent on fun, he said. Pay off your credit card debt and use it as an opportunity to live credit card free in the next financial year. Many credit cards attract interest rates above the 20 per cent mark, so it s vital cardholders carrying plastic debt chip into this first. Mr Browne said ditching credit cards altogether is a way to wipe the slate clean. Latest ATO figures show in the financial year 13.5 million individuals and sole traders lodged a tax return themselves or through an agent and the average refund was $2500. The ATO s assistant commissioner, Kath Anderson, said the growth in pre-fill information available for those lodging made it much easier to file their return. For the year we prefilled over 81 million records, to assist taxpayers and agents to get returns right, she said. We expect to be able to prefill even more data this year as a result of increased data received from third parties. ME s general manager of deposits John Powell said getting a tax refund is a great way to kickstart the new financial year in a healthier state. Very few Australians factor their tax return into their household budget so it can make a big difference to your financial wellbeing when used wisely, he said. While a home loan has one of the lowest rates of debt it s also a long-term affair and any lump sum you tip in today can knock years off the term and save you a bundle in interest along the way. Other alternatives include tipping money into your super fund and maximising the benefits of compounding interest. Mr Browne also suggests those carrying a Higher Education Loan Program (HELP debt) from university degrees should pay it off. He said it s financial noise and despite being one of the cheapest forms of debt its existing rate is the consumer price index (CPI) at 1.9 per cent it s a good debt to pay off. Pay off your HELP debt to free up cash and increase your take-home pay, he said.

Cairns Post, Cairns Author: Anthony Keane Section: General News Article type : News Item Classification : Regional : 13,896 Page: 27 Printed Size: 103.

25 Cairns Post, Cairns Author: Anthony Keane Section: General News Article type : News Item Classification : Regional : 13,896 Page: 27 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 517 Words: 238 Item ID: Short-term super surges are scary, so staying put pays ANTHONY KEANE RELYING on one year s financial performance to pick your super fund is dangerous for your wealth, and new numbers prove it. An analysis of 10 years of superannuation fund performance by QSuper has found that chasing fast-growing funds can slash average annual returns almost in half. QSuper found that someone who started with a $50,000 balanced superannuation fund option in July 2007 and swapped their super each year to the previous year s best balanced fund ended up with $68,000 by 2017, compared with $86,700 for a person who stuck with a consistently good fund. The swapper achieved annual returns averaging 3.13 per cent over the 10 years which included the Global Financial Crisis while the saver who stayed put earned 5.66 per cent. QSuper head of investment strategy Damian Lillicrap said 80 to 90 per cent of investment risk in a typical balanced fund came from shares, also called equities. Very good one-year returns, in a year when equities have done well, could be a sign that the fund is not very diversified, he said. A good rule of thumb could be to avoid the top funds in a good equity year and seek out those that are among the top in a poor equity year provided they have good long-term returns. Mr Lillicrap said decisions made on one-year returns were dangerous, and people should check how their fund performed over 10 years.

West Australian, Perth Author: Nick Evans Section: Edition Changes Article type : News Item Classification : Capital City Daily : 147,676 Page: 14 Printed Size: 247.

26 West Australian, Perth Author: Nick Evans Section: Edition Changes Article type : News Item Classification : Capital City Daily : 147,676 Page: 14 Printed Size: cm² Market: WA Country: Australia ASR: AUD 4,330 Words: 376 Item ID: Call to dob in dodgy directors Nick Evans Canberra Dodgy company directors who skip on their bills are costing small businesses, workers and taxpayers more than $5 billion a year, according to figures from the tax office, prompting a crackdown on the practice of so-called corporate phoenixing. The Federal Government is set to step up its campaign against dodgy company directors, launching a new hotline today to help catch corporate thieves. The Australian Taxation Office will release figures today, showing corporate phoenixing where directors send a company under to avoid paying the bills, only to resume trading under another name costs the economy far more than previously believed. The report, from the ATO s Phoenix Taskforce, suggests that the dodgy corporate practice costs the economy up to $5.2 billion a year, causing untold misery as subcontractors go bust when their bills are not paid and workers lose out on accrued leave and unpaid superannuation. Subcontractors and other small businesses wear most of the costs, according to the review by accounting firm PwC. It estimates the direct cost to business, mostly in unpaid bills, up to $3.2 billion a year. Employees lose up to $300 million in unpaid entitlements, and dodgy directors skip on $1.7 billion of payments to State and Federal governments. Minister for Revenue and Financial Services Kelly O Dwyer will launch the ATO hotline for workers and subcontractors to dob in companies and directors they believe are skipping on their obligations by sending companies under rather than paying the bills. Phoenixing hurts hardworking Australians, including the company s employees, suppliers, customers and competing businesses, she said. It causes a significant drain on the Australian economy. Last financial year the ATO sent out tax bills totalling more than $270 million from more than 340 reviews and audits of businesses involved in phoenix activity. Since 2014, when the Federal Government established the Phoenix Taskforce which brings together 30 Federal and State government agencies to identify and deal with suspected illegal phoenix operators it had conducted more than 3000 audits and reviews, Ms O Dwyer said, raising more than $1 billion in liabilities. Only $450 million of that had been collected, she said. Employees, creditors, competing businesses and the public should report their concerns about phoenix behaviour by calling or at ato.gov.au/reportphoenixactivity

Australian Financial Review, Australia Author: Jonathan Shapiro Section: General News Article type : News Item Classification : National : 44,635 Page: 1 Printed Size: 703.

Australia's banks will be forced to find an additional $70 billion of funding as superannuation funds shift out of cash into international assets while indebted households draw down on their savings.

costs and has already prompted the non-major banks to enact "out-of-cycle" mortgage rate rises.

$60 billion to $70 billion, according to analysis by National Australia Bank economists.

"In myjudgment, leakage of deposits and cash from Australia's banking system - at an inopportune time when US dollar funding spreads are wider - has been one of the key factors," NAB global head of

27 Australian Financial Review, Australia Author: Jonathan Shapiro Section: General News Article type : News Item Classification : National : 44,635 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 14,219 Words: 1007 Item ID: Page 1 of 3 Need to plug hole between loans and savings Banks face $70b gap in funding Jonathan Shapiro Australia's banks will be forced to find an additional $70 billion of funding as superannuation funds shift out of cash into international assets while indebted households draw down on their savings. The widening of the so-called "funding gap", which measures the difference between bank loans and deposits, comes amid a crisis-like blowout in short-term funding that is increasing bank funding costs and has already prompted the non-major banks to enact "out-of-cycle" mortgage rate rises. The gap between loan and deposit growth has increased from $390 billion in the second quarter of 2017 to $457 billion in the first quarter of 2018, resulting in an additional funding requirement of $60 billion to $70 billion, according to analysis by National Australia Bank economists. The rising financing demands may further increase funding cost pressures, initially triggered by a spike in United States short-term interest rates. "In myjudgment, leakage of deposits and cash from Australia's banking system - at an inopportune time when US dollar funding spreads are wider - has been one of the key factors," NAB global head of research Peter Jolly said. He said the banking system could lose deposits in several ways. "One channel in recent quarters has been domestic fund managers allocating away from cash and deposits to other asset classes - particularly overseas assets," Mr Jolly said. The funding retreat could force the banks to pay more to attract deposits from households and corporations or turn to money markets at a time when short-term interest rates have spiked to crisis-like levels. The sharp rise in the bank bill swap rate has already forced non-major banks such as Macquarie, AMP and Bendigo Bank to increase mortgage rates and prompted speculation that the major banks will be forced to follow. That could have consequences for Continued p6 Mine) the gap Difference between bank loans and deposits ($b) : 275 From page 1 Cash shortage: banks face $70b funding gap the economy as more households face higher borrowing costs. Official data compiled by National Australia Bank shows that Australian-

bank deposits and towards international assets. In mid-2016 managed fund investments in cash, deposits and short-term securities of $325 billion were the equivalent to investments in overseas assets.

Separate data from the Association of Superannuation Funds of Australia shows that large superannuation fund cash balances declined by $2 billion to $180 billion from March 2017 to March 2018 while

The allocation of managed funds to cash and deposits has steadily fallen from 15 per cent in 2014 to 10 per cent in the first quarter of 2018.

The decline in deposit growth highlights what is often considered the key weakness of Australia's financial system - a reliance on volatile capital markets to plug the funding gap between loans and

Since the financial crisis, in which the reliance on wholesale funding was exposed, Australia's major banks have lifted their proportion of deposit funding from 50 per cent to decade-highs of 65

28 Australian Financial Review, Australia Author: Jonathan Shapiro Section: General News Article type : News Item Classification : National : 44,635 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 14,219 Words: 1007 Item ID: Page 2 of 3 based managed funds are increasingly drawing down their cash balances as they divert funds from bank deposits and towards international assets. In mid-2016 managed fund investments in cash, deposits and short-term securities of $325 billion were the equivalent to investments in overseas assets. Since then cash investments have risen modesdy to $348 million while overseas assets have shot up to to more man $475 million. Separate data from the Association of Superannuation Funds of Australia shows that large superannuation fund cash balances declined by $2 billion to $180 billion from March 2017 to March 2018 while investments in international shares increased by $57 billion to $396 billion. The allocation of managed funds to cash and deposits has steadily fallen from 15 per cent in 2014 to 10 per cent in the first quarter of That level is close to an all-time low reached in 2007, just before the global financial crisis. The decline in deposit growth highlights what is often considered the key weakness of Australia's financial system - a reliance on volatile capital markets to plug the funding gap between loans and savings. Since the financial crisis, in which the reliance on wholesale funding was exposed, Australia's major banks have lifted their proportion of deposit funding from 50 per cent to decade-highs of 65 percent Analysts are becoming increasingly concerned that the banks are now lending money at a faster rate than they are able to gather deposits, increasing the call on the capital markets. While official lending statistics show that the banks increased lending by 4.8 per cent over 12 months to May, deposits increased by just over 2 per cent, widening the funding gap. Household deposit growdi was relatively stable at 5.6 per cent but financial and wholesale deposit growth, as measured by certificates of deposits, declined sharply over the period. "So we have a picture of banks extending credit at roughly the same rate over the past year, but the slowdown in deposit growth has been much sharper," TD Securities senior interest rate strategist Prashant Newnaha said. He added that the slowdown in deposit gathering, which began in June 2017, "has played a key role in the subsequent rise in cost of bank funding". The banks faced two choices in response to slowing deposit growth - either lift deposit rates, or increase their use of the capital markets to meet demand for credit as their loan books have swelled to $2.6 trillion. "Either measure should result in higher cost of bank funding," Mr Newnaha said. The unusual increase in short-term funding costs is evident in a range of interest rate derivatives and money market rates. The 90-day bank bill swap rate, which measures three-month cost of borrowing, increased to as high as 2.12 per cent last week. That rate is 60 basis points above the 1.5 per cent official cash rate setting, triple the typical premium of 20 basis points. This is a problem for the banks because the higher short-term borrowing costs eat into their profit margins if lending rates remain unchanged. The nation's smaller lenders, which are more sensitive to changes in shortterm funding rates, have already responded by increasing mortgage rates by as much as 17 basis points. Mr Newnaha also pointed to the fall in the household savings rate, which had reached as high as 10 per cent during die financial crisis but had declined to 2 per cent, as anomer reason to expect deposit growth to slow. "The prospect of higher Australian mortgage rates, just as property price growth slows and moves into negative territory in certain areas, along with low wage growth means the Australian savings ratio is unlikely to turn higher any time soon." In recent years Australian households have increasingly financed consumption by drawing on their savings. "Now there is clear risk that a larger proportion of household income will be directed towards servicing higher mortgage repayments." The banks faced two choices in response to slowing deposit growth.

29 Australian Financial Review, Australia Author: Jonathan Shapiro Section: General News Article type : News Item Classification : National : 44,635 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 14,219 Words: 1007 Item ID: Page 3 of 3 Saving grace Managed funds' cash holdings and overseas assets ($b) Managed funds' cash, deposits, short-term securities (% of total funds) Australian houshold savings ratio (%) Annual change of total deposits (%) Mar SOURCE: NAB, TO SECURITIES

Townsville Bulletin, Townsville QLD Section: General News Article type : News Item Classification : Regional : 16,484 Page: 2 Printed Size: 122.

30 Townsville Bulletin, Townsville QLD Section: General News Article type : News Item Classification : Regional : 16,484 Page: 2 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 740 Words: 261 Item ID: ATO eyes phoenix bosses who dodge payments RORTS by dodgy bosses costing more than $270 million were caught by the tax office last year, according to figures to be released today. And a new report commissioned by the Australian Taxation Office said businesses that used company structures to rip off customers, staff and suppliers cost the economy up to $5.13 billion a year. As part of a crackdown on so-called phoenix companies, the ATO has set up a phone line for people to dob in businesses that use corporate structures to escape paying invoices, wages or superannuation entitlements. The ATO s Phoenix Taskforce conducted 340 audits last financial year and identified $270 million in tax liabilities from these dodgy businesses. More than $190 million was recouped. The taskforce, set up in 2014, has so far found more than $1 billion in liabilities, and collected close to half of that in owed taxes. Seven people face criminal prosecutions as a result of the audits last year, and 34 others have been banned from acting as company directors. But a PricewaterhouseCoopers report suggests the unlawful use of company structures is actually much wider. It estimated that illegal phoenix companies directly cost the economy between $2.85 billion and $5.13 billion in The Federal Government has vowed to target businesses that try to avoid paying entitlements and laws are also being drafted to prevent workers being left dry when businesses collapse. Financial Services Minister Kelly O Dwyer said the Government was planning to further target company fraud. Phoenixing hurts hardworking Australians it causes a significant drain on the economy, she said.

Australian Financial Review, Australia Author: Madison Marriage Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 19 Printed Size: 260.

private meeting to discuss tactics to prevent the UK competition watchdog from launching a full investigation of the market that could result in a break-up of the biggest firms.

The talks came a day after industry body, the Institute of Chartered Accountants in England and Wales, met with officials at the Competition and Markets Authority to discuss a potential investigation

four, said one person familiar with the matter.

person said. He added: "The CMA has no interest in doing another competition study [of the audit market].

Wales in the City of London and was hosted by its chief executive, Michael Izza Senior executives from each of the big four firms were in attendance, including KPMG's Michelle Hinchliffe, ETs Hywel

The heads of audit or chairs of the next largest firms - BDO, Grant Thornton, Mazars, FtSM Tenon and Moore Stephens - were also present at the meeting, which was scheduled four weeks ago amid

One executive at a smaller accounting firm described the offer of help from larger rivals as "condescending". But another competitor outside of the big four was more open to the idea.

31 Australian Financial Review, Australia Author: Madison Marriage Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 19 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,259 Words: 599 Item ID: Audit giants in secret UK talks Madison Marriage Britain's nine largest accounting firms held an unprecedented private meeting to discuss tactics to prevent the UK competition watchdog from launching a full investigation of the market that could result in a break-up of the biggest firms. Ideas discussed in a meeting on Friday (Saturday AEST) included the big four firms - Deloitte, EY, KPMG and PwC - lending staff, software or expertise to their smaller rivals. The talks came a day after industry body, the Institute of Chartered Accountants in England and Wales, met with officials at the Competition and Markets Authority to discuss a potential investigation of the audit market The CMA officials suggested the accounting firms should put forward their own solutions for tackling the lack of competition in the market and reduce the dominance of the big four, said one person familiar with the matter. If the firms fail to come up with viable propositions then the CMA could be forced to launch an investigation of the audit market which might result in a forced break-up of the largest firms, the person said. He added: "The CMA has no interest in doing another competition study [of the audit market]. It would take too long, be too complicated, and the last one [that started in 2011] did not work out" The meeting was held at the headquarters of the Institute of Chartered Accountants in England and Wales in the City of London and was hosted by its chief executive, Michael Izza Senior executives from each of the big four firms were in attendance, including KPMG's Michelle Hinchliffe, ETs Hywel Ball, PwC's Kevin Ellis and Deloitte's David Sproul. The heads of audit or chairs of the next largest firms - BDO, Grant Thornton, Mazars, FtSM Tenon and Moore Stephens - were also present at the meeting, which was scheduled four weeks ago amid mounting criticism of the accounting profession following a string of high-profile audit scandals. One executive at a smaller accounting firm described the offer of help from larger rivals as "condescending". But another competitor outside of the big four was more open to the idea. "PwC has spent $US500 million ($673.7 million) on technology in recent years. If the big four were to allow access to the same technology, that could bring about change. There would be complications, but there are no easy solutions." The meeting was at times tense, said those with knowledge of the talks. The atmosphere worsened when a fire alarm went off halfway through, leaving several executives "petrified" that they would be spotted by journalists if they were forced to huddle on the steps outside of the building, according to one attendee. The Competition Commission, a predecessor body to the CMA, last investigated the audit market in Several remedies were put in place as a result including forcing listed companies to select a new auditor every 20 years and capping the amount of nonaudit work accounting firms can offer audit clients. But the effectiveness of the reforms have been questioned as the big four have tightened their hold on the audit market, with their share of FTSE 350 auditing increasing from 95 per cent to 98 per cent over the past five years. The CMA said: "The CMA remains open to looking further at the audit sector itself and will work with the [UK accounting regulator] in support of any action it chooses to take." The Competition Commission last investigated the audit market in Several remedies were put in place as a result. Deloitte, EY, KPMG and PwC are under fire in the UK. PHOTO: RYAN STUART

Australian Financial Review, Australia Author: Joyce Moullakis Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 16 Printed Size: 259.

stepping up their preparations for the prudential regulator's banking accountability regime, with at least seven caught by the sweeping measures.

It already applies to the big four banks from this month, although with some transitional arrangements in place.

and RBC Australia. "Depending on the organisation, it will make clear how people are personally impacted and responsible," a senior investment banker said.

covered by regulations in other markets.

executives have been found to have taken excessive risk or displayed bad behaviour.

32 Australian Financial Review, Australia Author: Joyce Moullakis Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 16 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,239 Words: 522 Item ID: UBS, Deutsche, Citi forced to navigate BEAR Joyce Moullakis Global investment banks operating in Australia are stepping up their preparations for the prudential regulator's banking accountability regime, with at least seven caught by the sweeping measures. The Banking Executive Accountability Regime (BEAR) comes into force on July 1, 2019 for banks deemed to be medium and small in Australia. It already applies to the big four banks from this month, although with some transitional arrangements in place. Under BEAR, among other things, banks have to provide detailed "accountability maps" and statements to the Australian Prudential Regulation Authority showing which executives have responsibility for particular functions. The regime also applies to global banks that are regulated by APRA as branches of foreign institutions including Citigroup, UBS, Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank, JPMorgan and RBC Australia. "Depending on the organisation, it will make clear how people are personally impacted and responsible," a senior investment banker said. The Australian Financial Review understands several international firms have sought legal assistance and advice locally to determine whether they must undertake a BEAR assessment or are sufficiently covered by regulations in other markets. Others are of the view that BEAR is a given for their local operations, even though regulations in other markets have already imposed deferred remuneration and clawing of pay in instances where executives have been found to have taken excessive risk or displayed bad behaviour. The Wall Street-based banks and those in Europe clamped down on remuneration structures after the global financial crisis shone a spotlight on pay and lack of accountability. In May, APRA chairman Wayne Byres said BEAR would "provide [banks] an opportunity to demonstrate to the community that accountability is actively practised within the industry". He also noted that process failures or poor decision-making had often been theresultof"a lack of clear accountability for ensuring a product works as it should, a risk is fully understood, or that a system delivers what was intended". "To the extent that BEAR provides a catalyst to untangle that complexity and provide clear accountability for putting things right, it can only be a good thing," Mr Byres said. The BEAR deems a large authorised deposit-taking institution to be one with total "resident assets" of more than or equal to $100 billion on a threeyear average. BEAR strengthens APRA's powers in a number of areas including imposing fines and disqualifying accountable persons. While the Hayne royal commission has focused largely on the retail banks, their global investment banking counterparts have also raised the ire of regulators. The competition regulator is pursuing Deutsche Bank, Citigroup and their client ANZ Banking Group in court alleging criminal cartel behaviour over their handling of a $2.5 billion capital raising in Goldman Sachs, meanwhile, this month agreed to an enforceable undertaking with the corporate regulator to improve controls for book-build messaging - or communications with investors - in equity capital market transactions. The undertaking followed a probe by the Australian Securities and Investments Commission into an $853 million block trade managed by Goldman in private hospital group Healthscope in late APRA chairman Wayne Byres is seeking accountability, PHOTO: LOUIE DOUVIS

Australian Financial Review, Australia Author: Joanna Mather Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 16 Printed Size: 392.

battered the US last year, a bet taken by Australia's largest retail superannuation fund paid off. That"s because the $80 billion MLC Super Fund has exposure to insurance-related securities.

1 per cent a year - hedged into Australian dollars and net of indirect costs - between July, 2007 and March, 2018. The best-known of these securities are catastrophe, or "car, bonds.

Jonathan Armitage, chief investment officer at NAB Asset Management and MLC, said insurance-related investments were attractive because they are completely uncorrelated to equity or bond markets.

"Lastyear's hurricane season in the US there were three or four hurricanes that came through in six weeks which produced some pretty significant damage," Mr Armitage said.

33 Australian Financial Review, Australia Author: Joanna Mather Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 16 Printed Size: cm² Market: National Country: Australia ASR: AUD 7,929 Words: 608 Item ID: Page 1 of 2 Why hurricanes are boosting returns for $80b MLC super Joanna Mather When several large hurricanes battered the US last year, a bet taken by Australia's largest retail superannuation fund paid off. That"s because the $80 billion MLC Super Fund has exposure to insurance-related securities. The MySuper default product has a 2.3 per cent allocation; other offerings have slightly more. The strategy delivered 8.1 per cent a year - hedged into Australian dollars and net of indirect costs - between July, 2007 and March, The best-known of these securities are catastrophe, or "car, bonds. Investors such as MLC take the role of an insurer. They receive a yield - effectively an insurance premium - for taking the risk of a particular natural disaster causing losses above a certain level. Jonathan Armitage, chief investment officer at NAB Asset Management and MLC, said insurance-related investments were attractive because they are completely uncorrelated to equity or bond markets. "Nature doesn't look at Bloomberg every day," he said. During the global financial crisis, for example, shares fell but insurance-related investments performed well. "Lastyear's hurricane season in the US there were three or four hurricanes that came through in six weeks which produced some pretty significant damage," Mr Armitage said. "The industry actually lost money during that period. Our returns were positive... Ifs actually about how you manage risk as well as seeking a return." MLC has a history of investing in another alternative asset class: private equity. MLCs MySuper fund has a 5 per cent allocation at present "Because we've got a very strong capacity in that particular area we continue to see some very interesting opportunities, predominantly offshore," Mr Armitage said. The MySuper product, which has returned just under 8 per cent annually since its inception in 2013, has 51 per cent exposure to equities and there are no immediate plans to alter that "Our expectation is that earnings growth will be lower than it has been for the last three years," Mr Armitage said. "We are expecting mid-single earnings growth. We also expect lower returns than we have seen over the past four tofive years." Mr Armitage is eyeing unlisted assets such as real estate and infrastructure. "Those are areas I think you will continue to see us increase our allocations to," he said. "We just need to be careful about the timing of doing that because those investments will also be impacted by what happens in bond markets and what happens in monetary policy too." Many argue it is greater exposure to unlisted assets that has allowed industry funds to outperform retail funds. Mr Armitage agrees with the assertion by research consultancy Chant West which says industry funds have enjoyed an illiquidity premium worth about 140 basis points. "In some cases those significant allocations to unlisted assets pretty much explain the differences between some funds which in the short term have done better than others," he said. "They have benefited from what's been going on in the bond market As bond yields have gone down, that has benefited unlisted assets because the discount rate that you use to come up with those valuations continues to go down." But while industry funds tend to enter into direct ownership deals, MLC is seeking co-investment opportunities, Mr Armitage said. "What we have learnt from our longterm investments in private equity is now informing the way that we think about things in the wider unlisted space. It could be real estate, it could be infrastructure and within that ports, railways. "We're not there to manage the assets, we're there to provide the capital."

34 Australian Financial Review, Australia Author: Joanna Mather Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 16 Printed Size: cm² Market: National Country: Australia ASR: AUD 7,929 Words: 608 Item ID: Page 2 of 2 Hurricane Irma was among the worst of the hurricanes to hit the US last year. PHOTO: AP

35 Launceston Examiner, Launceston TAS Section: Letters Article type : Letter Classification : Regional : 17,631 Page: 13 Printed Size: 65.00cm² Market: TAS Country: Australia ASR: AUD 356 Words: 129 Item ID: YOUR SAY FINANCIAL INSTITUTIONS WE HAVE all been hearing about the wrongdoings and criminally irresponsible actions of the larger financial institutions. Indeed many of the upper management have admitted such wrongdoing under questioning, and some may face jail time. It would be a much more practical solution, and helpful to those who suffered at their hands, if the individuals and institutions responsible pay all those funds lost by innocent and trusting citizens. I'm as sure as it s possible to be that the upper management personnel probably own valuable assets that could be sold to facilitate payment as well as large superannuation policies.the institutions of course have many millions of dollars to reallocate instead of to shareholders. I don't think the apologies are cutting the mustard. Dianne Scetrine, East Launceston.

West Australian, Perth Author: Nick Bruining Section: Your Money Article type : News Item Classification : Capital City Daily : 147,676 Page: 1 Printed Size: 261.

36 West Australian, Perth Author: Nick Bruining Section: Your Money Article type : News Item Classification : Capital City Daily : 147,676 Page: 1 Printed Size: cm² Market: WA Country: Australia ASR: AUD 4,576 Words: 549 Item ID: Myths blitz for retirees Nick Bruining Life is full of little gotcha moments and retirement is no different. There s many a senior who mutters I never knew that when they discover they ve missed out on benefits or when their retirement plans have been constrained by a misunderstanding of the rules. Here are a few: One of the most common misconceptions is that you can t give things away. Visions of the government slapping some sort of penalty on seniors because they ve decided to help the kids out is a myth. The gifting rules are better understood when we understand that they sit under the deprivation provisions of the Social Security Act. For Centrelink purposes, you can t deprive yourself of assets to get more benefits from Centrelink beyond certain limits. If you give things away, Centrelink will only reduce your assessable assets by up to $10,000 per financial year with a maximum of $30,000 over a rolling five-year period. If you gave your kids $100,000, Centrelink will immediately reduce your assets by $10,000 but the remaining $90,000 sits on the books, being assessed under both the income and asset test as though you still have the money. You don t lose any pension but you ve lost the use of the money. Here s the good news: five years to the day of you making the gift, it drops off the system. In the above $100,000 example if you are asset tested, that would mean an immediate extra $30 per fortnight now and then $450 extra per fortnight, five years from now. If you give assets other than cash away, be aware that the tax man will be watching. For capital gains tax purposes, a gift is regarded as a disposal and may trigger a CGT liability. You ll need to verify the value and if it involves real estate, that will require a proper valuation. The same valuation can be used for stamp duty calculations because the recipient of the gift may have to cough up for that. Next in our list of gotcha moments are the eligibility rules for actually claiming a Centrelink pension, particularly when you have a partner or plan on staying at work beyond 65½, the current age pension eligibility age. Centrelink doesn t care what sort of work you do or how many hours you put in. It is all about income and assets. An income-tested eligible couple could, in theory, be pulling in up to $92,000 a year between them and still qualify for a partpension with the all-important pension concession cards. A single, on the other hand, can earn income of more than $58,000 and also might qualify. Whichever test produces the smallest pension is the one Centrelink will use. Under the asset test, a couple living in a $6 million property with other assets worth up to $844,000 still qualify, as does a single home owner, with an additional $561,250 in assessable assets. Centrelink view singles and couples as a single entity under these tests. With the exception of superannuation, they don t care whose name the investments are in or whose name the investment income applies to. Where only one member of a couple is eligible, the pension is paid to that person at half the couple s rate. In many cases when they reach retirement, the payment jumps to full couple s rate.

West Australian, Perth Section: Your Money Article type : News Item Classification : Capital City Daily : 147,676 Page: 2 Printed Size: 711.

5 for each $1 over $37,000 $37,001 $90,000 $90,001 $180,000 $20,797 plus 37 for each $1 over $87,000 $180,001 and over $54,097 plus 45 for each $1 over $180,000 Tax rates exclude Medicare levy of 2%

37 West Australian, Perth Section: Your Money Article type : News Item Classification : Capital City Daily : 147,676 Page: 2 Printed Size: cm² Market: WA Country: Australia ASR: AUD 12,465 Words: 617 Item ID: Numbers you need to know TAX RATES Nil 0 to $18,200 $18,201 $37, for each $1 over $18,200 $3572 plus 32.5 for each $1 over $37,000 $37,001 $90,000 $90,001 $180,000 $20,797 plus 37 for each $1 over $87,000 $180,001 and over $54,097 plus 45 for each $1 over $180,000 Tax rates exclude Medicare levy of 2% and potential benefits of Seniors and Pensioners Tax Offset SUPERANNUATION CONTRIBUTIONS Can I contribute? Age Under 65 Yes Must have been gainfully employed for 40 hours within 30 consecutive days during the financial year the contribution is made. 75+ No (unless mandated employer contribution) ACCOUNT-BASED PENSION MINIMUM DRAWDOWN ᔡ $25,000 each financial year ᔡ Under 65: 4% ᔡ 85-89: 9% ᔡ 65-74: 5% 90 ᔡ 90-94%: 11% ᔡ 75-79%: 6% ᔡ 95 plus: 14% ᔡ 80-84%: 7% Drawdown percentage of July 1 account balance (or pro rata if started during year) NON-CONCESSIONAL CONTRIBUTION LIST SUPERANNUATION PRESERVATION AGES $100,000 each financial year $300,000 over three years if triggering bring-forward rule ᔡ Born before July 1, ᔡ July 1, 1960-June 30, ᔡ July 1, 1961-June 30, CONCESSIONAL CONTRIBUTION LIMIT ᔡ July 1, 1962-June 30, ᔡ July 1, 1963-June 30, ᔡ After June 30, AGE PENSION ASSETS TEST AGE PENSION INCOME TEST Cuts age pension $3 a fortnight for every $1000 above threshold Test threshold Pension cuts out Single homeowner $258,500 $561,250 Single non-homeowner $465,500 $768,250 Couple homeowners $387,500 $844,000 $1,051,000 Couple non-homeowers $594,500 Fortnightly pension cuts out by 50 for every dollar of Centrelink-assessable income above income test threshold. Full pension No pension Single $172 $ Couple $304 $ Likely to be hit by asset test long before income reaches this level HOW MUCH FORTNIGHTLY PENSION YOU GET SINGLE HOMEOWNER Total assessable assets Including $10,000 of non-financial assets $ COUPLE HOMEOWNERS Including $20,000 of non-financial assets $ Including $50,000 of non-financial assets $ Total assessable assets Including $20,000 of non-financial assets $ Including $50,000 of non-financial assets $ $ or $ or less less $ $ $310,000 $180,000 $ $ $ $320,000 $ $ $190,000 $ $ $ $330,000 $ $ $200,000 $ $ $ $340,000 $ $ $210,000 $ $ $ $350,000 $ $ $220,000 $ $ $ $360,000 $ $ $230,000 $ $ $ $370,000 $ $ $240,000 $ $ $ $380,000 $ $ $250,000 $ $ $ $390,000 $ $ $260,000 $ $ $ $400,000 $ $ $270,000 $ $ $ $425,000 $ $ $280,000 $ $ $ $450,000 $ $ $290,000 $ $ $ $475,000 $ $ $300,000 $ $ $ $500,000 $ $ $325,000 $ $ $ $525,000 $ $ $350,000 $ $ $ $550,000 $ $ $375,000 $ $ $ $600,000 $ $ $400,000 $ $ $ $650,000 $ $ $425,000 $ $ $ $700,000 $ $ $450,000 $ $ $ $750,000 $ $ $475,000 $ $ $ $800,000 $ $ $500,000 $ $ $ $825,000 $75.60 $75.60 $525,000 $ $ $ $844,000 Nil Nil $550,000 $50.20 $50.20 $50.20 $561,250 Nil Nil Nil Full pension and minimum pension results in green. Results in orange are generated by income test. Results in black text are generated by assets test. ᔡ Total assessable assets includes financial and non-financial assets subject to Centrelink means testing. ᔡ Financial assets include super, bank accounts, shares and managed investments. ᔡ Non-financial assets include cars, furniture, sporting gear and artwork. Income test generally covers only financial assets. ᔡ Assets test includes both financial and non-financial assets. Including $75,000 of non-financial assets $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $75.60 Nil

38 Townsville Bulletin, Townsville QLD Author: Anthony Keane Section: General News Article type : News Item Classification : Regional : 16,484 Page: 22 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 1,056 Words: 412 Item ID: Short-term super surges are scary, so staying put pays off ANTHONY KEANE RELYING on one year s financial performance to pick your super fund is dangerous for your wealth, and new numbers prove it. An analysis of 10 years of superannuation fund performance by QSuper has found that chasing fast-growing funds can slash average annual returns almost in half. QSuper found that someone who started with a $50,000 balanced superannuation fund option in July 2007 and swapped their super each year to the previous year s best balanced fund ended up with $68,000 by 2017, compared with $86,700 for a person who stuck with a consistently good fund. The swapper achieved annual returns averaging 3.13 per cent over the 10 years which included the Global Financial Crisis while the saver who stayed put earned 5.66 per cent. QSuper head of investment strategy Damian Lillicrap said 80 to 90 per cent of investment risk in a typical balanced fund came from shares, also called equities. Very good one-year returns, in a year when equities have done well, could be a sign that the fund is not very diversified, he said. A good rule of thumb could be to avoid the top funds in a good equity year and seek out those that are among the top in a poor equity year provided they have good long-term returns. Last year s top performer based on a one-year return may not be in the top 10 or even top 25 the following year. Mr Lillicrap said decisions made on one-year returns were dangerous, and people should check how their fund performed over 10 years. People can compare funds using websites such as morningstar.com.au, superratings.com.au, chantwest.com.au and canstar.com.au, but these can still be tricky to navigate. SuperRatings chief executive officer Kirby Rappell said a good starting point was your annual statement, which should show how your super compared with various benchmarks. He said people should check returns over multiple time periods such as three, five and 10 years to see how funds averaged out. It s about making sure there s a good long-term history rather than it just being flavour of the year, Mr Rappell said. Canstar s group executive financial services, Steve Mickenbecker, said people should make sure they were comparing similar fund options. Don t compare oranges with Ferraris, he said. A lot of outstanding returns come from asset allocation, and there s a cycle. If you are always looking in your rear view mirror you might have missed the cycle where the asset did well...

Daily Telegraph, Sydney Author: Anthony Keane Section: Business News Article type : News Item Classification : Capital City Daily : 232,067 Page: 22 Printed Size: 228.

39 Daily Telegraph, Sydney Author: Anthony Keane Section: Business News Article type : News Item Classification : Capital City Daily : 232,067 Page: 22 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 10,774 Words: 422 Item ID: Think like a rich investor on a regular budget ANTHONY KEANE RICH Australians have a different mindset when it comes to wealth, and habits that everyday investors can aim to mimic. The latest Capgemini World Wealth Report ranked Australia ninth globally in terms of numbers of high net worth individuals, at 278,000. High net worth individuals are people with net investment assets of $US1 million ($1.3 million) apart from their home and their Australian numbers have grown 9.8 per cent in a year. The word millionaire doesn t have the lustre it once did, and growing numbers of investors have $5 million-plus fortunes. Finance specialists say we can learn from them. Thinking like rich people means broadening your mind beyond property and shares, surrounding yourself with professional advisers and using different investment structures to lower your tax and risk. I m seeing more clients with multi-million dollar portfolios, said Adrian Frinsdorf, director of wealth advisory at William Buck. With the sale of successful businesses and the rise of investments over the last decade, wealthy investors have moved from rich to very rich, he said. Often these people come from successful business grounds or established families. Traditionally they are usually in their 50s but I m also seeing more people in their 30s seeking advice, having built exceptional wealth through smart business decisions. Financial strategist Theo Marinis, who has dozens of clients with more than $1 million of assets and many with $5 million-plus, said rich investors were not afraid to pay for good advice that helped them in areas such as minimising tax. It s the old story: the rich get richer, he said. They have greater capacity to afford to pay for advice to structure it. Mr Marinis said multimillionaires often used trusts and company structures but these were not usually necessary for those with $1 or $2 million because superannuation s low tax structure could work just as well. They also use investment bonds, which pay a maximum tax rate of 30 per cent and the investment is tax free if held for at least 10 years. You can do some of the same things yourself, Mr Marinis said. The family home, exempt from capital gains tax, was another tool for wealthy people to build and store wealth, he said. They diversify their portfolios and don t put all their eggs in one basket. They don t have it all in shares. Mr Frinsdorf said while average mum-and-dad investors focused on building enough assets for retirement, wealthier investors focused more on maximising their estate for their children. h y Start saving today moneysaverhq.com.au

40 Daily Telegraph, Sydney Author: Sophie Elsworth Section: Business News Article type : News Item Classification : Capital City Daily : 232,067 Page: 31 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 13,514 Words: 522 Item ID: How to invest your tax return Aussies are eagerly awaiting their tax refunds, but plan to spend the money wisely, writes Sophie Elsworth MILLIONS of taxpayers will receive a much-needed cash injection from the Australian Taxation Office in the coming weeks and many plan to spend their tax return money wisely. Australians often rush to get their tax returns filed in the first few months of the financial year in the hope they will receive a wad of cash. But experts warn taxpayers to use their returns smartly and not just fritter them away. New data from financial institution ME quizzed 1000 Australians and found 43 per cent are expecting to save or invest their tax refund. And for those carrying debts, about 27 per cent are planning to cull debts and tip the money into their home loan or pay down credit card debt. Rising Tide Financial Services chief executive officer Chris Browne said Australians should be careful with any money they receive but also leave a portion for play. Spend 80 per cent wisely and spend 20 per cent on fun, he said. Pay off your credit card debt and use it as an opportunity to live credit card free in the next financial year. Many credit cards attract interest rates above the 20 per cent mark, so it s vital cardholders carrying plastic debt chip into this first. Mr Browne said ditching credit cards altogether is a way to wipe the slate clean. Latest ATO figures show in the financial year 13.5 million individuals and sole traders lodged a tax return themselves or through an agent and the average refund was $2500. The ATO s assistant commissioner, Kath Anderson, said the growth in pre-fill information available for those lodging made it much easier to file their return. For the year we prefilled over 81 million records, to assist taxpayers and agents to get returns right, she said. We expect to be able to prefill even more data this year as a result of increased data received from third parties. ME s general manager of deposits John Powell said getting a tax refund is a great way to kickstart the new financial year in a healthier state. Very few Australians factor their tax return into their household budget so it can make a big difference to your financial wellbeing when used wisely, he said. While a home loan has one of the lowest rates of debt it s also a long-term affair and any lump sum you tip in today can knock years off the term and save you a bundle in interest along the way. Other alternatives include tipping money into your super fund and maximising the benefits of compounding interest. Mr Browne also suggests those carrying a Higher Education Loan Program (HELP debt) from university degrees should pay it off. He said it s financial noise and despite being one of the cheapest forms of debt its existing rate is the consumer price index (CPI) at 1.9 per cent it s a good debt to pay off. Pay off your HELP debt to free up cash and increase your take-home pay, he said.

41 Daily Telegraph, Sydney Author: Anthony Keane Section: Business News Article type : News Item Classification : Capital City Daily : 232,067 Page: 31 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 8,175 Words: 412 Item ID: Short-term super surges are scary, so staying put pays off ANTHONY KEANE RELYING on one year s financial performance to pick your super fund is dangerous for your wealth, and new numbers prove it. An analysis of 10 years of superannuation fund performance by QSuper has found that chasing fast-growing funds can slash average annual returns almost in half. QSuper found that someone who started with a $50,000 balanced superannuation fund option in July 2007 and swapped their super each year to the previous year s best balanced fund ended up with $68,000 by 2017, compared with $86,700 for a person who stuck with a consistently good fund. The swapper achieved annual returns averaging 3.13 per cent over the 10 years which included the Global Financial Crisis while the saver who stayed put earned 5.66 per cent. QSuper head of investment strategy Damian Lillicrap said 80 to 90 per cent of investment risk in a typical balanced fund came from shares, also called equities. Very good one-year returns, in a year when equities have done well, could be a sign that the fund is not very diversified, he said. A good rule of thumb could be to avoid the top funds in a good equity year and seek out those that are among the top in a poor equity year provided they have good long-term returns. Last year s top performer based on a one-year return may not be in the top 10 or even top 25 the following year. Mr Lillicrap said decisions made on one-year returns were dangerous, and people should check how their fund performed over 10 years. People can compare funds using websites such as morningstar.com.au, superratings.com.au, chantwest.com.au and canstar.com.au, but these can still be tricky to navigate. SuperRatings chief executive officer Kirby Rappell said a good starting point was your annual statement, which should show how your super compared with various benchmarks. He said people should check returns over multiple time periods such as three, five and 10 years to see how funds averaged out. It s about making sure there s a good long-term history rather than it just being flavour of the year, Mr Rappell said. Canstar s group executive financial services, Steve Mickenbecker, said people should make sure they were comparing similar fund options. Don t compare oranges with Ferraris, he said. A lot of outstanding returns come from asset allocation, and there s a cycle. If you are always looking in your rear view mirror you might have missed the cycle where the asset did well...

The Australian, Australia Author: Anthony Klan Section: General News Article type : News Item Classification : National : 94,448 Page: 2 Printed Size: 191.

42 The Australian, Australia Author: Anthony Klan Section: General News Article type : News Item Classification : National : 94,448 Page: 2 Printed Size: cm² Market: National Country: Australia ASR: AUD 3,860 Words: 498 Item ID: APRA s shield of secrecy exposed EXCLUSIVE ANTHONY KLAN The regulator for the nation s entire $2.6 trillion superannuation industry has for many years misled the public by falsely claiming it is unable to comment regarding its policing of the nation s biggest super funds. Representatives for the Australian Prudential Regulation Authority have, for almost two decades, claimed they were unable to comment on individual super fund managers under the secrecy provisions of the 1998 APRA Act. APRA does not comment on its discussions or actions with respect to individual financial entities, even on ground, as it would be a breach of Section 56 of the Australian Prudential Regulation Authority Act 1998, spokesman Ben McLean said. That statement was in response to one of many recent unsuccessful requests the newspaper has made seeking an interview with APRA chairman Wayne Byres. This newspaper has for the past four months been conducting an investigation into the nation s $2.6 trillion super retirement nest egg and discovered billions of dollars are fleeced from the public every year by retail or for-profit funds the vast majority of which being run by the big four banks, AMP and IOOF by way of vast, unnecessary, fees and charges. The Australian had contacted APRA for information about the IOOF Portfolio Service Superannuation platform, whose 340,000 investors, who collectively have $25.8 billion invested in the group, have earned far less than risk-free cash investments over the past decade, with those returns even less than the rate of inflation. The group charged its super members over $400 million in fees and charges alone in the year to June 30, It was revealed on Wednesday almost 100 of IOOF s employees had written to management saying recent moves to hike fees even further with that move undertaken amid a royal commission into financial services, which includes examining the superannuation sector were unfathomable, inconceivable and quite simply to increase revenue to IOOF. The Australian read the ASIC Act and provided it to the regulator. Part 56 (7B) clearly states APRA can provide information regarding its opinion as to whether or not a body regulated by APRA is complying, or was complying at a particular time, with a particular provision of a prudential framework law. Despite APRA being shown this section of APRA s own act, Mr Byres refused to talk to The Australian. In a meeting with economists on Wednesday Mr Byres inferred the vast number of cases of customer rip-offs and gouging by the major banks and financial institutions uncovered by the royal commission were in some way the fault of those customers. It is important that the concept of caveat emptor remains in the system, he told the group. The term caveat emptor is Latin for let the buyer beware. Mr Byres refused to take questions from media after his speech at the event. APRA general manager of corporate affairs Paula Hannaford, formerly a spokeswoman at Macquarie Bank, also stopped reporters from asking Mr Byres questions after the address. Do you know more? klana@theaustralian.com.au

The Australian, Australia Author: Glenda Korporaal Section: Business News Article type : News Item Classification : National : 94,448 Page: 19 Printed Size: 162.

43 The Australian, Australia Author: Glenda Korporaal Section: Business News Article type : News Item Classification : National : 94,448 Page: 19 Printed Size: cm² Market: National Country: Australia ASR: AUD 3,274 Words: 432 Item ID: Latitude eyes bank deals to fund personal loans EXCLUSIVE GLENDA KORPORAAL LENDING Latitude Financial chairman Mike Tilley is eyeing so-called white labelling deals with banks and other lenders, which could see the consumer finance group emerge as a major funder of personal loans or credit cards. Latitude already funds consumer loans for Kiwibank in New Zealand. The bank offers the product to its customers while Latitude handles the business and administration. We actually manufacture the personal loans and handle all the payments, Mr Tilley told The Australian. In Australia, Latitude funds some of the lending products to peer-to-peer finance house SocietyOne. Latitude is slated to list on the ASX later this year in a $5 billion float, making it one of the biggest initial public offerings this year. It has more than 2.6 million customers, a lending book of more than $7 billion, and some 1600 employees. Mr Tilley won t comment on any plans to list the company. The company is understood to be in talks with a range of banks, particularly the regional lenders in its efforts to offer similar services. This is a change that is just starting to happen, said Mr Tilley, the former boss of Challenger Financial and the previous chairman of Merrill Lynch Australia. There is now greater consumer demand for excellence in service and delivery. Everyone is having to go and say they need to be better or do they need to be trying to do the business. He says credit cards could be another area where the banks still want to offer a product to their customers but use outside providers to handle the business. He sees that opening up the market for specialist car lenders like Latitude at a time when the big banks are reviewing their role in the car loan business. You have to question whether the big four banks will be major participants in the car loan market in another two to three years, he says. It does not deliver a high return on equity and it is hard for them to be better at it than anyone else. In an earlier interview with The Weekend Australian, Mr Tilley rejected suggestions that Latitude s growth as a consumer credit company would be hampered by a more aggressive corporate regulator, the Australian Securities & Investments Commission, taking a stricter view of consumer financing in an environment where the royal commission is lifting the lid on poor practices in the financial services industry. He said Latitude s business was not being affected differently to other players in the financial sector, and that working with regulators was all part of being in the financial services business.

The Australian, Australia Author: Cliona O'Dowd Section: Business News Article type : News Item Classification : National : 94,448 Page: 20 Printed Size: 168.

44 The Australian, Australia Author: Cliona O'Dowd Section: Business News Article type : News Item Classification : National : 94,448 Page: 20 Printed Size: cm² Market: National Country: Australia ASR: AUD 3,395 Words: 484 Item ID: MLC tips lean years for super returns CLIONA O DOWD FUNDS Investors accustomed to the bumper super returns of recent times could soon get a rude awakening, with the coming years set to be leaner and meaner as global markets grapple with a cloudy outlook due to the looming trade war while Australia braces for a period of sluggish earnings growth. NAB chief investment officer Jonathan Armitage said MLC Super was positioning itself for a downturn in equity markets by using derivatives to manage risk. We ve been able to put in place strategies that protect us from an outcome where equity markets go down. And that s been driven by the fact that as you move into 2019 and 2020 the earnings growth outlook is becoming less certain, he said. We were also able to take advantage of some of the market conditions earlier this year, which allowed us to put those insurance policies in place over our equity exposure and being able do it at a very low net cost to the fund as a whole. Due to the challenges he sees hitting markets in the near term, Mr Armitage is scaling the equity exposure of MLC s super fund, which has about $80 billion in funds under management and 1.2 million members. Both domestic and global shares have had pretty reasonable returns over the past three to four years and one of the things that s been driving that is strong earnings growth. Looking forward we think that earnings growth is starting to slow down and that s particularly true about the market here in Australia. With strong credit growth looking unlikely in the financial services sector and commodity prices looking unlikely to strengthen any time soon, he sees little in the way of catalysts to drive our market higher in the near or medium term. The balance of probabilities is subdued returns will continue, given our thinking about where we are in the cycle and the earnings growth opportunities that you see from this market, Mr Armitage said. We have been through a five-year period where returns for investors across the super system have been very strong and I think the next two to three years are going to be more challenging. We are seeing the end of the period of ultra-accommodative monetary policy in developed markets and there are more uncertainties for future earnings growth prospects and future returns than there have been for some time. Mr Armitage still sees opportunity in the local market, largely in the services sector, including professional services and healthcare companies. There are some areas of manufacturing as well where you ve got specialised manufacturing, there aren t that many competitors and their products aren t commoditised, he said. MLC also increased its exposure to emerging markets, which look to have good earnings growth opportunities and more attractive valuations. While some markets are at risk from the US-China trade war, Mr Armitage said much of that had already been priced in.

The Australian, Australia Author: Ben Wilmot Section: Business News Article type : News Item Classification : National : 94,448 Page: 21 Printed Size: 196.

the West Australian capital has prompted AMP Capital to join Primewest in putting its stake in Exchange tower on the block, with the entire complex likely to garner offers close to $350 million.

45 The Australian, Australia Author: Ben Wilmot Section: Business News Article type : News Item Classification : National : 94,448 Page: 21 Printed Size: cm² Market: National Country: Australia ASR: AUD 3,961 Words: 409 Item ID: AMP, Primewest to cash in on transformed Exchange tower BEN WILMOT OFFICE The surging value of office assets in the West Australian capital has prompted AMP Capital to join Primewest in putting its stake in Exchange tower on the block, with the entire complex likely to garner offers close to $350 million. The sale will see AMP Capital cash in on rapidly improving investment sentiment on Perth as its leasing markets pick up and institutional players once again move into the city. Primewest last month flagged that it would sell its half-stake in the Exchange Tower. Its move prompted questions about whether AMP Capital would either seek to buy this interest or also sell its holding, potentially boosting the price received. The stake in the 40-level tower is held by AMP Capital s Wholesale Office Fund, which owns a high quality portfolio of buildings around Australia. The fund last September bought a 25 per cent stake in Brookfield s $1.8 billion Sydney office and shopping development Wynyard Place. The trust, alongside the AMP Capital Diversified Property Exchange Plaza, Perth Fund and superannuation fund REST, is also undertaking the $3bn Quay Quarter Tower at 50 Bridge Street. Both vendors should do well out of selling the tower as interest in Perth is at a high point. Primewest picked up its stake in the tower at 2 The Esplanade two years ago from the Private Property Syndicate, run by Vicinity Centres. That deal valued the complex at $227m, but Primewest and AMP Capital have since undertaken a capital expenditure program, lifting the building s quality and slashing its vacancy. The transformed premiumgrade office building has won several new tenants, taking its occupancy to more th an 90 per cent. The pair are undertaking a $50m upgrade, including improvements to the lifts, a reworked forecourt and lobby, and increased retail presence. The 34,479sq m building has tenants including Patersons, Morgan Stanley, Bell Potter, Allen & Overy, Bain International, Mitsubishi Australia, Mitsui, RSM, Azure Capital, Arup and Knight Frank. JLL s John Williams and Inc RE s Josh Cullen are marketing the complex. More than $250m worth of deals are already in train in Perth as values pick up. The listed Elanor Investors Group has set up a new managed fund, the Work- Zone West Syndicate, to buy its namesake property in Perth. The syndicate last month acquired the office complex from a Charter Hall fund for $125.25m. The listed Growthpoint Properties Australia is also buying the Investa Office Fund s block at 836 Wellington Street in Perth for over $100m.

The Australian, Australia Author: Bridget Carter Scott Murdoch Section: Business News Article type : News Item Classification : National : 94,448 Page: 18 Printed Size: 361.

au/businessrevieww IFM ed in motorway bid Australian superannuation fund investor IFM has added fire power to its efforts to buy a $6 billion-odd stake it the entity that controls the WestConnex

Canadian-based pension fund OMERs is believed to have joined with IFM in the later stages, while Dutch fund APG has also been in the mix for some time.

46 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 7,295 Words: 533 Item ID: DATAROOM IFM ed in motorway bid Australian superannuation fund investor IFM has added fire power to its efforts to buy a $6 billion-odd stake it the entity that controls the WestConnex Sydney motorway project as the competition edges closer towards a conclusion. Canadian-based pension fund OMERs is believed to have joined with IFM in the later stages, while Dutch fund APG has also been in the mix for some time. Earlier, OMERS previously known as Borealis Infrastructure had been competing for WestConnex as part of the Netflow consortium, which included Australian infrastructure investor Plenary, Ferrovial s Spanish toll road subsidiary Cintra and other superannuation funds. But the consortium abandoned its pursuit of WestConnex with speculation about ructions in the camp and some funds walking away, causing the efforts to buy WestConnex to collapse. That makes for a strongly fought out two-way contest between the IFM consortium and the listed toll road operator Transurban and its ers, which is said to be throwing everything at the process in its efforts to win. Transurban is expected to hear on Thursday from the Australian Competition & Consumer Commission on its views about the listed group owning the three-stage tolling project while it remains a dominant operator of toll roads in Sydney already. Final bids are due to on July 23. One thought is that the ACCC may argue that Transurban may need to divest another Sydney toll road to control with its partners a 51 per cent stake in Sydney Motorways. It owns WestConnex and has been put up for sale by the NSW Government through Goldman Sachs. Some believe its M7 motorway interests would most likely be sold, while others say the Eastern Distributor is what it is most likely to divest. Others say any such ruling by the competition watchdog is unlikely. While the majority owner of Sydney Motorways will only be allowed to lift the price of the toll roads at the level of inflation, some say Transurban s dominance may give the company an unfair advantage for state toll road project auctions in the future. Should IFM, the manager of $92.2bn worth of funds, miss out on WestConnex, it will be interesting to see what sort of approach it takes towards a potential rival bid for the listed gas pipes owner APA Group. A consortium involving companies linked to the Cheung Kong empire have put forward a $13bn takeover bid for APA, but a strong level of scepticism exists as to whether the deal will get approval from the ACCC and the Foreign Investment Review Board. Investment bank UBS has been working to create a rival consortium to bid for APA should the CK Infrastructure-led bid fail, and it is understood that it is working on behalf of IFM. The thinking is that other Canadian super funds such as Canada Pension Plan, Ontario Teachers and potentially AMP Capital could also join the consortium. However, so far it is understood that IFM is not super keen on the idea of going head to head with CK on price. Some believe IFM will only turn its attention to APA seriously if its quest to buy the 51 per cent interest in Sydney Motorways is unsuccessful. The WestConnex project EDITED BY BRIDGET CARTER carterb@theaustralian.com.au SCOTT MURDOCH murdochs@theaustralian.com.au

47 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 8,771 Words: 891 Item ID: Page 1 of 2 MAJOR LENDERS STILL OPERATE UNDER 10 PER CENT LENDING CAP Banks slow to meet loan rules EXCLUSIVE MICHAEL RODDAN FINANCIAL SERVICES Australian banks have been dragging their feet in meeting new rules on home lending, despite regulatory appeals to wean the industry off riskier loans. The Australian understands no major bank has yet been given the green light to grow their property investor lending book above 10 per cent, despite the regulator declaring the removal of the cap in April. The Australian Prudential Regulation Authority had imposed the cap on lending in late 2014 as part of a package of measures to cool the $1.7 trillion mortgage market. However, in April APRA said it would allow banks to again bypass the lending limit on property investors if they could prove to the regulator they were targeting lower-risk borrowers. To do this banks were required to put limits on lending to borrowers with high debt-to-income ratios as well as introduce a maximum debt-to-income ratio for individual borrowers. The Australian surveyed more than a dozen of the country s major banks and regional lenders. None was able to confirm that it had been granted permission by the APRA to remove the 10 per cent investor lending growth cap. The failure to gain approval by the banks, which control close to 90 per cent of the housing market, reveals the regulator is still worried about lending standards among the major banks. Last week APRA chairman Wayne Byres said the era of largescale overhauls of lending standards and lending restrictions was drawing to a close. While there is more good housekeeping to do, the heavy lifting on lending standards has largely been done, Mr Byres said in a major speech in Sydney. APRA, which regulates about 100 banks and credit unions, is understood to have already granted permission to increase lending to about a dozen banks. But when contacted by The Australian, none of the four major banks, Macquarie Group, or a number of regional and international lenders, could confirm it was lending to property investors outside the 10 per cent cap. Obtaining permission from APRA to lend to investors at a growth rate of over 10 per cent could take either weeks or years, depending on how much of an overhaul is required by a lender. It also shows that some banks, many of which had campaigned fiercely to remove the investor lending cap, may not have the office systems to measure the debt levels of their borrowers, or are more interested in selling large loans to borrowers with smaller incomes than to property investors. Last year, APRA was forced to delay new requirements for information about debt-to-income levels of borrowers because banks said they lacked the resources to compile the data or had not been collecting the specific data already. At the time, APRA general manager of statistics Katrina Ellis slammed the banks and said a prudent bank with material exposures to residential mortgage lending would invest in management information systems. Shaw & Partners analyst Brett Continued on Page 20 Housing loan approvals $bn OWNER- OCCUPIERS TOTAL 5 INVESTORS Sources: ABS; RBA

48 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 8,771 Words: 891 Item ID: Page 2 of 2 Lenders slow to meet APRA s rules Continued from Page 17 Le Mesurier said banks were still some way away from perfecting their systems. Mr Le Mesurier there was also probably a lack of demand to want to clear the hurdles because there is a lack of demand for investor loans as house prices were softening around the country. Why put resources towards compliance when the demand is not going to be there, he said. ANZ said it had responded by APRA s deadline and outlined how it was meeting capital requirements and its measures for future investor lending. We are currently working on specific measures to address debt-to-income metrics, as is the industry more broadly, an ANZ spokesman said. CBA said it was restricted in what information it could provide ahead of the reporting of its full-year results on August 8, while Westpac the nation s biggest lender to investors is working to gain approval on a range of compliance measures with APRA. National Australia Bank is growing below the 10 per cent cap and has not yet sought approval from APRA. Macquarie, which last week hiked variable interest rates for property investors, declined to comment on its interactions with regulators. Despite presenting a united front through a joint submission to the Productivity Commission inquiry into competition in the financial system, in which Bank of Queensland, Bendigo and Adelaide Bank, Suncorp and AMP argued against prudential limits on loans that lock in the dominance of the big four banks, none of the regional banks could confirm it had gained approval. Suncorp Bank chief executive David Carter said the bank had not sought approval but planned to do so later in the year. He said Suncorp was prioritising other activities and that the proposed changes for capital requirements left the bank circumspect about growing its investor loan book strongly until there was greater clarity about the rules. Bendigo & Adelaide Bank, HSBC and ING Direct declined to comment. Bank of Queensland said it had not prioritised the removal of the cap. We not foresee any major hurdles to obtaining removal consent, BoQ said. Melos Sulicich, chief of the Tasmanian lender MyState, said the bank was comfortably under the 10 per cent cap. AUSE01Z01MA - V1 We are currently working on specific measures to address debt-to-income metrics, as is the industry more broadly. ANZ SPOKESMAN

The Australian, Australia Author: Pamela Williams Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: 706.

earlier PAMELA WILLIAMS SENIOR WRITER The key document that sparked AMP to commission Clayton Utz last year to investigate its fees for no service scandal was already in the sights of the corporate

49 The Australian, Australia Author: Pamela Williams Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 14,267 Words: 1143 Item ID: Page 1 of 3 ASIC net closes in on AMP s orphans EXCLUSIVE Fee-for-no-service risks had been assessed years earlier PAMELA WILLIAMS SENIOR WRITER The key document that sparked AMP to commission Clayton Utz last year to investigate its fees for no service scandal was already in the sights of the corporate regulator before the consultancy s report was ever completed and handed to the AMP board. This explosive AMP internal document, which became known at the corporate regulator as the orphan contracts document, five years ago canvassed the severe risks for AMP if it did not cease charging fees on so-called orphan policies where clients had no financial adviser. The Australian Securities & Investments Commission was sharply tightening its focus on AMP last year with demands for historic paperwork after several years of investigating AMP and big banks over fees for no service. The formal demand from ASIC for all records relating to the orphan contracts document was sent to AMP before the Clayton Utz report was given to AMP s board on October 16 (and hand-delivered by chairman Catherine Brenner to ASIC as a courtesy) suggesting that perhaps ASIC already had whistleblowers. s and documents uncovered by The Australian show the orphan document was part of a sweep by ASIC when AMP general counsel Brian Salter wrote to Clayton Utz partner Nick Mavrakis on October 11 last year while Mr Mavrakis was still finishing the Clayton Utz report. Mr Salter ed: You ll see from the attached that ASIC has issued a section 33 notice, for, amongst other things, all records relating to the above document, (the FOFA Practice Proposition Stream Orphan Contracts Policy and Process Changes & Recommendations) which it has defined as the Orphans Contract Document. You will recall that it was the existence of this document (as well as the legal advices) that led to the CU investigation. The orphan contract document dated 20 June 2013 had warned under the heading Risks and Issues of potential reputational damage to AMP of continuing to charge fees while providing no service in return. More importantly, the document warned of the legal and compliance issues of charging fees for no service for any period Continued on Page 20 You ll see from the attached that ASIC has issued a section 33 notice for, amongst other things, all records relating to the above document which it has defined as the Orphan Contracts Document. sent tby then AMP group general lcounsel lbrian i Salter S to Nicholas Mavrakis of Clayton Utz on October 11, 2017

50 The Australian, Australia Author: Pamela Williams Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 14,267 Words: 1143 Item ID: Page 2 of 3 ASIC net closes in on AMP orphans Continued from Page 17 of time. The legal and compliance issues flagged in the document could include breach of contract, and breach of general licensee obligation to act efficiently, honestly and fairly. The Clayton Utz report has been swept up in controversy over allegations in the royal commission into banking misconduct that it was not independent, following evidence that numerous changes and clarifications had been requested by AMP lawyers and the chairman. Mr Salter s to Mr Mavrakis on October 11, 2017, five days before the Clayton Utz report went to the board, asked Mr Mavrakis to conduct further searches to substantiate Clayton Utz s findings that the Orphan Contracts document had never been sent to anyone within the company, and had never been finalised (and thus had no formal standing). Mr Salter continued: This document is dealt with in paragraph 25 of the CU report where Clayton Utz concludes: We have not located evidence that this document was actually sent, and the consensus amongst the interviewees was that it was never finalised. Mr Salter s was released in a trove of exhibit documents by the royal commission into banking misconduct, along with the orphan contracts document itself. The document listed more than 40 managers and executives on its distribution list, however the version made public in the royal commission was not signed off and Clayton Utz concluded it was never sent. Mr Salter wrote: Nick can you please list the searches and other materials that you base these conclusions on. We will need to do this to convince ASIC that the document did not have any formal or other official standing in the organisation. Can we please have this by COB tomorrow as I want to understand how strong our case is regarding the status of this document as we formulate our strategy for the next phase of engaging with ASIC. The rest of the was redacted for legal privilege. But it was clear that the orphan contracts document was vital. Not only had this document triggered the 2017 Clayton Utz investigation when it was discovered (in response to earlier ASIC notice demands), but ASIC wanted all records relating to the document. The author of the orphan contracts document was former AMP business analyst, Brian Magellan. According to data on the front of the document, Mr Magellan had created several versions between May 20 and June 20, A copy of the document lodged with the royal commission this year was the fifth version. Mr Magellan s work on the AMP fees for no service issue continued through By November 2013, Mr Magellan had left AMP. Mr Magellan was not interviewed by Clayton Utz, which noted in its final report to the AMP board: We have attempted to contact him without a response. The 2013 document was one of a string of reports AMP had prepared for the new Future of Financial Advice reforms introduced by the Labor Government in The orphan contracts document was 22 pages of analysis of the types of fees for no service AMP s financial planning arm and divisions were engaged in, and the impact of the FOFA reforms. The June 2013 document had concluded more than 12,000 customer contacts had been impacted by the fee for no service issues. ASIC has continued to press AMP hard in recent months for further information on the orphan contracts document. ASIC complained to AMP in a letter on 14 March this year that AMP had failed to produce relevant material that related to the FOFA Program Steering Committee of which former AMP CEO Craig Meller was recorded as being the Sponsor and Business Owner, and which appears to have overseen the work of various FOFA project streams. Clayton Utz concluded in its report on fees for no service that Mr Meller had no knowledge of the 90-day exception (whereby AMP kept clients in certain buckets for three months while charging them fees for no service), or any knowledge of ring-fencing (another practice), and had not seen any legal notices about these issues. Mr Meller resigned in April this year after a week of uproar over fees for no service in the royal commission. He was managing director of AMP Financial Services in On March 18, 2013, he was the author of a signed letter to Treasury officials in Canberra responding to the government s FOFA reforms.

service in return. Legal/compliance issues with retaining OFA (ongoing fee arrangement) without providing service in return for any period of time i.

51 The Australian, Australia Author: Pamela Williams Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 14,267 Words: 1143 Item ID: Page 3 of 3 RISKS & ISSUES Reputational damage to AMP Group due to retaining ongoing fee without providing service in return. Legal/compliance issues with retaining OFA (ongoing fee arrangement) without providing service in return for any period of time i.e breach of contract, and breach of general licensee obligation to act efficiently, honestly and fairly. May result in widespread complaints from clients to AMP and ASIC Internal AMP briefing note prepared in June 2013 warning Internal AMP briefing note prepared in June 2013 warning about risks of charging fees on so-called orphan contracts The document concluded more than 12,000 AMP customers had been affected by fee-for-no-service issues HOLLIE ADAMS

52 The Australian, Australia Author: Turi Condon Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 14,793 Words: 1055 Item ID: Page 1 of 3 QIC s Frawley tackles the big deals head-on EXCLUSIVE TURI CONDON PROPERTY EDITOR Damien Frawley pauses for a moment. It s been six big years since the investment banker and former Wallaby took on the chief executive role at the $85 billion Queensland Investment Corporation. There s been a $4bn-plus US retail play, local and international infrastructure buys, a majority stake in Australia third-biggest beef producer and an expanded private equity business. There are some investments that the Queensland government-owned fund manager needs to digest, says Frawley. There was an early decision to focus on key areas like infrastructure, real estate, private equity and liquid markets such as fixed income. Am I going to wake up tomorrow and say we need an Aussie equities business? I don t think so. The no-nonsense Queenslander, who played 10 rugby union tests for Australia in the late 1980s, says there s a focus on extracting value from the existing businesses, though this may mean diversifying geographically. And asset markets are hot. It s been really hard to buy infrastructure assets, Frawley says. QIC owns stakes in the Port of Melbourne, Brisbane Airport and has energy investments locally and overseas. But recently it missed out on some multi-billiondollar international plays. Demand for infrastructure becomes a bit of a cost-of-capital shootout in these processes. We ve come second a few times recently on some very large-scale infrastructure assets that have been put up in Europe, he adds. QIC recently missed out on a waste-to-energy asset in London and a transmission system in Finland, each a couple of billion dollars that sold in the 8 per cent range. We ve got return expectations that we would like to meet, and we ve committed to, of somewhere between 10 and 12 per cent. Obviously 10 or 12 per cent isn t going to do the trick these days. But he doesn t see this as a problem. I give credit to my team for sometimes running second, Frawley says. I don t go down there and beat them up because they ran second. You have maintained your discipline, you have held your line. The markets have been heated for some time and QIC is turning its attention to alternatives in infrastructure such as renewable energy and new development or greenfield projects like Brisbane s Cross River Rail, and it is likely to bid on other transport projects. Meanwhile, corporate balance sheets are increasingly focused on core assets. Sometimes, things Continued on Page 20

The Australian, Australia Author: Turi Condon Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: 732.

53 The Australian, Australia Author: Turi Condon Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 14,793 Words: 1055 Item ID: Page 2 of 3 I give credit to my team for sometimes running second I don t go down there and beat them up because they ran second. You have maintained your discipline you have held your line DAMIEN FRAWLEY QIC CHIEF EXECUTIVE Queensland Investment Corp chief Frawley tackles the big deals head-on Continued from Page 17 get shaken loose, he says. A former head of BlackRock in Australia, Frawley sits atop a fund manager that oversees $82bn worth of assets for 100 clients and in the 2017 financial year made a net profit of $88.7m, paying its owner, the Queensland government, a $41.1m dividend. Five years ago it made a big bet on US property, dipping its toes in the US regional shopping centre market by taking half-stakes in Forest City s portfolio of US malls and last year taking over much more of the $4bn-plus portfolio. One of properties is Ballston Quarter mall in affluent Arlington, Virginia. It s where Frawley sees the future of retail. He denies that shopping centres will be mortally wounded by e-commerce and rapidly changing consumer demands. We are confident that the consumer will drive big parts of the economy in the US, he says. He points to QIC s malls being near full in Australia with an occupancy rate of 99 per cent, and about 94 per cent in the US, with retail trade in the portfolio rising 2-3 per cent a year. But he says the dominant shopping centres in five to 10 years will be nothing like those of today. In Virginia, QIC and partner Forest City have undertaken a

54 The Australian, Australia Author: Turi Condon Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 14,793 Words: 1055 Item ID: Page 3 of 3 $330m upgrade, building an urban village. Along with the shift to entertainment and food, which has been embraced by the big retail landlords including Westfield, Ballston Quarter includes an office building and apartment tower. Forty per cent of the retail will be experiential. Bowling, karaoke, a cooking school, bars and hi-tech family entertainment centre 5-Wits have been added. An iceplex that sits above the multilevel car park is the practice arena for the NHL Washington Capitals ice hockey team. Frawley raises the synergies for QIC around these big plays. There is an interplay between infrastructure and shopping malls, thinking about the delivery of people to those malls that can now be town centres and the multi-use for the immediate precinct around them. Think about residential, healthcare and aged care, he says. Both in Australia and in the US, QIC owns land around the shopping centres, which is more likely to be developed for many things other than expanding the existing shopping centre. Another significant investment has been its 80 per cent stake in the $500m beef producer Northern Australian Pastoral Company. Bought two years ago, NAPCo owns nearly 6 million hectares across Queensland and the Northern Territory and the founding Foster family have retained 20 per cent. Historically, institutional investment in agriculture has been hit and miss, to be brutally honest, Frawley says. Australian superannuation funds, he adds, have not invested much in agriculture but this was likely to change over time. In some respects, it s no different from infrastructure or real estate. You ve got to ride the cycle, there s going to be drought, there s going to be floods, there s going to be death, all those sorts of things in agriculture, but you re taking a much longer perspective. It s a sector people should be interrogating. Frawley says the vast rural enterprise returned just under 20 per cent last year, acknowledging that a fair chunk of that was the uplift in rural land values, which QIC expects will keep going. Frawley says an escalating trade war between China and the US could hit major economies. He also singles out the tight credit conditions that will continue to slow the housing market. The unintended consequences (of the royal commission) will be a tightening of lending practices and of credit which will put a lid on the housing market in Australia for the foreseeable future. It s not really interest rate-led, he says.

55 The Australian, Australia Author: Ben Butler Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,679 Words: 510 Item ID: Page 1 of 2 Bank funding costs have surged to seven-year highs, pressuring the major lenders to follow regional banks in mortgage hikes. FULL REPORT P20 Major banks pressured to lift home loan rates BEN BUTLER FINANCIAL SERVICES Australian bank funding costs have surged to their highest level in seven years, putting additional pressure on the major lenders to follow the regional banks in hiking variable mortgage rates. Recent increases in official US interest rates have been driving up the cost of funds globally, but regulatory requirements for Australian banks to hold additional liquidity is also putting a strain on funding costs. The bank funding cost benchmark the spread between the 90-day bank bill rate and the overnight index swap rate continues to widen and this is flowing into higher funding costs for corporate borrowers and banks. This is why the regional banks, other smaller banks and, as of last week, Macquarie Bank, have all recently increased mortgage rates, said Philip Bayley, a credit market analyst with ADCM Services. A key test of money markets was ANZ s $2 billion, three-year note deal in the domestic corporate bond market last week where the lender paid a hefty 75 basis points over the bank bill/ swap rate. The last major deal was National Australia Bank s $2.7bn issued in local bond markets in mid- May, where it paid 70 basis points over the bank bill/ swap rate. This time a year ago ANZ paid the equivalent of 62 basis points for three-year funding. Analysts including Citi have argued the major banks were likely to hold in pushing through hikes on variable rates until they rule off their full year accounts in September. Intense political scrutiny and the ongoing royal commission has made the banks reluctant to move. All the major banks took advantage of scooping up cheap long-term funding in recent years. At the same time, concerns have been levelled at how higher mortgage rates could impact debt-heavy borrowers. Even so, analysts said the funding squeeze is starting to pressure profit margins. Bendigo & Adelaide Bank on Friday followed a string of lenders and hiked its home loan rates outof-cycle, blaming funding costs. It comes after AMP announced a raise to its variable interest rate on Thursday and after Rabobank lifted rates earlier this month. Wollongong-based IMB, Bank of Queensland, ME and Suncorp all lifted rates last month despite no sign from the Reserve Bank on a move on the cash rate. Bendigo said it would lift its owner occupier principal and interest loans by 0.10 per cent and owner occupier interest only loans will increase by 0.16 per cent from July 23. Investment loans and lines of credit will increase by 0.10 per cent per annum. Funding costs have been steadily increasing this year, and we ve absorbed this cost impact to date, Bendigo s managing director Marnie Baker said. Despite pressure on banks to raise interest rates, economists expect the RBA to keep interest rates on hold at current levels

56 The Australian, Australia Author: Ben Butler Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,679 Words: 510 Item ID: Page 2 of 2 until early next year. Cash rates are at a record low 1.5 per cent. The RBA is scheduled to release its monthly board minutes tomorrow. Bank funding costs Spread of 90-day BBSW to OIS Basis points Source: ADCM

57 Age, Melbourne Author: Clancy Yeates Section: Business News Article type : News Item Classification : Capital City Daily : 83,229 Page: 25 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 12,476 Words: 494 Item ID: Banks ramp up sharing of positive data, despite concerns PRIVACY Clancy Yeates Banks are on track to address a key blind spot in their lending assessments by early next year, as several of the country s biggest lenders finally prepare to engage with a customer data-sharing regime. The country s biggest credit bureau, Equifax, said it expected the majority of Australian accounts would be brought into a system known as comprehensive credit reporting over the next six months, despite the federal Opposition s push to delay a government plan to mandate major bank participation. It has now been more than four years since the government introduced comprehensive credit reporting (CCR), a voluntary system in which lenders can share positive credit data on customers, such as their record for paying bills and credit cards on time. Before it was introduced, credit bureaus only had access to more narrow, negative, information, such as defaults on loans. Banks have been slow to participate in the system but with the government last year vowing to force the big four to share data, credit bureau Equifax says it now expects 92 per cent of accounts will be active in the CCR system by early Such a change will give banks far better information about a prospective customer s repayment behaviour, and how much total debt they have, including credit cards and loans from other lenders. The lack of information in this area has previously been dubbed a blind spot by the Australian Prudential Regulation Authority chair Wayne Byres. Equifax group managing director for Asia Pacific, Mike Cutter, said the credit bureau was working with several major banks in testing their systems to bring across the account data from millions of consumers credit files over the next six months. Currently, he said 13 per cent of the near 30 million accounts in Australia were subject to comprehensive credit reporting. But this is expected to increase to 75 per cent by the end of this year, and 92 per cent in early By early 2019, we should get to the point where we ve got a pretty comprehensive view of the credit obligations that customers have got, Mr Cutter said. However, the push towards CCR has attracted political controversy, delaying the government s plan to mandate bank involvement. Consumer groups worry it will mean more vulnerable customers could end up being charged more for debt, or targeted by predatory lenders. The federal Labor Opposition raised several concerns in a Senate inquiry last month, and called for a delay to mandatory reporting until July next year, while a separate review of financial hardship arrangements is completed. Labor senators wrote they were sceptical there would any benefit to consumers from the change to CCR. They said evidence suggested most lenders would use the extra information about customers to boost profits and minimise consumer benefits. Mr Cutter acknowledged that customers with a weaker repayment history may be charged more for credit under a CCR regime, but argued such borrowers would have previously been denied credit by banks altogether. NATAGE A025

Age, Melbourne Author: JENNIFER DUKE Section: Business News Article type : News Item Classification : Capital City Daily : 83,229 Page: 25 Printed Size: 254.

58 Age, Melbourne Author: JENNIFER DUKE Section: Business News Article type : News Item Classification : Capital City Daily : 83,229 Page: 25 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 14,210 Words: 490 Item ID: DEBT Up to $5b a year lost New hotline to dob in a phoenix Jennifer Duke Whistleblowers will be given a hotline from Monday to report companies liquidating and creating phoenix entities to avoid paying debts, with a new report from the government estimating this activity is costing the economy $2.85 billion to $5.13 billion a year. The Tax Office s Phoenix Hotline allows competitors, creditors and employees to dob in phoenix companies under the protection of national privacy laws. Already, there have been seven criminal prosecutions from July 2017 to March 2018, with a further 34 individuals disqualified, and enforcement action taken against registered liquidators helping phoenix companies. Revenue and Financial Services Minister Kelly O Dwyer said the activity was a drain on the economy. [The hotline] will enable timely action to be taken against companies and their directors, safeguarding employees entitlements like wages and superannuation, and ensuring taxes are collected for government to provide the essential services Australians rely on, Ms O Dwyer said. While phoenix activity remains a major government concern, genuine liquidations due to insolvency are at a historical low, an analysis of court records in the 12 months to May 2018 by Prushka Fast Debt Recovery shows. During the year, 3114 businesses were issued notices of winding up applications, with the Tax Office and other government organisations involved in 62 per cent of cases. Prushka chief executive Roger Mendelson said in a statement these companies would have been considered commercially viable for wind-up by creditors. There would be a larger group of companies which are technically insolvent but which no creditor is prepared to spend the money to wind them up, Mr Mendelson said. Despite this he said it was a positive sign for the health of small and medium enterprises. Corporate advisory firm Ferrier Hodgson partner Peter Gothard told The Age low interest rates were a major factor in keeping insolvency figures low, although he warned each industry had its own pressures. Retail is competitive with lots of new players in a relatively high cost environment, Mr Gothard said, with pressure being seen in the dairy industry and energy space. Overall, the economy is in reasonably good shape, with miningdominated states recovering in recent years, AMP Capital chief economist Shane Oliver said. The main risk going forward is the end of the housing boom in Sydney and Melbourne, which flows through to home building and consumer spending, and then onto the wider economy, Dr Oliver said. You normally have insolvencies after a boom goes bust, and the housing boom has started to come off the boil now, he said. A recent report from insolvency experts SV Partners ranked construction at the top of the list in terms of businesses at high to severe financial risk, followed by accommodation, food services and retail trade. Melbourne s inner city, Sydney city and inner south and Parramatta were the areas with businesses at the most risk of financial failure. Construction tops the list for high to severe financial risk.

59 Adelaide Advertiser, Adelaide Author: Anthony Keane Section: Business News Article type : News Item Classification : Capital City Daily : 112,097 Page: 40 Printed Size: cm² Market: SA Country: Australia ASR: AUD 2,573 Words: 412 Item ID: Short-term super surges are scary, so staying put pays off ANTHONY KEANE RELYING on one year s financial performance to pick your super fund is dangerous for your wealth, and new numbers prove it. An analysis of 10 years of superannuation fund performance by QSuper has found that chasing fast-growing funds can slash average annual returns almost in half. QSuper found that someone who started with a $50,000 balanced superannuation fund option in July 2007 and swapped their super each year to the previous year s best balanced fund ended up with $68,000 by 2017, compared with $86,700 for a person who stuck with a consistently good fund. The swapper achieved annual returns averaging 3.13 per cent over the 10 years which included the Global Financial Crisis while the saver who stayed put earned 5.66 per cent. QSuper head of investment strategy Damian Lillicrap said 80 to 90 per cent of investment risk in a typical balanced fund came from shares, also called equities. Very good one-year returns, in a year when equities have done well, could be a sign that the fund is not very diversified, he said. A good rule of thumb could be to avoid the top funds in a good equity year and seek out those that are among the top in a poor equity year provided they have good long-term returns. Last year s top performer based on a one-year return may not be in the top 10 or even top 25 the following year. Mr Lillicrap said decisions made on one-year returns were dangerous, and people should check how their fund performed over 10 years. People can compare funds using websites such as morningstar.com.au, superratings.com.au, chantwest.com.au and canstar.com.au, but these can still be tricky to navigate. SuperRatings chief executive officer Kirby Rappell said a good starting point was your annual statement, which should show how your super compared with various benchmarks. He said people should check returns over multiple time periods such as three, five and 10 years to see how funds averaged out. It s about making sure there s a good long-term history rather than it just being flavour of the year, Mr Rappell said. Canstar s group executive financial services, Steve Mickenbecker, said people should make sure they were comparing similar fund options. Don t compare oranges with Ferraris, he said. A lot of outstanding returns come from asset allocation, and there s a cycle. If you are always looking in your rear view mirror you might have missed the cycle where the asset did well...

Courier Mail, Brisbane Author: Anthony Keane Section: Business News Article type : News Item Classification : Capital City Daily : 135,007 Page: 33 Printed Size: 173.

60 Courier Mail, Brisbane Author: Anthony Keane Section: Business News Article type : News Item Classification : Capital City Daily : 135,007 Page: 33 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 3,038 Words: 412 Item ID: Short-term super surges are scary, so staying put pays off ANTHONY KEANE RELYING on one year s financial performance to pick your super fund is dangerous for your wealth, and new numbers prove it. An analysis of 10 years of superannuation fund performance by QSuper has found that chasing fast-growing funds can slash average annual returns almost in half. QSuper found that someone who started with a $50,000 balanced superannuation fund option in July 2007 and swapped their super each year to the previous year s best balanced fund ended up with $68,000 by 2017, compared with $86,700 for a person who stuck with a consistently good fund. The swapper achieved annual returns averaging 3.13 per cent over the 10 years which included the Global Financial Crisis while the saver who stayed put earned 5.66 per cent. QSuper head of investment strategy Damian Lillicrap said 80 to 90 per cent of investment risk in a typical balanced fund came from shares, also called equities. Very good one-year returns, in a year when equities have done well, could be a sign that the fund is not very diversified, he said. A good rule of thumb could be to avoid the top funds in a good equity year and seek out those that are among the top in a poor equity year provided they have good long-term returns. Last year s top performer based on a one-year return may not be in the top 10 or even top 25 the following year. Mr Lillicrap said decisions made on one-year returns were dangerous, and people should check how their fund performed over 10 years. People can compare funds using websites such as morningstar.com.au, superratings.com.au, chantwest.com.au and canstar.com.au, but these can still be tricky to navigate. SuperRatings chief executive officer Kirby Rappell said a good starting point was your annual statement, which should show how your super compared with various benchmarks. He said people should check returns over multiple time periods such as three, five and 10 years to see how funds averaged out. It s about making sure there s a good long-term history rather than it just being flavour of the year, Mr Rappell said. Canstar s group executive financial services, Steve Mickenbecker, said people should make sure they were comparing similar fund options. Don t compare oranges with Ferraris, he said. A lot of outstanding returns come from asset allocation, and there s a cycle. If you are always looking in your rear view mirror you might have missed the cycle where the asset did well...

Courier Mail, Brisbane Author: Steven Scott Section: General News Article type : News Item Classification : Capital City Daily : 135,007 Page: 2 Printed Size: 254.

61 Courier Mail, Brisbane Author: Steven Scott Section: General News Article type : News Item Classification : Capital City Daily : 135,007 Page: 2 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 4,461 Words: 334 Item ID: $270m rort a drain ATO snares deadbeat bosses who weasel out of payments STEVEN SCOTT costing more than $270 million were caught by the tax office last year, according to figures to be released today. And a new report commissioned by the Australian Taxation Office said businesses that used company structures to rip off customers, staff and suppliers cost the economy up to $5.13 billion a year. As part of a crackdown on so-called phoenix companies, the ATO has set up a phone line for people to dob in businesses that use corporate structures to escape paysuperannuation entitlements. The ATO s Phoenix Taskforce conducted 340 audits last financial year and identified $270 million in tax liabilities from these dodgy businesses. More than $190 million was recouped. The taskforce, set up in 2014, has so far found more than $1 billion in liabilities, and collected close to half of that in owed taxes. Seven people face criminal prosecutions as a result of the audits last year, and 34 others have been banned from acting as company directors. But a Pricewaterhousesuggests the unlawful use of company structures by people trying to get out of paying their bills is actually much wider. It estimated that illegal phoenix companies directly cost the economy between $2.85 billion and $5.13 billion in The Federal Government es that try to avoid paying entitlements. Penalties could include jail time for individual employers who fail to pay superannuation to staff. Laws are also being drafted to prevent workers being left out of pocket when businesses collapse. Kelly O Dwy the Governm to further t fraud to claw and staff entit Phoenixin working Aus ing the employees, s tomers and businesses. I significant dr economy, sh For thos try to beat t tem, it s only ter of time be the law catch up with them

Sydney Morning Herald, Sydney Author: Clancy Yeates Section: Business News Article type : News Item Classification : Capital City Daily : 88,634 Page: 23 Printed Size: 223.

62 Sydney Morning Herald, Sydney Author: Clancy Yeates Section: Business News Article type : News Item Classification : Capital City Daily : 88,634 Page: 23 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 17,848 Words: 494 Item ID: Banks ramp up sharing of positive data, despite concerns PRIVACY Clancy Yeates Banks are on track to address a key blind spot in their lending assessments by early next year, as several of the country s biggest lenders finally prepare to engage with a customer data-sharing regime. The country s biggest credit bureau, Equifax, said it expected the majority of Australian accounts would be brought into a system known as comprehensive credit reporting over the next six months, despite the federal Opposition s push to delay a government plan to mandate major bank participation. It has now been more than four years since the government introduced comprehensive credit reporting (CCR), a voluntary system in which lenders can share positive credit data on customers, such as their record for paying bills and credit cards on time. Before it was introduced, credit bureaus only had access to more narrow, negative, information, such as defaults on loans. Banks have been slow to participate in the system but with the government last year vowing to force the big four to share data, credit bureau Equifax says it now expects 92 per cent of accounts will be active in the CCR system by early Such a change will give banks far better information about a prospective customer s repayment behaviour, and how much total debt they have, including credit cards and loans from other lenders. The lack of information in this area has previously been dubbed a blind spot by the Australian Prudential Regulation Authority chair Wayne Byres. Equifax group managing director for Asia Pacific, Mike Cutter, said the credit bureau was working with several major banks in testing their systems to bring across the account data from millions of consumers credit files over the next six months. Currently, he said 13 per cent of the near 30 million accounts in Australia were subject to comprehensive credit reporting. But this is expected to increase to 75 per cent by the end of this year, and 92 per cent in early By early 2019, we should get to the point where we ve got a pretty comprehensive view of the credit obligations that customers have got, Mr Cutter said. However, the push towards CCR has attracted political controversy, delaying the government s plan to mandate bank involvement. Consumer groups worry it will mean more vulnerable customers could end up being charged more for debt, or targeted by predatory lenders. The federal Labor Opposition raised several concerns in a Senate inquiry last month, and called for a delay to mandatory reporting until July next year, while a separate review of financial hardship arrangements is completed. Labor senators wrote they were sceptical there would any benefit to consumers from the change to CCR. They said evidence suggested most lenders would use the extra information about customers to boost profits and minimise consumer benefits. Mr Cutter acknowledged that customers with a weaker repayment history may be charged more for credit under a CCR regime, but argued such borrowers would have previously been denied credit by banks altogether. 1HERSA1 A023

63 Sydney Morning Herald, Sydney Author: JENNIFER DUKE Section: Business News Article type : News Item Classification : Capital City Daily : 88,634 Page: 23 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 20,649 Words: 490 Item ID: DEBT Up to $5b a year lost New hotline to dob in a phoenix Jennifer Duke Whistleblowers will be given a hotline from Monday to report companies liquidating and creating phoenix entities to avoid paying debts, with a new report from the government estimating this activity is costing the economy $2.85 billion to $5.13 billion a year. The Tax Office s Phoenix Hotline allows competitors, creditors and employees to dob in phoenix companies under the protection of national privacy laws. Already, there have been seven criminal prosecutions from July 2017 to March 2018, with a further 34 individuals disqualified, and enforcement action taken against registered liquidators helping phoenix companies. Revenue and Financial Services Minister Kelly O Dwyer said the activity was a drain on the economy. [The hotline] will enable timely action to be taken against companies and their directors, safeguarding employees entitlements like wages and superannuation, and ensuring taxes are collected for government to provide the essential services Australians rely on, Ms O Dwyer said. While phoenix activity remains a major government concern, genuine liquidations due to insolvency are at a historical low, an analysis of court records in the 12 months to May 2018 by Prushka Fast Debt Recovery shows. During the year, 3114 businesses were issued notices of winding up applications, with the Tax Office and other government organisations involved in 62 per cent of cases. Prushka chief executive Roger Mendelson said in a statement these companies would have been considered commercially viable for wind-up by creditors. There would be a larger group of companies which are technically insolvent but which no creditor is prepared to spend the money to wind them up, Mr Mendelson said. Despite this he said it was a positive sign for the health of small and medium enterprises. Corporate advisory firm Ferrier Hodgson partner Peter Gothard told The Herald low interest rates were a major factor in keeping insolvency figures low, although he warned each industry had its own pressures. Retail is competitive with lots of new players in a relatively high cost environment, Mr Gothard said, with pressure being seen in the dairy industry and energy space. Overall, the economy is in reasonably good shape, with miningdominated states recovering in recent years, AMP Capital chief economist Shane Oliver said. The main risk going forward is the end of the housing boom in Sydney and Melbourne, which flows through to home building and consumer spending, and then onto the wider economy, Dr Oliver said. You normally have insolvencies after a boom goes bust, and the housing boom has started to come off the boil now, he said. A recent report from insolvency experts SV Partners ranked construction at the top of the list in terms of businesses at high to severe financial risk, followed by accommodation, food services and retail trade. Melbourne s inner city, Sydney city and inner south and Parramatta were the areas with businesses at the most risk of financial failure. Construction tops the list for high to severe financial risk.

64 Age, Melbourne Author: Allison Worrall Section: General News Article type : News Item Classification : Capital City Daily : 83,229 Page: 8 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 18,797 Words: 683 Item ID: Page 1 of 2 HOMELESSNESS Report urges action on affordable housing Elderly crisis only going to get worse Allison Worrall Thousands of older Australians are being forced to choose between buying groceries, medication or paying their rent, experts say. Academics and housing providers have warned that the homelessness crisis among the elderly is set to deepen unless more money is injected into affordable housing. With the country s older population forecast to double in coming decades, the authors of a new report to be launched by Senator Doug Cameron today have called on policy-makers to address the problem urgently. At the last census, there were 18,625 homeless people aged over 55, but this is likely to be an underestimate given the difficulty of counting those with no fixed address. Meanwhile, the number of renters aged over 65 who are in housing stress, defined as paying more than 30 per cent of their income on rent, has jumped by 42 per cent in the past five years. This situation is only going to get worse, warned Debbie Faulkner, the deputy director of the centre for housing, urban and regional planning at the University of Adelaide. In some cases, rent chews up to 70 per cent of a household s income, she said. They tend to pay their rent first and go without their health needs, their pharmaceutical needs or even food, Ms Faulkner said. Brian Lipmann, the founder of a not-for-profit organisation dedicated to helping disadvantaged older Australians, said housing options for poor elderly people were nonexistent. It has been almost 30 years since he opened Wintringham Specialist Aged Care, but Mr Lipmann said the situation was worse than ever. We now have 1900 people on our waiting list, he said. A lot of those people have never had anything to do with homelessness before. On any given night, Wintringham provides housing, care or outreach services to roughly 1800 people aged over 50 in Victoria. Domestic violence or the death of a partner were common triggers forcing older people out of the rental market, Mr Lipmann said. He added they typically had little to no superannuation savings to fall on. Many find themselves couchsurfing at the homes of their children or friends. It s demoralising and it s humiliating, he said. Housing advocates have reported a growing number of older people locked out of the private rental market were now faced with long waiting lists for public housing. About 4000 Victorians recently joined the public housing priority waiting list, after the state government created a category for people aged 55 and over. There are people who are too frightened to go into crisis accommodation... or boarding houses because it s too wild and violent, Mr Lipmann said. He added that aged care homes were not affordable for many, often requiring substantial upfront deposits in addition to ongoing expenses. The aged pension isn t enough to pay private rents and the current aged care system is designed for

65 Age, Melbourne Author: Allison Worrall Section: General News Article type : News Item Classification : Capital City Daily : 83,229 Page: 8 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 18,797 Words: 683 Item ID: Page 2 of 2 those with property and assets, Mr Lipmann said. He described many of those struggling as ordinary Aussie battlers who had once worked, raised families and paid taxes. At the time of your life when you re the frailest and sickest, to be faced with trying to find a feed or trying to find a place where you re not going to be bashed or robbed or raped is terrifying. Last year, more than 23,000 people aged over 55 turned to homelessness services for help, according to Council to Homeless Persons chief executive Jenny Smith. Due to the chronic shortage of affordable housing, the best those people are offered is a short stay in a refuge, rooming house or caravan park, she said. This type of marginal accommodation has a devastating impact on the physical and mental health of the elderly. Mr Lipmann called for bipartisan support for more public and community housing, included dedicated housing for older people. At the time of your life when you re the frailest and sickest, to be faced with trying to find a feed or trying to find a place where you re not going to be bashed or robbed or raped is terrifying. Brian Lipmann, Wintringham Specialist Aged Care founder

66 The Australian, Australia Author: Greg Brown Simon Benson Section: General News Article type : News Item Classification : National : 94,448 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 12,206 Words: 733 Item ID: Page 1 of 2 PM pressed to act: voters cut to migrants EXCLUSIVE GREG BROWN SIMON BENSON Liberal senator Dean Smith is urging Malcolm Turnbull to sanction a wide-ranging Senate inquiry into Australia s population policy, believing the recent reduction in immigration levels did not go far enough to ease community concerns about population growth. With the national population to hit 25 million next month, the West Australian senator has written to the Prime Minister, Treasurer Scott Morrison and Home Affairs Minister Peter Dutton, urging them to support a yearlong inquiry into the issue. A special Newspoll today reveals that 72 per cent of voters support the Turnbull government s cut of more than 10 per cent to the annual permanent migrant intake to 163,000 last financial year revealed in The Australian on Friday on the of a crackdown on fraudulent claims and a sharp rise in visa refusals. Only 9 per cent of voters strongly oppose the cut, revealing the depth of support in the community to put the brakes on immigration amid claims that the capital cities are not coping with population growth. Senator Smith said he was willing to talk to the Senate crossbench and the opposition to establish the inquiry if it does not get the support of government. My strong first preference is for this to be something that the government leads because it demonstrates that the government is listening to community sentiment, he said. In Melbourne s western suburbs, which are absorbing most of the city s population boom, residents worry that infrastructure investment hasn t kept up. Port Cook resident Jayesh Agarwal moved to Australia from India five years ago with his wife, Maulshri, and their first child. I think Australia needs population growth, not just growth but people moving in and moving out, to get new ideas, Mr Agarwal said. But the infrastructure in general has to keep up with it. Continued on Page 6 REDUCE NUMBER OF MIGRANTS SETTLING IN AUSTRALIA? % Coalition Labor Greens One Nation Total Total Total approve disapprove

The Australian, Australia Author: Greg Brown Simon Benson Section: General News Article type : News Item Classification : National : 94,448 Page: 1 Printed Size: 604.

67 The Australian, Australia Author: Greg Brown Simon Benson Section: General News Article type : News Item Classification : National : 94,448 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 12,206 Words: 733 Item ID: Page 2 of 2 AARON FRANCIS Jayesh and Maulshri Agarwal with Swara, 7, and one-year-old Vyom in Melbourne. I wouldn t mind shifting to a regional area Jayesh says Turnbull pushed to act on population Continued from Page 1 Port Cook, a former air force town, had a 49 per cent rise in its population from 2011 to 49,929 people in the 2016 Census. Mr Agarwal and his wife work in the CBD, an easy commute provided there are no cars broken-down on the single road to the city. We do have public transport but the frequency is so poor people can t rely on it, Ms Agarwal said. Her husband said Australia was not overpopulated but the current growth wasn t being spread evenly across the country. I wouldn t mind shifting to a regional area as long as it has employment and infrastructure. The Newspoll of 1644 voters across the country reveals that 47 per cent strongly approved of the reduction in immigration levels and 25 per cent somewhat approved. Only 9 per cent strongly disapproved. Support was strongest among One Nation voters 88 per cent in favour. Coalition voters were on the same page with 83 per cent in support. In a sign that Bill Shorten is out of touch with the Labor base, twice as many ALP voters supported the cut to immigration as opposed it 64 to 32 per cent. Almost half of Greens voters also sided with the government: 49 per cent either strongly or somewhat in favour while 44 per cent disapproved. Senator Smith, a leading advocate for the Yes vote in the same-sex marriage campaign, said the population was set to hit 25 million by early August, despite former treasurer Peter Costello predicting in 2002 that it would not reach that figure until (Other) government projections for 1988 to 2031 indicated that Australia would not reach 25 million until 2030 under mid-range projections, and not even by 2023 under the most optimistic projection, he said. The inquiry should start when parliament returned in August and run for 12 months to avoid it being politicised during the federal election, he said. The Turnbull government rejected a submission by Infrastructure Australia to develop a population policy. It s time to give everyday Australian s a real voice on the future direction of Australia s population policy, and I believe a Senate inquiry will deliver a community-ed position, Senator Smith said. ADDITIONAL REPORTING: TESSA AKERMAN

The Australian, Australia Author: Rosie Lewis Section: General News Article type : News Item Classification : National : 94,448 Page: 5 Printed Size: 172.

68 The Australian, Australia Author: Rosie Lewis Section: General News Article type : News Item Classification : National : 94,448 Page: 5 Printed Size: cm² Market: National Country: Australia ASR: AUD 3,476 Words: 399 Item ID: Economy suffers $5bn blow from phoenix company fraud ROSIE LEWIS Fraudulent activities by dodgy directors who create phoenix companies to avoid paying employees wages, superannuation and other entitlements are costing the economy up to $5 billion. The new figure, which is substantially higher than an earlier estimate of between $1.78bn and $3.19bn, was revealed as the Turnbull government announced the establishment of a Phoenix Hotline to combat illegal phoenixing activities. Financial Services Minister Kelly O Dwyer encouraged employees, creditors, competing businesses and members of the public to report concerns about possible phoenix behaviour to the hotline, saying disclosures would be confidential and protected by privacy and whistleblower laws. Phoenixing hurts hardworking Australians, including the company s employees, suppliers, customers and competing businesses. It causes a significant drain on the Australian economy, Ms O Dwyer said. The new Phoenix Hotline will make it easier to report suspected phoenix behaviour directly to the Australian Taxation Office so they can pursue those doing the wrong thing. It will enable timely action to be taken against companies and their directors, safeguarding employees entitlements like wages and superannuation, and ensuring taxes are collected for government to provide the essential services Australians rely on. The direct cost of potential illegal phoenix activity in will be released in a report today by Pricewaterhouse Coopers, which was commissioned by the ATO, Fair Work Ombudsman and Australian Securities and Investments Commission. It estimates pphoenixing cost business up to $3.1bn in unpaid trade creditors, while employees were robbed of up to $298m in unpaid entitlements and the government missed out on $1.6bn in unpaid taxes. Phoenixing is described as the deliberate and systematic liquidation of a corporate trading entity which occurs with the intention to avoid liabilities and continue the operation and profit taking of the business through other trading entities. The government s Phoenix Taskforce conducted 340 reviews and audits in the last financial year, raising more than $270m in tax liabilities. Nearly $200m in cash was collected and returned to the community from action undertaken in and prior years. Of the 3000 audits conducted by the ATO since July , more than $1bn in liabilities was identified and just under half of that money around $450m has been collected. Ms O Dwyer s office said the PwC report drew on a broader range of data sources than has been used in the past, including ASIC, the Fair Entitlements Guarantee, the ATO and ATO s more sophisticated phoenix risk model.

The Australian, Australia Author: Judith Sloan Section: General News Article type : News Item Classification : National : 94,448 Page: 12 Printed Size: 438.

69 The Australian, Australia Author: Judith Sloan Section: General News Article type : News Item Classification : National : 94,448 Page: 12 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,851 Words: 1165 Item ID: Page 1 of 2 UNIONS WIELD THEIR POWER IN SERVICE OF SO FEW Little attention will be paid to this week s ACTU congress whose influence is passing JUDITH SLOAN CONTRIBUTING ECONOMICS EDITOR Once upon a time, an ACTU congress made big news. My guess is that very few people will even notice that there is one being held this week in Brisbane. There will be a few news reports, but ordinary folk will be far more interested in reading about how their team is going, or maybe the weather. According to the blurb, the ACTU congress is effectively a parliament for working people, where delegates debate and vote on policies regarding the workplace, rights, and campaigns to improve wages, conditions and quality of life for Australian workers and their families. This process sets the union agenda for a further three years. It is surely a bit cheeky to call the shindig a parliament for working people. Let s not forget just 15 per cent of workers belong to trade unions, with less than 10 per cent in the private sector. In 1992, union density was 40 per cent. And underpinning the unions existential crisis, only 4 per cent of 15 to 19-year-olds are members and only 7 per cent of those aged 20 to 24 belong. The union movement s future looks bleak. The typical union member is now older, female and employed in a professional occupation: teaching or nursing. Only the need for professional indemnity insurance, which unions provide, sustains the high rate of union membership in these occupations. It is interesting to read who is sponsoring this year s ACTU congress, which cannot be cheap to run. Let s take a look at the large number of industry super funds chipping in: AustralianSuper, Cbus, CareSuper, HESTA, HOSTPLUS, REST and Media Super. Then there is an assortment of other players, some linked to industry super funds: Industry Super Australia, ME Bank, Industry Funds Services, IFM Investors and the Australian Institute of Superannuation Trustees. The list of sponsors is a clear demonstration of the very close link between the union movement and industry super funds. Having said that, it is questionable whether the trustees of these funds are meeting the sole purpose test, as set down in legislation, by providing this sponsorship. This test states that a superannuation fund is maintained for the purpose of providing benefits to its members upon their retirement (or attainment of a certain age), or for the beneficiaries if a member dies. There are penalties for violating that rule. Now the industry super funds will probably claim the sponsorship of the ACTU congress is being met from the administration fees that members pay rather than from their account balances. This was the excuse given when AustralianSuper and several other industry super funds chose to invest millions of dollars in an online newspaper, The New Daily. The reality is that those administration fees are there to meet the legitimate expenses of running a fund for the benefit of the members, not to fund outside activities. Indeed, there are serious question marks over the industry super funds sponsorship of football teams, a variety of events and spending on promotional advertising. The hope is that the royal commission will get to the bottom of this matter and expose this spending as being inconsistent with the sole purpose test, at least in many instances. Getting to the ACTU congress, there will be much attention given to today s union movement fad changing the industrial relations laws and regulations so they are even more favourable to them. There is, of course, a high degree of irony to the ACTU s Change the Rules! (the exclamation mark is there for added urgency, no doubt) campaign. After all, the ACTU had dialled up the Fair Work Act, including various amendments added when Bill Shorten was employment minister in the Gillard government. And a large number of appointments was also made to the Fair Work Commission, mainly from a union ground, by the Labor government. Like a spoiled child, the ACTU wants more. As the saying goes, though: you can lead a horse to water but you can t make it drink. It is absolutely clear that employers are baulking at the complex, pro-union agreementmaking arrangements under today s act. Adding further complexity and making them even more favourable to unions and recall the small percentage of workers who bother to be members will almost certainly fail. Take a look at the numbers. In March 2011, there were almost 25,000 enterprise agreements. In March this year, there were fewer than 13,000 so there are about half the number of agreements in operation than seven years ago. There has also been an associated drop-off in the number of employees covered by agreements. In 2011, there were 2.6 million. Today it is under 1.8 million. And over that time the number of people employed has grown by 1.3 million. In terms of wage-setting arrangements for employees, the fastest-growing instrument is award only. Almost a quarter of employees work under awards, with individual arrangements the most common. So what explains the declining prevalence of enterprise agreements? For most employers, the

70 The Australian, Australia Author: Judith Sloan Section: General News Article type : News Item Classification : National : 94,448 Page: 12 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,851 Words: 1165 Item ID: Page 2 of 2 complexity and costs are simply too daunting relative to the benefits. This fact has indeed been acknowledged by the Fair Work Commission. The continuing confusion about the operation of the better off overall test is an additional negative. It is clear that there has been a double standard in relation to the approval of union and non-union agreements. Union agreements have been waved through while non-union agreements have been subjected to detailed and lengthy scrutiny. Recently, two non-union agreements have been held up on minor technical details. In one instance, the term leader was used rather than employer. Note that this company uses the term leader in all its material. Notwithstanding that the workers had voted to accept the agreement, the FWC refused to approve it because of the union s objection. In another case, there was a difference of opinion about the timing of the required notification period to enable workers to vote. Did the day on which the notification was made count or not? Again, because of the union s opposition, the agreement was knocked by the FWC, notwithstanding that many union agreements have the same method for calculating the notification period as this agreement. It is hardly surprising that very many employers, particularly those for whom industrial action by their workers is a remote possibility, quickly dismiss the option of negotiating enterprise agreements. It is simply not worth the candle. The delegates at the ACTU congress would be well-advised to spend less time contemplating how the legal rules can be changed to further favour trade unions and more time on how unions might increase their membership base by offering valued services. They might also want to disguise the links with the industry super funds rather than highlight them On the important issue of how my team is going: Not well. Go the Blues! There is, of course, a high degree of irony to the ACTU s Change the Rules! campaign

Canberra Times, Canberra Author: JENNIFER DUKE Section: Business News Article type : News Item Classification : Capital City Daily : 17,579 Page: 41 Printed Size: 253.

71 Canberra Times, Canberra Author: JENNIFER DUKE Section: Business News Article type : News Item Classification : Capital City Daily : 17,579 Page: 41 Printed Size: cm² Market: ACT Country: Australia ASR: AUD 6,480 Words: 490 Item ID: DEBT Up to $5b a year lost New hotline to dob in a phoenix Jennifer Duke Whistleblowers will be given a hotline from Monday to report companies liquidating and creating phoenix entities to avoid paying debts, with a new report from the government estimating this activity is costing the economy $2.85 billion to $5.13 billion a year. The Tax Office s Phoenix Hotline allows competitors, creditors and employees to dob in phoenix companies under the protection of national privacy laws. Already, there have been seven criminal prosecutions from July 2017 to March 2018, with a further 34 individuals disqualified, and enforcement action taken against registered liquidators helping phoenix companies. Revenue and Financial Services Minister Kelly O Dwyer said the activity was a drain on the economy. [The hotline] will enable timely action to be taken against companies and their directors, safeguarding employees entitlements like wages and superannuation, and ensuring taxes are collected for government to provide the essential services Australians rely on, Ms O Dwyer said. While phoenix activity remains a major government concern, genuine liquidations due to insolvency are at a historical low, an analysis of court records in the 12 months to May 2018 by Prushka Fast Debt Recovery shows. During the year, 3114 businesses were issued notices of winding up applications, with the Tax Office and other government organisations involved in 62 per cent of cases. Prushka chief executive Roger Mendelson said in a statement these companies would have been considered commercially viable for wind-up by creditors. There would be a larger group of companies which are technically insolvent but which no creditor is prepared to spend the money to wind them up, Mr Mendelson said. Despite this he said it was a positive sign for the health of small and medium enterprises. Corporate advisory firm Ferrier Hodgson partner Peter Gothard told Fairfax Media low interest rates were a major factor in keeping insolvency figures low, although he warned each industry had its own pressures. Retail is competitive with lots of new players in a relatively high cost environment, Mr Gothard said, with pressure being seen in the dairy industry and energy space. Overall, the economy is in reasonably good shape, with miningdominated states recovering in recent years, AMP Capital chief economist Shane Oliver said. The main risk going forward is the end of the housing boom in Sydney and Melbourne, which flows through to home building and consumer spending, and then onto the wider economy, Dr Oliver said. You normally have insolvencies after a boom goes bust, and the housing boom has started to come off the boil now, he said. A recent report from insolvency experts SV Partners ranked construction at the top of the list in terms of businesses at high to severe financial risk, followed by accommodation, food services and retail trade. Melbourne s inner city, Sydney city and inner south and Parramatta were the areas with businesses at the most risk of financial failure. Construction tops the list for high to severe financial risk.

Canberra Times, Canberra Author: Clancy Yeates Section: Business News Article type : News Item Classification : Capital City Daily : 17,579 Page: 41 Printed Size: 223.

72 Canberra Times, Canberra Author: Clancy Yeates Section: Business News Article type : News Item Classification : Capital City Daily : 17,579 Page: 41 Printed Size: cm² Market: ACT Country: Australia ASR: AUD 5,712 Words: 494 Item ID: Banks ramp up sharing of positive data, despite concerns PRIVACY Clancy Yeates Banks are on track to address a key blind spot in their lending assessments by early next year, as several of the country s biggest lenders finally prepare to engage with a customer data-sharing regime. The country s biggest credit bureau, Equifax, said it expected the majority of Australian accounts would be brought into a system known as comprehensive credit reporting over the next six months, despite the federal Opposition s push to delay a government plan to mandate major bank participation. It has now been more than four years since the government introduced comprehensive credit reporting (CCR), a voluntary system in which lenders can share positive credit data on customers, such as their record for paying bills and credit cards on time. Before it was introduced, credit bureaus only had access to more narrow, negative, information, such as defaults on loans. Banks have been slow to participate in the system but with the government last year vowing to force the big four to share data, credit bureau Equifax says it now expects 92 per cent of accounts will be active in the CCR system by early Such a change will give banks far better information about a prospective customer s repayment behaviour, and how much total debt they have, including credit cards and loans from other lenders. The lack of information in this area has previously been dubbed a blind spot by the Australian Prudential Regulation Authority chair Wayne Byres. Equifax group managing director for Asia Pacific, Mike Cutter, said the credit bureau was working with several major banks in testing their systems to bring across the account data from millions of consumers credit files over the next six months. Currently, he said 13 per cent of the near 30 million accounts in Australia were subject to comprehensive credit reporting. But this is expected to increase to 75 per cent by the end of this year, and 92 per cent in early By early 2019, we should get to the point where we ve got a pretty comprehensive view of the credit obligations that customers have got, Mr Cutter said. However, the push towards CCR has attracted political controversy, delaying the government s plan to mandate bank involvement. Consumer groups worry it will mean more vulnerable customers could end up being charged more for debt, or targeted by predatory lenders. The federal Labor Opposition raised several concerns in a Senate inquiry last month, and called for a delay to mandatory reporting until July next year, while a separate review of financial hardship arrangements is completed. Labor senators wrote they were sceptical there would any benefit to consumers from the change to CCR. They said evidence suggested most lenders would use the extra information about customers to boost profits and minimise consumer benefits. Mr Cutter acknowledged that customers with a weaker repayment history may be charged more for credit under a CCR regime, but argued such borrowers would have previously been denied credit by banks altogether.

Canberra Times, Canberra Author: Doug Dingwall Section: General News Article type : News Item Classification : Capital City Daily : 17,579 Page: 2 Printed Size: 261.

73 Canberra Times, Canberra Author: Doug Dingwall Section: General News Article type : News Item Classification : Capital City Daily : 17,579 Page: 2 Printed Size: cm² Market: ACT Country: Australia ASR: AUD 6,685 Words: 524 Item ID: PUBLIC SERVICE Insurance hike of 17pc Rising mental health claims lift premiums Doug Dingwall A jump in mental health claims from public servants has driven a 17 per cent hike in insurance premiums for bureaucrats, dwarfing pay growth in federal agencies. The increase on July 1 has lifted premiums by a rate far above the growth in cost of living for workers paying for insurance under a Commonwealth superannuation scheme that covers most government staff. It also towers above the 2.5 per cent average pay rise for rank-andfile bureaucrats last year, a figure held down by a cap on yearly pay growth imposed by the Coalition government. Public servants paying for income protection, death and total and permanent disability cover under the Public Sector Superannuation accumulation plan will see the hike come out of their super, slowing the growth of their nest eggs. The insurance hike is more than double last year s industry-wide average rise of 7 per cent for low risk superannuation fund members and on par with the average 15 per cent increase for those judged to be in high risk work, according to financial services analysts. Mental health claims under the public sector scheme grew about 25 per cent for total and permanent disability insurance, and about 10 per cent for income protection cover, between 2014 and The Commonwealth Superannuation Corporation administering the federal scheme covering nearly half the Australian Public Service s staff said the 17 per cent jump would apply to any member paying for its insurance coverage. The corporation said a rise in claims, particularly for mental health, was behind the increase in costs for its lifeplus cover. More and more members are becoming aware of, and accessing, the support they may need and are entitled to, a spokesman said. Executive director at financial services information company Rainmaker Group, Alex Dunnin, said the scheme s insurance premiums for death and total permanent disability cover before the price hike were about on par with the market. Its income protection insurance was more expensive. The 17 per cent increase would make insurance under the PSSap more costly than the market, suggesting it was dealing with more claims than expected, he said. Super funds elsewhere have lowered their premium costs in the past year, Mr Dunnin said. Mental health claims are also rising for insurance providers outside PSSap. Mr Dunnin said insurance companies were handling this by working with their super fund clients to restrict policy terms and conditions or reduce benefits. Another approach is that insurers are much more focused on return to work rehabilitation programs than they previously were. While the PSSap s 139,000 members are eligible for insurance, not all have coverage through the scheme. The Commonwealth Superannuation Corporation said insurance through super remained cost effective for public servants. CSC does not receive or retain any insurance premiums associated with lifeplus cover but does have an obligation to ensure that the premiums charged to members accurately reflect the underlying benefits provided, a spokesman said. Importantly, PSSap members are able to vary their insurance cover to suit their individual needs they can either increase or decrease insurance amounts, and change benefit periods or waiting periods.

Hobart Mercury, Hobart Author: Sophie Elsworth Section: Business News Article type : News Item Classification : Capital City Daily : 28,265 Page: 18 Printed Size: 262.

74 Hobart Mercury, Hobart Author: Sophie Elsworth Section: Business News Article type : News Item Classification : Capital City Daily : 28,265 Page: 18 Printed Size: cm² Market: TAS Country: Australia ASR: AUD 1,894 Words: 522 Item ID: How to invest your tax return Aussies are eagerly awaiting their tax refunds, but plan to spend the money wisely, writes Sophie Elsworth MILLIONS of taxpayers will receive a much-needed cash injection from the Australian Taxation Office in the coming weeks and many plan to spend their tax return money wisely. Australians often rush to get their tax returns filed in the first few months of the financial year in the hope they will receive a wad of cash. But experts warn taxpayers to use their returns smartly and not just fritter them away. New data from financial institution ME quizzed 1000 Australians and found 43 per cent are expecting to save or invest their tax refund. And for those carrying debts, about 27 per cent are planning to cull debts and tip the money into their home loan or pay down credit card debt. Rising Tide Financial Services chief executive officer Chris Browne said Australians should be careful with any money they receive but also leave a portion for play. Spend 80 per cent wisely and spend 20 per cent on fun, he said. Pay off your credit card debt and use it as an opportunity to live credit card free in the next financial year. Many credit cards attract interest rates above the 20 per cent mark, so it s vital cardholders carrying plastic debt chip into this first. Mr Browne said ditching credit cards altogether is a way to wipe the slate clean. Latest ATO figures show in the financial year 13.5 million individuals and sole traders lodged a tax return themselves or through an agent and the average refund was $2500. The ATO s assistant commissioner, Kath Anderson, said the growth in pre-fill information available for those lodging made it much easier to file their return. For the year we prefilled over 81 million records, to assist taxpayers and agents to get returns right, she said. We expect to be able to prefill even more data this year as a result of increased data received from third parties. ME s general manager of deposits John Powell said getting a tax refund is a great way to kickstart the new financial year in a healthier state. Very few Australians factor their tax return into their household budget so it can make a big difference to your financial wellbeing when used wisely, he said. While a home loan has one of the lowest rates of debt it s also a long-term affair and any lump sum you tip in today can knock years off the term and save you a bundle in interest along the way. Other alternatives include tipping money into your super fund and maximising the benefits of compounding interest. Mr Browne also suggests those carrying a Higher Education Loan Program (HELP debt) from university degrees should pay it off. He said it s financial noise and despite being one of the cheapest forms of debt its existing rate is the consumer price index (CPI) at 1.9 per cent it s a good debt to pay off. Pay off your HELP debt to free up cash and increase your take-home pay, he said.

75 Hobart Mercury, Hobart Author: Anthony Keane Section: Business News Article type : News Item Classification : Capital City Daily : 28,265 Page: 18 Printed Size: cm² Market: TAS Country: Australia ASR: AUD 1,258 Words: 412 Item ID: Short-term super surges are scary, so staying put pays off ANTHONY KEANE RELYING on one year s financial performance to pick your super fund is dangerous for your wealth, and new numbers prove it. An analysis of 10 years of superannuation fund performance by QSuper has found that chasing fast-growing funds can slash average annual returns almost in half. QSuper found that someone who started with a $50,000 balanced superannuation fund option in July 2007 and swapped their super each year to the previous year s best balanced fund ended up with $68,000 by 2017, compared with $86,700 for a person who stuck with a consistently good fund. The swapper achieved annual returns averaging 3.13 per cent over the 10 years which included the Global Financial Crisis while the saver who stayed put earned 5.66 per cent. QSuper head of investment strategy Damian Lillicrap said 80 to 90 per cent of investment risk in a typical balanced fund came from shares, also called equities. Very good one-year returns, in a year when equities have done well, could be a sign that the fund is not very diversified, he said. A good rule of thumb could be to avoid the top funds in a good equity year and seek out those that are among the top in a poor equity year provided they have good long-term returns. Last year s top performer based on a one-year return may not be in the top 10 or even top 25 the following year. Mr Lillicrap said decisions made on one-year returns were dangerous, and people should check how their fund performed over 10 years. People can compare funds using websites such as morningstar.com.au, superratings.com.au, chantwest.com.au and canstar.com.au, but these can still be tricky to navigate. SuperRatings chief executive officer Kirby Rappell said a good starting point was your annual statement, which should show how your super compared with various benchmarks. He said people should check returns over multiple time periods such as three, five and 10 years to see how funds averaged out. It s about making sure there s a good long-term history rather than it just being flavour of the year, Mr Rappell said. Canstar s group executive financial services, Steve Mickenbecker, said people should make sure they were comparing similar fund options. Don t compare oranges with Ferraris, he said. A lot of outstanding returns come from asset allocation, and there s a cycle. If you are always looking in your rear view mirror you might have missed the cycle where the asset did well...

Australian Financial Review, Australia Author: Andrew Tillett Section: General News Article type : News Item Classification : National : 44,635 Page: 2 Printed Size: 243.

much as $5 billion a year through unpaid wages, invoices and tax bills, a new report claims, as the Turnbull government intensifies its crackdown on dodgy company directors.

Seven businesspeople were also prosecuted with criminal charges, while 34 were banned from acting as a director.

businesses directly to the Australian Taxation Office.

government to provide the essential services Australians rely on," Ms O'Dwyer said.

"The Turnbull government has shown its commitment to taking tough action against fraudulent behaviour like phoenixing.

" Illegal phoenixing activity involves a director deliberately placing a company into liquidation but carrying on business through another trading entity in a bid to avoid paying debts.

activities at $2.85 billion to $5.13 billion annually, based on ATOdata. This is made up of $1.2 billion to $3.

PwC also believes that once the costs wash through the system, phoenixing shaves $1.8 billion to $3.5 billion off Australia's gross domestic product each year.

"Successfully combating potential illegal phoenix activity in a costeffective manner could provide a significant boost to the economy.

76 Australian Financial Review, Australia Author: Andrew Tillett Section: General News Article type : News Item Classification : National : 44,635 Page: 2 Printed Size: cm² Market: National Country: Australia ASR: AUD 4,915 Words: 541 Item ID: Rising cost of phoenixing delivers $5b hit to economy Andrew Tillett Phoenixing is costing the economy as much as $5 billion a year through unpaid wages, invoices and tax bills, a new report claims, as the Turnbull government intensifies its crackdown on dodgy company directors. The government's Phoenix taskforce conducted about 340 reviews and audits in , raising more than $270 million in tax liabilities and collecting more than $190 million in cash. Seven businesspeople were also prosecuted with criminal charges, while 34 were banned from acting as a director. But now the government wants to go further, and Revenue and Financial Services Minister Kelly O'Dwyer will announce on Monday the establishment of a hotline and website for people to dob in businesses directly to the Australian Taxation Office. "It will enable timely action to be taken against companies and their directors, safeguarding employees' entitlements like wages and superannuation, and ensuring taxes are collected for government to provide the essential services Australians rely on," Ms O'Dwyer said. "Phoenixing hurts hardworking Australians, including the company's employees, suppliers, customers and competing businesses. It causes a significant drain on the Australian economy. "The Turnbull government has shown its commitment to taking tough action against fraudulent behaviour like phoenixing. For those who try to beat the system, it's only a matter of time before the law catches up with them." Illegal phoenixing activity involves a director deliberately placing a company into liquidation but carrying on business through another trading entity in a bid to avoid paying debts. The report, prepared by PwC on behalf of the Tax Office, the Fair Work Ombudsman and the Australian Securities and Investments Commission, estimates the total direct cost from phoenixing activities at $2.85 billion to $5.13 billion annually, based on ATOdata. This is made up of $1.2 billion to $3.2 billion owed to trade creditors, $31 million to $298 million in unpaid entitlements for employees and $1.6 billion in unpaid taxes and compliance costs for governments. PwC also believes that once the costs wash through the system, phoenixing shaves $1.8 billion to $3.5 billion off Australia's gross domestic product each year. "In addition to the direct costs incurred by employees, businesses and government there are also flow-on losses through the supply chain," the report said. "Successfully combating potential illegal phoenix activity in a costeffective manner could provide a significant boost to the economy." PwC did not estimate how many directors had engaged in phoenixing activities. The report said more than one million businesses ceased operating during the four financial years to , and 36,532 business failures resulted in insolvency with an external administrator appointed. "In most cases, these may have been legitimate and honest commercial failures; in other cases these failures may have been deliberate," the report said. The government set up its Phoenix taskforce in 2014, bringing together 30 state and federal agencies to deal with rogue company directors. Since that time, the ATO has conducted more than 3000 audits and review cases involving phoenix behaviour, raising more $1 billion in liabilities and recouping more than $450 million on behalf of taxpayers. As part of efforts to stop the practice, the government will require directors to have an identification number, making it easier for regulators to track individuals. Kelly O'Dwyer will announce new measures to combat phoenixing.

Australian Financial Review, Australia Author: Matthew Cranston Section: Property Article type : News Item Classification : National : 44,635 Page: 31 Printed Size: 249.

5 billion in assets with more than 940,000 hectares of forests and land around the world, has separately just closed out a deal where its Australia New Zealand Forest Fund 2 will acquire full

New Forests' Australia New Zealand focused investment funds represent more than $2.

"With prices for timber having gone up - they are now at record highs - it means the value of the underlying assets have also gone up," he said.

77 Australian Financial Review, Australia Author: Matthew Cranston Section: Property Article type : News Item Classification : National : 44,635 Page: 31 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,036 Words: 534 Item ID: New Forests has $873m to plant in pricey market Matthew Cranston Privately owned plantation land manager New Forests has closed its third round of funding for an $873 million fund that will invest in Australian and New Zealand plantation timber, but its chief executive, David Brand, warns that pricing is getting tighter and there won't be any acquisitions of distressed sandalwood. New Forests, which manages $4.5 billion in assets with more than 940,000 hectares of forests and land around the world, has separately just closed out a deal where its Australia New Zealand Forest Fund 2 will acquire full ownership of the Otago Land Company, which holds 22,500 hectares of freehold timberland, as well as a major share in one of the biggest timber operators in New Zealand. Mr Brand has said the manager will keep buying in Australia and New Zealand despite much higher prices than five years ago. "The market has substantially repriced and with the demand for timber at all-time highs the competition for assets is much stronger than five years ago," Mr Brand said. New Forests' Australia New Zealand focused investment funds represent more than $2.75 billion of New Forests' assets under management It is a key market for the manager, whose investor base is 70 per cent pension and superannuation funds. "With prices for timber having gone up - they are now at record highs - it means the value of the underlying assets have also gone up," he said. "We are still bidding for assets that come up for sale, but if someone else comes in over the top thafs fine because we prefer a steady approach." While he said it was becoming more difficult to acquire properties, there were a number of opportunities including potential government privatisations of forestry assets that New Forests would be assessing. However, one area in which he will not be playing is the distressed sandalwood plantations. Troubled grower Quintis revalued down its vast Indian sandalwood plantations by more than $300 million late last year "Sandalwood we find to be too niche for us, it doesn't fit with what we are trying to do," Mr Brand said. New Forests owns soft and hardwood plantations including blue gums and radiata. New Forests' Australia New Zealand Forest Fund 3, which has just closed its latest capital raising, now has capital commitments of $873 million for investments. "Australia and New Zealand are among the most attractive places to invest, there is low sovereign risk and there is a good track record." New Forests, founded by Mr Brand in 2005, is co-owned by Japanese trading and investment giant Mitsui, which has a 22.5 per cent stake. It has been a leading investor in Australia, cleaning up former managed investment scheme plantations such as a 20,657-hectare portfolio of 68 properties across Victoria, SA and WA formerly held in the Australian Sustainable Forestry Investors Fund (ASFI), which was part of the portfolio of the now-defunct forestry company Timbercorp. It picked up the land and trees of the 64-property estate, formerly owned and managed by Gunns Limited. It also purchased a portfolio of forestry assets from listed developer Mirvac Group that had been leased to Timbercorp worth about $60 million. New Forests chief David Brand says competition is much stronger.

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