Daily Telegraph, Sydney, General News, Tim Blair

Transcription

1 MON 08 OCTOBER 2018 Mediaportal Report Climate spin doctors Daily Telegraph, Sydney, General News, Tim Blair 08 Oct 2018 Page words ASR AUD 43,331 Photo: Yes Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: Australian greenies have long held up our sinfully high per-capita emissions as evidence of our wicked ways, but ScoMo's boasts mean they are quick to forget the measure Outside of standard re ligious texts, there is no place on Earth more clogged with fantasy, fable and folklore than a climate activist's mind. View original - Full text: 896 word(s), ~3 mins Audience 232,067 CIRCULATION Power of share dividends Daily Telegraph, Sydney, Business News, David Libby Koch 08 Oct 2018 Page words ASR AUD 37,519 Photo: Yes Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: It's the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. View original - Full text: 874 word(s), ~3 mins Audience 232,067 CIRCULATION Forced to work Herald Sun, Melbourne, General News, Shannon Deery 08 Oct 2018 Page words ASR AUD 14,048 Photo: Yes Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: Retired worker sued over $50k super payment A RETIRED Qantas baggage handler has been forced to work to fund a David and Goliath battle with the airline's superannuation fund. View original - Full text: 314 word(s), ~1 min Audience 303,140 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 Protesting workers face fines The Australian, Australia, General News, Ewin Hannan 08 Oct 2018 Page words ASR AUD 8,721 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Fair Work Ombudsman Sandra Parker has warned that unions and workers face investigation for taking part in ACTU-ed rallies across the country, potentially exposing them to fines if the regulator pursues them for organising or engaging in allegedly unprotected industrial action. As ACTU secretary Sally McManus urged workers to "put on the biggest show they have ever seen", Ms Parker told employers they were obliged to deduct a minimum four hours' wages from workers' pay for unprotected action even if they spent less time away from work to attend a rally. View original - Full text: 874 word(s), ~3 mins Audience 94,448 CIRCULATION Banks urged to slash branches to offset rising costs The Australian, Australia, Business News, Richard Gluyas 08 Oct 2018 Page words ASR AUD 7,358 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: A new report has urged the major banks to rationalise their branch networks to help offset the surge in regulatory and compliance costs, with Westpac and Commonwealth Bank having the most to gain. Morgan Stanley says Westpac and CBA could slash the size of their networks by 34 per cent and 28 per cent, respectively, if duplication were eliminated within a 5km radius of each branch, and 50km for a rural branch. View original - Full text: 615 word(s), ~2 mins Audience 94,448 CIRCULATION Inquiry lifts regulatory risks, but lenders tipped to ride out storm The Australian, Australia, Business News, Richard Gluyas 08 Oct 2018 Page words ASR AUD 4,476 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: The financial services royal commission poses risks to bank profitability, but the sector still has strong pricing power to offset rising funding and technology costs, ratings agency Moody's has said. The global credit rating agency said investors should expect more interventionist and litigious regulators, after stinging criticism by commissioner Kenneth Hayne that conduct regulator ASIC and prudential regulator APRA rarely took banks to court after transgressions. The financial penalties imposed were also immaterial. View original - Full text: 378 word(s), ~1 min Audience 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

3 FINDING A FAIR-GO FUTURE The Australian, Australia, General News, David Uren 08 Oct 2018 Page words ASR AUD 40,494 Photo: Yes Type: News Item Size: 1, cm² National Australia Industry Super Australia - Press ID: The national economy is desperate for visionary reform Federal elections are a policy bazaar. Could you be tempted by some funding for vocational education? Perhaps you'd like some subsidised dental care or a nationbuilding very fast train linking Sydney and Melbourne? To show we care about you, would a local bike path help? View original - Full text: 2185 word(s), ~8 mins Audience 94,448 CIRCULATION ALP 'a risk to property rebound' The Australian, Australia, General News, Simon Benson 08 Oct 2018 Page words ASR AUD 11,937 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: NEGATIVE GEARING PLAN 'THREAT TO MARKET' The number of loan-approved first-home buyers has hit its highest level since the end of the global financial crisis, with the federal government claiming the credit squeeze on investor lending has begun a turnaround in the property market in favour of owneroccupiers. View original - Full text: 985 word(s), ~3 mins Audience 94,448 CIRCULATION Amazon coming to a car yard near you: Cole The Australian, Australia, Business News, Damon Kitney 08 Oct 2018 Page words ASR AUD 22,279 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: He calls himself a "story teller" of the digital world. His clients think he can see into the future. Jeffrey Cole has spent more than three decades advising governments and many of the world's largest and most successful companies on their digital strategies. View original - Full text: 1378 word(s), ~5 mins Audience 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

4 Industry funds could merge The Australian, Australia, Business News, Michael Roddan 08 Oct 2018 Page words ASR AUD 7,049 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: A merger between the $5 billion Maritime Super and the $11bn Mine Super may be on the cards, after advisers were recently appointed to explore a tie-up between the industry funds. A roll-up between the funds would mirror the recent super union merger between the Construction, Forestry, Mining and Energy Union and the Maritime Union of Australia, which combined earlier this year into the amalgamated CFMEU. View original - Full text: 661 word(s), ~2 mins Audience 94,448 CIRCULATION Big four bank chiefs to face parliamentary grilling Age, Melbourne, Business News, Clancy Yeates 08 Oct 2018 Page words ASR AUD 11,077 Photo: Yes Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: ROYAL COMMISSION Bank chief executives face a highly-anticipated public grilling this week that is likely to scrutinise the causes of banking's cultural problems, and what is being done to ensure accountability for the scandals being uncovered by the royal commission. View original - Full text: 389 word(s), ~1 min Audience 83,229 CIRCULATION Note to banks: the long run is now, and the bills are arriving Age, Melbourne, Business News, Ross Gittins 08 Oct 2018 Page words ASR AUD 18,853 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: COMMENT It's easy to take Keynes' dictum that "in the long run we're all dead" out of context. When you I do, you can come badly unstuck - as the banks and insurance companies are discovering. In case you've ever wondered, economists see the short term as being for a year or two, the medium term as about the next 10 years, and the long term as everything further away than that. View original - Full text: 784 word(s), ~3 mins Audience 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

5 Big four bank chiefs to face parliamentary grilling Sydney Morning Herald, Sydney, Business News, Clancy Yeates 08 Oct 2018 Page words ASR AUD 14,407 Photo: Yes Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: Bank chief executives face a highly-anticipated public grilling this week that is likely to scrutinise the causes of banking's cultural problems, and what is being done to ensure accountability for the scandals being uncovered by the royal commission. CEOs from the Commonwealth Bank, Westpac and ANZ Bank will appear before the government's ongoing parliamentary banking inquiry, the first detailed public questioning of the bankers since the royal commission's interim report was published 10 days ago. View original - Full text: 387 word(s), ~1 min Audience 88,634 CIRCULATION Note to banks: the long run is now, and the bills are arriving Sydney Morning Herald, Sydney, Business News, Ross Gittins 08 Oct 2018 Page words ASR AUD 24,884 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: It's easy to take Keynes' dictum that "in the long run we're all dead" out of context. When you do, you can come badly unstuck - as the banks and insurance companies are discovering. In case you've ever wondered, economists see the short term as being for a year or two, the medium term as about the next 10 years, and the long term as everything further away than that. View original - Full text: 782 word(s), ~3 mins Audience 88,634 CIRCULATION Borrowers no longer wedded to banks Adelaide Advertiser, Adelaide, Business News, Tim McIntyre 08 Oct 2018 Page words ASR AUD 7,572 Photo: Yes Type: News Item Size: cm² SA Australia Industry Super Australia - Press ID: From renovations and weddings to cars and holidays, new loan options are emerging, writes TIM McINTYRE BORROWERS are turning away from traditional banks when applying for personal loans and, instead, are flocking to digital, mobile-centric platforms and peer-to-peer lenders. View original - Full text: 513 word(s), ~2 mins Audience 112,097 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 Power of share dividends Adelaide Advertiser, Adelaide, Business News, David Libby 08 Oct 2018 Page words ASR AUD 11,826 Photo: Yes Type: News Item Size: cm² SA Australia Industry Super Australia - Press ID: It's the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. View original - Full text: 874 word(s), ~3 mins Audience 112,097 CIRCULATION Southeast primed to be a major hub for future growth Courier Mail, Brisbane, General News, Julieanne Alroe 08 Oct 2018 Page words ASR AUD 3,636 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: BUILDING liveable cities should be the keystone of any plan to capitalise on southeast Queensland's future population growth. Like much of the rest of Australia, Queensland's population will grow significantly over coming decades, reaching 7.3 million by View original - Full text: 459 word(s), ~1 min Audience 135,007 CIRCULATION Power of share dividends Courier Mail, Brisbane, Business News, David Libby Koch 08 Oct 2018 Page words ASR AUD 13,611 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: It's the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. View original - Full text: 874 word(s), ~3 mins Audience 135,007 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

7 ALL ABOARD THE BRISBANE BULLET Courier Mail, Brisbane, General News, Daryl Passmore 08 Oct 2018 Page words ASR AUD 64,122 Photo: Yes Type: News Item Size: 3, cm² QLD Australia Industry Super Australia - Press ID: EXCLUSIVE: The new plan that gets us from the coast to the CBD in just 45 minutes ALL aboard. A bold proposal for a rapid rail network across southeast Queensland will be unveiled today. View original - Full text: 1132 word(s), ~4 mins Audience 135,007 CIRCULATION Big four bank chiefs to face parliamentary grilling Canberra Times, Canberra, Business News, Clancy Yeates 08 Oct 2018 Page words ASR AUD 5,071 Photo: Yes Type: News Item Size: cm² ACT Australia Industry Super Australia - Press ID: Bank chief executives face a highly-anticipated public grilling this week that is likely to scrutinise the causes of banking's cultural problems, and what is being done to ensure accountability for the scandals being uncovered by the royal commission. CEOs from the Commonwealth Bank, Westpac and ANZ Bank will appear before the government's ongoing parliamentary banking inquiry, the first detailed public questioning of the bankers since the royal commission's interim report was published 10 days ago. View original - Full text: 387 word(s), ~1 min Audience 17,579 CIRCULATION Note to banks: the long run is now, and the bills are arriving Canberra Times, Canberra, Business News, Ross Gittins 08 Oct 2018 Page words ASR AUD 8,785 Photo: No Type: News Item Size: cm² ACT Australia Industry Super Australia - Press ID: It's easy to take Keynes' dictum that "in the long run we're all dead" out of context. When you do, you can come badly unstuck - as the banks and insurance companies are discovering. In case you've ever wondered, economists see the short term as being for a year or two, the medium term as about the next 10 years, and the long term as everything further away than that. View original - Full text: 782 word(s), ~3 mins Audience 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

8 Power of share dividends Northern Territory News, Darwin, Business News, David Libby Koch 08 Oct 2018 Page words ASR AUD 4,473 Photo: Yes Type: News Item Size: cm² NT Australia Industry Super Australia - Press ID: It's the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. View original - Full text: 874 word(s), ~3 mins Audience 11,279 CIRCULATION Rise of piggybank raiders West Australian, Perth, Your Money, Jason Featherby 08 Oct 2018 Page words ASR AUD 5,750 Photo: No Type: News Item Size: cm² WA Australia Industry Super Australia - Press ID: Survey shows parents are treating their kids as banks New research by the Financial Planning Association has revealed more than a quarter of Australian parents lie to their kids about finances. View original - Full text: 620 word(s), ~2 mins Audience 147,676 CIRCULATION Is it time to drink to stay liquid? West Australian, Perth, Your Money, Nick Bruining 08 Oct 2018 Page words ASR AUD 7,153 Photo: No Type: News Item Size: cm² WA Australia Industry Super Australia - Press ID: Grab yourself a nice cup of hot cocoa, its time for a bed-time story from Uncle Nick. It's October 2019 and things are a little bit dicey. View original - Full text: 809 word(s), ~3 mins Audience 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

9 Super funds 'should be activists' Australian Financial Review, Australia, General News, Joanna Mather 08 Oct 2018 Page words ASR AUD 10,174 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Veteran unionist and soon-to-be senator Tony Sheldon has called on industry superannuation fund directors to adopt an expansive and activist view of their duties so they can deal with social problems such as wages "theft" and corporate tax avoidance. Mr Sheldon, who stood down as national secretary of the Transport Workers Union in August and will soon depart the TWU Super board to enter federal Parliament advocates a "holistic interpretation" of trustee obligations under superannuation law. View original - Full text: 832 word(s), ~3 mins Audience 44,635 CIRCULATION ASICs retort to its Hayne flaying Australian Financial Review, Australia, General News, Jennifer Hewett 08 Oct 2018 Page words ASR AUD 8,192 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Kenneth Hayne takes aim at big targets, particularly big banks. But his interim report also hits out hard against the regulators responsible for market behaviour - good and bad. The Australian Securities and Investments Commission comes in for particularly astringent criticism as the key organisation supposedly in charge of finding examples of misconduct or illegality in financial services, punishing it as required and preventing it recurring. View original - Full text: 949 word(s), ~3 mins Audience 44,635 CIRCULATION Bank bonuses in gun as CEO grilling looms Australian Financial Review, Australia, Companies and Markets, Joyce Moullakis 08 Oct 2018 Page words ASR AUD 6,270 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: The chairman of federal parliament's Standing Committee on Economics, Tim Wilson, has lashed out at the conduct failures of the major banks, saying they must learn from the "reality check" of the Hayne royal commission and change their bonus-led cultures. His comments come as the chief executives of the nation's largest four banks prepare to face their first public grillings, beginning Thursday, over rampant misconduct and potential breaches of legislation detailed in the royal commission's interim report. View original - Full text: 738 word(s), ~2 mins Audience 44,635 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

10 KPMG's Wiise set to take on Xero, MYOB Australian Financial Review, Australia, Companies and Markets, Yolanda Redrup 08 Oct 2018 Page words ASR AUD 6,998 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Exclusive KPMG's new cloud accounting player Wiise is hoping a new relationship with the "Netflix of cloud licensing subscriptions" will help it quickly gain traction to take on the likes of Xero and MYOB. View original - Full text: 667 word(s), ~2 mins Audience 44,635 CIRCULATION UniSuper bullish on 'fortress' Aurizon Australian Financial Review, Australia, Companies and Markets, Jenny Wiggins 08 Oct 2018 Page words ASR AUD 5,461 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: UniSuper, which has described Aurizon as a "fortress asset", is now the rail company's biggest investor, lifting its stake to 11.5 per cent after the UK's Children's Investment Fund slashed its holdings. UniSuper, which previously owned 7.5 per cent of Aurizon, has replaced The Children's Investment Fund (TCI) as the rail company's top investor after TCI slashed its stake to 10.2 per cent from 19 per cent in late September. View original - Full text: 545 word(s), ~2 mins Audience 44,635 CIRCULATION PEXA: Heads Link wins, tails it still doesn't lose Australian Financial Review, Australia, Companies and Markets 08 Oct 2018 Page words ASR AUD 3,439 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Hats off to Link Group's wily dealmakers John McMurtrie and John Hawkins. link, flanked by Commonwealth Bank of Australia and Morgan Stanley Infrastructure Partners, will submit its binding bid for property settlements exchange PEXA on Monday (October 8). View original - Full text: 422 word(s), ~1 min Audience 44,635 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

11 Power of share dividends News Mail, Bundaberg QLD, General News, Libby David Koch 08 Oct 2018 Page words ASR AUD 757 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: It's the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. View original - Full text: 874 word(s), ~3 mins Audience 6,176 CIRCULATION Make sure your super travels as well as you Geelong Advertiser, Geelong VIC, General News, Sam Stevenson 08 Oct 2018 Page words ASR AUD 1,037 Photo: Yes Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: ANYONE planning a move overseas for work may want to consider the superannuation implications of the move. If you're a permanent resident, your super will remain subject to the same rules as if you were living here. View original - Full text: 442 word(s), ~1 min Audience 16,687 CIRCULATION Power of share dividends Daily Mercury, Mackay QLD, General News, Libby David Koch 08 Oct 2018 Page words ASR AUD 711 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: It's the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. View original - Full text: 874 word(s), ~3 mins Audience 7,738 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 Borrowers no longer wedded to banks Hobart Mercury, Hobart, Business News, Tim McIntyre 08 Oct 2018 Page words ASR AUD 3,607 Photo: Yes Type: News Item Size: cm² TAS Australia Industry Super Australia - Press ID: From renovations and weddings to cars and holidays, new loan options are emerging, writes TIM McINTYRE BORROWERS are turning away from traditional banks when applying for personal loans and, instead, are flocking to digital, mobile-centric platforms and peer-to-peer lenders. A CommSec Economic Insights report shows loans by non-bank financial institutions were up 10.3 per cent for the year to August. View original - Full text: 513 word(s), ~2 mins Audience 28,265 CIRCULATION Questions that need answers West Australian, Perth, General News, Shane Wright 08 Oct 2018 Page words ASR AUD 13,131 Photo: Yes Type: News Item Size: cm² WA Australia Industry Super Australia - Press ID: Ninety-nine questions. That's what Kenneth Hayne, the man heading the royal commission into the banking and financial sectors, has posed in his interim report. Ninety-nine questions that go to the heart of the way we use our banks, get insurance, make investments and plan for our retirement. View original - Full text: 1089 word(s), ~4 mins Audience 147,676 CIRCULATION Power of share dividends Gladstone Observer, Gladstone QLD, General News, Libby David Koch 08 Oct 2018 Page words ASR AUD 762 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: It's the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. View original - Full text: 874 word(s), ~3 mins Audience 3,301 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

13 Metropolis plan not impossible Queensland Times, Ipswich QLD, General News, Daryl Passmore 08 Oct 2018 Page words ASR AUD 426 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: A BOLD $70 billion proposal to fast-track southeast Queensland's development into a world-class super- metropolis of the future has been unveiled. A new report recommends a rapid rail network that would carry passengers to the centre of Brisbane from the Gold Coast, Sunshine Coast, Ipswich and even Toowoomba in under 45 minutes. View original - Full text: 884 word(s), ~3 mins Audience 6,256 CIRCULATION I did a budget and it scared me into saving Border Mail, Albury-Wodonga, General News, Riley-Rose Harper 08 Oct 2018 Page words ASR AUD 2,250 Photo: Yes Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: R&R TIME SO, I messed up. View original - Full text: 792 word(s), ~3 mins Audience 13,519 CIRCULATION LETTERS TO THE EDITOR Border Mail, Albury-Wodonga, Letters 08 Oct 2018 Page words ASR AUD 513 Photo: No Type: Letter Size: cm² VIC Australia Industry Super Australia - Press ID: LEARN FAIR GO FROM HISTORY The book, Hell Ship by Michael Veitch, is the true story of a big sailing ship, the Ticonderoga, which was acquired by the English government to transport poor people to the colonies. In August 1852, 800 passengers and crew were crammed in and set sail from Liverpool headed for Melbourne. To save time the route chosen was via the Atlantic Ocean, around the bottom of South America and then to Bass Strait and Melbourne. There were no stops along the way to take on fresh food or water. Stores had been designed to last for the 12 week trip. View original - Full text: 380 word(s), ~1 min Audience 13,519 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

14 Power of share dividends Queensland Times, Ipswich QLD, General News 08 Oct 2018 Page words ASR AUD 616 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: It's the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. View original - Full text: 874 word(s), ~3 mins Audience 6,256 CIRCULATION FINANCIAL FAST FACTS West Australian, Perth, Your Money 08 Oct 2018 Page words ASR AUD 12,062 Photo: Yes Type: News Item Size: cm² WA Australia Industry Super Australia - Press ID: Numbers you need to know TAX RATES 0 to $18,200 Nil $18,201 $37, for each $1 over $18,200 $37,001 $90,000 $3572 plus 32.5 for each $1 over $37,000 $90,001 $180,000 $20,797 plus 37 for each $1 over $90,000 $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 View original - Full text: 723 word(s), ~2 mins Audience 147,676 CIRCULATION Bank compo schemes need scrutiny Australian Financial Review, Australia, General News, Adele Ferguson 08 Oct 2018 Page words ASR AUD 12,318 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Deliberately delaying compensation payouts, strategising ways to reduce remediation bills, using members' money to pay for refunds and ignoring requests from the regulator to pay up are just some of the ways financial institutions have been caught doubling down on poor behaviour. It has prompted calls in some quarters for an independent oversight of remediation programs as well as the introduction of a compensation scheme of last resort for those who fall through the cracks when a licensee closes or the professional indemnity insurance cover is inadequate. View original - Full text: 1309 word(s), ~5 mins Audience 44,635 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

15 LETTERS Illawarra Mercury, Wollongong NSW, Letters 08 Oct 2018 Page words ASR AUD 591 Photo: No Type: Letter Size: cm² NSW Australia Industry Super Australia - Press ID: LETTERS OUT OF CONTROL Since day one of the royal commission into banking the commission has uncovered a vast amount of evidence of widespread criminality by big banks. Here is a few things that have been uncovered so far, The Commonwealth Bank charging deceased people fees for over 10 years, also charging millions in fees and they still haven't paid them all. Westpac refused to stop pushing people into dodgy products,saying it would put them at a commercial disadvantage. View original - Full text: 157 word(s), <1 min Audience 10,806 CIRCULATION Power of share dividends Gold Coast Bulletin, Gold Coast QLD, General News, Libby David Koch 08 Oct 2018 Page words ASR AUD 5,773 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: It's the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. View original - Full text: 874 word(s), ~3 mins Audience 21,468 CIRCULATION Power of share dividends Morning Bulletin, Rockhampton QLD, General News, Libby David Koch 08 Oct 2018 Page words ASR AUD 878 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: It's the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. View original - Full text: 874 word(s), ~3 mins Audience 9,376 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

16 Borrowers no longer wedded to banks Cairns Post, Cairns, General News, Tim McIntyre 08 Oct 2018 Page words ASR AUD 2,543 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: From renovations and weddings to cars and holidays, new loan options are emerging, writes TIM McINTYRE BORROWERS are turning away from traditional banks when applying for personal loans and, instead, are flocking to digital, mobile-centric platforms and peer-to-peer lenders. View original - Full text: 513 word(s), ~2 mins Audience 13,896 CIRCULATION Power of share dividends Cairns Post, Cairns, General News, Libby David Koch 08 Oct 2018 Page words ASR AUD 3,902 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: It's the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. View original - Full text: 874 word(s), ~3 mins Audience 13,896 CIRCULATION Power of share dividends Townsville Bulletin, Townsville QLD, General News 08 Oct 2018 Page words ASR AUD 4,054 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: It's the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. View original - Full text: 874 word(s), ~3 mins Audience 16,484 CIRCULATION COPYRIGHT This report and its contents are for the internal research use of Mediaportal subscribers only and must not be provided to any third party by any means for any purpose without the express permission of Isentia and/or the relevant copyright owner. For more information contact copyright@isentia.com DISCLAIMER Isentia makes no representations and, to the extent permitted by law, excludes all warranties in relation to the information contained in the report and is not liable for any losses, costs or expenses, resulting from any use or misuse of the report.

17 Daily Telegraph, Sydney Author: Tim Blair Section: General News Article type : News Item Classification : Capital City Daily Audience : 232,067 Page: 13 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 43,331 Words: 896 Item ID: Page 1 of 3 Climate spin doctors an greenies have long held up our sinfully high per-capita emissions as evidence icked ways, but ScoMo s boasts mean they are quick to forget the measure TIM BLAIR Outside of standard religious texts, there is no place on Earth more clogged with fantasy, fable and folklore than a clie activist s mind. You name it a owd are into i olar bears and inking Pacific friendly wind tu It doesn t m evidence emer remain safely a line, the averag a sumo wrest index, coal-fire cues millions of ese from povert nd turbine just dor in half. rticles of faith d by mere fac They believe it. That

18 Daily Telegraph, Sydney Author: Tim Blair Section: General News Article type : News Item Classification : Capital City Daily Audience : 232,067 Page: 13 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 43,331 Words: 896 Item ID: Page 2 of 3 But lately, followi ade of worshipful o cherished myth of th has finally been retire This is the myth o the worst per capita emitter on Earth. You may have hea any number of act leftist politicians and employable nephew uses glue for entirely purposes and does mushrooms from sho It s a fantastical myth on so many le inally devised as a wa cealing Australia overall contribution leged global warming The motivation h obvious. After all, t no way any sane p would be convinced b weeny 1.3 per cent world s human-ge carbon dioxide total t industry-crippling an measures. Our emiss ready so insignificant ing them further wou difference at all. But being the pl per-capita emitter sou bigger and spook though it makes abso utely no sense even from an environmentalist perspective. As I wrote in 2011: If you were the environment, and if you were getting awfully bashed up by carbon emissions, would you worry about wheth- 14 f h h fessor Ross Garnaut, the former climate change adviser for the Australian government, in the 2011 update to his Climate Change Review. O i b i h change minister Greg Combet in Again, this was never true. Australia is beaten for per capita carbon dioxide output by plenty of civilised, modern, developed and decent countries. And also by Qatar. Yet even me a matter of public ve carbon howlers ayward belief: e world s highest per use gas emitters, the Canberra Times y is in. Australia is the per capita in the or advocate and aca- Reece, August works on these people. nally did it in for the was some crafty rheast week from Prime Morrison. n the ABC over Ausmissions figures, Morprecisely the same ment used for so long stralia and to shame ng ruinous carbon-. missions per capita at el in 28 years, the said. for The Guardian, whose piece just four the ABC cited our utput and came comternational per capita was outraged by Morscripture. t a worthless boast, it out the impact on the Jericho wailed. The esn t react on a per eacts to the total level s. ly cannot remember previously written, in the same camp as that s the last we ll eft about Australia s t was a useful device d be twisted to paint n the worst possible now, with Australia s output declining, it is and says nothing. climate changed as quickly as these dopes change their arguments, we might actually have ng to worry about. One cherished myth of the climate church has been retired Australia being the worst per capita carbon dioxide emitter

19 Daily Telegraph, Sydney Author: Tim Blair Section: General News Article type : News Item Classification : Capital City Daily Audience : 232,067 Page: 13 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 43,331 Words: 896 Item ID: Page 3 of 3

20 Daily Telegraph, Sydney Author: David Libby Koch Section: Business News Article type : News Item Classification : Capital City Daily Audience : 232,067 Page: 24 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 37,519 Words: 874 Item ID: Page 1 of 3 David & Libby It s the bonus that many investors forget about but are still more than happy to accept Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. The power of dividends to supercharge the performance of listed shares (or cushion them in a downturn) is always underestimated as we tend to focus only on share-price movement. We often forget the dividend return. Since January 2004, the indexed share-price return of stocks in the All Ordinaries Index is around 90 per cent. But the total return (shareprice movement plus dividends) is 255 per cent that s the power of dividends. BIG RETURNS Studies in the US show that over a year, 80 per cent of a share s return comes from fluctuations in the share price. But over a five-year investment horizon, 80 per cent of a share s return comes from dividend yield and dividend growth. With many top 200 companies paying a dividend yield of 5-7 per cent, add the impact of franking credits and that return can jump to an impressive 9 per cent. Fully franked dividends are those from companies that have paid the full rate of company tax on their profits. As a result, the share of profits they pay shareholders as a dividend comes with a tax credit equal to the amount of company tax which has been paid to avoid double taxation. For example, the major banks pay the full 30 per cent company tax on profits so their shareholders receive a dividend with a 30c-in-thedollar tax credit. If a shareholder s marginal tax rate is less than 30 per cent, then that dividend is tax-free. The four major banks all have fully franked dividend yields over 6 per cent, and we bet they don t offer that sort of tax-advantaged income return through any of their banking products to customers. They are attractive returns and a powerful boost to investor returns, but it must be acknowledged that dividend yields are a reflection of not only the share of profits a company pays out but also its share price. As dividends are fixed as a dollar amount twice a year, the percentage dividend yield will go up if the dividend payout stays the same, while the share price goes down. So, an investor has to balance up the current attractive dividend yield with the prospects of the individual companies. Is a low share price because the company is in a prolonged slump and may not be able to maintain its dividend payout? Or is it a short-term downturn and the company is strong enough to bounce and maintain its dividend? If, in consultation with your broker or financial planner, it s the latter reason, then investing in strong blue-chip stocks with good yields can be

21 Daily Telegraph, Sydney Author: David Libby Koch Section: Business News Article type : News Item Classification : Capital City Daily Audience : 232,067 Page: 24 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 37,519 Words: 874 Item ID: Page 2 of 3 attractive. Financial services giant AMP is an example of this. In April, its share price was as high as $5.47, while today, it s down around $3 because of the hammering it received from the banking royal commission. That plunge in share price has seen the AMP dividend yield rise to 6.25 per cent. A similar situation, although not to the same extent, has occurred across all the major banking shares as investors nervously wait for the impact of potential regulatory changes. Westpac has a 6.7 per cent dividend yield, NAB 7.2 per cent, CBA 6.5 per cent and ANZ 5.7 per cent all fully franked. Can the banks bounce with profits and dividends unharmed or will they be less profitable from any proposed dividends? It s all a question of balance. A good dividend yield from a company producing strong cash flows can provide not only a welcome income stream for investors but ensure a buffer to a falling share price. to supercharge or cushion share price performance, they have become increasingly important for investors looking for income returns to pay bills. After last week s decision from the Reserve Bank to keep official interest rates on hold again, many analysts are predicting the next rise in rates will not be until the middle of next year, with some even saying it s more likely in Of course, banks have been increasing home-loan interest rates out of cycle but they generally haven t been lifting savings or term deposit rates. So, a 6-7 per cent fully franked dividend looks incredibly attractive in a low-interest rate, low-inflation environment. As we ve said, though, you need to get professional investment advice to build the right income investment portfolio for you. A mixture of dividends, income hybrids and bonds can offer good returns. LOOK AROUND The key is to be selective and look for a strong dividend yield, dividend growth and good cash flow to ensure that dividend can be maintained. Brokers consistently have CSR, Telstra, AGL, Wesfarmers and WAM in their lists of stocks paying good dividends. Not only do strong dividends make sense

22 Daily Telegraph, Sydney Author: David Libby Koch Section: Business News Article type : News Item Classification : Capital City Daily Audience : 232,067 Page: 24 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 37,519 Words: 874 Item ID: Page 3 of 3

23 Herald Sun, Melbourne Author: Shannon Deery Section: General News Article type : News Item Classification : Capital City Daily Audience : 303,140 Page: 11 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 14,048 Words: 314 Item ID: Page 1 of 1 Forced to work Retired worker sued over $50k super payment SHANNON DEERY A RETIRED Qantas baggage handler has been forced to work to fund a David and Goliath battle with the airline s superannuation fund. Andrew Rizzo, 63, is being pursued for almost $50,000 mistakenly paid to him by Qantas Super, which admitted the error but is demanding the money. Six years after making the incorrect payment, the super fund has now launched court action in a bid to recover the money. It s really not fair, Mr Rizzo said. They re making my life miserable, but I ve done nothing wrong this is their mistake. Mr Rizzo said he had started part-time labouring work and was looking for full-time employment to fund lawyers to defend the court action. Something is wrong here I m being treated like I m a criminal, he said. I ve received threatening letters, they re using scare tactics. Mr Rizzo, who worked for Qantas for 17 years, said he used the money to settle debts from his family breakdown and enter retirement. When I retired, I had a statement from Qantas Super. I didn t go to university I looked at that statement and looked at the bottom line. Mr Rizzo said he sought financial advice based on the statements provided to him by Qantas Super. His lawyer, James Naughton, from Gordon Legal, said based on Qantas Super s representations, Mr Rizzo understood that he was able to settle his outstanding $50,000 debts and subsist on the remaining $208, in his retirement. On September 25, 2014, Qantas Super advised Mr Rizzo of an overpayment in his superannuation entitlement in the amount of $49,390, because of a mistake the fund had made, and requested for the money to be repaid. Qantas Super launched proceedings against Mr Rizzo in May. The matter is scheduled to return to court this week. Qantas Super was approached for comment. shannon.deery@news.com.au Andrew Rizzo

24 The Australian, Australia Author: Ewin Hannan Section: General News Article type : News Item Classification : National Audience : 94,448 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,721 Words: 874 Item ID: Page 1 of 2 Protesting workers face fines EXCLUSIVE EWIN HANNAN WORKPLACE EDITOR Fair Work Ombudsman Sandra Parker has warned that unions and workers face investigation for taking part in ACTU-ed rallies across the country, potentially exposing them to fines if the regulator pursues them for organising or engaging in allegedly unprotected industrial action. As ACTU secretary Sally McManus urged workers to put on the biggest show they have ever seen, Ms Parker told employers they were obliged to deduct a minimum four hours wages from workers pay for unprotected action even if they spent less time away from work to attend a rally. Unions will kick off a month of protests with a rally in Perth on October 18, but the biggest day of disruption is likely to be on October 23 when workers hold rallies in Melbourne, Sydney, Wollongong, Gladstone, Cairns, Rockhampton and Townsville. Employers have urged Ms Parker to take a stand after union leaders promised up to 150,000 workers would attend the largest ever union rally in Melbourne, shutting city construction projects and the city s waterfront for at least several hours. Referring to the October 23 rallies, Ms Parker said she wanted to remind employees, employers and unions of their obligations under the Fair Work Act. As a part of the FWO s functions under the Fair Work Act, the FWO will monitor and investigate potential noncompliance with the commonwealth workplace laws, including allegations of people engaging in or organising unprotected industrial action, she said through a spokeswoman. Please be aware that if an employee fails to attend the workplace or stops work without authorisation from their employer, this conduct may be unprotected industrial action in contravention of the Fair Work Act. Continued on Page 2 EDITORIAL P13 McManus Parker Protesting workers warned they face fines Continued from Page 1 ductivity sapping, economydamaging rallies in October will be a small insight to what will happen across Australia on a rolling basis under a Shorten government, Ms O Dwyer said. If Sally McManus, the ACTU, and Labor led by Bill Shorten were serious about increasing prosperity for all Australians, they would promote co-operation and collaboration between business and employees, not chaos and conflict. The ACTU has funded new television and radio advertisements featuring a woman claiming that companies were making huge profits while refusing to grant pay rises to workers that kept pace with the cost of living. Things are really out of balance, she says in the ad. We re all Any person knowingly involved in a contravention of the Fair Work Act is also taken to have contravened that provision. Where an employee has engaged in unprotected industrial action, the employer is required under the Fair Work Act to deduct a minimum of four hours wages from the employee, even if the industrial action was less than four hours. The Coalition last year increased the maximum civil penalty in relation to unprotected industrial action to $12,600 for an individual and $63,000 for a corporation. Ms McManus said Australia had a long history of democratic protest that had brought about beneficial change in the community. If you have a situation where working people or anyone can no longer protest because they re threatened with their jobs and they re threatened with fines, it means that we are not a fair democracy, she said. Jobs and Industrial Relations Minister Kelly O Dwyer slammed the protest rallies yesterday, saying Australians do not want a return to the workplace conflict of last century. The road-clogging, pro- getting ripped off. Let s stand together and get things changed. The radio advertisements urge workers to attend the rallies that will also be held in Hobart, Launceston and Burnie on October 24; Adelaide on October 25; Newcastle on October 30 and Brisbane and Canberra on November 20. Ms McManus said the national paid advertising campaign and rallies were necessary because Scott Morrison was deaf to the concerns of workers.

25 The Australian, Australia Author: Ewin Hannan Section: General News Article type : News Item Classification : National Audience : 94,448 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,721 Words: 874 Item ID: Page 2 of 2 Our campaign is designed to make him listen, he said. There has been times in the history of our country where Australian unions have had to be the ones that stand up and say change needs to happen. This is one of those moments. So when women didn t have equal pay, when we didn t have superannuation, when we didn t have Medicare, we did the same thing and we re doing the same now. The Prime Minister said Ms McManus was the person who said that she didn t think necessarily the laws applied to the union movement. So Bill Shorten s problem is he is going to be the complete puppet of a union movement that thinks it s OK to not have to follow the law, he said. We shouldn t let the law-breakers become the lawmakers under Bill Shorten. Business Council of Australia president Jennifer Westacott said changing the workplace laws to allow for sector-wide bargaining as proposed by the ACTU would only empower the big unions at the expense of workers. We shouldn t unravel a tried and tested system, established by Labor, and take ourselves to the 1970s. We don t need to go to a militant, strike-ridden, conflict-driven industrial relations system in this country, she said We want people to have better working conditions and we want the conditions for higher incomes. But wages growth is driven by productivity, productivity is driven by investment. This is just basic economics.

26 The Australian, Australia Author: Richard Gluyas Section: Business News Article type : News Item Classification : National Audience : 94,448 Page: 19 Printed Size: cm² Market: National Country: Australia ASR: AUD 7,358 Words: 615 Item ID: Page 1 of 2 Banks urged to slash branches to offset rising costs RICHARD GLUYAS BANKING A new report has urged the major banks to rationalise their branch networks to help offset the surge in regulatory and compliance costs, with Westpac and Commonwealth Bank having the most to gain. Morgan Stanley says Westpac and CBA could slash the size of their networks by 34 per cent and 28 per cent, respectively, if duplication were eliminated within a 5km radius of each branch, and 50km for a rural branch. However, savings would be limited to 3-4 per cent of total costs, because branches only account for 15 per cent of a major bank s cost base compared with about 55 per cent for staff costs. Much greater savings 6-9 per cent of total costs could be achieved from the least likely strategy of branchtopia, or a full embrace of mobile banking where branches go cashless and half the network is closed. A true step-change on costs for the banks requires not just a rethink of branch strategy but also a holistic investment in digital to streamline customer processes and collapse multiple legacy IT systems, the report says. With the advent of real-time payments, banking is at the tipping point as consumers across the globe turn to mobile banking, replacing branch visits with phone swipes and saving 10 per cent of consumer expenses by Morgan Stanley says the market is underestimating the outlook for a short-term hike in expenses due to compliance costs. The banks also have to maintain and refresh existing IT systems, undertake investment in new initiatives such as real-time payments, open banking and comprehensive credit reporting, and respond to the threat of disruption by fintech companies. The report examines four different scenarios for branch networks. The first, which is the most likely, involves persisting with the current strategy. In the financial years 2014 to 2017, the big four have been cutting their branch networks, but not significantly. ANZ has been the most aggressive, closing 11 per cent of its network, or about 40 branches a year, as it pursues a more brokerled strategy on mortgages. About 12 per cent of its branches have also been reformatted, with the footprint reduced by half and the introduction of more self-service digital areas. CBA is at the other end of the spectrum, shutting down just 2.5 per cent of its branches over the same period. However, the bank recently announced it would close 29 east coast outlets. The second scenario is a rationalisation of the branch overlap, while the third is to go digital and cashless in the network. The final option is branchtopia. Morgan Stanley says the intense focus on the sector means it s unlikely the banks will be able to significantly cut the cost of their networks within the next year or so. Even so, it says it s time they followed the approach of European banks, where cost savings from branches mitigate against the risk of a slide in profitability. As a threshold issue, both Westpac and CBA would have to reconsider their multibrand strategies. The report says Westpac has the most pressing need to review its investment and expense-growth strategy, but it also has the most potential cost savings from a branch restructure. CBA has the most valuable branch network, which reaches 65 per cent of the nation s working population and 56 per cent of the income. While branch transactions are falling in volume and dollar terms, physical outlets have an important role because they handle the highest-value transactions 2 per cent of transactions by number represents 34 per cent by value. Morgan Stanley says branches will continue to be an important part of bank customer sales and service, but they can become much more efficient.

27 The Australian, Australia Author: Richard Gluyas Section: Business News Article type : News Item Classification : National Audience : 94,448 Page: 19 Printed Size: cm² Market: National Country: Australia ASR: AUD 7,358 Words: 615 Item ID: Page 2 of 2 Australian banks: rural vs urban branches Urban Rural ANZ CBA NAB Westpac Bendigo BoQ SUN Source: AlphaWise, Morgan Stanley

28 The Australian, Australia Author: Richard Gluyas Section: Business News Article type : News Item Classification : National Audience : 94,448 Page: 19 Printed Size: cm² Market: National Country: Australia ASR: AUD 4,476 Words: 378 Item ID: Page 1 of 1 Inquiry lifts regulatory risks, but lenders tipped to ride out storm RICHARD GLUYAS OUTLOOK The financial services royal commission poses risks to bank profitability, but the sector still has strong pricing power to offset rising funding and technology costs, ratings agency Moody s has said. The global credit rating agency said investors should expect more interventionist and litigious regulators, after stinging criticism by commissioner Kenneth Hayne that conduct regulator ASIC and prudential regulator APRA rarely took banks to court after transgressions. The financial penalties imposed were also immaterial. Following the commission, we expect that regulatory bodies will seek higher penalties for future infringements and may be more litigious in settling disputes, Moody s said. This could include significant penalties being recommended in the final report. We still expect financial penalties to be manageable given the strong profitability of the banking sector, but increased penalties will create additional pressure on bank profits. Rival rating agency Standard & Poor s said last month the major banks remained under credit pressure, with the federal government s support for the sector also under pressure. Despite this, the agency maintained a AA rating with a negative outlook for ANZ, National Australia Bank, Commonwealth Bank and Westpac. Moody s said underwriting practices for residential mortgages would tighten further in the wake of the royal commission, as the banks continued to refine their processes around income and expense verification. Restrictions were likely on the use of third-party benchmarks such as the household expenditure measure, or HEM, but a total ban was unlikely. This could still lead to a further tightening in the availability of credit. Housing credit growth in the year to August was only 5.4 per cent its lowest point since January The trend had contributed to a decline in house prices in the key markets of Melbourne and Sydney. Moody s said that in the longer term technology could help improve the process of income and expense verification. We expect that technological advancement, as well as the introduction of open banking in July 2019, will provide banks with greater capability to fully assess borrower s living expenses and credit commitments, which, over time, could lead to lower reliance on HEM as a benchmark measure, the agency said. While bank profitability could weaken over the next 18 months, Moody s said credit profiles would continue to be supported by a strong operating environment.

29 The Australian, Australia Author: David Uren Section: General News Article type : News Item Classification : National Audience : 94,448 Page: 11 Printed Size: cm² Market: National Country: Australia ASR: AUD 40,494 Words: 2185 Item ID: Page 1 of 5 FINDING A FAIR-GO FUTURE The national economy is desperate for visionary reform DAVID UREN ASSOCIATE EDITOR Federal elections are a policy bazaar. Could you be tempted by some funding for vocational education? Perhaps you d like some subsidised dental care or a nationbuilding very fast train linking Sydney and Melbourne? To show we care about you, would a local bike path help? In the 2016 federal election, the Coalition government was relatively parsimonious, holding out 70 policies costing a total of $1.1 billion, or an average of $16 million each, although there were 100 or so further small local grants (a billy cart track received funding) distributed to predominantly Coalition-held electorates. Labor, by contrast, assembled 281 policies costing $16.5bn, for an average of a heftier $59m. But it was hard to see on either side a vision for how the nation might be made more prosperous and fair, matched by policies to achieve it. In the early lead-up to the next federal election, which must be held by May, there has been a sharp distinction drawn in the tax policies of the two parties. The rhetoric of the leadership rivals conveys a clear choice. The government is holding out the promise of the biggest overhaul of the personal tax scales since the 1980s that would, by 2024, abolish the 37 per cent tax bracket, with everyone earning from $41,000 to $200,000 paying the same 32.5c in the dollar. Labor is opposing this, saying it is unfair and, at a cost of $120bn, unaffordable. By contrast, it has proposed a series of base-broadening tax measures that would raise an extra $160bn over 10 years through curbs on dividend imputation, negative gearing, trusts, superannuation and capital gains, as well as higher marginal rates for high-income earners. Scott Morrison has presented the Coalition as the party that will deliver the fair-go economy. We embrace the economics of opportunity and personal responsibility. We reject the politics of envy and we accept the responsibility of careful and disciplined financial and budget management, the Prime Minister says. Bill Shorten has aimed his pitch at those who are struggling to raise their living standards. Since when, in our democracy, is to complain about inequality envy? he asks. Labor s economic proposition is that Australia thrives when working-class and middleclass Australians get a fair go. Both the Prime Minister and the Opposition Leader will spell out how they would achieve a more prosperous and equitable Australia in landmark speeches to this week s Melbourne Institute/ The Australian Economic and Social Outlook Conference. In the case of Morrison, it will be his first major speech since being named Prime Minister six weeks ago. The conference has been a joint endeavour between The Australian and the Melbourne Institute, with the support of the Productivity Commission, since It is a platform for leaders from politics, academe, business and non-government organisations to make the case for reform. The aim of this year s conference is to encourage political leaders to raise their ambition for what can be achieved. Business Council of Australia chief executive Jennifer Westacott worries that reform is now too difficult, as the case for it becomes lost in the community mind. We have been really good in a crisis but bad when things are going well, Westacott says. People always hark to the 1980s reforms, but they came off the of the 1970s recession and the fiscal crisis under the Whitlam government. It was easier to make the case and have both sides of politics get behind a complex set of reforms. She worries that Australia s reasonable economic growth and falling unemployment have blunted the political will for change at a time when there are serious risks to Australia s continued prosperity. She believes the elevated level of housing debt one of the highest in the advanced world is a bigger risk than generally realised in a world of rising interest rates, while global trade tensions also expose a vulnerability. Australia has fewer buffers against a downturn than it did when the global financial crisis hit and yet there is no sense of urgency about the need to improve competitiveness. Westacott argues that Australia s healthy economic growth, with GDP rising 3.4 per cent over the past year, is more a product of rapid population growth and government and consumer spending than of the business investment that would add to the nation s resilience. Productivity is rising at sluggish rates last seen in the 70s. Westacott says government does not have to embrace a broad and sweeping reform agenda but it does need to do something. And yet the experience of the past decade is that it is difficult to get any material change through the political system, with the failure of both company taxes

30 The Australian, Australia Author: David Uren Section: General News Article type : News Item Classification : National Audience : 94,448 Page: 11 Printed Size: cm² Market: National Country: Australia ASR: AUD 40,494 Words: 2185 Item ID: Page 2 of 5 and the national energy guarantee only the latest demonstrations of this trend. Although inequality is widely debated, there is no determined effort to tackle the biggest problem associated with it, which is entrenched disadvantage. The fact is that we cannot budge that. Westacott notes that the Productivity Commission s report on policy directions to raise productivity issued late last year has not been taken from the bookshelves. Called Shifting the Dial, the report argues that productivity the use we make of the resources we have available is growing at about half its historic rate. The commission argues that the economic reforms of the 90s and early 2000s brought a step change in Australia s productivity, enabling it to catch up with other advanced nations after decades of lagging far behind. But since then not only has Australia s productivity growth declined, so too has the rest of the world s. Its report, intended as the first of a regular five-yearly review of productivity reform, highlighted the potential gains from improving the delivery of government services, including health, vocational education and urban infrastructure, and lifting the efficiency of markets, whether governing energy, intellectual property or emerging digital services. Deloitte Access Economics partner Chris Richardson says living standards have not advanced significantly in Australia since late 2011, as China slowed. Things are currently a bit better but prosperity has been under challenge since Australia lost its tail wind, he says. The easy gains from slipstreaming the Chinese boom are no longer available and it is now more of a struggle to achieve real growth. He says the debates about fairness that concern the low rate of wage growth, the level of unemployment benefits and the impact of technology have gained traction because prosperity is not rising as it was. Prosperity and fairness do go together. We think of them being in competition with each other but, on average, the world s fairest societies are also its richest societies. He notes that International Monetary Fund research showing that fairer societies grow faster, with living standards rising and more sustained bursts of growth. They don t disappear into squabbles over who gets what. And yet the political system struggles to deliver the reforms that would make a difference. Cutting the company tax rate would have delivered tangible gains. We ve spent the last couple of years slamming our heads against a brick wall on that, so any politician who wants to fight a good reform fight in Australia over the next few years is going to think twice. Corporate tax is a dead duck for at least a couple of parliaments, and it is entirely a self-inflicted wound. Privately, many politicians would agree about the need for reform in indirect taxes, retirement income, state taxes and taxing the digital economy, and yet they don t know how to do it. Richardson recalls the early days of Malcolm Turnbull s leadership when he called for an adult conversation on tax reform. The only reason it lasted for a month was because there was Christmas in between, he says. Terry Moran, who was secretary of the Prime Minister s Department during the Rudd-Gillard government and now chairs the Centre for Policy Development, says Australia has had two long-term waves of policy reform since World War II. The first was the national development wave that included the prime ministerships of John Curtin, Ben Chifley, Bob Menzies and Harold Holt, Moran says. By the time of Holt s death in 1967, Australia had entered a debate that ran for 15 years about what could be done to lift its performance. It was a period marked by Donald Horne s book The Lucky Country and Singaporean leader Lee Kuan Yew s warning that Australia was in danger of becoming the poor white trash of Asia. The second wave of reform, which began with the Hawke government and continued through the Keating and the early Howard governments, embraced globalisation and opened Australia to the world. That wave had petered out by the early 2000s, with the major macro-economic and many of the micro-economic reforms being accomplished. Although Australia in aggregate had become a lot more prosperous, many started to feel it hadn t worked for them personally. We need another debate about the third wave: what will be the key ideas that will drive policy? Moran says. Company director Kathryn Fagg believes the search for grand solutions is misplaced. There is a degree of frustration that issues aren t being addressed, but in the more challenging issues there are no simple answers, she says You get to a point where you have to ask what can we do to make a difference, whether that is in organisations, businesses or think tanks. There mightn t be a perfect answer but we know the direction, which way to go. It comes down to a matter of leadership. We think of them being in competition but, on average, the world s fairest societies are also its richest societies CHRIS RICHARDSON DELOITTE ACCESS ECONOMICS OUTLOOK CONFERENCE AUSTRALIA S ECONOMIC & SOCIAL FUTURE OCTOBER DELIVERING GROWTH WITH EQUITY Reserve Bank assistant governor Luci Ellis Melbourne Business School dean Ian Harper

31 The Australian, Australia Author: David Uren Section: General News Article type : News Item Classification : National Audience : 94,448 Page: 11 Printed Size: cm² Market: National Country: Australia ASR: AUD 40,494 Words: 2185 Item ID: Page 3 of 5 Productivity Commission deputy chair Karen Chester Opposition Treasury spokesman Chris Bowen POLITICIANS DELIVERING CHANGE Future Fund chairman Peter Costello Business Council of Australia chief executive Jennifer Westacott Melbourne University vice- chancellor s fellow Ross Garnaut The Australian s editor-at-large Paul Kelly KEYNOTE ADDRESS Prime Minister Scott Morrison THE ENERGY TRINITY: GREATER RELIABILITY, LOWER EMISSIONS, LOWER PRICES Minister for Energy Angus Taylor Melbourne University senior lecturer in economics Leslie Martin Powershop and Meridian Energy chief executive Ed McManus Energy Security Board chair Kerry Schott IS THERE MORE TO BUSINESS THAN BUSINESS? SEEK chief executive Andrew Bassat A2 Milk chief executive Jayne Hrdlicka AGL & Wesfarmers director Diane Smith-Gander INNOVATIVE POTENTIAL OF DATA Melbourne Institute director Abigail Payne Committee for Economic Development of Australia chief executive Melinda Cilento Melbourne University faculty of medicine dean Shitij Kapur EQUITY AND FAIRNESS Minister for Jobs and Industrial Relations Kelly O Dwyer Opposition assistant Treasury spokesman Andrew Leigh KEYNOTE ADDRESS Leader of the Opposition Bill Shorten HOW TO FIX WAGES Melbourne Institute s HILDA Survey director Mark Wooden Per Capita research fellow Tim Lyons ANU research school of economics professor Bob Gregory The Australian s contributing economics editor Judith Sloan SKILL DEVELOPMENT AND EDUCATION: DELIVERING FOR GROWTH NSW Department of Education secretary Mark Scott Business Council of Australia chief executive Jennifer Westacott RELIEVING CITIES GROWING PAINS Minister for Cities, Urban Infrastructure and Population Alan Tudge Opposition infrastructure spokesman Anthony Albanese Melbourne Lord Mayor Sally Capp THE POLITICAL ECONOMY OF TAX Melbourne law school professor Miranda Stewart Deloitte Access Economics partner Chris Richardson University of Melbourne professor John Freebairn ANU Tax and Transfer Policy Institute director Robert Breunig ECONOMIC OUTLOOK: THE VIEW FROM BUSINESS Incitec Pivot chief executive Jeanne Johns CSR chair John Gillam Energy Australia managing director Catherine Tanna THE LINK BETWEEN HEALTH AND ECONOMIC GROWTH Productivity Commission executive manager Ralph Lattimore National Mental Health Commission s Lucinda Brogden Melbourne Institute professor Anthony Scott CHINA-AUSTRALIA: BUMP IN THE ROAD Opposition foreign affairs spokeswoman Penny Wong MMG former chief executive Andrew Michelmore Lowy Institute senior fellow Richard McGregor EQUALITY: PERCEPTIONS VERSUS REALITY Productivity commissioner Jonathan Coppel University of Melbourne school of social and political sciences professor Shelley Mallett Melbourne Institute professor Roger Wilkins RAISING POLITICAL AMBITION Melbourne Institute director Abigail Payne The Australian s editor-atlarge Paul Kelly Chief Executive Women president Kathryn Fagg Centre for Policy Development chair Terry Moran Productivity Commission chairman Michael Brennan Productivity growth Annual % AUSTRALIA UNITED STATES JAPAN

32 The Australian, Australia Author: David Uren Section: General News Article type : News Item Classification : National Audience : 94,448 Page: 11 Printed Size: cm² Market: National Country: Australia ASR: AUD 40,494 Words: 2185 Item ID: Page 4 of UNITED KINGDOM GERMANY FRANCE ITALY SWEDEN Although Australia had become more prosperous, many started to feel it hadn t worked for them personally CENTRE FOR POLICY DEVELOPMENT CHAIR TERRY MORAN There is a degree of frustration that issues aren t being addressed COMPANY DIRECTOR KATHRYN FAGG Prosperity has been under challenge since Australia lost its tail wind DELOITTE ACCESS ECONOMICS PARTNER CHRIS RICHARDSON

33 The Australian, Australia Author: David Uren Section: General News Article type : News Item Classification : National Audience : 94,448 Page: 11 Printed Size: cm² Market: National Country: Australia ASR: AUD 40,494 Words: 2185 Item ID: Page 5 of 5 We accept the responsibility of careful and disciplined financial and budget management PRIME MINISTER SCOTT MORRISON We have been really good in a crisis but bad when things are going well BUSINESS COUNCIL OF AUSTRALIA CHIEF JENNIFER WESTACOTT Australia thrives when working-class and middleclass Australians get a fair go OPPOSITION LEADER BILL SHORTEN

34 The Australian, Australia Author: Simon Benson Section: General News Article type : News Item Classification : National Audience : 94,448 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 11,937 Words: 985 Item ID: Page 1 of 2 NEGATIVE GEARING PLAN THREAT TO MARKET ALP a risk to property rebound EXCLUSIVE SIMON BENSON NATIONAL POLITICAL EDITOR The number of loan-approved first-home buyers has hit its highest level since the end of the global financial crisis, with the federal government claiming the credit squeeze on investor lending has begun a turnaround in the property market in favour of owneroccupiers. The latest Reserve Bank of Australia data has revealed the proportion of first-home owner loans has risen to 18.5 per cent this year from a low of 12.9 per cent two years ago, and is now the highest since 2011, marking the start of a shift away from a decade of investor-driven growth. Josh Frydenberg told The Australian it had been the number of approvals totalling more than 104,000 for 2017, levels not seen since 2009 that signalled a turnaround. The Treasurer has seized on the numbers to claim that Labor s plans to severely restrict negative gearing could not come at a worse time and would not only risk hammering house prices further but could potentially jeopardise Australia s AAA credit rating. Yesterday, the opposition confirmed it had no intention of dropping its negative gearing policies, despite acknowledging a recent fall in house prices in Sydney and Melbourne due to tighter investor lending and the Reserve Bank s claims last week that the pull in property prices had been a welcome development. Labor finance spokesman Jim Chalmers denied that fear of the opposition s policy had led to a fall in house prices by up to 6 per cent in Sydney during the past 12 months, conceding it had been the crackdown by the regulator that had taken the heat out of the market. The housing market is softening in some of the major markets, but we don t make this policy for one market or another, or one set of market conditions or another, he said. You make housing policy as a federal government over the medium to long term. One of the reasons why we are not abolishing negative gearing entirely, we are grandfathering it so that if people are doing it now they can continue to do so, and one of the reasons we are still making it available for new properties is because we wanted to make sure there wasn t a shock to the system. The most recent RBA and Australian Bureau of Statistics data shows the growth in housing loans to investors had slowed from 10.8 per cent in 2015 to 1.5 per cent this year. Credit growth to owneroccupiers, however, remained steady, at about 7.5 per cent. Ratings agency Standard & Poor s two weeks ago acknowledged an orderly unwind in the housing market, having warned last year that the then unsustainable prices were a risk to Australia s AAA rating. It warned ratings could come under pressure if house prices fall sharply and increase risks to fiscal Continued on Page 2 MORE REPORTS P2 JOSH FRYDENBERG P12

35 The Australian, Australia Author: Simon Benson Section: General News Article type : News Item Classification : National Audience : 94,448 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 11,937 Words: 985 Item ID: Page 2 of 2 First-home owners Share of new loan commitments (%) Source: ABS ALP s policy would threaten property rebound Continued from Page 1 accounts, real economic growth and financial stability. The market shift follows measures introduced under then treasurer Scott Morrison and his assistant minister on housing, Michael Sukkar, which included tightening of negative gearing claims for travel costs, which were being abused by investors. Stricter rules were also imposed on investors, including a 50 per cent cap on foreign investors buying into a single development, as well as a vacancy charge for empty investment properties, administered under the Foreign Investment Review Board. There was also the First Home Super Saver Scheme, allowing access to voluntary super contri- butions to help buy a first home, and tax cuts for first-home buyers. The macro-prudential crackdown by regulators including a 30 per cent cap on investor loans and a higher cash rate for investor loans have helped to even the playing field for owner-occupiers competing with investors. Mr Frydenberg, writing in The Australian today, says it has been government policy that has led to a marked shift away from investors driving growth in the property market to one where owneroccupiers are playing the predominant role. He warned that Labor s proposed negative gearing changes would come at an even worse time than when they were first proposed, with the heat in the market having already come off. Labor s policy couldn t come at a worse time and be more illjudged, he said. It ignores the real risk the policy poses to the stability of the housing market, to the value of the No 1 family asset and the adverse impact it could have on Australia s credit rating. All the benefits now flowing from this managed-transition housing market are at risk from the Labor Party s reckless attack on negative gearing and the capital gains tax discount. In its determination to drive property prices further down, Labor is taking to the next election a policy to limit negative gearing to only newly constructed housing and to cut the capital gains tax discount on assets that are held for longer than 12 months from 50 to 25 per cent. This will not just punish the 1.3 million people with negatively geared properties, but everyone with equity in their home, as when they eventually sell their property they will do so in a market with fewer potential buyers. Last week, RBA governor Phil Lowe said it was welcome news that the property adjustment had come at a time of strong global growth, low interest rates and a favourable labour market. But Mr Chalmers said there needed to be a long-term policy. We need to make policy over the medium and longer term, in the interests of levelling the playing field so that when people who want to get into their first home go to an auction, they are not competing unfairly with investors who might have six, seven, eight properties already, he said.

36 The Australian, Australia Author: Damon Kitney Section: Business News Article type : News Item Classification : National Audience : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 22,279 Words: 1378 Item ID: Page 1 of 4 Amazon coming to a car yard near you: Cole EXCLUSIVE DAMON KITNEY TECHNOLOGY He calls himself a story teller of the digital world. His clients think he can see into the future. Jeffrey Cole has spent more than three decades advising governments and many of the world s largest and most successful companies on their digital strategies. In Australia those companies have included Telstra, Wesfarmers, Westpac and the other big banks. These days he is a member of the investment committee of the listed Evans & Partners Global Disruption Fund, which now has over $400 million under management and ambitions to grow that to $1 billion in the short to medium term. The fund has just completed an $8m capital raising to provide liquidity for new unit holders. Ask Cole the next industry in the world to be Amazoned that is, disrupted and transformed by Jeff Bezos s global tech colossus and his answer is instant. I think eventually he will sell every new automobile in North America. A lot of manufacturers feel they are saddled to their dealers. A lot of them now want to get rid of the dealer relationship. Tesla, for instance, does not have dealerships. I think you will see Amazon go to manufacturers and say Get out of the dealership business, and turn the dealerships into service centres, the fast-talking American tells The Australian during a visit to Australia from his US base. Amazon is going to facilitate that if you want to buy a car, you will go online, see the specs, test drive it virtually. Then if you want to really drive it, you will book an appointment online and it will come to you. He believes the entire car industry will become completely driverless over the next 25 years. Cole sees the other imminent targets for Bezos as being the movie business, healthcare, the market for sports rights and, of course, financial services. One of the lessons of disruption which applies to banks, is offline legacy means nothing online. Banks are not going to die. But you are going to see fintech Continued on Page 20

37 The Australian, Australia Author: Damon Kitney Section: Business News Article type : News Item Classification : National Audience : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 22,279 Words: 1378 Item ID: Page 2 of 4 STUART McEVOY Digital story teller Jeff Cole, left, with David Evans. Eventually (Jeff Bezos) will sell every new automobile in North America Amazon coming to a car yard near you Continued from Page 17 companies pick off some things like foreign currency transactions. I think you will see very efficient service companies evolving that will pick off many of [the banks ] operations, he says. The Evans & Partners disruption fund is overseen by Sydney global fund manager Walsh & Co, part of the listed Evans Dixon Group. The disruption fund s starstudded investment committee includes former Wesfarmers chief executive Richard Goyder, former Telstra boss David Thodey, Square Peg co-founder Paul Bassat and Sally Herman, who sits on the boards of Suncorp, Premier Investments and Breville. Following an interview with Cole at Evans Dixon s Melbourne head office, The Australian sat in on the monthly investment committee meeting of the Global Disruption Fund, giving the public a rare insight into the opinions of its star-studded members, which have helped the fund s unit price grow 35.8 per cent since its listing in July last year. The fund s NTA is up nearly 40 per cent over the same period. Its 10 largest investments currently are Amazon, Microsoft, Google parent Alphabet, streaming giant Netflix, US gaming firm Activision Blizzard, US software giant salesforce.com, electronic payments group Wirecard and Chinese stocks Alibaba, Baidu and Tencent. The fund s portfolio consultant, former Goldman Sachs telecoms analyst Raymond Tong, has recently trimmed the fund s stake in Amazon because it had grown to represent 8.1 per cent of the portfolio, breaching a convention that no single stock holding of the fund should be more than 8 per cent. Asked at the meeting what he believed was the next industry to be Amazoned, committee chairman David Evans says that transactional banking has to be ripe for the picking. I think Amazon are also absolutely busting into the home. The data they have around personal spending and personal tastes in the home is so significant now, he says. Sally Herman agreed that if the Bezos philosophy was more for less, financial services had to be in his sights. The other industry going

38 The Australian, Australia Author: Damon Kitney Section: Business News Article type : News Item Classification : National Audience : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 22,279 Words: 1378 Item ID: Page 3 of 4 through disruption is insurance, she added. How insurance will be sold is going to change pretty dramatically. David Thodey agreed with Jeff Cole that Bezos saw a big opportunity in the healthcare sector, while Paul Bassat noted that the logistics sector could also be targeted by Amazon. What they are doing logistically is very interesting what they have done in the cloud. There is a significant chance we see logistics under enormous threat, he says, before adding: The other two big bets of [Amazon] are cloud and AI. They are a long way ahead of Google and Google is ahead of anyone else. The Evans fund has moved away from the strong weighting it had eight months ago to the socalled FANGs: Facebook, Amazon, Netflix and Google. The move was timely given US Treasury yields have surged to multi-year highs over the past week on the of the latest round of strong economic data and increasing concerns about inflation pressures in the US economy dragging down the broader US market, led by the FANG stocks. Outside the FANGs, the Evans & Partners investment committee believes another tech giant, Apple, remains a high-quality company but that there are more attractive growth options in the market. Tim Cook, I think, has a bigger burden then any CEO in history, Jeff Cole told the investment committee meeting, noting that Apple customers still wanted Cook to make products that changed the world. We think Apple is losing a bit of its innovative edge. It is becoming incremental. Is that eventually going to turn off customers? he asked. Bassat says while there was nothing on the horizon to show Apple would not stop making the best phones in the world soon, this would be a risk in the future. The point at which they stop making the best phones sees a much more significant decline in their business than what you get from the other players, he says. But Thodey was less bearish. The one difference I am seeing is that the switching cost out of the IOS environment is actually harder than you think. Even with the Samsung phones that are very good, they don t [match the IOS system], he says, adding that the Google-Samsung relationship is not great. Is there something in the Apple story we may lose? I think it s worth another look at, I just don t see who is going to push them off the perch at the moment, he says. Richard Goyder noted that Apple is the most shorted stock in the US at the moment, so clearly the market is starting to bet against them. Of the FANGs, Paul Bassat was most bearish on Facebook. The great bulk of their revenue comes from Facebook, it is hard to say if WhatsApp [Facebook s message service] can be monetised. Messages are a much harder product to monetise, he says. There is really clear signs of some decay for facebook.com. I think Facebook we are right to be a little bit worried about. Raymond Tong put to the committee that the fund should increase its interest in American technology company Nvidia, the largest supplier of processors and software for gaming, data centres and autonomous vehicles. In AI they are dominant, he says. The committee members agreed the fund should buy more of the stock. Nvidia has real momentum and the competitors there are not that strong, Thodey says. The fund has also been starting to look more and more at the medical technology space. It recently invited into its med-tech discussions University of Melbourne Surgery Department head Professor Andrew Kaye, who was introduced to David Evans by businessman Lloyd Williams. It also recently hired Ted Alexander, who used to run Magellan s healthcare fund. He is head of investments of our asset management business and brought a team with him, Evans says. We have had a big focus on healthcare have recently put a couple of med-tech companies into the fund. At the July committee meeting Alexander discussed a number of themes including robotic surgery, genetic sequencing and immunotherapy.

39 The Australian, Australia Author: Damon Kitney Section: Business News Article type : News Item Classification : National Audience : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 22,279 Words: 1378 Item ID: Page 4 of 4 Amazon could be set to transform another industry

40 The Australian, Australia Author: Michael Roddan Section: Business News Article type : News Item Classification : National Audience : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 7,049 Words: 661 Item ID: Page 1 of 2 Industry funds could merge EXCLUSIVE MICHAEL RODDAN SUPERANNUATION A merger between the $5 billion Maritime Super and the $11bn Mine Super may be on the cards, after advisers were recently appointed to explore a tie-up between the industry funds. A roll-up between the funds would mirror the recent super union merger between the Construction, Forestry, Mining and Energy Union and the Maritime Union of Australia, which combined earlier this year into the amalgamated CFMEU. Mine Super has a board sponsorship arrangement with the CFMEU, which appoints member directors, and employer director sponsorships with the NSW Minerals Council and the Queensland Resources Council. Maritime Super, the country s oldest union-and-employer-ed industry super fund, had board directors nominated by the MUA and employer groups in the seafaring and stevedoring industry. Although discussions between the two funds are at very early stages, a merger between the two groups would make the consolidated entity one of the 20 largest funds in the market. Mine Super chief executive Harry Mitchell and Maritime Super chief executive Peter Robertson both declined to confirm any merger discussions between the two groups. The $700bn industry fund sector is awash with potential merger discussions. The Australian Prudential Regulation Authority has been jawboning small and sub-scale funds to find a merger partner or face being forced to roll up. It recently created a hit-list of 28 funds it targeted to improve member outcomes or merge. While many complied, almost a third of the rogue funds ignored the regulator s wishes. APRA has sent out more than half a dozen surveys to funds in the last few months as part of its members outcomes survey as it attempts to rank which funds are acting in members best interests. The federal government is also pushing ahead with new laws that will slap a 3 per cent fee limit on individual accounts and compulsorily acquire lost and forgotten accounts and reunite the assets with savers through the Australian Taxation Office. Both measures are expected to increase pressure on smaller funds to find a merger partner. Meanwhile, both APRA and Continued on Page 18

41 The Australian, Australia Author: Michael Roddan Section: Business News Article type : News Item Classification : National Audience : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 7,049 Words: 661 Item ID: Page 2 of 2 Maritime, mine industry super funds could merge Continued from Page 17 the Australian Securities & Investments Commission are expected to be take a tougher enforcement stance with funds that fail to act in the best interests of members. The Productivity Commission s review of the super system found a long tail of underperformance by smaller industry funds that refused to merge, despite being legally required to act in members best interests. The royal commission probed a failed merger between Energy Super and Equip Super, but found no misconduct. Maritime Super has been criticised in the past for its underperformance. Over a 10-year period, the fund has returned savers one of the lowest rates in the market. Maritime has said this was due to its more conservative investment strategy due to the average age of its members being close to 50 years old. The Productivity Commission has recommended that ASIC investigate failed mergers between funds. The commission also wants tie-ups that reach the memorandum of understanding stage to be disclosed to APRA. Anecdotally, a number of mergers between funds have been scuppered because board directors and executives cannot agree on who will lose their jobs. While many funds in the sector are exploring potential mergers, some small funds are standing firm. First Super chief executive Bill Watson recently launched a new campaign lauding the outperformance of his $3bn fund. The big funds, some regulators and some media commentators would like Australians to believe that only funds over a certain size can possibly compete in the market, Mr Watson said. It comes as the industry fund sector attempts to roll up about half a million forgotten accounts with low balances and reunite the savings with members, pre-empting a government plan to claw lost accounts through the ATO. The plan will save members of 18 industry funds that had signed up to the plan a combined $100 million in unnecessary fees, working out to an average of about $260 per member.

42 Age, Melbourne Author: Clancy Yeates Section: Business News Article type : News Item Classification : Capital City Daily Audience : 83,229 Page: 22 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 11,077 Words: 389 Item ID: Page 1 of 1 Big four bank chiefs to face parliamentary grilling ROYAL COMMISSION Clancy Yeates Bank chief executives face a highly-anticipated public grilling this week that is likely to scrutinise the causes of banking s cultural problems, and what is being done to ensure accountability for the scandals being uncovered by the royal commission. CEOs from the Commonwealth Bank, Westpac and ANZ Bank will appear before the government s ongoing parliamentary banking inquiry, the first detailed public NATAGE A022 questioning of the bankers since the royal commission s interim report was published 10 days ago. The hearings, to be followed by a grilling of NAB next week, are likely to explore some of the key questions raised by Commissioner Kenneth Hayne, including the potential for reform of banker pay, financial advice, and mortgage lending. While banks have given top-level responses to the commission s interim report, the executives are expected to provide more detailed commentary this week, before the CEOs have their turn in the commission s witness box in late November. Committee chair, Liberal MP Tim Wilson, said the hearings would likely probe the banks about what they were doing to deal with the problems identified by Commissioner Hayne, and the potential impact on bank customers. One of the key issues [raised by the commission] is around the failure to enforce existing rules, which raises questions around culture and process and how they are going to respond, Mr Wilson said. The committee s deputy chair, Labor MP Matt Thistlethwaite, said he would question the banks over how a sales-driven culture that emphasised profits was allowed to pervade the industry for years until now. Committee member and Greens MP Adam Bandt indicated he would be asking why banks should not be banned from also owning wealth management businesses, as his party has proposed. CBA chief Matt Comyn will be the first bank executive to face the questioning on Thursday morning, and committee insiders say he will appear with David Cohen, the current chief risk officer who will move to deputy CEO early next month. Westpac chief executive Brian Hartzer is scheduled for Thursday afternoon, alongside finance chief Peter King. ANZ chief Shayne Elliott and deputy CEO Alexis George will front the committee on Friday. NAB chief Andrew Thorburn is scheduled to appear before the committee on October 19 with NAB institutional banking head David Gall. CBA s Matt Comyn will be the first bank executive to face questioning. Photo: AAP

43 Age, Melbourne Author: Ross Gittins Section: Business News Article type : News Item Classification : Capital City Daily Audience : 83,229 Page: 23 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 18,853 Words: 784 Item ID: Page 1 of 2 Note to banks: the long run is now, and the bills are arriving COMMENT Ross Gittins It s easy to take Keynes dictum that in the long run we re all dead out of context. When you do, you can come badly unstuck as the banks and insurance companies are discovering. In case you ve ever wondered, economists see the short term as being for a year or two, the medium term as about the next 10 years, and the long term as everything further away than that. See the point? If the long run is only 10, 15, 20 years from now, you won t be dead. Nor will most of the people around you at work. The economy will still be alive and kicking in 20 years time and, in all probability, so will your company. In which case, spending too many years making short-sighted decisions could leave you looking pretty bad if you haven t had the foresight to skip town. For many years people have bemoaned short-termism the tendency to favour quick results over longer-term consequences. To go for the flashy at the expense of patient investment in future performance. To do things where the benefits are upfront, and the costs much later, even when the initial appearance of success actually worsens the likely outcomes down the track. Short-termism seems particularly to have infected big business. Listed companies are under considerable pressure to ensure every half-year profit is bigger than the last. This pressure comes from the sharemarket, from analysts, and more particularly from institutional investors super funds, banks and insurance companies that manage the savings of ordinary people, invested mainly in company shares. Although the instos don t actually own many of the shares they control, they represent the shares ultimate owners (you and me) by continuously pressuring companies to get higher and higher profits which will lead to everhigher share prices. It s long been alleged that the short-termism the sharemarket forces on big business to which companies have responded by trying to align executive pay with profits and the share price have led firms to underinvest in projects with high risks or long pay periods. But the banking royal commission is a stark reminder to a lot of companies, the sharemarket and shareholders that after years of short-sighted, corner-cutting, even illegal behaviour, the long run has arrived, we re all still alive and there are bills to be paid. Those bills will take many forms. It s likely some of the borderline customer-harming behaviour will become illegal, and so won t be available to keep profits heading onward and upward every half-year. Banks and insurance companies found to have mistreated their customers in outright illegal ways will face big bills for restitution. But probably the biggest bill comes under the heading of reputational damage. As Australian Competition and Consumer Commission boss Rod Sims reminded us in a speech, most companies spend much time and money promoting and protecting their brand. A highly-regarded brand is money in the bank to the firm that owns it as you see just by comparing the prices of branded and unbranded goods in a supermarket. Brands engender trust that the product is of consistently good quality and will do what it promises to do and often social status. But, as Sims says mildly, bad behaviour by a company can undermine its brand reputation. A key value of the royal commission has been to expose the poor behaviour of financial institutions to public scrutiny. The evidence about the conduct of AMP was particularly damning. The resulting damage to AMP s brand reputation has been substantial. Sure has. And that damage to AMP s reputation and likely future profitability has seen its share price fall by 35 per cent since its first day in the witness box in April. Sims says one way to discourage misbehaviour by companies is to identify and shine a light on bad behaviour. The greater the likelihood that bad behaviour will be exposed and made public, the more companies will do to guard against such behaviours, he says. Get it? The regulators are wising up, and in future will do more to name and shame to diminish brand reputation offenders, so as to discourage short-sighted, take-nothought-for-the-morrow behaviour. To move firms from the short run to the long run. So far, the big four banks share prices have fallen only a per cent or two since the release of the commission s interim report. But

44 Age, Melbourne Author: Ross Gittins Section: Business News Article type : News Item Classification : Capital City Daily Audience : 83,229 Page: 23 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 18,853 Words: 784 Item ID: Page 2 of 2 my guess is they have a lot further to fall once we see the full price they ll be paying for past short-run profitmaximising behaviour, and how much less scope there ll be for such behaviour going forward. Ross Gittins is the Herald s economics editor. NATAGE A023 Short-termism seems to have infected big business.

45 Sydney Morning Herald, Sydney Author: Clancy Yeates Section: Business News Article type : News Item Classification : Capital City Daily Audience : 88,634 Page: 24 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 14,407 Words: 387 Item ID: Page 1 of 1 Big four bank chiefs to face parliamentary grilling ROYAL COMMISSION Clancy Yeates Bank chief executives face a highly-anticipated public grilling this week that is likely to scrutinise the causes of banking s cultural problems, and what is being done to ensure accountability for the scandals being uncovered by the royal commission. CEOs from the Commonwealth Bank, Westpac and ANZ Bank will appear before the government s ongoing parliamentary banking inquiry, the first detailed public 1HERSA1 A024 questioning of the bankers since the royal commission s interim report was published 10 days ago. The hearings, to be followed by a grilling of NAB next week, are likely to explore some of the key questions raised by Commissioner Kenneth Hayne, including the potential for reform of banker pay, financial advice, and mortgage lending. While banks have given top-level responses to the commission s interim report, the executives are expected to provide more detailed commentary this week, before the CEOs have their turn in the commission s witness box in late November. Committee chair, Liberal MP Tim Wilson, said the hearings would likely probe the banks about what they were doing to deal with the problems identified by Commissioner Hayne, and the potential impact on bank customers. One of the key issues [raised by the commission] is around the failure to enforce existing rules, which raises questions around culture and process and how they are going to respond, Mr Wilson said. The committee s deputy chair, Labor MP Matt Thistlethwaite, said he would question the banks over how a sales-driven culture that emphasised profits was allowed to pervade the industry for years until now. Committee member and Greens MP Adam Bandt indicated he would be asking why banks should not be banned from also owning wealth management businesses, as his party has proposed. CBA chief Matt Comyn will be the first bank executive to face the questioning on Thursday morning, and committee insiders say he will appear with David Cohen, the current chief risk officer who will move to deputy CEO early next month. Westpac chief executive Brian Hartzer is scheduled for Thursday afternoon, alongside finance chief Peter King. ANZ chief Shayne Elliott and deputy CEO Alexis George will front the committee on Friday. NAB chief Andrew Thorburn is scheduled to appear before the committee on October 19 with NAB institutional banking head David Gall. CBA s Matt Comyn will be the first bank executive to face questioning. Photo: AAP

46 Sydney Morning Herald, Sydney Author: Ross Gittins Section: Business News Article type : News Item Classification : Capital City Daily Audience : 88,634 Page: 25 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 24,884 Words: 782 Item ID: Page 1 of 2 Note to banks: the long run is now, and the bills are arriving COMMENT Ross Gittins It s easy to take Keynes dictum that in the long run we re all dead out of context. When you do, you can come badly unstuck as the banks and insurance companies are discovering. In case you ve ever wondered, economists see the short term as being for a year or two, the medium term as about the next 10 years, and the long term as everything further away than that. See the point? If the long run is only 10, 15, 20 years from now, you won t be dead. Nor will most of the people around you at work. The economy will still be alive and kicking in 20 years time and, in all probability, so will your company. In which case, spending too many years making short-sighted decisions could leave you looking pretty bad if you haven t had the foresight to skip town. For many years people have bemoaned short-termism the tendency to favour quick results over longer-term consequences. To go for the flashy at the expense of patient investment in future performance. To do things where the benefits are upfront, and the costs much later, even when the initial appearance of success actually worsens the likely outcomes down the track. Short-termism seems particularly to have infected big business. Listed companies are under considerable pressure to ensure every half-year profit is bigger than the last. This pressure comes from the sharemarket, from analysts, and more particularly from institutional investors super funds, banks and insurance companies that manage the savings of ordinary people, invested mainly in company shares. Although the instos don t actually own many of the shares they control, they represent the shares ultimate owners (you and me) by continuously pressuring companies to get higher and higher profits which will lead to everhigher share prices. It s long been alleged that the short-termism the sharemarket forces on big business to which companies have responded by trying to align executive pay with profits and the share price have led firms to underinvest in projects with high risks or long pay periods. But the banking royal commission is a stark reminder to a lot of companies, the sharemarket and shareholders that after years of short-sighted, corner-cutting, even illegal behaviour, the long run has arrived, we re all still alive and there are bills to be paid. Those bills will take many forms. It s likely some of the borderline customer-harming behaviour will become illegal, and so won t be available to keep profits heading onward and upward every half-year. Banks and insurance companies found to have mistreated their customers in outright illegal ways will face big bills for restitution. But probably the biggest bill comes under the heading of reputational damage. As Australian Competition and Consumer Commission boss Rod Sims reminded us in a speech, most companies spend much time and money promoting and protecting their brand. A highly-regarded brand is money in the bank to the firm that owns it as you see just by comparing the prices of branded and unbranded goods in a supermarket. Brands engender trust that the product is of consistently good quality and will do what it promises to do and often social status. But, as Sims says mildly, bad behaviour by a company can undermine its brand reputation. A key value of the royal commission has been to expose the poor behaviour of financial institutions to public scrutiny. The evidence about the conduct of AMP was particularly damning. The resulting damage to AMP s brand reputation has been substantial. Sure has. And that damage to AMP s reputation and likely future profitability has seen its share price fall by 35 per cent since its first day in the witness box in April. Sims says one way to discourage misbehaviour by companies is to identify and shine a light on bad behaviour. The greater the likelihood that bad behaviour will be exposed and made public, the more companies will do to guard against such behaviours, he says. Get it? The regulators are wising up, and in future will do more to name and shame to diminish brand reputation offenders, so as to discourage short-sighted, take-nothought-for-the-morrow behaviour. To move firms from the short run to the long run. So far, the big four banks share prices have fallen only a per cent or two since the release of the commission s interim report. But

47 Sydney Morning Herald, Sydney Author: Ross Gittins Section: Business News Article type : News Item Classification : Capital City Daily Audience : 88,634 Page: 25 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 24,884 Words: 782 Item ID: Page 2 of 2 my guess is they have a lot further to fall once we see the full price they ll be paying for past short-run profitmaximising behaviour, and how much less scope there ll be for such behaviour going forward. Ross Gittins is the Herald s economics editor. 1HERSA1 A025 Short-termism seems to have infected big business.

48 Adelaide Advertiser, Adelaide Author: Tim McIntyre Section: Business News Article type : News Item Classification : Capital City Daily Audience : 112,097 Page: 39 Printed Size: cm² Market: SA Country: Australia ASR: AUD 7,572 Words: 513 Item ID: Page 1 of 2 OPTIONS: Anthony and Pritema Bivon, seen below on their wedding day, are among the borrowers turning to non-bank financial institutions to fund projects such as home renovations. Pictures: Getty Images and MMG Photo + Cinema From renovations and weddings to cars and holidays, new loan options are emerging, writes TIM McINTYRE BORROWERS are turning away from traditional banks when applying for personal loans and, instead, are flocking to digital, mobile-centric platforms and peer-to-peer lenders. A CommSec Economic Insights report shows loans by non-bank financial institutions were up 10.3 per cent for the year to August. According to CommSec chief economist Craig James, this was an indication that banks were engaging in more considered lending, and borrowers had other options. Banks are facing greater competition from non-banks, he said. At the same time, bank deposits are only lifting at a 2.5 per cent annual rate, putting greater reliance on external funding. It is clearly a competitive and challenging environment for financial institutions. Peer-to-peer lender SocietyOne has become the first marketplace lender of its kind in Australia to hit $500 million in loans to 20,000 borrowers and is on track to reach $1 billion in Society One CEO Mark Jones said the influx was largely about convenience for the next generation of borrowers. Millennial consumers have been increasingly demanding a fairer, faster, easier and more personalised mobile-centric solution from almost every brand they transact with, he said. Think Uber, Airbnb and the rest of the sharing economy. Financial services really are no different. Mr Jones said the recent spotlight on cases of bad banking behaviour had also encouraged borrowers to turn away from major lenders. The Royal Commission has undoubtedly helped remind customers to check they are getting a good deal from their bank, he said. It never hurts to get a second opinion. Ratesetter Australia is another peer-to-peer lender that has seen a spike in activity, with debt consolidation, car financing and home renovations among top wish list items for borrowers. Ratesetter CEO Daniel Foggo said the digital model was simpler, faster and often

49 Adelaide Advertiser, Adelaide Author: Tim McIntyre Section: Business News Article type : News Item Classification : Capital City Daily Audience : 112,097 Page: 39 Printed Size: cm² Market: SA Country: Australia ASR: AUD 7,572 Words: 513 Item ID: Page 2 of 2 more affordable. The take-up of digital alternative-lending options has been steadily rising over the past several years in Australia, as consumers become more confident in fintechs, he said. The growth in the number of alternative lenders is helping to drive this. Consumers now have more choice and know they can get better value, rather than being stuck with the same options they ve always used. When Anthony Bivon wanted to propose to his girlfriend, Pritema, and renovate his property for their future, he was disappointed with his options. After approaching my bank, which I was a loyal customer of for 15 years, plus several phone calls and frustrating s, I wasn t able to (get what I needed), he said. We couldn t seem to get any support or a decent interest rate with our bank. After searching online for alternatives, Mr Bivon chose a personal loan with Society One, which helped him achieve his goals. And I married the woman of my dreams in November 2017, he said.

50 Adelaide Advertiser, Adelaide Author: David Libby Section: Business News Article type : News Item Classification : Capital City Daily Audience : 112,097 Page: 37 Printed Size: cm² Market: SA Country: Australia ASR: AUD 11,826 Words: 874 Item ID: Page 1 of 3 David & Libby It s the bonus that many investors forget about but are still more than happy to accept Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. The power of dividends to supercharge the performance of listed shares (or cushion them in a downturn) is always underestimated as we tend to focus only on share-price movement. We often forget the dividend return. Since January 2004, the indexed share-price return of stocks in the All Ordinaries Index is around 90 per cent. But the total return (shareprice movement plus dividends) is 255 per cent that s the power of dividends. BIG RETURNS Studies in the US show that over a year, 80 per cent of a share s return comes from fluctuations in the share price. But over a five-year investment horizon, 80 per cent of a share s return comes from dividend yield and dividend growth. With many top 200 companies paying a dividend yield of 5-7 per cent, add the impact of franking credits and that return can jump to an impressive 9 per cent. Fully franked dividends are those from companies that have paid the full rate of company tax on their profits. As a result, the share of profits they pay shareholders as a dividend comes with a tax credit equal to the amount of company tax which has been paid to avoid double taxation. For example, the major banks pay the full 30 per cent company tax on profits so their shareholders receive a dividend with a 30c-in-thedollar tax credit. If a shareholder s marginal tax rate is less than 30 per cent, then that dividend is tax-free. The four major banks all have fully franked dividend yields over 6 per cent, and we bet they don t offer that sort of tax-advantaged income return through any of their banking products to customers. They are attractive returns and a powerful boost to investor returns, but it must be acknowledged that dividend yields are a reflection of not only the share of profits a company pays out but also its share price. As dividends are fixed as a dollar amount twice a year, the percentage dividend yield will go up if the dividend payout stays the same, while the share price goes down. So, an investor has to balance up the current attractive dividend yield with the prospects of the individual companies. Is a low share price because the company is in a prolonged slump and may not be able to maintain its dividend payout? Or is it a short-term downturn and the company is strong enough to bounce and maintain its dividend? If, in consultation with your broker or financial planner, it s the latter reason, then investing in strong blue-chip stocks with good yields can be attractive. Financial services giant AMP is an example of this. In April, its share price was as high as $5.47, while today, it s down around $3 because of the hammering it received from the banking royal commission. That plunge in share price has seen the AMP dividend yield rise to 6.25 per cent. A similar situation, although not to the same extent, has occurred across all the major banking shares as investors nervously wait for the impact of potential regulatory changes. Westpac has a 6.7 per cent dividend yield, NAB 7.2 per cent, CBA 6.5 per cent and ANZ 5.7 per cent all fully franked. Can the banks bounce with profits and dividends unharmed or will they be less profitable from any proposed changes and have to pare dividends? It s all a question of balance. A good dividend yield from a company producing strong cash flows can provide not only a welcome income stream for investors but ensure a buffer to a falling share price. LOOK AROUND The key is to be selective and look for a strong dividend yield, dividend growth and

51 Adelaide Advertiser, Adelaide Author: David Libby Section: Business News Article type : News Item Classification : Capital City Daily Audience : 112,097 Page: 37 Printed Size: cm² Market: SA Country: Australia ASR: AUD 11,826 Words: 874 Item ID: Page 2 of 3 good cash flow to ensure that dividend can be maintained. Brokers consistently have CSR, Telstra, AGL, Wesfarmers and WAM in their lists of stocks paying good dividends. Not only do strong dividends make sense to supercharge or cushion share price performance, they have become increasingly important for investors looking for income returns to pay bills. After last week s decision from the Reserve Bank to keep official interest rates on hold again, many analysts are predicting the next rise in rates will not be until the middle of next year, with some even saying it s more likely in Of course, banks have been increasing home-loan interest rates out of cycle but they generally haven t been lifting savings or term deposit rates. So, a 6-7 per cent fully franked dividend looks incredibly attractive in a low-interest rate, low-inflation environment. As we ve said, though, you need to get professional investment advice to build the right income investment portfolio for you. A mixture of dividends, income hybrids and bonds can offer good returns.

52 Adelaide Advertiser, Adelaide Author: David Libby Section: Business News Article type : News Item Classification : Capital City Daily Audience : 112,097 Page: 37 Printed Size: cm² Market: SA Country: Australia ASR: AUD 11,826 Words: 874 Item ID: Page 3 of 3

53 Courier Mail, Brisbane Author: Julieanne Alroe Section: General News Article type : News Item Classification : Capital City Daily Audience : 135,007 Page: 7 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 3,636 Words: 459 Item ID: Page 1 of 1 Southeast primed to be a major hub for future growth JULIEANNE ALROE BUILDING liveable cities should be the keystone of any plan to capitalise on southeast Queensland s future population growth. Like much of the rest of Australia, Queensland s population will grow significantly over coming decades, reaching 7.3 million by Most of this will be concentrated in the southeast, with an additional two million people expected to call the region home by Growth offers enormous opportunities for Queenslanders, but only if we engage in long-term planning to ensure Brisbane and employment hubs like the Sunshine Coast, Gold Coast, Ipswich and Toowoomba remain liveable as they grow. While liveability might sound like an abstract concept, it is simply about building cities with housing that is well-connected to jobs and other opportunities and are safe, socially cohesive and environmentally sustainable. A forthcoming paper from Infrastructure Australia has identified the greatest challenges to the liveability of Australia s largest cities as access to diverse and affordable housing, public transport and green spaces. The paper will argue that the focus for governments must be creating liveable cities that maintain Queensland s enviable quality of life and give communities a share in future prosperity. Investment in roads and public transport will be essential to support growth. This investment must be co-ordinated and integrated to address congestion and attract jobs and activity to transport hubs. Beyond the personal cost of neighbourhoods characterised by congestion and constraint, there is a real economic cost to failing to properly plan for growth. Without action, the 2015 Australian Infrastructure Audit found road congestion in Brisbane, the Gold and Sunshine coasts could cost the state s economy $9.2 billion in Infrastructure Australia s Infrastructure Priority List highlights Brisbane-to-Gold Coast transport corridor upgrades as a national priority. Also critical is Brisbane Metro, which is now identified as a High Priority Project on the Priority List. Brisbane has among the best bus networks in the country, however with growth there is a need for a step-change in capacity. Important but often overlooked when we think about infrastructure is the role green and public spaces play in a city s liveability. As cities grow and densify, more people will rely on shared green spaces like parks and blue spaces like beaches, lakes and waterways. At Infrastructure Australia, we acknowledge that governments, industry and the broader community have a crucial role to play informing decision-making as we prepare for growth. That s why it is important we can identify infrastructure gaps and the most pressing concerns in the short, medium and long-term. In consultation with our colleagues in state and local government, Infrastructure Australia has commenced the 2019 Australian Infrastructure Audit and Infrastructure Priority List. There are enormous opportunities for southeast Queensland as it grows, but only if we plan for it. Julieanne Alroe is chairwoman of Infrastructure Australia.

54 Courier Mail, Brisbane Author: David Libby Koch Section: Business News Article type : News Item Classification : Capital City Daily Audience : 135,007 Page: 36 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 13,611 Words: 874 Item ID: Page 1 of 3 David & Libby It s the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. The power of dividends to supercharge the performance of listed shares (or cushion them in a downturn) is always underestimated as we tend to focus only on share-price movement. We often forget the dividend return. Since January 2004, the indexed share-price return of stocks in the All Ordinaries Index is around 90 per cent. But the total return (shareprice movement plus dividends) is 255 per cent that s the power of dividends. BIG RETURNS Studies in the US show that over a year, 80 per cent of a share s return comes from fluctuations in the share price. But over a five-year investment horizon, 80 per cent of a share s return comes from dividend yield and dividend growth. With many top 200 companies paying a dividend yield of 5-7 per cent, add the impact of franking credits and that return can jump to an impressive 9 per cent. Fully franked dividends are those from companies that have paid the full rate of company tax on their profits. As a result, the share of profits they pay shareholders as a dividend comes with a tax credit equal to the amount of company tax which has been paid to avoid double taxation. For example, the major banks pay the full 30 per cent company tax on profits so their shareholders receive a dividend with a 30cin-the-dollar tax credit. If a shareholder s marginal tax rate is less than 30 per cent, then that dividend is tax-free. The four major banks all have fully franked dividend yields over 6 per cent, and we bet they don t offer that sort of taxadvantaged income return through any of their banking products to customers. They are attractive returns and a powerful boost to investor returns, but it must be acknowledged that dividend yields are a reflection of not only the share of profits a company pays out but also its share price. As dividends are fixed as a dollar amount twice a year, the percentage dividend yield will go up if the dividend payout stays the same, while the share price goes down. So, an investor has to balance up the current attractive dividend yield with the prospects of the individual companies. Is a low share price because the company is in a prolonged slump and may not be able to maintain its dividend payout? Or is it a short-term downturn and the company is strong enough to bounce and maintain its dividend? If, in consultation with your broker or financial planner, it s the latter reason, then investing in strong blue-chip stocks with good yields can be attractive. Financial services giant AMP is an example of this. In April, its share price was as high as $5.47, while today, it s down around $3 because of the hammering it received from the banking royal commission. That plunge in share price has seen the AMP dividend yield rise to 6.25 per cent. A similar situation, although not to the same extent, has occurred across all the major banking shares as investors nervously wait for the impact of potential regulatory changes. Westpac has a 6.7 per cent dividend yield, NAB 7.2 per cent, CBA 6.5 per cent and ANZ 5.7 per cent all fully franked. Can the banks bounce with profits and dividends unharmed or will they be less profitable from any proposed changes and have to pare dividends? It s all a question of balance. A good dividend yield from a company producing strong cash flows can provide not only a welcome income stream for investors but ensure a buffer to a falling share price. LOOK AROUND The key is to be selective and look for a strong dividend yield,

55 Courier Mail, Brisbane Author: David Libby Koch Section: Business News Article type : News Item Classification : Capital City Daily Audience : 135,007 Page: 36 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 13,611 Words: 874 Item ID: Page 2 of 3 dividend growth and good cash flow to ensure that dividend can be maintained. Brokers consistently have CSR, Telstra, AGL, Wesfarmers and WAM in their lists of stocks paying good dividends. Not only do strong dividends make sense to supercharge or cushion share price performance, they have become increasingly important for investors looking for income returns to pay bills. After last week s decision from the Reserve Bank to keep official interest rates on hold again, many analysts are predicting the next rise in rates will not be until the middle of next year, with some even saying it s more likely in Of course, banks have been increasing home-loan interest rates out of cycle but they generally haven t been lifting savings or term deposit rates. So, a 6-7 per cent fully franked dividend looks incredibly attractive in a lowinterest rate, low-inflation environment. As we ve said, though, you need to get professional investment advice to build the right income investment portfolio for you. A mixture of dividends, income hybrids and bonds can offer good returns.

56 Courier Mail, Brisbane Author: David Libby Koch Section: Business News Article type : News Item Classification : Capital City Daily Audience : 135,007 Page: 36 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 13,611 Words: 874 Item ID: Page 3 of 3

57 Courier Mail, Brisbane Author: Daryl Passmore Section: General News Article type : News Item Classification : Capital City Daily Audience : 135,007 Page: 1 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 64,122 Words: 1132 Item ID: Page 1 of 6 MONDAY, OCTOBER 8, 2018 // $1.70 INCL GST // COURIERMAIL.COM.AU EXCLUSIVE: The new plan that gets us from the coast to the CBD in just 45 minutes

58 Courier Mail, Brisbane Author: Daryl Passmore Section: General News Article type : News Item Classification : Capital City Daily Audience : 135,007 Page: 1 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 64,122 Words: 1132 Item ID: Page 2 of 6 DARYL PASSMORE ALL aboard. A bold proposal for a rapid rail network across southeast Queensland will be unveiled today. The vision, in research commissioned by the SEQ Council of Mayors, would enable passengers to travel from the Sunshine and Gold Coasts or Toowoomba to the centre of Brisbane in 45 minutes or less. It comes as The Courier-Mail begins our Future SEQ series, which explores in detail what it will take to create a smart, accessible, prosperous and socially and culturally vibrant region over the next quarter of a century. Over the next two weeks we will explore the opportunities and challenges ahead before developing an action plan to ensure an effective path forward for the region. In just 25 years, southeast Queensland will be home to a population the size of Sydney today a powerhouse region of 5.5 million residents. That will offer incredible opportunities but require careful planning and ambitious thinking to stay ahead of the challenges that such growth presents. As demographer Bernard Salt says, the southeast is quickly emerging as Australia s third global force but quite unlike any other region. Southeast Queensland is like the inside of a clock, with a big cog surrounded by several smaller cogs working together, he says. ALL ABOARD THE BRISBANE BULLET Bold $70b plan to cut southeast commutes

59 Courier Mail, Brisbane Author: Daryl Passmore Section: General News Article type : News Item Classification : Capital City Daily Audience : 135,007 Page: 1 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 64,122 Words: 1132 Item ID: Page 3 of 6 EXCLUSIVE DARYL PASSMORE A BOLD $70 billion proposal to fast-track southeast Queensland s development as a world-class super-metropolis of the future has been unveiled. A new report recommends a rapid rail network that would carry passengers to the centre of Brisbane from the Gold Coast, Sunshine Coast, Ipswich and even Toowoomba in under 45 minutes. Vast improvements to public transport and carefully targeted road projects would enable travellers to cross the region s cities within half an hour. The blueprint is outlined in a report by major infrastructure consultants SMEC, which was commissioned by the SEQ Council of Mayors to investigate transport as part of a feasibility study into a possible Olympic Games bid. It proposes a major shift in priority to public transport, reversing a trend towards private car use over the past 30 years. The centrepiece is a new faster rail network of frequent trains travelling at up to 250km/h. That is slower than the so-called bullet trains but average speeds of 150km/h would be almost three times the current 60km/h. It would halve the travel time from the Gold and Sunshine coasts to the capital, and slash up to two-thirds from the journey from Ipswich. Stage 1 of the SEQ People Mass Movement Study found population and employment growth would increase regional transport demand by 31 per cent by 2031, and by 53 per cent a decade later. Current planning and investment would not keep up, resulting in serious congestion, reduced quality of life, slower economic growth and a decline in global competitiveness. Intervention is required, both in terms of investment in the missing gaps of the transport networks, and in terms of shifting away from private car usage towards more sustainable mass transit passenger services, SMEC s transport planning team leader for Queensland Jason Van Paassen, said. A base scenario, including existing projects such as Cross River Rail and Brisbane Metro, would allow major centres to become half-hour smart cities. But a recommended advanced scenario envisages the state s southeast corner becoming an interconnected smart region over the next quarter of a century, securing its position as the country s most liveable and efficient metropolitan area. The rapid rail network would involve existing lines and new ones. They would include the North Coast Connect proposal, which has already received federal funding for a business case, for a new 40km track from Beerwah to Maroochydore. It proposes a new fast link to Southport from the current Gold Coast corridor. A fast initial connection to Ipswich would be extended to Toowoomba, although another recent $15 million business case grant to determine passenger rail requirements to the Darling Downs city could also see that brought forward. Trains carrying 500-plus passengers would be expected to run about every half-hour throughout the day, offering an express alternative to existing services and stopping at a limited number of stations in other areas including Moreton Bay, Logan and Lockyer Valley en route to the capital city. Those stations could include Caboolture and/or Petrie from the north, Beenleigh from the south and Gatton from the west. Modelling suggests it would take 45 minutes from Maroochydore to Brisbane 41 minutes faster than the current trip from Mooloolah. The 35-minute Southport- Brisbane journey would be less than half the current 73 minutes from Nerang. Trains from Ipswich could take 20 minutes, compared to the current 58 minutes. The initiative would be expected to take thousands of cars off highways but the proposal also factors in major new road infrastructure. More than 50 projects were identified in the study and a second stage, due to be completed by the end of the year, will determine the optimal priorities to achieve the strategic vision. A spending model for the transport plan, which includes the $944 million Metro and $5.4 billion Cross River Rail, puts the total cost between now and 2041 at $68 billion. That works out at $2.9 billion a year which is close to the average historic combined infrastructure spending in the region by State and Federal governments, of $2-$3 billion. But the report suggests that a bid by southeast Queensland to host the 2032 Olympic Games could be used to accelerate the investment, bringing forward delivery of the projects by more than a decade. That would mean spending just over $4 billion a year to 2031 but only $1.5 billion a year for the decade afterwards. It proposes a City Deal-type funding agreement between federal, state and local government and says more than a quarter of the money needed

60 Courier Mail, Brisbane Author: Daryl Passmore Section: General News Article type : News Item Classification : Capital City Daily Audience : 135,007 Page: 1 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 64,122 Words: 1132 Item ID: Page 4 of 6 could be sourced from the private sector through things like new tolled motorway links and developments around stations. Deputy Premier and Treasurer Jackie Trad said: I love fast rail. It s a terrific people mover but you need the population density to support it. We need the right investment at the right time. It s something that in a city region rather than a region of cities it will make much more sense. We are preserving rail corridors where we think it s important. International cities expert Professor Greg Clark said: southeast Queensland was going to need to continually invest in its connective infrastructure as it became one very successful globally oriented integrated region over the next couple of decades. There will need to be more rail infrastructure in particular, he said. THERE WILL NEED TO BE MORE RAIL INFRASTRUCTURE IN PARTICULAR Professor Greg Clark

61 Courier Mail, Brisbane Author: Daryl Passmore Section: General News Article type : News Item Classification : Capital City Daily Audience : 135,007 Page: 1 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 64,122 Words: 1132 Item ID: Page 5 of 6 TRAVEL TIMES Maroochydore to Brisbane 45MIN Southport to Brisbane 35MIN Toowoomba to Brisbane 45MIN Ipswich to Brisbane 20MIN Beenleigh to Brisbane 20MIN Petrie to Brisbane 20MIN Gatton to Brisbane 35MIN MAROOCHYDORE TO BRISBANE VIA BEERWAH, CABOOLTURE AND PETRIE Beerwah Maroochydore Caboolture Petrie Legend Possible faster rail stations ½ hour smart cities trips within SEQ s major urban centres will be less than ½ hour 45 minute smart region City-to-Brisbane trips will be less than 45 minutes Mass transit spine BRISBANE Toowoomba Gatton Ipswich Expected top speed 250KM/H Expected average speed 150KM/H Current average speed 60KMH TOOWOOMBA TO BRISBANE VIA GATTON AND IPSWICH Beenleigh SOUTHPORT TO BRISBANE VIA BEENLEIGH Southport FUTURESEQ PARTNERS: WELCOME NEWS: Commuter David Rudland travels from the Sunshine Coast to Bowen Hills for work. Picture: David Clark/AAP

62 Courier Mail, Brisbane Author: Daryl Passmore Section: General News Article type : News Item Classification : Capital City Daily Audience : 135,007 Page: 1 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 64,122 Words: 1132 Item ID: Page 6 of 6 64 NEWS MONDAY OCTOBER COURIERMAIL.COM.AU Home delivery MONDAY

63 Canberra Times, Canberra Author: Clancy Yeates Section: Business News Article type : News Item Classification : Capital City Daily Audience : 17,579 Page: 34 Printed Size: cm² Market: ACT Country: Australia ASR: AUD 5,071 Words: 387 Item ID: Page 1 of 1 Big four bank chiefs to face parliamentary grilling ROYAL COMMISSION Clancy Yeates Bank chief executives face a highly-anticipated public grilling this week that is likely to scrutinise the causes of banking s cultural problems, and what is being done to ensure accountability for the scandals being uncovered by the royal commission. CEOs from the Commonwealth Bank, Westpac and ANZ Bank will appear before the government s ongoing parliamentary banking inquiry, the first detailed public questioning of the bankers since the royal commission s interim report was published 10 days ago. The hearings, to be followed by a grilling of NAB next week, are likely to explore some of the key questions raised by Commissioner Kenneth Hayne, including the potential for reform of banker pay, financial advice, and mortgage lending. While banks have given top-level responses to the commission s interim report, the executives are expected to provide more detailed commentary this week, before the CEOs have their turn in the commission s witness box in late November. Committee chair, Liberal MP Tim Wilson, said the hearings would likely probe the banks about what they were doing to deal with the problems identified by Commissioner Hayne, and the potential impact on bank customers. One of the key issues [raised by the commission] is around the failure to enforce existing rules, which raises questions around culture and process and how they are going to respond, Mr Wilson said. The committee s deputy chair, Labor MP Matt Thistlethwaite, said he would question the banks over how a sales-driven culture that emphasised profits was allowed to pervade the industry for years until now. Committee member and Greens MP Adam Bandt indicated he would be asking why banks should not be banned from also owning wealth management businesses, as his party has proposed. CBA chief Matt Comyn will be the first bank executive to face the questioning on Thursday morning, and committee insiders say he will appear with David Cohen, the current chief risk officer who will move to deputy CEO early next month. Westpac chief executive Brian Hartzer is scheduled for Thursday afternoon, alongside finance chief Peter King. ANZ chief Shayne Elliott and deputy CEO Alexis George will front the committee on Friday. NAB chief Andrew Thorburn is scheduled to appear before the committee on October 19 with NAB institutional banking head David Gall. CBA s Matt Comyn will be the first bank executive to face questioning. Photo: AAP

64 Canberra Times, Canberra Author: Ross Gittins Section: Business News Article type : News Item Classification : Capital City Daily Audience : 17,579 Page: 35 Printed Size: cm² Market: ACT Country: Australia ASR: AUD 8,785 Words: 782 Item ID: Page 1 of 2 Note to banks: the long run is now, and the bills are arriving COMMENT Ross Gittins It s easy to take Keynes dictum that in the long run we re all dead out of context. When you do, you can come badly unstuck as the banks and insurance companies are discovering. In case you ve ever wondered, economists see the short term as being for a year or two, the medium term as about the next 10 years, and the long term as everything further away than that. See the point? If the long run is only 10, 15, 20 years from now, you won t be dead. Nor will most of the people around you at work. The economy will still be alive and kicking in 20 years time and, in all probability, so will your company. In which case, spending too many years making short-sighted decisions could leave you looking pretty bad if you haven t had the foresight to skip town. For many years people have bemoaned short-termism the tendency to favour quick results over longer-term consequences. To go for the flashy at the expense of patient investment in future performance. To do things where the benefits are upfront, and the costs much later, even when the initial appearance of success actually worsens the likely outcomes down the track. Short-termism seems particularly to have infected big business. Listed companies are under considerable pressure to ensure every half-year profit is bigger than the last. This pressure comes from the sharemarket, from analysts, and more particularly from institutional investors super funds, banks and insurance companies that manage the savings of ordinary people, invested mainly in company shares. Although the instos don t actually own many of the shares they control, they represent the shares ultimate owners (you and me) by continuously pressuring companies to get higher and higher profits which will lead to everhigher share prices. It s long been alleged that the short-termism the sharemarket forces on big business to which companies have responded by trying to align executive pay with profits and the share price have led firms to underinvest in projects with high risks or long pay periods. But the banking royal commission is a stark reminder to a lot of companies, the sharemarket and shareholders that after years of short-sighted, corner-cutting, even illegal behaviour, the long run has arrived, we re all still alive and there are bills to be paid. Those bills will take many forms. It s likely some of the borderline customer-harming behaviour will become illegal, and so won t be available to keep profits heading onward and upward every half-year. Banks and insurance companies found to have mistreated their customers in outright illegal ways will face big bills for restitution. But probably the biggest bill comes under the heading of reputational damage. As Australian Competition and Consumer Commission boss Rod Sims reminded us in a speech, most companies spend much time and money promoting and protecting their brand. A highly-regarded brand is money in the bank to the firm that owns it as you see just by comparing the prices of branded and unbranded goods in a supermarket. Brands engender trust that the product is of consistently good quality and will do what it promises to do and often social status. But, as Sims says mildly, bad behaviour by a company can undermine its brand reputation. A key value of the royal commission has been to expose the poor behaviour of financial institutions to public scrutiny. The evidence about the conduct of AMP was particularly damning. The resulting damage to AMP s brand reputation has been substantial. Sure has. And that damage to AMP s reputation and likely future profitability has seen its share price fall by 35 per cent since its first day in the witness box in April. Sims says one way to discourage misbehaviour by companies is to identify and shine a light on bad behaviour. The greater the likelihood that bad behaviour will be exposed and made public, the more companies will do to guard against such behaviours, he says. Get it? The regulators are wising up, and in future will do more to name and shame to diminish brand reputation offenders, so as to discourage short-sighted, take-nothought-for-the-morrow behaviour. To move firms from the short run to the long run. So far, the big four banks share prices have fallen only a per cent or two since the release of the commission s interim report. But

65 Canberra Times, Canberra Author: Ross Gittins Section: Business News Article type : News Item Classification : Capital City Daily Audience : 17,579 Page: 35 Printed Size: cm² Market: ACT Country: Australia ASR: AUD 8,785 Words: 782 Item ID: Page 2 of 2 my guess is they have a lot further to fall once we see the full price they ll be paying for past short-run profitmaximising behaviour, and how much less scope there ll be for such behaviour going forward. Ross Gittins is the Herald s economics editor. Short-termism seems to have infected big business.

66 Northern Territory News, Darwin Author: David Libby Koch Section: Business News Article type : News Item Classification : Capital City Daily Audience : 11,279 Page: 30 Printed Size: cm² Market: NT Country: Australia ASR: AUD 4,473 Words: 874 Item ID: Page 1 of 3 David & Libby Power of share dividends It s the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. The power of dividends to supercharge the performance of listed shares (or cushion them in a downturn) is always underestimated as we tend to focus only on share-price movement. We often forget the dividend return. Since January 2004, the indexed share-price return of stocks in the All Ordinaries Index is around 90 per cent. But the total return (shareprice movement plus dividends) is 255 per cent that s the power of dividends. BIG RETURNS Studies in the US show that over a year, 80 per cent of a share s return comes from fluctuations in the share price. But over a five-year investment horizon, 80 per cent of a share s return comes from dividend yield and dividend growth. With many top 200 companies paying a dividend yield of 5-7 per cent, add the impact of franking credits and that return can jump to an impressive 9 per cent. Fully franked dividends are those from companies that have paid the full rate of company tax on their profits. As a result, the share of profits they pay shareholders as a dividend comes with a tax credit equal to the amount of company tax which has been paid to avoid double taxation. For example, the major banks pay the full 30 per cent company tax on profits so their shareholders receive a dividend with a 30c-in-thedollar tax credit. If a shareholder s marginal tax rate is less than 30 per cent, then that dividend is tax-free. The four major banks all have fully franked dividend yields over 6 per cent, and we bet they don t offer that sort of tax-advantaged income return through any of their banking products to customers. They are attractive returns and a powerful boost to investor returns, but it must be acknowledged that dividend yields are a reflection of not only the share of profits a company pays out but also its share price. As dividends are fixed as a dollar amount twice a year, the percentage dividend yield will go up if the dividend payout stays the same, while the share price goes down. So, an investor has to balance up the current attractive dividend yield with the prospects of the individual companies. Is a low share price because the company is in a prolonged slump and may not be able to maintain its dividend payout? Or is it a short-term downturn and the company is strong enough to bounce and maintain its dividend? If, in consultation with your broker or financial planner, it s the latter reason, then investing in strong blue-chip stocks with good yields can be attractive. Financial services giant AMP is an example of this. In April, its share price was as high as $5.47, while today, it s down around $3 because of the hammering it received from the banking royal commission. That plunge in share price has seen the AMP dividend yield rise to 6.25 per cent. A similar situation, although not to the same

67 Northern Territory News, Darwin Author: David Libby Koch Section: Business News Article type : News Item Classification : Capital City Daily Audience : 11,279 Page: 30 Printed Size: cm² Market: NT Country: Australia ASR: AUD 4,473 Words: 874 Item ID: Page 2 of 3 extent, has occurred across all the major banking shares as investors nervously wait for the impact of potential regulatory changes. Westpac has a 6.7 per cent dividend yield, NAB 7.2 per cent, CBA 6.5 per cent and ANZ 5.7 per cent all fully franked. Can the banks bounce with profits and dividends unharmed or will they be less profitable from any proposed changes and have to pare dividends? It s all a question of balance. A good dividend yield from a company producing strong cash flows can provide not only a welcome income stream for investors but ensure a buffer to a falling share price. dividend looks incredibly attractive in a low-interest rate, low-inflation environment. As we ve said, though, you need to get professional investment advice to build the right income investment portfolio for you. A mixture of dividends, income hybrids and bonds can offer good returns. LOOK AROUND The key is to be selective and look for a strong dividend yield, dividend growth and good cash flow to ensure that dividend can be maintained. Brokers consistently have CSR, Telstra, AGL, Wesfarmers and WAM in their lists of stocks paying good dividends. Not only do strong dividends make sense to supercharge or cushion share price performance, they have become increasingly important for investors looking for income returns to pay bills. After last week s decision from the Reserve Bank to keep official interest rates on hold again, many analysts are predicting the next rise in rates will not be until the middle of next year, with some even saying it s more likely in Of course, banks have been increasing home-loan interest rates out of cycle but they generally haven t been lifting savings or term deposit rates. So, a 6-7 per cent fully franked

68 Northern Territory News, Darwin Author: David Libby Koch Section: Business News Article type : News Item Classification : Capital City Daily Audience : 11,279 Page: 30 Printed Size: cm² Market: NT Country: Australia ASR: AUD 4,473 Words: 874 Item ID: Page 3 of 3

69 West Australian, Perth Author: Jason Featherby Section: Your Money Article type : News Item Classification : Capital City Daily Audience : 147,676 Page: 1 Printed Size: cm² Market: WA Country: Australia ASR: AUD 5,750 Words: 620 Item ID: Page 1 of 1 Rise of piggybank raiders Survey shows parents are treating their kids as banks Jason Featherby New research by the Financial Planning Association has revealed more than a quarter of Australian parents lie to their kids about finances. Thirty-eight per cent of them admitted they ve dipped into their children s savings for urgent expenses and one in five took more than $2000. Emerging from the FPA research are four distinct types of money-parent personalities based on the frequency and comfort level parents have in discussing money with their kids. Engagers are from high-income families, find it easy to discuss money with their kids, use money as a reward and have kids who are more likely to make online or in-game purchases. Troopers feel awkward talking about money but do it anyway. Think money talk will make their kids anxious. Relaxers usually have low levels of financial stress but still don t talk about money. Let their kids explore money matters on their own. Avoiders rarely discuss money and, as a household, tend to earn less and give out less in pocket money. Their kids are unlikely to shop online or make in-game purchases. Is it surprising that so many parents admitted to being piggybank raiders? Unfortunately, not. It is a well-publicised fact that Australian households are the most indebted among English-speaking nations, mortgage stress is high and interest rates seem to be on the rise. Combine this with rising costs of living and stagnant wages and, as a nation, there isn t a lot of disposable income left to put aside for a rainy day. When push comes to shove it is much easier and quicker to raid the kids savings account to cover that emergency expense rather than have to go hat in hand to the bank to ask for an extension on the credit card or mortgage. And is it really an issue if we borrow from the kids every now and again? Probably not, if we actually pay it and even better if we discuss the loan with them before transacting. However, if the money isn t paid or worse can t be repaid then this may be a sign of a household living beyond its means and spending more than they earn. The best way to avoid having to borrow from the kids is to first ensure you have your own finances in order, prepare a budget, live within your means and build an emergency fund for yourself. Only then should you even think about setting aside money for your children. To safeguard against dipping into your kid s savings you should talk to your kids about money and their own funds so they are aware the funds exist and know where they are invested or saved. Try rewarding kids for work done such as washing the car or mowing the lawn. If you ve seen your kids work for their money not only will it teach them to connect work with money but it will also be that much harder to borrow it from them should an emergency expense arise. Don t over estimate the amount you can save for your kids. Setting a realistic savings target and having it taken directly from your account into theirs will ensure it happens automatically and help minimise the chances of you needing it. Finally, try and limit or remove access to their funds either by ensuring their account is not linked to yours, using a totally different bank to the one you use or, even better, invest it via a third party. Barriers such as these will help ensure any loans from the kids will be thought about before a decision is made. Jason Feartherby is head of Knight Financial Advisors

70 West Australian, Perth Author: Nick Bruining Section: Your Money Article type : News Item Classification : Capital City Daily Audience : 147,676 Page: 4 Printed Size: cm² Market: WA Country: Australia ASR: AUD 7,153 Words: 809 Item ID: Page 1 of 2 Is it time to drink to stay liquid? Nick Bruining Grab yourself a nice cup of hot cocoa, its time for a bed-time story from Uncle Nick. It s October 2019 and things are a little bit dicey. As expected, the election earlier in the year has seen a change of government and while they re blaming the other mob for the economic problems of the day, a steady run of out-of-cycle interest rate rises, brought about by rising US interest rates, has had a big impact on the Australian housing market. Loan defaults are on the rise, Eastern States house prices have tanked and thanks to a deepening malaise in consumer sentiment, Australia s 25-year run of economic growth has come to an end. We are in recession. Consecutive rate rises in the US have finally seen some major, heavily indebted US companies go belly up. Having piled on cheap debt since the GFC, complacency took hold, making many believe that rate rises would be slow and orderly. In fact, rate rise spikes took the markets by surprise. They always do. In the last three weeks. Some major household names have been all but wiped out as they revealed the impact of higher interest costs. A sense of panic has gripped the markets. Shares have dropped 15 per cent entering bear market territory. Australian super fund investors, now wise to what a bear market can do to their retirement nest eggs are heeding the advice of commentators and getting out of the more risky investments. The Whizzbang plus balanced super fund has seen a rush of people wanting to lock in their 10 years of record returns by switching to cash. There s more people wanting to get out of the fund than in. For the first time in years, money is pouring out. It turns out that the fund holds just 3 per cent of the money in cash, which quickly gets eaten up by the redemption requests. Next go the shares. They re at least liquid, but over the next two days the fund manager is desperately trying to work out the redemption unit price in a sea of red ink. Unsure of the values they should assign, they immediately declare that redemption requests will no longer be made in three days, but will be pushed out to 30. The problem you see, is that a big chunk of the fund is invested in stuff that can t be readily turned into cash. The valuation of these assets was last done three months ago and based on best estimates. No one ever imagined these things would have to be sold and as it turns out, they re not the only ones having to satisfy a massive influx of redemption requests. To ensure that those investors remaining in the fund aren t disadvantaged, the fund declares that redemptions will be frozen until further notice. It will never happen right? The trouble is it, it did. Around the time of the GFC, one of the more popular investments for retirees were mortgage funds. Supposedly safe investments, they pooled investor funds and on-lent the money to mums, dads and developers. Mortgages destined to run for 20 to 30 years would provide

71 West Australian, Perth Author: Nick Bruining Section: Your Money Article type : News Item Classification : Capital City Daily Audience : 147,676 Page: 4 Printed Size: cm² Market: WA Country: Australia ASR: AUD 7,153 Words: 809 Item ID: Page 2 of 2 the income to pay investors a return of about 8 per cent when banks were paying 6 per cent. They held about 10 per cent of funds in cash to meet the redemption requests which were usually matched by new investors coming in the door. With rumbles of interest rates rising higher, people thought it wise to get out, knowing that mortgage defaults could be on the rise. As the GFC took hold, everyone wanted out. The trouble is, you can t just ask mum and dad for the money. It s a 25-year mortgage. Investors didn t care, they wanted their money. Funds were frozen, some took years to pay out and investors ended up with a few cents in the dollar. So when you look at the returns on your super fund, when some fresh-faced investment youngster with a few snappy lines recommends something to you, remember the lessons from bald old farts like me. Valuations on unlisted assets are like property valuations on your house. You only really know it s value when you have a signed offer. Efficient markets are those markets where assets are readily traded (like the share market). It might be ugly in an efficient market, but at least you know what you ve got. In a tumbling market, liquidity is everything. If your fund can t readily convert to cash, then don t be surprised if you can t access your money. Fund trustees are obliged to ensure all members are treated equally, sometimes the only way to ensure that happens is to freeze. That s why yours truly keeps well clear of managed investments in unlisted assets. Call me stupid, pessimistic, whatever. But above all, you can call me liquid.

72 Australian Financial Review, Australia Author: Joanna Mather Section: General News Article type : News Item Classification : National Audience : 44,635 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 10,174 Words: 832 Item ID: Page 1 of 3 Super funds 'should be activists' Joanna Mather Veteran unionist and soon-to-besenator Tony Sheldon has called on industry superannuation fund directors to adopt an expansive and activist view of their duties so they can deal with social problems such as wages "theft" and corporate tax avoidance. Mr Sheldon, who stood down as national secretary of the Transport Workers Union in August and will soon depart the TWU Super board to enter federal Parliament advocates a "holistic interpretation" of trustee obligations under superannuation law. This includes refusing to invest in companies that work to aggressively lower wages bills because poor pay now means less retirement income later. He applies the same logic to tax avoidance, arguing less government revenue means members will be denied health and other services in future years. "As super funds, we have to be raising the question, should we engage with companies that are involved in wage theft? Should we be engaging companies that are tax rorters?" His comments will fuel long-held concerns in business that industry super funds will use their influence and financial heft to pursue the labour movement's political agenda. Mr Sheldon has already had some success. Last year he lobbied the Future Fund and several industry super funds Continued p2

73 Australian Financial Review, Australia Author: Joanna Mather Section: General News Article type : News Item Classification : National Audience : 44,635 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 10,174 Words: 832 Item ID: Page 2 of 3 From page 1 Super funds 'should be social activists' to withdraw from cargo handling company Aerocare, which was then owned by private equity firm Archer Capital and involved in a pitched battle with the TWU over wages and conditions. While TWU Super did not have a stake in Archer and few TWU members work for Aerocare, another industry fund, First Super, acted decisively. The $3 billion fund, which has strong links to the pulp, paper and timber industries, suspended its $100 million venture capital program and is allowing its Aerocare stake to "run off". "Fund members would not want to see their super invested in a company that undermines their rights and values and wages," Mr Sheldon said. "I think investing in Aerocare is actually a breach of those responsibilities [the sole purpose test] because of the consequences of what they're doing to people." The sole purpose test requires super funds to act only in the best interests of members and to provide benefits in retirement While this has traditionally been interpreted as meaning trustees should focus only on financial returns, the consideration of environmental, social and governance factors - or ESG investing - is increasingly the norm. Proponents argue ESG factors pose risks to prospective financial returns. Last September, The Australia Institute's Centre for Future Work published a TWU-commissioned report about the consequences of wage suppression for the super system. Penned by economist Jim Stanford, it concluded there were major implications for the governance of super funds because their sole purpose was to enhance retirement benefits for fund members. "Fulfilling their responsibility to maximise the post-retirement benefits of fund members would seem to imply that superannuation funds and their directors have a responsibility to oppose aggressive and even illegal wage suppression strategies using whatever levers and influences are at their disposal," it said. The report referenced wage battles at Qantas, the cancelling of enterprise agreements by Streets Ice Cream, Griffin Coal, Aurizon and Murdoch University, and disputes at Domino's, 7-Eleven and Caltex. Mr Sheldon, who has been with the TWU for 30 years and on the TWU super board for the past 13 years, has the number one spot on the NSW Labor senate ticket for the next election, guaranteeing him a seat Mr Sheldon said the fact that super funds would one day be bigger than banks was to be celebrated because the industry fund sector would do a better job than the banks. The latter had caused the global financial crisis and allowed the sort of behaviour exposed by the Hayne commission, he said. "Capital can work for the whole community or it can work for itself," he said. "We need to take responsibility for how our money is invested and what affect those investments will have on member now and in the future." Industry funds have just notched up a year of strong growth, with total assets reaching $632 billion in the June quarter. For the first time they hold more assets than retail funds. Their upward trajectory is expected to continue on the of strong investment returns and membership growth driven by an exodus form bank funds. As a senator, Mr Sheldon will push for a ban on for-profit super funds. "The retail funds have no place in superannuation," he said. "There is a fundamental cultural difference between for-profit [funds] in this space in comparison with best return for members which is delivered by not-for-profit funds. It raises the question - are they fit and proper to be in that space? Clearly they're not" Mr Sheldon said the job of super trustees was not just to ensure dignity in retirement but a dignified path to retirement

74 Australian Financial Review, Australia Author: Joanna Mather Section: General News Article type : News Item Classification : National Audience : 44,635 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 10,174 Words: 832 Item ID: Page 3 of 3 Senate hopeful and veteran unionist Tony Sheldon at his home in Surry Hills, Sydney, yesterday, PHOTOJESSICA HROMAS Tony Sheldon will push for a ban on forprofit super funds. PHOTO: JESSICA HROMAS

75 Australian Financial Review, Australia Author: Jennifer Hewett Section: General News Article type : News Item Classification : National Audience : 44,635 Page: 2 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,192 Words: 949 Item ID: Page 1 of 2 Jennifer Hewett jhewett@afr.com.au ASICs retort to its Hayne flaying Kenneth Hayne takes aim at big targets, particularly big banks. But his interim report also hits out hard against the regulators responsible for market behaviour - good and bad. The Australian Securities and Investments Commission comes in for particularly astringent criticism as the key organisation supposedly in charge of finding examples of misconduct or illegality in financial services, punishing it as required and preventing it recurring. In the royal commission's blunt view, ASIC instead has become an institution too reluctant to litigate, too slow to insist on remedial action, too prone to negotiate rather than denounce and punish, and too soft in the penalties it imposes. This adds up to a pretty comprehensive trashing of the record of former chair of ASIC, Greg Medcraft Medcraft is at present in Australia on holidays but his new role as director of financing and business affairs at the OECD is based in Paris - out of view if not out of mind as the royal commission trawls through the failings it sees in the "cop on the beat". During his tenure, however, Medcraft always strongly defended ASICs achievements, especially given financial and legal constraints and the ability of the banks to outwait and outspend a regulator. New chair James Shipton is more apologetic and promising change at ASIC, while Josh Frydenberg described ASICs culture as "unacceptable". Yet Medcraff s view won't have softened despite Hayne's scepticism. In part, this reflects his frustrations with Canberra's failure to actually enact more recommendations despite repeated announcements of new measures to improve the regulator's ability fo take effective action. That includes, for example, failure to pass legislation giving ASIC the ability to ban the sale of dodgy financial products - known as "product intervention" - as recommended by David Murray in the financial services inquiry. Nor does ASIC yet have the promised "directions" power to force banks to speed up negotiations and compensation rather than drag it out Such resistance will be diluted by the commission's "naming and shaming" of such behaviour. Political and legal reality still means the drama of the commission's hearings - including systemic failures revealed - won't be neatly or quickly fixed by yet another series of recommendations. The delays in financial entities reporting breaches and lack of punishment may have shocked the public. Yet the wording of the legislation requires breaches to be "significant or likely to become so", with the timetable only starting after a financial institution becomes "aware" of it That really is a lawyer's picnic. And while ASIC's funding has been increased, the budget of a regulator is far less than banks' deep pockets. But is that enough of an excuse for ASIC? In an interview with The Australian Financial Review last year, Medcraft conceded he had initially been less willing to take enforcement action because he believed people would respond to "engagement". He quickly realised, he said, this was "incorrect" and that "deterrence works". But what sort of deterrence? Litigation inevitably involves high legal costs, protracted delays and uncertain results. Even if successful, penalties awarded are usually only a small percentage of the possible maximum. This means ASIC takes a big risk, especially given the resources of an organisation that the Abbott government's first budget cut by 20 per cent According to the commission's interim report, such risk is outweighed by ASICs need to demonstrate a credible threat of litigation based on having a much longer list than it does of proceeding to court. The deterrent effect of this greater willingness to litigate, Hayne argues, would also be a "sharp spur" to alternative negotiations over liability and compensation as well as acting as more of a deterrent to similar bad behaviour from other financial entities. "ASICs starting point appears to have been: How can this be resolved by agreement? This cannot be the starting point for a conduct regulator," he writes in his report The finishing point however, is far less clear. "This report is written by lawyers for lawyers to ask for more lawyers," one industry player says. "Relying on the judiciary given the law's complexity and delays is just out of touch." One high-profile example of the legal complications for ASIC is currently playing out with Westpac. An imminent federal court announcement will determine penalties against the bank for being found guilty of "unconscionable conduct" in setting a key benchmark interest rate on four occasions between 2010 and The fine is likely to be limited, given Justice Jonathon Beach didn't accept ASIC's central case Westpac was guilty of "market manipulation" over the bank bill swap rate. Both sides immediately claimed vindication. Rather than risk going to court the other big three banks had previously settled with ASIC for a total of $125 million in fines, while only admitting they had "attempted" to engage in unconscionable conduct

76 Australian Financial Review, Australia Author: Jennifer Hewett Section: General News Article type : News Item Classification : National Audience : 44,635 Page: 2 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,192 Words: 949 Item ID: Page 2 of 2 This hardly looks like a clear-cut win for the regulator despite the years of effort and tens of millions of dollars expended in pursuing the issue. And that counts as success! This helps explain ASICs preference for instead negotiating "enforceable undertakings" or other deals even though such arrangements have been discredited in the commission as taking too long and being too lenient on the banks. This too is now being tested. Another judge faced with a $35 million settlement between ASIC and Westpac over breaches of responsible lending has sent it for review. Modest punishments usually imposed, according to Hayne, have become "a cost of doing business", well worth the rewards. True. But there's plenty of blame to go round. Dealing with the results' will require much more than a belatedly more aggressive regulator. The Hayne commission has comprehensively trashed the record of former ASIC chair Greg Medcraft.

77 Australian Financial Review, Australia Author: Joyce Moullakis Section: Companies and Markets Article type : News Item Classification : National Audience : 44,635 Page: 15 Printed Size: cm² Market: National Country: Australia ASR: AUD 6,270 Words: 738 Item ID: Page 1 of 1 Bank bonuses in gun as CEO grilling looms Joyce Moullakis The chairman of federal parliament's Standing Committee on Economics, Tim Wilson, has lashed out at the conduct failures of the major banks, saying they must learn from the "reality check" of the Hayne royal commission and change their bonus-led cultures. His comments come as the chief executives of the nation's largest four banks prepare to face their first public grillings, beginning Thursday, over rampant misconduct and potential breaches of legislation detailed in the royal commission's interim report. Sources suggested bank bosses had completed an immense amount of preparation ahead of appearing in Canberra, using the committee hearings as a practice run for the final round of the royal commission hearings next month. The CEOs are also expected to remind the committee they are still compiling their formal responses to the interim report, which are due late this month. Mr Wilson, a Liberal politician, will preside over what is likely to be a fiery set of hearings as the bank chiefs go head-to-head with parliamentarians after shocking revelations of customer mistreatment charging fees for no service or to dead people, and other governance failures. "The naked conclusion of the royal commission hearings is sections of banks have a culture that puts bonuses ahead of bank customers," Mr Wilson told The Australian Financial Review. 'To rebuild public confidence, banks will have to prove that there's a realignment of culture and incentives from putting bonuses first, to bank customers first" In his interim report, Commissioner Kenneth Hayne found that the reason for bank misconduct "too often... seems to be greed - the pursuit of shortterm profit at the expense of basic standards of honesty. How else is charging continuing advice fees to the dead to be explained?" This week, three of the big four bank chiefs each flanked by a key executive will front the committee. They are Commonwealth Bank of Australia's chief Matt Comyn and his soon-to-be-deputy David Cohen, Westpac Banking Corp's Brian Hartzer and finance boss Peter King, and ANZ Banking Group's chief Shayne Elliott and deputy Alexis George. National Australia Bank boss Andrew Thorburn and customer chief for corporate and institutional banking David Gall will appear the following week. Compounding the banks' situations are growing expectations the Hayne commission will make public their initial 50-page confession statements before it delivers its final report in February. Mr Wilson was firm that while banks play a critical role in the economy, they had traded on their trust and left themselves "exposed and wanting". "The royal commission is a reality check for banks that they'll be held accountable by a reasonable customer expectation that a fair day's pay is dependent on a fair day's work in customer interests. If s also a reality check for regulators that they shouldn't assume the public sees them as the good guys, there's an expectation that they'll fulfil their role and are equally accountable... it will be interesting to hear how the banks see the possibility of reform to regulators to develop a healthier culture." The interim Hayne report found regulators were often taking a light touch or consultative approach to misconduct in the sector, rather than being strong enforcers of existing laws. Among the Standing Committee on Continued pt9 Adele Ferguson page 'From page 15 Bank bonuses in the gun as CEOs ready for grilling Economics members are the Greens' Adam Bandt, Labor's Matt Thistlethwaite and the Liberals' Craig Laundy. Some of the committee members are said to be keen to push the bank chiefs to make on-the-record assurances at the hearings. The same committee also has the power to compel government agencies such as the central bank or the corporate regulator to appear before it The sense this week is that the bank chiefs will want to take ownership of their mistakes and stress that measures are already under way to make staff and executives more accountable. That would include changes to remuneration structures or the docking of bonus payments. The prudential regulator's scathing assessment of CBA's governance framework will also likely rate a mention at the committee, as will the Australian Securities and Investments Commission's scathing report on the banks' extremely slow investigation and reporting of breaches. Committee members are also expected to take aim at out-of-cycle rate rises by the banks. Three of the big four, with the exception of NAB, attributed the higher cost of funding for the ratcheting up of their standard variable home loan rates. The committee's most recent report, released late last year, spanned areas including and money laundering provisions and comprehensive credit reporting.

78 Australian Financial Review, Australia Author: Yolanda Redrup Section: Companies and Markets Article type : News Item Classification : National Audience : 44,635 Page: 19 Printed Size: cm² Market: National Country: Australia ASR: AUD 6,998 Words: 667 Item ID: Page 1 of 2 KPMG's Wiise set to take on Xero,MYOB Exclusive Yolanda Redrup KPMG's new cloud accounting player Wiise is hoping a new relationship with the "Netflix of cloud licensing subscriptions" will help it quickly gain traction to take on the likes of Xero and MYOB. The accounting software platform, which has been jointly developed with the Commonwealth Bank and Microsoft, is targeting mid-market businesses that have outgrown Xero but do not require all the features, or costs, of Oracle or SAFs enterprise resource planning software. KPMG partner and executive director of Wiise John Munnelly told The Australian Financial Review that selling the service through software distributor rhipe would make it attractive to companies already using Microsoft's Office 365 products. "We realised we were good at building the software and making it work, but we should focus on that and bring in rhipe to get it out to market," Mr Munnelly said. "We're just scratching the surface at the moment of working out how to go to market, but looking at rhipe, they have thousands of customers on Office so when their partners go out and sell Office 365, they can now sell a product that will help them run their business as well... and that means we should grow really quickly. "The solution we're providing is more complex [than Xero or MYOB], so it requires some set-up time and it does need some people there to help get it up and running." Wiise, which is owned by KPMG but shares its intellectual property with Microsoft and CBA, officially launched two months ago. On top of providing accounting and financial management tools, it includes job costing, workflow scheduling and inventory management, payroll, sales and marketing, and customer relationship management It also includes Microsoft's artificial intelligence, voice recognition and cyber security technology. User data will be stored in Microsoft data centres. It will be open to customers of all the major banks, but CBA customers will have added functionality, including invoice and payment services and, in the future, built-in financing options. Rhipe, which listed on the ASX in 2014, provides a subscription platform for software resellers to access software-as-a-service (SaaS) products from companies such as Trend Micro, Microsoft, Symantec, Citrix, Sinefa, DocuSign and VMware for a monthly fee. But rather than paying a flat rate as for something like Netflix or Stan, resellers only pay for the services they use. As well as providing access to a range of services, rhipe also provides 24/7 support, taking that burden off the reseller. As well as going through rhipe, Mr Munnelly was confident that Wiise would be able to leverage KPMG's global network to expand offshore with ease - a task that has proven challenging for competitor Xero in the US. "We won't do anything for at least six months, but one of the benefits of the KPMG and Microsoft network is that it's global. We're already working with KPMG firms in other countries to see which ones have the most interest in Wiise," he said. "KPMG has offices in 149 countries, giving us access to those people, and Microsoft already has 30 languages baked into the platform, so Wiise is already multilingual." While Xero now has almost 1.4 million subscribers globally and has seen solid growth in Britain (now its second biggest market), the US market is only just starting to take hold, with the business going from 92,000 subscribers at the end of its 2017 financial year to 132,000 in Mr Munnelly said he expected to win some subscribers from new businesses starting up, but also anticipated some to graduate from Xero or MYOB on to Wiise. "We talk about app fatigue," he said. "With Xero you might also have two or three apps attached and spend lots of time syncing... thafs when you know you need one solution that's all-encompassing." Wiise is targeting mid-market businesses that have outgrown Xero.

79 Australian Financial Review, Australia Author: Yolanda Redrup Section: Companies and Markets Article type : News Item Classification : National Audience : 44,635 Page: 19 Printed Size: cm² Market: National Country: Australia ASR: AUD 6,998 Words: 667 Item ID: Page 2 of 2 Wiise men: From left, Steven Worrall, Adam Bennett, John Munnelly and James Hunter. "[A benefit] of the... network is that it's global." PHOTO: JESSICA HROMAS

80 Australian Financial Review, Australia Author: Jenny Wiggins Section: Companies and Markets Article type : News Item Classification : National Audience : 44,635 Page: 20 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,461 Words: 545 Item ID: Page 1 of 2 UniSuper bullish on 'fortress' Aurizon Jenny Wiggins UniSuper, which has described Aurizon as a "fortress asset", is now the rail company's biggest investor, lifting its stake to 11.5 per cent after the UK's Children's Investment Fund slashed its holdings. UniSuper, which previously owned 7.5 per cent of Aurizon, has replaced The Children's Investment Fund (TCI) as the rail company's top investor after TCI slashed its stake to 10.2 per cent from 19 per cent in late September. "We are always looking to invest in quality assets at a reasonable price, and decided to take advantage of recent price weakness caused by an offshore seller," a UniSuper spokesperson said. The superannuation group, which has $70 billion of funds under management and invests on behalf of 37 universities, has been investing heavily in infrastructure stocks, with Transurban and Sydney Airport topping its holdings of Australian shares. It is the biggest investor in Transurban with a 13.4 per cent stake, and is also the biggest investor in Sydney Airport with 16 per cent UniSuper doesn't break out listed infrastructure as a separate asset class so it is unclear what percentage of its funds are invested in infrastructure. UniSuper said in its July investment report that Aurizon was the only investment worth more than $500 million of shares that had fallen in value during the year. Aurizon's shares, which closed at $4.14 on Friday, are down 16 per cent since January, and down 14 per cent over the past 12 months compared with a 9.5 per cent rise in the S&P/ASX 200. UniSuper attributed the share price drop to the Queensland Competition Authority's (QCA) "very unfavourable ruling" on a draft decision released in December over how much money Aurizon can make from providing access to its Queensland infrastructure tracks, and noted Aurizon was appealing the decision. "Even if the appeal isn't successful, Aurizon has 'fortress asset' characteristics and we're of the view that the shares are undervalued and a potential buying opportunity," UniSuper said. Other investors have been less optimistic about the rail company's outlook, with Cooper Investors citing the QCA's decision as a key reason to sell more than $100 million of Aurizon shares early this year. UniSuper's increased investment in Aurizon, which makes money from providing haulage services to coal miners, increases the superannuation group's exposure to the coal industry. Its climate risk report says Aurizon - which has come under attack from anti-coal activists - provides services to operational mines that are "relatively cheap sources of coal" and that it has long-term take-or-pay contracts that give it time to plan its future strategy. 'This means it isn't exposed to the same level of risk as reserves that [are] yet to be exploited and will be less exposed to a drop in growth rates," the report says. But Aurizon has argued that it should be compensated by its regulator for the risk of becoming a "stranded asset" as consumers shift away from fossil fuels like coal to renewable energy. UniSuper told The Australian Financial Review in July that it had "very little coal exposure", even though its top 20 Australian holdings include BHP Billiton and Rio Tinto. It says these mining companies are "highly diversified".

81 Australian Financial Review, Australia Author: Jenny Wiggins Section: Companies and Markets Article type : News Item Classification : National Audience : 44,635 Page: 20 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,461 Words: 545 Item ID: Page 2 of 2 Ho taxpayer $6i///ons UniSuper isn't worried about Aurizon's coal exposure, even though the company has been targeted by activists, PHOTO: GLENN HUNT

82 Australian Financial Review, Australia Section: Companies and Markets Article type : News Item Classification : National Audience : 44,635 Page: 16 Printed Size: cm² Market: National Country: Australia ASR: AUD 3,439 Words: 422 Item ID: Page 1 of 1 PEXA: Heads Link wins, tails it still doesn't lose Hats off to Link Group's wily dealmakers John McMurtrie and John Hawkins. link, flanked by Commonwealth Bank of Australia and Morgan Stanley Infrastructure Partners, will submit its binding bid for property settlements exchange PEXA on Monday (October 8). The only other compering bid isn't expected to be a bid at all. Rather, it'll be investment banks Macquarie Capital and Morgan Stanley, who have been asked to submit a "strong indication" of what the exchange's owners could get if they listed the business. So if s Link and Co versus a potential IPO. Link, advised by JPMorgan, is already PEXA's second biggest shareholder with a 19.8 per cent stake. Either it wins as a shareholder in the Link/CBA/MS bidding group-which sources said was split evenly three ways between the investors - or it loses to an initial public offering that would crystallise the value of its existing stake. PEXA's other shareholdersincluding Macquarie Capital, four state governments, the big four banks and director Paul Little, advised by CLSAshould send Link's two Johns a thank you card. Without Link, PEXA's longmooted liquidity event would be a onesided IPO process with all the cards in the hands of fund managers. It is understood Macquarie and Morgan Stanley have started taking what fundies would describe as "soft bids" as the brokers try to tilt the dualtrack auction towards the ASX-boards. Fundies said they had been encouraged to indicate their demand for PEXA shares at a couple of price points, which would value the business at as much as $2.5 billion. The reward for bidding early would be prime place in the IPO book should PEXA head to thestockmarket It is understood investors were asked to think about PEXA as a $140 million-a-year business at the EBITDA line by the 2022 financial year. Such assumptions would mean PEXA had captured 80 per cent of its primary addressable market at a 70 per cent operating margin within four years. And the brokers want to see bids at about 17 times the EBITDA forecast Whatever the outcome, we're assured by sources on both sides of the auction that the outcome should see Link increasing the value of its stake. Link paid $132.3 million for the 19.8 per cent And the sorts of numbers washing around fundie land and investment banking circles would have it worth about three times that today. Remember Link was the last investor in the club deal. One of the first and still the biggest, Macquarie Capital, would be looking at even bigger gains.

83 News Mail, Bundaberg QLD Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 6,176 Page: 16 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 757 Words: 874 Item ID: Page 1 of 3 16 FINANCE MONDAY, OCTOBER 8, 2018 NEWS-MAIL.COM.A Power of share dividends It s the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. The power of dividends to supercharge the performance of listed shares (or cushion them in a downturn) is always underestimated as we tend to focus only on share-price movement. We often forget the dividend return. Since January 2004, the indexed share-price return of stocks in the All Ordinaries Index is around 90 per cent. But the total return (shareprice movement plus dividends) is 255 per cent that s the power of dividends. BIG RETURNS Studies in the US show that over a year, 80 per cent of a share s return comes from fluctuations in the share price. But over a five-year investment horizon, 80 per cent of a share s return comes from dividend yield and dividend growth. With many top 200 companies paying a dividend yield of 5-7 per cent, add the impact of franking credits and that return can jump to an impressive 9 per cent. Fully franked dividends are those from companies that have paid the full rate of company tax on their profits. As a result, the share of profits they pay shareholders as a dividend comes with a tax credit equal to the amount of company tax which has been paid to avoid double taxation. For example, the major banks pay the full 30 per cent company tax on profits so their shareholders receive a dividend with a 30c-in-thedollar tax credit. If a shareholder s marginal tax rate is less than 30 per cent, then that dividend is tax-free. The four major banks all have fully franked dividend yields over 6 per cent, and we bet they don t offer that sort of tax-advantaged income return through any of their banking products to customers. They are attractive returns and a powerful boost to investor returns, but it must be acknowledged that dividend yields are a reflection of not only the share of profits a company pays out but also its share price. As dividends are fixed as a dollar amount twice a year, the percentage dividend yield will go up if the dividend payout stays the same, while the share price goes down. So, an investor has to balance up the current attractive dividend yield with the prospects of the individual companies.

84 News Mail, Bundaberg QLD Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 6,176 Page: 16 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 757 Words: 874 Item ID: Page 2 of 3 Is a low share price because the company is in a prolonged slump and may not be able to maintain its dividend payout? Or is it a short-term downturn and the company is strong enough to bounce and maintain its dividend? If, in consultation with your broker or financial planner, it s the latter reason, then investing in strong blue-chip stocks with good yields can be attractive. Financial services giant AMP is an example of this. In April, its share price was as high as $5.47, while today, it s down around $3 because of the hammering it received from the banking royal commission. That plunge in share price has seen the AMP dividend yield rise to 6.25 per cent. A similar situation, although not to the same extent, has occurred across all the major banking shares as investors nervously wait for the impact of potential regulatory changes. Westpac has a 6.7 per cent dividend yield, NAB 7.2 per cent, CBA 6.5 per cent and ANZ 5.7 per cent all fully franked. Can the banks bounce with profits and dividends unharmed or will they be less profitable from any proposed changes and have to pare dividends? It s all a question of balance. A good dividend yield from a company producing strong cash flows can provide not only a welcome income stream for investors but ensure a buffer to a falling share price. LOOK AROUND The key is to be selective and look for a strong dividend yield, dividend growth and good cash flow to ensure that dividend can be maintained. Brokers consistently have CSR, Telstra, AGL, Wesfarmers and WAM in their lists of stocks paying good dividends. Not only do strong dividends make sense to supercharge or cushion share price performance, they have become increasingly important for investors looking for income returns to pay bills. After last week s decision from the Reserve Bank to keep official interest rates on hold again, many analysts are predicting the next rise in rates will not be until the middle of next year, with some even saying it s more likely in Of course, banks have been increasing home-loan interest rates out of cycle but they generally haven t been lifting savingsortermdepositrates. So, a 6-7 per cent fully franked dividend looks incredibly attractive in a low-interest rate, low-inflation environment. As we ve said, though, you need to get professional investment advice to build the right income investment portfolio for you. A mixture of dividends, income hybrids and bonds can offer good returns.

85 News Mail, Bundaberg QLD Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 6,176 Page: 16 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 757 Words: 874 Item ID: Page 3 of 3

86 Geelong Advertiser, Geelong VIC Author: Sam Stevenson Section: General News Article type : News Item Classification : Regional Audience : 16,687 Page: 16 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 1,037 Words: 442 Item ID: Page 1 of 2 Make sure your super travels as well as you YOUR MONEY with SAM STEVENSON ANYONE planning a move overseas for work may want to consider the superannuation implications of the move. If you re a permanent resident, your super will remain subject to the same rules as if you were living here. If you re a temporary resident, you may be able to claim a departing Australia superannuation payment (DASP). You might be leaving the country for a variety of reasons career prospects, love, adventure, new opportunities or you may be returning home. While you ve probably got a checklist of things to cover off before you leave, spare a thought for any super you might ve accumulated while working in Australia. so it s a good idea to keep track of it. Even if you re leaving the country permanently, if you re an Australian citizen or permanent resident your super will remain subject to the same rules. In most instances you generally won t be able to access your super until you reach your preservation age between 55 and 60, depending on when you were born. Meanwhile, if you re going to continue working for an Australian employer, they may still be required to contribute to your super, so check the Australian Taxation Office (ATO) website for more information. If you re a temporary resident, when you leave the country you may be able to claim the DASP, which means you can take your super with you. It s worth checking out what the super or retirement savings situation is in the country to which you ve relocated. Do your research on whether and on what basis you can recover or withdraw any contributions you make while you re away. If you re close to your preservation age, find out if there are any tax implications for withdrawing your Australian super when you become eligible to do so. Ensure your super fund has all your up-to-date details so it can stay in touch with you. This will also help to avoid any small lost or unclaimed super balances you might have being transferred to the ATO. If you do find you have super with multiple providers, there may be advantages to rolling your accounts into one such as paying one set of fees, which could save you hundreds of dollars each year and even thousands over many years. Sam Stevenson is an authorised representative and credit representative of JSSJ Financial Pty Ltd (ABN ) trading as Edge Advisory Partners, is an authorised representatives of AMP Financial Planning Pty Limited, Australian financial services licensee and an Australian credit licensee.

87 Geelong Advertiser, Geelong VIC Author: Sam Stevenson Section: General News Article type : News Item Classification : Regional Audience : 16,687 Page: 16 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 1,037 Words: 442 Item ID: Page 2 of 2 SUPER RULES: What happens to your superannuation if you leave Australia to work overseas?

88 Daily Mercury, Mackay QLD Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 7,738 Page: 14 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 711 Words: 874 Item ID: Page 1 of 2 Power of share dividends It s the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. The power of dividends to supercharge the performance of listed shares (or cushion them in a downturn) is always underestimated as we tend to focus only on share-price movement. We often forget the dividend return. Since January 2004, the indexed share-price return of stocks in the All Ordinaries Index is around 90 per cent. But the total return (shareprice movement plus dividends) is 255 per cent that s the power of dividends. BIG RETURNS Studies in the US show that over a year, 80 per cent of a share s return comes from fluctuations in the share price. But over a five-year investment horizon, 80 per cent of a share s return comes from dividend yield and dividend growth. With many top 200 companies paying a dividend yield of 5-7 per cent, add the impact of franking credits and that return can jump to an impressive 9 per cent. Fully franked dividends are those from companies that have paid the full rate of company tax on their profits. As a result, the share of profits they pay shareholders as a dividend comes with a tax credit equal to the amount of company tax which has been paid to avoid double taxation. For example, the major banks pay the full 30 per cent company tax on profits so their shareholders receive a dividend with a 30c-in-thedollar tax credit. If a shareholder s marginal tax rate is less than 30 per cent, then that dividend is tax-free. The four major banks all have fully franked dividend yields over 6 per cent, and we bet they don t offer that sort of tax-advantaged income return through any of their banking products to customers. They are attractive returns and a powerful boost to investor returns, but it must be acknowledged that dividend yields are a reflection of not only the share of profits a company pays out but also its share price. As dividends are fixed as a dollar amount twice a year, the percentage dividend yield will go up if the dividend payout stays the same, while the share price goes down. So, an investor has to balance up the current attractive dividend yield with the prospects of the individual companies. Is a low share price because the company is in a prolonged slump and may not be able to maintain its dividend payout? Or is it a short-term downturn and the company is strong enough to bounce and maintain its dividend? If, in consultation with your broker or financial planner, it s the latter reason, then investing in strong blue-chip stocks with good yields can be attractive. Financial services giant AMP is an example of this. In April, its share price was as high as $5.47, while today, it s down around $3 because of the hammering it received from the banking royal commission. That plunge in share price has seen the AMP dividend yield rise to 6.25 per cent. A similar situation, although not to the same extent, has occurred across all the major banking shares as investors nervously wait for the impact of potential regulatory changes. Westpac has a 6.7 per cent dividend yield, NAB 7.2 per cent, CBA 6.5 per cent and ANZ 5.7 per cent all fully franked. Can the banks bounce with profits and dividends unharmed or will they be less profitable from any proposed changes and have to pare dividends? It s all a question of balance. A good dividend yield from a company producing strong cash flows can provide not only a welcome income stream for investors but ensure a buffer to a falling share price. LOOK AROUND The key is to be selective and look for a strong dividend yield, dividend growth and good cash flow to ensure that dividend can be maintained. Brokers consistently have CSR, Telstra, AGL, Wesfarmers and WAM in their lists of stocks paying good dividends. Not only do strong dividends make sense to supercharge or cushion share price performance, they have become increasingly important for investors looking for income returns to pay bills. After last week s decision from the Reserve Bank to keep official interest rates on hold again, many analysts are predicting the next rise in rates will not be until the middle of next year, with some even saying it s more likely in Of course, banks have been increasing home-loan interest rates out of cycle but they generally haven t been lifting savingsortermdepositrates. So, a 6-7 per cent fully franked dividend looks incredibly attractive in a low-interest rate, low-inflation environment. As we ve said, though, you need to get professional investment advice to build the right income investment

89 Daily Mercury, Mackay QLD Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 7,738 Page: 14 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 711 Words: 874 Item ID: Page 2 of 2 portfolio for you. A mixture of dividends, income hybrids and bonds can offer good returns.

90 Hobart Mercury, Hobart Author: Tim McIntyre Section: Business News Article type : News Item Classification : Capital City Daily Audience : 28,265 Page: 20 Printed Size: cm² Market: TAS Country: Australia ASR: AUD 3,607 Words: 513 Item ID: Page 1 of 2 OPTIONS: Anthony and Pritema Bivon, seen below on their wedding day, are among the borrowers turning to non-bank financial institutions to fund projects such as home renovations. Pictures: Getty Images and MMG Photo + Cinema From renovations and weddings to cars and holidays, new loan options are emerging, writes TIM McINTYRE BORROWERS are turning away from traditional banks when applying for personal loans and, instead, are flocking to digital, mobile-centric platforms and peer-to-peer lenders. A CommSec Economic Insights report shows loans by non-bank financial institutions were up 10.3 per cent for the year to August. According to CommSec chief economist Craig James, this was an indication that banks were engaging in more considered lending, and borrowers had other options. Banks are facing greater competition from non-banks, he said. At the same time, bank deposits are only lifting at a 2.5 per cent annual rate, putting greater reliance on external funding. It is clearly a competitive and challenging environment for financial institutions. Peer-to-peer lender SocietyOne has become the first marketplace lender of its kind in Australia to hit $500 million in loans to 20,000 borrowers and is on track to reach $1 billion in Society One CEO Mark Jones said the influx was largely about convenience for the next generation of borrowers. Millennial consumers have been increasingly demanding a fairer, faster, easier and more personalised mobile-centric solution from almost every brand they transact with, he said. Think Uber, Airbnb and the rest of the sharing economy. Financial services really are no different. Mr Jones said the recent spotlight on cases of bad banking behaviour had also encouraged borrowers to turn away from major lenders. The Royal Commission has undoubtedly helped remind customers to check they are getting a good deal from their bank, he said. It never hurts to get a second opinion. Ratesetter Australia is another peer-to-peer lender that has seen a spike in activity, with debt consolidation, car financing and home renovations among top wish list items for borrowers. Ratesetter CEO Daniel Foggo said the digital model was simpler, faster and often more affordable.

91 Hobart Mercury, Hobart Author: Tim McIntyre Section: Business News Article type : News Item Classification : Capital City Daily Audience : 28,265 Page: 20 Printed Size: cm² Market: TAS Country: Australia ASR: AUD 3,607 Words: 513 Item ID: Page 2 of 2 alternative-lending options has been steadily rising over the past several years in Australia, as consumers become more confident in fintechs, he said. The growth in the number of alternative lenders is helping to drive this. Consumers now have more choice and know they can get better value, rather than being stuck with the same options they ve always used. When Anthony Bivon wanted to propose to his girlfriend, Pritema, and renovate his property for their future, he was disappointed with his options. After approaching my bank, which I was a loyal customer of for 15 years, plus several phone calls and frustrating s, I wasn t able to (get what I needed), he said. We couldn t seem to get any support or a decent interest rate with our bank. After searching online for alternatives, Mr Bivon chose a personal loan with Society One, which helped him achieve his goals. And I married the woman of my dreams in November 2017, he said.

92 West Australian, Perth Author: Shane Wright Section: General News Article type : News Item Classification : Capital City Daily Audience : 147,676 Page: 43 Printed Size: cm² Market: WA Country: Australia ASR: AUD 13,131 Words: 1089 Item ID: Page 1 of 3 Questions that need answers Shane Wright Economics Editor Ninety-nine questions. That s what Kenneth Hayne, the man heading the royal commission into the banking and financial sectors, has posed in his interim report. Ninety-nine questions that go to the heart of the way we use our banks, get insurance, make investments and plan for our retirement. And they are the 99 questions that will clearly shape both the recommendations that Commissioner Hayne will deliver to the Federal Government early next year and perhaps the response of Scott Morrison and Bill Shorten. The Hayne inquiry follows a long line of investigations into the financial sector over the past 20 years. The most important of those was the Wallis inquiry of 1996, the HIH royal commission that reported in 2003 and the Murray Financial Services Inquiry that was ordered by Joe Hockey. Looking at those three inquiries it s clear they put too much faith in our bankers and regulators while at the same time not focusing enough on consumers. And their warnings, when they were issued, were ignored. For instance, the royal commission into the collapse of insurer HIH produced 61 recommendations in This was recommendation 26. APRA (should) develop a more sceptical, questioning and, where necessary, aggressive approach to its prudential supervision of general insurers, it recommended. Consultation, inquiry and constructive dialogue should be balanced by firmness in its requirements and a preparedness to enforce compliance with applicable standards. In particular, APRA should take a firm approach to ensuring regulated entities timely compliance in the lodging of returns and the provision of information. Fifteen years later and this is what Hayne had to say about APRA and fellow regulator ASIC. When misconduct was revealed, it either went unpunished or the consequences did not meet the seriousness of what had been done, he found. The conduct regulator, ASIC, rarely went to court to seek public denunciation of and punishment for misconduct. The prudential regulator, APRA, never went to court. We don t even have to go that far in time. The Financial Services Inquiry, headed by former Commonwealth Bank boss David Murray, appears to have asked the wrong questions. There was concern at the time about his inquiry, that it would hurt the banking sector. Instead, Murray gave it a clean bill of health while arguing more competition and less regulation would help the sector in its role of funding the national economy. It argued that fairness was important to the financial system. Fair treatment occurs where participants act with integrity, honesty, transparency and non-discrimination. A market economy operates more effectively where participants enter into transactions with confidence they will be treated fairly, it reported. Murray did find the current regulatory system in the financial system was not sufficient to deliver fair treatment to consumers. However, its argument was that there were shortcomings when it came to disclosures and financial advice which means some consumers are sold financial products that are not suited to their needs and circumstances. Sorry, we re two-thirds of the way through a royal commission that believes greed is at the heart of some terrible decisions and actions. Take fees from dead people? Hand over loans to people who have no idea what they ve signed up for? Fees for no services? Trailing commissions that eat into savings? Fees effectively hidden so people did not know they were being fleeced? That s more than a shortcoming. And that doesn t get to the issues in ASIC and APRA. APRA and ASIC are both creatures of the Wallis inquiry which started in mid-1996 to look at how better to regulate the financial sector. Much of the focus was on reducing costs, with complaints the financial sector was costing more to run than the construction industry. Yet head into royal commission hearings on superannuation and you find rather than reduce costs, the for-profit sector in particular was keen to transfer costs to consumers or hide them while boosting the revenue base of

93 West Australian, Perth Author: Shane Wright Section: General News Article type : News Item Classification : Capital City Daily Audience : 147,676 Page: 43 Printed Size: cm² Market: WA Country: Australia ASR: AUD 13,131 Words: 1089 Item ID: Page 2 of 3 the banks. A common theme through Wallis, through the HIH inquiry and then the Murray inquiry is the absence of the customer. The mums and dads and builders and nurses who actually depend on the banking sector for their day-to-day needs were put to the side. They re the ones who have been ripped off, fleeced and generally done over by a system that is effectively protected by the government of the day. More important in the three previous reports was efficiency (Wallis), technical repair (HIH) and economic stability (Murray). So where does this leave Hayne? Those 99 questions suggest he could go one of two ways. Big change or incremental. Big change means stripping powers from APRA and ASIC and transferring them to the Australian Competition and Consumer Commission with a remit to go hard against those found to be ripping off consumers. For instance, an organisation found to have taken fees for no service could actually find themselves in breach of criminal law such as theft. Stripping the power of the banks to offer MySuper products, leaving it to the non-profit sector, could also be on the radar for Hayne. An overhaul of remuneration practices, maybe even beyond the banking sector, cannot be discounted. For instance, the commissioner highlighted the danger of junior or frontline staff getting bonus payments for signing customers up to new products. If more junior employees should not be remunerated in this way, why should their managers and senior executives, Hayne asked. In the wake of the GFC, Wall Street firms successfully argued that restraints on bonuses would prevent banks and financial firms from competing for the best staff. The royal commission s findings are likely to prevent that sort of argument gaining any traction in Australia. In the agricultural field, Hayne wondered out loud whether farmers in drought-affected areas should be charged default interest if they fall behind on their repayments. Given natural disaster of one form or another is the default position of farming in this country, such a proposal would greatly swing benefits to farmers. But might that mean banks restrict their lending to the farming sector? Incremental proposals, which might be welcomed by the financial sector, appear unlikely given the way Hayne went to the heart of so many problems in his interim report. That would leave Morrison or Shorten, whomever is PM after the royal commission, facing some tough questions over how to deal with the recommendations set to flow. All will hinge on how Hayne answers the 99 questions he has posed himself.... shane.wright@wanews.com.au He (Hayne) could go one of two ways.

94 West Australian, Perth Author: Shane Wright Section: General News Article type : News Item Classification : Capital City Daily Audience : 147,676 Page: 43 Printed Size: cm² Market: WA Country: Australia ASR: AUD 13,131 Words: 1089 Item ID: Page 3 of 3 Illustration: Don Lindsay

95 Gladstone Observer, Gladstone QLD Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 3,301 Page: 17 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 762 Words: 874 Item ID: Page 1 of 3 Power of share dividends It s the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. The power of dividends to supercharge the performance of listed shares (or cushion them in a downturn) is always underestimated as we tend to focus only on share-price movement. We often forget the dividend return. Since January 2004, the indexed share-price return of stocks in the All Ordinaries Index is around 90 per cent. But the total return (shareprice movement plus dividends) is 255 per cent that s the power of dividends. BIG RETURNS Studies in the US show that over a year, 80 per cent of a share s return comes from fluctuations in the share price. But over a five-year investment horizon, 80 per cent of a share s return comes from dividend yield and dividend growth. With many top 200 companies paying a dividend yield of 5-7 per cent, add the impact of franking credits and that return can jump to an impressive 9 per cent. Fully franked dividends are those from companies that have paid the full rate of company tax on their profits. As a result, the share of profits they pay shareholders as a dividend comes with a tax credit equal to the amount of company tax which has been paid to avoid double taxation. For example, the major banks pay the full 30 per cent company tax on profits so their shareholders receive a dividend with a 30c-in-thedollar tax credit. If a shareholder s marginal tax rate is less than 30 per cent, then that dividend is tax-free. The four major banks all have fully franked dividend yields over 6 per cent, and we bet they don t offer that sort of tax-advantaged income return through any of their banking products to customers. They are attractive returns and a powerful boost to investor returns, but it must be acknowledged that dividend yields are a reflection of not only the share of profits a company pays out but also its share price. As dividends are fixed as a dollar amount twice a year, the percentage dividend yield will go up if the dividend payout stays the same, while the share price goes down. So, an investor has to balance up the current attractive dividend yield with the prospects of the individual companies. Is a low share price because the company is in a prolonged slump and may not be able to maintain its dividend payout? Or is it a short-term downturn and the company is strong enough to bounce and maintain its dividend? If, in consultation with your broker or financial planner, it s the latter reason, then investing in strong blue-chip stocks with good yields can be

96 Gladstone Observer, Gladstone QLD Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 3,301 Page: 17 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 762 Words: 874 Item ID: Page 2 of 3 attractive. Financial services giant AMP is an example of this. In April, its share price was as high as $5.47, while today, it s down around $3 because of the hammering it received from the banking royal commission. That plunge in share price has seen the AMP dividend yield rise to 6.25 per cent. A similar situation, although not to the same extent, has occurred across all the major banking shares as investors nervously wait for the impact of potential regulatory changes. Westpac has a 6.7 per cent dividend yield, NAB 7.2 per cent, CBA 6.5 per cent and ANZ 5.7 per cent all fully franked. Can the banks bounce with profits and dividends unharmed or will they be less profitable from any proposed changes and have to pare dividends? It s all a question of balance. A good dividend yield from a company producing strong cash flows can provide not only a welcome income stream for investors but ensure a buffer to a falling share price. After last week s decision from the Reserve Bank to keep official interest rates on hold again, many analysts are predicting the next rise in rates will not be until the middle of next year, with some even saying it s more likely in Of course, banks have been increasing home-loan interest rates out of cycle but they generally haven t been lifting savingsortermdepositrates. So, a 6-7 per cent fully franked dividend looks incredibly attractive in a low-interest rate, low-inflation environment. As we ve said, though, you need to get professional investment advice to build the right income investment portfolio for you. A mixture of dividends, income hybrids and bonds can offer good returns. LOOK AROUND The key is to be selective and look for a strong dividend yield, dividend growth and good cash flow to ensure that dividend can be maintained. Brokers consistently have CSR, Telstra, AGL, Wesfarmers and WAM in their lists of stocks paying good dividends. Not only do strong dividends make sense to supercharge or cushion share price performance, they have become increasingly important for investors looking for income returns to pay bills.

97 Gladstone Observer, Gladstone QLD Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 3,301 Page: 17 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 762 Words: 874 Item ID: Page 3 of 3

98 Queensland Times, Ipswich QLD Author: Daryl Passmore Section: General News Article type : News Item Classification : Regional Audience : 6,256 Page: 7 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 426 Words: 884 Item ID: Page 1 of 2 Metropolis plan not impossible DARYL PASSMORE A BOLD $70 billion proposal to fast-track southeast Queensland s development into a world-class super- metropolis of the future has been unveiled. A new report recommends a rapid rail network that would carry passengers to the centre of Brisbane from the Gold Coast, Sunshine Coast, Ipswich and even Toowoomba in under 45 minutes. Vast improvements to public transport and carefully targeted road projects would enable people to travel across individual cities within half an hour. The blueprint is outlined in a report by major infrastructure consultants SMEC, who were commissioned by the SEQ Council of Mayors to investigate transport as part of a feasibility study into a possible Olympic Games bid. It proposes a major shift in priority to public transport, reversing a trend towards private car use over the past 30 years. The centrepiece is a new faster rail network of frequent trains travelling at up to 250km/h. Average speeds of 150km/h would be almost three times the current 60km/h. It would halve the travel time from the Gold and Sunshine Coasts to the capital, and slash up to two-thirds off the journey from Ipswich. Stage one of the SEQ People Mass Movement Study found that enormous population and employment growth would increase transport demand across the region 31 percent by 2031, and by 53 percent adecadelater. Current planning and investment would not keep up, resulting in serious congestion, lower quality of life, slower economic growth and a decline in global competitiveness. Intervention is required, both in terms of investment in the missing gaps of the transport networks, and in terms of shifting away from the private car usage towards more sustainable mass transit passenger services, Jason Van Paassen, SMEC s transport planning team leader for Queensland said. A base scenario, including existing projects such as Cross River Rail and Brisbane Metro, would allow major centres to become half-hour smart cities. But a recommended advanced scenario envisages the state s southeast corner becoming an interconnected smart region over the next quarter of a century, securing its position as the country s most liveable and efficient metropolitan area. The rapid rail network would involve existing lines and new ones. They would include the North Coast Connect proposal which has already received federal Government funding for a business case for a new 40km track from Beerwah to Maroochydore. It proposes a new fast link to Southport from the current Gold Coast corridor. A fast initial connection to Ipswich would be extended to Toowoomba, although another recent $15 million business case grant to determine passenger rail requirements to the Darling Downs city could also see that brought forward. Trains carrying 500-plus passengers would be expected to run about every half-hour throughout the day offering an express alternative to existing services and stopping at a limited number of stations in other council areas including Moreton Bay, Logan and Lockyer Valley en route to the capital city. Those stations could include Caboolture and/or Petrie from the north, Beenleigh from the south and Gatton from the west. Modelling suggests it would take 45 minutes from Maroochydore to Brisbane 41 minutes quicker than the current trip from Mooloolah. The 35- minute Southport-Brisbane journey would be under half the current 73 minutes from Nerang. Trains from Ipswich could take 20 minutes, compared to today s 58 minutes. The initiative would take thousands of cars off the region s highways but the proposal does also factor in major new road infrastructure. More than 50 projects were identified in the study and a second stage, due to be completed by the end of the year, will determine the optimal priorities to achieve the strategic vision. A spending model for the transport plan, which includes the $944 million Metro and $5.4 billion Cross River Rail, puts the total cost between now and 2041 at $68 billion. That works out at $2.9 billion a year, close to the average historic combined infrastructure spending by State and federal governments of $2 billion to $3 billion. But the report suggests that a bid by southeast Queensland to host the 2032 Olympic Games could be used to accelerate the investment, bringing forward the delivery of the projects by more than a decade. That would mean spending just over $4 billion a year to 2031 but only $1.5 billion per annum for the decade afterwards. It proposes a City Deal-type funding agreement between federal, state and local government and says more than a quarter of the money needed could be sourced from the private sector through things like new tolled motorway links. Deputy Premier and Treasurer Jackie Trad said: I love fast rail. It s a terrific people mover but you need the population density to support it. We need the right investment at the right time. It s something that in a city region rather than a region of cities it will make much more sense. We are preserving rail corridors where we think it s important. International cities expert Professor Greg Clark said: Southeast Queensland is going to need to continually in-

99 Queensland Times, Ipswich QLD Author: Daryl Passmore Section: General News Article type : News Item Classification : Regional Audience : 6,256 Page: 7 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 426 Words: 884 Item ID: Page 2 of 2 vest in its connective infrastructure as it becomes one very successful globally oriented integrated region over the next couple of decades. There will need to be more rail infrastructure in particular. Sophie Dupouy, travels five days a week on the train to get to work. Photo: Cordell Richardson

100 Border Mail, Albury-Wodonga Author: Riley-Rose Harper Section: General News Article type : News Item Classification : Regional Audience : 13,519 Page: 14 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 2,250 Words: 792 Item ID: Page 1 of 3 R&R TIME Ididabudgetanditscaredmeintosaving RILEY-ROSE HARPER SO, I messed up. I ve been budgeting wrong for the past 10 years. Or at least since I ve been earning pocket money. It turns out when you do a budget you re supposed to calculate the money you WOULD be spending in the next month and budget for it - who would have thought, hey? I was doing it the wrong way around; I was spending all my money, then writing out what I spent it on, and then getting under the table to cry in the foetal position. And this is why I can t have nice things. However, it wasn t a big waste of time to reflect on what I had spent in the last month, because it literally scared me into saving. I wrote down EVERYTHING I had spent my hard-earned cash on; I didn t lie to myself like I had done in the past and mysteriously forget the fact I dropped $100 on a hair treatment. I wrote down $4 coffees, I wrote down $100 massages, I even wrote down money I spent when I was slightly tipsy at after-work drinks. I held my breath, I got my calculator, I crunched the numbers. I spent THAT MUCH on food?! was my initial thought followed by my deep concern it seemed I was just using my debit card to chase shiny things constantly. And I chased them with pure unabandoned disregard for any financial consequences. Look, I ve never been a good saver. And that s been my excuse for living a pay-to-pay existence. I justify my spendings with treat yourself! or it was on sale! or you ve gotta spend money to make money The last one makes no sense when you consider most of my money is spent on cappuccinos. When everyone started reading The Barefoot Investor, I teased my friends for drinking the Kool-Aid. But the joke was on me. And apparently my superannuation. According to Money Smart, 27 per cent of people break their financial resolutions because of lack of willpower fair enough but where s the stat for people who have never made a financial resolution? IDK. So, what are some budgeting tips from a budgeting tragic? Actually create the budget: Simple! Right?! Ignorance is not bliss when you drop $500 on beauty products (sorry mum). Do the budget. As Ice Cube so wisely said check yourself before you wreck yourself. When you go out for food, have a predinner snack: a nutritional tip disguised as a financial tip! Clever. I have learnt, as an avid café goer, if you go out for a meal and you are really hungry you will order the entire menu. I did this on Saturday morning with a build your own breakfast. I added so many extras that I accidentally dropped $40 on eggs. Rookie mistake. Eat a couple of savoys before you go, trust me. Trick your unsuspecting brain into saving cash:the only way I m going to save is a set and forget approach. Because it s likely I will actually forget about it. If you get an automatic payment to go into an account you can t touch, voila, you have a lot of peanuts by the end of the year. Merry Christmas. Talk to rich people and/or someone who knows how to save: you know the saying about how you ll never get good at tennis if you play against people on the same level? Same applies to saving! So, next time you re waiting for the kettle to boil in the tea room, ask your work colleague how great is money? and gauge their

101 Border Mail, Albury-Wodonga Author: Riley-Rose Harper Section: General News Article type : News Item Classification : Regional Audience : 13,519 Page: 14 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 2,250 Words: 792 Item ID: Page 2 of 3 response. Great conversation starter and you might learn something like I dunno... the stock market \_( )_/ Money is daunting and can be overwhelming, and that s why I pretty much covered my ears and shouted LALALALA to anyone who ever tried to talk to me about saving. Now that I ve made modest attempts to at least start figuring it out, I wish I had done it sooner. They say money can t buy you happiness, but it does feel good to have a civil relationship with it, and not be so crippled with anxiety checking your bank account balance. Happy spending! Saving! Riley-Rose Harper can be heard on Hit from 6-9am on weekdays. spending all my money, Iwasdoingitthewrong wayaround;iwas then writing out what Ispentiton,andthen getting under the table to cryinthefoetalposition.

102 Border Mail, Albury-Wodonga Author: Riley-Rose Harper Section: General News Article type : News Item Classification : Regional Audience : 13,519 Page: 14 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 2,250 Words: 792 Item ID: Page 3 of 3 ROOKIE ERROR: A budget is designed to project your expenses for a month not record how much you spend. Set yourself a monthly targetandsticktoit.theaimistobeconsciousofhowmuchyouspendandlookforsavingswhereyoucan.

103 Border Mail, Albury-Wodonga Section: Letters Article type : Letter Classification : Regional Audience : 13,519 Page: 15 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 513 Words: 380 Item ID: Page 1 of 1 LETTERS TO THE EDITOR LEARN FAIR GO FROM HISTORY The book, Hell Ship by Michael Veitch, is the true story of a big sailing ship, the Ticonderoga, which was acquired by the English government to transport poor people to the colonies. In August 1852, 800 passengers and crew were crammed in and set sail from Liverpool headed for Melbourne. To save time the route chosen was via the Atlantic Ocean, around the bottom of South America and then to Bass Strait and Melbourne. There were no stops along the way to take on fresh food or water. Stores had been designed to last for the 12 week trip. The British government felt compelled to get rid of the poor in what looked like a humane option, transportation to the colonies. More public land had been fenced off and new farming methods to take advantage of the sheep trade, had forced those with less resources to scratch a living on the very fringes of the British Isles. Many of these people, spoke only Gaelic, not English, were dirt poor and illiterate. They were told that by accepting a place on the ship, they had a hope of starting a new life in Australia and some did but the deprivation, disease and death on board caused the ship to fly the yellow flag and unload dying passengers onto the beach at Point Nepean where a Quarantine Station was established. At present, while the politicians play silly games in Canberra, we have hundreds of thousands homeless and nearly as many who cannot find a job although the retirement age is rising to 67 years or even 70. We are told that older people who lose their job due to automation, restructuring of the workforce, ill health and government policies, can apply for a disability pension (we already know that Centrelink is bogged down). Apparently after a lifetime of hard work and paying tax, many will be able to apply for Newstart. What sort of an insult is that? Our superannuation scheme was the big hope for many, but even much of that has been plundered by greedy financial institutions. We need government leaders who can learn from history and create a fair go for all, even those on the fringes. Ann Brennan, West Albury

104 Queensland Times, Ipswich QLD Section: General News Article type : News Item Classification : Regional Audience : 6,256 Page: 20 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 616 Words: 874 Item ID: Page 1 of 2 Power of share dividends It s the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. The power of dividends to supercharge the performance of listed shares (or cushion them in a downturn) is always underestimated as we tend to focus only on share-price movement. We often forget the dividend return. Since January 2004, the indexed share-price return of stocks in the All Ordinaries Index is around 90 per cent. But the total return (shareprice movement plus dividends) is 255 per cent that s the power of dividends. BIG RETURNS Studies in the US show that over a year, 80 per cent of a share s return comes from fluctuations in the share price. But over a five-year investment horizon, 80 per cent of a share s return comes from dividend yield and dividend growth. With many top 200 companies paying a dividend yield of 5-7 per cent, add the impact of franking credits and that return can jump to an impressive 9 per cent. Fully franked dividends are those from companies that have paid the full rate of company tax on their profits. As a result, the share of profits they pay shareholders as a dividend comes with a tax credit equal to the amount of company tax which has been paid to avoid double taxation. For example, the major banks pay the full 30 per cent company tax on profits so their shareholders receive a dividend with a 30c-in-thedollar tax credit. If a shareholder s marginal tax rate is less than 30 per cent, then that dividend is tax-free. The four major banks all have fully franked dividend yields over 6 per cent, and we bet they don t offer that sort of tax-advantaged income return through any of their banking products to customers. They are attractive returns and a powerful boost to investor returns, but it must be acknowledged that dividend yields are a reflection of not only the share of profits a company pays out but also its share price. As dividends are fixed as a dollar amount twice a year, the percentage dividend yield will go up if the dividend payout stays the same, while the share price goes down. So, an investor has to balance up the current attractive dividend yield with the prospects of the individual companies. Is a low share price because the company is in a prolonged slump and may not be able to maintain its dividend payout? Or is it a short-term downturn and the company is strong enough to bounce and maintain its dividend? If, in consultation with your broker or financial planner, it s the latter reason, then investing in strong blue-chip stocks with good yields can be attractive. Financial services giant AMP is an example of this. In April, its share price was as high as $5.47, while today, it s down around $3 because of the hammering it received from the banking royal commission. That plunge in share price has seen the AMP dividend yield rise to 6.25 per cent. A similar situation, although not to the same extent, has occurred across all the major banking shares as investors nervously wait for the impact of potential regulatory changes. Westpac has a 6.7 per cent dividend yield, NAB 7.2 per cent, CBA 6.5 per cent and ANZ 5.7 per cent all fully franked. Can the banks bounce with profits and dividends unharmed or will they be less profitable from any proposed changes and have to pare dividends? It s all a question of balance. A good dividend yield from a company producing strong cash flows can provide not only a welcome income stream for investors but ensure a buffer to a falling share price. LOOK AROUND The key is to be selective and look for a strong dividend yield, dividend growth and good cash flow to ensure that dividend can be maintained. Brokers consistently have CSR, Telstra, AGL, Wesfarmers and WAM in their lists of stocks paying good dividends. Not only do strong dividends make sense to supercharge or cushion share price performance, they have become increasingly important for investors looking for income returns to pay bills. After last week s decision from the Reserve Bank to keep official interest rates on hold again, many analysts are predicting the next rise in rates will not be until the middle of next year, with some even saying it s more likely in Of course, banks have been increasing home-loan interest rates out of cycle but they generally haven t been lifting savingsortermdepositrates. So, a 6-7 per cent fully franked dividend looks incredibly attractive in a low-interest rate, low-inflation environment.

105 Queensland Times, Ipswich QLD Section: General News Article type : News Item Classification : Regional Audience : 6,256 Page: 20 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 616 Words: 874 Item ID: Page 2 of 2 As we ve said, though, you need to get professional investment advice to build the right income investment portfolio for you. A mixture of dividends, income hybrids and bonds can offer good returns.

106 West Australian, Perth Section: Your Money Article type : News Item Classification : Capital City Daily Audience : 147,676 Page: 2 Printed Size: cm² Market: WA Country: Australia ASR: AUD 12,062 Words: 723 Item ID: Page 1 of 3 TAX RATES 0 to $18,200 Nil $18,201 $37, for each $1 over $18,200 $37,001 $90,000 $3572 plus 32.5 for each $1 over $37,000 $90,001 $180,000 $20,797 plus 37 for each $1 over $90,000 $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 Age Can I contribute? 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) CONCESSIONAL CONTRIBUTION LIMIT $25,000 each financial year NON-CONCESSIONAL CONTRIBUTION LIMIT $100,000 each financial year $300,000 over three years if triggering bring-forward rule AGE PENSION ASSETS TEST Cuts age pension $3 a fortnight for every $1000 above threshold Test threshold Pension cuts out Single homeowner $258,500 $564,000 Single non-homeowner $465,500 $771,000 Couple homeowners $387,500 $848,000 Couple non-homeowers $594,500 $1,055,000 HOW MUCH FORTNIGHTLY PENSION YOU GET SINGLE HOMEOWNER Total assessable assets Including $10,000 of non-financial assets Including $20,000 of non-financial assets Including $50,000 of non-financial assets $170,000 or $ $ $ less $180,000 $ $ $ $190,000 $ $ $ $200,000 $ $ $ $210,000 $ $ $ $220,000 $ $ $ $230,000 $ $ $ $240,000 $ $ $ $250,000 $ $ $ $260,000 $ $ $ $270,000 $ $ $ $280,000 $ $ $ $290,000 $ $ $ $300,000 $ $ $ $325,000 $ $ $ $350,000 $ $ $ $375,000 $ $ $ $400,000 $ $ $ $425,000 $ $ $ $450,000 $ $ $ $475,000 $ $ $ $500,000 $ $ $ $525,000 $ $ $ $550,000 $50.40 $50.40 $50.40 $564,000 Nil Nil Nil ACCOUNT-BASED PENSION MINIMUM DRAWDOWN Under 65: 4% 85-89: 9% Drawdown percentage of July : 5% 90-94%: 11% account balance 75-79%: 6% 95 plus: 14% (or pro rata if 80-84%: 7% started during year)

107 West Australian, Perth Section: Your Money Article type : News Item Classification : Capital City Daily Audience : 147,676 Page: 2 Printed Size: cm² Market: WA Country: Australia ASR: AUD 12,062 Words: 723 Item ID: Page 2 of 3 SUPERANNUATION PRESERVATION AGES Born before July 1, July 1, 1962-June 30, July 1, 1960-June 30, July 1, 1963-June 30, July 1, 1961-June 30, After June 30, AGE PENSION INCOME TEST 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 COUPLE HOMEOWNERS Total assessable assets Including $20,000 of non-financial assets Including $50,000 of non-financial assets Including $75,000 of non-financial assets $300,000 or $ $1, $1, less $310,000 $1, $1, $1, $320,000 $1, $1, $1, $330,000 $1, $1, $1, $340,000 $1, $1, $1, $350,000 $1, $1, $1, $360,000 $1, $1, $1, $370,000 $1, $1, $1, $380,000 $1, $1, $1, $390,000 $1, $1, $1, $400,000 $1, $1, $1, $425,000 $1, $1, $1, $450,000 $1, $1, $1, $475,000 $1, $1, $1, $500,000 $1, $1, $1, $525,000 $ $ $ $550,000 $ $ $ $600,000 $ $ $ $650,000 $ $ $ $700,000 $ $ $ $750,000 $ $ $ $800,000 $ $ $ $825,000 $76.00 $76.00 $76.00 $848,000 Nil Nil Nil

108 West Australian, Perth Section: Your Money Article type : News Item Classification : Capital City Daily Audience : 147,676 Page: 2 Printed Size: cm² Market: WA Country: Australia ASR: AUD 12,062 Words: 723 Item ID: Page 3 of 3 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. Total assessable assets includes financial and non-financial assets subject to Centrelink means testing. Financial assets include super, bank accounts, shares and managed investments. Non-financial assets include cars, furniture, sporting gear and artwork. Income test generally covers only financial assets. Assets test includes both financial and non-financial assets.

109 Australian Financial Review, Australia Author: Adele Ferguson Section: General News Article type : News Item Classification : National Audience : 44,635 Page: 44 Printed Size: cm² Market: National Country: Australia ASR: AUD 12,318 Words: 1309 Item ID: Page 1 of 2 Adele Feiguso aferguson@fairfaxmedia.com.au; Twitter:@AdeleJerguson I Monday 8 October 2018 Bank compo schemes need scrutiny Deliberately delaying compensation payouts, strategising ways to reduce remediation bills, using members' money to pay for refunds and ignoring requests from the regulator to pay up are just some of the ways financial institutions have been caught doubling down on poor behaviour. It has prompted calls in some quarters for an independent oversight of remediation programs as well as the introduction of a compensation scheme of last resort for those who fall through the cracks when a licensee closes or the professional indemnity insurance cover is inadequate. Remediation is included in the royal commission's terms of reference and to date hasn't had much airplay. It will likely be raised in the final round of hearings of chief executives next month. External dispute resolution (EDR) bodies also need to be scrutinised. Given the weight of money involved - at least $1 billion remediation in the fees for no services scandal, hundreds of millions of dollars in dodgy financial advice, misleading advertising, shoddy life insurance clauses and irresponsible lending - and the need to restore trust, the right remediation programs and EDRs is paramount In July, AMP told the market it would put aside $290 million for a "potential advice remediation" fund. Late last month Westpac estimated it would cost $235 million to refund customers for bad service and advice to half its adviser pool. Others are also trying to crunch the numbers. The brutal reality is most remediation schemes lack transparency, lack proper scrutiny, vary from institution to institution and drag on too long. Earlier this month the Australian Securities and Investments Commission (ASIC) released a damning report on breach reporting and remediation. It looked at institutions including AMP, NAB, CBA, Westpac, ANZ and Macquarie, and found it takes an average 2145 days - or almost six years - between a breach and the first compo payout It estimated the breaches amounted to a $500 million loss to 5 million consumers and that the institutions considered remediation a "distraction from core business". Given Commissioner Kenneth Hayne concluded in his interim findings from the banking royal commission that greed and "the pursuit of short-term profit at the expense of basic standards of honesty" is at the heart of financial misconduct, remediation isn't any different This culture of greed has influenced the institutions' attitude towards regulators, how they remediate customers and interact with external dispute resolution bodies. In the sixth round of hearing into life insurance, the public was given an insight into the contemptuous way the Commonwealth Bank viewed the external dispute resolution body Financial Ombudsman Service (FOS). CBA's life insurance arm Commlnsure was found to have misled FOS in order to deny the payout of a trauma insurance claim. It also repeatedly challenged FOS's jurisdiction, ignored deadlines and was "adversarial". It prompted council assisting Rowena Orr, QC, to say "by sending this , the group customer relations officer misled the Financial Ombudsman Service into thinking that Commlnsure did not have a medical report on whether the insured would satisfy the updated heart attack definition. Do you accept that?" Commlnsure boss Helen Troup could only answer "yes". On November 1, a new external dispute resolution body, the Australian Financial Complaints Authority (AFCA), will open for business. It is the amalgamation of three separate bodies, FOS, the Superannuation Complaints Tribunal (SCT) and the Credit and Investments Ombudsman (CIO), and comes on the of the Ramsay Review into EDRs for the financial services sector. AFCA was one of a number of initiatives from the Coalition in an attempt to rebuild trust in the sector and stave off a royal commission. The new mega ombudsman is superior in that it is a one-stop-shop and lifts the cap on the size of complaints it can investigate to a monetary limit of $1 million and compensation of up to $500,000. Previously, the limit under FOS was $500,000 and a maximum payout of just over $300,000, which wasn't enough. There are no caps on superannuation complaints or compensation. It also addresses other issues such as resourcing, which resulted in a log of complaints, particularly in the SCT. But protracted delays aren't just about funding. According to barrister Noel Davis, who was a member of the SCT for 13 years and completed his last case a few months ago, cases could drag on for three to four years due to long delays in an insurer and trustee's decision-making, and delays in the tribunal. He made the point that in disability claims, the complainant often can no longer work and is, therefore, without income except for social security payments, while trustees and insurers drag their heels. He said in cases were insurers are allowed to take so long to make a decision, often asking for more and more medical evidence, trustees are failing in their duty to act in the best interests of the members. "The tribunal does not have the same power that a court has to award damages against trustees and insurers who delay making decisions," he said. "It cannot,

110 Australian Financial Review, Australia Author: Adele Ferguson Section: General News Article type : News Item Classification : National Audience : 44,635 Page: 44 Printed Size: cm² Market: National Country: Australia ASR: AUD 12,318 Words: 1309 Item ID: Page 2 of 2 therefore, do what the NSW Supreme Court did in one case of an extensive delay, where it ordered a trustee to pay damages of $290,000, in addition to the disability benefit payable, because of a delay of more than three years in making a decision on the disability claim." Davis makes an important point the royal commission needs to consider. It should also consider recommending naming and shaming institutions. Davis said in his final decision as a member of the SCT, he directed a trustee to refund feesof5percentthat had been debited to each contribution and lump sum rollover the member had made, where the 5 per cent fees were paid as commissions to financial planners the member hadn't heard of. He said because of evidence given in the royal commission subsequent to his decision, in relation to commissions paid to financial planners who provided no services, it was likely there will be more of those types of complaints to AFCA. But he warned because of the legal issues involved, it would test the abilities of the EDR to determine the outcome. Then there is the thorny issue of a compensation scheme of last resort Professor Ian Ramsay was asked by the government to review and make recommendations for such a scheme, including who should fund it and whether it should be retrospective. That report was completed more than a year ago but its recommendations have been kept secret and the report itself has been gathering dust in the relevant minister's draw. A broad and retrospective scheme could cost the industry billions of dollars. Modelling from Cadence Economics, commissioned by the Financial Services Council, estimated it would cost the industry $105 million a year if it was limited to bad financial advice and $310 million a year if it included product failures. The FSC argued the scheme wouldn't fix the problem of smaller firms being undercapitalised and under-insured. Undercapitalisation and under-insurance is an important issue that the royal commission will need to address and the government will need to legislate, particularly as more "independent" advisers set up shop. A scheme of last resort also has a place in an era of financial institution rehabilitation. As consumer advocate group Choice wrote in its submission to the royal commission: "We maintain that in a properly functioning financial services sector the focus should be on harm prevention and empowering regulators as a first resort However, when the system fails the sector as a whole should be responsible, through the funding of a last-resort compensation scheme, to ensure consumers are not left financially ruined and without remedy." This culture of greed has influenced the institutions' attitude towards regulators. ASIC released a damning report this month that found it takes an average 2145 days - or almost six years - between a breach and the first compo payout, ILLUSTRATION: TANYA LAKE

111 Illawarra Mercury, Wollongong NSW Section: Letters Article type : Letter Classification : Regional Audience : 10,806 Page: 13 Printed Size: 71.00cm² Market: NSW Country: Australia ASR: AUD 591 Words: 157 Item ID: Page 1 of 1 LETTERS OUT OF CONTROL Since day one of the royal commission into banking the commission has uncovered a vast amount of evidence of widespread criminality by big banks. Here is a few things that have been uncovered so far, The Commonwealth Bank charging deceased people fees for over 10 years, also charging millions in fees and they still haven't paid them all. Westpac refused to stop pushing people into dodgy products,saying it would put them at a commercial disadvantage. AMP stole fees from customers for no service, lied to the regulator, trapped people in dodgy investments and charged them up to $25,000 per month for the privilege. NAB handed people cash to sign others up people to bad deals. ANZ and NAB manipulated the banking bills swap rate for massive profits. These big banks are out of control and i wonder who the parties were who voted to stop this commission. Matty Ryan, Fairy Meadow

112 Gold Coast Bulletin, Gold Coast QLD Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 21,468 Page: 19 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 5,773 Words: 874 Item ID: Page 1 of 3 David & Libby Power of share dividends It s the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. The power of dividends to supercharge the performance of listed shares (or cushion them in a downturn) is always underestimated as we tend to focus only on share-price movement. We often forget the dividend return. Since January 2004, the indexed share-price return of stocks in the All Ordinaries Index is around 90 per cent. But the total return (shareprice movement plus dividends) is 255 per cent that s the power of dividends. BIG RETURNS Studies in the US show that over a year, 80 per cent of a share s return comes from fluctuations in the share price. But over a five-year investment horizon, 80 per cent of a share s return comes from dividend yield and dividend growth. With many top 200 companies paying a dividend yield of 5-7 per cent, add the impact of franking credits and that return can jump to an impressive 9 per cent. Fully franked dividends are those from companies that have paid the full rate of company tax on their profits. As a result, the share of profits they pay shareholders as a dividend comes with a tax credit equal to the amount of company tax which has been paid to avoid double taxation. For example, the major banks pay the full 30 per cent company tax on profits so their shareholders receive a dividend with a 30c-in-thedollar tax credit. If a shareholder s marginal tax rate is less than 30 per cent, then that dividend is tax-free. The four major banks all have fully franked dividend yields over 6 per cent, and we bet they don t offer that sort of tax-advantaged income return through any of their banking products to customers. They are attractive returns and a powerful boost to investor returns, but it must be acknowledged that dividend yields are a reflection of not only the share of profits a company pays out but also its share price. As dividends are fixed as a dollar amount twice a year, the percentage dividend yield will go up if the dividend payout stays the same, while the share price goes down. So, an investor has to balance up the current attractive dividend yield with the prospects of the individual companies. Is a low share price because the company is in a prolonged slump and may not be able to maintain its dividend payout? Or is it a short-term downturn and the company is strong enough to bounce and maintain its dividend? If, in consultation with your broker or financial planner, it s the latter reason, then investing in strong blue-chip stocks with good yields can be attractive. Financial services giant AMP is an example of this. In April, its share price was

113 Gold Coast Bulletin, Gold Coast QLD Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 21,468 Page: 19 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 5,773 Words: 874 Item ID: Page 2 of 3 as high as $5.47, while today, it s down around $3 because of the hammering it received from the banking royal commission. That plunge in share price has seen the AMP dividend yield rise to 6.25 per cent. A similar situation, although not to the same extent, has occurred across all the major banking shares as investors nervously wait for the impact of potential regulatory changes. Westpac has a 6.7 per cent dividend yield, NAB 7.2 per cent, CBA 6.5 per cent and ANZ 5.7 per cent all fully franked. Can the banks bounce with profits and dividends unharmed or will they be less profitable from any proposed changes and have to pare dividends? It s all a question of balance. A good dividend yield from a company producing strong cash flows can provide not only a welcome income stream for investors but ensure a buffer to a falling share price. next rise in rates will not be until the middle of next year, with some even saying it s more likely in Of course, banks have been increasing home-loan interest rates out of cycle but they generally haven t been lifting savings or term deposit rates. So, a 6-7 per cent fully franked dividend looks incredibly attractive in a low-interest rate, low-inflation environment. As we ve said, though, you need to get professional investment advice to build the right income investment portfolio for you. A mixture of dividends, income hybrids and bonds can offer good returns. LOOK AROUND The key is to be selective and look for a strong dividend yield, dividend growth and good cash flow to ensure that dividend can be maintained. Brokers consistently have CSR, Telstra, AGL, Wesfarmers and WAM in their lists of stocks paying good dividends. Not only do strong dividends make sense to supercharge or cushion share price performance, they have become increasingly important for investors looking for income returns to pay bills. After last week s decision from the Reserve Bank to keep official interest rates on hold again, many analysts are predicting the

114 Gold Coast Bulletin, Gold Coast QLD Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 21,468 Page: 19 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 5,773 Words: 874 Item ID: Page 3 of 3

115 Morning Bulletin, Rockhampton QLD Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 9,376 Page: 19 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 878 Words: 874 Item ID: Page 1 of 3 Power of share dividends It s the bonus that many investors forget about but are still more than happy to accept THEMORNINGBULLETIN.COM.AU MONDAY, OCTOBER 8, HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. The power of dividends to supercharge the performance of listed shares (or cushion them in a downturn) is always underestimated as we tend to focus only on share-price movement. We often forget the dividend return. Since January 2004, the indexed share-price return of stocks in the All Ordinaries Index is around 90 per cent. But the total return (shareprice movement plus dividends) is 255 per cent that s the power of dividends. BIG RETURNS Studies in the US show that over a year, 80 per cent of a share s return comes from fluctuations in the share price. But over a five-year investment horizon, 80 per cent of a share s return comes from dividend yield and dividend growth. With many top 200 companies paying a dividend yield of 5-7 per cent, add the impact of franking credits and that return can jump to an impressive 9 per cent. Fully franked dividends are those from companies that have paid the full rate of company tax on their profits. As a result, the share of profits they pay shareholders as a dividend comes with a tax credit equal to the amount of company tax which has been paid to avoid double taxation. For example, the major banks pay the full 30 per cent company tax on profits so their shareholders receive a dividend with a 30c-in-thedollar tax credit. If a shareholder s marginal tax rate is less than 30 per cent, then that dividend is tax-free. The four major banks all have fully franked dividend yields over 6 per cent, and we bet they don t offer that sort of tax-advantaged income return through any of their banking products to customers. They are attractive returns and a powerful boost to investor returns, but it must be acknowledged that dividend yields are a reflection of not only the share of profits a company pays out but also its share price. As dividends are fixed as a dollar amount twice a year, the percentage dividend yield will go up if the dividend payout stays the same, while the share price goes down. So, an investor has to balance up the current attractive dividend yield with the prospects of the individual companies. Is a low share price because the company is in a prolonged slump and may not be able to maintain its dividend payout? Or is it a short-term downturn and the company is strong enough to bounce and maintain its dividend? If, in consultation with your broker or financial planner, it s the latter reason, then investing in strong blue-chip stocks with good yields can be attractive. Financial services giant AMP is an example of this. In April, its share price was as high as $5.47, while today, it s down around $3 because of the hammering it received from the banking royal commission. That plunge in share price has seen the AMP dividend yield rise to 6.25 per cent. A similar situation, although not to the same extent, has occurred across all the major banking shares as investors nervously wait for the impact of potential regulatory changes. Westpac has a 6.7 per cent dividend yield, NAB 7.2 per cent, CBA 6.5 per cent and ANZ 5.7 per cent all fully franked.

116 Morning Bulletin, Rockhampton QLD Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 9,376 Page: 19 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 878 Words: 874 Item ID: Page 2 of 3 Can the banks bounce with profits and dividends unharmed or will they be less profitable from any proposed changes and have to pare dividends? It s all a question of balance. A good dividend yield from a company producing strong cash flows can provide not only a welcome income stream for investors but ensure a buffer to a falling share price. portfolio for you. A mixture of dividends, income hybrids and bonds can offer good returns. LOOK AROUND The key is to be selective and look for a strong dividend yield, dividend growth and good cash flow to ensure that dividend can be maintained. Brokers consistently have CSR, Telstra, AGL, Wesfarmers and WAM in their lists of stocks paying good dividends. Not only do strong dividends make sense to supercharge or cushion share price performance, they have become increasingly important for investors looking for income returns to pay bills. After last week s decision from the Reserve Bank to keep official interest rates on hold again, many analysts are predicting the next rise in rates will not be until the middle of next year, with some even saying it s more likely in Of course, banks have been increasing home-loan interest rates out of cycle but they generally haven t been lifting savingsortermdepositrates. So, a 6-7 per cent fully franked dividend looks incredibly attractive in a low-interest rate, low-inflation environment. As we ve said, though, you need to get professional investment advice to build the right income investment

117 Morning Bulletin, Rockhampton QLD Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 9,376 Page: 19 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 878 Words: 874 Item ID: Page 3 of 3

118 Cairns Post, Cairns Author: Tim McIntyre Section: General News Article type : News Item Classification : Regional Audience : 13,896 Page: 29 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 2,543 Words: 513 Item ID: Page 1 of 2 OPTIONS: Anthony and Pritema Bivon, seen below on their wedding day, are among the borrowers turning to non-bank financial institutions to fund projects such as home renovations. Pictures: Getty Images and MMG Photo + Cinema From renovations and weddings to cars and holidays, new loan options are emerging, writes TIM McINTYRE BORROWERS are turning away from traditional banks when applying for personal loans and, instead, are flocking to digital, mobile-centric platforms and peer-to-peer lenders. A CommSec Economic Insights report shows loans by non-bank financial institutions were up 10.3 per cent for the year to August. According to CommSec chief economist Craig James, this was an indication that banks were engaging in more considered lending, and borrowers had other options. Banks are facing greater competition from non-banks, he said. At the same time, bank deposits are only lifting at a 2.5 per cent annual rate, putting greater reliance on external funding. It is clearly a competitive and challenging environment for financial institutions. Peer-to-peer lender SocietyOne has become the first marketplace lender of its kind in Australia to hit $500 million in loans to 20,000 borrowers and is on track to reach $1 billion in Society One CEO Mark Jones said the influx was largely about convenience for the next generation of borrowers. Millennial consumers have been increasingly demanding a fairer, faster, easier and more personalised mobile-centric solution from almost every brand they transact with, he said. Think Uber, Airbnb and the rest of the sharing economy. Financial services really are no different. Mr Jones said the recent spotlight on cases of bad banking behaviour had also encouraged borrowers to turn away from major lenders. The Royal Commission has undoubtedly helped remind customers to check they are getting a good deal from their bank, he said. It never hurts to get a second opinion. Ratesetter Australia is another peer-to-peer lender that has seen a spike in activity,

119 Cairns Post, Cairns Author: Tim McIntyre Section: General News Article type : News Item Classification : Regional Audience : 13,896 Page: 29 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 2,543 Words: 513 Item ID: Page 2 of 2 financing and home renovations among top wish list items for borrowers. Ratesetter CEO Daniel Foggo said the digital model was simpler, faster and often more affordable. The take-up of digital alternative-lending options has been steadily rising over the past several years in Australia, as consumers become more confident in fintechs, he said. The growth in the number of alternative lenders is helping to drive this. Consumers now have more choice and know they can get better value, rather than being stuck with the same options they ve always used. When Anthony Bivon wanted to propose to his girlfriend, Pritema, and renovate his property for their future, he was disappointed with his options. After approaching my bank, which I was a loyal customer of for 15 years, plus several phone calls and frustrating s, I wasn t able to (get what I needed), he said. We couldn t seem to get any support or a decent interest rate with our bank. After searching online for alternatives, Mr Bivon chose a personal loan with Society One, which helped him achieve his goals. And I married the woman of my dreams in November 2017, he said.

120 Cairns Post, Cairns Author: Libby David Koch Section: General News Article type : News Item Classification : Regional Audience : 13,896 Page: 27 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 3,902 Words: 874 Item ID: Page 1 of 2 David & Libby Power of share dividends It s the bonus that many investors forget about but are still more than happy to accept HUNDREDS of thousands of Australians have received a nice financial surprise over the past three weeks as $28.5 billion worth of dividends has been paid by our top 200 stock exchange-listed companies. Around 90 per cent of the ASX 200 companies elected to pay a dividend out of profits from the past financial year. It is not only an enormous amount of money but a critical performance buffer for your listed investments. The power of dividends to supercharge the performance of listed shares (or cushion them in a downturn) is always underestimated as we tend to focus only on share-price movement. We often forget the dividend return. Since January 2004, the indexed share-price return of stocks in the All Ordinaries Index is around 90 per cent. But the total return (shareprice movement plus dividends) is 255 per cent that s the power of dividends. BIG RETURNS Studies in the US show that over a year, 80 per cent of a share s return comes from fluctuations in the share price. But over a five-year investment horizon, 80 per cent of a share s return comes from dividend yield and dividend growth. With many top 200 companies paying a dividend yield of 5-7 per cent, add the impact of franking credits and that return can jump to an impressive 9 per cent. Fully franked dividends are those from companies that have paid the full rate of company tax on their profits. As a result, the share of profits they pay shareholders as a dividend comes with a tax credit equal to the amount of company tax which has been paid to avoid double taxation. For example, the major banks pay the full 30 per cent company tax on profits so their shareholders receive a dividend with a 30c-in-thedollar tax credit. If a shareholder s marginal tax rate is less than 30 per cent, then that dividend is tax-free. The four major banks all have fully franked dividend yields over 6 per cent, and we bet they don t offer that sort of tax-advantaged income return through any of their banking products to customers. They are attractive returns and a powerful boost to investor returns, but it must be acknowledged that dividend yields are a reflection of not only the share of profits a company pays out but also its share price. As dividends are fixed as a dollar amount twice a year, the percentage dividend yield will go up if the dividend payout stays the same, while the share price goes down. So, an investor has to balance up the current attractive dividend yield with the prospects of the individual companies. Is a low share price because the company is in a prolonged slump and may not be able to maintain its dividend payout? Or is it a short-term downturn and the company is strong enough to bounce and maintain its dividend? If, in consultation with your broker or financial planner, it s the latter reason, then investing in strong blue-chip stocks with good yields can be attractive. Financial services giant AMP is an example of this. In April, its share price was as high as $5.47, while today, it s down around $3 because of the hammering it received from the banking royal commission. That plunge in share price has seen the AMP dividend yield rise to 6.25 per cent. A similar situation, although not to the same extent, has occurred across all the major banking shares as investors nervously wait for the impact of potential regulatory changes. Westpac has a 6.7 per cent dividend yield, NAB 7.2 per cent, CBA 6.5 per cent and ANZ 5.7 per cent all fully franked. Can the banks bounce with profits and dividends unharmed or will they be less profitable from any proposed dividend looks incredibly attractive in a low-interest rate, low-inflation environment. As we ve said, though, you need to get professional investment advice to build the right income investment portfolio for you. A mixture of dividends, income hybrids and bonds can offer good returns.