Latest News from Newealth

11 Sep 2019

Disruptive Technology: Tech Trends

The 2019 Tech Trend Report has been published which identifies 315 emerging trends across 26 industries that are expected to enter the mainstream and disrupt business.

Key takeaways include-

  • Privacy is dead
  • VSO (voice search optimization) is the new SEO
  • The Big Nine- US G-MAFIA (Google, Microsoft, Amazon, Facebook, IBM, Apple) and China BAT (Baidu, Alibaba, Tencent)
  • PDRs (Personal Data Records) are coming
  • China continues to ascend and not just in artificial intelligence
  • Lawmakers around the world are not prepared to deal with new challenges that arise from emerging science and technology
  • Consolidation continues as a key theme for 2019

We are all truly ‘GEN-T’, the first human Transition Generation where machines capable of learning, deciding and creating will co-exist with humans.

Click to download report.

 

5 Sep 2019

$5.8 billion Current Account Surplus

The Current Account is essentially a measure of a country’s trade, the value of the goods and services it exports (income) versus the value of goods and services it imports (expenses).

A Current Account Surplus is good because income (exports) are higher than expenses (imports) while a Current Account Deficit is bad because expenses (imports) are higher than income (exports).

The exciting news is that Australia’s Current Account has for the first time since June 1975 changed from a deficit to posting a $5.8 billion surplus in the June 2019 quarter thanks to the huge exports of iron ore and coal followed by international education.

It took 44 years and 13 Federal Treasures to bring the Current Account Deficit back into a Current Account Surplus and let’s see how long it persists.

By comparison the United States Current Account has only been in deficit since the early 1990’s and is currently running at over US$500 billion (that is half a trillion dollars) which is bad because it is not possible to run expenses (imports) higher than income (exports) indefinitely.

Eventually, spending more than you earn must come to an end but it could still take decades or even a 100 years for this situation to be resolve provided that the United States can keep paying the interest on the trillions of dollars in debt that it is accumulating (current US Government debt US$21.4 trillion).

Click for chart.

Importantly, the key to remember is that when fear and panic take hold, that is when an investor is presented with the best opportunity to buy more quality assets at reasonable or better still discounted prices.

 

3 Sep 2019

Main Residence (your home)

We have attached a gentle reminder that that under the current taxation system, renting your main residence will result in a part loss of the capital gains tax free exception on your home for the period rented.

If you want to rent your main residence then you need detailed tax advice and we recommend you talk to your tax professional (Accountant) before using services such as Airbnb which shares its data with the Australian Taxation Office.

The cautionary message is that earning a rental income today (especially if only a small amount) could cost you much more in capital gains tax when you sell your main residence.

For investment properties and holidays homes it does not matter because they are always 100% liable for capital gains tax because they are not your main residence.

Key point is to talk to your tax professional (Accountant) first.

Click to read.

 

Share this archive
Top