The ATO’s review of income tax returns show nine in 10 rental property owners are getting their return wrong. Property expense claims, as well as SMSF returns and crypto transactions, are all on the radar this year.
Demand for minerals needed for decarbonisation and the lower Australian dollar are driving increased M&A activity in Australia, and analysts say the trend is likely to pick up, with the availability of well-valued stocks adding appeal for would-be buyers.
While the move to tax superannuation balances above $3 million at a higher rate would affect only a handful of people at first, if the threshold is not indexed to inflation, future generations may be turned off from investing in their super, industry leaders say.
For the world to meet climate targets, the supply of battery-grade lithium will have to ramp up greatly, prompting expectations that the price will keep rising for years to come. And Australian companies with proven lithium deposits could do well as M&A in the sector stays hot, analysts say.
Analysts expect the bullish momentum for the safe-haven asset to continue amid sinking investor appetite for risk, with prices buoyed by an expected peak in US interest rates and a weakening US dollar.
The March quarter’s Selected Living Cost Indexes – which include mortgage costs, giving a fuller view of inflation’s real impact than the Consumer Price Index – show employee households and mortgage holders both saw record increases in their cost of living. And with rate hikes continuing to flow through the economy, more pain is on the horizon.
The average annual interest rate on banks’ one- and three- year term deposits has risen to 3.2 per cent from 0.25 per cent over the past year. With markets expecting the official cash rate to peak soon, savers looking to lock in attractive rates will find the best deals with smaller, newer banks, analysts say.
The market for exchange-traded products posted 5 per cent year-over-year growth in March, while listed investment companies continued to see assets under management fall, new ASX data shows. As rising interest rates and cost-of-living bite, though, the trend has begun to slow, with investors seeking safety in defensive ETFs.
While real estate investment trusts have been touted as risk investments, analysis say Australian REITs like Charter Hall and Dexus have solid fundamentals, with income underpinned by long leases to strong tenants.
Although more Australian companies are paying dividends in 2023, many have reduced payouts, with the year-to-date total slightly behind 2022’s figures, according to CommSec research. The big miners are leading the cuts, while energy producers are lifting dividends to reflect record high gas prices.
