Well done, Australia, our hard work has paid off. Almost all restrictions and lockdown rules have been eased. Fourteen months ago, amid our first lockdown we only had four reasons to leave our homes and only for one hour a day. Fast forward to today, Australia compared to the rest of the world has achieved the unimaginable. Our restaurants are bustling, the comedy festival is in full swing, theatre and shows are returning, we can travel interstate and the MCG recorded the biggest attendance at a global sporting event since the start of the COVID-19 pandemic.
We hosted the February market update webinar with Drummond Capital Partners and received great feedback. Thank you to all those who attended. We endeavour to host more insightful events in the near future both online and in person.
We do hope you enjoy this issue of Affinity Insights and we welcome any feedback or suggestions for future topics.
From Rodney M. DeGabriele and Tony Vikram
The budget position has improved dramatically from the forecasts delivered in October 2020. The deficit for 2020-21 is now expected to be $161 billion, down from $213.7 billion. This reduction is largely due to a much stronger rebound in employment. Revenue is also receiving a boost from strong economic recoveries from our trade partners and higher than expected resource prices.
Recent remarks from the Treasurer Josh Frydenberg, have made it clear that there are still downside risks to the economy, and he expects the Government to continue providing a significant amount of support.
The unemployment rate is expected to fall below 5% by late 2022 and reach 4.75% by 2023. Having said that, the Government is still conscious of the impact of COVID-19 and is investing $1.9b on a vaccination strategy and $1.5b to extend the range of COVID-19 health responses.
To continue reading, please click here.
We are delighted to announce that Alison Warner will be joining Rodney DeGabriele and Tony Vikram in an advisory capacity commencing 1 July 2021.
Alison comes with a wealth of experience, working in the financial services industry for over 15 years.
This time, four years ago, Alison became a part of the Affinity team and has since proven herself to be integral to our clients and business. Alison’s commitment and dedication has been nothing shy of excellent and will continue to support existing relationships within our practice.
Congratulations Alison! We are thrilled to be sharing this journey with you.
Tax time is a prime time for cybercriminals trying to get their hands on your money and personal details. We have compiled a list of simple measures you can do to apply good cyber security practices and avoid tax time scams.
Most people expect some form of interaction with the Australian Taxation Office (ATO) during tax time, and scammers take advantage of this by pretending to be tax agents, law enforcement officers, the ATO and from myGov to try and steal personal and financial information from unsuspecting people.
Your personal information is valuable so it is important to stop and think before sharing it with anyone, no matter how convincing the person or message may sound.
In this update, we dive into the real estate and infrastructure (RE&I) asset classes as a prelude to the mid-year Strategic Asset Allocation Review. Both were beat up in the Covid drawdown and remain underwater. Does their poor performance reflect structural impairment in a post Covid world or a decent buying opportunity relative to other listed equity markets? To make this determination, we assess the fundamental drivers of the longer term returns of RE&I and think about whether some of the underlying companies are holding assets which have been stranded by either the acceleration of long term thematics or due to climate change policy.
Click here to continue reading
“Generation wealth” is wealth that is passed down from one generation to the next. You may also hear this called family wealth or legacy wealth. This wealth can come in many forms such as real estate assets, stock market investments, or a financial education to carry forward into the future.
Whether you have children, grandchildren, nieces, or nephews; or decide to leave part of your legacy to a charity or foundation, you may start to think about how their financial futures will play out. Imagine how differently things could turn out if you take the time to educate them on personal finance and set up vehicles to add security to their financial future now.
To continue reading, please click here.
Rodney recently contributed to two articles – Money & Life magazine: sharing his insights in become a self-licenced practice and the benefits it brings to the business and our clients; and the Australian Financial Review: sharing his knowledge on the recent super changes and how there will be opportunities to enjoy more tax-free retirement income.
To read either article, please click on the links below
Bitcoin has been a global hot topic over the past couple of years. More recently making headlines for prices surging above $60,000 USD. While it is fairly easy to describe what bitcoin is not, it is much harder to describe what bitcoin actually is. In this summary we will provide some information to help you assess the risks and returns of this new craze.
Bitcoin is not a currency.
Bitcoin is a scarcity asset.
Bitcoin is the new tax haven
Bitcoin’s energy consumption
With international boarders remaining closed for the foreseeable future, many Australians are looking at opportunities to travel domestically as all states have removed their strict boarder restrictions.
Asia, Europe or Central America was always so enticing when deciding on the next travel destination that we sometimes forget the picturesque landscape we have right on our doorstep. Take advantage of the current airline deals with flexible booking policies to any one of these destinations –
If being on an aircraft is still not for you, here are a list of local destinations to explore –
New South Wales