Dixon Advisory in the news

The latest news and articles from Dixon Advisory

Daryl Dixon and Dixon Advisory staff members regularly write articles for a number of publications including the The Canberra Times, the Sun-Herald, The Finanical Review and the Smart Investor. We will continually update these articles here for you to read.

Please read the disclaimer that applies to the information on these pages.

Latest News

Positive solutions to the negative gearing issue

The ongoing negative gearing policy debate mirrors the situation of Henry Lawson’s and Slim Dusty’s Middleton’s Rouseabout who ends up owning the station because he has no ideas. Hopefully the next Treasury leader will switch the debate to real budget crisis issues.

Further details | Daryl's Articles

Unsettling time for investors

As foreshadowed two weeks ago, the good times for superannuation fund and other share investors may have come to an end with sharemarkets around the world under selling pressure. It's too early to know whether this is a correction or possibly more likely an early warning of difficult times ahead.

Further details | Daryl's Articles

Gloss rubbing off share buybacks

Low-marginal-rate taxpayers, including pension funds and charities, have been disappointed by the results of the $1 billion Telstra share buyback announced this week. Unlike earlier off-market buybacks, including those by the major banks, BHP and RIO, the returns from participating in this latest buyback have been minimal.

As widely predicted, the return from selling into the buyback for a zero-rate taxpayer was only 3 percent after taking into account the value of the $2.27 per share franked dividend component of the final $4.60 per share buyback price. Worse still, except for holders of 1300 shares or fewer, there was a 70 percent scale-back of the number of shares accepted in the buyback.

In dollar terms, the buyback price including the value of the franking credits was $5.57 per share, only 17½c per share above the Telstra share price of $5.40 when the result was announced to the market.

Further details | Daryl's Articles

Why Luddites might be making a big comeback

Employment Work creation schemes risk being left behind by technology. But we still do not know where digital and robotic developments will take us.

BHP Billiton's plan to cut the cost of producing iron ore in Western Australia by 25 per cent while increasing output capacity by 65 million tonnes a year illustrates the disruptive potential of evolving technology.

The savings and the expansion will be largely underwritten by the introduction of driverless trucks, drills and trains.

Further details | In the Media

Investment needs to be encouraged

Long gone are the days when senior bureaucrats made and kept their decisions behind closed doors. Now we have jawboning and public attempts to influence commercial and investment decisions. Judging from recent statements, there's the desire to talk the dollar down further to as low as US80½c, and suggestions that there may be little downside risk to regulatory controls to reduce the rapid growth of investor borrowing.

Further details | Daryl's Articles

Super idea for home owners

Forty-five years ago, the US National Tax Journal published my article analysing the theory of the tax-deductibility of interest payments from the personal income tax base. Our two tax arrangements are like chalk and cheese.

Further details | Daryl's Articles

Support gathers to cap home loans

Bubble fears Central banks conquered inflation in the 1980s and have managed the recovery from the GFC. Now some want more tools to control excess borrowing.

Further details | In the Media