Dixon Advisory in the news

The latest news and articles from Dixon Advisory

Daryl Dixon and Dixon Advisory staff members regularly write articles on self managed super funds (SMSFs) and financial issues 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

The party might be over

Recent gyrations in world sharemarkets aren't unexpected and follow the warnings of major super funds that future investment returns are likely to be lower than they've been for several years

Further details | Daryl's Articles

Compulsory super not the only answer

Millions of ordinary Australians will not necessarily benefit if our politicians accept the superannuation industry's latest campaign for a bipartisan agreement to increase the compulsory super rate from 9.5 per cent to 12 per cent of salary by 2022.

Further details | Daryl's Articles

Have you saved enough?

Controversy over whether or not an average couple needs $1million in super to retire comfortably misses the point that, for many, this is an impossible targe

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Reducing risks of borrowing

As the banking regulator APRA's recent attempts to slow the growth of investment property borrowing show, historically low interest rates and the easy availability of credit have increased the risks for both borrowers and lenders.

Further details | Daryl's Articles

A budget to retire?

As the dust settles on this year’s budget, it's clear that the government's financial plan includes some significant changes for anyone planning to retire.

Further details | On the Radio

Super sharing is a couple's best bet

 While the government has reaffirmed its 2013 election commitment not to change superannuation tax rules, Labor has foreshadowed super tax increases for higher income taxpayers and the Coalition may yet propose changes after it completes its review of the tax system.

Further details | Daryl's Articles

The IMF has never been as important, or as lost

The International Monetary Fund's role has morphed several times since its founding. Now it is in the driver's seat on Europe, confronting the vast challenge of stagnating and ageing developed economies.

Further details | In the Media

Gearing system showing its age

Tax breaks and grants to investors are distorting the property market. Reader feedback has revealed just how much unco-ordinated federal and state housing policies have increased the problems facing potential owner-occupiers in achieving home ownership.

Further details | Daryl's Articles

Time to rethink pensions

Many non-homeowner retirees are forced to draw on their capital to live. Our outdated social security system is weighted against retirees who don't own their own home.

Further details | Daryl's Articles

The Family Home, Pensions and the Assets test

Daryl addresses how governments facing an ageing population need to encourage people to use their real estate more effectively and encourage productive investment as we face rising unemployment, inadequate tax revenue and a economy that is slowing down.

Further details | On the Radio

Pressure on retirees

Deprived of good returns on safe investments, self-funded retirees are turning to risky investments that could lead to capital losses.

Further details | Daryl's Articles

Big threat facing your bank shares

Not unexpectedly, speculation arising from the Murray Financial System Inquiry about substantial increases in the capital reserve requirements for our banks has unsettled both domestic and overseas share investors.

Further details | Daryl's Articles

Beware the retirement risk zone

Understanding where investment risks are heightened is vital to protecting your superannuation. The term "retirement risk zone" was coined to refer to the blocks of time immediately before and after retirement.

Further details | In the Media

How to use your family ties to build assets

In building family wealth there are several long-established initiatives investors can take to find success. There are also some pathways that would make a lot of sense but just now our investment regulations block the way. Today I want to look at a range of ideas.

Further details | Daryl's Articles

Outlook not necessarily brighter

Forecasts are mixed.

While we can always live in hope, investors need to be aware that the recent sharp rebound in world sharemarkets does not necessarily mean that better times lie ahead. 

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

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

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.

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

Funds’ new DIY options welcome

Could the rush by industry super funds to offer DIY investment options to their members be a case of “if you can’t beat them, join them”? Whatever the answer, the latest extension of industry fund investment options to include ASX300-listed shares, selected exchange traded funds (ETFs) and term deposits is welcome news for investors wanting greater control over their retirement savings.
 
These new options introduce greater transparency into the assets owned by the individual investor compared with the ownership of the unitised managed fund options already on the approved product range. For example, by opting to purchase listed investment companies in the ASX300, they will be able both to access low management expense ratios and know what they have invested in.
 

Further details | Daryl's Articles

Gauging the risks with investments

Last week's decision to leave the official cash rate at 2.5 percent despite an overheating property market, confirms industry speculation that interest rates will remain low for a considerable time.

Further details | In the Media

Should super stay at 9.5%

Dixon Advisory Executive Chairman Daryl Dixon speaks with Ross Greenwood on 2GB Money News about whether compulsory superannuation should stay at 9.5%. 
 

Further details | On the Radio

Fund for thought amid compulsory super flaws

Even more worrying for younger and middle-aged earners is the continuous pressure from the superannuation industry and Treasury to raise the preservation age beyond 60 to as high as the age pensioner eligibility age (currently 67 for younger people). With many more Australians with house mortgages and facing the threat or reality of redundancy, to have money tied up, untouchable in super (apart from limited access to up to $10,000) is a far from pleasant prospect.

Further details | Daryl's Articles

Telstra move good news for some

Very shortly, nearly one million shareholders will have to decide whether to participate in the off-market buy-back of $1 billion of Telstra shares. The good news is, ignoring this offer is unlikely to result in any significant loss for several reasons.

Further details | Daryl's Articles

Don’t fiddle with franking credits

With friends like David Murray’s Financial System Inquiry concluding that the case for retaining dividend imputation is less clear than in the past, small and large business as well as self-funded retirees hardly need enemies.

Further details | Daryl's Articles

Franking credits keep wheels turning

The sharemarket has settled into a consolidation phase at between 5400 and 5600 index points, mirroring changes in overseas markets. While analysts are confident the current reporting period will not produce unexpected changes to their forecasts, international political instability makes further upward movement in prices unlikely.

Further details | Daryl's Articles

Super changes are long overdue

Senator Nick Xenophon’s proposal for Australia to follow Canada’s lead and allow first-home buyers to access part of their super as a home deposit highlights a serious flaw in our comp

Further details | Daryl's Articles

Low rates may distort decisions

Last week’s strong property markets in the major capitals during a normally slow winter give further confirmation that low interest rates are encouraging investors to take higher risks.

Further details | Daryl's Articles

Hidden in detail, a costly sleeper

Warnings that Australia is at risk of losing its AAA credit rating if it doesn’t reduce the size of the federal budget deficit need to be taken seriously, but not solely for the reasons being canvassed.

Further details | Daryl's Articles

Bad news delayed for age pensions

The federal budget contained few surprises for age pensioners. The government has delayed the introduction of all major changes, including indexing the age pension by reference to the consumer price index until September 2017 or even later.

Further details | Daryl's Articles

Revenue raising options will have to be reviewed before long

Treasury Secretary Martin Parkinson's call for a broadening of the Good and Services Tax (GST) base as a source of future revenue reveals just how inadequate the recent Henry tax review was in addressing future government funding. The terms of reference of that review ruled out the consideration of important elements in the system, including the GST.

Further details | Daryl's Articles

Risk management key to protecting income

While the global financial crisis might feel like old news, the actual impact on many people’s life savings remains very relevant. Most of us know someone who was approaching or in retirement at that time who suffered devastating losses

Further details | In the Media

Advice from the past for reformers

In dealing with both an expenditure blowout and falling income growth, our senior Treasury ranks, controlled by theoretical specialists, are supplying little assistance to the government in stabilizing the books. Treasury employer Martin Parkinson’s discovery of the requirement for expanding the GST base highlights just how insufficient their current support has bee

Further details | Daryl's Articles

Changes to super tax concessions could well prove too hard

The difficulties involved in attempting to change the age pension assets test also complicate the task of altering taxation assistance to superannuation. For example, a recent proposal to replace the current tax concessions by a universal non-income tested national superannuation scheme (as in New Zealand) could well create as many or even more problems than it solves. 

Further details | Daryl's Articles

Super in the line of fire

Thousands of future military recruits could miss out on one of the most generous superannuation schemes in the country, because of the cost-saving recommendations by the National Commission of Audit. Buried in the detail of the commission's report, released on Thursday, is a proposal to close the Military Superannuation and Benefits Scheme to new members, a measure designed to slash about $200 million from the Commonwealth's unfunded superannuation liability bill by 2020. 

Further details | In the Media

Why the Fed might be tapering into trouble

Richard Fisher, president of the Federal Reserve Bank of Dallas, is neither an academic nor a bureaucrat, which makes him something of a rarity in the United States’ central banking system.

Further details | In the Media