Only one in five Australian investors have changed their super strategy in the last three months, according to a Newspoll survey.

Despite the recent market volatility, a majority of Australians remain committed to their existing saving strategies, a recent Newspoll survey has found.

The findings, released by the Investment and Financial Services Association (IFSA), found only one in five working Australians have reconsidered their superannuation strategy in the last three months.

More than half of the 683 working Australians surveyed said they were 'concerned' about the current state of the financial markets, 23 per cent said they were 'unfazed', 20 per cent remained 'optimistic', while only 5 per cent said they were 'scared'.

Furthermore, 58 per cent of respondents approaching retirement (50-64 year olds) were more likely to be 'concerned' with the current market climate, while nearly a third of younger Australians (18-34 year olds) were more likely to be 'unfazed'.

The survey found more than a third of working Australians believe the current market presents buying opportunities, with 39 per cent of respondents agreeing that now is a good time to invest in the share market.

One in five working Australians aged 18-64 have used the services of a financial planner for their super in the last two years, with those approaching retirement were more likely to seek professional advice.

By Victoria Papandrea   31 Oct 2008    InvestorDaily

Survey Link
http://www.ifsa.com.au/Media%20Releases/2008_1030_NewspollPR_FINAL.pdf

Quote of the Week:  

"I believe banking institutions are more dangerous to our liberties than standing armies!

If the American people ever allow private banks to control the issue of their currency, 1st by inflation, then by deflation, the banks & corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered."

- Thomas Jefferson 1802

The WA State Government has announced an immediate cut in rates applying to land tax and the metropolitan region improvement tax (MRIT).  The tax cuts are in response to higher than expected revenue projections for this financial year and 2009-10.

Treasurer Troy Buswell said cuts would apply to assessable properties across the board and would average around seven per cent.

“It is consistent with the Liberal Party’s election commitment to lower taxes and return to taxpayers any unforeseen tax revenue windfalls,” Mr Buswell said.  

“In this case, it will be a matter of not collecting excess tax to begin with.”

The decision follows advice from the Department of Treasury and Finance that land tax and MRIT income this financial year was likely to be $41million higher than forecast, and potentially $192million more over the forward four years, as a result of an under-estimation of final land valuations. 

Assessments based on calculations in the May Budget had been due to go out on  September 24, the new Government’s first working day in office, but were held back by the new Treasurer pending legislation next month to enable the immediate adjustment.

The Treasurer said the Government was aiming to issue assessments in late November.  Legislation enabling the cuts would be introduced as a matter of priority when Parliament sits for the first time on November 6. 

He said the land values on which the 2008-09 tax scales were modelled had been revised up significantly since the last State Budget was finalised.

“This has put us in a position where a reduction in the tax rates is the right thing to do in order to keep revenue to the level that was budgeted,” he said. 

“We are not a government that is willing to turn a blind eye to these things and to pocket such windfalls.

“In keeping with our election pledge, we are acting quickly to bring tax assessments back into line with the level of income the Budget required.  The lower rates will achieve a neutral revenue outcome in the case of land tax and about $2million less from MRIT than was planned.

“Our early action in this respect will be of particular benefit to small businesses that lease or own property.” 

The cut also recognises that land tax is one of the cost pressures impacting on the rental market and it sits well with the new Government’s move to reinstitute the First Start shared equity housing assistance scheme and to implement the increased first home buyer grants announced last week.

Land tax and MRIT are forecast to generate revenue of around $650million this financial year.

Land tax on land valued at $500,000 will drop by $20 to $180.  For land valued at $1million the reduction will be $70, from $700 to $630.  

If the property is located in the metropolitan region the MRIT savings will be a further $20 in the case of the land valued at $500,000 and a further $70 in the case of the land valued at $1million.

The proposed new tax scales are attached. 

Treasurer's office - 9222 9111

Attachments

Tax scales.pdf

Tuesday 21 October, 2008

Source Link:  http://www.mediastatements.wa.gov.au/Pages/Results.aspx?ItemID=130763

The Chinese economy is expected to remain resilient over the next financial year and is well placed to weather a downturn in the global economy, according to CommSec.

CommSec's latest economic insight report, released today, showed China continued to grow solidly in the September quarter, with gross domestic product expanding at 9 per cent from a year earlier despite the shutdown for the Olympics.

Retail sales remained robust, up 23.2 per cent on a year earlier, but just shy of the record pace of growth hit in July.

Nonetheless, Chinese retail sales still grew close to the fastest pace in a decade, thanks in part to sustained strong income growth.

Industrial output expanded by 11.4 per cent in the year to September, down from 12.8 per cent in the year to August, and just below expectation of around 13.4 per cent.

China's trade surplus climbed to a record $29.3 billion in September as import growth matched the slowest pace in a year.

While many countries around the world that are skirting recession territory, China is certainly not immune to the slowdown noted in the global economy, the report said.

But, with further rate cuts and the possibility of a fiscal stimulus package on the agenda, the Chinese economy is expected to remain resilient over the next financial year, with annual growth of between 8 -9 per cent.

"The long term fundamentals for the China story still remain broadly positive. With a population of 1.3 billion consumers, Chinese authorities continue to re-iterate their plans for income growth, not just in urban centres but also driving wealth and growth further into rural sectors," the report said.

"China is in an enviable position of being much better positioned than most emerging or advance nations. The government will focus on supporting growth through a number of measures. Expect rate cuts and fiscal stimulus policies to be on the agenda."

By Janelle Macri   20 October 2008   WA Business News

Source Link:  http://www.wabusinessnews.com.au/en-story.php?/1/67475/China-to-weather-economic-storm-CommSec/dba