It’s a big night for those of us in the financial world.
It’s the end of the year, the financial year that is.
For investors, 2013/14 was a good period with the Australian sharemarket returning just over 12 per cent.
When you take dividends into consideration, returns exceeded 18 per cent.
As a result, superannuation funds – which invest a significant portion of their funds in the local sharemarket – should see some solid gains for the past 12 months.
Researchers at Chant West predict the median growth fund will see a 13 per cent return.
Tomorrow we will get a clearer idea of what the property market did over the last financial year, with RP Data releasing its analysis of how the sector performed.
But what we do know is that small business will face some further challenges from July 1. Staff costs are set to rise as the minimum rate of pay increases 3 per cent to $640.90 per week.
Small businesses will also have to absorb the costs relating to the increase to the superannuation guarantee from 9.25 per cent, to 9.5 per cent. If you are contributing extra to super, make sure you’re aware of the changes to superannuation contributions which come into effect tomorrow.
Business will get some respite as the company tax rate is lowered, but not until 2015.
Until then, high income earners will be slugged with an effective tax rate of 49 per cent, once you take into account the debt levy and Medicare levy increase.
For consumers, the biggest saving will likely come from the scrapping of the carbon tax, but that is still dependant on the Senate, which will discuss it in about a week’s time.
As a result, the government says households should see a 9 per cent saving on their electricity bills.