Which superannuation funds may be affected by the ALP Franking Credit Proposal

Dr Don Hamson

The ALP proposal to limit refunding of franking credits will clearly impact pension phase self-managed superannuation funds (SMSFs). We believe it has the potential to impact many other superannuation funds. In this paper we build a model of the key variables which determine whether a superannuation fund is likely to... Show More

Join the conversation

Robbing Granny in the name of Paul

Dr Don Hamson

When I was first asked to comment about the ALP’s proposed scrapping of franking credit refunds my response was I was “flabbergasted”. “Flabbergasted” that the party whose Treasurer Paul Keating created franking credits would cut those benefits accruing to retired workers, “flabbergasted” that the Leader of ALP Opposition who earns... Show More

See 37 more comments

Going overseas for income

Dr Don Hamson

The underperformance of Australian equities in the last year has highlighted the importance of diversifying globally for all Australian investors, not only to seize opportunities but to avoid being overexposed to local risks. However, we believe most Australian SMSF investors have very low allocations to international equities, particularly relative to... Show More

There is yield in global equities!

Dr Don Hamson

Retirees are often exposed to substantial income domestically, but in an increasingly global world, where else can they look? This question becomes increasingly pertinent when one looks at the backdrop of an incredibly low yield environment, with bonds at historical lows, even negative levels! In this note, we will discuss... Show More

Plato Income Maximiser lists on the ASX

Dr Don Hamson

Plato Income Maximiser Limited, the first Australian listed investment company aiming to provide monthly fully franked dividends, began trading on the Australian Securities Exchange today. The listing on the ASX follows on from an oversubscribed initial public offering, which raised $325.9 million, representing the third largest LIC IPO raising in... Show More

Four things retirees should know about shares

Dr Don Hamson

Aussie retirees have a love affair with shares, but not all share portfolios are created equal when it comes to providing sustainable income. This article focuses on the four things that pension-phase investors need to consider when investing in equities: tax, income, growth and regulations. Show More

Up to 300,000 part-pensioners likely to be worse off following 1 January asset test changes

Dr Don Hamson

In the 2015 Federal Budget, changes were announced to the aged pension assets test. These changes have been legislated and come into effect from January 2017. The good news is that more people will be able to access the full pension while some part pensioners will receive slightly higher part... Show More

US Trumpits: BREXIT Revisited?

Dr Don Hamson

In a turnaround almost identical to the UK Brexit vote, the US confounded all the pollsters by electing billionaire Donald Trump as the 45th President of the USA. And just like Brexit, initial share market reaction was very negative as the probability of a Trump win increased during vote counting... Show More

Earnings certainty not reflected in MQG

Dr Don Hamson

Macquarie Group (ASX:MQG) looks reasonable value at the moment trading at a 33% discount to the Industrials ex Banks vs. the five year average discount of 25% on a 5.6% dividend yield. It appears to us that its earnings are transitioning from more volatile investment bank-style earnings to annuity-style funds... Show More

Hi Bob The $5,000 number was an average, assuming one held only around 30% of $1m in Australian shares. As stated investors like yourself with higher allocations to Australian shares would clearly be worse off. $21,000 in your case is a lot to lose and shows how unfair this proposal is. Don

On Robbing Granny in the name of Paul -