Superannuation temptations lead to fines

DTS post itThe pot of money in a self-managed super fund (SMSF) is a too big a temptation for some when they’re under financial stress.

Case law is building, as the tax office gets tougher on people who breach the strict rules on how superannuation may be managed and invested.

The Australian Taxation Office (ATO) is winding up SMSFs, taking trustees to court and seeking a range of orders.

Continue reading

Credit card rates “sticky” despite competition

IMG_0102There is plenty of competition in the credit card market and consumers should shop around, Reserve Bank of Australia (RBA) Assistant Governor Dr Malcolm Edey has told a senate inquiry into credit card interest rates.

But the RBA says card interest rates remain “sticky”.

Rates vary widely and some are higher than “can easily be explained”, Dr Edey told the Economic References Committee public hearing on August 27.

Rates can be as high as 20% and the average is 17%, which would give card issuers an interest margin of 10% above their funding costs and losses.

Continue reading

Innovation culture alive and well

Image courtesy of khunaspix at FreeDigitalPhotos.netConcerns about falling business investment in information technology may be wrong, because investment in ICT research and development is actually rising, a senate committee has heard.

The Economic References Committee inquiry into innovation was told that due to the “internet of things”, the way of measuring investment has changed.

Cisco Systems Chief Technology Officer Kevin Bloch told the committee that Cisco would previously have sold product to a buyer’s IT department, so this was measured as an IT purchase.

Image courtesy of khunaspix at FreeDigitalPhotos.net

Continue reading