Tag Archives: dennisroberts

Proposed super changes likely to cost Labor the election

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Will Labor’s super tax hike become Anthony Albanese‘s Bill Shorten moment?

The plan to increase taxes from 15 to 30 percent on super balances above $3m includes taxing what’s termed ‘unrealised gains’.

That means taxing the assets that make up the super fund providing annual income to retirees before the assets are even sold.

It could force properties held in super to be sold as their value rises, which is making plenty of older Australians decidedly uncomfortable.

The tax hike laws are currently held up in the Senate and might not pass, but if they do we would be the first nation on earth to ever legislate such a whacky policy.

The growing concerns among retirees reminds me of the backlash Shorten faced ahead of his ill fated attempt to win the 2019 federal election by arguing the case for changes to franking credits.

That election was thought to be in the bag for Labor. Unloseable given all the leadership turmoil within the Coalition government, and given that Labor led in every major opinion poll published over the course of two years counting down to election day.

The turnaround on the day was put down to a backlash, especially amongst older Australians, because of policies like the franking credits changes.

Self funded retirees understandably crack it when they plan for their fixed income retirement based on tax structures that get changed, eroding their fixed income when they no longer have the capacity to work to supplement it.

Which is exactly what Labor’s doubling of the super tax will do, not to mention the assets in super funds that will need to be sold because of the plan to tax unrealised gains.

Property in super portfolios is one of the most ill-liquid asset classes going around.

Fancy having to sell a property in your super fund because some assessor says it’s notional value has increased over the previous year as house prices continue to soar – when living off the rent from that property was your retirement plan.

That’s the real world impact of Albo’s super changes, which by the way, weren’t even taken to the last election.

He told us before the 2022 election that if Labor was elected to government there would be no new taxes.

So the attempt to double the super tax is another broken election promise, if it gets legislated.

One that has the potential to hurt Albo electorally the same way Shorten’s proposed tax hikes hurt him at the 2019 election.

You can see the Coalition sharpening their attack ads as it prepares to try and oust Albo from office early next year.

While the Senate might save Albo and Labor from its planned broken election promise by rejecting the proposed legislation necessary to increase super taxes, I’m not sure that prevents a backlash at the ballot box.

We know Labor wanted to double super taxes. We know that if it gets re-elected it will try and legislate the tax hike in its second term.

So the foundations for a strong campaign to chuck Albo out lest he slugs self funded retirees with higher taxes if he wins a second term have already been laid.

by PETER VAN ONSELEN

Unveiling the Secrets: Little-Known Facts About Credit Scores

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Credit scores can be full of surprises! Here are some lesser-known facts about credit scores:

1. Multiple Scores Exist

  • You don’t have just one credit score. Different scoring models, like FICO and VantageScore, use distinct criteria, leading to variations in your score. Even within the same model, lenders may use tailored versions specific to their needs.

2. Soft Inquiries Don’t Impact Your Score

  • Checking your own credit report or applying for pre-qualified offers are considered “soft inquiries” and won’t hurt your score. Only “hard inquiries,” triggered by formal credit applications, might lower your score.

3. Utilization Matters More Than Total Debt

  • Credit utilization ratio (the percentage of available credit you’re using) heavily influences your score. Even if you have a low overall debt, maxing out a single credit card can hurt your score.

4. Closed Accounts Can Affect Your Score

  • Closing old credit accounts might reduce your score because it can lower your credit history length and available credit, affecting utilization ratios.

5. Medical Debt is Weighed Differently

  • Medical debt is often treated more leniently in scoring models. Some scores disregard paid medical collections entirely, and newer FICO models prioritize other debts over unpaid medical bills.

6. Utility and Rent Payments May Count

  • Traditionally, utility and rent payments didn’t factor into credit scores, but programs like Experian Boost and some VantageScore models now allow such data to improve your score.

7. Good Behavior Takes Time to Reflect

  • Improvements in paying off debt or reducing utilization may not reflect on your score immediately. Credit bureaus update their information monthly or less frequently.

8. The Myth of “Joint Credit Scores”

  • Credit scores are always individual. Even for joint accounts, each person has their own score, influenced by their credit behavior.

9. You Can Have a “Thin File”

  • If you lack enough credit history, you might have a thin credit file, making it harder to generate a score. This often happens to young adults or those who primarily use cash.

10. Having No Debt Doesn’t Guarantee a High Score

  • A good credit score requires a history of managing debt responsibly. Without any credit accounts, there’s little data for scoring models to evaluate.

11. Negative Information Fades Over Time

  • Most negative marks, like late payments or collections, drop off your report after 7 years. Bankruptcies may last longer, but their impact diminishes over time.

12. Your Income Doesn’t Affect Your Score

  • Credit scores are based on your credit history, not your income. However, lenders may consider income separately when evaluating creditworthiness.

13. Credit Scores May Affect More Than Loans

  • Employers, landlords, and insurance companies might use your credit report (but not your score) to assess risk or responsibility.

14. Overpaying Won’t Boost Your Score

  • Paying more than the minimum is great for reducing debt and avoiding interest, but it doesn’t provide extra credit score benefits beyond demonstrating on-time payments.

15. Authorized Users Can Benefit

  • Being an authorized user on someone else’s account can help you build credit, provided the primary account holder manages the account responsibly.

16. Old Debts Aren’t Automatically Removed

  • Paying off an old debt doesn’t remove it from your credit report—it just updates the status. Positive credit behavior takes time to overshadow past issues.

Redefining Wealth: How Women Can Transform Their Relationship with Money as a Metaphor for Masculine Energy

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In many traditions, money is seen as a symbol of masculine energy, representing qualities like structure, assertiveness, and stability. Yet, for some women, this metaphor creates a subtle distance, leading to an estranged relationship with money and, by extension, with masculine energy itself. Shifting this dynamic requires a new understanding of money—not as something to fear, dismiss, or chase, but as an energy to embrace and harmonize within.

Masculine energy is often associated with qualities like drive, clarity, and boundaries, which can sometimes feel at odds with traditionally feminine energies of nurture and flow. For some women, navigating this relationship can feel challenging, particularly if they feel disconnected from those traits in themselves or have learned to associate money with struggle or limitation. This estrangement can impact how they view and handle finances, creating cycles of avoidance or scarcity.

The journey toward financial empowerment starts with reframing money as a supportive force rather than something imposing or elusive. By seeing money as a resource that supports dreams and ambitions, women can begin to tap into its stabilizing and grounding energies without compromising their natural strengths. Money mastery doesn’t have to mean adopting traditionally “masculine” tactics; rather, it’s about harmonizing masculine and feminine perspectives to create a balanced approach to wealth.

One way to shift this perception is to view money as a tool for freedom and creation. Instead of fearing or dismissing its presence, envision money as an enabler of values-driven goals, experiences, and impact. Approaching finances from this mindset transforms it from a stressor to a partner, facilitating empowerment rather than avoidance.

By embracing money as a supportive energy that complements feminine strengths, women can cultivate a more secure and grounded relationship with their finances. This approach allows them to appreciate both masculine and feminine qualities within themselves, fostering a holistic view of wealth and creating the foundation for financial mastery. Through this inner alignment, money becomes less a distant symbol and more a collaborative energy, paving the way for a fulfilling, empowered, and balanced approach to wealth.

Helping Executive Women Reduce Stress, Prevent Fatigue & Avoid Burnout
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Lighting Up Liberation: The 1960s ‘Torches of Freedom’ Campaign and Its Lasting Impact on Women’s Smoking

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In the 1960s, as women’s liberation movements gained momentum, the “Torches of Freedom” campaign by cigarette companies seized a unique cultural opportunity. Originally initiated by public relations pioneer Edward Bernays in 1929, the concept aimed to link cigarette smoking with female independence and empowerment—a bold move, as societal norms previously stigmatized women who smoked. The “Torches of Freedom” label resurfaced in the 1960s, promoting smoking as a symbol of breaking free from traditional gender roles.

The campaign targeted women with images of stylish, independent women confidently smoking, often in settings previously reserved for men. Advertisements featured slogans like “You’ve Come a Long Way, Baby,” aligning with the growing feminist movement.

Cigarettes were rebranded as tools of empowerment, and lighting one up became, for some women, a public declaration of equality and liberation. Brands like Virginia Slims embraced this approach, capitalizing on the idea that women’s newfound freedom was best expressed by adopting male behaviors, like smoking.

However, the long-term impact of this campaign was far from empowering. Smoking rates among women rose significantly, as did lung cancer and other smoking-related illnesses. Decades later, health advocacy groups would fight to undo the damage caused by these targeted ads, as cigarette addiction and its deadly consequences became a major public health crisis.

The “Torches of Freedom” campaign remains a fascinating study in marketing, highlighting the power of advertising to shape social behaviors by tapping into deep-seated cultural desires. The campaign succeeded not only in boosting cigarette sales but also in altering public perceptions of smoking and independence for women. This example is a reminder of how marketing can shape history, blurring the lines between liberation and manipulation. Today, it stands as a cautionary tale of how industries can exploit social movements to drive profits, often at the expense of public health.

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The Hidden Cost of Fitting In: How Patriarchal Business Models Impact Executive Women’s Health

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In today’s competitive corporate world, many women executives face the unspoken expectation to “fit in” by adopting traditionally masculine approaches to leadership. These patriarchal models often value traits like assertiveness, relentless ambition, and single-minded focus on profit, leaving little room for the qualities that women leaders can naturally bring to the table. However, this constant need to adapt comes at a hidden cost: their health.

The pressure to conform to a patriarchal model often leads executive women to suppress their authentic style and adopt an approach that feels unnatural or uncomfortable. Studies reveal that this tension between personal identity and workplace expectations can lead to increased stress levels, burnout, and even serious health conditions over time. Trying to match a rigid, hierarchical style may result in a cycle of self-doubt and emotional exhaustion, ultimately affecting physical health as well. Conditions like hypertension, chronic fatigue, and anxiety disorders are more prevalent among women in such high-pressure roles.

Moreover, patriarchal business structures frequently overlook work-life balance, expecting leaders to prioritize the company over their personal lives. This not only leads to burnout but also impacts family relationships and overall life satisfaction. Executive women often feel compelled to work harder to prove their capabilities, leading to long hours and a struggle to juggle multiple responsibilities. This lack of balance can weaken immune systems and increase susceptibility to illness, creating a cycle of mental and physical strain that’s hard to break.

There’s a growing body of research showing that business models emphasizing cooperation, empathy, and well-being create healthier environments for all employees, especially women. By shifting toward more inclusive, egalitarian structures, businesses can help foster a supportive culture that values personal well-being alongside productivity. Matrilineal-inspired values that center on long-term growth, mentorship, and resilience offer a promising alternative, creating workplaces where executive women can lead in ways that align with their strengths, rather than at the expense of their health.

For executive women, finding environments that embrace authentic, people-centered leadership is not only empowering—it’s essential for sustained health and happiness.

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Occupy Wall Street: A Movement Built on New Foundations

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The Occupy Movement, which erupted in 2011 with Occupy Wall Street in New York City, became a global protest against economic inequality, corporate influence, and political corruption. With the rallying cry, “We are the 99%,” it called attention to the widening wealth gap and corporate control over democratic processes, marking a shift in public consciousness. Occupy wasn’t just about raising issues; it was about embodying a new vision for society—one that didn’t rely on the same power structures it opposed.

“You Can’t Solve a Problem with the Same Thinking”: Occupy and Einstein’s Wisdom

The Occupy Movement was a modern embodiment of Einstein’s principle, “You can’t solve a problem with the same understanding that created it.” Recognizing that traditional hierarchies and economic assumptions had fueled the very issues it opposed, Occupy embraced radically different methods and organization:

  1. Alternative Leadership and Decision-Making
  2. Rethinking Economic Values
  3. Innovative Protest Tactics
  4. Decentralized Media and Communication

Though Occupy’s encampments were eventually dismantled, its impact on public discourse and social movements was lasting. By rethinking how activism could work, it showed that challenging systemic problems required new methods—true to Einstein’s insight, Occupy sought to “solve the problem” by building a movement on fresh, transformative foundations.

What are 5 benefits of knowing and tracking your credit score?

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Here are five valuable benefits of knowing and consistently tracking your credit score:

  1. Helps Secure Better Interest Rates A higher credit score can qualify you for lower interest rates on loans, credit cards, and mortgages. Knowing your score allows you to estimate what rates you may qualify for and gives you a chance to improve your score before applying, which can lead to significant savings over time.
  2. Improves Chances of Approval for Credit and Loans Knowing your score gives you insight into your chances of approval for credit or loans. By understanding your score and working to improve it if necessary, you increase the likelihood of being approved, avoiding unnecessary hard inquiries from declined applications.
  3. Boosts Financial Planning and Goal-Setting Monitoring your credit score helps keep you focused on responsible credit habits, which can be crucial in achieving financial goals. For example, knowing what affects your score can motivate you to pay down debt, make timely payments, and improve your overall financial health.
  4. Reduces Risk of Identity Theft Regularly checking your credit report can alert you to unusual activities, like unauthorized accounts or hard inquiries, that might indicate identity theft. Catching these early can help you take action quickly, preventing further damage and potentially sparing you from financial losses.
  5. Empowers Negotiation and Leverage With a high credit score, you’re in a better position to negotiate terms, from credit card limits to loan terms. Lenders are more likely to offer favorable conditions to those with strong credit, so tracking your score and knowing where you stand can give you leverage when negotiating rates and fees.

Why Australian investors of all ages are switching to offshore shares

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Investors aged 25 to 49 have a roughly half-half split between domestic and international markets, but the change has been most marked among over-50s.

Some investing trends can take decades to evolve, while others seem to happen almost overnight.

In the context of Australian investors, it’s evident that the latter scenario is continuing to play out as a growing amount of money is being deployed into offshore sharemarkets.

Our research shows that across a range of Australian investor age groups there has been a marked tilt by investors towards international share markets since 2021.

Broadly speaking, it’s clear that the home shares bias once prevalent among Australian investors has taken a back seat in the plane.

That largely accords with the Australian Securities Exchange’s data that tracks flows into exchange traded funds (ETFs) every month.

Over the first three quarters of 2024, ASX-listed international equities funds attracted about 56 per cent of the $23.3 billion in total inflows into ETFs. By comparison, Australian equities ETFs attracted only 22 per cent of the total inflows.

But things become even more interesting when viewed across the different age cohorts investing in ETFs and unlisted managed funds that provide broad exposure to the Australian and international sharemarkets.

Diversification is critical

We looked at the investing patterns of thousands of Australian investors using Vanguard’s personal investing platform over the past four financial years, breaking them down into four age bands – under 25, 25 to 39, 40 to 49, and 50 and over.

Our data shows that in 2020-21, Australian investors aged 50 and over were investing about $4 out of every $5 into the Australian sharemarket. By June 30 this year, that number had dropped to about $1.70, with the balance going to international shares.

Investors aged between 25 and 49 were investing about $2.20 into the Australian market in 2020-21 for every dollar invested in international markets. Now that number is essentially dollar for dollar.

It’s a similar story for the youngest age cohort, the under 25s, although in 2020-21 they were investing about $3 into the Australian share market for every $1 invested offshore. At the end of 2023-24 that number was also about one for one.

So, the message seems to be getting through. Diversification across asset classes and geographies is really critical in investing.

Fundamentally, this shift to offshore sharemarkets is a recognition by many investors that the Australian sharemarket makes up only a small percentage – about 2 per cent – of the global sharemarket. Indeed, most of the largest companies in the world by market capitalisation are listed outside Australia, in North America, Europe and Asia.

The recent strong performance of international markets, especially United States’ markets, also has encouraged many investors to move outside the Australian market. It is evident many investors have been chasing performance, even though past performance is never an indicator of future returns.

International shares have outperformed Australian shares in eight of the past 10 financial years.

In 2023-24, the US sharemarket delivered a total return of 24.1 per cent, and the broader category of international shares 19.9 per cent. This compared with the Australian sharemarket’s 12.5 per cent total return.

US markets shot up again on news of Donald Trump’s win, with the Dow Jones experiencing its best day in two years, while the S&P 500 and the Nasdaq also hit record highs.

International shares have outperformed Australian shares in eight of the past 10 financial years. To quantify that, a $10,000 investment into international shares in July 2014 would have achieved an average annual return of 13.1 per cent by June 30 this year and grown to $34,329 before costs and taxes, and assuming all distributions had been reinvested.

The same investment into Australian shares would have lagged, delivering an average annual return of 8.3 per cent, and growing in value to $22,239.

The trend across all age groups points to investors wanting greater investment diversification by accessing international markets. There are many ETFs listed on the ASX that provide quick exposure to international shares.

Although returns from international sharemarkets have been relatively strong over time, having good diversification can help to smooth out returns during times when different sectors underperform others.

Hopefully, investors who have made the shift to offshore shares see the value of diversification and stick with it through all market cycles.

It is important for investors in international assets to be aware of potential tax consequences and the risks associated with foreign currency movements, which can have a significant impact on returns.

Adam DeSanctis

as published in Australian Financial Review (Sat, 9-Nov,2024)

The Limits of Women-Only Networks: Are We Really Getting a Seat at the Table?

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Women-only networks have been lauded as crucial spaces for empowerment, support, and career development. These networks provide a safe environment where women can share experiences, build relationships, and mentor one another. They are especially important in industries where women are underrepresented, offering a much-needed source of solidarity. However, while these networks offer support, they don’t necessarily address the deeper issue of power imbalance in the workplace—the very imbalance that keeps women from securing decision-making roles or truly integrating into spaces where power resides.

The issue lies in the fact that women-only networks, by design, are separate from the mainstream power structures. They offer a retreat, but not a solution to the problem at hand. Women are encouraged to grow, succeed, and build connections, yet this success often remains isolated from the broader power dynamics at play. In industries and organizations dominated by men, a women-only network doesn’t alter the fundamental fact that most of the decision-making seats—those that hold the true influence—are still occupied by men.

Getting a “seat at the table” isn’t just about having the right qualifications or knowing the right people; it’s about being part of the conversation in the spaces where power is wielded. Without integration into these power structures, women remain sidelined, even if they’re thriving within their own supportive networks.

To truly create lasting change, we need to shift from segregation to integration. It’s not enough to create spaces where women can succeed apart from the mainstream; we must focus on bringing women into the rooms where the big decisions are made. Gender equality isn’t just about more women in leadership roles—it’s about equal influence in the spaces that shape outcomes. Women-only networks should not be the end goal, but a stepping stone toward breaking down the barriers that prevent women from claiming their rightful place at the table.

Ultimately, while these networks support growth, they must also push for true inclusion within the circles of power. Only then can we achieve meaningful equality.

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From Safe Spaces to Power Places: Shifting Women’s Networks Toward True Influence

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Women-only networks have long served as invaluable safe spaces, offering camaraderie, mentorship, and support in industries where women are often underrepresented. These networks enable women to learn from one another, share experiences, and build confidence.

However, while they provide a strong foundation, women-only networks are only one part of the equation. For true progress, these safe spaces need to evolve into “power places”—platforms that offer women not only support but also real influence and a path to participating fully in decision-making spaces.

A major limitation of women-only networks is their separation from the actual power structures where key decisions are made. These networks support women within a distinct space, but they don’t inherently bridge the gap to the broader ecosystem of leadership. As a result, women can feel empowered within their networks but still find themselves excluded from boardrooms and C-suites, where real authority lies.

The problem is one of segregation versus integration. Women-only networks can inadvertently reinforce a divide, providing women with a community but not necessarily a clear path to positions of influence. This divide means that while women may have the confidence and skills to lead, they may lack the opportunities to join or influence decision-making bodies. The reality is that true power lies not just in skills or confidence but in shaping the policies, strategies, and directions within a company or industry.

So, how do we shift women’s networks from being supportive safe spaces to platforms for genuine influence? The key is to create networks that don’t operate in isolation but instead bridge connections to broader leadership.

These networks should focus on integrating their members into existing power structures and advocating for policies that create inclusive leadership. This could mean forming alliances with men in leadership positions, fostering cross-gender mentorship programs, or providing women with influential sponsorships that go beyond mentorship to open doors to tangible opportunities.

This shift also calls for specific leadership coaching. Having guided many executives toward influence and impact, I’ve seen firsthand how strategic support can make a difference. Women seeking to move beyond their network’s sphere can benefit from tailored coaching to bridge the gap between their goals and the realities of integrating into broader decision-making spaces.

An experienced executive coach can help women cultivate the skills and strategies needed to lead confidently, establish alliances, and leverage their unique strengths in ways that resonate at all levels of leadership.

The goal should be to make women’s networks essential to the organizational landscape—forces that uplift women and actively reshape workplace power dynamics.

By supporting women in accessing decision-making roles and advocating for policy changes that ensure equitable representation, these networks can evolve from safe spaces to power places, moving beyond support to true influence. For women looking to make this transition, the right executive coaching can provide both the clarity and strategy to take that next, significant step forward.

Helping Executive Women Reduce Stress, Prevent Fatigue & Avoid Burnout
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