From Ben's Desk (February 2019)

February is here and hopefully an end to January’s record-breaking heat across the country. There has also been a lot of heat on the global economic stage. The US shutdown may have ended but the trade war between the US and China continues.

There are also further signs the global economy is weakening. The World Bank predicts growth of 2.9 per cent in 2019, down from 3.0 per cent last year and 3.1 per cent in 2017. China’s economic growth slowed to 6.6 per cent in 2018, the lowest in 28 years but still a remarkably strong compared with developed economies.

In Australia, easing inflation also points to a slowing domestic economy. The Consumer Price Index (CPI) – the main inflation gauge - rose 0.5 per cent in the December quarter but eased from 1.9 per cent to 1.8 per cent on an annual basis. One of the major price falls was petrol, down 2.5 per cent over the quarter. According to the Australian Institute of Petroleum, the national average price for unleaded fuel fell 10.7 per cent in 2018, although it crept up to six-week highs of $131.8c a litre in January. Despite lower prices, consumers and business remain cautious. The Westpac/Melbourne Institute survey of consumer sentiment fell 4.7 per cent in January to 99.6 points, a 16-month low. The NAB Business Confidence index also dipped in December, from 3.4 points to a 3-year low of 2.8 points. Unemployment fell from 5.1 per cent to 5.0 per cent in December. The Aussie dollar jumped on the final day of the month to close at US72.7c, up from a January low of US68.7c.

The February 2019 edition of From Ben’s Desk includes the following articles:

• Don’t short-change your medium-term goals;

• Media curation in the digital age;

• How to speak “real estatese”.

To view this edition, please click on this link.

All the best,

Ben Wieland (Partner & Senior Financial Adviser) & Ben Widdup (Financial Adviser).

"A truly principled and distinct perspective that makes a meaningful difference to our clients' financial future."

From Ben's Desk (January 2019)

Happy New Year to all our valued clients! Whether you are still relaxing on your summer break or back at work, we wish you and your families a happy and prosperous 2019.

There was no let-up in the pace of economic news in December. The US Federal Reserve lifted interest rates 0.25 per cent as expected to a target range of 2.25-2.5 per cent, the fourth hike of the year. The Fed now forecasts two more increases in 2019 instead of three on concerns about weaker global growth. One sign of falling economic demand is the slide in global oil prices. Brent Crude finished the year down 18 per cent to US$54 a barrel.

In Australia, the Federal Budget is expected to return to surplus in 2019-20, earlier than expected. The Budget deficit stood at $1,816 million in the year to November, the lowest in a decade. Corporate Australia is producing record profits, up 1.9 per cent in the September quarter and 13.5 per cent on an annual basis. Unemployment fell to 5.1 per cent in November, the lowest since 2012.

In the lead-up to Christmas, the national average price for unleaded petrol fell 8c a litre to $1.30, 11c cheaper than a year earlier, on the back of lower oil prices. No wonder consumers had spring in their step. The ANZ-Roy Morgan consumer confidence rating rose to 117.8 points amid the annual Christmas spending spree, well above the long-term average of 113. The only fly in the ointment is the falling property market. National house prices fell 4.8 per cent in 2018, according to CoreLogic, with the biggest falls in Sydney and Melbourne.

The January 2019 edition of From Ben’s Desk includes the following articles:

• 2018 year in review;

• Financial rules to live by in 2019;

• Small steps add up.

To view this edition, please click on this link.

All the best,

Ben Wieland (Partner & Senior Financial Adviser) & Ben Widdup (Financial Adviser).

"A truly principled and distinct perspective that makes a meaningful difference to our clients' financial future."

Your Knowledge (December 2018)

Welcome to the December 2018 edition of Your Knowledge – the exclusive publication of EGU Accounting and Taxation.

Quote of the month:

“If everything seems under control, you're just not going fast enough.” - Mario Andretti (Racing Driver)

No tax deductions if you don’t meet your tax obligations
If taxpayers do not meet their PAYG withholding tax obligations, from 1 July 2019 they will not be able to claim a tax deduction for payments.... Read more

Contractor or employee? Defining workers in the gig economy
A former Foodora Australia delivery rider, Joshua Klooger, recently won an unfair dismissal claim despite a service agreement that classified him as an independent contractor. We explore the implications of the case.... Read more

Tax on shares: ATO extends data matching program
The Australian Tax Office (ATO) is utilising data provided by the Australian Investments and Security Commission (ASIC) to data match share trades.... Read more

To view this edition please click on this link.

Bill Wieland – Founding Partner of EGU, heading the Business Advisory division.

Business Update and From Ben's Desk (December 2018)

Introducing Ben Widdup

It is with great pleasure that I introduce you to Ben Widdup.  Ben recently joined EGU Wealth Management as an Authorised Representative and Financial Adviser.  Ben has completed a Bachelor of Commerce double major degree in Accounting and Financial Planning, and will be working closely alongside Partner and Senior Financial Adviser, Ben Wieland.  He is dedicated to using his graduate skills and experience to do meaningful work that his family and community can be proud of, adding real value to the lives around him.  To find out more about Ben, please view the About page on the EGU website.

Ben Wieland (Partner and Senior Financial Adviser) and Ben Widdup (Financial Adviser).

---

From Ben's Desk

The latest edition of From Ben's Desk (December 2018) has now been released.  This edition covers the following topics:

• Avoiding the holiday debt hangover;

• Protecting your family; and

• Can you afford your dream retirement?

Please click on the above link to download the December 2018 edition of From Ben's Desk.

---

Be sure to also view our short Economic Update Video (December 2018).

---

As always, if you have any questions, please feel free to contact me.

Kind regards,


Ben Wieland
EGU | Partner and Senior Financial Adviser
1300 102 542
0423 710 820
ben@egu.com.au
GPO Box 1598 Brisbane QLD 4001

Ben Wieland is a Director and Authorised Representative (AR# 401073) and EGU Wealth Management Pty Ltd is a Corporate Authorised Representative (CAR# 434344) of Australian Financial Services Licence (AFSL) holder EGU Financial Services Pty Ltd (AFSL# 509564).

"A truly principled and distinct perspective that makes a meaningful difference to our clients' financial future."

Economic Update Video (November 2018)

Please click on the picture below to view the November 2018 Economic Update Video.

From Ben's Desk (November 2018)

It’s November and, as always, the month gets underway with the race that stops the nation. The Melbourne Cup is also the signal that summer, Christmas and the holiday season are just down the track.

October was an anxious month for investors as global share markets followed Wall Street’s wobble before steadying in the final days. The S&P 500 Index fell 7 per cent in October while the ASX 200 fell more than 5 per cent. There was no major reason for the falls. The US economy grew at an annual rate of 3.5 per cent in the third quarter and corporate earnings are strong. But there are ongoing concerns about the US-China trade war and rising US interest rates.

The Australian dollar finished the month 1.6 per cent lower at around US71c. This is good for trade, as is the 10 per cent rise in the iron ore price in October to US$76.50 a tonne. Local unemployment fell to a six-year low of 5 per cent in September, while inflation fell below 2 per cent. The September quarter Consumer Price Index rose just 0.4 per cent for an annual rate of 1.9 cent, down from 2.1 per cent in June. Prices of accommodation, tobacco, property rates and petrol bucked the downward trend. The national average price of unleaded fuel recently hit 160.6c a litre, the highest in a decade. But relief for motorists could be in sight as the price of Brent Crude oil fell 11 per cent in October to US$75.57 a barrel. Consumer sentiment fluctuated, with the ANZ-Roy Morgan consumer confidence rating dipping 6 per cent mid-month before rebounding to 114.6, above the long-term average.

The November 2018 edition of From Ben’s Desk includes the following articles:

• Benefits of a super long engagement;

• Is food delivery eating into your budget?;

• Fostering financially savvy young adults.

To view this edition, please click on this link.

All the best,

Ben Wieland.

"A truly principled and distinct perspective that makes a meaningful difference to our clients' financial future."

From Ben's Desk (October 2018)

October is here, which means football fever and the holiday long weekend are behind us as we enter the final stretch towards Christmas. It’s traditionally a busy time for households and on the business and economic scene, as we prepare for the end of another year.

As expected, the US Federal Reserve lifted interest rates for the 8th time in September, by 0.25 per cent to a target range of 2.0-2.5 per cent. The US economy is growing strongly, with growth of 3.1 per cent forecast for 2018, full employment and inflation on target at 2 per cent. The Fed forecasts one more rate rise this year and three in 2019. Meanwhile, Australia’s cash rate remains at an historic low of 1.5 per cent. The growing differential between local and US rates pushed the Aussie dollar lower in September, down more than 1 per cent to around US72.5 cents.

Overall, our economy is in good shape. Australia’s record economic expansion is in its 28th year, with growth up 0.9 per cent in the June quarter, 3.4 per cent on an annual basis, the strongest in 6 years. The Budget deficit fell to $10.1 billion in 2017-18, the smallest in a decade, with more Australians in jobs and record company profits boosting tax revenues and reducing the welfare bill. Unemployment was steady at 5.3 per cent in August. Consumer and business confidence continue to fluctuate on political uncertainty; the ANZ-Roy Morgan consumer confidence index fell 0.7 per cent from a 5-week high to 117.2 in late September. The NAB Business Confidence index fell from 7 points to a 25-month low of 4.4 points in August.

The October 2018 edition of From Ben’s Desk includes the following articles:

• Planning for the future of a special needs child;

• Housing prices off the boil;

• Getting into the great outdoors.

To view this edition, please click on this link.

All the best,

Ben Wieland.

"A truly principled and distinct perspective that makes a meaningful difference to our clients' financial future."

Economic Update Video (October 2018)

From Ben's Desk (September 2018)

September is upon us and spring is in the air. Our farmers and firefighters will be hoping for some soaking rain to ease the drought and ward off bushfires. Meanwhile, AFL and NRL fans will be hoping the sun shines on their team this finals season.

Economic news was overshadowed by political instability in August, culminating in Scott Morrison being sworn in as Australia’s 6th Prime Minister in 11 years. Morrison is seen as a safe pair of hands economically, and consumer confidence rebounded after the vote. The ANZ-Roy Morgan consumer confidence rating rose 2.1 per cent, its biggest lift in 11 weeks.

Elsewhere the economic signs are mixed. As the latest profit reporting season ends, over 60 per cent of ASX 200 companies lifted profits in the year to June while 93 per cent paid a dividend. The unemployment rate fell to 5.3 per cent in July, while wages growth lifted slightly to 2.1 per cent in the year to June. Offsetting this, national home values fell 1.6 per cent in the year to July according to CoreLogic, the biggest annual fall in 6 years. The Reserve Bank remains positive, noting in the minutes of its August board meeting that the economy is improving, and its next interest rate move would be up. But it sees ‘no strong case’ to lift interest rates in the near term.

The Australian dollar fell to around US73c in August, down more than 7 per cent this year. In contrast, Wall Street hit record highs in August following comments from the Federal Reserve that it will continue to lift rates gradually provided ‘strong growth in incomes and jobs continues’.

The September 2018 edition of From Ben’s Desk includes the following articles:

• Plugging in to technology stocks
• Young invincibles - the importance of insurance
• Lessons from the 'rich list'

To view this edition, please click on this link.

All the best,

Ben Wieland.

"A truly principled and distinct perspective that makes a meaningful difference to our clients' financial future."

Your Knowledge (August 2018)

Welcome to the August 2018 edition of Your Knowledge – the exclusive publication of EGU Accounting and Taxation.

Quote of the month:
“If your house is burning, wouldn't you try and put out the fire.” - Imran Khan

Will Australians pay more for a good cause?
In the same month that desperate farmers made headlines preparing to destroy starving flocks and pleading with the public to pay a few cents more for their dairy products, Dick Smith’s nationalistic brand announced its closure. The question is, will Australians pay more for a cause?.... Read more

Clothing deductions hung out to dry
The Australian Taxation Office is closely examining work-related clothing and laundry expense claims of taxpayers submitting their 2017-18 tax returns..... Read more

Are you holding back your business?
Overcoming the biggest problems in business often comes down to the simple things. Here are a few simple things you can do to capitalise on your opportunities and reduce your risks.... Read more

To view this edition please click on this link.

Bill Wieland – Founding Partner of EGU, heading the Business Advisory division.

From Ben's Desk (August 2018)

As August rolls around and the weather begins to warm up, our thoughts are with the nation’s farmers. Many are battling a prolonged drought and wishing for rain.

On the domestic front, the corporate earnings season is approaching at a time when Australian shares are trading at 10-year highs. The lower Australian dollar, down 5 per cent this year to US74c in late July, should help boost companies with offshore earnings.

Inflation remains benign with an annual growth rate of 2.1 per cent in the June quarter, up from 1.9 per cent in March. Prices of petrol, health and tobacco rose strongly while prices fell for domestic travel, cars and vegetables. The unemployment rate was unchanged at 5.4 per cent in June but wage rises barely kept pace with inflation. Consumers felt the pressure in their hip pocket, with the weekly ANZ-Roy Morgan consumer confidence rating dipping 2.1 per cent to 118.9 in late July.

Falling house prices may also be weighing on sentiment, with the CoreLogic national Home Value Index falling 0.8 per cent in the year to June. Home prices fell in Sydney, Darwin and Perth, dragging down the national average.

In the US, June quarter corporate earnings reported so far have exceeded expectations, up 4.1 per cent on an annual basis despite ongoing global trade tensions. The IMF left its global growth forecast unchanged at 3.9 per cent for 2018 and 2019 which, if realised, would be the fastest growth in 7 years.

The August 2018 edition of From Ben’s Desk includes the following articles:

• Fired up for financial independence
• Making the most of a falling Aussie dollar
• Is your money personality set in stone?

To view this edition, please click on this link.

All the best,

Ben Wieland.

"A truly principled and distinct perspective that makes a meaningful difference to our clients' financial future."

Meeting the Prime Minister

Yesterday I had the privilege of meeting The Honourable Malcolm Turnbull, Prime Minister of Australia.  The Prime Minister attended the 2018 Teneriffe Festival.  As a board member of Teneriffe Festival Inc., I had the opportunity to talk to the Prime Minister and display to him the beautiful suburb of Teneriffe of which I live.