It is probably no comfort to anyone to reflect on the year when investors could get 14.95% on a bank term deposit. It was January 1991, the recession Paul Keating said we had to have. People with personal loans and credit card debt watched horrified as repayment rates went to 20% and beyond. The average variable mortgage rate rose to 17.5% at the same time. The gap between the haves and have-nots in that era…
Treasurer Josh Frydenberg’s much-reported speech, where he referred to my cohort (the over-65s) as ‘an economic time bomb’, should not be seen as random. The speech to the conservative think tank, the Committee for the Economic Development of Australia (CEDA), was deeply calculated. Frydenberg’s thesis is that older Australians should work longer and take up re-training to help facilitate a return to the work force, thus easing the country’s social security burden. Frydenberg was immediately…
There have been few occasions when dividends made it on to the front pages or lead item TV news. The first time was when Treasurer Paul Keating introduced the dividend imputation scheme in 1987, largely as a way of eliminating the double-taxing of company dividends. From that day, Australian investors were given franking credits on the dividends they received on their shares. This had the welcome effect of boosting the investment return for the investor…