Each month we provide a wrap of the biggest issues in personal finance.
June saw a continued softening of house prices as the fallout from the banking royal commission continue. It was a busy month for two of Australia’s most talked about fintech startups. Superannuation changes flagged in the 2018 federal budget have hit parliament floor while globally the trade war between the US and China does not look like it’s going away anytime soon.
House Prices Continue Their Decline
The latest official Bureau of Statistics figures show residential property prices fell 0.7 per cent nationwide in the March quarter, led by the first quarterly price decline in Melbourne for five-and-a-half years and the first annual slide in Sydney in six years. The driver of these falls are hard to pin down but property experts believe it has quite a bit to do with tighter lending standards in part driven by the royal commission.
Analysts have started backflipping and are now expecting the market softness to continue through the rest of the year.
New Products from Raiz and Spaceship
Two of Australia’s hottest fintech startups launched new products this month. Raiz, the investment application, has launched a superannuation fund while Spaceship, the superannuation fund, has launched an investment application. These two companies are now competing – you can read about Raiz’s superannuation product here and Spaceship’s new fund (Spaceship Voyager) here.
Raiz also listed this month – the IPO didn’t go exactly to plan with the share price falling 15% in the opening couple days of trading.
New Super Bill Hits Parliament
The government has introduced a bill into Parliament containing a raft of reforms aimed at removing excessive fees and inappropriate insurance arrangements in super as well as boosting the ATO’s consolidation regime. The bill introduces a number of measures first mentioned in the 2018 federal budget. These include reducing inactive low balance super account by enhancing the ATO’s ability to consolidate these accounts and making insurance opt-in for members under 25 or with balances below $6,000.
Further major changes to superannuation are expected over the next few years – if you are looking for an easy and low-cost way to get advice about the right super fund for you then Plenty could be your answer.
Tension between China and the US continue to escalate in June with the recently announced tariffs starting to affect not only global markets but also companies on the ground in the US. Given Australia’s reliance on China, the uncertainty surrounding the trade wars has seen the Aussie dollar slip to its lowest level in over 12 months.
The information contained on this page is of a general nature and may not be appropriate for your personal circumstances. You should obtain personal financial advice before acting on this information.