It’s a short week after the long weekend but a lot has already been jammed in. Here’s what’s happening in advisory:
1. The Organisation for Economic Co-operation and Development (OCED) has warned the Morrison Government not to withdraw its stimulus spending too quickly in September as Australia leads the developed world out of the pandemic-induced recession. The intergovernmental agency has encouraged Australia to continue considering stimulus spending as they fear a reduction could slow Australia’s ability to recover.
2. The HomeBuilder stimulus package laid out by the Morrison Government has received criticism this week as commentators fail to see how the plan will create new jobs in the sector as well as the grant being available to only a small portion of Australians. Some argue that the package could have an adverse impact on the residential property prices and produce a ‘negative wealth effect’.
3. A new global survey has found that two-thirds of banking executives say that technology will continue to drive global banking in the next five years, with 77% saying that artificial intelligence will be the difference between winning and losing banks.
4. As employers are faced with staff returning to work in offices, the question remains as to how the Australian workplace will progress forward. myprosperity Director Chris Ridd made the case in his recent article that the hierarchy of needs for workers has shifted during this time, and that flexibility in working arrangements has ascended to the top of what workers regard as important.
5. The ATO has flagged its concern over the growing number of SMSFs purchasing and investing in real estate. While there are no specific prohibitions preventing SMSF investment in property development, the ATO has warned that care needs to be taken to ensure that there are no breaches of regulation.