AN EXPERT in life cycle finance says changes to the Age Pension may lead some pensioners towards risky investments.

Professor Susan Thorp from the University of Sydney Business School has extensively assessed the changes to the Age Pension proposed in the 2015-16 Federal Budget that come into effect this year.

“Changes to the Age Pension Means Tests are likely to encourage wealthier pensioners to spend their savings more quickly than they otherwise would have and take on more financial risk,” Prof. Thorp said.

“Many pensioners, especially the less wealthy and more elderly, hold onto their financial assets into old age.

“However, historically, wealthier pensioners affected by the assets test spend their savings at significantly faster rates than full pensioners,” she said.

“This is partly because less wealth means a higher pension for this group. Recent changes encourage better-off retirees to use up their nest eggs faster, rather than preserve and pass their wealth on.

“Risky investments will also look a little more attractive to some pensioners. The new asset test means that the pension compensates for financial losses at a higher rate than previously.

“If assets fall by $1,000, the pension rises by $78 compared to $39 previously.”

www.sydney.edu.au

ends

NATIONAL airspace protection is the focus of a new consultation paper, with stakeholder feedback being sought on a range of proposals to modernise airspace regulatory arrangements.

Minister for Infrastructure and Transport Darren Chester said the paper aims to generate engagement with government, industry and community stakeholders on better approaches to this complex issue.

“The paper proposes a modern, consultative and risk-based approach to airspace protection around airports and critical aviation communications, navigation and surveillance facilities,” Mr Chester said.

“It also considers options to better protect low-flying aircraft from hazards operating away from airports.

“I am looking forward to feedback from interested parties as we work toward modernising airspace protection in Australia,” Mr Chester said.

Submissions on the paper will be accepted until 28 February 2017.

To view the Paper and for details on how to make a submission, visit: https://infrastructure.gov.au/aviation/airspace_protection/index.aspx 

• Public Consultation Paper released outlining plans to modernise airspace protection
• Paper covers a range of proposals to protect critical aviation infrastructure while enabling better airport and off-airport planning
• Submissions open until 28 February 2017

ends

BOXING DAY proved to be another great day for retailers this year with Australians flooding shopping centres and department stores across the country. Boxing Day sales are set to reach $2.3 billion as predicted by the Australian Retailers Association (ARA), with consumers lining up outside stores to take advantage of some of the best retail deals of the year.

Russell Zimmerman, ARA Executive Director, said retailers were happy with the out pour of consumers across the country, and were thankful to shoppers who waited patiently in ques due to the uplift in foot traffic across the nation.

“Every year Boxing Day crowds seem to expand, and this year’s crowd certainly did not disappoint,” Mr Zimmerman said.

“We predicted retailers would trade over $2.3 billion this Boxing Day, and judging by the increase of people in stores, I think we may have hit the mark.”

This Boxing Day, Myer launched their biggest Stocktake Sale, and expected to have 1.6 million customers flood through their doors. While department stores traded well, shopping centers like Melbourne Central expected to see over 230,000 people pass through the centre yesterday to take advantage of end-of-year sales.

Online retailers have also seen an increase in consumer activity during this last 24 hours due to Australians feeling more confident in purchasing products on mobile devices.

‘Boxing Day is only the start of the sale period, and we anticipate this shopping spree to continue for the next two or three weeks,” Mr Zimmerman said.

The ARA and Roy Morgan Research expect shoppers to spend $17.2 billion from December 26 to January 15 2017. The category tipped to enjoy the biggest increase in year on year sales in the next three weeks will be ‘hospitality’ at 6.8% growth, which is reflective of people enjoying their holidays and spending money at cafes and bars.

Following hospitality, other categories expected to show a big increase over the next three weeks in year on year sales will be the ‘other’ category at 3.2% growth, and ‘apparel’ at a 3% increase.

On a state basis, NSW will be the big winner, with year on year growth of 3.6% growth for the period encompassing 26 December 2016 to 15 January 2017.

ARA ROY MORGAN POST-CHRISTMAS 2016/17 SALES PREDICTIONS

December 26, 2016 – January 15, 2017

Boxing Day 2016 sales

(Australian Retailers Association)

2016/17 Post-Christmas Sales Growth by Category

(ARA/ROY MORGAN)

2016/17 Post-Christmas Sales Growth by State

(ARA/ROY MORGAN)

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $300 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

 ends