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Dr. Shane Oliver – Head of Investment Strategy & Chief Economist

There’s been a lot of debate about tax concessions and this followed from the tax discussion paper, released by the Federal Government a month or so ago. There seems to be four areas of focus: 

• Negative gearing

• Franking credits

• Capital gains tax discount

• Tax concessions regarding superannuation

In this video, AMP Capital’s Head of Investment Strategy and Chief Economist, Shane Oliver suggests that the areas that may see some change over time include the capital gains discount and superannuation, particularly for those with high balances or incomes.

This video must be taken in its entirely and any given chapter viewed in isolation does not represent the entire message.

About the Author

Dr Shane Oliver, Head of Investment Strategy and Economics and Chief Economist at AMP Capital is responsible for AMP Capital’s diversified investment funds. He also provides economic forecasts and analysis of key variables and issues affecting, or likely to affect, all asset markets.

Important note: While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided.

Key points:

• After phasing down its quantitative easing (QE) program all year the US Fed has finally ended it. Monetary tightening still looks unlikely until mid-next year at the earliest and is contingent on further improvement in the economy and higher inflation.

• QE has worked – the US economy is now well into expansion mode and looking a lot stronger than Europe and Japan that have taken longer to adopt it.

• While the ending of QE could contribute more volatility to shares it has largely been anticipated. With the US likely to continue growing & monetary conditions expected to remain easy for some time to come the cyclical bull market in shares likely has further to go.

• The ending of US QE is also positive for Australia as it is a sign that the world’s biggest economy is better and removes a source of upwards pressure on the $A.

Key points with Shane Oliver, Head of Investment Strategy and Chief Economist:

• The past financial year saw solid to strong returns from most asset classes drive good returns from balanced and growth oriented investment strategies, including from super funds.

• Investors should expect returns to slow over the year ahead, but they are likely to remain solid as share valuations are still reasonable, the global economy continues to grow, the Australian growth outlook improves and monetary conditions remain easy.

Chapters in this video:

• What's been happening in markets? (00:00)

• What's the outlook for the economy? (00:52)

• Final thoughts (01:52)