Rudd to offer generous concessions to bank accounts for savers

MUM and dad investors will receive generous concessions to park their savings with banks and building societies as part of sweeping tax reforms.

The Rudd Government is preparing to unveil a new savings scheme offering tax breaks similar to superannuation’s discount rate of 15 per cent, The Daily Telegraph reports.

It will encourage investors to deposit savings with the four major banks and other respected financial institutions.

But investors will have to “lock up” their savings — perhaps for between five and 10 years — to qualify for the special rate.

The new savings deal will be announced as part of the Government’s much-anticipated response to the Henry tax review.

It will be part of a suite of measures aimed at building a new savings culture in Australia.

But it is also hoped it will generate billions of dollars in bank deposits, cutting the need for finance houses to borrow from overseas.

The Government expects it will be popular with voters who currently face punishing tax rates on savings. Some taxpayers can pay up to 50 per cent on interest earned from their bank deposits.

Australia is one of the few countries in the world to tax bank savings at the full rate.

Among key reforms, taxpayers will be able to lodge their annual tax returns with a few clicks of a mouse.

And Australia’s antiquated tax system — containing 125 different taxes — will be streamlined to simplify arrangements.

It is understood the Reserve Bank and other financial authorities have raised concerns about the steady decline in deposits.

Bank CEOs have been lobbying Canberra for changes to taxation on ordinary bank deposits, claiming the superannuation industry gets a huge advantage.

And they have a strong ally in Treasury boss Dr Ken Henry, who has also raised concerns over the punitive rates faced by those who save with banks.

Source  :  www.news.com.au

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Reserve tipped to bump up rates

Homeowners face finding another $50 a month to pay the mortgage, with the Reserve Bank tipped to lift official interest rates again today as it battles to dampen house prices and keep inflation pressures at bay.

A quarter percentage point rise this afternoon would mean official rates would have climbed 1.25 percentage points since October, adding more than $240 to the monthly repayments on a $300,000 mortgage.

It would be the biggest run of increases in a 12-month period since the Reserve took the official cash rate from 5 per cent to 6.25 per cent between November 1999 and August 2000.

But the decision could be a close call, with signs of softness in the retail and building sectors lifting expectations the Reserve may wait at least another month before moving in the week before Treasurer Wayne Swan hands down the Federal Budget.

At least mortgage holders may be saved from a “super-sized” lift to their repayments, with the NAB yesterday saying it would not increase its rates more than any move in the official cash rate. Its recent policy of matching rate rises had led to more customers.

That prompted Mr Swan to challenge other major banks to follow NAB’s lead.

TD Securities senior strategist Annette Beacher expects the Reserve board to hold rates today.

But Macquarie Bank rate strategist Rory Robertson said the chance of a rate rise was about 80 per cent.

“Interest rates here remain unusually low, our jobs market is strengthening, China and bulk-commodity prices are booming, so, too, local home prices, and the world’s biggest economy increasingly is getting back on its feet,” he said.

A new survey from Dun and Bradstreet of business executives out today shows sales, growth, employment and capital investment expectations all rising. 

Source  :  www.thewest.com.au

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Pensioners torture financial adviser

A FINANCIAL adviser has barely escaped with his life after being beaten and held hostage for four days … by a gang of old-age pensioners.                                           

American James Amburn was beaten until his ribs broke, burnt with cigarettes and hit with a Zimmer frame by the gang of five pensioners furious that he’d lost their £2 million ($4.1 million) savings.

Living in Germany, Mr Amburn was ambushed as he left a café and driven in the boot of an Audi to a house, where he was dumped in a cellar.

“I was jumped from the rear and struck,” he told UK tabloid The Sun.

“Then they bound me like a mummy with masking tape. It took them quite a while because they ran out of breath.”

In four days, the pensioners fed him just two bowls of soup, burned him with cigarettes and threatened to kill him “again and again”, angry that he had invested their money in a failed Florida property scheme.                                                                                                                                                                                                                                                                                                                                       

He escaped once but was recaptured and beaten until his ribs broke.

Mr Amburn was eventually rescued after convincing his captors to let him fax a Swiss bank in an attempt to get their money.

He left a note for police at the bottom of the fax and armed cops stormed the house in Bavaria on Saturday.

The “Furious Five” as they have been dubbed, face 15-year sentences for hostage-taking and torture.

Source  :  www.news.com.au  

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Perth cricketer’s skull fractured in UK

A young Perth cricketer bashed with a brick outside a nightclub in Leeds in England might not be able to fly home for several months because severe head injuries that have left him unable to talk.
  
Chris Thomson, 26, suffered a fractured skull when he was attacked early on Monday.                                                                                                                          
  
A man hit him in the face with a brick and he fell backwards and struck his head heavily on the footpath. His attacker left in taxi.
  
Thomson, who made his A-grade debut for WACA club Mt Lawley at the end of the summer, was playing for Clayton West in West Yorkshire.
  
Thomson’s mother Jeannette went to England on Wednesday and was greeted with the news that her son was out of intensive care.

Source www.thewest.com.au

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