Latest news with #WilsonAssetManagement
Sky News AU
a day ago
- Business
- Sky News AU
Treasurer Jim Chalmers 'pouring cold water on investment' with Labor's proposed unrealised gains tax, Geoff Wilson warns
Treasurer Jim Chalmers is 'pouring cold water on investment' and 'penalising' Australians taking on financial risk through Labor's proposed changes to superannuation accounts above $3m, a leading fund manager has warned. Mr Chalmers on Wednesday vowed a boost to Australia's productivity and deliver major tax reform in a speech to the National Press Club. His promise drew criticism from Wilson Asset Management founder Geoff Wilson, who lambasted Labor's plans to alter how large superannuation funds are taxed - which includes targeting unrealised capital gains. "You can't say the economy lacks dynamism and innovation, then introduce a tax that penalises long-term investment and risk-taking,' Mr Wilson told 'Taxing unrealised gains in superannuation does the opposite of what's needed — it punishes prudence, discourages capital formation and undermines confidence in the rules of the game. 'The Treasurer admits we need more innovation — while taxing the very gains that fund it. 'You can't light a fire under the economy by pouring cold water on investment." A common criticism of the plan to tax unrealised gains on assets – including properties and shares – above the threshold in super funds is the impact it will have on small businesses. Many small business owners put assets in their self-managed super funds (SMSF), but under Labor's plan those above the threshold would be forced to pay tax on paper gains. Similarly, some investors use their SMSF as a low tax investment vehicle for startup businesses. Wilson Asset Management sent a note to shareholders warning if the tax were applied to a company like US$40b design platform Canva, which achieved its massive valuation after 18 funding rounds, the company would have failed. 'Under taxing of unrealised gains every funding round would require tax to be paid on a hypothetical valuation,' the report reads. 'Most startups operate with negative cashflow and when capital is raised it is to fund growth, not to provide liquidity to investors. 'Therefore, there is no liquidity to pay tax on an unrealised gain.' Labor's changes to super accounts $3m will also not be indexed and capture more and more Australians over time. AMP's chief economist Shane Oliver said the lack of indexing across the tax system, including under Labor's proposed super tax changes, was something the government needed to change. 'We should be looking at removing areas where, as far as possible, we're not indexing,' Mr Oliver told 'The ideal should be indexing things, not leaving more parts of the tax system unindexed and at the behest of what future governments might do.' The government insists its super change affects only the top 0.5 per cent of accounts, however, modelling from AMP deputy chief economist Diana Mousina suggests otherwise. 'An average 22-year-old today, who's earning average full-time earnings, will hit the cap when they get to about 62 years old on my analysis,' Ms Mousina told Sky News. 'So that's before they actually reach retirement.' She warned the government's failure to index the $3 million cap means growing numbers of Australians will eventually be drawn into the tax net. 'My estimates were actually, I think, understating the amount of people that will hit the cap because I used quite low return assumptions,' Ms Mousina said. She also flagged broader economic distortions that may result from the policy as people try to find a way around the taxes. 'If people know that their super is going to be hit, then inheritances will go elsewhere,' she said. 'More people will probably go to purchase a home, which has implications for home prices in the future. 'So people will find a way around this system to try and reduce their taxable income as much as possible.'
ABC News
3 days ago
- Business
- ABC News
Markets brace for Donald Trump's next move as the Israel-Iran conflict escalates
Wilson Asset Management's Matthew Haupt says investors are more concerned about the escalating Israel iran conflict, than the cancelled meeting, which had been scheduled between Donald Trump and Anthony Albanese.
Bloomberg
13-06-2025
- Business
- Bloomberg
Iran Attack Ratchets Up Geopolitical Risks for Traders
Israel's sweeping attack on Iran has sent a jolt through markets and again thrust geopolitical risk front and center for investors. The initial reaction was sharp, with oil prices briefly surging as much as 13%, but the moves cooled throughout the day. 'We are seeing classical risk-off moves,' said Matthew Haupt, portfolio manager at Wilson Asset Management. 'What we are watching now for is the speed and scale of the response from Tehran. That will shape the duration of the current moves. Quite often these moves fade after the initial shocks.' Here's a round up of more market reaction and analysis: From the US to Japan, governments are having to pay investors more to get them to lend money by buying bonds, and several countries are pulling back on issuing 50-, 70- and 100-year bonds just a few years after investors couldn't get enough of them. Bloomberg Originals looks at the end of the long bond era.
Irish Times
13-06-2025
- Business
- Irish Times
Stocks fall and oil prices hit three year high after Israel strikes Iran
Stocks fell along with equity-index futures and investors rushed to the safety of haven assets after Israel attacked Iran's nuclear program sites in a major escalation of tensions in the Middle East. Crude oil jumped 9 per cent, the biggest move in more than three years. Contracts for the S&P 500 index retreated 1.6 per cent, and a gauge of Asian stocks dropped 1.1 per cent. Treasuries advanced, with the 10-year yield falling one basis point to 4.34 per cent. Gold rose and cryptocurrencies tumbled. A gauge of the dollar rose 0.4 per cent after initially falling, buoyed by the shift to safer currencies even amid recent doubts about the reliability of dollar. The currency had hit a three-year low on Thursday. The airstrikes against Iran's nuclear program and ballistic-missile sites renewed a standoff between the two adversaries that risks spiralling into a wider conflict. READ MORE While the market reaction was strongest in crude oil, moves in other pockets of the market suggested that investors are watching how long the tensions will last and whether the situation escalates. 'We are seeing classical risk-off moves,' said Matthew Haupt, portfolio manager at Wilson Asset Management. 'What we are watching now for is the speed and scale of the response from Tehran. That will shape the duration of the current moves. Quite often these moves fade after the initial shocks.' Israel said the operation will continue for 'as many days' as it takes to remove the threat and Iran vowed to respond 'harshly.' The move came after repeated warnings by Israeli prime minister Benjamin Netanyahu about striking Iran and crippling its nuclear program. Iran had previously said it would inaugurate a new uranium-enrichment facility in response to censure by the UN atomic watchdog over its nuclear program. The oil futures curve strengthened on concerns that Israel's latest strike on Iran could have severe and long-lasting repercussions. The most obvious market impact was in oil as Iran is a major exporter of crude to countries such as China and India. Moves in other sectors were more measured as investors braced themselves for the possibility of a steeper selloff. 'This is very serious,' said US-based Kim Forrest, chief investment officer at Bokeh Capital Partners. 'It's surprising the market isn't down more. Do I expect things to get lower in the coming hours? Heck yeah I expect it to be lower by the time I wake up but it'll also depend who's talking and what's happening. US secretary of state Marco Rubio said the US is not involved in the air strikes and that Israel took unilateral action against Iran. The attack is coming at a time when global financial markets had recovered from a slump in April caused by Trump's tariffs. An index of global stocks touched a record Thursday, gaining more than 20 per cent from a low hit in April. The attack is 'poised to echo through global markets — not just as a geopolitical flashpoint, but more as a stark wake-up call,' said Hebe Chen, an analyst at Vantage Markets in Melbourne. 'Investors now have to face the mounting threat of multi-front tensions, where potential new hot wars and intensifying trade wars collide, reshaping risk sentiment in real time.' Separately, officials at the Bank of Japan see prices rising a little stronger than they expected earlier in the year, a factor that may open the door to discussions over whether to raise interest rates if global trade tensions ease, according to people familiar with the matter. The officials expect the central bank's benchmark interest rate to be left at 0.5 per cent at the end of a two-day gathering next week as they need to monitor developments in tariff talks globally and their economic implications, the people said. – Bloomberg
Sky News AU
05-06-2025
- Business
- Sky News AU
Labor is 'gaslighting the Australian people' on unrealised capital gains tax proposal, Geoff Wilson warns
Labor is 'gaslighting the Australian people' by claiming its proposed super tax will impact a small sliver of the population, a leading fund manager has warned as the government and the Greens close in on a deal. The Albanese government's controversial plan to double the tax rate on funds in super accounts above $3m and hit unrealised gains could soon be legislated. Labor has claimed the tax will hit just 80,000 super accounts, however, Wilson Asset Management founder Geoff Wilson, who has launched a petition opposing the plan, said by forcing Aussies to pay taxes on paper gains it will hinder investment in Australia. 'Both Anthony Albanese and Jim Chalmers - and probably most of the government - are gaslighting the Australian people by saying: 'Look, this will only impact a very small percentage of people that pay the additional tax',' Mr Wilson told Sky News. 'That's correct, but what it'll do is actually impact about how $4.2 trillion in superannuation is invested. 'We anticipate that the money will come out of self-managed super funds (SMSF), which is about $1.1 trillion, and billions of that will go into the housing market and push house prices up . ' He cautioned Aussies who use their SMSF as a low tax investment vehicle will be discouraged from funding projects and businesses in the Australian market. 'People won't want to take risk on their superannuation in in the self-managed super funds,' Mr Wilson said. 'The angel investors and the startups and the small companies in Australia that find it hard to raise capital, particularly at this point in time - that tap's going to be turned off.' He pointed to the taxing of unrealised gains in Norway that drove investment out of the country despite initial expectations it would bring in millions. 'It was only for the ultra-wealthy, they thought they were going to raise $150 million,' Mr Wilson said. 'Instead of raising that, they were minus half a billion.' He also noted the capital gains tax hike in the United Kingdom which resulted in the government taking in 10 per cent less capital gains tax revenue. 'People change their behaviour,' Mr Wilson said. 'We've done economic models, we think it'll be negative to the tune of $94.5 billion on the Australian economy.' Alongside taxing unrealised gains, Labor's super tax has drawn criticism for its failure to index the $3m threshold over time. The Greens want Labor to lower the threshold to $2m and index it to the rate of inflation. New analysis from the Financial Services Council shows that under Labor's plan more than half a million Aussies currently in the workforce will be captured by the tax. Of those impacted, more than 200,000 are currently under 30, while 135,000 are between 30 and 34 and 65,000 are between 35 and 39. The number of impacted taxpayers greatly drops off for Australians 40 and over. The Greens' proposal would hit more than 200,000 Aussies currently in the workforce and is more evenly spread across the age ranges. Financial Services Council CEO Blake Briggs urged Labor to listen to feedback from consumers, industries and economists on how the tax will impact future generations. 'The superannuation industry recognises the government has the capacity to force the new tax through the Parliament with the support of the Greens, but encourages the two parties to take a more constructive and consultative approach,' Mr Briggs said. 'The Financial Services Council encourages the Government to consult on options that would not unfairly target future generations of Australian superannuation consumers and undermine confidence in our retirement system by introducing a new, contentious tax on unrealised capital gains.'
