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RBA supports ‘crucial’ duty of care obligations for brokers

Conflict of interest disclosure should apply to “all brokers”, the central bank has noted in support of Productivity Commission’s recommendation. In its second submission to the Productivity Commission (PC), released on Wednesday (21 March), the Reserve Bank of Australia (RBA) has backed draft recommendations 8.1 and 8.2 of the PC’s draft report, which call for a duty of care obligation to be applied to lender-owned aggregators and for increased conflict of interest disclosure for brokers. “Steps to address the underlying conflicts of interest and misaligned incentives are therefore crucial to improving consumer outcomes,” the central bank noted. The RBA believes that duty of care obligation

Removal of capital gains tax exemption for foreign residents on sale of main residence

On February 8, 2018 the Australian Government introduced a Bill to remove the capital gains tax (CGT) exemption for the sale of a main residence by a foreign resident. A foreign resident for tax purposes includes Australian citizens, permanent residents and New Zealand citizens who are not a tax resident of Australia. As part of the 2017-18 Federal Budget, the Australian Government announced on May 9, 2017 a range of reforms to reduce pressure on housing affordability. The main reform that will affect internationally mobile employees is the removal of the main residence exemption for Australian CGT purposes for foreign residents. This proposed reform was the subject of a consultation process

RBA unveils interest rate decision for March

The Reserve Bank of Australia has announced its cash rate decision for March following its monthly board meeting. As widely expected, the nation’s official interest rate remains on hold at a historic low of 1.5 per cent. The rate has remained at this level since August 2016, when it was reduced from 1.75 per cent. Last month, the bank’s governor Philip Lowe suggested that rates were not about to drift upwards any time soon, amid concerns about poor wage growth and high levels of household debt. Speaking at the A50 Australian Economic Forum dinner, Mr Lowe said that Australia does not need to “move in lock-step” with other countries like the US and UK, which have already begun raising rates.

New Payments Platform: Instant bank transfers are finally here, but are they safe to use?

Australians will finally enjoy the ability to send each other money in "real time", with the launch of the New Payments Platform (NPP) today. The platform is a mixture of new processes for settling transactions between banks, guided by the Reserve Bank of Australia. But while this may make payments faster, it could also make them less safe. And data from the United Kingdom's real-time payments platform, Faster Payments, show the take-up of Australia's system may not be that strong. Although it was launched 10 years ago, Faster Payments has not yet become the most popular payment method in the UK. The most popular is still the traditional system, which takes three days to clear. Research into

 
 
 

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