forest

APRA releases super statistics for September 2024

Superannuation Industry Hits $4.1 Trillion in Assets: September 2024 Snapshot

Strong Growth in Contributions and Benefit Payments Highlights Industry Momentum

The Australian Prudential Regulation Authority (APRA) has released its Quarterly Superannuation Performance publication and the Quarterly MySuper Statistics report for the September 2024 quarter.

Key statistics for the superannuation industry as at 30 September 2024: 

 September 2023September 2024Change
Total superannuation assets$3,599.3 billion$4,083.0 billion+13.4%
Total APRA-regulated assets$2,459.2 billion$2,829.7 billion+15.1%
Total self-managed super fund assets$924.0 billion$1,024.4 billion+10.9%
Exempt public sector superannuation schemes assets$160.0 billion$171.6 billion+7.3%
Balance of life office statutory fund assets$56.1 billion$57.3 billion+2.1%

Total superannuation assets increased by 3.7 per cent over the quarter to reach $4.1 trillion as at September 2024, of which $2.8 trillion are in APRA-regulated funds. 

Total contributions increased by 13.1 per cent to $191.3 billion in the year ending in September 2024. Of this, employer contributions increased by 11.4 per cent over the year to $140.8 billion. Member contributions increased by 18.1 per cent over the year to $50.5 billion.

Benefit payments increased by 11.4 per cent to $119.9 billion in the year ending in September 2024. This increase was the result of lump sum payments rising by 4.9 per cent to $65.1 billion and pension payments increasing by 20.3 per cent to $54.8 billion.

Key statistics for entities with more than six members for the year to September 2024:

 September 2023September 2024Change
Total contributions$169.1 billion$191.3 billion+13.1%
Total benefit payments$107.6 billion$119.9 billion+11.4%
Net contribution flows*$58.2 billion$66.0 billion  +13.5%

*Net contribution flows comprise of contributions plus net benefit transfers, less benefit payments

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artificial intelligence AI

The Economic Payoff of AI – A Long-Term Prospect

Caution Advised Amid Enthusiasm for AI Investments

A new analysis highlights the long-term potential of artificial intelligence (AI) while urging investors to approach current market trends with caution.

Key Points

  • Although AI promises substantial benefits for productivity and economic growth, the payoff is expected over a more extended period than some anticipate
  • This comes at a time when AI-driven optimism is contributing to high US stock valuations, raising concerns about market sustainability
  • The analysis reveals that current investment levels in AI, though significant, are not enough to drive immediate economic transformation.

In 2023, US AI investment reached approximately US$67 billion. Even optimistic projections for 2025 put spending at around US$248 billion, far below the US$1 trillion needed to spur major economic acceleration.

Stock valuations, particularly in the growth sector, remain stretched.

Current US market prices are estimated to be 32% above fair value, with earnings growth needing an unprecedented 40% annual increase to align with these high valuations.

Such growth rates, double those seen in past technological booms, are unlikely, especially as US economic growth for 2025 is forecasted to slow to between 1% and 1.5%.

Despite these challenges, the long-term prospects for AI remain promising.

Economic benefits from AI are expected to take fuller shape between 2028 and 2040, as the technology matures and investments yield results. However, near-term gains are limited, underscoring the importance of a cautious and well-diversified investment strategy.

Implications for Personal Wealth

This analysis underscores the importance for our financial planning clients to manage expectations and maintain strategic investment approaches.

While AI has significant potential, its immediate economic contributions may not justify current market highs. Clients are advised to prioritise diversified portfolios, maintain realistic outlooks, and be prepared for possible market corrections.

A long-term, balanced approach that aligns with individual risk tolerance and investment goals remains crucial as AI continues to evolve.

For more information on diversified investment strategies, please contact your Allan Hall Financial Advisor.

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General Advice Warning

The information contained in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs and, where appropriate, seek professional advice from a financial advisor. This site is designed for Australian residents only. Nothing on this website is an offer or a solicitation of an offer to acquire any products or services, by any person or entity outside of Australia. Robin Bell, Martin Cimino, Angelo Adam and Allan Hall Financial Planning Pty Ltd are Authorised Representatives of Consultum Financial Advisers Pty Ltd ABN 65 006 373 995 AFSL 230323. 

Source: 5 Sept 2024. Vanguard Australia FAS. Available from https://www.vanguard.com.au/adviser/learn/insights/markets-and-economy/economic-payoff-of-ai-is-coming

small business

Small business responsible lending obligations exemption extended

Government extends the small business responsible lending obligations exemption

Government Commitment to Expand Credit Access for Small Businesses until 2026

Currently an exemption allows small businesses to access loans or credit without being assessed against the Responsible Lending Obligations (RLOs), so long as there is a genuine business purpose.

The Government is extending the RLO exemption, allowing small businesses to continue to have access to the credit they need, when they need it, whether it be to hire more staff or upgrade facilities.

The evidence suggests that the exemption is working well. It is beneficial for small businesses, enables streamlined access to credit, and there is no substantive evidence of harm.

Extending the exemption will provide an additional two years of data to inform any future decisions of Government. For the purposes of the exemption, a small business is one that has fewer than 100 employees or revenue of $5 million or less in the previous financial year.

The National Consumer Credit Protection Regulations 2010 (the Credit Regulations) which facilitates the exemption will be amended to extend the exemption for the two‑year period, ending 3 October 2026.

CONTACT ALLAN HALL BUSINESS ADVISORS

Man holding much money

Industry Growth Program

Helping small businesses through new Industry Growth Program grant opportunities

Industry Growth Program grant opportunities are now open for innovative startups and small and medium enterprises (SMEs).

The Industry Growth Program works with innovative startups and SMEs. Industry Growth Program Advisers give advice to help businesses develop and commercialise new products, processes and services.

Industry Growth Program matched funding grants are now open.

The program is targeting businesses in the Australian Government’s priority areas for the National Reconstruction Fund (NRF). These areas focus on building manufacturing capability for the future.

There are 2 matched funding grants:

  1. Early-stage commercialisation grants from $50,000 to $250,000 for projects at the feasibility, proof-of-concept or prototype stage
  2. Commercialisation and growth grants from $100,000 to $5 million for projects in their prototype through to market readiness stage.

To be able to apply for the grants, SMEs first need to get advice and support through the Industry Growth Program Advisory Service. This service advises SMEs on how to develop and bring to market their innovative products, processes and services to scale and to transform their business.

Once a business has received advice from the Industry Growth Program Advisory Service, they can choose to apply for a matched funding grant. An independent assessment committee will assess eligible grant applications based on merit.

CONTACT ALLAN HALL BUSINESS ADVISORS

artificial intelligence AI

The AI Adopt Program

Funding for Artificial Intelligence (AI) Centres to help SMEs adopt AI technologies

The AI Adopt Program provides funding to establish up to five AI Adopt Centres to support small and medium-sized enterprises (SMEs) that engage in international and interstate trade to adopt responsible AI-enabled services and enhance their businesses.

Key points

  • Grants between $3 million and $5 million over four years for up to 50% of eligible project expenditure are available
  • Businesses in Australia that can establish centres to help Australian SMEs adopt AI technologies in their business can apply
  • Closing date: Monday 29 January 2024 5:00pm AEDT

Overview

The program will create a network of AI Adopt Centres, aimed at establishing a ‘front door’ for SMEs looking to explore responsible and safe adoption and usage of AI.

The objectives of the program are to:

  • support the safe and responsible adoption, implementation, and demonstration of real-world applications of AI technologies to address sectoral and local challenges
  • support SMEs to responsibly integrate AI products that assist in development of new or improved products and services
  • improve Australia’s future prosperity and our productivity growth by increasing AI adoption in SMEs and upskilling Australian workers in the usage of AI technologies
  • support a growing network of Australian AI capability that provides expertise, business and technical skills, connectivity, and access to research and partnerships. This includes engagement with the National Artificial Intelligence Centre and the Responsible AI Network to build a cohesive and comprehensive network
  • provide equity of access to SMEs nationwide who are operating within the identified sectoral area, aligned to the National Reconstruction Fund (NRF) priorities
  • create further opportunity for growth in the AI technology market through a broad increase in international demand for Australian AI capabilities
  • positively impact participation of underrepresented cohorts in technology, including women, First Nations Australians, and those with disability
  • support the Australian Government in reaching its target of 1.2 million tech-related jobs by 2030.

The intended outcomes of the program are to:

  • increase SMEs capacity to responsibly, safely and effectively utilise AI technologies by providing guidance, specialist training and access to specific talents and expertise
  • increase awareness and workforce skills within the SME sector of responsible AI adoption
  • increase SMEs productivity through using AI products to promote product development, and build efficiencies in NRF priority sectors.

Check if you can apply

You can apply if you meet the eligibility criteria. The eligibility criteria are a set of rules that describe who can be considered for this grant. You can apply if you:

  • are an eligible entity
  • meet additional eligibility requirements
  • have an eligible project
  • have eligible expenditure
  • can fund your share of the project costs, and any ineligible expenditure.

Please note that Allan Hall will be closed from 22 December and will reopen on Monday 8 January 2024.

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Australian currency dollars and coins

Industry Growth Fund

Industry Growth Program open for business

Supporting start-ups and innovative small-to-medium businesses to commercialise and grow their ideas.

Have a great idea but not sure how to turn it into a profitable product? The Australian Government’s new Industry Growth Program is here to help. As part of stage one of the program, start-ups and small-to-medium businesses can apply for expert advice to support getting their good ideas to market.

What do you get?

You will be connected to an Industry Growth Program Adviser who will provide tailored advice to support your commercialisation and/or growth project.

Once you have received this advice, you may also be able to apply for:

  • grants of $50,000 to $250,000 to support early-stage commercialisation projects
  • grants of $100,000 to $5 million for commercialisation and growth projects.

Industry Growth Program Grants will open in 2024.

Who is this for?

Innovative small and medium enterprises with commercialisation and/or growth projects in one or more of the National Reconstruction Fund priority areas.

What is the Industry Growth Program?

The Industry Growth program supports start-ups and innovative small-to-medium enterprises (SMEs) to undertake commercialisation or growth projects within the National Reconstruction Fund priority areas.

Stage 1 of the program allows SMEs to receive advice from industry experts on:

  • commercialisation and growth strategies
  • funding avenues
  • market testing
  • business models
  • building networks.

Stage 2 of the program will provide matched grant funding for SMEs who are operating in priority areas identified under National Reconstruction Fund.

How to apply

You can apply for expert advice (stage 1) now.

Applications for grant funding (stage 2) are expected to open in early 2024.

CONTACT ALLAN HALL BUSINESS ADVISORS

aga global conference athens 2023

Alliott Global Alliance Worldwide Conference 2023

The 2023 Worldwide Conference hosted by Alliott Global Alliance (AGA) in Athens surpassed expectations, drawing 155 delegates from 49 countries – an unprecedented turnout for our global network of accountants and lawyers.

AGA APAC Chair, Scott Jago, represented Allan Hall Business Advisors at the conference and highlighted the immense value of making international connections with both longstanding and the newest alliance members.

Participants demonstrated a keen readiness to address future challenges by leveraging their memberships and tapping into alliance expertise, business acumen, innovations and resources. Discussions spanned a diverse range of topics, including succession planning, business development, AI, cybersecurity, leadership, pricing and crisis management.

In the CEO’s keynote address, a forward-looking vision was painted, emphasising growth, adaptability and a commitment to a collaborative and innovative spirit within AGA. While acknowledging the importance of heritage and core values, the CEO stressed the necessity for AGA to evolve continually to remain relevant in the ever-changing global landscape.

The shift towards a more proactive, collaborative culture emerged as a recurring theme, with the CEO highlighting five strategic goals: creating more opportunities, maximising human resources, facilitating knowledge transfer, sharing innovations and building a stronger brand identity.

Service excellence also took centre stage, with attendees encouraged to extend a metaphorical red carpet to fellow members and their clients, fostering a culture of generosity and responsiveness. Addressing challenges, members were urged to find solutions for core services outside their expertise but within the AGA network.

Allan Hall’s International Services

We live in an entrepreneurial and globalised market and many businesses are expanding internationally. If you are an international business looking to start up in Australia, or an Australian business looking to expand overseas, Allan Hall has a highly skilled and experienced team in International Services. We collaborate with you to develop strategic solutions tailored to your business so you can respond to global opportunities and take on challenges in your chosen region.

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Chartered Accountants

Allan Hall Top 100 Accountants in 2022

Allan Hall named a Top 100 Accounting Firm by Australian Financial Review (AFR)

Brookvale accountants and business advisers Allan Hall have made the Australian Financial Review’s (AFR) Top 100 Accountants list for another year!

Allan Hall are award-winning Chartered Accountants and specialist business advisors. With nine Directors and around 90 staff, Allan Hall has become one of Australia’s largest non-CBD integrated firms offering tax, accounting and compliance plus a range business advisory services.

Allan Hall has carved a reputation for creating opportunity and growth that positively impacts staff, clients and the local Northern Beaches community with a focus on technology improvements.

The results speak for themselves, with Allan Hall clients recommending the firm for three Client Choice Awards in April. Then in June the Allan Hall team were recognised with a Wellness Program of the Year win at the Australian Accounting Awards.

This year, Allan Hall is one of only 18 ‘Top 100’ independent Sydney accounting firms to make the cut, ranked again in the top 50. Director Scott Jago said they were thrilled once again to be recognised amongst the very best accounting firms in the country.

“This is a culmination of hard work, perseverance, a dynamic director group, wonderful staff and, very importantly, great clients.”

About the AFR Top 100 Accounting Firms

Each year the AFR surveys Australian public practice accountants and compiles their rank of top-performing firms across the country. The AFR invites comment on financial performance and demographic changes over the past year, along with other business and economic-related questions. This year the AFR survey focussed on workforce issues, regulatory red tape and the challenges of running a business.

Review the AFR’s Top 100 Accounting Firms 2022 here — please note this is subscriber-only content.

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businesswoman

New online hub helping women succeed in business

NSW launches online hub to support female entrepreneurs

It will now be easier for women in NSW to start, run and grow their own businesses, thanks to the State Government’s new one-stop shop Women in Business Hub going live today.

Treasurer Matt Kean said the online Hub was a recommendation of the Government’s Women’s Economic Opportunities Review to improve women’s financial security through increased workplace participation.

“There are an estimated 800,000 small businesses in NSW, accounting for more than 98 per cent of all businesses in the state but just 33 per cent are led by women,” Mr Kean said.

“The Hub will connect women with personalised support, a ‘women in business’ toolkit, opportunities for networking, training, grants, funding and mental health support to enable more women to start and grow their own business.”

Minister for Women Bronnie Taylor said the 2021-22 NSW Intergenerational Report identified that although women’s participation in business ownership is projected to increase, it is still expected to remain below that of men.

“As Minister for Women I’m thrilled that the Women in Business Hub is live. We have created the Hub to help women overcome the initial challenges of starting and developing their own businesses,” Mrs Taylor said.

“The Hub will connect women to trusted resources including the Women’s Financial Toolkit and the Return to Work Toolkit which was designed to help women easily navigate reliable resources.” 

Minister for Customer Service and Digital Government Victor Dominello said the Hub will evolve over time, ensuring women receive targeted, bespoke information at their fingertips.

“By consolidating the relevant information and resources under the one roof at Service NSW, customers will now spend more time running their business and less time on bureaucracy,” Mr Dominello said.

“Whether you’re from Western Sydney, the bush or the coast, we’re here to support you through your business journey.” 

The Women in Business Hub will provide female business owners information on grants, funding, training education, networking, mentoring, mental health support as well as links to assistance including:

  • Service NSW for Business Concierge — can help with support and requirements across the NSW Government
  • Business Connect — provides independent business advice including how to start, grow or relaunch a business
  • NSW Small Business Commission — provides support, advocacy and mediation services
  • TAFE NSW’s Women in Business initiative — a fully subsidised online program for women who are looking to establish a micro business, a small business or who are operating or growing a business.

The NSW Government has committed $16.5 billion across 10 years as part of the 2022-23 Budget to grow economic opportunities for NSW women and to support early childhood education and development.

For more information visit the Service NSW website.

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