We seem to have a Government as present which, when faced with a fork in the road always decides to take the "wrong one". Consequently, facing a Budget blow out of very significant proportions (too much spending and too little "mining tax" revenue") they decided to focus of the "Cookie Jar", which is every right minded politician's view of superannuation.
Despite the AUD being at 4 month lows amongst most major currencies as this article is written, Sterling has continued it's poor performance against the Australian dollar into 2013 and is at nearly 30 year lows. The chart below shows monthly average exchange rates over the last 20 years - with the AUD continuing to trend well above the long-term "average" rate.
Our last news blog focused on how to survive the high Australian dollar. That became a little less relevant this week when the international financial crises - and we do mean plural, because we're talking about the US and Europe - severely buffeted both the Australian dollar and the local sharemarket.
Over three years ago the current Australian Federal Government decided to withdraw the tax exemption available under section 23AG of the Tax Act in relation to the income earned by Australian residents overseas, if they met certain conditions. It was a monumentally stupid thing to do, and that remains the case.
Australia has one of the highest penetrations of smartphone users in the world and individuals going overseas risk extreme "budget shock" if they allow their phones to keep them automatically updated about the weather, news and sporting results, much less using them for web browsing, email and video viewing.
The chart below, borrowed from our sister site Exfin, looks at how the Australian dollar has performed against 4 major currencies - the USD, GBP, Euro and JPY - over the past two months to the end of July, 2013.