Price Comparison Australia

FGR granted Government Approvals for Commercial Graphene Facility in WA, Australia

2017-07-12T04:56:00.001-07:00

FRG gets receipt of Government Approvals for Commercial Graphene Production Facility

Highlights

• Works Approval has been granted by the Department of Environment Regulation, enabling construction of a graphene production facility at Henderson to commence and be operational in Q4 of 2017.

• FGR will be the first ASX-listed company to attain a commercial graphene production capability.

• The production facility will be funded from existing cash

balances.

• Initial capacity will be in the order of 15 tonnes per annum of saleable graphene, based on a single shift operation, five days per week. Multiple shifts could escalate production rates to globally significant levels in the event suitable sales contracts are negotiated.

Works Approval

First Graphite (ASX: FGR) is pleased to advise it is now moving towards the construction of a commercial graphene production facility, having been granted a Works Approval by

the Department of Environment Regulation (DER) for its facility at Henderson, Western Australia.

The Works Approval results from the submission of an extensive application to the DER. FGR’s independent laboratory testing demonstrated the controls to be used resulted in minimal

emissions with these being significantly below the levels set by the regulations. These approvals also account for the necessary occupational health and safety controls.

Information source

Nickel Gains Most in Week on Signs Producers Are Cutting Output

2015-08-04T05:28:00.001-07:00

Nickel climbed, leading increases in industrial metals, amid signs the slump in prices is forcing some producers to curtail production.

Global nickel output is likely to fall as some producers hit a “pain threshold” on lower prices, Dan Lougher, chief executive officer of Western Areas Ltd., said in an interview on Tuesday. Standard Chartered Plc estimates as much as 65 percent of nickel production is unprofitable at current prices. Metals also rallied as China planned a bond program for construction stimulus, which may improve prospects for raw-material demand.

“I still expect a lift in nickel prices from this level going forward,” Casper Burgering, an analyst at ABN Amro Bank NV in Amsterdam, said by phone. “The second half should be better.”

Nickel for delivery in three months advanced 1.3 percent to $10,885 a metric ton by 12:31 p.m. on the London Metal Exchange after rising as much as 1.9 percent, the most since July 28. It’s down 28 percent in 2015 and is this year’s worst performer among the main industrial metals on the LME.

Copper rose for the first day in four after sliding to a six-year low on Monday. The metal is close to a bear market after falling 19 percent from a peak on May 5. Zinc climbed as much as 1.6 percent after orders to remove the metal from warehouses tracked by the LME surged 54 percent.
Bond Stimulus

China is planning at least 1 trillion yuan ($161 billion) in bonds, and potentially a multiple of that, to fund construction projects to address the struggling economy, according to people familiar with the matter. The bond program is taking shape amid fresh signs that growth is running at less than an official target of about 7 percent for this year.

“Prices have lifted for all base metals this morning quite steeply,” Burgering said. “It could be that the market is hoping for some economic stimulus.”

Metals have declined to the lowest since 2009 amid the commodity rout. Oil is in a bear market, while platinum sank 1.7 percent on Tuesday to a six-year low and palladium dropped to an October 2012 low. On the LME, tin and lead increased Tuesday, while aluminum was little changed.

MRL Heads of Agreement to Pursue Graphene Commercialisation Outcomes

2015-08-03T05:55:00.001-07:00

Heads of Agreement (“HoA”) signed with Imagine Intelligent Materials Pty Ltd (“IMAGINE”), an Australian graphene enhanced advanced materials solutions company.

The agreement will identify commercial applications for MRL’s graphite and graphene.

Access to graphene testing and characterisation through IMAGINE’s Certification Program

Collaboration with leading Australian universities with whom IMAGINE has existing relationships, for up-scaling of graphene testing and characterisation of graphene products.

Working with IMAGINE’s certified partners and customers pursuing a strategy to access the full spectrum of the graphene value chain through.

Following on from the ASX release of 13 May 2015, in which the Company disclosed that the University of Adelaide had achieved outstanding results on the recovery of graphene from MRL’s highgrade graphite ore, the directors are pleased to announce a significant step in the process to maximise the return on its Sri Lankan Graphite Projects.

The signing of the HoA between MRL and IMAGINE will give the Company access to a network of advanced manufacturing enterprises and scientific expertise that would not normally be available to a junior mining company. MRL’s graphite projects in Sri Lanka have very high grade vein ore.

The key challenge in the generation of commercially valuable graphene is the ability to produce consistent and replicable graphene functionalised to meet the requirements of industrial customers. IMAGINE brings knowledge of high volume market applications the understanding of solutions development processes and its own intellectual property.

The proposed Co-operative agreements between MRL and Imagine are intended to maximise revenue opportunities for both parties through develop premium price graphene solutions for high volume industrial markets.

Chinese Nickel Imports Jump to 6-Year High as Shortage Looms

2015-07-22T15:38:00.001-07:00

Chinese Nickel Imports Jump to 6-Year High as Shortage Looms

China imported the most refined nickel in six years in a further sign that the world’s biggest consumer is drawing on global supply. Futures rose 2.4 percent in London.

Inbound shipments of the metal used to produce stainless steel surged 67 percent to 38,545 tons in June from the previous month, the highest since July 2009, and were more than three times the level a year earlier, Chinese customs data show.

Goldman Sachs Group Inc. and Citigroup Inc. are bullish on prices amid prospects for rising Chinese demand. Macquarie Group Ltd. sees a global shortage which may cut inventories further from a record. Stockpiles in London Metal Exchange sheds have already fallen to the lowest in almost two months. Some imports may have been for delivery against the first nickel contract to expire on the Shanghai bourse, said Celia Wang from Tianjin Zhongwei Group’s investment department.

“Huge imports arrived in China from LME warehouses as traders seek profits by delivering against the first settlement of a Shanghai nickel futures contract,” said Wang, the general manager. “Refined nickel imports are expected to remain at a high level into July.”

The Shanghai Futures Exchange started nickel trading in March and the July contract was the first expiry. The bourse is accepting metal from Moscow-based OAO GMK Norilsk Nickel, the top supplier, for settlement to ease concern about shortages.
Goldman, Citigroup

Prices climbed 2.4 percent to $11,980 a ton in London on Tuesday, the highest level since July 6, before trading at $11,875. Goldman expects rates to increase to $14,000 as the market heads toward a deficit next year, analysts including Yubin Fu wrote in a report dated July 6. Citigroup predicts a 2015 average price of $13,960 and maintains a bullish outlook.

Imports of ferronickel rose more than threefold on year to 62,511 tons, another sign China is seeking foreign supply.

An Indonesian ban on exports of nickel ore at the start of 2014 spurred China to stockpile the material and boost supplies from the Philippines, the only other major source. Inventories of nickel ore in China are now at their lowest since September 2011, according to data from Beijing Custeel E-Commerce Co.

China imported more than 100,000 tons of refined nickel in the first half for the first time since 2009 when buyers took advantage of a slump in demand after the financial crisis.

Australian Households Chase Sun to Lead World on Solar Adoption

2015-05-17T02:44:00.001-07:00

Australian Households Chase Sun to Lead World on Solar Adoption

Australian households are world leaders in solar power installation, according to new figures from Australia's peak industry body representing the fossil fuel and renewable energy sector.

The Energy Supply Association of Australia, representing the fossil fuel and renewable energy sector, has sourced data from around the world revealing household solar photovoltaic (PV) penetration in Australia is way out in front of any other nation.

The report shows almost 15 per cent of Australian households have adopted the technology to power their homes.

This is more than triple that of Germans, who are second on the world stage and typically thought of as the most prolific solar adopters.

The report breaks the data down to countries and jurisdictions illustrating where the world's most enthusiastic installers of small-scale solar energy are located.

"Germany, the US, Spain and others are held up as being at the forefront of solar power, but it is Australia, where households have taken it upon themselves to install solar PV, that easily lead the world when it comes to solar penetration," the ESAA report states.

The ACT had 15,637 household installations as of September last year, according to ActewAGL figures. Based on 2011 census data this put the ACT at about 10 per cent of households connected to solar – South Australia leads the way with almost 25 per cent of households connected to solar PV.

Although Australia leads the charge on small-scale installations, Germany is out front with utility-scale solar installations.

In terms of total solar energy produced per million people, Germany's capacity is about triple that of Australia's.

Australian Solar Council chief executive John Grimes said that was due to policies that had focused on domestic solar systems.

"The economics are compelling," Mr Grimes said. "The cost of the technology continues to fall at such a rate that it is already much cheaper to install solar than it is to buy electricity from the grid. And with the advent of cheap energy storage technology – battery technology – that really closes the loop.

"People like the Energy Supply Association and others should rightly be thinking about this. If they don't start to embrace the technology as opposed to resist it, their members companies – the big utilities – are set to become the Kodaks of the future."

See more at: http://australiasolar.blogspot.com.au/2015/05/australian-households-chase-sun-to-lead.html#sthash.248JT0Dp.dpuf

Farmers Own Milk A Huge Success With Customers!

2015-05-01T19:25:00.000-07:00

Woolworths has today announced that the trial of Farmers’ Own milk produced in the Manning Valley has been an enormous success and that this great product will now be available in 105 stores across New South Wales.

This means that Woolworths is directly linking more than 2.5 million Woolworths customers with committed and innovative dairy farmers from the Manning Valley of New South Wales and milk straight from their farms.

In a first for Woolworths milk, the supermarket is working directly with the farmers. After a highly successful trial period, the Manning Valley farmers will now have greater access to this huge customer base for their product.

The milk is permeate free and is available in three varieties; full cream and reduced fat homogenised milk and full cream unhomogenised milk with the cream on top. It truly is the farmers’ own milk, just how they like it.

The trial has run for since October 2013 and Woolworths has seen strong sales, particularly in the Manning Valley stores.

Woolworths Head of Trade, Tony De Thomasis, said the experience has proven to be great for the farmers, great for Woolworths, but most importantly great for customers.

“We are extremely pleased about how well our customers have received Farmers’ Own milk. We know they appreciate a great local product.

“The three varieties have sold very strongly and the return of unhomogenised milk with the cream on top has been a hit. They love the great tasting, fresh milk with a richer, fuller flavour.

Manning Valley dairy farmer, Tim Bale, said: “We’re delighted that this trial has gone so well and that now we’ll be able to deliver our fresh, great tasting milk into a huge market through 105 Woolworths stores.

“We know that customers want farmers to get a fair price for their produce and our direct relationship with Woolworths is delivering that,” said Mr Bale.

The relationship gives the farmers end-to-end transparency from shed to shelf, a longer term contract and a closer relationship with their customers.

http://www.woolworths.com.au/wps/wcm/connect/webSite/Woolworths/about+us/woolworths-news/farmers+own+milk+a+hit+with+customers

My Say On Farmers Own Milk:

Farmers Own unhomoginised Full Cream Milk Won the Consumer Innovation Product of the year award.. congratulations for bringing high quality inexpensive ($2.70 for a 2ltr) milk to the market..excellent product!

Rolling out all over Australia.. a Woolworths near you.

Now that the NZ$ is close to parity.. a very real opportunity exists to import to NZ and attack the #Monopsony and relieve the consumer nightmare that is NZ milk

http://www.farmweekly.com.au/news/agriculture/cattle/dairy/farmers-own-milk-hits-woolies-shelves/2714940.aspx

Using Super to Buy First Home a 'Pressing National Issue' Says REIA

2015-03-08T05:22:00.001-07:00

Federal Treasurer Joe Hockey appears to have taken the real estate industry lobby group's advice in suggesting people should be able to use their superannuation to buy their first homes, as the peak superannuation body urged caution for such an approach.

The Real Estate Institute of Australia outlined the radical idea in its budget submission to Mr Hockey last month, with the treasurer saying Australians ought to start thinking seriously about the way in which their super savings can be used in the future because people were working and living for longer.

"We are prepared to look at a diverse range of proposals to help young Australians buy their first home," Mr Hockey said, suggesting that super could be used for a deposit on a first home or job retraining.

His comments were quickly criticised by Labor and some economists, but REIA chief executive Amanda Lynch said using super to help pay for a first home could make housing more affordable and build retirement savings.

"We believe that owning a home is the biggest generator of long-term financial security for Australians and the earlier you can access the housing market, the more secure your retirement will be because most Australians aspire to have paid of their home before they retire," Ms Lynch said.

Shadow Treasurer Chris Bowen rejected the suggestion, saying it would have the opposite effect.

"[The] plan would have the likely effect of not only undermining retirement incomes but also driving housing prices up further and making it harder for first-home buyers," he said.

Association of Superannuation Funds of Australia chief executive Pauline Vamos said the plan would benefit the rich far more than the poor.

"There are significant equity issues when it comes to allowing the release of concessionally taxed superannuation contributions for home equity," she said, referring to higher income earners paying 45 cents in the dollar in income tax but only 15 cents in the dollar on superannuation contributions.

They would be able use concessionally taxed super money to buy a house and then top up their super, again at a low tax rate.

"There significant equity issues when it comes to allowing the release of concessionally taxed superannuation contributions for home equity," she said.

But Ms Lynch stood by the proposal.

"The fact about buying a house is that you are actually saving all that equity and the compounding interest will be beneficial. To say that investing in superannuation, which is mainly skewed towards shares, is a safe proposition doesn't hold up to scrutiny.

"In the years since the GFC we have actually seen super being more of a financial risk than previously and a lot of people close to retirement have found their super balances have been dwindling."

Private Health Insurance Pain as Households Struggle to Cope With Rises

2015-03-08T04:53:00.001-07:00

Private health insurance pain as households struggle to cope with rises

Private health insurance premiums are set to rise an average 6.18 per cent on April 1.

HALF of Australia’s private health insurance customers are thinking about downgrading their cover in an effort to combat soaring premiums.

Ahead of an average health insurance rise of 6.18 per cent on April 1, new research by consumer network One Big Switch has found that two-thirds of households have had trouble paying their bill.

Its survey of 40,000 consumers also found that many people are making sacrifices to stay insured, including reducing their level of cover, increasing their excess and spending less elsewhere.

One Big Switch spokesman Joel Gibson said this year’s premium hike was the second consecutive annual bill rise of about $300.

“Health insurance is one of those bills that really gets under people’s skin,” he said.

“Sooner or later, something’s got to give, or thousands of consumers will dump their private cover and fall back on the public health system.”

Consumers who \dump their private cover will fall back on the public health system. Picture: Publishing Ingram.

Mr Gibson said some people were trading away certain treatments, such as heart or eye treatments.

MORE: The government’s health fund rebate slashed costing families $120 a yea

He cautioned about quitting private health cover outright. “There’s the danger that if you drop it altogether, because you can’t afford it, it becomes harder to get back in if you are over 30.”

The Federal Government’s Lifetime Health Cover rules penalise people with a loading of 2 per cent for every year after age 30 that they don’t have hospital cover, up to a maximum 70 per cent loading. There are also penalty taxes for middle and higher income earners who don’t take out hospital cover.

“Australians want the peace of mind that comes with private health insurance, but many are now being priced out of the market,” Mr Gibson said.

Medibank chief customer officer Laz Cotsios said customers should review their health insurance policies at least annually.

“A cover review allows people to consider their situation and check that their cover still suits them,” he said.

Medibank branch, Adelaide Street, Brisbane. Medibank was floated on the stock market today. Customers discuss their impressions of the float. Photo: Claudia BaxterALSO: Pay doctors more but only when they provide the right care say health funds

“Don’t forget that you can prepay your health insurance to lock in your current premium.”

More than 20,000 people have signed a One Big Switch petition calling for more affordable private health insurance, and the consumer network has joined forces with News Corp Australia in a campaign to use people power to unlock a group discount offer from a health fund.

RELATED: Mooted private health insurance ‘excess’ rise could double the cost of an operation

Last week was the first week of the four-week Big Health Insurance Switch campaign and more than 45,000 people signed up. Joining is free and there is no obligation to accept any offer that is presented.

The Big Health Insurance Switch

For more details visit moneysaverhq.com.au. One Big Switch and News Corp Australia earn a commission on any offers that are accepted.

Perth House Prices Fell 2.3 percent in February

2015-03-03T21:13:00.001-08:00

House values across Perth fell by more than 2 per cent through February despite the cut in mortgage interest rates.

Figures
from RP Data-CoreLogic showed values in Perth dropped by 2.3 per cent
to be 2.9 per cent down since the start of the year.

The
fall was not confined to houses. The value of units dropped by 0.4 per
cent in the month to be off by 0.9 per cent this year.

Over
the past 12 months house value sin Perth are up by just 0.7 per cent,
well short of inflation, while unit values have fallen in nominal value
by 1.9 per cent.

Only Hobart has a softer house market than Perth with values on the Apple Isle up by 0.6 per cent.

The fall came despite the Reserve Bank slicing official interest
rates to their lowest level on record. Banks cut their mortgage rates in
line with the Reserve.

Nationally, prices edged up
by a modest 0.3 per cent but almost all of the growth was in Sydney
where house values lifted by 1.6 per cent.

Over the past year, Sydney values have climbed by 14.7 per cent.

RP’s head of research Tim Lawless said there had been step down in growth over the past three months.

He said outside of Sydney, lower interest rates were failing to drive up values.

“We might not see the lower interest rate environment stimulate the housing market as much as it has in the past,” he said.

“Weaker
jobs growth, higher unemployment, declining affordability, low rental
yields and political uncertainty are all factors that could dent
consumer confidence and provide some counter balance to the rate cuts
and quell any additional market exuberance.”

The Reserve Bank board meets tomorrow with markets putting the chance of a rate cut at 50-50

Australian Dollar Tumbles on RBA Cash Rate Cut

2015-02-03T14:16:00.001-08:00

The Australian dollar tumbled by more than one and a half cents on the Reserve Bank of Australia's decision to cut the cash rate to a historic new low.

The local currency hit a fresh five-and-a-half year low to US76.57¢ on Tuesday afternoon, down from US78.16¢ just before the release. The reaction followed the central bank's decision to cut the cash rate by 25 basis points to 2.25 per cent after 18 months of holding the rate steady.

Despite the sharp fall in the Aussie dollar – nearly 20 per cent in the past six months – the Reserve Bank said the exchange rate remained high.

"The Australian dollar has declined noticeably against a rising US dollar over recent months, though less so against a basket of currencies," the Reserve Bank said in its statement on monetary policy.

"It remains above most estimates of its fundamental value, particularly given the significant declines in key commodity prices. A lower exchange rate is likely to be needed to achieve balanced growth in the economy."

Market forecasts the exchange rate to continue to fall. On Commonwealth Bank of Australia figures, the local currency is expected to fall towards 73¢ by June this year, but the bank's senior currency strategist Elias Haddad said there was a risk the Australian dollar will fall even further and the bank will be revising its forecast.

"We expect a further downside movement here, not just against the US dollar but also on the crosses, due to narrowing interest rate, falling commodity prices and still unimpressive Chinese economic data," Mr Haddad said.

National Australia Bank will also be revising its forecast in light of Tuesday's tumble. Back in November last year the bank forecast the Australian dollar to hit US78¢ by the end of 2015. NAB global co-head of FX strategy Ray Attrill said the bank will be reviewing its forecast after the central bank releases its statement on monetary policy on Friday.

"The market already priced in the expectations of a rate cut, but the currency still lost. It shows the market is still prepared to sell," Mr Attrill said.

In an exclusive interview with The Australian Financial Review in December last year, Reserve Bank governor Glenn Stevens said an appropriate level for the Australian dollar would be US75¢.

Mr Attrill said the currency could be heading towards the US70¢ mark, given the fall in the commodity prices since December.

"You can argue, if US75¢ was about the right level in mid-December, and taking into account what's happened with commodity prices generally, maybe US70¢ is more appropriate," he said.

A batch of data fuelled RBA jitters earlier on Tuesday. The Australian dollar jumped by more than third of a cent to US78.30¢ after slightly better-than-expected economic data was released: building approvals slipped 3.3 per cent in December (better than the predictions of a 5 per cent slide) and trade deficit narrowed to $436 million in December, beating expectation of more than $850 million.

#AustralianDollar #RBA #interestrates

- See more at: http://investmentaustralia.blogspot.com.au/#sthash.blpVDKN0.dpuf

Don't Get Burnt by The Property Market

2014-08-30T20:48:00.001-07:00

Don't get burnt by the property market

How seriously should property investors take recent warnings that Australian property prices are 20 per cent to 30 per cent higher than they should be and that there is an impending apartment glut in 2017?

Whatever the fundamental basis for these and similar warnings, existing and new property investors need to be aware of the potential downside.

The basic issue is to understand the risks involved with investments already owned or being purchased. While less popular for purchases of listed assets including shares and property trusts as well as managed funds, large levels of borrowing are widely used to help acquire direct property holdings.

This high level of gearing helps to drive up property prices in good times such as the present and down when markets turn down, for example due to increased levels of vacancies and/or falling rents. Currently, strong foreign buying interest, low interest rates and a shortage of available stock is forcing and encouraging new investors to bid up prices.

While it may be some time off, a similar downward ratchet in prices will start when interest rates rise again and when new housing developments result in an oversupply in the major locations. Compared with share market falls which can be brutal and swift, downward property price movements are generally protracted as sellers holding out for higher prices ultimately are forced to lower their expectations.

A special feature of the apartment market can, however, result in distressed forced sales. This is when a large number of off-the-plan sales negotiated before or during construction fall through. A recent example of this occurring is the setback in the Canberra apartment market due to over-supply and reduced public sector employment opportunities.

In this situation, a significant percentage of off-the-plan buyers were either unable or unwilling to complete their purchases. The resulting forced sales depressed asset valuations and made it more difficult for heavily geared purchasers to obtain credit to meet their commitments.

The key message for individual investors is to be aware of these and other risks before entering into off-the-plan contracts. While one benefit of off-the-plan purchases is what can often be a lengthy time lag before money is required to complete the purchase, this can be a negative if personal circumstances change or property valuations fall before the settlement date..

The chances of both of these changes increase with the amount of time before completion. The risks are also greater in situations such as the present time when contracts are entered into in a buoyant market. So even if the warnings of problems ahead don't prove accurate, they are a timely reminder to avoid becoming over-committed to a future large heavily geared property purchase.

AustralianSuper to Manage Equity In-house

2012-09-09T23:00:00.001-07:00

The Australian has reported that AustralianSuper, Australia's largest industry superfund, is planning to manage some of its $15 billion of Australian equity investments, which are currently managed externally.

AustralianSuper head of equities, Innes McKeand told The Australian that the fund was 'in the process of putting a platform in place' to oversee some of its Australian equity investments.
The move would be a blow to the funds management industry which is already struggling with low volumes, soft equity markets and fund outflows.

The moves come as active equities managers face pressure to perform in the face of a shrinking number of investment mandates, driven by super fund mergers and a shift to other asset classes.
Mr McKeand told The Australian that while AustralianSuper would continue to award mandates to external managers, its internal platform was being built 'to cope with a significant amount of funds' to be run by fewer than 10 fund managers.

It is thought that other funds such as UniSuper and Telstra Super are considering a similar move due to their build-up of an in-house stock-picking team.

Internet Australia: Costs 'Could Rise' With NBN Plan Switch - Internet Australia

2012-09-09T17:02:00.001-07:00

The chairman of NBN Co, Harrison Young, hopes to broaden the debate about the merits and cost of the government's National Broadband Network in a public speech today.

Mr Young will argue that changing the network design to the Coalition's preferred "mix of technologies" could increase the long-term costs of the network and fail to deliver key policy targets, at a forum about “Australia's Digital Future" and hosted by the Committee for Economic Development of Australia (CEDA) in Sydney.

Mr Young's speech outlines three "interwoven" aspects of the NBN – a super-fast broadband network that will cost about $40 billion to construct - the telecommunications market structure, infrastructure and future applications and benefits of the network, according to a draft copy obtained by Business Day.

While saying he wants to stay out of the debate about whether fibre to the premises is needed when fibre to the node technology exists, Mr Young says that “if you retain Telstra infrastructure as part of the national broadband network, even just the last bit, you will not have accomplished the separation of [Telstra] wholesale from retail that was a major objective of Project NBN”.
A fibre-to-the-premise model runs fibre optic cables all the way from an exchange into households, while fibre-to-the-node only runs fibre cable from the exchange to an air-conditioned street side cabinet – the node - serving dozens of premises but keeping the copper wire between the node and households.

Mr Young also says fibre-to-the-node is more expensive over the long term than NBN Co's current design.

“The apparent cost advantage of fibre to the node decreases as you lengthen the time frame you look at. In the long run, as Keynes famously said, we are all dead. Estimating costs is an engineering problem. Deciding on the relevant time frame is a policy question.”

Opposition communications spokesman Malcolm Turnbull has promised a Coalition government would deliver “very fast broadband sooner, cheaper and more affordably” using a mix of technologies, including fibre-to-the-node.

A future Coalition government would also keep the pay-television and internet cable owned by Telstra and Optus, which is connected to about 1.2 million households in wealthy inner-city areas.

NBN Co has struck commercial deals with Telstra and Optus to buy their cable customers and decommission the cable, a move that is heavily criticised by the Opposition.

But Mr Young will today tell the CEDA audience that since the cable networks were only built in suburbs containing Australia's wealthiest households, forcing NBN Co to keep to cables and not build fibre would create the “ironic situation that the wealthiest suburbs have the lowest-quality broadband in the country”.

NBN Co's super-fast fibre network will start operating at 100 megabits per second, but can be upgraded to 1 gigabit per second and faster speeds in coming years. The existing cable network does not have the same upgrade capacities.

Mr Young, who is a director at the Commonwealth Bank, former director at the Bank of England and former chair of Morgan Stanley Australia, lays out the policy and market reforms the current Labor government wants to achieve and says natural monopolies can be the most most efficient use of society's resources.

Using the example of bridges, he says building two toll bridges right next to each other would halve the flow of traffic on each bridge and push tolls to cover the owner's construction costs higher than a single bridge-owner would have to.

Further, NBN Co will not become another Telstra because it is not allowed to sell services at the retail level, he says.

“The problem with Telstra is not that it is a regulated monopoly supplier of wholesale services but that it has been able to behave like a monopolist in the provision of retail services, which is not a natural monopoly.”

Mr Young will be speaking alongside the chair of Regional Development Australia, Dave Abrahams, managing director of IBM in Australia and New Zealand, Andrew Stevens, head of customer relationship management and Medibank, Dermot Roche and head of telecommunications research at Ovum, David Kennedy.

Australian Capital Cities: Where's Hot, Where's Not

2012-09-03T17:17:00.001-07:00

DARWIN was Australia's best-performing capital city for property values during the past quarter - up 5.2 per cent - and showing year-on-year growth of 4.2 per cent, according to the latest figures from RP Data.

The RP Data-Rismark August Hedonic index shows Adelaide is the weakest performing capital city, with the change in dwelling values sliding 2.2 per cent during the past three months.

The monthly figures were more optimistic though for Adelaide, showing 1.4 per cent growth for August.

Sydney and Melbourne both recorded only 0.1 per cent growth for the month, but are performing better for the quarter, at 2.4 per cent and 2.5 per cent respectively.

RP Data research director Tim Lawless, said the figures showed a flat winter season that could be the foundation of a strengthening Spring.

Combined with the lowest transaction levels since the late 1990s, prices could also soon be expected to drift upwards after years in the doldrums.

"Spring is going to be better than last year,” Mr Lawless said.

"This is the first time that we have seen total listings across the capital cities the same as they were last year.”

Mr Lawless said lower listing levels were good news for vendors because it meant there was not as much choice in the market which could improve prices.

"In November last year, the listings were 30 per cent higher than they are now,” Mr Lawless said.
"They are currently only 0.5 per cent higher than last year, which means that we have a good benchmark level."

From a supply perspective, it’s a sign that there aren’t as many homes on the market at the moment and that means homes are selling a bit faster and vendors discounting a little less but transaction numbers stabilising.”

Mr Lawless said transaction volumes were at their lowest since 1998 - and were currently lower than during the Global Financial Crisis.

"At the moment based on June data, transaction volumes are 7 per cent lower than the same time last year,” Mr Lawless said.

"We’re averaging 30,000 sales each month and that’s fairly steady across 2012.”

But the lack of stock was being treated calmly by potential buyers who are showing patience about finding exactly the right home.

"A lot more people are attending local houses and showing interest in the market place but there is still not a level of urgency that will push buyers into making a purchase decision rapidly,” Mr Lawless said.

“Purchase decisions won’t be rushed, buyers are playing vendors off against each other and are negotiating pretty hard.”

Figures from the data showed:

- Hobart prices grew 3.9 per cent for the year to date
- Sydney prices grew 1.9 per cent for the year to date
- Darwin prices grew 8.4 per cent for the year to date
- Brisbane prices grew 0.6 per cent for the quarter
- Perth prices lifted just 0.2 per cent for the quarter

Australia Mortgage: House Prices Flat in August

2012-09-02T22:16:00.001-07:00

AUSTRALIAN house prices were flat in August, although Adelaide and Canberra experienced some growth.

House prices in Perth and Hobart fell more than one per cent in the month and there was little price movement in Sydney, Melbourne and Brisbane, the RP Data-Rismark August Index showed.
Adelaide and Canberra prices increased more than one per cent, while Darwin home values fell half a per cent.

The index posted a 1.6 per cent increase in Australian home values over the past three months but a fall of 2.4 per cent over the year to August.
During the quarter to August, Darwin was the best performing capital city, registering 5.2 per cent growth.

This was followed by Melbourne at 2.5 per cent, and Sydney at 2.4 per cent.
Perth and Brisbane recorded marginal growth of 0.2 per cent and 0.6 per cent respectively over the three-month period.

RP Data research director Tim Lawless said Sydney dwelling values increased in five of the past eight months, helping to provide a cumulative capital gain of 1.9 per cent over the year to date.
"Sydney is proving to be one of the most consistent performing capitals this year," he said.

A rebound in Melbourne was also encouraging, given more worrying signals earlier in the year.
"Improved affordability since June has helped dwelling values rise across every capital city over the three months ending August 2012, apart from Adelaide," Mr Lawless said.

"The big question is, can this growth be sustained?"

Mr Lawless said the spring selling season would be a good litmus test.

The highest rental yields for houses in the quarter were in Darwin at 5.8 per cent and the lowest yield were in Melbourne at 3.6 per cent.

No Grounds To Give Up Coffee - Coffee Price Comparison Australia

2012-09-02T01:11:00.001-07:00

HOBART coffee lovers are paying up to $1 more per cup of takeaway cappuccino than those in Sydney.

Local prices are also on par with Perth, which has taken the mantle of the most expensive major city interstate, new statistics reveal.

But local barristas say their customers base their decisions on their tastebuds not their wallets.

A recent survey by Gilkatho, a coffee machine retail company, has found the average price for a takeaway cappuccino in Australia's major capital cities varies from $3.36 in Melbourne to $3.87 in Perth.

A Mercury survey of Hobart coffee shops yesterday showed prices were all generally above the $3.47 national average.

Prices for a regular takeaway cappuccino in Hobart varied from $3.50 to $4.35.

Doctor Coffee owner Craig Gibson said yesterday there was a number of reasons why coffee can be more expensive in Tasmania.

Transport costs were a big reason, he said.

"A lot of our coffee comes from Melbourne, where a lot of the good speciality roasters are based," he said.

Mr Gibson said most of his customers were not shopping on price.

"Ninety nine per cent of our customers come here because of the quality," he said.

Di Bella coffee managing director Phillip Di Bella said yesterday it costs about $1 in ingredients to make a cup of coffee and $2 including labour.

"As labour is the main cost in making a coffee and pay rates vary from state to state, this can change the cost to make a coffee considerably," he said.

"Rents also vary depending on the location of the cafe, city and space."

Australia - Broadband Market - Overview, Statistics and Forecasts - 2012

2012-08-19T02:40:00.001-07:00

(http://www.researchandmarkets.com/research/nf2r64/australia_broadb) has announced the addition of the "Australia - Broadband Market - Overview, Statistics and Forecasts" report to their offering.

In this report we provide an overview and analysis of the fixed and mobile broadband market including infrastructure statistics, major internet service provider statistics and information on the key providers. BuddeComm's 2012 Australia Broadband Market - Overview and Statistics annual publication profiles key sectors in Australia's broadband market.

This report also provides a statistical overview of the broadband market in Australia and includes an overview of the major network operators, wholesalers and retail service providers. The report also examines the developments in HFC networks, while the statistical sections of the report provide historical data as well as forecasts relating to fixed and mobile broadband usage, internet service providers and the business broadband market/sector.

Market highlights:

- The internet-connected home is nearly ubiquitous across Australia, with over 80% penetration rate predicted by end-2012;
- Total value of the broadband markets is now more than $4 billion;
- Cloud-based usage by business increasing as backups and shared data come from faster connections;
- Online businesses are sustaining higher financial returns into 2012;
- Data usage by users increases by 80% year-on-year in 2011 and is set to double as more broadband-enabled devices are used;
- Connected or smartTVs will see a very rapid uptake over the 2013-2015 period;
- An overview of new trends and existing technologies is provided;
- Penetration rate of HFC broadband subscribers is under 10% of the total broadband market in Australia;
- Key usage trends for the fixed broadband market.

Key Topics Covered:

1. Statistical Overview
2. The National Broadband Network (brief overview)
3. Business Market Statistics
4. Residential Market Statistics
5. DSL Market, Overview, Statistics and Providers
6. HFC Cable Networks
7. Mobile Broadband - Statistical Overview and Forecasts
8. Market Forecasts

For more information visit http://www.researchandmarkets.com/research/nf2r64/australia_broadb

Superannuation Australia: Transparency Needed on Fees - Members Charged Too Much By Managers (Superannuation Australia)

2012-08-14T03:22:00.001-07:00

While the Australian super industry has grown in scale, this has not translated into lower fees for members.

Despite the amazing growth of scale in Australia's superannuation industry, fees have grown instead of dropping in recent years and members should demand transparency from funds, a financial adviser has said.

Custom Wealth Solutions chief analyst Chris Appleyard said "typically, when a company increases its production or its supply of services, it achieves an economy of scale and can reduce the costs of doing business".

"Superannuation funds do not seem to have passed on these savings to fund members," Appleyard said.

"Although nobody likes to pay superannuation management fees, one may think they are just the price of doing business; a necessary evil one cannot avoid. Many super managers count on that attitude and are overcharging super members."

The local superannuation market has the fastest-growing pension sector in the world, having grown 17 per cent in the past 10 years. The $1.3-trillion business was more than triple the United States retirement market.

"However, despite this amazing growth in productivity, members and assets invested, super fees have grown instead of dropped in recent years. Consumers may think that paying fees is unavoidable if they want the benefits of a managed superannuation fund. They may also conclude that 1 per cent here or there won't make much of a difference in the long run. Unfortunately, they would be completely wrong," Appleyard said.

Not all super funds charged the same management fees, with the average charge being 1.3 per cent, according to super industry researcher SuperRatings.

"However, some funds will charge up to 4 per cent of the fund's assets in fees," Appleyard said.
"That's a huge difference. When it comes to super funds, just half of a point difference can mean $50,000 less at retirement."

The Australian Taxation Office's self-managed superannuation fund (SMSF) overview for 2009/10 said the estimated average operating expense ratio of SMSFs fell from 0.69 per cent to 0.59 per cent and 0.54 per cent over the years ended 30 June 2008, 2009 and 2010 respectively.

Most SMSFs had an estimated operating expense ratio of less than 1 per cent (64.7 per cent of SMSFs in 2010). The highest proportion (almost 38 per cent in 2010) had an estimated operating expense ratio of 0.25 per cent or less.

"Nevertheless, self-managed super funds do require a substantial investment in time and resources that could make them prohibitively expensive for members with small super fund balances," Appleyard said.

Often managers would charge fees for services that clients either did not need or did not know about. "It is crucial that super investors understand what services they are receiving and what it costs them or else you can end up paying for services you are not aware of and don't use," Appleyard said.

People should consider the cost and availability of insurance, the fees super funds charged, and their expected retirement age before choosing a super fund. For some people, a competitive industry or government super fund was a good fit, while others benefited from more flexible instruments, such as master trusts and SMSFs.

Rhonda and Ketut from AAMI's Car Insurance Commercial are a Facebook Hit

2012-08-14T03:14:00.001-07:00

WE'VE all seen the ad and now Rhonda and Ketut are Facebook celebrities in their own right.
The stars of AAMI's car insurance ad, in which a sunburnt Australian woman and a Balinese bar attendant converse on a beach has spawned a fan page which has attracted over 52,000 likes in less than 48 hours.

The page, which has been named "The sexual tension between Katut and Rhonda," (sic) suggests that there is something more to Ketut and Rhonda's conversation than first meets the eye.
The creator of the page has reposted phrases from the ad such as "You look so hot today Rhonda. Like a sunrise" and "You're naughty" to back up his assumptions.

And users agree that there might be something going on between the flirty pair.
"You two are 'doing it', I know you are, everyone can tell..." wrote Daniel Taite.
Others have praised the ad for being the "best on TV".

"My kids are OBSESSED wth this ad, they run around playing 'the brakefoot game' and yelling rhonda is mine rhonda is mine. whoeva creatd this ad is a clever person very catchy," wrote Amber Lefevre.

While Jan D'orival added: "love the ad katut, when are you going to do another one?"
However, Rhonda isn't just making waves on Facebook.

Tribute t-shirts are already being sold in the Indonesian holiday destination and fans have posted photos of them wearing the souveniers on the page.

"Bali is actually full of singlets now that say "rhonda is mine" "I love rhonda" etc! They're so quick!" wrote Arlene Baverstock

Several other fan pages dedicated to Rhonda have also been created, including one that accuses the ad of being racist and reeking of "cultural and economic imperialism."

National Broadband Network’s 100Mbps plans must be more affordable

2010-08-22T21:33:00.000-07:00

Spending $43 billion of Australian taxpayers' money on a super-quick state-of-the-art optical fibre network could result in a bad investment for the country if the current pricing by NBN resellers for 100Mbps plans aren’t lowered.
A recent poll from broadband comparison website Compare Broadband asked, ‘Would you pay $100 per month for 60GB with the NBN's 100Mbps ultra-high speed optical fibre internet?’ This question was based on the average price for a reseller’s highest possible speed within the optical fibre service. 61% of 374 pollsters said they would not pay the $100, while 33% said they would, and 6% didn’t know either way.

If nothing is changed to the NBN’s pricing scheme, this result infers nearly two-thirds of Australians may not take up the fastest form of the new broadband service. There are two ‘slower’ speeds being offered via the NBN’s new fibre-to-the-home service at 25Mbps and 50Mbps respectively. These are generally priced in a similar range to current ADSL2+ or cable services, but will be a much better broadband service, as less speed is lost throughout the transmission process. These are definitely not slow speeds.

However, the question remains about whether a fibre to the home broadband network is worth rolling out if most Australians feel the service is unnecessary, or overpriced.

Compare Broadband’s General Manager, Scott Kennedy, when asked about the poll’s result, said: "It suggests that Australians do not see the value in spending more for a faster broadband connection. The NBN Co needs to better educate consumers on the advantages to the economy and individuals of a fibre to the home broadband network or deliver the service at a more affordable price.”

Australia currently rates 50 in the world for our broadband speed, and many see this as a major factor that could impede national growth in the future if we are not ‘up to speed’ with other nations. The new NBN network has been promoted as a means to offer numerous jobs (in order to build it), plus creating an infrastructure that would lead to massive growth in Australia’s business and telecommunication industries.

Many see broadband internet as comparable to other necessary daily utilities like water, telephone, electricity, or gas and want to see Australia's broadband infrastructure upgraded for the digital age.

But if the fastest speeds are unaffordable for the majority of Australians, the cost of joining a world-leading broadband society will be borne by all through the roll out of the NBN, but not used by all.

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