Financial industry, Trading and Earnings :: World finance

Fletcher building ceo mark adamson says noone wants to live in sydney due to the tax system

THE Auckland-based CEO of a $4.4 billion Australasian company says all his new recruits want to quit Sydney and head back over the Tasman.

British-born Fletcher Building chief executive Mark Adamson was especially critical of Australias tax system and also its infrastructure.

New Zealand is a very simple tax regime. I take five minutes to fill in my tax return and Im a fairly complex tax person. The taxes are low and they simply encourage entrepreneurs to swing their bat and try new things, NZ Stuff reported.

And (that) is not to say that we dont have good public services.

Mr Adamson, whose company owns the Laminex and Formica brands, is on a reported salary of $4.03 million. He condemned the overly complex tax system in Australia.

New Zealand is a great model and the best system Ive seen and Ive worked all over the world, he said..

When we recruit, people spend five minutes looking at the tax regime and they all want to move to Auckland. No one wants to live in Sydney.

He also said the political uncertainty was effecting his thinking over the proposals to increase infrastructure spending.

How many prime ministers have we had in four years? Four? Im not building my strategy in Australia on that infrastructure spend happening, he said.

He added that he felt the residential building boom had reached its peak.

The resi boom in Australia is a hell of a boom, I just dont see it continuing. It is more likely to drop from 210,000 (new dwellings a year) to 150,000 in the next few years, he added.

Prime Minister Malcolm Turnbull on Wednesday said that infrastructure will be absolutely critical to Australias success in the 21st century.

Launching a 15-year blueprint for Australian infrastructure, Mr Turnbull said the government was committed to using infrastructure to take advantage of Asias growing middle class.

Deputy Prime Minister Barnaby Joyce said the report was visionary, proposing an inland rail link between Melbourne and Brisbane.

This is something that makes people excited about the future, Mr Joyce said.

The Infrastructure Australia report suggested a user-pays approach to provide greater fairness in the way Australia pays for its roads.

It calls for the introduction of direct heavy vehicle charging within five years and direct user charging for all vehicles within 10 years while removing existing taxes and charges.

That would free up taxpayer dollars to invest in other priorities like social services, health and education.

How to stop spending more money than you earn

SPENDING more money than you earn is a problem affecting all Australians — not just those struggling on lower wages.

Advisers are seeing an increase in people living beyond their means, but say there are a few simple ways to prevent a financial mess.

Recent research by AMP has found that Australians are less confident about their finances than they were two years ago, and the fastest growing group of financially-stressed people are those incomes above $150,000 a year.

AMP financial adviser Darren James says controlling your finances is not just about how much you earn.

Higher earners typically lift their spending in areas such as holidays, transport, education and entertainment, he says.

Its really just like a diet. If theres food in front of you its too easy to eat. If you dont put a restriction on how much you can spend, youre much likely to fritter away whats there.

People think I will do it this once and then I will catch up. But then other things come in and pile on, and you are consistently chasing your tail.

Preventing problems starts with writing down everything you earn and spend. Avoid the word budget, which either scares or bores most people.

James suggests calling it a spending plan. Without this plan theres no way of knowing how much is coming in and going out and what you have left over at the end of the week or month to spend, save or go towards paying off debt, he says.

Write down your goals. Its always easier to be a disciplined saver when you have goals to reach, James says.

JBS Financial Strategists financial coach Glenn Malkiewicz says he has seen many low-income families with almost nothing in savings, but the same is true for high-income families.

Studies show that the vast majority of the differences in wealth have very little to do with someones income level, chance events such as an inheritance, or investment choices. The major determinant of wealth creation is simply based on how much individuals choose to save or spend, he says.

Malkiewicz says people who overspend usually dont know how much money they spend, and dont have goals or a direction in life for their money.

He suggests breaking spending down into three parts: fixed expenses such as mortgages and bills, lifestyle expenses that allow you to enjoy today, and future spending and saving for the things you want to achieve.

You need to make sacrifices and need to find the right trade-off. Bring some consistency, discipline and structure into your saving.


- Write down all your spending for a month to spot potential savings.

- Use free apps and website calculators to help track spending.

- Write down short term and long term goals and monitor your progress.

- Break your spending down to needs and wants.

- Set up separate accounts for saving and spending.

- Beware of bank redraw facilities because they lack transparency.

merrily alyans