Savers urged to start new financial year on a winner

Australians have been advised on some of the top saving and investment trends for the 2010-11 financial year as the current one draws to a close on June 30th.

Anthony Keane of News Limited noted that a new financial year can often mean different things to different people.

"Property investors usually expect a nice tax deduction, share investors often reshape their portfolios, super fund members might look at switching funds, and retirees are tempted to seek the safety of cash deposits," he said.

Mr Keane suggested that superannuation funds will continue to be affected by government reforms and tax changes which could impact on returns – a trend that may encourage more Aussies to compare savings accounts and build up bank deposits.

He spoke to financial strategist Frances Magill, who described super funds as a "cash cow" from which governments derive 15 per cent tax.

Meanwhile, Mr Keane claimed that real estate property prices will remain solid in 2010-11 in light of such factors as migration and the national housing undersupply.

Last week, Mark Ashburn, national sales manager for Professional Associations Super, suggested that insurance fees on super accounts are eating into Australians’ retirement savings.

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