Jul 2, 2018

Investors come out ahead as big banks finish year with a bang

Despite the royal commission, the big banks made sure the financial year ended on a high note for investors — much better than workers.

Glenn Dyer and Bernard Keane

Crikey business and media commentator / Politics editor

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Investors finished the financial year well ahead of workers, with the ASX 200 gaining 8.3% over 2017-18. When dividends are included, the ASX 200 was up more than 13%. That compares to wage growth of 2.1% in the year to March, and it's not likely to climb too much beyond that for the year to June.

Workers will benefit from the ASX via their superannuation accounts -- if they're in industry or corporate funds, rather than underperforming retail funds -- but it provides an ironic counterpoint to the silly argument advanced by the government and the business lobby that companies will start paying higher wages if company tax cuts give them a windfall.

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