Tag: Stock pick

If you’re ready to hang up your hat and enjoy your golden years with a $750,000 superannuation balance, how much passive income could you expect to earn each year?

The answer will, of course, depend on the yield you can earn from those super savings.

Now, in my opinion, investing in the right selection of ASX dividend shares is the best path to achieving a reliable passive income stream in retirement.

And what we’ll look at below is the annual passive income that you can earn from your superannuation without drawing down that $750,000 balance.

We’re also aiming for share price gains and higher annual dividends from those ASX shares over time to at least offset the eroding forces of inflation. This way your real passive income stream remains steady, or ideally increases, over the years as well.

A few important points

While we’ll look at three quality ASX dividend stocks that I believe are a suitable superannuation investment below, a properly diversified passive income portfolio will contain a lot more than just three. There’s no magic number. But 15 or so is a decent ballpark figure.

Ideally these companies will operate in various sectors and locations. This will reduce the risk of your retirement income taking a big hit if any single sector or company runs into headwinds.

Also remember that the yields you generally see quoted are trailing yields Future yields may be higher or lower depending on a range of company specific and macroeconomic factors. Though, as mentioned above, we’ll be aiming to invest in ASX shares that will increase their passive income payouts over the years.

With that said…

Tapping into superannuation for retirement income

Remember, the passive income you earn of your $750,000 superannuation balance will depend on the yield you’re getting.

We’ll take the average yield of the three ASX 200 dividend stocks below as our benchmark.

First up we have Bank of Queensland Ltd (ASX: BOQ).

Over the past 12 months, the ASX 200 bank stock has paid two fully franked dividends and a special dividend totalling 55 cents a share. At the recent Bank of Queensland share price of $6.63, the stock trades on a fully franked trailing yield of 8.3%.

Next, we have ASX 200 rail freight operator Aurizon Holdings Ltd (ASX: AZJ).

Over the past 12 months Aurizon has paid (or shortly will) two dividends totalling 23 cents a share, 90% franked. At the recent Aurizon share price of $3.72, the stock trades on a dividend yield of 6.2%.

And the third stock you might want to invest some of your superannuation into for passive income is Fortescue Ltd (ASX: FMG).

Over the past 12 months, the ASX 200 mining giant has paid (or shortly will) two fully franked dividends totalling $1.08 a share. At the recent Fortescue share price of $17.42, Fortescue shares trade on a fully franked trailing yield of 6.2%.

To the maths!

So, if you invest an equal amount of your superannuation into each of the above ASX 200 dividend stocks, you could expect to earn a yield 6.9%.

Meaning with a $750,000 investment, you could earn $51,750 a year in passive income without drawing down your super balance.

The post How much passive income can I earn off a $750,000 superannuation balance? appeared first on The Motley Fool Australia.

More reading

• How much passive income could a $500,000 superannuation balance generate?
• $10,000 a year in passive income buying just $10k worth of ASX shares? Here’s how I’d go about it
• How much do I need in my superannuation to earn $10,000 passive income every month?
• Here are the top 10 ASX 200 shares today
• These ASX shares benefit from a high Aussie dollar

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and CSL Ltd (ASX: CSL) are among the largest players on the S&P/ASX 200 Index (ASX: XJO) by market capitalisation.

The trio are major long-standing blue-chip companies and among some of the most dominant businesses on the share market.

So it’s unsurprising that they’re also among the most popular with investors.

Let’s find out the latest update from each of these ASX 200 stocks, and which one brokers prefer.

Sell CBA shares

CBA shares have fallen further this week. At the close of the ASX on Tuesday afternoon, the banking giant’s shares were down around another 2% to $158.69 per share. 

The decline means CBA shares have now dropped around 9% since it posted its FY26 results, and is down around 12% from a high in early-August. For the year-to-date the bank stock is now down roughly 1.5%.

The result was positive overall, but it raised concerns about the bank’s earnings strength and its already-high valuation against a backdrop of a weakening housing market.

Meanwhile, concerns around inflation, interest rates movements, falling mortgage demand, a weakening housing market, and tight competition have all also acted as strong headwinds for the ASX bank shares.

The continued share price decline suggests investor sentiment has finally turned south, and brokers expect more correction ahead.

Market Index data shows all brokers have a strong sell rating on CBA shares. The average $125.10 target price implies a potential downside of around 21% over the next 12 months, at the time of writing.

Hold BHP shares

BHP shares have been in the spotlight this week after news that China’s biggest steelmaker is considering buying into one of BHP’s largest iron ore mines.

China Baowu Steel Group is reportedly looking at taking a 15% to 25% stake in BHP’s Jimblebar operation in the Pilbara.

Australia’s Federal opposition has already objected. The Coalition has said that Labor must not allow foreign entities to buy one of Western Australia’s top iron ore mines.

There hasn’t been much material change in BHP’s share price since the news surfaced. At the close of the ASX on Tuesday afternoon, the ASX mining shares were down around 1% to $62.55 a piece.

BHP shares have enjoyed a strong rally this year, however. For the year-to-date the shares are up around 37%.

But going forward, the experts are reserved about the outlook for BHP shares over the next 12 months. Market Index data shows the majority of brokers have a hold rating, and the $61.78 average target price now implies a potential 1% downside ahead.

Buy CSL shares

CSL shares rebounded strongly in August, and they have continued climbing higher into early September. At the close of the ASX on Tuesday, the shares were up another 1% to $174.80. 

The rebound means the shares are now up around 2% for the year-to-date, officially recouping losses shed earlier this year.

The ASX biotech stock has faced several market and company headwinds over the past 18 months, but it looks like investor sentiment has finally turned more positive. 

ASX healthcare shares came back into favor last month after a significant sell-off. And CSL shares were boosted even higher after it posted an impressive FY26 result in mid-August.

The result came in way ahead of guidance and CSL management described FY26 as a ‘reset year’, with FY27 marking a return to growth.

Analysts also have a more positive outlook following the latest results announcement. Market Index data shows a buy rating on CSL shares. But after the latest rally, the $156.09 average target price now implies a potential 11% downside ahead, at the time of writing. 

The post Buy, hold, sell: BHP, CSL, CBA shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• $10,000 invested in BHP and CBA shares three years ago is now worth…
• Rates are rising again. Should you pay down your mortgage or top up your superannuation?
• All 4 big banks now expect a rate hike. What does this mean for ASX bank shares?
• $10,000 invested in CSL shares in June is now worth…

Motley Fool contributor Samantha Menzies has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Deciding between extra mortgage repayments or extra superannuation contributions has always been a tough decision.

That being said, when mortgage rates sat near 2%, almost any sensible investment in superannuation beat paying down debt.

However, that is no longer the case.

All four major banks now expect the Reserve Bank to lift the cash rate again before the end of the year.

What a rising cash rate does to the mortgage side

The cash rate already sits at 4.35% after three increases in 2026, and the board next meets on 28 and 29 September.

Westpac Banking Corp (ASX: WBC) now expects a rise to 4.60% in November, joining ANZ Group Holdings Ltd (ASX: ANZ) and Commonwealth Bank of Australia (ASX: CBA), while National Australia Bank Ltd (ASX: NAB) is tipping September as the month that rates rise.

The Reserve Bank’s housing lending statistics put the average new owner-occupier variable loan at roughly 6.25%.

That means that every extra dollar that is paid off that loan earns a guaranteed 6.25%, tax free.

There are very few assets Australia that offers that combination.

What the tax system does for superannuation

However, superannuation contributions can be a more tax-efficient way to invest your money.  

Salary sacrificed contributions are taxed at 15% going in, instead of at your marginal rate.

Investment earnings inside the fund are taxed at 15% during accumulation and are not taxed at all in pension phase.

The concessional contributions cap rose to $32,500 from 1 July 2026. That is $2,500 more room than the previous three financial years allowed.

Why the answer is still not obvious

On the flipside, two things can make paying down your debt more attractive.

The first is access.

Money inside superannuation is locked away until preservation age, which is 60 for anyone born after June 1964.

A mortgage repayment made through an offset account can be withdrawn tomorrow.

The second is certainty.

The mortgage return is guaranteed and the investment return is not.

To illustrate, the Vanguard Australian Shares Index ETF (ASX: VAS) is a reasonable proxy for the Australian portion of most balanced superannuation options.

The fund closed Tuesday at $111.50 and has returned just 0.82% over the past twelve months, which is a useful reminder that share markets do not deliver averages on schedule.

How I would think about superannuation versus the mortgage

The soft answer is that it depends on three things.

Your marginal tax rate decides how large the superannuation head start is.

Your age decides how painful the preservation rules are.

And your loan-to-value ratio decides how much you need the security of a smaller debt.

For someone in their fifties on a high marginal rate, superannuation is very hard to beat.

For someone in their thirties with a large mortgage and no buffer, the extra repayment usually wins on peace of mind alone.

Foolish takeaway

There is no universal right answer.

What has changed this year is that the savings from paying down mortgage side have become competitive at 6.25%.

Superannuation still wins on tax over a long enough horizon, and the higher contributions cap makes that easier to use.

I would make sure the emergency buffer exists first, then let the marginal tax rate decide the split.

The worst outcome is doing neither and letting the cash sit in a transaction account earning nothing at all.

The post Rates are rising again. Should you pay down your mortgage or top up your superannuation? appeared first on The Motley Fool Australia.

More reading

• $10,000 invested in BHP and CBA shares three years ago is now worth…
• Buy, hold, sell: BHP, CSL, CBA shares
• How much must I invest in VAS ETF shares to earn a $1,000 passive income in 2027?
• Buy, hold sell: Telstra, Origin Energy & Westpac shares
• All 4 big banks now expect a rate hike. What does this mean for ASX bank shares?

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Vanguard Australian Shares Index ETF (ASX: VAS) is one of the largest exchange-traded funds (ETF) on the ASX, and it’s known for having a sizeable dividend yield.

The VAS ETF allows investors to gain exposure to the S&P/ASX 300 Index (ASX: XKO), which is an index of 300 of the largest businesses on the ASX.

Some of the biggest businesses in the portfolio are BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), Rio Tinto Ltd (ASX: RIO) and Woodside Energy Group Ltd (ASX: WDS).

I think it’d be fair to say that every one of the above stocks could be classified as an ASX dividend share with a decent dividend yield.

The Vanguard Australian Shares Index ETF simply passes through the dividends it receives onto owners of VAS ETF units. Therefore, it’s beneficial if the holdings provide a good dividend yield.

Let’s look at what it could take to generate $1,000 of passive income from the fund.

Targeting $1,000 of passive income from Vanguard Australian Shares Index ETF

Every month, Vanguard tells investors about various statistics regarding the fund.

For July, Vanguard reported that the VAS ETF had a dividend yield of 3.1%. That’s not a huge yield, but it’s significantly more than what’s on offer from the international share market or US share market.

It’s not guaranteed to have a 3.1% dividend yield in the coming 12 months, but it’s the best figure we can use for this calculation.

To generate $1,000 of passive income with a 3.1% dividend yield, you’d need an investment of $32,258, so that’d mean buying 286 or 287 VAS ETF units.

The VAS ETF is able to provide a high dividend yield because more than 58% of the portfolio is invested in ASX bank shares and ASX mining shares. Those sectors typically have lower price/earnings (P/E) ratios and relatively generous dividend payout ratio, which both affect the dividend yield.

Other markets, like the international share market or US share market, are focused on other sectors like technology businesses, which usually have a lower dividend payout ratio and a high P/E ratio. That results in a much lower dividend yield.

The VAS ETF isn’t dominated by growth stocks, so I’m not expecting significant capital growth in the coming years, though the dividend yield could remain pleasing.

The post How much must I invest in VAS ETF shares to earn a $1,000 passive income in 2027? appeared first on The Motley Fool Australia.

More reading

• Rates are rising again. Should you pay down your mortgage or top up your superannuation?
• Are these top Vanguard ETFs still a buy in September?
• What Warren Buffett’s investing style can teach superannuation investors
• No savings at 30? Here’s how I’d aim to retire early with $1 million buying ASX shares
• These are the most popular ASX ETFs. Which has performed best over the last year?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

WiseTech Global Ltd (ASX: WTC) shares have continued falling further into the red this week.

At the close of the ASX on Tuesday afternoon, the technology stock was down another 3% to $35.25. That means the shares are now down 49% year-to-date and are a huge 63% lower than 12 months ago.

It’s been well-documented that the business has been smashed by a tech-sector wide selloff this year, and an investor rotation into more defensive assets amid global volatility earlier this year.

It hasn’t helped that the company itself has been thrust into the spotlight on a number of occasions, putting pressure on an already depressed share price.

There have been a series of updates and media reports in 2026. This included coverage of investigations into founder Richard White by the Australian Federal Police (AFP) and, more recently, news that the Australian Competition and Consumer Commission (ACCC) had executed a search warrant at the company.

ASIC and the AFP also searched WiseTech Global’s headquarters in late October 2025.

Then, late last month, WiseTech posted its FY26 results. On the surface the earnings result was positive, and earnings were in line with analyst expectations. But its EBITDA figures came in short of market forecasts and investors rushed to sell up.

The question now is, are WiseTech shares still a buy? Or will any investment made today turn into a loss by September 2027?

What’s ahead for the ASX tech shares?

WiseTech shares have had a difficult year so far, but the company continues to hold a competitive advantage in the global logistics market. 

And brokers are bullish that we could see a strong rebound ahead.

Market Index shows that all brokers have a strong buy rating on WiseTech shares. The average $61.19 target price implies a potential 74% upside over the next 12 months, at the time of writing. 

TradingView data also shows that some brokers are even more positive. Out of 17 analysts, 13 have a buy/strong buy rating and the other four rate the shares as a hold.

The average target price is a little lower, at $57.19. This implies a potential 62% upside over the next 12 months, at the time of writing. Some think WiseTech shares could rocket 184% over the next 12 months, to $100.09 each by this time next year.

So, if I buy $5,000 of WiseTech shares today, what could they be worth in 12 months?

Assuming the average target price comes to fruition, that means a $5,000 investment today could be worth around $8,100 to $8,700 in 12 months time.

But if the more bullish expert forecasts hold, a $5,000 investment today could grow to an enormous $14,200 by this time next year.

The post By September 2027, $5,000 invested in WiseTech shares could turn into… appeared first on The Motley Fool Australia.

More reading

• Xero and Megaport: 2 ASX tech shares the market can’t agree on
• WiseTech shares are down 62%. Why are brokers still bullish?
• Down 62%, are WiseTech shares now a buy, hold or sell?
• These ASX shares benefit from a high Aussie dollar
• Why I’m buying WiseTech shares before the market catches on

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) has fallen further this week as investor sentiment continues to slide. 

Renewed conflict between the US and Iran is driving fresh fears about oil prices and supply, inflation, and the potential for further interest rate hikes.

Let’s find out how the shift in sentiment is affecting major ASX 200 shares like Westpac Banking Corporation (ASX: WBC), Origin Energy Ltd (ASX: ORG), and Telstra Group Ltd (ASX: TLS), and what brokers tip next.

Buy Origin Energy shares

Origin Energy shares closed the day up around 1% on Tuesday afternoon, at $11.32 a piece. The shares spiked to $12.11 after the company ported an impressive FY26 result last month, but the shares have since slid around 7%, wiping out most of the gains. 

For the year-to-date, Origin shares are largely flat, and they’re around 8% lower than 12 months ago.

It looks like profit-taking investors sold up shortly following the share price spike, and the macro situation hasn’t helped either. Rising oil prices and renewed inflation concerns have spooked investors and contributed to a board ASX sell off. 

But it looks like market experts are confident that we’ll see a rebound ahead.

Market Index data shows the majority of brokers have a buy rating on the ASX energy shares, and the $12.09 average target price implies a potential 7% upside, at the time of writing.

Hold Telstra shares

Telstra shares ended the day flat on Tuesday afternoon, at $4.79 a piece. The ASX telco shares have rebounded around 5% since hitting an annual low in late August. The shares are down around 2% year-to-date and around 1% lower than 12 months ago.

The shares tumbled after the telco posted its FY26 results mid-month, with revenue down 0.8% and underlying earnings up 4.4%. However, not long after, investors swooped back in to snap them up at a lower valuation.

As a classic defensive stock, Telstra shares are also benefiting from the latest flight to security amid renewed geopolitical volatility.

Brokers aren’t convinced that there is much more room for growth going forward. Market Index data shows the majority have a hold rating on Telstra shares. But the $5.01 average target price implies an upside of around 4% at the time of writing.

Sell Westpac shares

Westpac shares slid around another 1% on Tuesday, ending the day at $34.58 per share. August was a tough month for ASX bank shares, with declines across the board. Again, renewed inflation concerns and interest rate fears have seen investors sell up their shares in the major bank.

Falling mortgage demand, a weakening housing market, tight competition and squeezed margins are also acting as headwinds for Westpac shares.

The shares are now down around 11% for the year-to-date and are about 9% lower than 12 months ago.

But it doesn’t look like there is potential for a rebound ahead. 

Market Index data shows the majority of brokers have a sell rating on Westpac shares. And the $22.91 average target price implies the shares could fall around another 2%, at the time of writing.

The post Buy, hold sell: Telstra, Origin Energy & Westpac shares appeared first on The Motley Fool Australia.

More reading

• All 4 big banks now expect a rate hike. What does this mean for ASX bank shares?
• How much do I need to retire on $80,000 a year at 50?
• Is the Telstra share price a buy for its 6.25% dividend yield?
• What happens if the ASX share market crashes just after I retire?
• How much passive income could a $500,000 superannuation balance generate?

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN) shares have fallen more than 21% over the past year, and at least one broker thinks that is an opportunity.

Morgan Stanley has a buy rating with a 12-month price target of $12.80.

Qantas shares closed Tuesday at $9.28, which implies capital growth of around 38%.

Why Morgan Stanley likes Qantas shares

Qantas trades on a price-to-earnings ratio of 11 with a 3.87% fully franked dividend yield.

That is one of the cheaper multiples in the S&P/ASX 200 (ASX: XJO).

Qantas’ operating momentum is also better than the share price suggests.

Management expects total unit revenue across domestic and international to rise between 8% and 10% in the first half of FY27.

Qantas Loyalty earnings are forecast to grow 5% to 7%, and the division already lifted underlying EBIT 12% in FY26.

The first Project Sunrise A350-1000ULR arrives in April, with the first non-stop Sydney to London service launching in October.

What Qantas shares earned in FY26

The full-year result was a step backwards: Underlying profit before tax fell $330 million to $2.06 billion.

Statutory profit after tax declined $316 million to $1.29 billion.

Underlying earnings per share dropped 14 cents to 96 cents.

Almost all of that decline has a single cause.

The conflict in the Middle East produced a net impact of $420 million on the FY26 result, driven by record fuel prices and route disruption.

Strip that out and the underlying business actually grew.

What’s more, shareholders were still paid. The final fully franked dividend was 19.8 cents per share, taking total FY26 dividends to $600 million.

Net capital expenditure rose 3% to $4.0 billion and 17 new aircraft were delivered.

Net debt increased to $6.2 billion, which remains inside the target range, and a planned $150 million buyback was cancelled.

Chief executive Vanessa Hudson was optimistic about the year:

This has been another year of progress, with customer satisfaction at its highest in a decade and world-leading operational performance, even as the aviation industry faced record high fuel costs and disruption from the conflict in the Middle East. We came through it with a strong result, which is what allows us to continue investing in the largest fleet renewal in our history and deliver more for our customers, people and shareholders.

What Qantas shares could pay from here

Reassuringly, the dividend outlook is steadier than the earnings outlook.

Commsec projections have the airline holding its annual dividend at 39.6 cents in FY27.

That would be a 4.25% yield, or roughly 6% grossed up with franking credits.

The same projections point to 43.1 cents in FY28 and 49.6 cents in FY29.

For an airline, that is an unusually respectable income profile.

The risk facing Qantas

Oil is a key input whose volatility continues to impact Qantas.

Brent crude settled at US$97.31 a barrel on Monday after another escalation between the United States and Iran near the Strait of Hormuz.

Every dollar on the oil price flows almost directly into the airline’s largest controllable cost.

Weakening households are the second risk.

Consumer sentiment fell 5.2% in September to 84.4, and discretionary travel is the sort of spending that gets deferred.

Qantas says international demand remains strong, helped by customers redirecting away from the Middle East, but that is a fragile advantage.

Foolish takeaway

Morgan Stanley’s target implies the market is treating thr fuel shock as permanent.

That may prove too pessimistic, because the fleet renewal, the Loyalty division and the unit revenue guidance all point in a more positive direction.

At 11 times earnings with a 6% grossed-up yield in prospect, Qantas shares are at least being priced for the risk, leaving potentially plenty of upside on the table.

The post Morgan Stanley tips Qantas shares to climb 38% appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares tipped by brokers to rise 34% to 87%
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Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The value of investment assets you can own while still qualifying for the age pension will increase on 20 September.

The changes reflect indexation adjustments, which are made twice per year, to keep up with inflation.

Let’s take a look at what’s changing.

How much in assets can you own and still get the pension?

If you were born on or after 1 January 1957, you are eligible for the pension from age 67, whether you are retired or not.

The pension is subject to an assets test and an income test.

On 20 September, the guardrails on both tests change.

In this article, we’re focusing on the rules for the assets test.

The first thing to know is your home is excluded from the pension assets test.

If you rent your home, you’re also allowed to own a higher value of assets while still qualifying for the age pension.

Assessable assets under the test include superannuation, ASX shares, bonds, investment properties, and cash.

Under this next round of indexation changes, effective 20 September, only the upper thresholds for the assets test are changing.

Here are the details.

If you own your home

Single homeowners whose assets are worth less than $333,000 qualify for a full pension.

Single homeowners whose assets are worth between $333,001 and $745,750 (up from $733,500) will be eligible for a part-payment.

Couple homeowners whose assets are worth less than $499,000 qualify for a full pension.

Couple homeowners who have between $499,001 and $1,121,000 (up from $1,102,500) in assets will qualify for a part-payment.

If you rent your home

Single renters whose assets are worth less than $600,000 qualify for the full payment.

Single renters who have between $600,001 and $1,012,750 (up from $1,000,500) in assets will qualify for a part-payment.

Couple renters whose assets are worth less than $766,000 qualify for the full payment.

Couple renters who have between $766,001 and $1,388,000 (up from $1,369,500) in assets will qualify for a part-pension.

How much is the age pension?

Pension payments will increase on 20 September to reflect inflation.

Single pensioners will get an extra $36.80 per fortnight from 20 September.

That will raise the full pension payment up to $1,237.70 per fortnight.

Couples will get an extra $27.80 per partner, per fortnight.

That will bump up the full pension to $933 per partner, per fortnight.

Even if your assets are worth very close to the upper limit for a part-pension, it is still worth applying for social security.

You may only get a few dollars in pension, but you’ll receive the full benefit of the Australian Pensioner Concession Card (PCC).

The PCC can save you thousands of dollars every year on a broad range of living expenses in retirement.

The post How much in assets can you own while still qualifying for the age pension? appeared first on The Motley Fool Australia.

More reading

• By September 2027, $5,000 invested in WiseTech shares could turn into…
• Buy, hold sell: Telstra, Origin Energy & Westpac shares
• Morgan Stanley tips Qantas shares to climb 38%
• Why the ASX 200 just hit a six-week low
• All 4 big banks now expect a rate hike. What does this mean for ASX bank shares?

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 (ASX: XJO) has fallen to a six-week low. The question is: why?

Australians have decided that interest rates are going up again.

The index lost a flat 1% on Tuesday to finish at 8,920.8 points.

That leaves the market back below 9,000 points and more than 3% below where it traded in mid-August.

What fell on the ASX 200

The damage was not spread evenly across the market.

Consumer discretionary shares were the worst sector by a wide margin, falling 1.88%.

Technology shares dropped 1.76% and financials lost 1.63%.

Listed property fell 1.46%.

Utilities were the only sector to post a meaningful gain, rising 0.59%.

Looking more deeply into this, that pattern seems like a textbook interest rate reaction.

Investors sold anything that depends on household spending and bought the things that behave like bonds.

Consumer sentiment did the damage

The trigger arrived before the market opened.

The Westpac-Melbourne Institute Index of Consumer Sentiment fell 5.2% in September to 84.4.

Any reading below 100 means pessimists outnumber optimists, so 84.4 is a weak result.

The report itself was blunt about the cause.

The fall takes sentiment back towards the deeply pessimistic levels seen earlier in the year. Both fuel prices and interest rates again look to be driving the move.

Nearly two-thirds of consumers now expect mortgage rates to rise within twelve months.

Assessments of family finances dropped 9.2%, and among homeowners the fall was 13%.

Westpac then moved its own forecast to a November rate rise, joining ANZ and CommBank.

That followed June quarter national accounts showing the economy growing 0.4% for the quarter and 2.1% over the year.

JB Hi-Fi and Harvey Norman are wearing it

Two retailers show what all of this looks like at the company level.

JB Hi-Fi Ltd (ASX: JBH) shares fell 2.25% on Tuesday to $66.07.

That is a fresh 52-week low, and the shares are now down 42.8% over twelve months.

Harvey Norman Holdings Ltd (ASX: HVN) shares closed flat at $4.32.

They are just above a 52-week low of $4.15 and are down 41.3% over the year.

The FY26 results do not explain those falls

Despite this sell-off, both companies actually posted reasonably strong results.

JB Hi-Fi lifted FY26 revenue 4.8% to $11.06 billion and net profit after tax 6% to $489.9 million.

Earnings before interest and tax rose 5.8% to $734.4 million.

The total dividend jumped 22.5% to 337 cents per share fully franked, and the company finished the year with $206.5 million of net cash and no interest-bearing debt.

For its part, Harvey Norman grew total system sales 3.1% to $9.64 billion and statutory profit before tax 4.9% to $790.29 million.

Its fully franked dividend rose 3.8% to 27.5 cents per share.

Chair Gerry Harvey said of the results:

FY26 delivered growth in operating earnings, continued international expansion and strong franchise profitability. With total assets approaching $9 billion, net assets approaching $5 billion, substantial property ownership and low gearing, we remain well positioned to deliver long-term sustainable growth for our shareholders.

Foolish takeaway

A 1% fall is not a crash, and the ASX 200 remains only modestly below its August level.

What changed on Tuesday was the assumptions behind the market.

Investors had been pricing in a pause, and they are now pricing in a hike.

The post Why the ASX 200 just hit a six-week low appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX bank shares fell hard on Tuesday, with the bad news coming from the banks’ own economists.

Westpac Banking Corp (ASX: WBC) shifted its forecast to a November rate rise, taking the cash rate to 4.60%.

That means all four majors now expect the Reserve Bank to tighten again this year.

The financials sector dropped 1.63% on the day.

What higher rates actually do to ASX bank shares

The instinct is that rate rises are good for banks, and that is only half true.

Higher rates let banks reprice deposits more slowly than loans, which supports margins for a period.

However, they also slow credit growth, lift arrears and eventually raise bad debt charges.

The most recent results show margins remain stable.

The Commonwealth Bank of Australia’s (ASX: CBA) FY26 net interest margin came in at 2.05%, three basis points lower than FY25.

Westpac held its margin steady at 1.89% in the June quarter.

National Australia Bank Ltd’s (ASX: NAB) margin slipped two basis points to 1.79%, whereas that of ANZ Group Holdings Ltd (ASX: ANZ) rose one basis point to 1.54%.

Loan losses are also creeping up.

CommBank’s loan impairment expense rose 9% to $788 million in FY26.

NAB booked $299 million of credit impairment charges in the third quarter.

What the majors are actually earning

CommBank remains the standout on profitability.

Cash net profit after tax lifted 7% to $11.0 billion in FY26, on operating income of $30.2 billion.

Cash return on equity reached 14.0% and the full-year dividend rose to $5.05 per share fully franked.

Its common equity tier one ratio finished the year at 12.0%.

The quarterly updates from the other three were steadier.

Westpac reported $1.8 billion of net profit excluding notable items, with a 12.1% capital ratio.

NAB delivered $1.83 billion of cash earnings and an 11.93% capital ratio.

ANZ posted $1.90 billion of cash profit in its own third quarter update.

What you are paying for ASX bank shares today

When looking at valuations, this is where the argument becomes more difficult to justify.

CommBank closed Tuesday at $158.69 on a price-to-earnings ratio of 24.6 and a 3.15% yield.

NAB finished at $38.87 on 19.6 times earnings with a 4.33% yield.

ANZ ended at $36.94 and Westpac at $34.58, yielding 4.37% and 4.41% respectively.

Fund manager Wilson Asset Management remains underweight the sector.

Its team pointed to slowing credit growth, rising competition and some deterioration in loan book quality.

Business lending pipelines were described as relatively healthy, while mortgage growth expectations have been revised lower.

Foolish takeaway

A rate hike is not necessarily a huge positive for ASX bank shares, and Tuesday’s selling made that point.

The sector is being asked to grow earnings while credit growth slows and households tighten.

I find NAB, ANZ and Westpac far easier to justify than CommBank at 24.6 times earnings.

The yields on those three are genuinely useful, and the capital positions are strong enough to fund them.

What I would not do is buy ASX bank shares purely because the cash rate is heading higher, because the last three hikes have not lifted a single major’s margin.

The post All 4 big banks now expect a rate hike. What does this mean for ASX bank shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.