Whatever the result of the New South Wales election on March 25, rising housing stress is a problem the new state government will have to confront. Soaring rents and an extraordinary lack of rental vacancies are intensifying housing stress in Sydney and elsewhere. Many low-income households are spending well over 30% of their income on…
The latest labour force data from the Australian Bureau of Statistics shows employment in February increasing by 64,600, and the (seasonally adjusted) unemployment rate declining from 3.7% to 3.5%. It’s confirmation that it’s still too early to declare that the labour market has reached a turning point, after which we can expect the rate of…
Tuesday’s tenth successive Reserve Bank interest rate hike is the culmination of a process that has added $1,080 to the monthly cost of payments on a $600,000 variable mortgage. I’ve calculated this increase in payments – which amounts to $12,960 per year – by comparing payments on the National Australia Bank’s base variable mortgage rate…
The biggest review of Australia’s migration system in decades is due to be delivered to the federal government. Commissioned by the Albanese government last September, its task is to identify reforms that will increase economic productivity, address challenges such as an ageing population, and make Australia a more desirable destination for highly skilled migrants. But…
Treasurer Jim Chalmers promised a Tax Expenditures Statement by the end of February – and he delivered it last week, just in time, on Tuesday, February 28. The statement contains many headline-grabbing figures about the cost of various tax breaks, including claims made against income from rental properties (A$24.4 billion), the concessional or zero tax…
Australia has recovered better than most from the COVID pandemic. As measured by gross domestic product (GDP), the economy is now 7% larger than it was before the pandemic. Over 2022, the economy expanded by 2.7% – more than any of the seven largest advanced economies, and more than twice the average growth rate in…
The tax rate on earnings from superannuation balances above $3 million will double to 30% from 2025-26. The pre-budget decision – approved by the government’s expenditure review committee on Monday and ticked by the cabinet on Tuesday morning – cuts off what was becoming a potentially damaging debate for the government. The timing of its…
Soaring electricity prices have made 15% of Aussies think about installing solar panels, a recent survey found. Another 6% were already weighing up the move, on top of the 28% who had panels. With costs falling, the average system size is growing rapidly. Households now typically install 8-10kW solar systems, often with a battery –…
It’s a tough time for central bankers the world over, but especially for Reserve Bank of Australia governor Philip Lowe. Having forecast during the COVID recession that Australia’s central bank wouldn’t raise interest rates before 2024, he’s taking a lot of stick for nine consecutive rate rises since May 2022. This has taken the cash…
The profile of risks facing the world is evolving constantly. Events like last year’s invasion of Ukraine can send shockwaves through the system, radically shifting perceptions of what the biggest risks facing humanity are. Today’s graphic summarizes findings from the Global Risks Report, an annual publication produced by the World Economic Forum (WEF). It provides an…
