Category Archives: Australian economy

Interest rate pain felt ‘unevenly’ but that’s not a reason to avoid rises, Philip Lowe says

Posted on by

The Reserve Bank governor says rates will keep being lifted if necessary, despite 'significant financial pressure’ for some

Philip Lowe concedes interest rate pain is being felt “unevenly” across Australia but he says that is not a reason to avoid using the one tool the Reserve Bank has to tame inflation and raise rates further.

The RBA governor has also warned against the idea that all workers should be compensated for inflation, saying “we have to make sure that higher inflation doesn’t translate into higher wages for everybody”.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

Political point scoring over latest RBA rate rise won’t help those feeling the ‘painful squeeze’

Posted on by

How high must rates go to choke inflation? Blaming Labor’s budget, price-gouging businesses or the national wage increase isn’t an answer

The Reserve Bank is all about “seeking to keep the economy on an even keel” as it cranks up interest rates to crush inflation – but the effect of multiple rate rises is anything but even.

The central bank again surprised most economists and investors on Tuesday by hiking its cash rate another 25 basis points to 4.1%.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

RBA interest rates: Reserve Bank increases cash rate by 25 basis points in attempt to quash inflation

Posted on by

RBA decision to raise Australia’s cash rate by another 25 basis points brings the official rate to 4.1%, its highest level in 11 years

The Reserve Bank has lifted interest rates for a 12th time in just over a year, judging the risk of inflation staying too high for too long outweighed the added financial stress that will hurt households and businesses.

The decision to hike by another 25 basis points brings the cash rate to 4.1%, its highest level in 11 years. Economists and markets had slightly favoured no change for this month.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

Central bank going ‘rogue’, senator claims – as it happened

Posted on by

This blog is now closed.

Burke says the loophole only applies to where the business has agreed on a minimum rate of pay:

The loopholes are really simple … which is, if an employer agrees with their workforce and registers, this should be the rate of pay.

You shouldn’t then be able to go to a labour hire company and completely undercut what you’ve just agreed to.

Yesterday was one of the one of the strangest debates I’ve ever found myself in – because business was running a passionate campaign against a policy that the government is not proposing, that the government’s not going to do. And to me, it would sound like a bad idea anyway.

Effectively the way business were arguing yesterday – there was someone on PM yesterday afternoon, claiming that somehow this would prevent hairdressers from being able to pay different rates of pay for the people in their employment. Just not true.

Continue reading...

Economists split over prospects of another rate rise ahead of RBA meeting

Posted on by

Despite 11 hikes in the cash rate since last May, some forecasters think the central bank could still raise borrowing costs again

It’s Reserve Bank roulette time for another month with borrowers and pundits bracing for the potential of another rate rise surprise.

Since May last year, the central bank has lifted interest rates on the first Tuesday of each month, with only the January holiday break and a short-lived pause in April breaking the metronomic rise in mortgage pain.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

Australia news live: economists push interest rate forecasts higher; teens arrested over violent carjacking

Posted on by

Eight teenagers in police custody after allegedly dragging woman from car on the Gold Coast. Follow the day’s news live

Business groups argue ‘same job, same pay’ laws would disadvantage workers

I mentioned a little earlier that business groups have glommed together to launch a campaign against the federal government’s proposed “same job, same pay” industrial relations laws.

The so-called ‘Same Job, Same Pay’ proposals does not mean equal pay for men and women. It does not speak of fairness and justice, as its name falsely represents.

It means by law, employers will have to pay workers with little knowledge or experience exactly the same as workers with decades of knowledge and experience.

Without a real threat of losing passengers to other airlines, the Qantas and Virgin Australia airline groups have had less incentive to offer attractive airfares, develop more direct routes, operate more reliable services, and invest in systems to provide high levels of customer service.

Continue reading...

Australia politics live: ‘absolutely shocking’ for education department to give PwC contracts after tax leak scandal, Faruqi says; Ben Roberts-Smith verdict due today

Posted on by

Department taken to task for its nine contracts with PwC, two of which were entered into in the past two months. Follow latest updates

Sally McManus responds to RBA governor’s commentary on housing market

Sally McManus spoke to ABC News Breakfast this morning and gave her thoughts on some of RBA governor Phil Lowe’s commentary around the housing market and what he thinks needs to happen.

I think we’re living in two worlds. We’ve got people living in very big houses that have multiple dwellings and they’re landlords. And what they’re doing is when the Reserve Bank governor puts up interest rates, they’re passing on that cost to renters and that’s part of the reason why we’re seeing rents increase.

And I think that that is just basically saying to everyone, look, ordinary people, move in with your parents and grandparents whilst we’re going to say nothing about those CEOs I talked about at companies that actually are the ones that could ease cost of living tomorrow on people but they’re choosing not to because in the end they want to see their bonuses.

Continue reading...

Queensland LNP criticised for ‘failure of leadership’ on voice – as it happened

Posted on by

This blog is now closed.

Why didn’t the Coalition government know about these issues?

Shouldn’t it have?

And that’s exactly I would imagine the issues that will be fleshed out by this inquiry it, because this has been a loophole if you like, but that said privacy provisions, particularly when you’re dealing with government agencies, are really important to engender trust.

Now, as I said, there are a number of processes under way. We’ve seen what happens in recent times, when there is ongoing media commentary or into matters that relate to criminal proceedings. So we should be very careful about being part of that commentary that might impact other proper processes.

Secrecy provisions are there and privacy provisions are there for very good reasons. Now, whether those privacy provisions manifested in the best outcome here is for others to say, but I don’t think we should throw the baby out of the bathwater. We want to make sure that people have trust in the ATO trust when they give information to agencies that it will be kept private.

But look, this will all be flushed out it will all be flushed out in two inquiries. One by the AFP – there’s been a reference made to them already. And the other by a Senate references inquiry and I don’t want to pre-empt exactly what that particular that references inquiry will find. My colleagues right across the chamber will be investigating this issue, I would imagine, very thoroughly along with others to do with the PwC scandal.

Continue reading...

Australia politics live: Lambie threatens to disrupt Senate over Afghanistan medals; question time under way

Posted on by

Follow the latest news

Adam Bandt rails against Woodside’s exclusion from petroleum resource rent tax

Greens leader Adam Bandt is speaking to ABC radio RN Breakfast about the petroleum resource rent tax (PRRT) changes and in particular the fact that Woodside’s Western Australian North-West Shelf project isn’t included in it.

The tax is still broken, and they’re meant to be subjected to it. They should pay their fair share of tax. As I say, even after these changes, Australia only brings in a few $100 million extra from these big gas corporations that are making billions of dollars of profits. It’s about a 10th of what comparable countries bring in. If we made these guess corporations pay their fair share of tax. They’d be an extra $94 billion over the decade to go to things like delivering cost-of-living relief, funding a rent freeze, getting dental into Medicare.

Continue reading...

NSW politicians and public service executives hit with wage freeze to fund payrise for frontline workers

Posted on by

Legislation will be introduced to state parliament on Tuesday freezing the salaries of MPs and executives from July

Promised pay rises for New South Wales frontline workers will be funded by a two-year freeze on the wages of state politicians and public service senior executives.

Legislation will be introduced to state parliament on Tuesday freezing the salaries of MPs and executives from July and redirecting the millions of dollars in savings to nurses, paramedics, teachers and other frontline workers.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

Australia news live: 3.8 magnitude earthquake largest to hit Melbourne in over a century

Posted on by

Thousands of people contacted Geoscience Australia to report they felt shaking, but there were no immediate reports of injuries or serious damage. Follow the latest updates

Paterson says the Indigenous voice to parliament’s differentiation on the basis of characteristics people have no control over is “offensive to liberal principles.”

Asked about whether he agrees with his leader Peter Dutton, when he talks about the voice re-racialising Australia, Patterson says:

What proponents of the yes campaign are trying to do is to treat Australians differently. …what we are doing is putting into our constitutional something which treats people differently because of a characteristic over which they have control. And I think that is offensive to liberal principles. And we are all human beings and we’re all Australian, and we should be all treated equally before the law before the Constitution as well.

It is in Australia’s national interest that Ukraine prevail. We have to do everything in our power to ensure they do.

Continue reading...

Australia’s rental affordability drops to worst levels in nearly a decade

Posted on by

New report shows average households are spending a third of income on rent while lower income families pay more than half their earnings

Australian rental affordability has dropped to its worst levels in nearly a decade, with the average household spending a third of its income on rent, as the impacts of the Covid pandemic continue to be felt on the market.

Lower income households pay even more, with more than half of their income going towards their rent, according to new research from ANZ and CoreLogic.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

Australia should increase competition to fight ‘excessive pricing’ by supermarkets, Rod Sims says

Posted on by

Former regulator head’s comments follow Guardian Australia analysis which shows Coles and Woolworths increased profit margins during cost-of-living crisis

The former competition watchdog head Rod Sims says Australia’s big supermarkets have likely used their market power to increase prices higher than necessary during a cost-of-living crisis and that the government should consider reforming merger laws to limit their dominance.

Sims, who retired as the chair of the Australian Competition and Consumer Commission (ACCC) last year, said Coles and Woolworths have little to worry about when making pricing decisions because they control two-thirds of the market.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

Housing prices gain pace as auction listings increase across Australia’s capital cities

Posted on by

CoreLogic researcher Tim Lawless says current spike in migration countering effect of Reserve Bank’s rate hike earlier this month

Property price gains are picking up momentum in major cities as the number of homes listed for sale starts to lift from “extraordinary low levels”, data group CoreLogic says.

Up to the middle of May, home values in Sydney had risen 1.4% on a rolling four-week average from 1.3% at the end of April. For Brisbane, prices increased 1.1%, up from 0.3%. Perth values were up 1%, Adelaide 0.6% and Melbourne’s home prices rose 0.5%.

Continue reading...

PM announces new sanctions – as it happened

Posted on by

This blog is now closed.

Biden’s cancellation not a snub, Marles insists

The media is still trying to get the Albanese government to admit it feels bruised after Joe Biden cancelled his Australian visit for the Quad leaders meeting.

You’ve got a leader of a country who is dealing with an urgent issue in terms of their domestic politics. It’s unfortunate. But it happens. It’s nothing more than that.

It says a lot about Australia’s standing in the world right now. It says a lot, I think particularly about our relationship with Japan, actually, given that they’re the hosts of this.

We wish to express our thanks to God and all who have continued to pray for us.

We express our relief that Dr Elliott is free and thank the Australian Government and all who have been involved over time to secure his release. We also continue to pray for those still held and wish them freedom and safe return to their loved ones.

Continue reading...

Gas lobby plans ‘national public awareness campaign’ – as it happened

Posted on by

This blog is now closed.

‘Good women’s policy is good economic policy’: Sussan Ley convening women’s economic security roundtable

The deputy opposition leader and shadow minister for women, Sussan Ley, is convening a women’s economic security roundtable today.

Restarting the Career Revive program for older women to retrain and re-enter the workforce.

Greater flexibility in childcare arrangements (for which there are no details, but the rhetoric is consistent with allowing women to use subsidies on alternatives such as nannies).

Paying superannuation on paid parental leave.

Helping older women who face relationship breakdown achieve financial security, including through access to superannuation.

The Liberal party can be the party of choice for women – we must be – and that is why we are going to meet them where they are in life with new ideas and real solutions that help them.

I want the women of Australia to know that the Liberal party that Peter Dutton and I lead will be back in your corner – we will support your career choices, we will look at ways to help you as you manage your work-life balance and we will help you secure your financial independence.

I don’t think anyone would question when you’ve got something like the debt ceiling being negotiated in the United States …

In terms of the relationship between the countries and the strength of the relationship, as allies, that’s all there; and I think anyone who knows what negotiations with the debt ceiling are like in the United States understands exactly why President Biden’s been in a situation to make a decision like this.

Continue reading...

The Australian economy lost 27,100 full-time jobs in April as unemployment rose to 3.7%

Posted on by

The labour market has remained tight since Covid curbed the influx of migrants and foreign students

Australia’s economy shed 27,100 full-time jobs last month, easing concerns that the Reserve Bank may need to hike its interest rate again to curb inflation.

The country’s unemployment rate in April rose to 3.7%, seasonally adjusted, the Australian Bureau of Statistics said on Thursday, up from a reported 3.5% for March. Economists had forecast it would remain at March’s 3.5% level, close to a half-century low.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

Regional Australia property market dips as prestige areas give up pandemic gains

Posted on by

Big beneficiaries of regional migration during Covid such as Byron Bay have been hit hardest by increasing interest rates, experts say

Regional Australia’s housing market has taken another hit with prestige areas such as Byron Bay continuing to reverse pandemic gains.

Richmond-Tweed (-24.2%), the southern highlands and Shoalhaven (-16.0%) and Illawarra (-13.7%) in New South Wales recorded the largest annual declines in house values.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

Australia news live: Dutton condemns ‘scumbags’ and ‘sick individuals’ after weekend Nazi display in Melbourne

Posted on by

Ahead of Reserve Bank releasing board meeting minutes, opposition leader continues to accuse budget of being inflationary. Follow the day’s news live

Dutton also brushed off the idea that he needs to be careful with his language around migration.

Now in terms of the dog whistling comments and the rest of it. They are comments made by former Labor staffers who now masquerade as journalists. So I don’t take that as authoritative sort of assessment of my view which I think is quite valid.

The best thing we can do for Australian families at the moment is reduce their mortgage payments.

Continue reading...

Australian banks announce new anti-fraud platform to help quickly freeze scam payments

Posted on by

Move adds to ‘arsenal of anti-scam initiatives’ as consumer rights groups call for laws to see banks reimburse victims

Australian banks have announced a platform that will help them act quickly to freeze money being sent to scammers by allowing the reporting of bank-to-bank scam payments in close to real time.

On Tuesday the Australian Banking Association announced the new Fraud Reporting Exchange (FRX) platform, which will facilitate the quick reporting of fraudulent payments as they are transferred to another bank. The move will boost “the likelihood that funds can be frozen and returned to customers”, the association said in a statement.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...