Category Archives: Australian economy

Collapse in new home listings in Sydney and Melbourne hits real estate company profits

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Domain chief Jason Pellegrino says decline is worse than during Covid lockdowns and banking royal commission

A collapse in the number of new homes on the market, especially in Sydney and Melbourne, is outpacing even the shaky listing rates recorded during pandemic lockdowns, weighing on the profits of real estate companies.

The chief executive of property portal company Domain Group, Jason Pellegrino, said on Thursday that the scale of listings declines during the last three months of 2022 also eclipsed pullbacks recorded during the banking royal commission, which scrutinised lending practices in public hearings in 2018.

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More light and less heat would be appreciated at Philip Lowe’s next grilling on Friday

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Lost in the questioning from hostile senators was much insight into why the Reserve Bank wants to keep raising rates

There’s no doubt the Reserve Bank governor Philip Lowe’s appearance before Senate estimates on Wednesday was good theatre.

Dubbed by one media outlet as Australia’s “most-loathed banker”, Lowe parried questions from mostly hostile senators demanding to know why the central bank had inflicted a record nine interest rate rises in a row, with more to come.

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Australia politics live: Philip Lowe says RBA ‘still unsure’ how high interest rates will go during Senate estimates grilling

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RBA boss tells Senate estimates about rationale for rate rises as Adam Bandt demands end to new coal and gas projects. Follow live

Around and around we go …

So CBA shareholders are to get a (fully franked) dividend of $2.10 for each of their share – 20% more than the last time dividends were sent out.

We reported strong financial and operational performance in our financial results for the six months ended 31 December 2022. Our cash net profit after tax of $5,153 million reflects the Bank’s customer focus and disciplined strategic execution. Our continued balance sheet strength and capital position creates flexibility to support our customers and manage potential economic headwinds, while delivering sustainable returns to shareholders. A fully franked interim dividend of $2.10 per share was determined, an increase of 20% on 1H22, driven by organic capital generation and a reduction in share count from share buy-backs. Despite the current uncertainty, your Board and management feel optimistic for the future and are committed to delivering for our customers and for you, our shareholders

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Philip Lowe says interest rate rises painful but for the best, predicting more to come

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Inflation is dangerous, corrosive and hurts people, RBA governor tells Senate estimates

The Reserve Bank governor, Philip Lowe, says he has heard about the personal pain caused by soaring interest rates with a “very heavy heart” – but tackling “dangerous” inflation was critical even if the moves were unpopular.

Lowe, making his first public appearance for 2023 before Senate estimates on Wednesday, reiterated the challenges of achieving a “fairly soft landing” for the economy with unemployment rising only to 4.5% during next year.

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Four questions the RBA and Philip Lowe may face during grilling from MPs

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Further rate rises, Reserve Bank strategy, transparency and whether to extend Lowe’s term are likely to come under scrutiny

When Philip Lowe fronts Senate estimates on Wednesday and the House of Representatives’ economics committee on Friday, the governor of the Reserve Bank of Australia will be peppered with questions about the central bank’s performance and thinking.

Here are four key issues he and his RBA colleagues will likely be asked about during the review of the central bank.

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No questions asked: money laundering thrives in Australia because of professionals willing to facilitate it

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Lawyers, accountants and real estate agents face can little scrutiny and there is as yet no action from government to increase regulation

Raids earlier this month by the Australian federal police provided a rare window into the shady world of international money laundering. Australia is far from a model global citizen when it comes to cracking down on money laundering – and property has become a favoured vehicle for organised crime to hide and transfer dirty money.

The AFP arrested nine people, including the alleged head of the money-laundering organisation, Stephen Xin, at his Vaucluse home. They have now been charged with multiple money-laundering and proceeds-of-crime offences, allegedly carried out in support of the organisation’s extensive activities.

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Australia should force banks to repay scam victims and adopt better protections, advocates say

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Calls for federal government to mandate the checking of account details before money transfers are made

The federal government should take action to force banks to reimburse scam victims and check the account details match up on transactions to stop scams before the money is lost, consumer rights advocates say.

The call comes as Australia’s big four banks pushed back on mandatory reimbursements, arguing they could “inadvertently lead to increases in scam activity” and that customers should keep themselves safe.

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Jim Chalmers confident Australia will avoid recession despite warnings of more interest rate rises

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The treasurer also noted ‘very encouraging’ signs on power prices falling, saying Labor’s energy price relief package was working

The treasurer Jim Chalmers says there are “very encouraging” signs on power prices falling and is still confident Australia will avoid a recession despite continuing interest rate rises.

Last week in its first meeting for the year, the Reserve Bank increased the cash rate for the ninth time in a row to 3.35% and warned it was considering even more interest rate rises in coming months.

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Fines against WA climate protester ‘absurdly excessive’, Human Rights Watch says; refund for Myki charges during outage – As it happened

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Activist pleaded guilty on Friday to criminal damage. This blog is now closed

Productivity commission report will be released in March

Chalmers says he has received a five-year review from the productivity commission about how Australia can respond to flagging productivity across the Australian economy.

I’d like to do that sooner, ideally in May, so that we can have this national debate about our productivity performance and some of the recommendations in there. Now, inevitably, a government won’t pick up and run with every single one of the recommendations from the Productivity Commission, but there may be some that we can run with. There will be some that align with the government’s economic plan and our policy objectives.

No doubt people will want to ask him about that and he can explain it. I think there’s a broader issue here about how the bank communicates the context for its decisions. This is one of the things that I have been discussing with the RBA Review Panel. I actually discussed it with them on Friday in one of the regular meetings that I have with the review panel, how they communicate their decisions and the context behind their decisions is one of the key focuses of that review.

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Reserve Bank causing households ‘too much pain’ with rate rises, says union chief Sally McManus

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Australian union leader says the absence of labour market expertise on the RBA board had caused ‘missteps’

The head of Australia’s union movement has blasted the Reserve Bank and its governor for a lack of “understanding” that rate rises are causing “too much pain” and low income earners have exhausted savings.

The Australian Council of Trade Unions secretary, Sally McManus, made the comments on Thursday after a ninth interest rate hike – and suggestions more increases will follow – sparked fears monetary policy could be tightened too far, risking recession.

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Greens and crossbench join Coalition to hand Labor first major defeat in parliament

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Senate blocks attempt to water down super funds’ transparency rules

The Greens and Senate crossbench have teamed up with the Coalition to hand the Albanese a major parliamentary defeat, disallowing its regulations watering down superannuation funds’ transparency.

The Greens joined the Senate revolt on Thursday, after warning earlier in the week it intended to help defeat Labor because the government backflipped on the unrelated issue of million-dollar fines for bankers.

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Labor urged to halve $8bn a year in fuel tax credits for trucks and heavy vehicles

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Reforming the scheme would shrink the budget deficit and help Australia hit net zero emissions by 2050, the Grattan Institute says

The Albanese government has been urged to halve the $8bn a year in fuel tax credits it gives mining trucks, semi-trailers and other heavy vehicles, with a new report finding changes are crucial for budget repair and meeting emissions targets.

Fuel tax credits have been “gnawing away an ever-growing share of fuel tax revenue”, with only half of the current amount spent justified in economic or social terms, according to a Grattan Institute report released on Monday.

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Jim Chalmers says it’s absurd to expect him to copy Paul Keating as critics lash values-based capitalism essay

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Treasurer says 2023 priorities include cost-of-living relief, a tax expenditure statement and the intergenerational report and wellbeing framework

Jim Chalmers has declared it is “absurd” to think the Albanese government in 2023 will be a photocopy of the Hawke and Keating governments in the wake of a sustained backlash against his new essay championing values-based capitalism.

The treasurer says the overwhelmingly negative reaction to his summer think piece, published by the Monthly last month, is out of step with sentiment in the investor community and also reveals a disconnect between some opinion leaders in Australia and cutting-edge economic policy analysis overseas.

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NSW Liberals promise households $250 in electricity bill support if re-elected

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Dominic Perrottet says homes will be able to receive the rebate if they compare energy providers

New South Wales residents will receive a $250 rebate for comparing energy providers and plans, in the latest Coalition election promise ahead of next month’s state election.

The premier, Dominic Perrottet, said households would be able to access the one-off cost-of-living payment by comparing energy plans using a tool on the Service NSW website.

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Sydney renter hit by 35% hike as housing crisis sparks calls to cap increases

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Tenants’ Union says some form of rent control is needed to alleviate pressure during a ‘nasty’ time in the market

Millie Bannister was already anxious about how much the rental market had skyrocketed in Sydney when she received a letter from her landlord saying they wanted to increase her rent by 35%.

“Last time, it only increased by $60, but now it’s going to increase by $270 a week, which is a 35% increase, and around $12,000 per year. For me and my roommate, two people in their mid-20s, it is not [easy] to wrangle with.”

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Superannuation tax breaks will cost budget $52bn, almost matching Australia’s age pension

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New analysis calls for major changes including restrictions on concessions as the country risks having ‘two classes of state-funded retirees’

Tax breaks for superannuation will cost the federal budget $52.5bn this financial year, almost as much as the aged pension, according to a new analysis.

A research paper by the Australia Institute argues that since super tax concessions cost almost as much as the $55.3bn spent on the pension, Australia has “two classes of state-funded retirees in Australia”.

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Australia news live: voice working group says Dutton committed to ‘further talks’; Alice Springs report may not be made public until next week

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Follow the day’s news live

Australian batter Usman Khawaja has been cleared to join his teammates in India after his visa issues were sorted, AAP reports.

Pakistan-born Khawaja will fly out of Melbourne today, more than a day later than planned, after an anxious wait for his visa to be approved.

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Business sector has driven shift to ‘values-based capitalism’, Jim Chalmers says

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Treasurer hits back at criticism of his essay that championed co-investment and economic inclusion

Jim Chalmers says Australia’s business and investment community has driven a shift to values-based capitalism, hitting back at a volley of criticism in some news outlets after the publication of the treasurer’s 6,000-word essay championing co-investment and economic inclusion.

Chalmers made the observation on Wednesday while leading a round of consultation with the investment community about a new framework for disclosing climate-related risk. The treasurer participated in a round table convened by the Australian arm of the UN Principles for Responsible Investment initiative.

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Capsule found after ‘needle in a haystack’ search – as it happened

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This blog is now closed

The deputy prime minister and defence minister, Richard Marles, spoke to ABC AM Radio from London following a meeting with the UK prime minister, Rishi Sunak.

Marles would not be drawn into whether he discussed with Sunak the possibility of Australia acquiring British built nuclear submarines under the Aukus deal but said when the announcement is made it will be a “genuinely trilateral effort.”

Prime Minister Sunak commented on just how full the agenda is between our two countries and how much that is making – perhaps our oldest and most historic relationship – one which is deeply relevant in in the contemporary moment and certainly Aukus is central to that.

And we’re close to announcement and I’m not about to preempt that now. But I think what you’ll see is when we ultimately do announce the optimal pathway that we’ve been working on with both the United States and United Kingdom, that what it really is, is a genuinely trilateral effort to see by the UK and the US provide Australia with a nuclear powered submarine capability.

We’re confident that what we will be announcing in the coming weeks is a pathway that will be able to be delivered by all partners on time.

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Australia news live updates: ClubsNSW chief says he ‘misspoke’ in linking Perrottet’s faith to pokies policy

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Independent MP Alex Greenwich calls on Josh Landis to step down following comments about NSW premier. Follow the latest updates live

Alice Springs’ convention centre was packed last night for a meeting where business owners alleged they’ve suffered losses due to government inaction.

The ABC is reporting that organiser and business owner Garth Thompson told the crowd that the Northern Territory government had neglected Alice Springs and residents “deserve to be compensated for what the government has put us through”.

I’m more than proud to stand here and say we, as a community of Alice Springs, are about to sue our government for $1.5 billion in compensation.

Those of us who came here for a community meeting ended up listening to 20 to 30 minutes of a local business owner essentially stir up a very emotive narrative centred around the protection of private property.

I think it’s fair to say that the premier has very little understanding of this issue and has acted from his conservative Catholic gut rather than based on evidence.

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