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Australian economy

Unemployment Rate Rose to 4.5%

Posted on by Laze Spasevski
Unemployment Rises as Hiring Slows
Australia’s job market is showing clear signs of cooling as the unemployment rate rose to 4.5% in September. That is up from 4.3% in August and 4.0% a year earlier, according to the Australian Bureau of Statistics. While businesses are still hiring, job creation isn’t keeping pace with population growth. Over the past year, employment grew by 1.3%, but the number of unemployed people jumped...
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Australians Find Better Value in Building

Posted on by Laze Spasevski
Home Construction Rises as Conditions Improve
With established property prices climbing, more Australians find better value in building. This is reflected in new data from the Housing Industry Association (HIA), which shows new home sales rose 25.9% in September and 4.0% over the quarter. HIA chief economist Tim Reardon said lower interest rates, government incentives and rising property prices have made building comparatively more aff...
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Businesses Urged to Boost Productivity

Posted on by Laze Spasevski
Businesses Urged to Boost Productivity as Wages Rise
As wages rise faster than prices, giving households more spending power, businesses are urged to boost productivity. Average weekly ordinary time earnings for full-time adults hit $2010 in May 2025, which was 4.5% higher than the year before, and significantly more than the 2.1% annual inflation rate recorded in the June quarter. However, Australian Industry Group CEO Innes Willox st...
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RBA Cautiously Optimistic on Inflation

Posted on by Laze Spasevski
RBA Cautiously Optimistic on Inflation
Why the RBA is cautiously optimistic on inflation comes down to recent data showing Australia’s cost-of-living pressures have eased further, with inflation continuing to cool. This gives the central bank reason to be hopeful, while still remaining careful in its outlook. The Australian Bureau of Statistics reported headline inflation at 2.1% in annual terms – the lowest rate since 2021 and ...
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Rate Cut Increased Borrowing Power

Posted on by Laze Spasevski
Rate Cut Increased Borrowing Power
The decision by the Reserve Bank of Australia to cut the cash rate earlier this month means the average person's borrowing power has increased. Not only that, it has also lowered the repayments of most borrowers. With rates now lower, lenders are starting to adjust their serviceability buffers. That shift means borrowers can show they can afford more on paper, effectively lifting their borr...
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Labour Market Showing Signs of Strain

Posted on by Laze Spasevski
Labour Market Showing Signs of Strain
Australia’s labour market is showing signs of strain as it delivered a mixed result in June, with unemployment rising but more people entering the workforce, according to new data from the Australian Bureau of Statistics. The unemployment rate increased to 4.3%, up from 4.1% in May and 4.0% in June 2024 – marking the highest level since November 2021. The underemployment rate also ticked up...
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New Guidelines Supporting Customers with Financial Hardship

Posted on by Laze Spasevski
New Guidelines Supporting Customer with Financial Hardship
Australia’s banks have strengthened their commitment to supporting customers experiencing financial hardship, with new industry guidelines aimed at making assistance more compassionate and easier to access. The updated guidelines, which was released by the Australian Banking Association (ABA), outline best practice for how banks should assist customers who are under pressure. These could ei...
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RBA Believes Local Economy is Softening

Posted on by Laze Spasevski
RBA Believes Local Economy is Softening
The Reserve Bank of Australia (RBA) believes the local economy is softening, although domestic conditions have generally evolved in line with expectations. The RBA noted during its latest monetary policy meeting, on 19-20 May, that GDP growth had picked up in late 2024. However, early 2025 data showed household consumption was weaker than expected. “Earlier declines in real household dispos...
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ATO Interest No Longer Tax Deductible

Posted on by Laze Spasevski
ATO Interest No Longer Tax Deductible
From 1 July 2025, the interest charged by the Australian Taxation Office (ATO) on overdue tax debts will no longer be tax deductible. Until now, some business owners have treated the general interest charge (GIC) – currently 11.17% and compounding daily – as a manageable expense. But from the 2025–26 financial year, that interest will increase your costs without reducing your tax bill. T...
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Consumers Cautious with Spending

Posted on by Laze Spasevski
Consumers Cautious with Spending
Based on the latest data from the Australian Bureau of Statistics, consumers are cautious with their spending, leading to challenging conditions for businesses. Household spending in April was just 0.1% higher than the month before, while retail spending was actually 0.1% lower, according to the latest data from the Australian Bureau of Statistics. This cautious spending behaviour is ref...
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