1 00:00:05,200 --> 00:00:06,720 Speaker 1: Fierce is what the Flux. 2 00:00:06,800 --> 00:00:09,680 Speaker 2: I'm Brett and justin app Monday, the tewond of December, 3 00:00:09,800 --> 00:00:10,280 Speaker 2: j boy. 4 00:00:10,320 --> 00:00:13,320 Speaker 1: The number of young Australians taking out private health insurance 5 00:00:13,320 --> 00:00:16,200 Speaker 1: has reached a record high in the September quarter. According 6 00:00:16,200 --> 00:00:18,799 Speaker 1: to APRI, more than fifteen million Aussies now have some 7 00:00:19,000 --> 00:00:22,120 Speaker 1: form of private health insurance and the main driver ossies 8 00:00:22,200 --> 00:00:25,520 Speaker 1: in their twenties taking out hospital cover used for mental 9 00:00:25,560 --> 00:00:26,480 Speaker 1: health treatment. 10 00:00:26,720 --> 00:00:29,760 Speaker 2: You seeing that flex a well somemer may mean music festivals, 11 00:00:29,840 --> 00:00:32,720 Speaker 2: Christmas parties and maybe a future many babies. It can 12 00:00:32,800 --> 00:00:35,320 Speaker 2: also mean antent gent to our bank account. And as 13 00:00:35,320 --> 00:00:37,720 Speaker 2: we've reached the silly season, this month's Academy is the 14 00:00:37,760 --> 00:00:40,080 Speaker 2: perfect way to navigate the ins and outs and what 15 00:00:40,240 --> 00:00:42,280 Speaker 2: to do this silly season. To make sure to download 16 00:00:42,320 --> 00:00:44,520 Speaker 2: the Flux app and check out the brand new. 17 00:00:44,440 --> 00:00:48,360 Speaker 1: Academy three Ominous Stories today, Jesi boy, Let's do it 18 00:00:48,440 --> 00:00:52,559 Speaker 1: for our first, the Australian government has green lit new 19 00:00:52,640 --> 00:00:56,360 Speaker 1: legislation that will force multinational companies like Netflix, Apple and 20 00:00:56,400 --> 00:00:59,480 Speaker 1: Microsoft to pay a minimum of fifteen percent tax better. 21 00:00:59,360 --> 00:01:01,240 Speaker 2: Than what they're paying out man, So tell me a 22 00:01:01,240 --> 00:01:01,920 Speaker 2: little bit. 23 00:01:01,800 --> 00:01:04,240 Speaker 1: More, well, Juzi boy, we know that the big dogs 24 00:01:04,240 --> 00:01:06,480 Speaker 1: of tech have been on ossie shaws for a very 25 00:01:06,520 --> 00:01:07,000 Speaker 1: long time. 26 00:01:07,080 --> 00:01:09,840 Speaker 2: Now. Yeah, Apples, yea, Amazon's in, Netflix, your, Microsoft's. The 27 00:01:09,880 --> 00:01:10,600 Speaker 2: list goes on. 28 00:01:10,840 --> 00:01:13,600 Speaker 1: And while we may love their products, the Australian tax 29 00:01:13,640 --> 00:01:16,000 Speaker 1: officer doesn't have the warmest feelings towards them. 30 00:01:16,040 --> 00:01:18,440 Speaker 2: That's because many of the major tech companies haven't been 31 00:01:18,440 --> 00:01:21,920 Speaker 2: paying taxes proportional to the profit that they're pocketing in Australia. 32 00:01:21,959 --> 00:01:24,560 Speaker 1: In fact, Jasi Boy, in the twenty twenty three financial year, 33 00:01:24,640 --> 00:01:27,800 Speaker 1: many large tech companies did not pay tax in Australia at. 34 00:01:27,600 --> 00:01:30,600 Speaker 2: All, companies like Netflix, Canva and even Sony. 35 00:01:30,760 --> 00:01:33,360 Speaker 1: So late last week, the Australian government joined more than 36 00:01:33,360 --> 00:01:36,160 Speaker 1: one hundred and thirty five other countries to apply a 37 00:01:36,400 --> 00:01:39,080 Speaker 1: global minimum tax of fifteen percent. And what does this 38 00:01:39,240 --> 00:01:41,679 Speaker 1: actually mean, I'm glad you asked, Jusi Boy. It means 39 00:01:41,680 --> 00:01:44,280 Speaker 1: that a company with more than one point two billion 40 00:01:44,280 --> 00:01:47,080 Speaker 1: dollars in global revenue they need to pay at least 41 00:01:47,160 --> 00:01:49,800 Speaker 1: fifteen percent tax across their global operation. 42 00:01:49,960 --> 00:01:52,120 Speaker 2: And that means it can't start profit shifting money from 43 00:01:52,120 --> 00:01:54,840 Speaker 2: Australia to Ireland, to the Cayman Islands and beyond. 44 00:01:55,000 --> 00:01:58,040 Speaker 1: And the goal in Australia is that multinational companies pay 45 00:01:58,080 --> 00:02:00,680 Speaker 1: a fair amount of tax for the revenue earned in 46 00:02:01,000 --> 00:02:01,840 Speaker 1: our country. 47 00:02:01,920 --> 00:02:03,360 Speaker 2: So what is the key learning here. 48 00:02:03,520 --> 00:02:06,200 Speaker 1: It's time for the world's biggest companies to pay tax 49 00:02:06,280 --> 00:02:08,080 Speaker 1: in the countries where they make money. 50 00:02:08,120 --> 00:02:11,080 Speaker 2: You see, Beman, major tech companies have been using very 51 00:02:11,120 --> 00:02:14,799 Speaker 2: sophisticated accounting to minimize their tax in Australia. 52 00:02:14,320 --> 00:02:16,679 Speaker 1: Because Australia's thirty percent corporate tax rate is one of 53 00:02:16,680 --> 00:02:17,720 Speaker 1: the highest in the world. 54 00:02:17,800 --> 00:02:19,520 Speaker 2: And how do these tech companies do. 55 00:02:19,480 --> 00:02:22,440 Speaker 1: This, Jollie Boyd's pretty simple. They keep a physical presence 56 00:02:22,560 --> 00:02:25,800 Speaker 1: in tax effective countries like becam An Islands, or like 57 00:02:25,919 --> 00:02:26,959 Speaker 1: Ireland and be Man. 58 00:02:27,040 --> 00:02:28,959 Speaker 2: You can see, for example, in the twenty twenty three 59 00:02:29,000 --> 00:02:31,800 Speaker 2: financial year, Apple made more than twelve billion dollars in 60 00:02:31,840 --> 00:02:33,800 Speaker 2: income in Australia. 61 00:02:33,120 --> 00:02:35,320 Speaker 1: But if I look over here, it only paid one 62 00:02:35,400 --> 00:02:37,680 Speaker 1: hundred and forty two million dollars in tax, which is 63 00:02:37,760 --> 00:02:39,040 Speaker 1: just over one percent of earnings. 64 00:02:39,040 --> 00:02:41,040 Speaker 2: So be man in. This new legislation, which passed in 65 00:02:41,040 --> 00:02:43,480 Speaker 2: Australia and more than one hundred other countries, means that 66 00:02:43,560 --> 00:02:45,160 Speaker 2: major tech companies will need to. 67 00:02:45,160 --> 00:02:48,519 Speaker 1: Cough it up if they want to operate in these countries. 68 00:02:48,120 --> 00:02:49,880 Speaker 2: And the man at once. In effect, this could have 69 00:02:49,960 --> 00:02:53,480 Speaker 2: a huge impact on the profits of these massive companies. 70 00:02:53,120 --> 00:02:55,600 Speaker 1: Which could spell some bad news for Wall Street. 71 00:02:56,240 --> 00:02:59,720 Speaker 2: For our second story, Vergin Australia is one step closer 72 00:02:59,800 --> 00:03:02,880 Speaker 2: to finalizing its partnership with Qatar Airways after the A 73 00:03:03,040 --> 00:03:05,880 Speaker 2: Triple C gave it the all clear to start selling 74 00:03:05,880 --> 00:03:06,560 Speaker 2: flights together. 75 00:03:06,800 --> 00:03:10,200 Speaker 1: Definitely not what Quani wants to hear, Juzzy boy, tell 76 00:03:10,240 --> 00:03:10,520 Speaker 1: me more. 77 00:03:10,600 --> 00:03:13,160 Speaker 2: Okay, So, Virgin Australia is the ouzsie airline that launched 78 00:03:13,160 --> 00:03:15,760 Speaker 2: back in two thousand as at Virgin Blue, then rebranded 79 00:03:15,760 --> 00:03:19,000 Speaker 2: to Virgin Australia in twenty eleven, but went bust during 80 00:03:19,040 --> 00:03:21,240 Speaker 2: COVID and just when Quantus thought it had the airline 81 00:03:21,240 --> 00:03:24,080 Speaker 2: market all to itself, Virgin Australia ruse like a phoenix 82 00:03:24,120 --> 00:03:26,320 Speaker 2: out of the ashes. Now, Josie boy, you may remember 83 00:03:26,360 --> 00:03:28,600 Speaker 2: when we spoke about Qatar Airways plans to buy a 84 00:03:28,680 --> 00:03:31,640 Speaker 2: twenty five percent stake in Virgin Australia. I do, and 85 00:03:31,680 --> 00:03:35,120 Speaker 2: it was subject to the A Tribra C and verbs approval. Yep. 86 00:03:35,120 --> 00:03:38,320 Speaker 1: But now Virgin Australia and Qatar have taken one step 87 00:03:38,360 --> 00:03:40,320 Speaker 1: closer to formalizing this marriage. 88 00:03:40,360 --> 00:03:42,920 Speaker 2: Yeah, the a Triple c's given Virgin Australia the green 89 00:03:43,000 --> 00:03:46,880 Speaker 2: light to start selling tickets on Qatar Airways operated flights 90 00:03:46,880 --> 00:03:47,560 Speaker 2: from Australia. 91 00:03:47,640 --> 00:03:50,840 Speaker 1: This means that Qatar Airways will effectively double its flights 92 00:03:50,920 --> 00:03:54,040 Speaker 1: in and out of Australia from June twenty twenty five. 93 00:03:53,960 --> 00:03:56,080 Speaker 2: Meaning more competition on international routes. 94 00:03:56,160 --> 00:03:58,600 Speaker 1: But hold your horses right there, Jouzzy boy, not one 95 00:03:58,680 --> 00:04:01,960 Speaker 1: step further, because this is just an interim authorization by 96 00:04:01,960 --> 00:04:03,240 Speaker 1: the Atriple C YEP, the. 97 00:04:03,200 --> 00:04:05,960 Speaker 2: Atriable See and Foreign Investment Review Board won't make a 98 00:04:06,000 --> 00:04:08,600 Speaker 2: final decision until March or April next year. 99 00:04:08,760 --> 00:04:12,720 Speaker 1: And no surprises here, Quantus is digging in its heels 100 00:04:12,760 --> 00:04:14,880 Speaker 1: to try and stop this deal from taking place. 101 00:04:15,240 --> 00:04:16,640 Speaker 2: So what is the key learning here? 102 00:04:16,800 --> 00:04:21,160 Speaker 1: More airline capacity typically means more competition and therefore lower airfares. 103 00:04:21,200 --> 00:04:24,160 Speaker 2: It all comes down to the basics of supply and demand. 104 00:04:24,240 --> 00:04:26,760 Speaker 1: Now, this new Qatar Virgin deal will mean there is 105 00:04:26,800 --> 00:04:30,000 Speaker 1: more than fourteen hundred new seats available each day from 106 00:04:30,000 --> 00:04:32,400 Speaker 1: Australia to somewhere overseas. 107 00:04:32,040 --> 00:04:34,680 Speaker 2: And according to Virgin, Australian airfares to Europe have jumped 108 00:04:34,680 --> 00:04:38,160 Speaker 2: more than forty percent, since COVID and I can confirm, so. 109 00:04:38,200 --> 00:04:41,080 Speaker 1: Jazzy Boy having more capacity means that airlines need to 110 00:04:41,080 --> 00:04:42,440 Speaker 1: be more competitive on prices. 111 00:04:42,480 --> 00:04:44,960 Speaker 2: But here's the thing, be Man. Qatar can reduce its 112 00:04:45,000 --> 00:04:48,279 Speaker 2: airfares a lot more than Quantus can. Why is that 113 00:04:48,839 --> 00:04:52,039 Speaker 2: largely because qatar airways labor costs are estimated to be 114 00:04:52,040 --> 00:04:53,760 Speaker 2: about a third of quantuses. 115 00:04:53,920 --> 00:04:56,680 Speaker 1: Wow, that's because of different industrial relation agreements. 116 00:04:56,760 --> 00:04:59,839 Speaker 2: So while Katar always may introduce new flights and lower 117 00:04:59,839 --> 00:05:02,840 Speaker 2: the airfares, what kind of as a price for And. 118 00:05:02,800 --> 00:05:06,000 Speaker 1: That is why they so fiercely are against this new partnership. 119 00:05:06,520 --> 00:05:10,000 Speaker 2: For our third and final story, Uber is under investigation 120 00:05:10,080 --> 00:05:13,000 Speaker 2: in the US for making it subscription service Uber one 121 00:05:13,160 --> 00:05:14,840 Speaker 2: too hard to cancel. 122 00:05:14,839 --> 00:05:17,760 Speaker 1: The typical story, too easy to sign up, too hard 123 00:05:17,760 --> 00:05:20,039 Speaker 1: to cancel? What is going on here? 124 00:05:20,120 --> 00:05:22,240 Speaker 2: So we want to know Uber the heavily funded now 125 00:05:22,360 --> 00:05:24,280 Speaker 2: nasdek listed a ride sharing app. 126 00:05:24,080 --> 00:05:26,120 Speaker 1: Founded in two thousand and nine and has grown to 127 00:05:26,160 --> 00:05:29,760 Speaker 1: over seventy five million active users around the world. But juzzboy. 128 00:05:29,880 --> 00:05:32,680 Speaker 1: Now Uber is in hot water once again, this time 129 00:05:32,720 --> 00:05:35,039 Speaker 1: with the US Federal Trade Commission, which is kind of 130 00:05:35,120 --> 00:05:36,560 Speaker 1: like the ariple c here in Australia. 131 00:05:36,640 --> 00:05:41,040 Speaker 2: Yeah, the FTC is investigating Uber's subscription one service, Uber one. Yep. 132 00:05:41,040 --> 00:05:43,160 Speaker 1: They try and understand a little bit more about the 133 00:05:43,440 --> 00:05:46,400 Speaker 1: enrollment and cancelation processes of Uber one. 134 00:05:46,240 --> 00:05:48,520 Speaker 2: Because the thinking is that Uber makes it very easy 135 00:05:48,560 --> 00:05:50,560 Speaker 2: to sign up to Uber one, but not so easy 136 00:05:50,600 --> 00:05:55,159 Speaker 2: to cancel. Ah, the old negative option marketing, So what 137 00:05:55,360 --> 00:05:57,800 Speaker 2: is the key learning here? Negative option marketing is a 138 00:05:57,839 --> 00:06:01,719 Speaker 2: strategy where a customer's inaction is considered consent to be 139 00:06:01,839 --> 00:06:04,760 Speaker 2: charged for goods or services, and as a result, consumers 140 00:06:04,760 --> 00:06:07,440 Speaker 2: are automatically enrolled in the service and need to opt 141 00:06:07,440 --> 00:06:08,520 Speaker 2: out if they want to stop. 142 00:06:08,560 --> 00:06:12,560 Speaker 1: But doziboy. Here's the issue. Some companies create intentionally difficult 143 00:06:12,600 --> 00:06:13,640 Speaker 1: cancelation flows. 144 00:06:13,720 --> 00:06:16,000 Speaker 2: The idea is that it traps people into paying for 145 00:06:16,080 --> 00:06:18,760 Speaker 2: something just because they didn't know how to cancel and 146 00:06:18,839 --> 00:06:19,320 Speaker 2: does a boy. 147 00:06:19,400 --> 00:06:21,440 Speaker 1: Uber isn't the first company to do this, Nope. 148 00:06:21,520 --> 00:06:25,360 Speaker 2: The FDCs recently sued Amazon and Adobe for allegedly making 149 00:06:25,400 --> 00:06:28,080 Speaker 2: it too difficult to cancel subscriptions as well. And given 150 00:06:28,120 --> 00:06:30,760 Speaker 2: the revenue from Uber One's membership fees are in excess 151 00:06:30,839 --> 00:06:34,200 Speaker 2: of one billion dollar run rate, this could be very 152 00:06:34,200 --> 00:06:37,360 Speaker 2: costly for Uber. Fusam as the silly season comes up 153 00:06:37,400 --> 00:06:40,640 Speaker 2: in summer with music festivals, Christmas parties, and a whole 154 00:06:40,680 --> 00:06:43,440 Speaker 2: lot of social activity. In the Academy this month, we 155 00:06:43,520 --> 00:06:46,120 Speaker 2: share all the best ways to still be responsible with 156 00:06:46,240 --> 00:06:48,200 Speaker 2: your money and have fun to make sure to download 157 00:06:48,200 --> 00:06:50,159 Speaker 2: the Flux app and check out the Academy this month. 158 00:06:50,200 --> 00:06:54,200 Speaker 1: Thanks for listening, and we'll see you on Wednesday.