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Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud Yr

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Speaker 1: the Order Kerni Whalbury and a waddery woman. And before

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Speaker 1: we get started on She's on the Money podcast, I

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Speaker 1: would like to acknowledge the traditional custodians of the land

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Speaker 1: of which this podcast is recorded on a wondery country,

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Speaker 1: acknowledging the elders, the ancestors and the next generation coming

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Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing

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Speaker 1: and the storytelling of you to make a difference for

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Speaker 1: today and lasting impact for tomorrow.

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Speaker 2: Let's get into it.

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Speaker 3: She's on the Money, She's on the Money.

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Speaker 4: Hello, and welcome to She's on the Money, the podcast

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Speaker 4: for annuals who want financial freedom. Welcome to the first

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Speaker 4: quarter for the new financial year and our quarterly market update.

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Speaker 2: That's very exciting for me, very exciting.

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Speaker 4: I want to obviously know a few things fee, but

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Speaker 4: I just really want to get this kind of right

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Speaker 4: because in my mind, there's a first quarter of the year. Yeah,

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Speaker 4: and there's the first quarter of the financial.

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Speaker 2: New financial year. So if you are like me and

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Speaker 2: you only recognize financial years instead of real years, you

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Speaker 2: would say that this is the first quarter, and a

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Speaker 2: quarter is three months of the new financial year, because

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Speaker 2: the end of financial year is June thirty, and so

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Speaker 2: new financial year starts on the first of July. Happy

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Speaker 2: New Year, Thank you, new year, new me. I have

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Speaker 2: no resolutions. That's okay, you get what you get.

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Speaker 4: It's your already goals.

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Speaker 2: No, because I've come to the very sad realization that

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Speaker 2: I never stick to all them. That's also yes, like

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Speaker 2: why mother, but onwards and upwards. Most people would celebrate

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Speaker 2: the new year on the first of January, but we

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Speaker 2: have a calendar year and a financial year, and today

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Speaker 2: we're talking financial years, so you are corrected. Is the

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Speaker 2: first quarter of the new financial year. And as you

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Speaker 2: said off air, you're physically present but not mentally present

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Speaker 2: for this episode. Is that right?

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Speaker 3: Oh?

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Speaker 2: Yeah?

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Speaker 4: I should preface it by saying, I am really going

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Speaker 4: to struggle with this one, because I f.

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Speaker 2: You're like, this looks boral.

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Speaker 4: Yeah, I can already feel a lot of numbers coming

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Speaker 4: my way, and you know how I get with numbers.

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Speaker 2: You know, And you know what, I think it's an

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Speaker 2: exciting episode. Let me try and reframe it for you.

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Speaker 2: Quarterly market update does sound bland? It sounds like some

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Speaker 2: financial newsletter that you'd click delete on immediately. But I

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Speaker 2: promise I'll try and make it as interesting as possible,

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Speaker 2: because it's actually in our best interests to be aware

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Speaker 2: of what has happened in the financial markets. So I'll

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Speaker 2: try and explain it in as simpler terms but also

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Speaker 2: as engaging a terms as possible, because I want you

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Speaker 2: to understand what's going on with the economy. Why the

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Speaker 2: heck is inflation still so high? What does it mean

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Speaker 2: when we're talking about cost of living? Like how do

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Speaker 2: these things actually happen in our market? So that you

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Speaker 2: sound really education a brunch next week?

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Speaker 4: Whoa, I've better book a brunch for two?

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Speaker 2: We can if I should be so lucky.

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Speaker 4: So I just I guess, like taking a look at

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Speaker 4: the whole year, it has been rough, cost of living,

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Speaker 4: all these things. Are we kind of coming into this

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Speaker 4: new financial year with a financial hangover? Or are we

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Speaker 4: refreshed and kind of like ready to go?

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Speaker 2: You know? I feel like we all have a financial

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Speaker 2: hangover right Like I'm seeing it in the industry, I'm

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Speaker 2: seeing it on social media as well. I think we're

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Speaker 2: just frustrated financially, and it's so fair given the current

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Speaker 2: state of the world. So maybe Beck, we are a

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Speaker 2: little bit hungover, maybe a little bit sluggish. Maybe it's

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Speaker 2: like day two hangover, you know when they linger, oh yeah,

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Speaker 2: one out of ten. But the global economy is still recovering,

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Speaker 2: but inflation seems to be lingering. I'd say at home,

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Speaker 2: inflation continues to move down towards the target, but the

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Speaker 2: progress is slower than expected. So I feel like a

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Speaker 2: weatherman explaining this to you. I'm like, but the progress

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Speaker 2: is slower than expected, like the rain is like moving

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Speaker 2: or something. But it's true, right, We're all hoping that

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Speaker 2: inflation goes down at a quicker rate. And at the

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Speaker 2: very start of this year, economists said, oh my gosh,

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Speaker 2: it's going to fall down, and it hasn't been. It's

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Speaker 2: definitely been going in the right direction, but it's taking

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Speaker 2: a lot longer. And then the domestic outlook, so Australia's

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Speaker 2: outlook remains positive, but economic activity in Australia does continue

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Speaker 2: to weaken as the years progress. So with GDP growth

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Speaker 2: during the December quarter so twenty twenty three slowing down

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Speaker 2: to zero point two percent from zero point three percent

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Speaker 2: in the preceding quarter, so that just means that things

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Speaker 2: are slowly slowing down over time. So we know that

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Speaker 2: inflation is going down and that's good, but it also

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Speaker 2: means that we're exporting less, so we're sending less products

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Speaker 2: out of Australia, which means our profit overall for what

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Speaker 2: the country is making from exporting stuff is going down.

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Speaker 4: And that is good for us.

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Speaker 2: It's not good for us, it's good for it. We

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Speaker 2: want to have high levels of export. We want our

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Speaker 2: country to be making a lot of money. So while

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Speaker 2: you're not personally profiting off that, if our services and

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Speaker 2: the goods and services that we sell as Australians are

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Speaker 2: high and doing really well, our economy is usually reflective

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Speaker 2: of that. However, if our economy is going down and

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Speaker 2: there's less being shipped out, there's less money coming into

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Speaker 2: the country.

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Speaker 4: Okay, when you're saying that the December quarter twenty twenty

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Speaker 4: three is slowing down to zero point two percent from

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Speaker 4: zero point three percent in the preceding quarter, is that

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Speaker 4: saying that basically, like right now, the price or everything,

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Speaker 4: the cost of living kind of like is still kind

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Speaker 4: of going up, but not as high as it once was.

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Speaker 2: It's not that related. So it means that economic activity

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Speaker 2: has weakened, so things that are being sold outside of

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Speaker 2: Australia are not as popular right now. But inflation is

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Speaker 2: sort of linked to that, but not not super strongly.

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Speaker 2: Sure so a little bit but not really.

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Speaker 4: Okay, and we hopefully will see this kind of change.

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Speaker 2: Hopefully we want to see it increase, like we want

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Speaker 2: lots of cash o lut coming into Australia from the

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Speaker 2: stuff that our local community produces.

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Speaker 4: Okay, I see, Okay, it's good to know. That's very

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Speaker 4: good to know. I mean, it doesn't look great right now, but.

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Speaker 2: No, it doesn't look great. And I know that the

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Speaker 2: difference probably in people's heads of zero point two percent

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Speaker 2: from zero point three percent seems really small. But we're

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Speaker 2: talking about the entire economy, so for that market to change,

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Speaker 2: there has been a definite difference between what is being exported.

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Speaker 2: Does that make sense? So like zero point two percent

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Speaker 2: doesn't sound like a whole heap, but it's actually a

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Speaker 2: difference that we need to be aware of.

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Speaker 4: Okay, Now, just kind of shifting gears a little bit. Today,

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Speaker 4: will obviously be talking about like wages and employment and

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Speaker 4: spending and saving as well, which is something that I

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Speaker 4: really struggle with.

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Speaker 2: But we're going to get on that. I think you

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Speaker 2: and I we're going to do a bex budget breakdown.

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Speaker 4: I would really really like that we're going to.

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Speaker 2: I think we're going to do it at that brunch

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Speaker 2: you promised me before.

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Speaker 4: That's right, Yes, the brunch we're going to this weekend.

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Speaker 4: So let's start off by looking at what's happening with

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Speaker 4: inflation and interest rates?

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Speaker 2: All right, very sexy. I like this, and I feel

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Speaker 2: like people are going to be more interested in wages

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Speaker 2: and employment and spending and saving the RGDP, so I'm

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Speaker 2: glad we said going away from that at the end

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Speaker 2: of June. A key measure for inflation actually jumped, so

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Speaker 2: it climbed to four percent in May, after edging up

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Speaker 2: from a recent low of three point four in February.

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Speaker 2: The Bureau of Statistics, so the ABS monthly Consumer Price Indicator,

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Speaker 2: produced an annual inflation rate of three point six back

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Speaker 2: in April, which is very sexy because I think you

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Speaker 2: would remembered that last year it was up past seven disgusting.

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Speaker 2: This was the same as the longer established Bureau of

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Speaker 2: Statistics quarterly measure, which produced three point six in March.

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Speaker 2: So that's good, she's consistent. We love to see it.

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Speaker 2: But the question is, what's the RBA actually going to

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Speaker 2: do with interest rates? If you've got a mortgage, you're

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Speaker 2: thinking the that's going to happen with my mortgage? Well,

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Speaker 2: the Westpac Banking Corp Economics team has been one of

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Speaker 2: the most accurate interest rate predictors in recent times, so

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Speaker 2: personally I have been looking towards them each time we

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Speaker 2: have this conversation, and they were not surprised by the

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Speaker 2: inflation rate coming and hot, and they have said that

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Speaker 2: they are still holding firm with their predictions for an

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Speaker 2: interest rate cut at the November RBA meeting, So that

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Speaker 2: is good to know. The caveat, though, is that the

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Speaker 2: decisions are based on available data, and we need to

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Speaker 2: remember that past performance is not a reliable predictor of

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Speaker 2: future performance, and if the data for this quarter gets ugly,

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Speaker 2: then the RBA is going to update their prediction, if

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Speaker 2: that makes sense. So I think the caveat here is

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Speaker 2: what I keep rolling off every time we talk about investment,

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Speaker 2: every time we talk about the markets. It's that past

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Speaker 2: performance is not a reliable predictor of future performance. And

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Speaker 2: I know that that seems like I'm trying to caveat it.

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Speaker 2: But you can't guarantee what's going to happen in the

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Speaker 2: future just because you've seen some stuff in the past.

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Speaker 4: Yeah, for sure.

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Speaker 2: It's like investment, it's like spending, it's like saving. We

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Speaker 2: know that historically, we can see what happens after a

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Speaker 2: global financial crisis. We can see what happens to an

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Speaker 2: economy who is in distress. However, we cannot predict how

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Speaker 2: in a different economy because everything has changed that will

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Speaker 2: impact us long term. So we can only guess, and

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Speaker 2: I think that they are very very educated guesses, And

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Speaker 2: as I said before, Westpac has been I would say,

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Speaker 2: the most bang on. So that's why I'm relying on

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Speaker 2: their data at this point. But as things stand back,

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Speaker 2: Westpac has forecast the following from the RBA for interest rates.

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Speaker 2: From four point three percent today, they're saying that potentially

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Speaker 2: in November it will drop down to four point one percent,

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Speaker 2: which is very sexy. Then March next year it will

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Speaker 2: drop down to three point eight five percent, June will

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Speaker 2: drop down to three point six percent. September we're in

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Speaker 2: twenty twenty five, still three point three five and then

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Speaker 2: December next year, right in time for Christmas, will be

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Speaker 2: three point one percent. So that seems it just seems

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Speaker 2: a lot more palatable than what we have been dealing with.

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Speaker 4: Yes, and this I'm guessing is more so for people

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Speaker 4: with mortgages and things like that.

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Speaker 2: Yeah, it's also important for your savings because we know

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Speaker 2: that every time someone's interest rate increases on their mortgage,

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Speaker 2: which at the moment, this is really relevant for you actually,

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Speaker 2: because we know you don't have a mortgage, so you're

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Speaker 2: watching all these people with mortgages increasing and you're probably

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Speaker 2: going not miss her a little bit, and that's really

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Speaker 2: exciting for you because you're not experiencing that. But what

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Speaker 2: this means is that you should basically be thinking about

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Speaker 2: seizing the opportunity on the savings account right because usually

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Speaker 2: the interest rate that is being charged on mortgage is

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Speaker 2: often reflective of what you can make in a savings account.

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Speaker 2: So if you haven't reviewed your high interest savings account recently,

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Speaker 2: because historically and if you listen to old episodes of

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Speaker 2: this podcast, I'm like, like, it's not even worth it.

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Speaker 2: You won't even make like two percent on a savings account.

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Speaker 2: And also, we do need to remember that you will

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Speaker 2: be paying tax on any amount of money that you make,

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Speaker 2: even if it is the interest rate on your savings account.

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Speaker 2: Tax time comes, you'll be paying tax on that. So

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Speaker 2: like making two percent on a savings account, you're like, oh,

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Speaker 2: that's the point, like right, you know, even if I've

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Speaker 2: got two grand of savings, like sometimes you're just like

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Speaker 2: literally not worth my time to even consider swapping and changing.

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Speaker 2: But now interest rates are high, which means your savings

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Speaker 2: accounts could also be high. So now's a good time

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Speaker 2: to check if your money is making money.

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Speaker 4: Gotcha.

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Speaker 2: So for you, Beck, if you've got any savings, now

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Speaker 2: would be the time to go, hmmm, is it working

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Speaker 2: or is it just sitting there being a little bit lazy?

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Speaker 4: Sure? Okay, well that takes me to my next question.

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Speaker 4: So I guess for people with mortgages, it's kind of

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Speaker 4: like you're spending more on your mortgage, and then for

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Speaker 4: people like me who don't have a mortgage, I'm hopefully

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Speaker 4: saving a little bit more. But in general, how a

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Speaker 4: households spending their money?

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Speaker 2: I would like to answer that question in zero point

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Speaker 2: two seconds, because I think I also need to address yes,

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Speaker 2: you'll be saving your money but Beck, I think you

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Speaker 2: and I can both agree that any additional money you

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Speaker 2: had to save has been going towards your grocery bill,

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Speaker 2: or your electricity or your housing. So like, don't for

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Speaker 2: one second think that I don't comprehend that life is

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Speaker 2: a bit tougher now. It's very sexy to have savings,

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Speaker 2: and if you're in that very fortunate situation to have savings, like,

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Speaker 2: I'm very proud of you, but I also don't want

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Speaker 2: people to think, oh, V said that you should be

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Speaker 2: saving right now, because that's actually not feasible for most

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Speaker 2: people in our community. Like life is tough right now,

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Speaker 2: everything is so expensive. But I think that what we

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Speaker 2: want to do with stuff like this is do a

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Speaker 2: market update so that we understand where we are right now,

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Speaker 2: because it is kind of doomy and gloomy at the moment,

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Speaker 2: Like mortgages are crippling people. We are looking at our

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Speaker 2: savings accounts start to dwindle because we didn't realize that,

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Speaker 2: you know, for our electricity bill, which we all know

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Speaker 2: is probably coming up really soon because we've just started

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Speaker 2: to crack into winter properly, we know it's going to

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Speaker 2: be higher, so you might have to dip into savings

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Speaker 2: for that, and that, let's be honest, sucks, Like, I'm

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Speaker 2: so happy that you have access to savings. I'm so

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Speaker 2: happy that he is there. But there is a light

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Speaker 2: at the end of the tunnel, and I think that

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Speaker 2: when in doubt, and I say this all the time,

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Speaker 2: zoom out and we can look at the bigger picture, Like,

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Speaker 2: how can we support long term wealth creation for me

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Speaker 2: while still, you know, being a little bit pissed off

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Speaker 2: about groceries?

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Speaker 4: Yeah?

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Speaker 2: Like side note, now's the time to check in on

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Speaker 2: your superannuation to make sure that that is still making money, because,

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Speaker 2: like Beck, I'm pretty sure most of our community couldn't

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Speaker 2: contribute more to their savings or investment right now. But

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Speaker 2: let's just make sure that our savings and investments are

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Speaker 2: working hard for us while we aren't contributing to them,

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Speaker 2: so that we aren't falling even further behind. Like, how

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Speaker 2: do we create a light at the end of the

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Speaker 2: tunnel so that we aren't feeling so bogged down? Does

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Speaker 2: that make sense? Yeah?

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Speaker 4: Definitely.

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Speaker 2: But back to your question, I'm sorry, I just felt

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Speaker 2: like that was really necessary. You asked me how households

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Speaker 2: are spending their money, and boy, let's talk about it.

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Speaker 2: So retail trade in March fell byzero point four percent

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Speaker 2: over the month after the increases in January and February,

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Speaker 2: and that's pretty normal. So we often see increases in

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Speaker 2: spending in January and February because post Christmas New Year

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Speaker 2: knew me, lots of people are feeling really optimistic, and

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Speaker 2: when you're optimistic, you often are a little bit tap happy.

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Speaker 2: But consumers pulled back on spending due to high costs

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Speaker 2: of living. This tailor's swift effect on spending in February

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Speaker 2: has proved to be temporary. So do you remember when

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Speaker 2: people coming out being like Tulu Swift's booming our me?

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Speaker 2: I like wrote a whole piece for the Age and

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Speaker 2: the City Morning Herald about it, and the mediocre middle

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Speaker 2: aged white man came for me, of course, and I

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Speaker 2: was like, I know, it was a really good piece.

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Speaker 2: You like read it and Craigs like, Victoria, this is

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Speaker 2: the worst piece of writing I've ever seen in my life,

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Speaker 2: and I go, thank you so much for the positive feedback.

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Speaker 2: But household final consumption expenditure in quarter four twenty twenty three,

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Speaker 2: so the last three months of last year rose a

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Speaker 2: little by point one percent over the quarter, following a

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Speaker 2: slight reduction of point two percent which was revised in

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Speaker 2: quarter three. So I know that these things don't seem

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Speaker 2: really big because I think in the grand scheme of things,

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Speaker 2: most people aren't used to talking in point one percent,

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Speaker 2: because if I said, Beck, your salary is increasing by

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Speaker 2: point one percent, you'd be like, WEO do do?

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Speaker 4: I'm like, oh, that's one dollar.

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Speaker 2: A ye, it's not even one dollary like means nothing

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Speaker 2: like it's actually so menial to you. But what we

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Speaker 2: need to remember is these point one and point two

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Speaker 2: percent changes, because they're on the grand scheme of millions

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Speaker 2: and millions of people here in Australia, they are actually

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Speaker 2: impactful and they are actually reflective of how our economy

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Speaker 2: is working. So you might go, that's not much of

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Speaker 2: a difference from point one to point two, but it

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Speaker 2: actually is in the grand scheme of things. So the

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Speaker 2: other things I wanted to point out rises in spending.

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Speaker 2: So across Australian households, we saw that electricity, gas and

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Speaker 2: other fuel, the price of that and the amount that

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Speaker 2: we were spending on that increased by six point nine percent.

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Speaker 2: You know how I said point one percent was impactful

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Speaker 2: six point nine percent cool kind of like not shocked, no,

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Speaker 2: because we're experiencing it right.

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Speaker 4: Yeah, Like it feels it's just so much.

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Speaker 2: Petrol's more expensive, our electricity bills, you know they're coming in.

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Speaker 2: I know that you've got housemates. You're probably going, oh,

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Speaker 2: I'll budget you know, fifty bucks for that next month,

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Speaker 2: and then it comes in and you split it and

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Speaker 2: you're like, oh, it's like ninety to what Like I

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Speaker 2: didn't see this coming ye, And I think that that's true.

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Speaker 2: Even gas is more expensive. I was doing a bit

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Speaker 2: of budgeting over the weekend because our house has gas heating,

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Speaker 2: and I was looking at it because our gas heater

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Speaker 2: is broken at the moment, and I was trying to

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Speaker 2: work out do we just install another one or do

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Speaker 2: I swap to like an electric one, because you know,

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Speaker 2: everything is quite expensive. The gas, I feel like, is exorbitant,

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Speaker 2: Like it's it's crazy at the moment.

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Speaker 4: It used to be the cheaper one too.

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Speaker 1: Yeah.

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Speaker 2: Yeah, Like remember anyway, rent and other dwelling services that rose,

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Speaker 2: and I want to say only by that rose, only

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Speaker 2: by zero point four percent. But I feel like we're

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Speaker 2: all feeling that a little bit harsher than it actually yet,

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Speaker 2: like point four percent. Like I feel like rent and

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Speaker 2: other dwelling services increased, not for me personally, but for

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Speaker 2: our community, and what I'm seeing more than your electricity bill.

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Speaker 2: I just feel like that feels that way. Apparently according

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Speaker 2: to the data, that's not true. Food increased by point

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Speaker 2: nine percent, health spending increased also by point nine percent,

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Speaker 2: and furnishing another household equipment increased by one point one percent,

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Speaker 2: which I just think that that's interesting. Across the board

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Speaker 2: we're seeing an increase, But I feel like the most

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Speaker 2: important thing is just to address the fact that the

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Speaker 2: cost of living right now is cooked beck yes, yes,

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Speaker 2: like just putting food on our table more expensive than

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Speaker 2: it was last year. And we all know that we

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Speaker 2: haven't had increases in our salaries to the same extent

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Speaker 2: that inflation has impacted us, which means ultimately your savings

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Speaker 2: or your ability to save if you are saving at

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Speaker 2: the moment, has gone backwards. And that just feels trashy.

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Speaker 4: As it does, and you can really feel it, like

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Speaker 4: it's not like super obvious, like maybe like a blow

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Speaker 4: for bread is a dollar more or like here and there,

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Speaker 4: but you know it's there. You can feel the pinch.

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Speaker 2: Exactly, which is why I don't think you're going to

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Speaker 2: be surprised by the next pieces of data I've got

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Speaker 2: for you. So those increases offset a fall in discretionary spending.

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Speaker 2: So discretionary spending is like the spending money you have

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Speaker 2: on the fun stuff in life, luxuries, and some of

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Speaker 2: the things that we saw was a step back in

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Speaker 2: people spending on hotels, cafes, and restaurants. Of course, that

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Speaker 2: went down by two point eight percent. Purchasing vehicles went

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Speaker 2: down by three point six percent, Clothing and footwear expenditure

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Speaker 2: has gone down by two point five percent, and then

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Speaker 2: cigarettes and tobacco has gone down by six point two percent,

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Speaker 2: So we know that all of those things are luxuries.

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Speaker 2: I mean, I'm going to be really selfish or maybe

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Speaker 2: inject some of my opinion where it's not needed, but

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Speaker 2: I'm kind of glad that people are spending less on

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Speaker 2: tobacco and cigarettes because I mean, that's good for their health.

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Speaker 2: But that is telling us that people are definitely feeling

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Speaker 2: the pinch, because at the end of the day, that

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Speaker 2: is a luxury, and you and I both know that

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Speaker 2: cigarettes and tobacco are so expensive in Australia now like

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Speaker 2: exorminantly so, so they have been something that people are

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Speaker 2: going can't afford this habit. I'm stepping back from it totally.

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Speaker 4: I do feel for those people because literally, like, as

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Speaker 4: you know, I've been very very very poor recently, and

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Speaker 4: when you're stressed about being poor, the other here can

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Speaker 4: buy a vape, which is I know I shouldn't be

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Speaker 4: like no.

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Speaker 2: But no, no, no, I'm not condoning it health, but for

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Speaker 2: you to do that, and like I'm just gonna make

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Speaker 2: a grand assumption here, when you purchase a vape, it's

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Speaker 2: got nicotine in it, right, yes, And people who purchase

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Speaker 2: vapes or cigarettes or tobacco have an addiction to that substance,

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Speaker 2: and that is absolutely fine. It is you know, your choice.

402
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Speaker 2: But to be cutting back on something that your body craves, yes,

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Speaker 2: means that we are impassioned financially, significantly financially.

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Speaker 4: The only reason I mentioned it is just to shout

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Speaker 4: out to all the people that are stress about money

406
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Speaker 4: and then also can't reduce their stressed by their usual

407
00:20:42,200 --> 00:20:45,080
Speaker 4: means exactly. That would be really trash it is, but

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Speaker 4: you know, I guess yeah, in a way, we're I

409
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Speaker 4: mean not in a way. We're definitely like helping our health.

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Speaker 2: So yeah, I know it's like a rock and a

411
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Speaker 2: hard place, And that's not me being like, you shouldn't smoke.

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Speaker 2: I think everybody who does knows that that's not a

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Speaker 2: habit that they would love to have long term, because like,

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Speaker 2: I understand the implications here, but for me, I think

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Speaker 2: that really draws attention to the fact that finances are

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Speaker 2: tough for a lot of people because we're now spending

417
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Speaker 2: significantly less on the things that our bodies crave and

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Speaker 2: during a stressful period of time, Like, isn't that what

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Speaker 2: you fall back on?

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Speaker 4: Exactly? Okay, so we're talking about spending. Are we at

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Speaker 4: all managing to save any money on average?

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Speaker 2: On average?

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Speaker 1: All right?

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Speaker 2: So when it comes to what we are saving, we've

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00:21:26,840 --> 00:21:30,359
Speaker 2: actually seen an increase in gross disposable income, which was

426
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Speaker 2: driven by a rise in compensation of employees, social assistance

427
00:21:34,560 --> 00:21:39,800
Speaker 2: benefits and interest received, and a decline in income tax paid.

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Speaker 2: I feel like you will love that because you're paying less,

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Speaker 2: so that's kind of sexy. This has boosted the household

430
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Speaker 2: savings ratio from one point nine percent, so hystorically people

431
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Speaker 2: were able to save one point nine percent, and now

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Speaker 2: we're talking three point two percent, which is I think

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Speaker 2: very very sexy. But can we talk about that percentage

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Speaker 2: because I've said a million times before on the podcast,

435
00:22:04,119 --> 00:22:09,160
Speaker 2: I do not believe in percentage based budgets because budgeting

436
00:22:09,160 --> 00:22:12,320
Speaker 2: for someone who earns forty thousand dollars and going beck,

437
00:22:12,680 --> 00:22:15,200
Speaker 2: you should be saving ten percent, and budgeting for someone

438
00:22:15,200 --> 00:22:17,920
Speaker 2: who earns four hundred thousand dollars and saying, beck, you

439
00:22:17,960 --> 00:22:21,159
Speaker 2: should be saving ten percent is unreasonable because if you

440
00:22:21,200 --> 00:22:23,800
Speaker 2: earn four hundred grand, I'm telling you right now, if

441
00:22:23,840 --> 00:22:25,920
Speaker 2: I was still a financial advisor and I sat down

442
00:22:26,000 --> 00:22:27,920
Speaker 2: with you, I would be trying to take way more

443
00:22:27,960 --> 00:22:30,240
Speaker 2: than ten percent off you to save and invest. I'd

444
00:22:30,280 --> 00:22:32,160
Speaker 2: be like, all right, well, what are you spending? How

445
00:22:32,160 --> 00:22:34,560
Speaker 2: does this work? Like I would be trying to maximize that,

446
00:22:34,640 --> 00:22:37,920
Speaker 2: Like most of your income would be going to savings

447
00:22:37,960 --> 00:22:41,000
Speaker 2: and investments if it was up to me. But if

448
00:22:41,040 --> 00:22:45,320
Speaker 2: you take a single person on forty thousand dollars, saving

449
00:22:45,359 --> 00:22:48,680
Speaker 2: ten percent is unreasonable and unfeasible. Yes, and a lot

450
00:22:48,720 --> 00:22:52,200
Speaker 2: of the popular spending people in the world, so we're

451
00:22:52,240 --> 00:22:54,719
Speaker 2: talking not to call them out specifically, but we've got

452
00:22:54,720 --> 00:22:57,199
Speaker 2: like Barefoot Investor. We've got Dave Ramsey, We've got you know,

453
00:22:57,280 --> 00:23:01,200
Speaker 2: all of the big hitters. They have percentage based budgets,

454
00:23:01,640 --> 00:23:05,200
Speaker 2: which I think make you feel like trash. Like imagine,

455
00:23:05,240 --> 00:23:07,680
Speaker 2: And don't get me wrong, I am obsessed with the

456
00:23:07,720 --> 00:23:10,679
Speaker 2: Barefoot Investor because he was the one who kind of

457
00:23:10,800 --> 00:23:15,600
Speaker 2: championed that financial literacy rise in Australia. He's the one

458
00:23:15,600 --> 00:23:20,560
Speaker 2: that like really got budgets into people's household conversations. He's

459
00:23:20,600 --> 00:23:23,719
Speaker 2: the one that when I was back in my retail jobs,

460
00:23:23,840 --> 00:23:26,840
Speaker 2: I would see people tapping their cards that had written

461
00:23:26,920 --> 00:23:30,960
Speaker 2: in tech stuff splurge on them. Like obsessed with people

462
00:23:31,000 --> 00:23:34,639
Speaker 2: taking control of their financial literacy. But in an economic

463
00:23:34,680 --> 00:23:37,040
Speaker 2: crisis like we're in today, Beck, if you were like

464
00:23:37,160 --> 00:23:38,679
Speaker 2: I don't know where to go, I don't know what

465
00:23:38,760 --> 00:23:42,960
Speaker 2: to do, and you picked up a Barefoot Investor book

466
00:23:43,119 --> 00:23:45,800
Speaker 2: and saw that he expected you to save ten percent,

467
00:23:46,560 --> 00:23:48,399
Speaker 2: you'd be like, I can't even adhere to that, Like

468
00:23:48,440 --> 00:23:50,520
Speaker 2: I'm not doing well, I'm not doing the right thing.

469
00:23:50,640 --> 00:23:52,760
Speaker 2: I feel like trash. Don't get me wrong, I'm not

470
00:23:52,800 --> 00:23:55,240
Speaker 2: saying it's a bad thing. Because the Barefoot Investor has

471
00:23:55,320 --> 00:23:59,720
Speaker 2: changed people's budgets and people spending and people's money story

472
00:23:59,760 --> 00:24:01,920
Speaker 2: for the better. There are so many people in our

473
00:24:01,920 --> 00:24:04,840
Speaker 2: community who have benefited from him, so it's not bad.

474
00:24:05,160 --> 00:24:07,040
Speaker 2: But I know if someone told me I needed to

475
00:24:07,040 --> 00:24:10,560
Speaker 2: be saving ten percent and I couldn't, i'd feel like trash. Yes,

476
00:24:10,880 --> 00:24:15,320
Speaker 2: this data tells us that historically, especially over the last

477
00:24:15,400 --> 00:24:17,840
Speaker 2: few years, people have only been able to save one

478
00:24:17,880 --> 00:24:21,320
Speaker 2: point nine percent back one point nine percent. But all

479
00:24:21,359 --> 00:24:24,920
Speaker 2: of these budget and cash flow gurus are telling us that, oh,

480
00:24:24,960 --> 00:24:26,200
Speaker 2: you should be saving.

481
00:24:25,880 --> 00:24:28,520
Speaker 4: Ten Yes, what and then it kind of like ruins

482
00:24:28,520 --> 00:24:29,919
Speaker 4: your motivation if you're like makes you.

483
00:24:29,920 --> 00:24:32,040
Speaker 2: Feel like trash. Let's actually zoom out and look at

484
00:24:32,080 --> 00:24:35,080
Speaker 2: the big picture. Are people able to save Yes, some

485
00:24:35,160 --> 00:24:37,360
Speaker 2: of them are able to save three point two percent now,

486
00:24:37,400 --> 00:24:39,560
Speaker 2: and that's very sexy, but that's not what a lot

487
00:24:39,560 --> 00:24:41,679
Speaker 2: of people set as their goals. So I think that

488
00:24:41,720 --> 00:24:44,160
Speaker 2: we need to see that it is hard for everyone.

489
00:24:44,640 --> 00:24:47,440
Speaker 2: So in addition to that, as of the first of July,

490
00:24:47,880 --> 00:24:50,800
Speaker 2: the Stage three tax cuts are coming into effect, which

491
00:24:50,840 --> 00:24:53,000
Speaker 2: I think is very sexy. And while this isn't a

492
00:24:53,040 --> 00:24:57,480
Speaker 2: lot of extra cash, it will affect everyone across the board,

493
00:24:57,960 --> 00:25:01,320
Speaker 2: especially in that space where you are kind of scrambling

494
00:25:01,480 --> 00:25:04,680
Speaker 2: even to save that three point two percent. Yes, sorry,

495
00:25:04,840 --> 00:25:06,040
Speaker 2: tax cut's sexy.

496
00:25:06,480 --> 00:25:10,960
Speaker 4: Yeah, very nice. You know I love I love eofy, So.

497
00:25:11,040 --> 00:25:12,800
Speaker 2: You just love getting more money? I do you love

498
00:25:12,800 --> 00:25:14,920
Speaker 2: your tax return so that you can blow it. I'm

499
00:25:14,960 --> 00:25:17,440
Speaker 2: obsessed with you, like it's one of my favorite things.

500
00:25:17,440 --> 00:25:19,240
Speaker 2: You're like, I'm gonna get my tax return and I'm like,

501
00:25:19,240 --> 00:25:21,920
Speaker 2: what are you doing establishing an emergency fund and becks

502
00:25:21,960 --> 00:25:25,600
Speaker 2: like no vapes, Yes, many neighbors.

503
00:25:26,920 --> 00:25:29,159
Speaker 4: I do have a long list of things, and I

504
00:25:29,160 --> 00:25:31,920
Speaker 4: don't think that I at the top the top, absolutely

505
00:25:32,119 --> 00:25:33,040
Speaker 4: always at the top, you know what.

506
00:25:33,200 --> 00:25:37,080
Speaker 2: I just love that we you are so different, but like, genuinely,

507
00:25:37,320 --> 00:25:39,320
Speaker 2: I could not care less what you spend your money

508
00:25:39,359 --> 00:25:41,760
Speaker 2: on as long as I've given you the education that

509
00:25:41,800 --> 00:25:43,960
Speaker 2: you need to make the right decision for you. And

510
00:25:44,000 --> 00:25:45,960
Speaker 2: if you go, well this is my values, I'll be

511
00:25:46,000 --> 00:25:47,840
Speaker 2: like slate queen. I love it.

512
00:25:47,920 --> 00:25:50,240
Speaker 4: I really appreciate you. You always give me the information I

513
00:25:50,280 --> 00:25:52,199
Speaker 4: need and I do nothing with it. But one day

514
00:25:52,240 --> 00:25:53,000
Speaker 4: I will one day.

515
00:25:53,040 --> 00:25:55,960
Speaker 2: I like that you've got it. And it's funny because like,

516
00:25:56,040 --> 00:25:58,760
Speaker 2: let's go back to like baby Victoria. You all know

517
00:25:58,880 --> 00:26:02,359
Speaker 2: I got into like plus thousand dollars worth of personal

518
00:26:02,400 --> 00:26:07,040
Speaker 2: debt and that sucked. But I had financial literacy back then.

519
00:26:07,160 --> 00:26:10,000
Speaker 2: My dad was an accountant. Did I listen to him? No,

520
00:26:10,119 --> 00:26:12,320
Speaker 2: what would he know? Like, why would he know anything

521
00:26:12,320 --> 00:26:15,160
Speaker 2: about money? And here's my dad going, look, Victoria, if

522
00:26:15,200 --> 00:26:18,520
Speaker 2: you at the very start of your career start saving

523
00:26:18,600 --> 00:26:22,560
Speaker 2: ten percent, you'll never feel it. It's great advice. I

524
00:26:22,640 --> 00:26:25,680
Speaker 2: never did it. It's never gonna happen, dad, But it

525
00:26:25,760 --> 00:26:29,840
Speaker 2: took me going through significant financial trauma. Because to me,

526
00:26:29,920 --> 00:26:32,479
Speaker 2: that was quite traumatic. It was a really hard period

527
00:26:32,520 --> 00:26:35,560
Speaker 2: of my life because money is so stressful. And I

528
00:26:35,560 --> 00:26:37,919
Speaker 2: guess that's why I'm so passionate about what I do today.

529
00:26:38,920 --> 00:26:42,040
Speaker 2: I had access to that literacy and I didn't want

530
00:26:42,040 --> 00:26:44,040
Speaker 2: to use it. I think someone has to be ready

531
00:26:44,080 --> 00:26:46,200
Speaker 2: for it and at a stage in their life where

532
00:26:46,200 --> 00:26:48,920
Speaker 2: they want to take charge of that. Some people don't.

533
00:26:49,160 --> 00:26:50,840
Speaker 2: Some people are going to be listening to this podcast

534
00:26:50,840 --> 00:26:54,000
Speaker 2: being like that is great, Victoria. No intention of taking

535
00:26:54,040 --> 00:26:56,439
Speaker 2: it right now, And that's okay. We're just gifting you

536
00:26:56,520 --> 00:26:59,200
Speaker 2: with this information that you can use or not use.

537
00:26:59,600 --> 00:26:59,879
Speaker 2: I don't know.

538
00:27:00,160 --> 00:27:01,880
Speaker 4: And when you're ready, you'll get there.

539
00:27:02,480 --> 00:27:05,480
Speaker 2: When I'm still on your team, exactly where he cheering

540
00:27:05,520 --> 00:27:06,879
Speaker 2: you on. I just want to be friends.

541
00:27:06,920 --> 00:27:11,199
Speaker 4: Guys. So you mentioned before wage growth, but what like,

542
00:27:11,480 --> 00:27:12,600
Speaker 4: I'm not seeing it where.

543
00:27:12,480 --> 00:27:13,080
Speaker 2: You're not seeing it.

544
00:27:13,119 --> 00:27:15,280
Speaker 4: I'm not seeing it. What's happening, Who's getting that money?

545
00:27:15,280 --> 00:27:15,880
Speaker 4: Where are they going?

546
00:27:15,920 --> 00:27:18,960
Speaker 2: Who's getting the wage growth? Yeah, so wage growth in

547
00:27:19,080 --> 00:27:22,359
Speaker 2: both the public and private sectors. We're driven by organization

548
00:27:22,520 --> 00:27:27,520
Speaker 2: wide annual wage and salary reviews. So annual wages growth

549
00:27:27,600 --> 00:27:30,720
Speaker 2: in the private sector softened slightly to four point two

550
00:27:30,720 --> 00:27:33,520
Speaker 2: percent from four point three percent in the September quarter,

551
00:27:33,840 --> 00:27:37,040
Speaker 2: but wages in the public sector increased by four point

552
00:27:37,119 --> 00:27:40,520
Speaker 2: three percent throughout the year, up from three point five

553
00:27:40,560 --> 00:27:43,600
Speaker 2: percent in the previous quarter. So that's nice to see

554
00:27:43,600 --> 00:27:46,480
Speaker 2: that public roles are being paid more. We love to

555
00:27:46,520 --> 00:27:48,840
Speaker 2: see it. But I think this is a good reminder

556
00:27:49,000 --> 00:27:51,920
Speaker 2: that just because we're hearing that other people's wages grew

557
00:27:52,000 --> 00:27:55,120
Speaker 2: by this doesn't mean that ours would have. And this

558
00:27:55,240 --> 00:27:57,800
Speaker 2: is a really good time, I think to remind you

559
00:27:57,880 --> 00:28:00,639
Speaker 2: to advocate for yourself. If you have a spoken to

560
00:28:00,720 --> 00:28:04,080
Speaker 2: your boss in a while about a salary increase, now's

561
00:28:04,119 --> 00:28:06,439
Speaker 2: the time, you know, Beck that we have done a

562
00:28:06,440 --> 00:28:09,600
Speaker 2: whole heap of episodes about negotiating your salary or chatting

563
00:28:09,600 --> 00:28:12,480
Speaker 2: to your boss. In fact, on our website, I have

564
00:28:12,640 --> 00:28:15,880
Speaker 2: literally put a free script you can download it. It's

565
00:28:15,880 --> 00:28:18,720
Speaker 2: a PDF of how to have that conversation with your

566
00:28:18,760 --> 00:28:22,040
Speaker 2: boss and all of the responses that they might give you,

567
00:28:22,680 --> 00:28:25,680
Speaker 2: so that you can be prepared so that you can go, well, actually,

568
00:28:26,080 --> 00:28:28,960
Speaker 2: here's my value. Here's what I should do. Here is

569
00:28:29,040 --> 00:28:31,359
Speaker 2: you know the template. I've done it for you so

570
00:28:31,400 --> 00:28:34,119
Speaker 2: that you can negotiate your own pay rise with a

571
00:28:34,160 --> 00:28:35,720
Speaker 2: little bit of help in the background. You don't have

572
00:28:35,760 --> 00:28:38,960
Speaker 2: to tell anyone it's all good. But if you're not

573
00:28:39,160 --> 00:28:41,920
Speaker 2: seeing that, and I want you to see that, now's

574
00:28:41,920 --> 00:28:45,280
Speaker 2: the time to kind of maybe be reminded that sometimes

575
00:28:45,320 --> 00:28:49,840
Speaker 2: these things take a conversation, because sometimes employers get a

576
00:28:49,880 --> 00:28:52,640
Speaker 2: little bit lax and they're like, Beck hasn't mentioned it,

577
00:28:52,840 --> 00:28:55,600
Speaker 2: so I'm just gonna do anything about it.

578
00:28:55,960 --> 00:28:58,000
Speaker 4: Cheeky, cheeky, rude.

579
00:28:58,280 --> 00:29:01,440
Speaker 2: But I mean, they're a business. So if you haven't asked,

580
00:29:01,440 --> 00:29:03,440
Speaker 2: maybe you're really happy with your salary and we don't

581
00:29:03,520 --> 00:29:06,920
Speaker 2: need to address it back exactly the case, maybe not,

582
00:29:07,240 --> 00:29:09,160
Speaker 2: because if I've been on the same salary for more

583
00:29:09,200 --> 00:29:11,560
Speaker 2: than a year, I think you need to be having

584
00:29:11,600 --> 00:29:13,120
Speaker 2: a conversation about what that looks like.

585
00:29:13,680 --> 00:29:16,040
Speaker 4: Okay, well, maybe let's go to a really quick break

586
00:29:16,080 --> 00:29:18,040
Speaker 4: while I go and ask for a pay rise. You're

587
00:29:18,040 --> 00:29:20,000
Speaker 4: going to download that thing on my website first, though,

588
00:29:20,160 --> 00:29:22,240
Speaker 4: I might put you in my little earpiece in my

589
00:29:22,280 --> 00:29:23,000
Speaker 4: ear Is that okay?

590
00:29:23,200 --> 00:29:25,600
Speaker 2: Yeah, that's absolutely fine. I'm in fact, I'll come as

591
00:29:25,640 --> 00:29:28,080
Speaker 2: you're like support person to the meeting and I'll be like, right,

592
00:29:28,160 --> 00:29:31,760
Speaker 2: let's talk. Let's talk. What's back on? Right now? What's

593
00:29:31,760 --> 00:29:34,280
Speaker 2: she going to be on? Nope, she's more valuable than that.

594
00:29:34,480 --> 00:29:36,320
Speaker 4: Oh my god, I need you. Okay, let's go do it.

595
00:29:36,600 --> 00:29:43,520
Speaker 4: See you soon. Welcome back everyone. We are chatting all

596
00:29:43,600 --> 00:29:47,760
Speaker 4: things tax, so so exciting, so fun.

597
00:29:47,840 --> 00:29:50,800
Speaker 2: We've been talking tax, we've been talking market updates. We've

598
00:29:50,800 --> 00:29:54,680
Speaker 2: been talking about the vapes. We've been talking about bapes.

599
00:29:54,800 --> 00:29:57,680
Speaker 2: We've been talking about salary growth and how much people

600
00:29:57,720 --> 00:30:00,960
Speaker 2: are spending on hotels and restaurants. But we haven't talked

601
00:30:00,960 --> 00:30:02,280
Speaker 2: about unemployment.

602
00:30:01,840 --> 00:30:04,320
Speaker 4: Back true, So what do we know about how many

603
00:30:04,360 --> 00:30:06,000
Speaker 4: people are in employment?

604
00:30:06,240 --> 00:30:09,480
Speaker 2: Okay? So the unemployment rate increased slightly to three point

605
00:30:09,520 --> 00:30:12,760
Speaker 2: eight percent in March twenty twenty four from three point

606
00:30:12,960 --> 00:30:16,520
Speaker 2: seven percent in February and that is roughly similar to

607
00:30:16,840 --> 00:30:19,800
Speaker 2: the levels recorded in October twenty twenty three. So the

608
00:30:19,840 --> 00:30:23,320
Speaker 2: employment outcome in March followed a larger than usual flow

609
00:30:23,360 --> 00:30:27,120
Speaker 2: of people entering employment in February and smaller than usual

610
00:30:27,200 --> 00:30:30,760
Speaker 2: flows in December and January. Things have returned to a

611
00:30:30,880 --> 00:30:34,120
Speaker 2: more usual pattern in March, which is interesting to see

612
00:30:34,400 --> 00:30:37,240
Speaker 2: looking over I guess the past three months, though, the

613
00:30:37,360 --> 00:30:41,200
Speaker 2: average employment growth is around forty thousand, eight hundred people,

614
00:30:41,400 --> 00:30:44,160
Speaker 2: which is softer than the momentum that was seen during

615
00:30:44,240 --> 00:30:47,200
Speaker 2: twenty twenty three, So less people are finding jobs. Bet sure,

616
00:30:47,320 --> 00:30:50,480
Speaker 2: the strength of the labor market is actually expected to

617
00:30:50,480 --> 00:30:53,280
Speaker 2: gradually weak and until the end of the year, given

618
00:30:53,520 --> 00:30:56,760
Speaker 2: there is often a lag between economic slowdown and then

619
00:30:56,880 --> 00:31:00,320
Speaker 2: labor market conditions. So what we see often, Becka, is

620
00:31:01,320 --> 00:31:03,920
Speaker 2: we see the economy starting to be a bit rocky.

621
00:31:04,040 --> 00:31:06,560
Speaker 2: You know. During COVID. I think that's a really good example.

622
00:31:06,640 --> 00:31:09,400
Speaker 2: We started hearing on the TV what was going on

623
00:31:09,520 --> 00:31:12,560
Speaker 2: with COVID overseas, we started hearing what was going on

624
00:31:12,640 --> 00:31:15,840
Speaker 2: with COVID in Australia. You know, we're starting to see

625
00:31:15,880 --> 00:31:18,360
Speaker 2: all of our friends and family work from home. And

626
00:31:18,400 --> 00:31:21,520
Speaker 2: it wasn't until a few months later that people started

627
00:31:21,560 --> 00:31:24,520
Speaker 2: to be made redundant. It wasn't until after that businesses

628
00:31:24,520 --> 00:31:27,280
Speaker 2: started going hold on, hold on. This is actually impacting us,

629
00:31:27,400 --> 00:31:29,920
Speaker 2: This is impacting me, This is going to change things.

630
00:31:29,920 --> 00:31:32,360
Speaker 2: So there's often a lag or you know, a bit

631
00:31:32,400 --> 00:31:34,800
Speaker 2: of a gap between when we see the economy slow

632
00:31:34,880 --> 00:31:38,480
Speaker 2: down and when people start to become unemployed because of

633
00:31:38,520 --> 00:31:42,400
Speaker 2: that economic slowdown. Does that make sense, yes, so leading

634
00:31:42,440 --> 00:31:47,120
Speaker 2: labor market indicators, like they seek Job add Index indicators

635
00:31:47,160 --> 00:31:50,360
Speaker 2: of a softening in labor demand, so less people are

636
00:31:50,440 --> 00:31:53,480
Speaker 2: needed at this point. Adding to this, the increase in

637
00:31:53,600 --> 00:31:56,400
Speaker 2: migration would continue to help to address some of the

638
00:31:56,440 --> 00:31:59,240
Speaker 2: tightness in the labor market. As a result, we're expecting

639
00:31:59,280 --> 00:32:02,600
Speaker 2: the unemployment rate to actually gradually rise from its current

640
00:32:02,680 --> 00:32:05,920
Speaker 2: low levels to reach the natural rate of unemployment by

641
00:32:05,960 --> 00:32:10,040
Speaker 2: mid twenty twenty four. So Beck, we are always going

642
00:32:10,080 --> 00:32:13,280
Speaker 2: to have an unemployment rate in Australia, right, It's not

643
00:32:13,320 --> 00:32:16,200
Speaker 2: necessarily an awful thing. That does not mean that people

644
00:32:16,240 --> 00:32:19,960
Speaker 2: are homeless. It actually is the percentage of the population

645
00:32:20,200 --> 00:32:23,160
Speaker 2: that do not work. We're not talking about retirees. We're

646
00:32:23,200 --> 00:32:26,320
Speaker 2: talking about people who are not in employment, and that

647
00:32:26,480 --> 00:32:30,280
Speaker 2: is always going to happen out of choice. Obviously, we

648
00:32:30,320 --> 00:32:33,160
Speaker 2: don't want people in the unemployment basket who don't want

649
00:32:33,160 --> 00:32:35,160
Speaker 2: to be in the unemployment basket, but we need to

650
00:32:35,160 --> 00:32:39,080
Speaker 2: be aware that people are in that and that is

651
00:32:39,280 --> 00:32:40,960
Speaker 2: very normal for a healthy economy.

652
00:32:41,040 --> 00:32:43,120
Speaker 4: Sure, it could be like state home peerians, maybe like

653
00:32:43,120 --> 00:32:44,480
Speaker 4: someone who's just turned eighteen yep.

654
00:32:44,520 --> 00:32:46,720
Speaker 2: And it could be people between jobs. It could be

655
00:32:46,800 --> 00:32:49,960
Speaker 2: people that are you know, in that bucket, either by

656
00:32:50,080 --> 00:32:53,440
Speaker 2: choice or maybe not by choice. But there's always people

657
00:32:53,520 --> 00:32:55,680
Speaker 2: in that and people come and go. Doesn't mean that

658
00:32:55,680 --> 00:32:57,800
Speaker 2: that same person has been in that bucket for the

659
00:32:57,880 --> 00:32:58,880
Speaker 2: last fifty years, you know.

660
00:32:59,120 --> 00:32:59,600
Speaker 4: Yep, yep.

661
00:32:59,680 --> 00:33:02,160
Speaker 2: Yeah, So it's important to go, oh, we want that

662
00:33:02,240 --> 00:33:04,719
Speaker 2: to zero. It's not going to be because we always

663
00:33:04,720 --> 00:33:07,400
Speaker 2: actually need some people who are unemployed because they come

664
00:33:07,440 --> 00:33:10,240
Speaker 2: and go from jobs. Right Otherwise there's no flow, there's

665
00:33:10,240 --> 00:33:10,920
Speaker 2: no wiggle room.

666
00:33:11,520 --> 00:33:13,120
Speaker 4: I never thought of it like that.

667
00:33:13,200 --> 00:33:15,040
Speaker 2: So it sounds bad, but we want it to be

668
00:33:15,120 --> 00:33:18,000
Speaker 2: at a stable rate. Right now we are stabilizing.

669
00:33:18,120 --> 00:33:20,440
Speaker 4: Sure, sure, Okay, good to know, good to know. So

670
00:33:20,520 --> 00:33:23,240
Speaker 4: what's the update on like the greatest Brillian dream, like

671
00:33:23,280 --> 00:33:25,880
Speaker 4: the residential housing costs? What's going on.

672
00:33:25,840 --> 00:33:30,240
Speaker 2: There is everything is cooked? So the pace of Residential

673
00:33:30,240 --> 00:33:34,160
Speaker 2: property price growth in April continued to be diverse across

674
00:33:34,200 --> 00:33:38,400
Speaker 2: capital cities due to differences in affordability, population growth, and

675
00:33:38,520 --> 00:33:42,720
Speaker 2: the housing supply, so significantly stronger gains were observed in Perth,

676
00:33:42,760 --> 00:33:47,280
Speaker 2: Adelaide and Brisbane, so not our main property players, while

677
00:33:47,360 --> 00:33:50,440
Speaker 2: at the other end of the spectrum, Melbourne recorded a

678
00:33:50,440 --> 00:33:54,360
Speaker 2: slight drop of point one percent. Okay, Dwelling interest payable

679
00:33:54,400 --> 00:33:58,840
Speaker 2: continued to increase by five percent. This is the softest

680
00:33:58,920 --> 00:34:02,080
Speaker 2: growth in dwelling in interest payable since June twenty twenty two.

681
00:34:02,280 --> 00:34:05,960
Speaker 2: As interest rates have plataued, so interest rates are now

682
00:34:06,040 --> 00:34:11,200
Speaker 2: kind of consistently steady, and while dwelling interest payable has increased.

683
00:34:11,280 --> 00:34:13,960
Speaker 2: And five percent sounds terrible, they did that on purpose

684
00:34:14,000 --> 00:34:17,360
Speaker 2: to make you go, oh, it's actually much nicer, or

685
00:34:17,400 --> 00:34:20,160
Speaker 2: five percent is much nicer than what it has been historically.

686
00:34:20,680 --> 00:34:22,960
Speaker 4: Sure, okay, nice and soft, nice and gentle.

687
00:34:22,800 --> 00:34:25,359
Speaker 2: Nice and gentle. Hopefully things are getting a little bit

688
00:34:25,400 --> 00:34:27,960
Speaker 2: more achievable. I mean, the great Australian dream is not

689
00:34:28,000 --> 00:34:30,319
Speaker 2: what it once was, and that I don't think is

690
00:34:30,360 --> 00:34:32,520
Speaker 2: ever going to change. But the way we get into

691
00:34:32,560 --> 00:34:35,840
Speaker 2: property is going to have to. So looking ahead, it

692
00:34:35,880 --> 00:34:38,480
Speaker 2: seems that property growth will be slower in twenty twenty

693
00:34:38,480 --> 00:34:41,120
Speaker 2: four than it was in twenty twenty three, in saying

694
00:34:41,120 --> 00:34:43,840
Speaker 2: that there's going to be persistent strong demand for housing

695
00:34:43,880 --> 00:34:47,319
Speaker 2: and limited new housing construction. These factors will likely lead

696
00:34:47,360 --> 00:34:51,560
Speaker 2: to further price gains. So when less dwellings are being built,

697
00:34:52,080 --> 00:34:54,839
Speaker 2: there's an increase in what people are willing to pay

698
00:34:54,880 --> 00:34:59,480
Speaker 2: for things that already exist. Okay, Regardless, the existing high

699
00:34:59,520 --> 00:35:03,840
Speaker 2: house will impact affordability, having a cooling effect on the

700
00:35:03,920 --> 00:35:07,680
Speaker 2: market and partially offsetting the games. So we're all good

701
00:35:07,760 --> 00:35:10,839
Speaker 2: when it comes to that. I said before that the

702
00:35:10,840 --> 00:35:13,799
Speaker 2: housard market is cooked. That's just personal opinion. So the

703
00:35:13,880 --> 00:35:16,160
Speaker 2: economy is going to tell us one thing. But I

704
00:35:16,200 --> 00:35:18,520
Speaker 2: think our want for being in property and our need

705
00:35:18,600 --> 00:35:20,560
Speaker 2: for being in property, it just looks a lot different

706
00:35:20,600 --> 00:35:22,239
Speaker 2: to what it used to totally.

707
00:35:22,360 --> 00:35:24,400
Speaker 4: I'm really actually this is quite a side note, but

708
00:35:24,440 --> 00:35:26,920
Speaker 4: my partner is looking for an apartment.

709
00:35:26,600 --> 00:35:28,640
Speaker 2: And are you marrying rich?

710
00:35:28,760 --> 00:35:31,799
Speaker 4: I'm marrying rich. You're marrying up. That's how you've got

711
00:35:31,840 --> 00:35:33,759
Speaker 4: to do it. You drop pop and you've got to

712
00:35:33,760 --> 00:35:34,239
Speaker 4: marry up.

713
00:35:34,480 --> 00:35:38,000
Speaker 2: YEA, marry up. I once got the advice marry first

714
00:35:38,000 --> 00:35:40,319
Speaker 2: for money and then second for love. I've screwed that

715
00:35:40,440 --> 00:35:43,520
Speaker 2: up by marrying first for love. But if anyone's taking

716
00:35:43,520 --> 00:35:47,360
Speaker 2: this advice, also, men can't recommend. My husband is the

717
00:35:47,400 --> 00:35:50,600
Speaker 2: only one I would accept. Yeah, we were talking about

718
00:35:50,600 --> 00:35:52,960
Speaker 2: this off air. We were you think straight as a choice.

719
00:35:53,200 --> 00:35:55,880
Speaker 4: True, I mean, I'll try not to fall into the

720
00:35:55,960 --> 00:35:59,120
Speaker 4: lap of a handsome man, but don't don't. But no,

721
00:35:59,200 --> 00:36:01,440
Speaker 4: she's tryed by an apartment and she's obviously, you know,

722
00:36:01,480 --> 00:36:05,040
Speaker 4: got conditional approval. All this kind of stuff keeps getting

723
00:36:05,239 --> 00:36:09,320
Speaker 4: outbid by I'm assuming people who already have a million

724
00:36:09,360 --> 00:36:12,000
Speaker 4: investment homes and just buying because they maybe they're bored

725
00:36:12,080 --> 00:36:14,000
Speaker 4: or they just want to add to their investment portfolio.

726
00:36:14,080 --> 00:36:16,719
Speaker 4: Because they have no conditions. They're paying with cash, and

727
00:36:16,920 --> 00:36:18,920
Speaker 4: I just feel really sad for the people out there.

728
00:36:19,040 --> 00:36:22,040
Speaker 4: If there's anyone out here listening who has just a

729
00:36:22,080 --> 00:36:25,560
Speaker 4: smaller hard slog, yeah, it's a hard slog, and I

730
00:36:25,640 --> 00:36:27,400
Speaker 4: just think, let the little ones have it. Let the

731
00:36:27,400 --> 00:36:29,759
Speaker 4: little guys have the little apartment, you know.

732
00:36:29,800 --> 00:36:32,600
Speaker 2: I feel like this is really common. And again we're

733
00:36:32,640 --> 00:36:35,840
Speaker 2: staying on this side notes. I think it's relatively interesting.

734
00:36:36,239 --> 00:36:39,400
Speaker 2: We're seeing an increase in what properties are going for

735
00:36:39,600 --> 00:36:42,799
Speaker 2: at auction. So if you know, let's pretend for a

736
00:36:42,800 --> 00:36:46,240
Speaker 2: hot second, your partner is buying at five hundred thousand

737
00:36:46,320 --> 00:36:49,200
Speaker 2: dollars and that's what she's been pre approved for. So

738
00:36:49,360 --> 00:36:52,080
Speaker 2: we know that she's been pre approved five hundred grand,

739
00:36:52,400 --> 00:36:56,160
Speaker 2: and she's going shopping at that level. When that happens,

740
00:36:56,280 --> 00:36:59,279
Speaker 2: often you'll find that a lot of people are being

741
00:36:59,360 --> 00:37:02,880
Speaker 2: approved for six hundred, but they're shopping at that lower level.

742
00:37:03,160 --> 00:37:05,799
Speaker 2: So what I would say to her is, while you've

743
00:37:05,800 --> 00:37:08,080
Speaker 2: been approved for that five hundred, and let's pretend it's

744
00:37:08,080 --> 00:37:10,800
Speaker 2: all just clean and she's happy to spend that. I

745
00:37:10,840 --> 00:37:13,680
Speaker 2: often give the advice, as you guys know, I own

746
00:37:13,719 --> 00:37:16,520
Speaker 2: a mortgage broking company. I do this day in day out.

747
00:37:16,520 --> 00:37:18,000
Speaker 2: When I'm not on the pod, I am in the

748
00:37:18,040 --> 00:37:22,000
Speaker 2: office talking about home loans. I would suggest that even

749
00:37:22,000 --> 00:37:24,480
Speaker 2: if you're approved for five hundred, looking at your budget,

750
00:37:24,520 --> 00:37:26,840
Speaker 2: making sure that that actually makes sense, because lots of

751
00:37:26,880 --> 00:37:29,000
Speaker 2: you might not want to buy at that price. But

752
00:37:29,200 --> 00:37:31,440
Speaker 2: having a look on real estate dot com or domain

753
00:37:31,560 --> 00:37:34,840
Speaker 2: or wherever you're shopping at what properties have actually sold

754
00:37:34,920 --> 00:37:37,200
Speaker 2: for and then what they were listed for, and more

755
00:37:37,239 --> 00:37:39,960
Speaker 2: often than not, you're going to see that a property

756
00:37:40,000 --> 00:37:43,319
Speaker 2: listed for maybe four hundred and thirty is going for

757
00:37:43,400 --> 00:37:46,560
Speaker 2: five hundred, which means that your partner might want to

758
00:37:46,600 --> 00:37:50,080
Speaker 2: reset what she's actually looking at and start to shop low,

759
00:37:50,120 --> 00:37:53,480
Speaker 2: because you might end up at that same five hundred amount,

760
00:37:53,640 --> 00:37:56,359
Speaker 2: if that makes sense. Whereas if she's just looking at

761
00:37:56,360 --> 00:37:58,959
Speaker 2: what properties are listed for and she goes great going

762
00:37:58,960 --> 00:38:01,640
Speaker 2: to this auction and currently it's valued between you know,

763
00:38:01,880 --> 00:38:05,560
Speaker 2: four eighty and five hundred, that's within my budget, there's

764
00:38:05,600 --> 00:38:09,560
Speaker 2: a very high probability that auction day comes and someone's

765
00:38:09,600 --> 00:38:13,040
Speaker 2: willing to pay five ten or five twenty for that property,

766
00:38:13,120 --> 00:38:15,560
Speaker 2: which wipes her out because she's only pre approved up

767
00:38:15,560 --> 00:38:19,120
Speaker 2: to five hundred. So we need to sometimes reset our

768
00:38:19,160 --> 00:38:22,680
Speaker 2: goalposts and look at well, if she's like shopping for

769
00:38:22,680 --> 00:38:25,239
Speaker 2: an apartment in Richmond, can we look on real estate

770
00:38:25,280 --> 00:38:27,520
Speaker 2: dot com dot au and have a look at what

771
00:38:27,560 --> 00:38:31,160
Speaker 2: those properties have actually sold for instead of what they're

772
00:38:31,160 --> 00:38:33,919
Speaker 2: listed for, because what they're listed for while a good

773
00:38:34,000 --> 00:38:37,440
Speaker 2: indicator people are hungry at the moment for property. We

774
00:38:37,520 --> 00:38:40,360
Speaker 2: know the interest rate has gone down. People are getting

775
00:38:40,400 --> 00:38:42,880
Speaker 2: really optimistic at the moment because they're going, all right,

776
00:38:42,920 --> 00:38:46,320
Speaker 2: well the interest rate. It's making me feel a bit ick,

777
00:38:46,520 --> 00:38:48,440
Speaker 2: but I also know, if we go back to that

778
00:38:48,560 --> 00:38:51,160
Speaker 2: Westpac data that I was talking about before the break,

779
00:38:51,200 --> 00:38:53,120
Speaker 2: we also know that interest rates are probably going to

780
00:38:53,200 --> 00:38:57,080
Speaker 2: go down, So short term pain, long term gain. I'm

781
00:38:57,120 --> 00:38:59,640
Speaker 2: happy to buy into the market right now before the

782
00:38:59,640 --> 00:39:02,759
Speaker 2: market increases, because what we know to be true is

783
00:39:02,760 --> 00:39:07,120
Speaker 2: that when interest rates go down, people's tenacity for purchasing

784
00:39:07,200 --> 00:39:09,440
Speaker 2: and they're willing to take on more debt goes up.

785
00:39:09,920 --> 00:39:12,680
Speaker 2: So once interest rates come down a little bit, people

786
00:39:12,719 --> 00:39:14,920
Speaker 2: are going to go all right, the pressure is off again.

787
00:39:15,320 --> 00:39:18,959
Speaker 2: I'm happy to pay what's another ten grand, so they're

788
00:39:19,000 --> 00:39:21,680
Speaker 2: more likely to pay more. So right now, I think

789
00:39:21,760 --> 00:39:24,080
Speaker 2: you've got a few people who are probably shooting are

790
00:39:24,080 --> 00:39:26,000
Speaker 2: in the feed. But we need to have a look

791
00:39:26,040 --> 00:39:28,960
Speaker 2: at what your property shopping strategy is and go back

792
00:39:28,960 --> 00:39:31,520
Speaker 2: to the drawing board. We can take this conversation off line,

793
00:39:31,560 --> 00:39:35,040
Speaker 2: but I think it's relatively interesting. Irrespective, Yes, because this

794
00:39:35,239 --> 00:39:38,239
Speaker 2: is how it works. We talk to or I talk

795
00:39:38,320 --> 00:39:40,520
Speaker 2: to so many people every day, and so to my

796
00:39:40,560 --> 00:39:43,240
Speaker 2: team about all right, we've been pre approof of five hundred,

797
00:39:43,400 --> 00:39:45,520
Speaker 2: what does that actually look like for you? What are

798
00:39:45,560 --> 00:39:48,840
Speaker 2: we shopping for? And I think if someone is a

799
00:39:48,840 --> 00:39:50,839
Speaker 2: good broker, I mean, I'd love it if you used us,

800
00:39:50,880 --> 00:39:53,359
Speaker 2: But if someone is a good broker, they are going

801
00:39:53,400 --> 00:39:55,920
Speaker 2: to have a conversation about what that actually means for you.

802
00:39:56,320 --> 00:39:58,640
Speaker 2: So like if you are preapproved back and you came

803
00:39:58,640 --> 00:40:00,800
Speaker 2: in to me and said, oh, babe, what am I approof?

804
00:40:00,800 --> 00:40:02,600
Speaker 2: What we go through everything? And I say you could

805
00:40:02,680 --> 00:40:05,680
Speaker 2: borrow up to five hundred grand, you go fantastic, feat

806
00:40:05,719 --> 00:40:08,279
Speaker 2: I'm going to go shopping. My team are going to

807
00:40:08,360 --> 00:40:10,759
Speaker 2: go wait, wait, wait, what are we shopping for? How

808
00:40:10,760 --> 00:40:12,840
Speaker 2: are we shopping? Because I don't want my clients and

809
00:40:12,880 --> 00:40:16,280
Speaker 2: my community to be disappointed or be in that game

810
00:40:16,360 --> 00:40:18,680
Speaker 2: for a really long time. I don't want you to

811
00:40:18,719 --> 00:40:22,319
Speaker 2: be frustrated by that process over and over. And how

812
00:40:22,360 --> 00:40:24,960
Speaker 2: many people do we hear that are like, oh, I've

813
00:40:24,960 --> 00:40:27,640
Speaker 2: been shopping for a property for a year. I often

814
00:40:27,680 --> 00:40:29,279
Speaker 2: want to go all right, beck, we need to go

815
00:40:29,320 --> 00:40:31,480
Speaker 2: back to the drawing board. What does this look like?

816
00:40:31,800 --> 00:40:34,080
Speaker 4: Yes, this is very very helpful.

817
00:40:33,719 --> 00:40:37,560
Speaker 2: Completely offside. So Beck, as I was saying before in

818
00:40:37,600 --> 00:40:42,600
Speaker 2: my rent, when interest rates go down, demand for property increases.

819
00:40:42,760 --> 00:40:47,160
Speaker 2: So into twenty twenty five, anticipated lower interest rates and

820
00:40:47,360 --> 00:40:49,920
Speaker 2: the fact that the government is probably going to introduce

821
00:40:49,960 --> 00:40:53,399
Speaker 2: a whole heap of initiatives to boost supply and let's

822
00:40:53,440 --> 00:40:57,080
Speaker 2: be honest, improved conditions for builders. We are expecting to

823
00:40:57,200 --> 00:41:00,040
Speaker 2: drive a bit of a rebound in dwelling investments, so

824
00:41:00,160 --> 00:41:03,160
Speaker 2: you won't be surprised to see that maybe mid next

825
00:41:03,239 --> 00:41:05,920
Speaker 2: year we'll have a lot more millennials shopping for property.

826
00:41:06,280 --> 00:41:08,480
Speaker 4: Great, okay, things are looking up.

827
00:41:08,600 --> 00:41:12,160
Speaker 2: Things are things looking up? Your house, things are looking

828
00:41:12,239 --> 00:41:12,680
Speaker 2: up yours.

829
00:41:12,719 --> 00:41:16,839
Speaker 4: You're so cute. That's almost the correct saying. Now, there

830
00:41:16,920 --> 00:41:20,480
Speaker 4: have been some changes. When you get you don't get up, No,

831
00:41:20,600 --> 00:41:22,719
Speaker 4: I love it. I actually prefer that way, thank you.

832
00:41:22,760 --> 00:41:25,399
Speaker 4: There have been some changes made to the marginal tax rate,

833
00:41:25,480 --> 00:41:28,960
Speaker 4: like our superannuation rates, and also some other so sensies.

834
00:41:28,760 --> 00:41:31,000
Speaker 2: You get more super do you get more super?

835
00:41:31,200 --> 00:41:33,440
Speaker 4: And I'm very excited about that actually, but doesn't change

836
00:41:33,440 --> 00:41:35,439
Speaker 4: the amount that we take home from what I hear,

837
00:41:35,560 --> 00:41:39,799
Speaker 4: which is great. So our superannuation rates have obviously gone up.

838
00:41:39,960 --> 00:41:42,880
Speaker 4: And also some other initiatives labeled by the government to

839
00:41:43,040 --> 00:41:46,480
Speaker 4: support the cost of living crisis. Finally, thank goodness, are

840
00:41:46,520 --> 00:41:49,320
Speaker 4: these things to consider when looking at what will happen

841
00:41:49,480 --> 00:41:50,280
Speaker 4: in this quarter?

842
00:41:50,560 --> 00:41:53,240
Speaker 2: Yes, I want you to take them into consideration because

843
00:41:53,320 --> 00:41:55,640
Speaker 2: for most of us, they are going to be beneficial.

844
00:41:55,920 --> 00:41:59,200
Speaker 2: So if you beck earned between eighteen thousand and forty

845
00:41:59,200 --> 00:42:03,120
Speaker 2: five thousand pre July one, your tax rate would have

846
00:42:03,120 --> 00:42:07,440
Speaker 2: been nineteen percent. Your new tax rate is now sixteen percent.

847
00:42:07,600 --> 00:42:10,960
Speaker 2: That's great, which is great, But how we factoring this

848
00:42:11,040 --> 00:42:13,560
Speaker 2: into our budget. Is this an opportunity that we can

849
00:42:13,640 --> 00:42:16,240
Speaker 2: take to maybe put a little bit of cash aside

850
00:42:16,360 --> 00:42:18,800
Speaker 2: to take the pressure off, or if you're like, this's

851
00:42:18,880 --> 00:42:21,120
Speaker 2: not going to take the pressure off, I'm just glad

852
00:42:21,120 --> 00:42:23,600
Speaker 2: that there's a few extra dollars going into your account

853
00:42:23,640 --> 00:42:26,839
Speaker 2: each and every single month. Right. The other change that

854
00:42:26,920 --> 00:42:29,720
Speaker 2: has happened is if you were in the tax bracket

855
00:42:29,760 --> 00:42:33,040
Speaker 2: of forty five thousand to one twenty thousand, your tax

856
00:42:33,120 --> 00:42:36,760
Speaker 2: rate used to be thirty two point five percent, which

857
00:42:36,960 --> 00:42:40,960
Speaker 2: for me, understanding our community is the most common tax

858
00:42:41,000 --> 00:42:44,040
Speaker 2: bracket for you guys to be in. That tax bracket's

859
00:42:44,080 --> 00:42:46,560
Speaker 2: actually changed so instead of going up to one twenty,

860
00:42:46,560 --> 00:42:48,800
Speaker 2: it now goes up to one thirty five. So a

861
00:42:48,880 --> 00:42:51,160
Speaker 2: heap of people have dropped down a tax bracket which

862
00:42:51,200 --> 00:42:54,720
Speaker 2: is very, very sexy, and the tax rate has changed

863
00:42:54,719 --> 00:42:57,520
Speaker 2: from thirty two and a half percent down to thirty percent,

864
00:42:58,080 --> 00:43:01,440
Speaker 2: which is very very sexy. The old tax bracket used

865
00:43:01,440 --> 00:43:04,080
Speaker 2: to be one twenty to one eighty, which must have

866
00:43:04,160 --> 00:43:07,080
Speaker 2: been nice. If you're in that tax bracket. Joke's on you, though,

867
00:43:07,160 --> 00:43:11,399
Speaker 2: You're not getting a tax break because you probably don't need.

868
00:43:12,400 --> 00:43:13,960
Speaker 2: Do you know what someone's going to come for me?

869
00:43:14,000 --> 00:43:15,759
Speaker 2: And be like VI, I can't believe you've said that

870
00:43:15,920 --> 00:43:18,799
Speaker 2: we are under a lot of stress. We definitely earn

871
00:43:18,840 --> 00:43:20,359
Speaker 2: a lot of money, but we are under a lot

872
00:43:20,360 --> 00:43:22,279
Speaker 2: of I get it, but like I would actually much

873
00:43:22,320 --> 00:43:24,320
Speaker 2: prefer people who are earning less than one twenty to

874
00:43:24,360 --> 00:43:27,319
Speaker 2: get the tax breaks here today. But that bracket is

875
00:43:27,440 --> 00:43:30,160
Speaker 2: changing now, so instead of from one twenty to one eighty,

876
00:43:30,200 --> 00:43:32,960
Speaker 2: it's now one thirty five to one ninety, so it's

877
00:43:33,000 --> 00:43:35,960
Speaker 2: bumped up a little bit. Tax rate is the same though,

878
00:43:36,200 --> 00:43:39,160
Speaker 2: which I kind of agree with. Sure, if I'm being honest,

879
00:43:39,160 --> 00:43:41,400
Speaker 2: you are being taxed at before and now a lot

880
00:43:41,440 --> 00:43:43,040
Speaker 2: of people have dropped out of that and a lot

881
00:43:43,080 --> 00:43:45,520
Speaker 2: of people have been added to that. So historically, if

882
00:43:45,560 --> 00:43:48,520
Speaker 2: you earned one ninety, you would have been on a

883
00:43:48,600 --> 00:43:51,919
Speaker 2: higher tax rate of forty five percent, which for you

884
00:43:52,080 --> 00:43:56,040
Speaker 2: now you're on thirty seven percent. So money win. But

885
00:43:56,360 --> 00:43:59,359
Speaker 2: the old taxable income rate of forty five percent. Used

886
00:43:59,400 --> 00:44:00,960
Speaker 2: to be one eighty d plus. It is now one

887
00:44:01,120 --> 00:44:03,799
Speaker 2: ninety plus. Yes, so I think that that is to

888
00:44:03,880 --> 00:44:05,839
Speaker 2: me quite sexy, But it means that some of us

889
00:44:05,880 --> 00:44:08,760
Speaker 2: are going to be earning a little bit more taxed,

890
00:44:08,800 --> 00:44:11,799
Speaker 2: a little bit less super super sexy. The other thing

891
00:44:11,920 --> 00:44:16,480
Speaker 2: is superranuation changes, which I think are very exciting. Concessional

892
00:44:16,520 --> 00:44:19,360
Speaker 2: contribution cap used to be twenty seven thousand, five hundred,

893
00:44:19,360 --> 00:44:21,600
Speaker 2: which is the most amount of money that you can

894
00:44:21,640 --> 00:44:25,360
Speaker 2: contribute to get that fifteen percent tax rate. Right, Okay,

895
00:44:25,520 --> 00:44:28,720
Speaker 2: that's now increased to thirty thousand dollars. Great. The max

896
00:44:28,880 --> 00:44:32,600
Speaker 2: five year carry forward contribution, which means that if you

897
00:44:32,640 --> 00:44:35,959
Speaker 2: weren't contributing for historical years, you can kind of go, hey,

898
00:44:36,000 --> 00:44:37,960
Speaker 2: I know I didn't contribute last year. Can I use

899
00:44:38,000 --> 00:44:40,480
Speaker 2: that so that I still get my fifteen percent tax rate?

900
00:44:40,920 --> 00:44:41,520
Speaker 2: Can I use that?

901
00:44:41,840 --> 00:44:42,040
Speaker 4: Yes?

902
00:44:42,080 --> 00:44:44,080
Speaker 2: You can. It used to be one hundred and thirty thousand.

903
00:44:44,120 --> 00:44:47,760
Speaker 2: It's now one hundred and thirty two thousand, five hundred dollars.

904
00:44:47,880 --> 00:44:51,320
Speaker 2: Very nice superranuation guarantee which directly impacts you, Beck and

905
00:44:51,520 --> 00:44:54,600
Speaker 2: every single person in our community who earns income that

906
00:44:54,719 --> 00:44:57,840
Speaker 2: gets paid super It's gone from eleven percent to eleven

907
00:44:57,880 --> 00:45:00,880
Speaker 2: and a half percent, which I think is very, very sexy.

908
00:45:01,080 --> 00:45:04,400
Speaker 2: But it's also a really good conversation to have with

909
00:45:04,520 --> 00:45:08,359
Speaker 2: your employer if for some reason they've decided to take

910
00:45:08,400 --> 00:45:09,600
Speaker 2: that out of your take home pay.

911
00:45:10,120 --> 00:45:11,960
Speaker 4: Oh my goodness, Yeah, that's.

912
00:45:11,800 --> 00:45:14,239
Speaker 2: Not allowed, right, No, no, no, it is allowed. It's

913
00:45:14,280 --> 00:45:17,120
Speaker 2: going to be based on your contract. So some people's

914
00:45:17,120 --> 00:45:20,279
Speaker 2: contracts are going to be salary plus oh true soubranuation.

915
00:45:20,480 --> 00:45:23,080
Speaker 2: So if you're on a contract that stipulates you get

916
00:45:23,120 --> 00:45:27,600
Speaker 2: paid salary plus super, it should not have impacted your

917
00:45:27,600 --> 00:45:31,319
Speaker 2: take home pay. However, if you have a package and

918
00:45:31,360 --> 00:45:34,680
Speaker 2: they say, Beck, you're on a seventy thousand dollars package,

919
00:45:35,160 --> 00:45:37,840
Speaker 2: well they're still only going to pay you seventy thousand

920
00:45:37,880 --> 00:45:39,880
Speaker 2: dollars and that point five percent is going to come

921
00:45:39,920 --> 00:45:42,080
Speaker 2: from your take home pay and go into your SUPER.

922
00:45:42,360 --> 00:45:44,720
Speaker 2: Now's the time to have a conversation with your employer

923
00:45:44,760 --> 00:45:47,480
Speaker 2: and say, hey, cozy libs, babe.

924
00:45:47,560 --> 00:45:49,320
Speaker 4: Hey that hurt my feelings.

925
00:45:48,920 --> 00:45:53,080
Speaker 2: Say hey, that was really me. But having a conversation

926
00:45:53,160 --> 00:45:55,719
Speaker 2: with him and saying, hey, I know that that made

927
00:45:55,760 --> 00:45:57,680
Speaker 2: sense and I'm on a package, but I'd really like

928
00:45:57,760 --> 00:46:01,279
Speaker 2: to talk about getting point five percent paid into my

929
00:46:01,280 --> 00:46:03,680
Speaker 2: super in adition, because I don't think it's fair for

930
00:46:03,760 --> 00:46:06,680
Speaker 2: it to have been taken out of my take home salary. Great,

931
00:46:07,080 --> 00:46:09,719
Speaker 2: go listen to all our negotiation episodes and go to

932
00:46:09,760 --> 00:46:13,200
Speaker 2: our website and download that free pdf of how to

933
00:46:13,239 --> 00:46:16,920
Speaker 2: have that conversation. Yes and future you's gone, Thank you exactly,

934
00:46:16,960 --> 00:46:18,719
Speaker 2: and we're cheering you on. I love it. I think

935
00:46:18,719 --> 00:46:22,439
Speaker 2: we're done for today though, so many numbers, so many statistics. Beck.

936
00:46:22,480 --> 00:46:23,840
Speaker 2: At the start, you said that you were going to

937
00:46:23,840 --> 00:46:26,960
Speaker 2: be physically present but mentally not here. Was it as

938
00:46:27,000 --> 00:46:28,239
Speaker 2: bad as you thought it was going to be?

939
00:46:28,360 --> 00:46:30,520
Speaker 4: Honestly no, I feel like mentally I've been here the

940
00:46:30,520 --> 00:46:31,000
Speaker 4: whole time.

941
00:46:31,160 --> 00:46:35,200
Speaker 2: Oh thank you. That's actually a massive compliment. I'm going

942
00:46:35,239 --> 00:46:37,320
Speaker 2: to take it and run with it. Let's get coffee, guys,

943
00:46:37,440 --> 00:46:40,160
Speaker 2: have the best day. Thank you for tuning in for

944
00:46:40,160 --> 00:46:42,000
Speaker 2: a market update. I'm proud of you.

945
00:46:42,040 --> 00:46:43,040
Speaker 4: Bye, guys.

946
00:46:48,640 --> 00:46:51,160
Speaker 5: The advice shared on She's on the Money is general

947
00:46:51,239 --> 00:46:55,080
Speaker 5: in nature and does not consider your individual circumstances. She's

948
00:46:55,120 --> 00:46:58,600
Speaker 5: on the Money exists purely for educational purposes and should

949
00:46:58,600 --> 00:47:01,800
Speaker 5: not be relied upon to make an investment or financial decision.

950
00:47:02,160 --> 00:47:04,440
Speaker 2: If you do choose to buy a financial.

951
00:47:04,000 --> 00:47:08,040
Speaker 5: Product, read the PDS TMD and obtain appropriate financial.

952
00:47:07,560 --> 00:47:09,360
Speaker 2: Advice tailored towards your needs.

953
00:47:09,719 --> 00:47:13,680
Speaker 5: Victoria, Divine and She's on the Money are authorized representatives

954
00:47:13,719 --> 00:47:16,239
Speaker 5: of Money sherper P t y lt D A b

955
00:47:16,440 --> 00:47:19,480
Speaker 5: N three two one six four nine two seven seven

956
00:47:19,600 --> 00:47:24,200
Speaker 5: zero eight afs L four five one two eight nine