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Speaker 1: Hello.

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Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the

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Speaker 2: Order Kerney Whoalbury and a waddery woman. And before we

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Speaker 2: get started on She's on the Money podcast, I would

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Speaker 2: like to acknowledge the traditional custodians of the land of

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Speaker 2: which this podcast is recorded on a wondery country, acknowledging

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Speaker 2: the elders, the ancestors and the next generation coming through

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Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and

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Speaker 2: the storytelling of you to make a difference for today

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Speaker 2: and lasting impact for tomorrow.

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Speaker 1: 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 1: Hello, and welcome to She's on the Money podcast for

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Speaker 1: millennials who want financial freedom. Hello, Victoria Divine.

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Speaker 4: Oh that's so formal of you, because last week, what'd

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Speaker 4: you call me last week?

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Speaker 1: Vicky D No I knew you would calling onto that. Yeah,

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Speaker 1: I'm trying to think grudge.

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Speaker 4: If anybody has a good nickname that I can call beck,

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Speaker 4: that's like not rude, but also it's not that great.

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Speaker 1: Let me know, I'm very keen to see what people

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Speaker 1: come up. Am I really? Okay? So vickid Sorry, I'm

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Speaker 1: going to stop doing that. This is just the last

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Speaker 1: one I want to throw in there. But today we

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Speaker 1: are talking about the quarterly market update, which I'd be

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Speaker 1: very excited about it. I'm going to be. I'm so excited.

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Speaker 1: So I guess we'll find out what's on special at

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Speaker 1: the local stum. No, no, no, no.

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Speaker 4: We are going to be talking about something sadly far

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Speaker 4: more boring and farther reaching. I mean, it does affect

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Speaker 4: the cost of things in your basket at Audi, Like

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Speaker 4: Audi don't even have baskets, so that was a terrible analogy,

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Speaker 4: but it does affect the cost of food. We are

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Speaker 4: going to be discussing what's happening in the economy right now,

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Speaker 4: beck and what's going on in our community. Because I

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Speaker 4: sat back a couple of weeks ago and one of

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Speaker 4: my favorite emails to read as an ex financial advisor

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Speaker 4: are the market update emails. And I'm still subscribed to

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Speaker 4: all of these. If you are one of the research

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Speaker 4: houses that still sends me market updates, please don't stop

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Speaker 4: just because you heard that I wasn't an advisor anymore.

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Speaker 1: I get a lot out of them, but.

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Speaker 4: They are arguably some of the driest publications on the

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Speaker 4: entire planet, right, Like we're talking about share prices and

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Speaker 4: what's gone up and what's gone down, and what CEO

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Speaker 4: has switched with another CEO and the backgrounds of that

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Speaker 4: CEO and where they've come from. Like it's honestly, they're dry.

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Speaker 1: That's brutal.

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Speaker 4: I like it because it's kind of like I already

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Speaker 4: have that base understanding of what's going on with that company.

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Speaker 4: But anybody reading it would be like, what is this victorial?

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Speaker 1: Why are you excited about it?

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Speaker 4: But what I like about it is that it keeps

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Speaker 4: my finger on the pulse, Like I know what's going on,

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Speaker 4: I know how it's going to work, but I figured

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Speaker 4: what we can start doing on cheese on the money

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Speaker 4: is like a non boring version of a quarterly market update.

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Speaker 4: I tell you, like what's been going on in the

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Speaker 4: last few months when it comes to economics and politics

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Speaker 4: and how it all kind of impacts the bottom line.

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Speaker 1: So what does this mean for you? A lot of things.

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Speaker 4: So if you're a shareholder, it's going to be impacting

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Speaker 4: your share price. But if you're back and you're not

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Speaker 4: investing yet, it's going to impact how much your groceries are.

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Speaker 4: It's going to impact. You know what your community is saying.

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Speaker 4: It's going to be impacting political decisions that you make.

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Speaker 4: And I just think all of us need to be

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Speaker 4: more educated on this. But until now, the content has

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Speaker 4: been really dry and really boring. And to be honest,

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Speaker 4: I'm not going to wake up at six am to

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Speaker 4: get the market updates on ABC News. Love you ABC

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Speaker 4: probably the wrong demographic that we're speaking to, right.

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Speaker 1: M Absolutely, well, I'm interested to see how you make

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Speaker 1: this not boring. But it's just going to be the

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Speaker 1: tone of voice. It's just going to be tone of voice.

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Speaker 4: It's just going to be tone of voice around excited

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Speaker 4: about it and what happens when you're excited and also

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Speaker 4: really confident about something because people believe you.

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Speaker 1: Yeah, absolutely, she's going to trojanhorse us everyone.

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Speaker 4: It's basically like gas lighting people with tone of voice into.

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Speaker 1: Thinking finance and economics is cool. So I feel like

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Speaker 1: everyone has been pretty anxious in the community as interest

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Speaker 1: rates are so much higher, Inflation is hectic, and we

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Speaker 1: talk about it every week, so we do we do.

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Speaker 4: I feel like there's a vibe in the community that is,

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Speaker 4: you know, I love you all. Please don't take this negatively,

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Speaker 4: but I feel like everyone's being a little bit negative

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Speaker 4: at the moment, and I feel like that's being perpetuated

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Speaker 4: by media, and it does make you feel like trash

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Speaker 4: when every second day we're hearing that our mortgages are

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Speaker 4: going to cost us more and it's harder to get

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Speaker 4: into property because the cash rate has increased again, and

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Speaker 4: it just it feels bad when we hear the inflation

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Speaker 4: is at seven point one percent, and then you have

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Speaker 4: a chat with your employer and they're like, oh, bet,

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Speaker 4: here's it, and I mean, this hasn't actually happened to you,

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Speaker 4: so disclaimer, but like, oh bet, you're getting a two

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Speaker 4: percent pay rise and you should be grateful for that.

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Speaker 1: Like we're all just a little bit pissed right Like we're.

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Speaker 4: Not happy about the economic circumstances at the moment. But

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Speaker 4: I think something that can help us is understanding it.

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Speaker 4: I'm not saying don't be mad. You can add absolutely

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Speaker 4: be mad. But what we need to remember is the

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Speaker 4: economics goes in ebbs and flows. There are going to

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Speaker 4: be highs in economics and there are going to be

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Speaker 4: lows in economics, and right.

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Speaker 1: Now we're kind of going through a little bit of

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Speaker 1: a low.

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Speaker 4: It does feel a bit trashy, but there are also

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Speaker 4: going to be times where the economy is absolutely booming

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Speaker 4: and you're killing it. I'm killing it, and we're investing

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Speaker 4: well and we're just having the best time. But at

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Speaker 4: the moment, we're just in this circumstance where it is

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Speaker 4: on the downturn. We don't know when it's going to

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Speaker 4: turn back up. We can listen to a lot of

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Speaker 4: smart people talk a lot of smart junk about it,

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Speaker 4: but ultimately nobody can predict the future.

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Speaker 1: We do think it's.

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Speaker 4: Going to go up relatively soon, we do think, and

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Speaker 4: a lot of educated people say that, you know, the

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Speaker 4: recession is heading for us, but it's probably not going

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Speaker 4: to be as bad as we're anticipating. But what does

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Speaker 4: that all mean? And I guess that's why we're having

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Speaker 4: this conversation today, V.

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Speaker 1: When we talk about quarterly market update, I'm wondering what

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Speaker 1: is a quarter like? How does that work? And what

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Speaker 1: quarter are we in?

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Speaker 4: Good question, So when we say quarterly market update, the

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Speaker 4: twelve months of the year are broken down into four

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Speaker 4: segments of three months each, and there's a few different

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Speaker 4: ways of looking at it. We could either be in

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Speaker 4: Q two or Q four right now, So we're in

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Speaker 4: for a calendar year Q two, So quarter two we've

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Speaker 4: had January, February, March, so that was Q one. April

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Speaker 4: May and June is Q two. But in terms of

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Speaker 4: the financial year, which is what we're going to reference

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Speaker 4: right now, we're in Q four. So Q four is

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Speaker 4: because the end of financial year here in Australia ends

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Speaker 4: on the thirtieth of June, and so a lot of businesses,

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Speaker 4: a lot of economists, we're all working towards this end

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Speaker 4: of financial year. Also my birthday, so I like to

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Speaker 4: think that it's really fancy, but it's one of those

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Speaker 4: things where you might hear Q two or you might

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Speaker 4: hear Q four. But in the finance world, we're currently

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Speaker 4: in Q four because the end of financial year is

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Speaker 4: on June thirty, so we're currently in the.

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Speaker 1: Midst of that.

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Speaker 4: And that's why a lot of people right now are

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Speaker 4: talking about inflation because on the thirtieth of June, that's

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Speaker 4: when things are going to be locked in. We're talking

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Speaker 4: about HEX because the CPI and inflation on HEX is

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Speaker 4: going to be locked in before the end of the

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Speaker 4: financial year to make sure that the ATO calculates things. Well,

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Speaker 4: there's a lot of things that are going to be

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Speaker 4: wrapping up on June thirty, which means our community needs

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Speaker 4: to be privy to it.

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Speaker 1: But that's why I think we'll focus on Q four instead. Right, Okay,

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Speaker 1: so what is currently happening right now for our community?

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Speaker 4: First things first, let's talk about employment rates. I feel

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Speaker 4: like Korea is a topic that we need to be

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Speaker 4: really talking about, and I think it impacts most people

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Speaker 4: in our community because they are either employed, looking to

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Speaker 4: be employed, or are planning to be employed in the future.

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Speaker 4: So employment rates are at record lows. So this is

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Speaker 4: a good thing. Of three point five percent. This means

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Speaker 4: that it is a job seekers market. The need for

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Speaker 4: new staff and employees in areas like hospitality and tourism

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Speaker 4: and manufacturing and mining, healthcare, social work, trades and services

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Speaker 4: has increased, which is a really good thing for the

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Speaker 4: environment as a whole. As you can imagine if we

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Speaker 4: give as much context here as possible. We went through COVID, right,

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Speaker 4: and COVID was a period of significant economic downto our

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Speaker 4: government carried us for a serious period of time that

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Speaker 4: was really nice, so we didn't.

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Speaker 1: Feel the brunt of it.

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Speaker 4: While heaps of us weren't working but areas like hospitality, tourism,

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Speaker 4: mining health. Yet they were hit really hard by that

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Speaker 4: period of time, and then straight after COVID, like they

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Speaker 4: weren't recovering very quickly, like how many cafes did we

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Speaker 4: see closing down? And there weren't that many hostbow jobs

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Speaker 4: going around, And to be honest, after COVID, people were

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Speaker 4: really apprehensive about going back to roles that were quite

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Speaker 4: people facing, so they didn't really want to do them

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Speaker 4: because they thought that there was a lot of risk.

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Speaker 4: And now it has been announced by the WHO, So

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Speaker 4: the World Health Organization has announced that we're no longer

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Speaker 4: in a pandemic, which is really really cool, and I

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Speaker 4: think that a lot of us are feeling that pressure release.

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Speaker 4: I don't think that it was the announcement that felt

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Speaker 4: like the pressure was releasing. I think we just started

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Speaker 4: getting back to this new normal, you could say, and

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Speaker 4: now we're confident enough to take up hospbow jobs and

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Speaker 4: working tourism. All of that is starting to pick up,

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Speaker 4: which means that the economy is basically operating above its

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Speaker 4: full capacity and there's downwards pressure on inflation, which for

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Speaker 4: us is actually really good. So that cash rate is

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Speaker 4: going to come down because employment rates are at a

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Speaker 4: record low.

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Speaker 1: Okay, So is this amazing news or is there any downside?

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Speaker 4: Look, it's pretty good news. At the end of the day.

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Speaker 4: We actually want unemployment rates to be at a record

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Speaker 4: low because it basically means more people have more jobs,

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Speaker 4: and we want more people to be in more employment

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Speaker 4: because the more people that are working, the more money

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Speaker 4: is going through our economy, and the more money that

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Speaker 4: goes through our economy, the healthier we are. Right, So

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Speaker 4: is it a good thing?

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Speaker 1: Absolutely? It is. Beck.

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Speaker 4: There's never going to be a period of time where

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Speaker 4: it's a zero percent unemployment rate where absolutely everyone in

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Speaker 4: the economy has a job.

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Speaker 1: And that's okay.

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Speaker 4: But what you want to see is that on the

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Speaker 4: lower side during COVID that obviously peaked and that wasn't good,

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Speaker 4: which meant that we are now in the economic circumstances

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Speaker 4: that we are in today. Ultimately, we are in this

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Speaker 4: period right now where inflation is really high. So we

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Speaker 4: know that inflation is at seven point one percent and

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Speaker 4: everything is so much more expensive due to inflation. So

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Speaker 4: in regards to wages and income in the December quarter,

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Speaker 4: in twenty twenty two the seasonally adjusted WPI, which sounds

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Speaker 4: really fancy because beck, did you know if you use acronyms,

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Speaker 4: it actually makes you more intelligent?

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Speaker 1: I have heard, Yeah, I heard. So it's actually just

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Speaker 1: the wage price.

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Speaker 4: Index, so it's not that sexy, but finance bros will

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Speaker 4: throw around the acronyms to make you feel silly, and

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Speaker 4: then if you feel silly, you assume they're smarter than you.

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Speaker 1: Right, it's not the.

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Speaker 4: Case at all, but the WPI, so the wage price

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Speaker 4: index actually measures changes in the price of labor, so

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Speaker 4: whether labour's cheaper or more expensive. And we know because

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Speaker 4: of the conversations that our community has been having and

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Speaker 4: I've been having because as you guys know, I've been

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Speaker 4: renovating house. So this is probably a good example of

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Speaker 4: WPI being high. It was so expensive to get trade's

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Speaker 4: because they weren't that many of them, so they could

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Speaker 4: charge a premium, so the WPI in construction was much higher.

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Speaker 4: I think a lot of us can understand that, and

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Speaker 4: that makes a lot of sense. But in the December

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Speaker 4: quarter twenty twenty two, WPI rose by zero point eight

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Speaker 4: percent in this quarter and three point three percent over

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Speaker 4: this year that is actually relatively high the private sector,

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Speaker 4: so like private businesses rose zero point eight percent and

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Speaker 4: the public sector rose by zero point seven percent, so

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Speaker 4: relatively on par Australia's minimum wage for an adult is

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Speaker 4: currently sitting at twenty one dollars and thirty eight cents

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Speaker 4: per hour. This is before tax, or eight hundred and

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Speaker 4: twelve dollars and sixty cents for thirty eight hour work week.

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Speaker 4: And to I guess put this into a little bit

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Speaker 4: of context, the wage price index actually defines an adult

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Speaker 4: as anyone over the age of twenty one, not eighteen,

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Speaker 4: So it's not taking into consideration those people who are

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Speaker 4: kind of like just settling into work. It's actually like

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Speaker 4: the more settled individuals in our community, which is just

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Speaker 4: interesting to know.

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Speaker 1: That is very interesting, And I think this is a

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Speaker 1: really good time to take it, quick break, absorb everything,

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Speaker 1: and come back on the other side. All right, let's

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Speaker 1: do it. Let's do it. All right, we are back, Beck,

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Speaker 1: Are you excited about this topic yet? Look, I'm getting there.

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Speaker 1: It's starting to make sense to me, so I'm slowly

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Speaker 1: getting excited. What is happening in the economy right now?

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Speaker 4: All right, I will answer that question, But how many

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Speaker 4: people do you think actually gave any care to what

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Speaker 4: the RBA was doing and what they did in their

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Speaker 4: meetings each and every single month until maybe like midyear

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Speaker 4: last year.

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Speaker 1: I know I didn't care.

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Speaker 4: You still probably don't care, to be honest, I know

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Speaker 4: you well enough now. But the RBA is the Reserve

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Speaker 4: Bank of Australia, right and their job is to make

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Speaker 4: sure that inflation doesn't spiral out of control for us,

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Speaker 4: to make sure that cash is always accessible and that

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Speaker 4: they're doing the right thing right. But essentially nobody cared

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Speaker 4: about it until it was really really impacting.

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Speaker 1: Our bottom lines.

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Speaker 4: They were just bobbing along having a good day. Like

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Speaker 4: they'd probably put their little press releases out and outlets

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Speaker 4: it'd be like, yeah, cool, thanks, but we have a

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Speaker 4: busy news day, like we're probably not going to be

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Speaker 4: able to talk about the RBA, and they're like, yeah, no,

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Speaker 4: where is Noorries? And then when stuff started to hit

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Speaker 4: the fan, they're putting out their press releases and every

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Speaker 4: single media outlet's.

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Speaker 1: Like, oh my god, can you get the RBA's media release.

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Speaker 1: Let's see what's going like we are watching it like hawks.

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Speaker 4: I have always watched it like a hawk because I'm

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Speaker 4: always interested in it. But now everybody kind of knows

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Speaker 4: that they meet at around eleven am every day, and

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Speaker 4: you know that there's going to be an announcement after that,

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Speaker 4: and I just wait for this, like I'm so excited

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Speaker 4: about it. Right, But so many people are now waiting

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Speaker 4: on the results of their monthly meetings with absolutely baited

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Speaker 4: breath to see how much they have increased interest rates

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Speaker 4: to counter inflation. Right, and we know that over time

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Speaker 4: this is actually going to start declining, which is really good.

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Speaker 4: I do foresee it going up a few more times.

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Speaker 4: I'm really sorry. It's not just me saying this, like

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Speaker 4: me saying this because it makes sense to me. But

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Speaker 4: also according to leading economists in Australia and the Central Bank,

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Speaker 4: inflation is expected to continue rising before the end of

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Speaker 4: the year and even further into twenty twenty three before

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Speaker 4: declining back down to target range. So target range is

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Speaker 4: between two and three percent. Context, we're currently at seven

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Speaker 4: point one percent by approximately twenty twenty four, so we'll

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Speaker 4: go back down. That's the purpose of increasing the cash

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Speaker 4: rate because that's what it kind of counters.

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Speaker 1: It's kind of like levers, right.

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Speaker 4: The RBA know that if they pulled the lever of saying,

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Speaker 4: all right, Beck, we're going to make cash a little

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Speaker 4: bit more expensive, it's actually going to stunt inflation.

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Speaker 1: And that's good for us.

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Speaker 4: So as much as it feels really trash, it's really

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Speaker 4: good for us in the long term that they're kind

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Speaker 4: of like putting the brakes on a little bit and

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Speaker 4: you know, making sure that as an economy we are

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Speaker 4: going to be okay, and we'll go back to a

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Speaker 4: more reasonable rate of inflation of between two and three percent.

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Speaker 4: And ultimately we don't want no inflation. That would be bad.

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Speaker 4: That would mean that our economy is not doing well enough,

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Speaker 4: it's not growing. We don't want too much inflation because

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Speaker 4: look what's happened. We are now at seven point one percent,

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Speaker 4: and bet everything's so expensive. It's growing too quickly. Our

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Speaker 4: wages aren't keeping up with it. The world is an

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Speaker 4: expensive place to live. Our mortgages are costing us an

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Speaker 4: armoral egg, like it's not a good place to live.

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Speaker 4: But at two to three percent, that's really healthy economic growth.

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Speaker 4: That is a good place to be to know that

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Speaker 4: wages are going to increase slowly over time. Our exports

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Speaker 4: are going out nicely, they're coming in nicely. We've got

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Speaker 4: some good jobs, we've got good job growth. Everything is

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Speaker 4: doing well. So we don't want no inflation because that

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Speaker 4: means no growth, but we want an amount of growth

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Speaker 4: that we can keep up with because we can't run

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Speaker 4: this fast. Beck like, I can't keep up with seven

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Speaker 4: percent two to three. Yeah, that seems like walking pace.

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Speaker 4: I could probably do that. Oh yeah, does that make sense?

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Speaker 1: Yeah, that does make sense.

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Speaker 4: So over the twelve months to the March quarter CPI,

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Speaker 4: so consumer price index rows to seven percent. We know

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Speaker 4: that already, but that is showing signs that interest rate

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Speaker 4: rises are flowing into households and actually dampening consumer demand.

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Speaker 4: So that basically means, as interest rates are increasing in households,

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Speaker 4: you're starting to make decisions about cutting back on non

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Speaker 4: discretionary items. So we're not really going to the movies

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Speaker 4: as much, we're not really buying that many discretionary items,

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Speaker 4: We're not buying things just because it's fun. We kind

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Speaker 4: of cut back and go back a bit to the basics.

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Speaker 4: The figure, so we're now at seven point one percent,

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Speaker 4: is actually slightly higher than the predicted six point nine

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Speaker 4: percent that analysts and economists were predicting beg but lower

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Speaker 4: than the thirty year high of seven point eight percent

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Speaker 4: from the December quarter.

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Speaker 1: That's a good thing.

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Speaker 4: Overall prices on average rows one point four percent over

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Speaker 4: the March quarter alone, and the Australian Bureau of Statistics

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Speaker 4: also released the monthly CPI figures, so Consumer Price Index

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Speaker 4: figures for March, which came in at six point three percent,

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Speaker 4: which is a fall. So it's dropped away a little

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Speaker 4: bit from the annual rises of six point eight percent

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Speaker 4: from February and seven point four percent for January.

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Speaker 1: So this is a good thing. We're seeing it kind

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Speaker 1: of starting to come back. We lack this. This is

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Speaker 1: good news. Are you keeping up, my friend. It's a

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Speaker 1: lot to take in, but I think we're getting there.

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Speaker 4: I don't expect you to get it immediately, by the way.

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Speaker 4: I know that I'm rattling off this stuff, but it's

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Speaker 4: one of those things where if this isn't your first language,

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Speaker 4: finance is my first language. This is going to go

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Speaker 4: straight over your head. Sometimes you just need to literally

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Speaker 4: go back a little bit and just listen to it again.

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Speaker 4: If it's not making sense to you, it's going to

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Speaker 4: be exposure that gets you there. It's not a lack

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Speaker 4: of education. You've just never had this language. You've just

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Speaker 4: never been communicated like this. It's like learning French and

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Speaker 4: you kind of pick up a few words and we're

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Speaker 4: talking about dogs and cats, and you might understand, Okay,

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Speaker 4: they're talking about a dog and a cat, because I

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Speaker 4: absolutely recognize those two words, but the stuff around it

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Speaker 4: didn't make sense. Context is going to be key here.

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Speaker 4: So if you didn't understand what I'm talking about thus far,

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Speaker 4: I get it, sis.

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Speaker 1: I really do.

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Speaker 4: Prior to me being a financial advisor, I would have

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Speaker 4: been like, I'm turning this podcast off.

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Speaker 1: It makes us no sense.

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Speaker 4: But I promise you all of that is going to

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Speaker 4: make sense once you go, Okay, I'm over it. I

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Speaker 4: do know what CPI is, Okay, I'm over it. I

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Speaker 4: know what the Central Bank is. Okay, the RBA makes sense.

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Speaker 1: Like all of this.

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Speaker 4: Stuff, it's just about exposure. Yeah, if you're not getting it,

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Speaker 4: it's not because you're silly. I promise you are such

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Speaker 4: a smart person. And while I say this isn't complicated stuff,

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Speaker 4: it genuinely can sometimes feel like I'm speaking another language.

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Speaker 1: Listen to it again.

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Speaker 4: I promise, And I just wanted to interject there because

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Speaker 4: I feel like, genuinely sometimes people are like, what the

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Speaker 4: hell am I an idiot for not understanding this?

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Speaker 1: No, Sis, you're not. You just never spoken French before.

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Speaker 4: How are you going to know how to speak French

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Speaker 4: if we don't practice it consistently?

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Speaker 1: Exactly?

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Speaker 4: All right back on track. The ABS, the Australian Bureau

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Speaker 4: of Statistics. You guys know, I am obsessed with them.

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Speaker 4: If I'm not obsessed with them enough, I'm obsessed with

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Speaker 4: their social media presence. Go follow them on Instagram. I'm

409
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Speaker 4: still trying to work out who's running their Instagram because

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Speaker 4: they are some of the wittiest people in the entire

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Speaker 4: world far out. I want to be you. I want

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Speaker 4: to know you. If you work at the ABS, and

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Speaker 4: you know you, let me know. I'll keep it a secret.

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Speaker 4: I just want to know, like, I'm not going to

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Speaker 4: try and steal those people from you. I might, like,

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Speaker 4: promise I won't if you're nice. But in its recent release,

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Speaker 4: the Australian Bureau of Statistics noted that the most significant

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Speaker 4: price rises were in a few things gas and other

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Speaker 4: household fuels. I don't think anyone's going to be surprised

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Speaker 4: about that, which soared by fourteen point three percent. Fourteen

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Speaker 4: point three percent more for gas, that is wild geez.

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Speaker 4: Medical and hospital services they rose by four point two percent.

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Speaker 4: Tertiary education costs rose by nine point seven percent.

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Speaker 1: Oh wow, discoo stent.

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Speaker 4: And domestic holiday travel and accommodation is up by four

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Speaker 4: point seven percent, which personally I found quite crazy because

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Speaker 4: I assumed that it would be much higher than that,

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Speaker 4: because obviously, during a period of time black we've just

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Speaker 4: gone through with COVID, I thought it would be with

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Speaker 4: so many international workers leaving our country and so many

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Speaker 4: Australian workers now taking those roles and arguably demand higher

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Speaker 4: incomes or less hours or like there's just been a

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Speaker 4: lot of change. I assumed that domestic holiday travel and

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Speaker 4: accommodation would be higher. But I think because a lot

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Speaker 4: of these places are just trying to keep people coming

436
00:20:13,680 --> 00:20:16,439
Speaker 4: in the door, they haven't raised prices as much, and

437
00:20:16,560 --> 00:20:19,639
Speaker 4: I would genuinely predict that in the future that is

438
00:20:19,680 --> 00:20:22,639
Speaker 4: going to go up even more because it's still expensive

439
00:20:22,680 --> 00:20:26,080
Speaker 4: to like run hotels and run resorts and run any

440
00:20:26,119 --> 00:20:29,199
Speaker 4: type of accommodation like that's expensive and the burden that

441
00:20:29,240 --> 00:20:31,879
Speaker 4: they carry of not being in business for such a

442
00:20:31,880 --> 00:20:34,920
Speaker 4: long period of time, I believe is still being carried.

443
00:20:35,160 --> 00:20:37,480
Speaker 4: So I would not be confused if you know, in

444
00:20:37,520 --> 00:20:40,680
Speaker 4: a couple of months the ABS releases data that says

445
00:20:40,720 --> 00:20:44,040
Speaker 4: domestic holiday travel and accommodation is much more expensive four

446
00:20:44,040 --> 00:20:46,480
Speaker 4: point seven. I was like, do you mean fourteen point seven?

447
00:20:46,600 --> 00:20:48,560
Speaker 4: But that's not the case. I did triple check it,

448
00:20:49,000 --> 00:20:52,000
Speaker 4: all right. The Reserve Bank have increased their interest rates.

449
00:20:52,119 --> 00:20:54,879
Speaker 4: So the cash rate we've talked about inflation obviously at

450
00:20:54,920 --> 00:20:57,280
Speaker 4: seven point one percent, but the cash rate that the

451
00:20:57,359 --> 00:21:00,560
Speaker 4: Reserve Bank have implemented try and battle that is now

452
00:21:00,640 --> 00:21:03,600
Speaker 4: at three point eighty six percent. So the Reserve Bank,

453
00:21:03,800 --> 00:21:06,439
Speaker 4: let's see the Reserve Bank. The RBA is the big dogs,

454
00:21:06,720 --> 00:21:09,800
Speaker 4: and they have all the money. They lend their money

455
00:21:10,200 --> 00:21:13,159
Speaker 4: to other banks, So like NAB and where's packing comback,

456
00:21:13,280 --> 00:21:15,520
Speaker 4: they all go to the RBA and they say, hello, sir,

457
00:21:15,960 --> 00:21:19,240
Speaker 4: we're a business and we offer mortgages, but we need

458
00:21:19,320 --> 00:21:21,960
Speaker 4: your money, so we will pay you a certain amount

459
00:21:22,000 --> 00:21:24,080
Speaker 4: of money to borrow your money and then we will

460
00:21:24,160 --> 00:21:26,200
Speaker 4: lend it to our consumers. So we'll lend it to

461
00:21:26,240 --> 00:21:28,639
Speaker 4: Beck if she wants to buy a house. The RBA

462
00:21:28,800 --> 00:21:31,560
Speaker 4: historically was like, yeah, let's make sure that housing is

463
00:21:31,600 --> 00:21:34,520
Speaker 4: really affordable. Let's drop the cash rate to one percent.

464
00:21:34,720 --> 00:21:37,600
Speaker 4: Banks will like, heck, yeah, that means that if we

465
00:21:37,680 --> 00:21:40,159
Speaker 4: are paying one percent to borrow the money from the

466
00:21:40,280 --> 00:21:43,080
Speaker 4: RBA to give to our customers, we could probably clip

467
00:21:43,080 --> 00:21:46,199
Speaker 4: the ticket by lacker point five percent. So if you

468
00:21:46,280 --> 00:21:47,960
Speaker 4: then bet go down the street and say, hey, nab

469
00:21:48,040 --> 00:21:50,040
Speaker 4: one alone, they'll go, we can give it to you

470
00:21:50,119 --> 00:21:52,480
Speaker 4: for one point five percent, because that means that they're

471
00:21:52,520 --> 00:21:54,480
Speaker 4: making back the one percent that they're paying the RBA,

472
00:21:54,480 --> 00:21:57,320
Speaker 4: and then they're making point five percent on your interest rate,

473
00:21:57,320 --> 00:21:59,439
Speaker 4: and you go, that's a good deal. That's cheap money.

474
00:22:00,000 --> 00:22:02,479
Speaker 4: Now the RBA is saying, oh, people are borrowing too

475
00:22:02,600 --> 00:22:05,720
Speaker 4: much money. Things are getting wild. We need to stop

476
00:22:05,760 --> 00:22:08,520
Speaker 4: people spending as much on discretionary items. You know what

477
00:22:08,560 --> 00:22:10,879
Speaker 4: we can do. We can tighten up the belts. We

478
00:22:10,920 --> 00:22:13,520
Speaker 4: can actually increase our cash rate to three point eight

479
00:22:13,600 --> 00:22:16,640
Speaker 4: six percent, which is going to mean Beck she can't

480
00:22:16,640 --> 00:22:20,000
Speaker 4: afford brunches easily. That means that Beck's not going to

481
00:22:20,040 --> 00:22:22,440
Speaker 4: be contributing to the economy, which is going to slow

482
00:22:22,520 --> 00:22:26,080
Speaker 4: down economic growth. So that our inflation rate goes down.

483
00:22:26,480 --> 00:22:29,560
Speaker 4: And what that means is that these banks are now going, oh,

484
00:22:29,640 --> 00:22:31,200
Speaker 4: we used to be able to borrow money for one

485
00:22:31,240 --> 00:22:34,199
Speaker 4: percent from the RBA. Now we have to borrow at

486
00:22:34,240 --> 00:22:37,400
Speaker 4: three point eight six percent. We're not actually making money,

487
00:22:37,480 --> 00:22:39,240
Speaker 4: so we're going to have to pass that on to

488
00:22:39,359 --> 00:22:41,720
Speaker 4: our consumers. So, Beck, if you were able to get

489
00:22:41,720 --> 00:22:44,080
Speaker 4: money for one point five percent, now when you go

490
00:22:44,119 --> 00:22:45,840
Speaker 4: down to the bank and say, hey, need a home loan,

491
00:22:45,960 --> 00:22:48,240
Speaker 4: they're going to say, look, Beck, we borrow money for

492
00:22:48,280 --> 00:22:51,240
Speaker 4: three point eight six percent from the RBA. We still

493
00:22:51,280 --> 00:22:53,439
Speaker 4: want to make at least that point five percent. So

494
00:22:53,560 --> 00:22:56,000
Speaker 4: now when you get a home loan, the average is

495
00:22:56,000 --> 00:22:58,800
Speaker 4: looking more like four point two four point three percent.

496
00:22:58,880 --> 00:23:01,199
Speaker 4: A few of them are closer to five percent, because

497
00:23:01,320 --> 00:23:04,359
Speaker 4: those banks still need to make money, they still have

498
00:23:04,720 --> 00:23:07,239
Speaker 4: employees that they need to pay, they still have a

499
00:23:07,240 --> 00:23:09,800
Speaker 4: debt with the RBA. It's not banks trying to screw

500
00:23:09,880 --> 00:23:12,200
Speaker 4: us over. I promise like your bank is not trying

501
00:23:12,200 --> 00:23:12,640
Speaker 4: to put you.

502
00:23:12,600 --> 00:23:13,600
Speaker 1: In the worse off position.

503
00:23:14,000 --> 00:23:16,440
Speaker 4: In fact, a bank wants money to be as cheap

504
00:23:16,480 --> 00:23:18,800
Speaker 4: as possible, because do you know what happens when money

505
00:23:18,840 --> 00:23:21,359
Speaker 4: is as cheap as possible, People borrow more of it,

506
00:23:21,760 --> 00:23:24,399
Speaker 4: and I promise you if the cash rate was still

507
00:23:24,400 --> 00:23:27,480
Speaker 4: one percent, the bank would much prefer to lend you

508
00:23:27,600 --> 00:23:30,119
Speaker 4: money at one point five percent. So they're taking that

509
00:23:30,200 --> 00:23:33,320
Speaker 4: point five. Then what's going on now, Because even if

510
00:23:33,359 --> 00:23:35,840
Speaker 4: they're making point five and the cash rate right now

511
00:23:35,920 --> 00:23:37,800
Speaker 4: is three point eight six which means the bank is

512
00:23:37,800 --> 00:23:39,919
Speaker 4: now saying, look back the cash rates three point eight

513
00:23:40,000 --> 00:23:42,040
Speaker 4: six percent, I'm still going to tack that point five

514
00:23:42,080 --> 00:23:44,840
Speaker 4: percent on. So now it's four point three six percent.

515
00:23:45,080 --> 00:23:49,240
Speaker 4: So technically they profit margin identical, but you, as a

516
00:23:49,280 --> 00:23:52,720
Speaker 4: consumer can afford less, so you're borrowing less money. So

517
00:23:52,760 --> 00:23:55,200
Speaker 4: the bank is actually making less money in this current

518
00:23:55,240 --> 00:23:58,359
Speaker 4: economy than they were when cash was really really cheap.

519
00:23:58,720 --> 00:24:01,040
Speaker 4: So it's important to remember it's not the bank's trying

520
00:24:01,040 --> 00:24:02,879
Speaker 4: to get us. It's actually just the way of the

521
00:24:02,880 --> 00:24:05,720
Speaker 4: world and it's economics. It is not the bank trying

522
00:24:05,760 --> 00:24:08,200
Speaker 4: to absolutely screw you over and pass it on. If

523
00:24:08,240 --> 00:24:10,800
Speaker 4: the bank didn't pass on this three point eight percent

524
00:24:10,880 --> 00:24:13,879
Speaker 4: cash rate that the RBA set, they would go bankrupt

525
00:24:13,960 --> 00:24:16,680
Speaker 4: beck and that's worse for the economy, and we don't

526
00:24:16,720 --> 00:24:19,359
Speaker 4: actually want that to happen. So as much as that hurts,

527
00:24:19,400 --> 00:24:22,040
Speaker 4: and it's not a fun position to be in. We

528
00:24:22,160 --> 00:24:25,719
Speaker 4: actually want that because it tightens the squeeze. It makes sense.

529
00:24:26,240 --> 00:24:28,720
Speaker 4: It's not forever, though, so I think it's really important

530
00:24:28,760 --> 00:24:32,119
Speaker 4: to remember that nobody's out to get us. They're actually

531
00:24:32,160 --> 00:24:34,880
Speaker 4: trying to protect us by putting these rules in force,

532
00:24:34,920 --> 00:24:36,800
Speaker 4: and that's why the cash rate is sitting where it

533
00:24:36,920 --> 00:24:37,720
Speaker 4: is at the moment.

534
00:24:38,119 --> 00:24:39,520
Speaker 1: If you want to know more about that.

535
00:24:39,560 --> 00:24:42,120
Speaker 4: We actually did drop an entire episode on the third

536
00:24:42,119 --> 00:24:45,440
Speaker 4: of May about investing in a high inflation environment, which

537
00:24:45,440 --> 00:24:48,399
Speaker 4: I would recommend going back and listening to. But I

538
00:24:48,400 --> 00:24:50,760
Speaker 4: hope that makes sense as to why the world isn't

539
00:24:50,760 --> 00:24:52,760
Speaker 4: trying to screw us over. I know we're really negative

540
00:24:52,760 --> 00:24:55,120
Speaker 4: and it really sucks, but it would be much worse

541
00:24:55,160 --> 00:24:56,879
Speaker 4: if they let you keep your one point five percent

542
00:24:56,960 --> 00:24:57,439
Speaker 4: interest rate.

543
00:24:57,800 --> 00:24:59,840
Speaker 1: Yes, second, really it makes sense. Sor if it sounds

544
00:24:59,840 --> 00:25:01,480
Speaker 1: really silly, bit is that a good thing for my

545
00:25:01,600 --> 00:25:04,000
Speaker 1: savings account? In that case, why would that be a

546
00:25:04,040 --> 00:25:06,639
Speaker 1: silly thing? Beck, I feel like you've put two and

547
00:25:06,680 --> 00:25:11,199
Speaker 1: two together. Absolutely, As the cash rate increases, so is

548
00:25:11,280 --> 00:25:14,000
Speaker 1: your interest rate on your savings account. So now is

549
00:25:14,080 --> 00:25:16,399
Speaker 1: probably the time if you've been looking from high interest

550
00:25:16,440 --> 00:25:19,680
Speaker 1: savings account and you listened to content. Maybe eighteen months

551
00:25:19,720 --> 00:25:22,760
Speaker 1: ago from me, I'd be like, all right, Beck, high

552
00:25:22,800 --> 00:25:25,600
Speaker 1: interest savings accounts are dead, Like you're not even going

553
00:25:25,640 --> 00:25:28,840
Speaker 1: to get more than one percent. Now, there are savings

554
00:25:28,880 --> 00:25:32,280
Speaker 1: accounts that have four point five percent. That's really sexy.

555
00:25:32,480 --> 00:25:35,040
Speaker 1: So if you haven't looked at high interest.

556
00:25:34,800 --> 00:25:37,640
Speaker 4: Savings account in a while because you've been worried that,

557
00:25:37,840 --> 00:25:40,080
Speaker 4: you know, ah, they're not worth the time, maybe they

558
00:25:40,080 --> 00:25:42,440
Speaker 4: are now so it might be worth looking into. So

559
00:25:42,480 --> 00:25:45,520
Speaker 4: you are absolutely correct, because what happens over time is

560
00:25:45,760 --> 00:25:48,720
Speaker 4: as interest rates increase and you're paying more on your mortgage,

561
00:25:48,760 --> 00:25:51,080
Speaker 4: you actually get more return on your savings account. And

562
00:25:51,119 --> 00:25:53,840
Speaker 4: the inverse is true. When you have cheap interest rates

563
00:25:53,880 --> 00:25:56,440
Speaker 4: and your mortgagees are cheaper, it actually means that you're

564
00:25:56,440 --> 00:25:57,800
Speaker 4: not getting such a good savings rate.

565
00:25:57,840 --> 00:25:58,520
Speaker 1: So you're correct.

566
00:25:58,600 --> 00:26:00,800
Speaker 4: Right now is a good time to be re evaluating

567
00:26:00,840 --> 00:26:02,520
Speaker 4: your savings account, your bloody genius.

568
00:26:02,640 --> 00:26:05,359
Speaker 1: Oh thank you. Okay, here we go. I'm learning something.

569
00:26:05,640 --> 00:26:07,840
Speaker 1: So V I hear the banks are doing pretty well.

570
00:26:07,840 --> 00:26:11,240
Speaker 4: They are rolling in it, you could say, which is

571
00:26:11,280 --> 00:26:14,280
Speaker 4: surprising because everyone's complaining about how much more they're being

572
00:26:14,359 --> 00:26:15,440
Speaker 4: charged on their mortgages.

573
00:26:15,480 --> 00:26:16,680
Speaker 1: And we've talked about this before.

574
00:26:16,720 --> 00:26:18,679
Speaker 4: That's actually not got a lot to do with the

575
00:26:18,720 --> 00:26:22,119
Speaker 4: bank profits. Like, yes, it does in a way, but

576
00:26:22,280 --> 00:26:24,320
Speaker 4: at the end of the day, the RBA sets the

577
00:26:24,359 --> 00:26:27,000
Speaker 4: cash rate and then that's how much banks are borrowing

578
00:26:27,040 --> 00:26:29,159
Speaker 4: money for, so they're just passing it along to you,

579
00:26:29,320 --> 00:26:31,680
Speaker 4: so they're not actually making you know, three or four

580
00:26:31,720 --> 00:26:33,439
Speaker 4: percent more. And I think a lot of us have

581
00:26:33,520 --> 00:26:35,720
Speaker 4: in our heads, oh my gosh, my bank was charging

582
00:26:35,720 --> 00:26:37,760
Speaker 4: me one point five and now they're charging me five

583
00:26:37,800 --> 00:26:39,240
Speaker 4: percent on my mortgage.

584
00:26:39,400 --> 00:26:41,560
Speaker 1: They must be rolling in it, right, That's.

585
00:26:41,400 --> 00:26:44,840
Speaker 4: Not actually the case because they're actually having to borrow

586
00:26:44,840 --> 00:26:46,640
Speaker 4: the money at more, so they're kind of just passing

587
00:26:46,680 --> 00:26:49,199
Speaker 4: that fee to you, so that profit margin is not

588
00:26:49,280 --> 00:26:51,880
Speaker 4: coming from there, which I think is important to preface

589
00:26:51,920 --> 00:26:54,480
Speaker 4: before I give this number because it's insane. So the

590
00:26:54,560 --> 00:26:57,280
Speaker 4: big four banks, so when we say the big four

591
00:26:57,280 --> 00:27:00,439
Speaker 4: in Australia, we're talking about A and Z, NAB and

592
00:27:00,480 --> 00:27:04,480
Speaker 4: west Pac. They have reported are you ready, They've reported

593
00:27:04,480 --> 00:27:09,679
Speaker 4: a combined sixteen billion dollars worth of profit thanks to

594
00:27:09,760 --> 00:27:13,080
Speaker 4: raising the cash rate. So as much as they're passing

595
00:27:13,160 --> 00:27:17,399
Speaker 4: it along, it's still helping them. This might see the

596
00:27:17,400 --> 00:27:21,320
Speaker 4: budget return a surplus. According to Motley Fools. Scott Phillips though,

597
00:27:21,560 --> 00:27:23,440
Speaker 4: and I've been consuming a fair bit of his data

598
00:27:23,480 --> 00:27:25,920
Speaker 4: recently because he's got a partnership with our friends Chairsey's.

599
00:27:26,000 --> 00:27:28,199
Speaker 4: And this is not a sponsored mention at all. I

600
00:27:28,240 --> 00:27:31,000
Speaker 4: just really like it. But he's doing the market update

601
00:27:31,040 --> 00:27:34,600
Speaker 4: on the Chasea's Instagram and I'm just vibing it, Like, Scott,

602
00:27:34,640 --> 00:27:36,000
Speaker 4: if you want to come over and do one for

603
00:27:36,040 --> 00:27:38,040
Speaker 4: She's on the money, Like, I just think it's really

604
00:27:38,040 --> 00:27:38,639
Speaker 4: good content.

605
00:27:39,080 --> 00:27:41,000
Speaker 1: Or we could send the community over.

606
00:27:40,920 --> 00:27:43,080
Speaker 4: To the Chasea's Instagram and I guess they could get

607
00:27:43,080 --> 00:27:44,159
Speaker 4: it there without us having.

608
00:27:44,080 --> 00:27:46,040
Speaker 1: To talk to Scott. Pos we could be one or

609
00:27:46,080 --> 00:27:46,360
Speaker 1: the other.

610
00:27:46,480 --> 00:27:47,960
Speaker 4: I mean, it would be nice to talk to him

611
00:27:48,000 --> 00:27:50,520
Speaker 4: at some point, but I think it's really really interesting

612
00:27:50,640 --> 00:27:53,640
Speaker 4: just I guess having these conversations and what it means.

613
00:27:53,760 --> 00:27:55,920
Speaker 4: And that's why I prefaced it back, because I was like, look,

614
00:27:55,920 --> 00:27:59,640
Speaker 4: they've you know, combined, they've got sixteen billion dollars worth

615
00:27:59,640 --> 00:28:02,040
Speaker 4: of and a lot of people might have jumped to

616
00:28:02,040 --> 00:28:04,000
Speaker 4: the conclusion that, oh my god, that's because the rates

617
00:28:04,000 --> 00:28:08,240
Speaker 4: have increased and you know, they're absolutely raiming us, and like, yeah, nah,

618
00:28:08,320 --> 00:28:10,600
Speaker 4: Like there's a balance there because if I just told

619
00:28:10,640 --> 00:28:12,200
Speaker 4: you that, you would have been like, yeah, because interest

620
00:28:12,240 --> 00:28:13,960
Speaker 4: rates went from one and a half up to like

621
00:28:14,000 --> 00:28:16,920
Speaker 4: four and a half. Well yeah, but they're also having

622
00:28:16,960 --> 00:28:19,720
Speaker 4: to borrow money at a higher percentage, so not all

623
00:28:19,760 --> 00:28:21,520
Speaker 4: of that is profit right, so.

624
00:28:21,440 --> 00:28:24,520
Speaker 1: They're kind of like making this every single year.

625
00:28:24,760 --> 00:28:28,440
Speaker 5: They're about yeah, like they areking bank every year, which

626
00:28:28,440 --> 00:28:30,880
Speaker 5: is why, honestly, when it goes back to it, it's

627
00:28:30,880 --> 00:28:33,960
Speaker 5: why so many people in the Australian share market like

628
00:28:34,000 --> 00:28:37,600
Speaker 5: owning banks, like people like going and buying blue chip

629
00:28:37,680 --> 00:28:39,880
Speaker 5: stocks in the Australian share market, which.

630
00:28:39,680 --> 00:28:42,640
Speaker 4: Are things like banks, because they're tried and they're true,

631
00:28:42,720 --> 00:28:45,160
Speaker 4: and they're tested, and they're relatively boring, but they have

632
00:28:45,360 --> 00:28:48,680
Speaker 4: consistent returns and they pay out dividends, which is like

633
00:28:48,840 --> 00:28:53,000
Speaker 4: paying out the profit to shareholders, and ultimately shareholders really

634
00:28:53,120 --> 00:28:53,360
Speaker 4: like that.

635
00:28:53,840 --> 00:28:56,160
Speaker 1: And I really like that. Yes, that's why I earned

636
00:28:56,200 --> 00:29:00,080
Speaker 1: some banks like portfolio sounds it pretty sweet. I'm assuming

637
00:29:00,200 --> 00:29:02,920
Speaker 1: we're happy about the banks reporting healthy profits.

638
00:29:03,160 --> 00:29:04,920
Speaker 4: We want that because it's a sign of a really

639
00:29:04,920 --> 00:29:08,000
Speaker 4: good economy. It means that the banks are doing really well.

640
00:29:08,040 --> 00:29:10,920
Speaker 4: We should be concerned when banks aren't churning a good

641
00:29:10,960 --> 00:29:13,240
Speaker 4: profit and at the end of the day, like, yes,

642
00:29:13,640 --> 00:29:15,680
Speaker 4: we don't want the banks to get rich rich, Like

643
00:29:15,920 --> 00:29:19,520
Speaker 4: the economy is really important, you know, community is really important.

644
00:29:19,680 --> 00:29:23,640
Speaker 4: But I think stepping away from that conversation about equality

645
00:29:23,640 --> 00:29:26,080
Speaker 4: and equity and all of that, because obviously a lot

646
00:29:26,120 --> 00:29:28,000
Speaker 4: of people are going to be quite opinionated. Beck they

647
00:29:28,000 --> 00:29:29,640
Speaker 4: can go, oh my god, but they should be passing

648
00:29:29,640 --> 00:29:33,200
Speaker 4: this on ra rah. They most often are, They're passing

649
00:29:33,240 --> 00:29:36,560
Speaker 4: that profit onto shareholders. So each and every single year

650
00:29:36,600 --> 00:29:39,160
Speaker 4: when they report a profit, or maybe it's every six months,

651
00:29:39,200 --> 00:29:42,360
Speaker 4: it depends on their reporting criteria, they pass it along

652
00:29:42,400 --> 00:29:45,360
Speaker 4: to shareholders, and they might reinvest some of that profit

653
00:29:45,440 --> 00:29:47,880
Speaker 4: back into building the business, but a lot of the

654
00:29:47,920 --> 00:29:50,440
Speaker 4: time it just goes directly to shareholders. And the reason

655
00:29:50,480 --> 00:29:53,320
Speaker 4: for that is the banks are already relatively well established

656
00:29:53,400 --> 00:29:56,560
Speaker 4: and they don't need to, you know, reinvest significant amounts

657
00:29:56,560 --> 00:29:59,040
Speaker 4: of their profit back into their business to grow it

658
00:29:59,080 --> 00:30:01,360
Speaker 4: again because they are already their back right.

659
00:30:01,320 --> 00:30:03,520
Speaker 1: I see, Okay, So I just want to talk about

660
00:30:03,560 --> 00:30:06,640
Speaker 1: the budget really quickly, because right now I don't actually.

661
00:30:06,720 --> 00:30:09,680
Speaker 4: Sell sexy, so sexy like what does what do you mean?

662
00:30:09,720 --> 00:30:13,040
Speaker 4: You don't know, didn't you on Tuesday night? Like a

663
00:30:13,080 --> 00:30:15,080
Speaker 4: couple of weeks ago, sit in front of the TV

664
00:30:15,240 --> 00:30:17,160
Speaker 4: with wine and you were like, well, sub.

665
00:30:17,080 --> 00:30:18,239
Speaker 1: Balbo, what's going on?

666
00:30:18,320 --> 00:30:20,240
Speaker 4: And then you were like watching it like the AFL

667
00:30:20,280 --> 00:30:20,800
Speaker 4: Grand Final.

668
00:30:21,320 --> 00:30:23,960
Speaker 1: Did people do that anywhere in the world? I did that?

669
00:30:24,400 --> 00:30:25,880
Speaker 3: You did? That's so sweet.

670
00:30:26,120 --> 00:30:28,960
Speaker 4: Yeah, my husband wasn't that impressed. He's recently got a

671
00:30:28,960 --> 00:30:31,800
Speaker 4: new PlayStation five and he would have preferred, absolutely, like

672
00:30:31,880 --> 00:30:34,040
Speaker 4: to play the golf game that he go, yeah, look

673
00:30:34,080 --> 00:30:36,640
Speaker 4: anything else, Like I thought a golf game was pretty bland,

674
00:30:36,720 --> 00:30:39,440
Speaker 4: but like he's been playing this golf game and yeah,

675
00:30:39,440 --> 00:30:40,720
Speaker 4: he kept asking me, can we.

676
00:30:40,680 --> 00:30:42,240
Speaker 1: Gn that on you? You can just read the.

677
00:30:42,200 --> 00:30:44,960
Speaker 4: Report like, no, sir, this is so exciting I need

678
00:30:44,960 --> 00:30:46,600
Speaker 4: to yell at the TV a little bit longer.

679
00:30:47,080 --> 00:30:48,960
Speaker 1: Yeah, it's like my sport. I really like it.

680
00:30:49,040 --> 00:30:51,920
Speaker 4: I think it tells you a lot about the government's priorities.

681
00:30:52,000 --> 00:30:55,840
Speaker 4: It was interesting because obviously the Albanezy government has prioritized

682
00:30:55,880 --> 00:30:58,240
Speaker 4: cost of living relief, which I think is really sexy.

683
00:30:58,640 --> 00:31:01,200
Speaker 4: So we're looking at things like housing and healthcare and

684
00:31:01,240 --> 00:31:05,520
Speaker 4: clean energy measures and the budget. Not everybody is happy

685
00:31:05,600 --> 00:31:07,360
Speaker 4: about the budget. I think a lot of people have

686
00:31:07,480 --> 00:31:09,960
Speaker 4: seen it as a bit of give and take, like

687
00:31:09,960 --> 00:31:11,680
Speaker 4: I've heard a lot of comments of people being like,

688
00:31:11,680 --> 00:31:13,160
Speaker 4: oh my gosh, they're investing in this.

689
00:31:13,160 --> 00:31:16,280
Speaker 1: But that's taken away from X. That's not how the

690
00:31:16,280 --> 00:31:17,040
Speaker 1: budget works.

691
00:31:17,240 --> 00:31:20,840
Speaker 4: You know, budget gets allocated in line with priorities of

692
00:31:20,880 --> 00:31:23,400
Speaker 4: the government but also the community and taking lots of

693
00:31:23,440 --> 00:31:25,000
Speaker 4: different factors into consideration.

694
00:31:25,080 --> 00:31:26,800
Speaker 1: They're not looking at it and going, oh.

695
00:31:26,600 --> 00:31:29,520
Speaker 4: Should we allocate to Beck or Victoria Like, they're not

696
00:31:29,840 --> 00:31:32,640
Speaker 4: comparing the two. They're looking at that situation and how

697
00:31:32,720 --> 00:31:34,960
Speaker 4: much funding it would need, and then looking at the

698
00:31:34,960 --> 00:31:37,280
Speaker 4: total budget and what they can allocate. They're not kind of,

699
00:31:37,640 --> 00:31:39,760
Speaker 4: you know, looking at it going let's take away from

700
00:31:39,800 --> 00:31:42,520
Speaker 4: Beck like and I think a lot of people when

701
00:31:42,520 --> 00:31:46,120
Speaker 4: the budget comes out feel really attacked. And that's not

702
00:31:46,160 --> 00:31:49,400
Speaker 4: necessarily what's happening, but it's to their own. We can

703
00:31:49,440 --> 00:31:52,640
Speaker 4: all have our own opinions. But essentially, the Albanese government

704
00:31:52,680 --> 00:31:55,120
Speaker 4: has said that they're going to deliver get this quote,

705
00:31:55,320 --> 00:32:00,080
Speaker 4: a stronger economy and a fairer society. Ah, I mean whatever.

706
00:32:00,680 --> 00:32:03,640
Speaker 4: That just feels very political and I'm very much of well,

707
00:32:03,640 --> 00:32:05,640
Speaker 4: put your money where your mouth is, mate, weal the walk.

708
00:32:05,640 --> 00:32:07,880
Speaker 4: I don't care about the talk, like, just show me

709
00:32:07,920 --> 00:32:10,240
Speaker 4: what you're going to do. So let's talk about the

710
00:32:10,240 --> 00:32:11,760
Speaker 4: budget a little bit more deeply. Do you want to

711
00:32:11,760 --> 00:32:13,520
Speaker 4: do that or is that too boring? Ah?

712
00:32:13,560 --> 00:32:16,400
Speaker 1: Look, I actually want to know. It probably will be boring,

713
00:32:16,400 --> 00:32:17,240
Speaker 1: but I really want to know.

714
00:32:17,400 --> 00:32:19,880
Speaker 4: Let's like pull out some headlines that I think we

715
00:32:19,960 --> 00:32:24,680
Speaker 4: should converse about. What do you recompects that. So recipients

716
00:32:24,760 --> 00:32:28,040
Speaker 4: of the Commonwealth Rent Assistant, So the CRA, which is

717
00:32:28,080 --> 00:32:31,560
Speaker 4: an existing program which about one point one million low

718
00:32:31,600 --> 00:32:34,520
Speaker 4: income Australians are eligible for, they're going to receive more

719
00:32:34,560 --> 00:32:37,600
Speaker 4: financial support. I think that's really important. So the CRA

720
00:32:37,800 --> 00:32:40,640
Speaker 4: payment is actually going to increase by fifteen percent, and

721
00:32:40,680 --> 00:32:42,920
Speaker 4: in a world where our inflation rate is sitting at

722
00:32:42,960 --> 00:32:45,520
Speaker 4: seven percent, like, that's probably pretty welcome.

723
00:32:46,160 --> 00:32:48,200
Speaker 1: Yeah, definitely, So that's good.

724
00:32:48,360 --> 00:32:51,480
Speaker 4: The government's also going to reward small business owners. They've

725
00:32:51,480 --> 00:32:54,280
Speaker 4: got a number of different financial measures that they're going

726
00:32:54,320 --> 00:32:57,680
Speaker 4: to introduce. So the instant Asset Right of threshold is

727
00:32:57,720 --> 00:33:00,600
Speaker 4: going to be temporarily increased to twenty one thousand dollars

728
00:33:00,680 --> 00:33:03,560
Speaker 4: from the first of July from this year. So that

729
00:33:03,680 --> 00:33:05,640
Speaker 4: means that if you have a small business which.

730
00:33:05,440 --> 00:33:07,680
Speaker 1: Get this peck. I think you'll laugh at this.

731
00:33:08,280 --> 00:33:10,880
Speaker 4: If you have an annual turnover of less than ten

732
00:33:10,920 --> 00:33:14,360
Speaker 4: million dollars. You're a small business, Like, so what what?

733
00:33:14,600 --> 00:33:15,479
Speaker 1: That's literally everyone?

734
00:33:15,560 --> 00:33:17,480
Speaker 4: Well, I just thought that small business would end it

735
00:33:17,600 --> 00:33:20,080
Speaker 4: like a million, but it doesn't. It ends at ten

736
00:33:20,120 --> 00:33:23,720
Speaker 4: million dollars, So twiggle room. Yeah, right, Like imagine being

737
00:33:23,720 --> 00:33:25,720
Speaker 4: like I'm a small business owner and you're earning like

738
00:33:25,880 --> 00:33:27,000
Speaker 4: nine million dollars.

739
00:33:27,040 --> 00:33:28,720
Speaker 1: Like what wow?

740
00:33:28,760 --> 00:33:32,480
Speaker 4: Anyway, unrelatable, But they will be able to instantly deduct

741
00:33:32,560 --> 00:33:35,560
Speaker 4: the entire cost for certain assets that cost less than

742
00:33:35,560 --> 00:33:38,040
Speaker 4: twenty thousand dollars which are first used between the first

743
00:33:38,040 --> 00:33:40,480
Speaker 4: of June twenty twenty three and the thirtieth of June

744
00:33:40,520 --> 00:33:44,120
Speaker 4: twenty twenty four. So the twenty thousand dollars threshold applies

745
00:33:44,160 --> 00:33:46,720
Speaker 4: to each asset. So small businesses can take advantage of

746
00:33:46,760 --> 00:33:50,760
Speaker 4: this measure to buy multiple assets, which is kind of good. Beck,

747
00:33:50,840 --> 00:33:52,600
Speaker 4: and I guess to put that into a little bit

748
00:33:52,640 --> 00:33:55,400
Speaker 4: of perspective for you, Like, let's say you have a

749
00:33:55,440 --> 00:33:58,600
Speaker 4: beauty business and you want to start doing laser Like,

750
00:33:58,680 --> 00:34:01,560
Speaker 4: this will increase my revenue, right, Like having a laser machine.

751
00:34:01,640 --> 00:34:04,000
Speaker 4: If you buy that, you're going to get an instant

752
00:34:04,040 --> 00:34:06,200
Speaker 4: asset right off on that. So like the tax comes

753
00:34:06,240 --> 00:34:09,200
Speaker 4: back to you. So it's actually relatively sexy and can

754
00:34:09,239 --> 00:34:11,480
Speaker 4: be for a lot of businesses worth up to like

755
00:34:11,520 --> 00:34:13,239
Speaker 4: thirty percent of the value.

756
00:34:12,880 --> 00:34:16,040
Speaker 1: Of that item. So that's actually very good.

757
00:34:16,400 --> 00:34:18,600
Speaker 4: So it's not like, oh yeah, instant asset right off

758
00:34:18,600 --> 00:34:20,000
Speaker 4: when you're kind of like, well, what does that mean.

759
00:34:20,040 --> 00:34:22,200
Speaker 4: It means that, like you can write off the tax

760
00:34:22,320 --> 00:34:24,080
Speaker 4: on that item. It doesn't mean you get that whole

761
00:34:24,120 --> 00:34:26,719
Speaker 4: item for free, but like you can write off that

762
00:34:26,960 --> 00:34:29,000
Speaker 4: tax and it's going to put you in a better

763
00:34:29,040 --> 00:34:32,320
Speaker 4: financial position. So instead of, you know, as a business owner,

764
00:34:32,360 --> 00:34:35,319
Speaker 4: we pay thirty percent on tax as a general kind

765
00:34:35,320 --> 00:34:37,600
Speaker 4: of blanket rule. Obviously, there's lots to it, and you

766
00:34:37,640 --> 00:34:39,040
Speaker 4: need to talk to your account and if you're going to,

767
00:34:39,280 --> 00:34:41,640
Speaker 4: you know, take this on, but it's important to understand

768
00:34:41,719 --> 00:34:45,000
Speaker 4: the instant asset right off means you are kind of,

769
00:34:45,400 --> 00:34:47,760
Speaker 4: let's call it, like, in a very basic way, getting

770
00:34:47,760 --> 00:34:50,120
Speaker 4: a really big discount on an asset that you need

771
00:34:50,160 --> 00:34:51,759
Speaker 4: to purchase for your business to grow.

772
00:34:51,840 --> 00:34:55,680
Speaker 1: Gotcha, And you can purchase as many of those under

773
00:34:55,719 --> 00:34:59,000
Speaker 1: twenty thousand dollars assets. Yeah, which is kind of sexy.

774
00:34:59,120 --> 00:35:01,520
Speaker 4: I mean, Okay, there are a lot of people in

775
00:35:01,719 --> 00:35:04,680
Speaker 4: our community who aren't so excited about the instant asset

776
00:35:04,760 --> 00:35:08,120
Speaker 4: right off because this year they're scrapping the instant asset

777
00:35:08,239 --> 00:35:12,080
Speaker 4: right off for cars, So a lot of small business Yeah,

778
00:35:12,120 --> 00:35:14,600
Speaker 4: so it's not completely scrapped, but it goes back down

779
00:35:14,680 --> 00:35:18,239
Speaker 4: to that twenty thousand dollar mark, Whereas right now you

780
00:35:18,280 --> 00:35:21,080
Speaker 4: can ride off a car for up to fifty nine

781
00:35:21,080 --> 00:35:23,759
Speaker 4: thousand dollars each financial year. So that's going to be,

782
00:35:23,840 --> 00:35:25,920
Speaker 4: you know, scrapped on the thirtieth of June. So, I

783
00:35:25,960 --> 00:35:29,080
Speaker 4: mean you're probably not always looking at carsales dot com

784
00:35:29,120 --> 00:35:31,440
Speaker 4: dot U. I'm not either, huh. But it's just an

785
00:35:31,520 --> 00:35:34,600
Speaker 4: interesting thing to talk about because at the moment, lots

786
00:35:34,640 --> 00:35:36,759
Speaker 4: of cars are hard to come by because it's in

787
00:35:36,800 --> 00:35:39,279
Speaker 4: the lead up to June thirty, and lots of small

788
00:35:39,320 --> 00:35:41,680
Speaker 4: business owners are kind of like snapping up the SUV

789
00:35:41,719 --> 00:35:43,719
Speaker 4: they've always wanted to buy, or like snapping up a

790
00:35:43,760 --> 00:35:46,480
Speaker 4: car for their business because their accountant has called them

791
00:35:46,480 --> 00:35:48,759
Speaker 4: and said, hey, Beck, like, if you were planning on

792
00:35:48,800 --> 00:35:51,640
Speaker 4: buying a car, now would be a great time because

793
00:35:51,680 --> 00:35:53,920
Speaker 4: if you buy it after the first of July, like,

794
00:35:54,000 --> 00:35:57,480
Speaker 4: you're not going to get basically sixty thousand dollars tax

795
00:35:57,560 --> 00:35:59,280
Speaker 4: right off. It's going to drop back down to twenty

796
00:35:59,400 --> 00:36:03,560
Speaker 4: and obviously that's pretty attractive. So lots of cars are

797
00:36:03,600 --> 00:36:06,200
Speaker 4: off the market. So I don't know what you'd call him,

798
00:36:06,280 --> 00:36:09,280
Speaker 4: my brother in law. Like my sister's partner's currently looking

799
00:36:09,400 --> 00:36:10,560
Speaker 4: for a car, let's.

800
00:36:10,400 --> 00:36:11,120
Speaker 1: Call him brother in law.

801
00:36:11,160 --> 00:36:13,719
Speaker 4: He's probably not rather alike, but sorry, Alex, like they're

802
00:36:13,760 --> 00:36:17,560
Speaker 4: not married, but that's okay, Like I'm manifesting and manifesting anyway.

803
00:36:17,960 --> 00:36:20,040
Speaker 4: They were looking for an amok, which is like a

804
00:36:20,080 --> 00:36:23,040
Speaker 4: big training car, not one left in the country. Really

805
00:36:23,160 --> 00:36:27,160
Speaker 4: not why you can't get it before June thirty. It's

806
00:36:27,239 --> 00:36:29,319
Speaker 4: just interesting to see how those things work because you

807
00:36:29,320 --> 00:36:31,040
Speaker 4: wouldn't think about it. But if you've been looking for

808
00:36:31,080 --> 00:36:33,680
Speaker 4: a family car and you just can't seem to find one,

809
00:36:33,840 --> 00:36:36,000
Speaker 4: my friends, that's because all the small business owners have

810
00:36:36,040 --> 00:36:36,880
Speaker 4: already gotten on it.

811
00:36:37,040 --> 00:36:38,880
Speaker 1: I think this is probably like a tax question, but

812
00:36:39,239 --> 00:36:41,280
Speaker 1: one for the taxman. I should say a tax woman.

813
00:36:41,560 --> 00:36:44,600
Speaker 1: If you tax persons, I'm sorry, I should say a

814
00:36:44,640 --> 00:36:46,759
Speaker 1: tax person. So if it's under twenty thousand dollars, I'm

815
00:36:46,800 --> 00:36:49,480
Speaker 1: assuming because it has to be like new from the

816
00:36:49,520 --> 00:36:52,080
Speaker 1: first of July. You can't get a secondhand car. I'm

817
00:36:52,120 --> 00:36:53,400
Speaker 1: assuming is that right.

818
00:36:53,200 --> 00:36:55,200
Speaker 4: You need to talk to the taxman, because I think

819
00:36:55,200 --> 00:36:57,960
Speaker 4: it depends on that, yeah, or the person or whatever

820
00:36:57,960 --> 00:36:58,359
Speaker 4: we're doing.

821
00:36:58,400 --> 00:36:59,719
Speaker 1: Like, I'm just trying to do the right thing.

822
00:37:00,760 --> 00:37:03,080
Speaker 4: I'm just trying to answer the question exactly the same.

823
00:37:03,120 --> 00:37:05,560
Speaker 4: Oh my gosh, I just doing my best, okay, and

824
00:37:05,600 --> 00:37:07,640
Speaker 4: so even it's my best should be enough.

825
00:37:08,200 --> 00:37:11,200
Speaker 1: Like oh if I talk to the tax people, Yes.

826
00:37:11,320 --> 00:37:13,160
Speaker 4: It depends because I think that there's a lot of

827
00:37:13,200 --> 00:37:15,560
Speaker 4: semantics in it about you know, how old it is

828
00:37:15,600 --> 00:37:18,120
Speaker 4: and what that means and how that works. Because I

829
00:37:18,160 --> 00:37:20,640
Speaker 4: have bought a car before in our business and been

830
00:37:20,680 --> 00:37:22,560
Speaker 4: able to write it. Often it was secondhand, and I'm

831
00:37:22,640 --> 00:37:25,680
Speaker 4: very big as an advocate I suppose of buying secondhand

832
00:37:25,719 --> 00:37:27,719
Speaker 4: cars because like brand new cars lose a lot of

833
00:37:27,760 --> 00:37:30,080
Speaker 4: their value. And I'm you know, I'm a money gal.

834
00:37:30,400 --> 00:37:32,239
Speaker 4: So I think have a chat with your accountant and

835
00:37:32,320 --> 00:37:35,000
Speaker 4: they can give you the specifics. Obviously this is not

836
00:37:35,040 --> 00:37:37,719
Speaker 4: a tax planning episode. I just think it fits into

837
00:37:37,760 --> 00:37:40,560
Speaker 4: this conversation nicely. And as you guys know, I love

838
00:37:40,600 --> 00:37:42,839
Speaker 4: a bit of context, like I love being able to go, oh,

839
00:37:42,920 --> 00:37:43,800
Speaker 4: did you know this?

840
00:37:43,800 --> 00:37:45,879
Speaker 1: This and this? And there's no I'm a Rocks.

841
00:37:45,640 --> 00:37:48,120
Speaker 4: Left I have no intention of ever buying an Ammarok,

842
00:37:48,239 --> 00:37:49,879
Speaker 4: but I feel smart at knowing that.

843
00:37:49,800 --> 00:37:50,880
Speaker 1: You know, yeah, same.

844
00:37:51,120 --> 00:37:53,120
Speaker 4: We're going to stop talking about the tax side of

845
00:37:53,120 --> 00:37:55,719
Speaker 4: things very shortly because I actually am planning to do

846
00:37:55,800 --> 00:37:58,799
Speaker 4: an entire tax planning episode really soon, because it's coming

847
00:37:58,840 --> 00:38:00,200
Speaker 4: up to tax time and I want to make sure

848
00:38:00,200 --> 00:38:00,680
Speaker 4: that we're in the.

849
00:38:00,600 --> 00:38:01,640
Speaker 1: Best possible position.

850
00:38:01,840 --> 00:38:02,040
Speaker 2: Beck.

851
00:38:02,239 --> 00:38:06,680
Speaker 4: Yes, small to medium sized businesses, so obviously medium are

852
00:38:06,680 --> 00:38:08,880
Speaker 4: going to be more than ten million dollars worth of turnover.

853
00:38:09,160 --> 00:38:13,520
Speaker 4: Wild congratulations. But these businesses and I like this are

854
00:38:13,520 --> 00:38:16,840
Speaker 4: going to be encouraged to buy energy efficient fridges, electric

855
00:38:16,880 --> 00:38:20,800
Speaker 4: cooling systems, batteries and other assets that to quote, support

856
00:38:20,840 --> 00:38:23,600
Speaker 4: electrification and more efficient use of energy.

857
00:38:23,840 --> 00:38:24,279
Speaker 1: Very good.

858
00:38:24,320 --> 00:38:27,120
Speaker 4: So companies with a turnover of less than fifty million

859
00:38:27,200 --> 00:38:31,000
Speaker 4: dollars unrelatable content will be able to deduct an additional

860
00:38:31,120 --> 00:38:34,440
Speaker 4: twenty percent of the cost of depreciating assets that are

861
00:38:34,440 --> 00:38:39,560
Speaker 4: eligible under the Small Business Energy Incentive measure. That's a mouthful.

862
00:38:39,680 --> 00:38:43,279
Speaker 1: That is a mouthful. What is a depreciating asset an

863
00:38:43,360 --> 00:38:47,560
Speaker 1: asset that you buy and then immediately it loses value?

864
00:38:47,760 --> 00:38:50,719
Speaker 1: Amazing and that happens over time. Check it out? Are

865
00:38:50,760 --> 00:38:53,279
Speaker 1: youshes on the money. Oh my goodness, to me, I

866
00:38:53,280 --> 00:38:54,839
Speaker 1: could pretty much just take over from this point.

867
00:38:54,840 --> 00:38:56,560
Speaker 4: But I think it's important to talk about that, right

868
00:38:56,600 --> 00:38:59,759
Speaker 4: because when we talk about instant asset ride offs, that

869
00:38:59,800 --> 00:39:03,320
Speaker 4: means that you're claiming one hundred percent of that depreciation

870
00:39:03,600 --> 00:39:06,800
Speaker 4: in one financial year. If you do that, you can't

871
00:39:06,800 --> 00:39:09,919
Speaker 4: claim it over subsequent years. But each and every single year,

872
00:39:09,960 --> 00:39:12,560
Speaker 4: your asset will decrease in value and at some point

873
00:39:12,600 --> 00:39:15,000
Speaker 4: it kind of becomes zero and you can no longer

874
00:39:15,000 --> 00:39:17,880
Speaker 4: claim it because it's not endless, and that asset essentially

875
00:39:18,000 --> 00:39:21,920
Speaker 4: isn't worth much anymore. Right, So it's important to understand

876
00:39:22,120 --> 00:39:24,400
Speaker 4: that over time. If you, as a business buy an

877
00:39:24,400 --> 00:39:27,919
Speaker 4: air conditioner, it's a two thousand dollar air conditioner. Next year,

878
00:39:28,239 --> 00:39:30,799
Speaker 4: technically to the business it might be worth eighteen hundred dollars,

879
00:39:30,880 --> 00:39:32,319
Speaker 4: and the year after that and the year after that

880
00:39:32,480 --> 00:39:34,640
Speaker 4: just decreases and decreases, and then it might be worth

881
00:39:34,640 --> 00:39:37,400
Speaker 4: absolutely nothing because it's a thirty year old air conditioner.

882
00:39:37,520 --> 00:39:39,680
Speaker 4: You know, no one's going to pay full price for that,

883
00:39:40,080 --> 00:39:43,520
Speaker 4: So the taxman builds that in because otherwise, if your

884
00:39:43,560 --> 00:39:46,960
Speaker 4: assets didn't depreciate over time, beck you'd end up buying

885
00:39:46,960 --> 00:39:49,359
Speaker 4: a two thousand dollar air conditioner, and then that adds

886
00:39:49,440 --> 00:39:52,000
Speaker 4: two thousand dollars to the value of your business. And

887
00:39:52,040 --> 00:39:53,600
Speaker 4: then in a couple of years you might buy a

888
00:39:53,640 --> 00:39:56,040
Speaker 4: few more things, and then you have this business that's

889
00:39:56,160 --> 00:39:59,680
Speaker 4: valued at like, you know, one hundred thousand dollars when

890
00:39:59,680 --> 00:40:01,920
Speaker 4: you I don't actually have one hundred thousand dollars worth

891
00:40:01,960 --> 00:40:04,759
Speaker 4: of assets you could recover. Does that make sense? So,

892
00:40:04,840 --> 00:40:07,080
Speaker 4: like I couldn't sell those things for one hundred grand.

893
00:40:07,200 --> 00:40:09,640
Speaker 4: So the taxman's like, let's just be reasonable about this

894
00:40:10,080 --> 00:40:13,120
Speaker 4: and actually claim what you're losing on those assets, which

895
00:40:13,160 --> 00:40:14,000
Speaker 4: is quite helpful.

896
00:40:14,360 --> 00:40:17,360
Speaker 1: Yes, okay, that is helpful and very kind. You should

897
00:40:17,400 --> 00:40:20,960
Speaker 1: just call the tax people kind. Okay, weird.

898
00:40:21,360 --> 00:40:23,919
Speaker 4: Look, I love the tax people. Let's leave it there.

899
00:40:24,040 --> 00:40:26,080
Speaker 4: Ok Let's leave it just in case they come for us.

900
00:40:26,120 --> 00:40:28,239
Speaker 1: All right, let's move on from small businesses.

901
00:40:28,360 --> 00:40:31,439
Speaker 4: So base rates of supportive payments, so things like job

902
00:40:31,480 --> 00:40:34,319
Speaker 4: seeker and Youth Allowance and the Partnered Parenting payment and

903
00:40:34,480 --> 00:40:37,239
Speaker 4: OZ study is going to rise by forty dollars a

904
00:40:37,280 --> 00:40:40,640
Speaker 4: fortnite from the twentieth of September. So there's been a

905
00:40:40,719 --> 00:40:44,600
Speaker 4: bit of, like, I guess, backlash from that because forty bucks.

906
00:40:44,400 --> 00:40:46,520
Speaker 1: Beec it's not really going to get you much.

907
00:40:46,600 --> 00:40:49,280
Speaker 4: Yeah, I feel like on job seeker or youth allowance

908
00:40:49,360 --> 00:40:51,960
Speaker 4: or your parent or like you're doing or study, Like

909
00:40:52,040 --> 00:40:54,560
Speaker 4: forty bucks, what's that going to get you nowadays?

910
00:40:54,640 --> 00:40:56,759
Speaker 1: Literally? Not that much? Not that much.

911
00:40:56,880 --> 00:40:59,239
Speaker 4: Like I feel like nowadays, you go to the supermarket

912
00:40:59,280 --> 00:41:01,640
Speaker 4: with a fifty dollars crisp note and you're like, that's

913
00:41:01,640 --> 00:41:03,760
Speaker 4: so much money, and then you get like two things

914
00:41:03,800 --> 00:41:06,600
Speaker 4: and you're like, where did this money go? So I

915
00:41:06,640 --> 00:41:09,480
Speaker 4: feel like that was a bit low. Obviously there's lots

916
00:41:09,520 --> 00:41:12,120
Speaker 4: of like maths and analysis behind this, and they feel

917
00:41:12,120 --> 00:41:14,480
Speaker 4: like that's sufficient, but there's obviously a fair bit of

918
00:41:14,480 --> 00:41:17,400
Speaker 4: backlash because they do deserve more. Like, if you're in

919
00:41:17,400 --> 00:41:21,600
Speaker 4: that situation, forty bucks in a rising inflation environment, not

920
00:41:21,640 --> 00:41:24,239
Speaker 4: going to do all that much, mate, not enough exactly.

921
00:41:24,320 --> 00:41:28,000
Speaker 4: So the government will spend three billion dollars on direct

922
00:41:28,040 --> 00:41:31,359
Speaker 4: bill relief, So that's quite sexy, co funded with state

923
00:41:31,440 --> 00:41:35,719
Speaker 4: governments to eligible households including pensioners, senior healthcare card holders,

924
00:41:35,840 --> 00:41:39,600
Speaker 4: and family Tax Benefit A and B recipients. So the

925
00:41:39,640 --> 00:41:42,480
Speaker 4: government claims more than five million households are going to

926
00:41:42,520 --> 00:41:45,000
Speaker 4: have up to five hundred dollars deducted from their power

927
00:41:45,040 --> 00:41:48,880
Speaker 4: bill next financial year. Oh that's a big deal. I

928
00:41:48,920 --> 00:41:51,920
Speaker 4: think that's pretty good, especially for people who you know,

929
00:41:52,120 --> 00:41:54,480
Speaker 4: if you're a pensioner or you have a senior healthcare

930
00:41:54,480 --> 00:41:57,280
Speaker 4: card holder, like you're going to need that type of relief,

931
00:41:57,280 --> 00:41:58,640
Speaker 4: and I'm sure that that will take a bit of

932
00:41:58,680 --> 00:42:02,200
Speaker 4: pressure off. Like energy these days is so expensive, and

933
00:42:02,239 --> 00:42:05,280
Speaker 4: we already know that, Like, let's be honest, let's stereotype

934
00:42:05,320 --> 00:42:07,600
Speaker 4: for a hot second here, my nanna never turns her

935
00:42:07,600 --> 00:42:10,080
Speaker 4: heater on, like she wants to be warm all the time.

936
00:42:10,280 --> 00:42:13,120
Speaker 4: I sear only one room in her house is ever heated,

937
00:42:13,520 --> 00:42:16,120
Speaker 4: and they're already so careful about these things. So I

938
00:42:16,160 --> 00:42:17,880
Speaker 4: think that that might take a little bit of pressure

939
00:42:17,880 --> 00:42:21,719
Speaker 4: off the people who you know, aren't doing incredibly financially

940
00:42:21,840 --> 00:42:24,800
Speaker 4: but still deserve to have that relief because look, honestly,

941
00:42:24,840 --> 00:42:26,160
Speaker 4: it's a basic human rash.

942
00:42:26,280 --> 00:42:27,080
Speaker 1: Yeah, all right.

943
00:42:27,160 --> 00:42:29,440
Speaker 4: Next up, we have single parents. They're going to be

944
00:42:29,520 --> 00:42:33,320
Speaker 4: able to claim the single parenting payment until their youngest.

945
00:42:33,080 --> 00:42:35,160
Speaker 1: Child turns fourteen.

946
00:42:35,200 --> 00:42:37,760
Speaker 4: Whereas the old age used to be eight years old.

947
00:42:37,840 --> 00:42:40,680
Speaker 4: So that's a significant jump in age, and I think

948
00:42:40,719 --> 00:42:41,000
Speaker 4: that that.

949
00:42:40,960 --> 00:42:42,640
Speaker 1: Will be really helpful.

950
00:42:42,719 --> 00:42:45,759
Speaker 4: And they plan to triple the bulk billing incentive that

951
00:42:45,840 --> 00:42:49,280
Speaker 4: GPS receive, meaning it there'll be more common consultation types

952
00:42:49,320 --> 00:42:52,080
Speaker 4: which doctors can choose to bulk bill for, which I

953
00:42:52,080 --> 00:42:54,520
Speaker 4: think is really sexy. I know doctors and I've been

954
00:42:54,520 --> 00:42:57,319
Speaker 4: having this conversation recently, and they're like, look, that's not

955
00:42:57,400 --> 00:42:59,279
Speaker 4: actually going to do as much as you think it is.

956
00:42:59,440 --> 00:43:01,440
Speaker 4: And I think, you know, let's take all of that

957
00:43:01,480 --> 00:43:03,160
Speaker 4: with a grain of salt. I think that the government

958
00:43:03,239 --> 00:43:06,520
Speaker 4: stepping in to kind of triple the bulk billing incentive

959
00:43:06,680 --> 00:43:09,400
Speaker 4: is good, but there's obviously a lot of other pressures

960
00:43:09,440 --> 00:43:12,840
Speaker 4: on doctors to be able to bulk bill and actually

961
00:43:12,920 --> 00:43:14,960
Speaker 4: be able to afford it, because they're paying like rent,

962
00:43:14,960 --> 00:43:17,240
Speaker 4: and they're paying you know, their nurses, and they're paying

963
00:43:17,320 --> 00:43:19,680
Speaker 4: everything else, and they're in the firing line for the

964
00:43:19,680 --> 00:43:21,759
Speaker 4: cost of living crisis as much as we are. And

965
00:43:21,800 --> 00:43:23,880
Speaker 4: I'm not saying that they're not doing well financially, like

966
00:43:23,920 --> 00:43:26,360
Speaker 4: if you're a doctor, you probably have a relatively good income.

967
00:43:26,719 --> 00:43:29,759
Speaker 4: As a stereotyping thing, but I think it's worthy of

968
00:43:29,960 --> 00:43:32,080
Speaker 4: mention because I think a lot of gps are going

969
00:43:32,120 --> 00:43:34,000
Speaker 4: to go v like, that's not going to fix it.

970
00:43:34,040 --> 00:43:36,520
Speaker 4: Like everything's not going to go back to being bulk billed.

971
00:43:36,800 --> 00:43:39,040
Speaker 4: But that's how government trying to take a little bit

972
00:43:39,040 --> 00:43:42,960
Speaker 4: of pressure off that system. So hopefully things can be

973
00:43:43,000 --> 00:43:45,000
Speaker 4: a bit easier for the people who need it to

974
00:43:45,040 --> 00:43:47,920
Speaker 4: be easier. And I think that that's yeah, probably a

975
00:43:47,920 --> 00:43:48,880
Speaker 4: good place to leave it.

976
00:43:48,920 --> 00:43:53,600
Speaker 1: My friend, sounds pretty good. You reckon, Let's go absorb

977
00:43:53,640 --> 00:43:56,719
Speaker 1: it and see you guys soon, See you guys next week.

978
00:44:03,239 --> 00:44:05,760
Speaker 4: The advice shared on She's on the Money is general

979
00:44:05,840 --> 00:44:09,680
Speaker 4: in nature and does not consider your individual circumstances. She's

980
00:44:09,719 --> 00:44:13,120
Speaker 4: on the Money exists purely for educational purposes and should

981
00:44:13,200 --> 00:44:16,400
Speaker 4: not be relied upon to make an investment or financial decision.

982
00:44:16,760 --> 00:44:19,200
Speaker 4: If you do choose to buy a financial product, read

983
00:44:19,239 --> 00:44:22,560
Speaker 4: the PDS TMD and obtain appropriate financial.

984
00:44:22,160 --> 00:44:23,960
Speaker 1: Advice tailored towards your needs.

985
00:44:24,280 --> 00:44:28,240
Speaker 4: Victoria Divine and She's on the Money are authorized representatives

986
00:44:28,280 --> 00:44:32,399
Speaker 4: of Money Sherper Pty Ltd ABN three two one six

987
00:44:32,480 --> 00:44:36,359
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988
00:44:36,440 --> 00:44:40,080
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