Speaker 1: Hello.
Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the
Speaker 2: Order Kerney Whoalbury and a waddery woman. And before we
Speaker 2: get started on She's on the Money podcast, I would
Speaker 2: like to acknowledge the traditional custodians of the land of
Speaker 2: which this podcast is recorded on a wondery country, acknowledging
Speaker 2: the elders, the ancestors and the next generation coming through
Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and
Speaker 2: the storytelling of you to make a difference for today
Speaker 2: and lasting impact for tomorrow.
Speaker 1: Let's get into it.
Speaker 3: She's on the Money. She's on the Money.
Speaker 4: Hello, and welcome to She's on the Money podcast for
Speaker 4: millennials who want financial freedom. Hello, Victoria Divine.
Speaker 1: Oh that's so formal of you, because last week, what'd
Speaker 1: you call me last week?
Speaker 4: Vicky D No I knew you would calling onto that.
Speaker 1: Yeah, I'm trying to think grudge. If anybody has a
Speaker 1: good nickname that I can call beck, that's like not rude,
Speaker 1: but also it's not that great.
Speaker 4: Let me know, I'm very keen to see what people
Speaker 4: come up.
Speaker 1: Am I really?
Speaker 4: Okay? So vickid Sorry, I'm going to stop doing that.
Speaker 4: This is just the last one I want to throw
Speaker 4: in there. But today we are talking about the quarterly
Speaker 4: market update, which.
Speaker 1: I'd be very excited about it. I'm going to be.
Speaker 4: I'm so excited. So I guess we'll find out what's
Speaker 4: on special at the local stom No, no, no, no.
Speaker 1: We are going to be talking about something sadly far
Speaker 1: more boring and farther reaching. I mean, it does affect
Speaker 1: the cost of things in your basket at Audi, Like
Speaker 1: Audi don't even have baskets, so that was a terrible analogy,
Speaker 1: but it does affect the cost of food. We are
Speaker 1: going to be discussing what's happening in the economy right now,
Speaker 1: beck and what's going on in our community. Because I
Speaker 1: sat back a couple of weeks ago and one of
Speaker 1: my favorite emails to read as an ex financial advisor
Speaker 1: are the market update emails. And I'm still subscribed to
Speaker 1: all of these. If you are one of the research
Speaker 1: houses that still sends me market updates, please don't stop
Speaker 1: just because you heard that I wasn't an advisor anymore.
Speaker 1: I get a lot out of them, but they are
Speaker 1: arguably some of the driest publications on the entire planet, right,
Speaker 1: Like we're talking about share prices and what's gone up
Speaker 1: and what's gone down, and what CEO has switched with
Speaker 1: another CEO and the backgrounds of that CEO and where
Speaker 1: they've come from. Like it's honestly, they're dry.
Speaker 4: That's brutal.
Speaker 1: I like it because it's kind of like I already
Speaker 1: have that base understanding of what's going on with that company.
Speaker 1: But anybody reading it would be like, what is this victorial?
Speaker 1: Why are you excited about it? But what I like
Speaker 1: about it is that it keeps my finger on the pulse,
Speaker 1: Like I know what's going on, I know how it's
Speaker 1: going to work, but I figured what we can start
Speaker 1: doing on cheese on the money is like a non
Speaker 1: boring version of a quarterly market update. I tell you,
Speaker 1: like what's been going on in the last few months
Speaker 1: when it comes to economics and politics and how it
Speaker 1: all kind of impacts the bottom line. So what does
Speaker 1: this mean for you? A lot of things. So if
Speaker 1: you're a shareholder, it's going to be impacting your share price.
Speaker 1: But if you're back and you're not investing yet, it's
Speaker 1: going to impact how much your groceries are. It's going
Speaker 1: to impact. You know what your community is saying. It's
Speaker 1: going to be impacting political decisions that you make. And
Speaker 1: I just think all of us need to be more
Speaker 1: educated on this. But until now, the content has been
Speaker 1: really dry and really boring. And to be honest, I'm
Speaker 1: not going to wake up at six am to get
Speaker 1: the market updates on ABC News. Love you ABC probably
Speaker 1: the wrong demographic that we're speaking to, right, absolutely, well,
Speaker 1: I'm interested to see how you make this not boring.
Speaker 4: But it's just going to be the tone of voice.
Speaker 4: It's just going to be tone of voice.
Speaker 1: It's just going to be tone of voice, content around
Speaker 1: excited about it and what happens when you're excited and
Speaker 1: also really confident about something because people believe you.
Speaker 4: Yeah, absolutely, she's going to trojanhorse us everyone.
Speaker 1: It's basically like gas lighting people with tone of voice
Speaker 1: into thinking finance and economics is cool.
Speaker 4: So I feel like everyone has been pretty anxious in
Speaker 4: the community as interest rates are so much higher, Inflation
Speaker 4: is hectic, and we talk about it every week, so we.
Speaker 1: Do we do. I feel like there's a vibe in
Speaker 1: the community that is, you know, I love you all.
Speaker 1: Please don't take this negatively, but I feel like everyone's
Speaker 1: being a little bit negative at the moment, and I
Speaker 1: feel like that's being perpetuated by media, and it does
Speaker 1: make you feel like trash when every second day we're
Speaker 1: hearing that our mortgages are going to cost us more
Speaker 1: and it's harder to get into property because the cash
Speaker 1: rate has increased again, and it just it feels bad
Speaker 1: when we hear the inflation is at seven point one percent,
Speaker 1: and then you have a chat with your employer and
Speaker 1: they're like, oh, bet, here's it, and I mean, this
Speaker 1: hasn't actually happened to you, so disclaimer, but like, oh bet,
Speaker 1: you're getting a two percent pay rise and you should
Speaker 1: be grateful for that. Like we're all just a little
Speaker 1: bit pissed right Like we're not happy about the economic
Speaker 1: circumstances at the moment. But I think something that can
Speaker 1: help us is understanding it. I'm not saying don't be mad.
Speaker 1: You can add absolutely be mad. But what we need
Speaker 1: to remember is the economics goes in ebbs and flows.
Speaker 1: There are going to be highs in economics and there
Speaker 1: are going to be lows in economics, and right now
Speaker 1: we're kind of going through a little bit of a low.
Speaker 1: It does feel a bit trashy, but there are also
Speaker 1: going to be times where the economy is absolutely booming
Speaker 1: and you're killing it. I'm killing it, and we're investing
Speaker 1: well and we're just having the best time. But at
Speaker 1: the moment, we're just in this circumstance where it is
Speaker 1: on the downturn. We don't know when it's going to
Speaker 1: turn back up. We can listen to a lot of
Speaker 1: smart people talk a lot of smart junk about it,
Speaker 1: but ultimately nobody can predict the future. We do think
Speaker 1: it's going to go up relatively soon, we do think,
Speaker 1: and a lot of educated people say that, you know,
Speaker 1: the recession is heading for us, but it's probably not
Speaker 1: going to be as bad as we're anticipating. But what
Speaker 1: does that all mean? And I guess that's why we're
Speaker 1: having this conversation today, V.
Speaker 4: When we talk about quarterly market update, I'm wondering what
Speaker 4: is a quarter like? How does that work? And what
Speaker 4: quarter are we in?
Speaker 1: Good question, So when we say quarterly market update, the
Speaker 1: twelve months of the year are broken down into four
Speaker 1: segments of three months each, and there's a few different
Speaker 1: ways of looking at it. We could either be in
Speaker 1: Q two or Q four right now, So we're in
Speaker 1: for a calendar year Q two, So quarter two we've
Speaker 1: had January, February, March, so that was Q one. April
Speaker 1: May and June is Q two. But in terms of
Speaker 1: the financial year, which is what we're going to reference
Speaker 1: right now, we're in Q four. So Q four is
Speaker 1: because the end of financial year here in Australia ends
Speaker 1: on the thirtieth of June, and so a lot of businesses,
Speaker 1: a lot of economists, we're all working towards this end
Speaker 1: of financial year. Also my birthday, so I like to
Speaker 1: think that it's really fancy, but it's one of those
Speaker 1: things where you might hear Q two or you might
Speaker 1: hear Q four. But in the finance world, we're currently
Speaker 1: in Q four because the end of financial year is
Speaker 1: on June thirty, so we're currently in the midst of that.
Speaker 1: And that's why a lot of people right now are
Speaker 1: talking about inflation because on the thirtieth of June, that's
Speaker 1: when things are going to be locked in. We're talking
Speaker 1: about HEX because the CPI and inflation on HEX is
Speaker 1: going to be locked in before the end of the
Speaker 1: financial year to make sure that the ATO calculates things. Well,
Speaker 1: there's a lot of things that are going to be
Speaker 1: wrapping up on June thirty, which means our community needs
Speaker 1: to be privy to it. But that's why I think
Speaker 1: we'll focus on Q four instead.
Speaker 4: Right, Okay, so what is currently happening right now for
Speaker 4: our community?
Speaker 1: First things first, let's talk about employment rates. I feel
Speaker 1: like Korea is a topic that we need to be
Speaker 1: really talking about, and I think it impacts most people
Speaker 1: in our community because they are either employed, looking to
Speaker 1: be employed, or are planning to be employed in the future.
Speaker 1: So employment rates are at record lows. So this is
Speaker 1: a good thing. Of three point five percent. This means
Speaker 1: that it is a job seekers market. The need for
Speaker 1: new staff and employees in areas like hospitality and tourism
Speaker 1: and manufacturing and mining, healthcare, social work, trades and services
Speaker 1: has increased, which is a really good thing for the
Speaker 1: environment as a whole. As you can imagine if we
Speaker 1: give as much context here as possible. We went through COVID, right,
Speaker 1: and COVID was a period of significant economic downto our
Speaker 1: government carried us for a serious period of time that
Speaker 1: was really nice, so we didn't feel the brunt of it.
Speaker 1: While heaps of us weren't working, but areas like hospitality, tourism, mining,
Speaker 1: health yat they were hit really hard by that period
Speaker 1: of time and then straight after COVID like they weren't
Speaker 1: recovering very quickly, Like how many cafes did we see
Speaker 1: closing down? And there weren't that many hostbow jobs going around.
Speaker 1: And to be honest, after COVID, people were really apprehensive
Speaker 1: about going back to roles that were quite people facing,
Speaker 1: so they didn't really want to do them because they
Speaker 1: thought that there was a lot of risk. And now
Speaker 1: it has been announced by the WHO, So the World
Speaker 1: Health Organization has announced that we're no longer in a pandemic,
Speaker 1: which is really really cool, and I think that a
Speaker 1: lot of us are feeling that pressure release. I don't
Speaker 1: think that it was the announcement that felt like the
Speaker 1: pressure was releasing. I think we just started getting back
Speaker 1: to this new normal, you could say, and now we're
Speaker 1: confident enough to take up hospbow jobs and working tourism.
Speaker 1: All of that is starting to pick up, which means
Speaker 1: that the economy is basically operating above its full capacity
Speaker 1: and there's downwards pressure on inflation, which for US is
Speaker 1: actually really good. So that cash rate is going to
Speaker 1: come down because employment rates are at a record low.
Speaker 4: Okay, So is this amazing news or is there any downside?
Speaker 1: Look, it's pretty good news. At the end of the day.
Speaker 1: We actually want unemployment rates to be at a record
Speaker 1: low because it basically means more people have more jobs,
Speaker 1: and we want more people to be in more employment
Speaker 1: because the more people that are working, the more money
Speaker 1: is going through our economy, and the more money that
Speaker 1: goes through our economy, the healthier we are. Right, So
Speaker 1: is it a good thing? Absolutely it is. Beck There's
Speaker 1: never going to be a period of time where it's
Speaker 1: a zero percent unemployment rate where absolutely everyone in the
Speaker 1: economy has a job, and that's okay. But what you
Speaker 1: want to see is that on the lower side during
Speaker 1: COVID that obviously peaked and that wasn't good, which meant
Speaker 1: that we are now in the economic circumstances that we
Speaker 1: are in today. Ultimately, we are in this period right
Speaker 1: now where inflation is really high. So we know that
Speaker 1: inflation is at seven point one percent and everything is
Speaker 1: so much more expensive due to inflation. So in regards
Speaker 1: to wages and income in the December quarter, in twenty
Speaker 1: twenty two the seasonally adjusted WPI, which sounds really fancy
Speaker 1: because beck, did you know if you use acronyms, it
Speaker 1: actually makes you more intelligent? I have heard, Yeah, I heard.
Speaker 1: So it's actually just the wage price index, so it's
Speaker 1: not that sexy, but finance bros will throw around the
Speaker 1: acronyms to make you feel silly, and then if you
Speaker 1: feel silly, you assume they're smarter than you. Right, it's
Speaker 1: not the case at all, but the WPI, so the
Speaker 1: wage price index actually measures changes in the price of labor,
Speaker 1: so whether labour's cheaper or more expensive. And we know
Speaker 1: because of the conversations that our community has been having
Speaker 1: and I've been having because as you guys know, I've
Speaker 1: been renovating house. So this is probably a good example
Speaker 1: of WPI being high. It was so expensive to get
Speaker 1: trade's because they weren't that many of them, so they
Speaker 1: could charge a premium, so the WPI in construction was
Speaker 1: much higher. I think a lot of us can understand that,
Speaker 1: and that makes a lot of sense. But in the
Speaker 1: December quarter twenty twenty two, WPI rose by zero point
Speaker 1: eight percent in this quarter and three point three percent
Speaker 1: over this year that is actually relatively high the private sector,
Speaker 1: so like private businesses rose zero point eight percent and
Speaker 1: the public sector rose by zero point seven percent, so
Speaker 1: relatively on par Australia's minimum wage for an adult is
Speaker 1: currently sitting at twenty one dollars and thirty eight cents
Speaker 1: per hour. This is before tax, or eight hundred and
Speaker 1: twelve dollars and sixty cents for thirty eight hour work week.
Speaker 1: And to I guess put this into a little bit
Speaker 1: of context, the wage price index actually defines an adult
Speaker 1: as anyone over the age of twenty one, not eighteen,
Speaker 1: So it's not taking into consideration those people who are
Speaker 1: kind of like just settling into work. It's actually like
Speaker 1: the more settled individuals in our community, which is just
Speaker 1: interesting to know.
Speaker 4: That is very interesting, And I think this is a
Speaker 4: really good time to take it, quick break, absorb everything,
Speaker 4: and come back on the other side.
Speaker 1: All right, let's do it.
Speaker 4: Let's do it.
Speaker 1: All right, we are back, Beck, Are you excited about
Speaker 1: this topic yet?
Speaker 4: Look, I'm getting there. It's starting to make sense to me,
Speaker 4: so I'm slowly getting excited. What is happening in the
Speaker 4: economy right now?
Speaker 1: All right, I will answer that question, But how many
Speaker 1: people do you think actually gave any care to what
Speaker 1: the RBA was doing and what they did in their
Speaker 1: meetings each and every single month until maybe like midyear
Speaker 1: last year.
Speaker 4: I know I didn't care.
Speaker 1: You still probably don't care, to be honest, I know
Speaker 1: you well enough now. But the RBA is the Reserve
Speaker 1: Bank of Australia, right and their job is to make
Speaker 1: sure that inflation doesn't spiral out of control for us,
Speaker 1: to make sure that cash is always accessible and that
Speaker 1: they're doing the right thing right. But essentially nobody cared
Speaker 1: about it until it was really really impacting our bottom lines.
Speaker 1: They were just bobbing along having a good day. Like
Speaker 1: they'd probably put their little press releases out and outlets
Speaker 1: it'd be like, yeah, cool, thanks, but we have a
Speaker 1: busy news day, like we're probably not going to be
Speaker 1: able to talk about the RBA, and they're like, yeah, no,
Speaker 1: where is no worries. And then when stuff started to
Speaker 1: hit the fan, they're putting out their press releases and
Speaker 1: every single media outlet's like, oh my god, can you
Speaker 1: get the RBA's media release. Let's see what's going like
Speaker 1: we are watching it like hawks. I have always watched
Speaker 1: it like a hawk because I'm always interested in it.
Speaker 1: But now everybody kind of knows that they meet at
Speaker 1: around eleven am every day, and you know that there's
Speaker 1: going to be an announcement after that, and I just
Speaker 1: wait for this, like I'm so excited about it. Right,
Speaker 1: But so many people are now waiting on the results
Speaker 1: of their monthly meetings with absolutely baited breath to see
Speaker 1: how much they have increased interest rates to counter inflation. Right,
Speaker 1: and we know that over time this is actually going
Speaker 1: to start declining, which is really good. I do foresee
Speaker 1: it going up a few more times. I'm really sorry.
Speaker 1: It's not just me saying this, like me saying this
Speaker 1: because it makes sense to me. But also according to
Speaker 1: leading economists in Australia and the Central Bank, inflation is
Speaker 1: expected to continue rising before the end of the year
Speaker 1: and even further into twenty twenty three before declining back
Speaker 1: down to target range. So target range is between two
Speaker 1: and three percent. Context, we're currently at seven point one
Speaker 1: percent by approximately twenty twenty four, so we'll go back down.
Speaker 1: That's the purpose of increasing the cash rate, because that's
Speaker 1: what it kind of counters. It's kind of like levers right,
Speaker 1: the RBA know that if they pulled the lever of saying,
Speaker 1: all right, Beck, we're going to make cash a little
Speaker 1: bit more expensive, it's actually going to stunt inflation. And
Speaker 1: that's good for us. So as much as it feels
Speaker 1: really trash, it's really good for us in the long term.
Speaker 1: That they're kind of like putting the brakes on a
Speaker 1: little bit and you know, making sure that as an
Speaker 1: economy we are going to be okay, and we'll go
Speaker 1: back to a more reasonable rate of inflation of between
Speaker 1: two and three percent. And ultimately we don't want no inflation.
Speaker 1: That would be bad. That would mean that our economy
Speaker 1: is not doing well enough, it's not growing. We don't
Speaker 1: want too much inflation because look what's happened. We are
Speaker 1: now at seven point one percent, and bet everything's so expensive.
Speaker 1: It's growing too quickly. Our wages aren't keeping up with it.
Speaker 1: The world is an expensive place to live. Our mortgages
Speaker 1: are costing us an armoral egg, like, it's not a
Speaker 1: good place to live. But at two to three percent,
Speaker 1: that's really healthy economic growth. That is a good place
Speaker 1: to be to know that wages are going to increase
Speaker 1: slowly over time. Our exports are going out nicely, they're
Speaker 1: coming in nicely. We've got some good jobs, we've got
Speaker 1: good job growth. Everything is doing well. So we don't
Speaker 1: want no inflation because that means no growth, but we
Speaker 1: want an amount of growth that we can keep up
Speaker 1: with because we can't run this fast. Beck like, I
Speaker 1: can't keep up with seven percent two to three. Yeah,
Speaker 1: that seems like walking pace. I could probably do that.
Speaker 1: Oh yeah, does that make sense?
Speaker 4: Yeah, that does make sense.
Speaker 1: So over the twelve months to the March quarter CPI,
Speaker 1: so consumer price index rows to seven percent. We know
Speaker 1: that already, but that is showing signs that interest rate
Speaker 1: rises are flowing into households and actually dampening consumer demand.
Speaker 1: So that basically means, as interest rates are increasing in households,
Speaker 1: you're starting to make decisions about cutting back on non
Speaker 1: discretionary items. So we're not really going to the movies
Speaker 1: as much, we're not really buying that many discretionary items,
Speaker 1: we're not buying things just because it's fun. We kind
Speaker 1: of cut back and go back a bit to the basics.
Speaker 1: The figure, so we're now at seven point one percent,
Speaker 1: is actually slightly higher than the predicted six point nine percent.
Speaker 1: That analysts and economists were predicting beg but lower than
Speaker 1: the thirty year high of seven point eight percent from
Speaker 1: the December quarter. That's a good thing. Overall prices on
Speaker 1: average rows one point four percent over the March quarter alone.
Speaker 1: And the Australian Bureau of Statistics also released the monthly
Speaker 1: CPI figures, so Consumer Price Index figures for March, which
Speaker 1: came in at six point three percent, which is a fall.
Speaker 1: So it's dropped away a little bit from the annual
Speaker 1: rises of six point eight percent from February and seven
Speaker 1: point four percent for January. So this is a good thing.
Speaker 1: We're seeing it kind of starting to come back. We
Speaker 1: lack this. This is good news. Are you keeping up,
Speaker 1: my friend.
Speaker 4: It's a lot to take in, but I think we're
Speaker 4: getting there.
Speaker 1: I don't expect you to get it immediately, by the way.
Speaker 1: I know that I'm rattling off this stuff, but it's
Speaker 1: one of those things where if this isn't your first language,
Speaker 1: finance is my first language. This is going to go
Speaker 1: straight over your head. Sometimes you just need to literally
Speaker 1: go back a little bit and just listen to it again.
Speaker 1: If it's not making sense to you, it's going to
Speaker 1: be exposure that gets you there. It's not a lack
Speaker 1: of education. You've just never had this language. You've just
Speaker 1: never been communicated like this. It's like learning French and
Speaker 1: you kind of pick up a few words and we're
Speaker 1: talking about dogs and cats, and you might understand, Okay,
Speaker 1: they're talking about a dog and a cat, because I
Speaker 1: absolutely recognize those two words, but the stuff around it
Speaker 1: didn't make sense. Context is going to be key here.
Speaker 1: So if you didn't understand what I'm talking about thus far,
Speaker 1: I get it, sis, I really do. Prior to me
Speaker 1: being a financial advisor, I would have been like, I'm
Speaker 1: turning this podcast off. It makes us no sense. But
Speaker 1: I promise you all of that is going to make
Speaker 1: sense once you go, Okay, I'm over it. I do
Speaker 1: know what CPI is, Okay, I'm over it. I know
Speaker 1: what the Central Bank is. Okay, the RBA makes sense.
Speaker 1: Like all of this stuff, it's just about exposure. Yeah,
Speaker 1: if you're not getting it, it's not because you're silly.
Speaker 1: I promise you are such a smart person. And while
Speaker 1: I say this isn't complicated stuff, it genuinely can sometimes
Speaker 1: feel like I'm speaking another language. Listen to it. Again,
Speaker 1: I promise. And I just wanted to interject there because
Speaker 1: I feel like, genuinely sometimes people are like, what the
Speaker 1: hell am I an idiot for not understanding this? No, sis,
Speaker 1: you're not. You just never spoken French before. How are
Speaker 1: you going to know how to speak French if we
Speaker 1: don't practice it consistently?
Speaker 4: Exactly?
Speaker 1: All right back on track. The ABS, the Australian Bureau
Speaker 1: of Statistics. You guys know, I am obsessed with them.
Speaker 1: If I'm not obsessed with them enough, I'm obsessed with
Speaker 1: their social media presence. Go follow them on Instagram. I'm
Speaker 1: still trying to work out who's running their Instagram because
Speaker 1: they are some of the wittiest people in the entire
Speaker 1: world far out. I want to be you. I want
Speaker 1: to know you. If you work at the ABS and
Speaker 1: you know you, let me know. I'll keep it a secret.
Speaker 1: I just want to know, like, I'm not going to
Speaker 1: try and steal those people from you. I might, like,
Speaker 1: promise I won't if you're nice. But in its recent release,
Speaker 1: the Australian Bureau of Statistics noted that the most significant
Speaker 1: price rises were in a few things gas and other
Speaker 1: household fuels. I don't think anyone's going to be surprised
Speaker 1: about that, which soared by fourteen point three percent. Fourteen
Speaker 1: point three percent more for gas, that is wild geez.
Speaker 1: Medical and hospital services they rose by four point two percent.
Speaker 1: Tertiary education costs rose by nine point seven percent. Oh wow,
Speaker 1: discoo stent. And domestic holiday travel and accommodation is up
Speaker 1: by four point seven percent, which personally I found quite
Speaker 1: crazy because I assumed that it would be much higher
Speaker 1: than that, because obviously, during a period of time black
Speaker 1: we've just gone through with COVID, I thought it would
Speaker 1: be with so many international workers leaving our country and
Speaker 1: so many Australian workers now taking those roles and arguably
Speaker 1: demand higher incomes or less hours or like there's just
Speaker 1: been a lot of change. I assumed that domestic holiday
Speaker 1: travel and accommodation would be higher. But I think because
Speaker 1: a lot of these places are just trying to keep
Speaker 1: people coming in the door, they haven't raised prices as much,
Speaker 1: and I would genuinely predict that in the future that
Speaker 1: is going to go up even more because it's still
Speaker 1: expensive to like run hotels and run resorts and run
Speaker 1: any type of accommodation like that's expensive, and the burden
Speaker 1: that they carry of not being in business for such
Speaker 1: a long period of time, I believe is still being carried.
Speaker 1: So I would not be confused if you know, in
Speaker 1: a couple of months the ABS releases data that says
Speaker 1: domestic holiday travel and accommodation is much more expensive four
Speaker 1: point seven. I was like, do you mean fourteen point seven?
Speaker 1: But that's not the case. I did triple check it,
Speaker 1: all right. The Reserve Bank have increased their interest rates.
Speaker 1: So the cash rate we've talked about inflation obviously at
Speaker 1: seven point one percent, but the cash rate that the
Speaker 1: Reserve Bank have implemented try and battle that is now
Speaker 1: at three point eighty six percent. So the Reserve Bank,
Speaker 1: let's see the Reserve Bank. The RBA is the big dogs,
Speaker 1: and they have all the money. They lend their money
Speaker 1: to other banks, So like NAB and where's pack comback,
Speaker 1: they all go to the RBA and they say, hello, sir,
Speaker 1: we're a business and we offer mortgages, but we need
Speaker 1: your money, so we will pay you a certain amount
Speaker 1: of money to borrow your money and then we will
Speaker 1: lend it to our consumers. So we'll lend it to
Speaker 1: Beck if she wants to buy a house. The RBA
Speaker 1: historically was like, yeah, let's make sure that housing is
Speaker 1: really affordable. Let's drop the cash rate to one percent.
Speaker 1: Banks will like, heck, yeah, that means that if we
Speaker 1: are paying one percent to borrow the money from the
Speaker 1: RBA to give to our customers, we could probably clip
Speaker 1: the ticket by lacker point five percent. So if you
Speaker 1: then bet go down the street and say hey, nab
Speaker 1: one alone, they'll go, we can give it to you
Speaker 1: for one point five percent, because that means that they're
Speaker 1: making back the one percent that they're paying the RBA,
Speaker 1: and then they're making point five percent on your interest rate,
Speaker 1: and you go, that's a good deal. That's cheap money.
Speaker 1: Now the RBA is saying, oh, people are borrowing too
Speaker 1: much money. Things are getting wild. We need to stop
Speaker 1: people spending as much on discretionary items. You know what
Speaker 1: we can do. We can tighten up the belts. We
Speaker 1: can actually increase our cash rate to three point eight
Speaker 1: six percent, which is going to mean Beck she can't
Speaker 1: afford brunches easily. That means that Beck's not going to
Speaker 1: be contributing to the economy, which is going to slow
Speaker 1: down economic growth. So that our inflation rate goes down.
Speaker 1: And what that means is that these banks are now going, oh,
Speaker 1: we used to be able to borrow money for one
Speaker 1: percent from the RBA. Now we have to borrow at
Speaker 1: three point eight six percent. We're not actually making money,
Speaker 1: so we're going to have to pass that on to
Speaker 1: our consumers. So, Beck, if you were able to get
Speaker 1: money for one point five percent, now when you go
Speaker 1: down to the bank and say, hey, need a home loan,
Speaker 1: they're going to say, look, Beck, we borrow money for
Speaker 1: three point eight six percent from the RBA. We still
Speaker 1: want to make at least that point five percent. So
Speaker 1: now when you get a home loan, the average is
Speaker 1: looking more like four point two four point three percent.
Speaker 1: A few of them are closer to five percent because
Speaker 1: those banks still need to make money, they still have
Speaker 1: employees that they need to pay, they still have a
Speaker 1: debt with the RBA. It's not banks trying to screw
Speaker 1: us over. I promise like your bank is not trying
Speaker 1: to put you in the worse off position. In fact,
Speaker 1: a bank wants money to be as cheap as possible,
Speaker 1: because do you know what happens when money is as
Speaker 1: cheap as possible? People borrow more of it, and I
Speaker 1: promise you if the cash rate was still one percent,
Speaker 1: the bank would much prefer to lend you money at
Speaker 1: one point five percent. So they're taking that point five.
Speaker 1: Then what's going on now, Because even if they're making
Speaker 1: point five and the cash rate right now is three
Speaker 1: point eight six which means the bank is now saying,
Speaker 1: look back the cash rates three point eight six percent,
Speaker 1: I'm still going to tack that point five percent on.
Speaker 1: So now it's four point three six percent. So technically
Speaker 1: they profit margin identical, but you, as a consumer, can
Speaker 1: afford less, so you're borrowing less money. So the bank
Speaker 1: is actually making less money in this current economy than
Speaker 1: they were when cash was really really cheap. So it's
Speaker 1: important to remember it's not the bank's trying to get us.
Speaker 1: It's actually just the way of the world and it's economics.
Speaker 1: It is not the bank trying to absolutely screw you
Speaker 1: over and pass it on. If the bank didn't pass
Speaker 1: on this three point eight percent cash rate that the
Speaker 1: RBA set, they would go bankrupt beck and that's worse
Speaker 1: for the economy, and we don't actually want that to happen.
Speaker 1: So as much as that hurts and it's not a
Speaker 1: fun position to be in. We actually want that because
Speaker 1: it tightens the squeeze. It makes sense. It's not forever, though,
Speaker 1: so I think it's really important to remember that nobody's
Speaker 1: out to get us. They're actually trying to protect us
Speaker 1: by putting these rules in force, and that's why the
Speaker 1: cash rate is sitting where it is at the moment.
Speaker 1: If you want to know more about that. We actually
Speaker 1: did drop an entire episode on the third of May
Speaker 1: about investing in a high inflation environment, which I would
Speaker 1: recommend going back and listening to. But I hope that
Speaker 1: makes sense as to why the world isn't trying to
Speaker 1: screw us over. I know we're really negative and it
Speaker 1: really sucks, but it would be much worse if they
Speaker 1: let you keep your one point five percent interest rate.
Speaker 4: Yes, second, really it makes sense. Sor if it sounds
Speaker 4: really silly, bit is that a good thing for my
Speaker 4: savings account? In that case, why would that be a
Speaker 4: silly thing? Beck, I feel like you've put two and
Speaker 4: two together. Absolutely, As the cash rate increases, so is
Speaker 4: your interest rate on your savings account. So now is
Speaker 4: probably the time if you've been looking from high interest
Speaker 4: savings account and you listened to content maybe eighteen months ago.
Speaker 4: From me, I'd be like, all right, Beck, high interest
Speaker 4: savings accounts are dead, Like you're not even going to
Speaker 4: get more than one percent. Now, there are savings accounts
Speaker 4: that have four point five percent. That's really sexy. So
Speaker 4: if you haven't looked at high interest.
Speaker 1: Savings account in a while because you've been worried that,
Speaker 1: you know, ah, they're not worth the time, maybe they
Speaker 1: are now so it might be worth looking into. So
Speaker 1: you are absolutely correct, because what happens over time is
Speaker 1: as interest rates increase and you're paying more on your mortgage,
Speaker 1: you actually get more return on your savings account. And
Speaker 1: the inverse is true. When you have cheap interest rates
Speaker 1: and your mortgagees are cheaper, it actually means that you're
Speaker 1: not getting such a good savings rate. So you're correct.
Speaker 1: Right now is a good time to be re evaluating
Speaker 1: your savings account. Your bloody genius, Oh thank you.
Speaker 4: Okay, here we go. I'm learning something. So V I
Speaker 4: hear the banks are doing pretty well.
Speaker 1: They are rolling in it, you could say, which is
Speaker 1: surprising because everyone's complaining about how much more they're being
Speaker 1: charged on their mortgages and We've talked about this before.
Speaker 1: That's actually not got a lot to do with the
Speaker 1: bank profits. Like, yes, it does in a way, but
Speaker 1: at the end of the day, the RBA sets the
Speaker 1: cash rate and then that's how much banks are borrowing
Speaker 1: money for, so they're just passing it along to you,
Speaker 1: so they're not actually making you know, three or four
Speaker 1: percent more. And I think a lot of us have
Speaker 1: in our heads, oh my gosh, my bank was charging
Speaker 1: me one point five and now they're charging me five
Speaker 1: percent on my mortgage. They must be rolling in it, right,
Speaker 1: That's not actually the case because they're actually having to
Speaker 1: borrow the money at more, so they're kind of just
Speaker 1: passing that fee to you, so that profit margin is
Speaker 1: not coming from there, which I think is important to
Speaker 1: preface before I give this number because it's insane. So
Speaker 1: the big four banks, so when we say the big
Speaker 1: four in Australia, we're talking about A and Z, NAB
Speaker 1: and west Pac. They have reported are you ready, They've
Speaker 1: reported a combined sixteen billion dollars worth of profit thanks
Speaker 1: to raising the cash rate. So as much as they're
Speaker 1: passing it along, it's still helping them. This might see
Speaker 1: the budget return a surplus according to Motley Fools. Scott
Speaker 1: Phillips though, and I've been consuming a fair bit of
Speaker 1: his data recently because he's got a partnership with our
Speaker 1: friends Chairsey's. And this is not a sponsored mention at all.
Speaker 1: I just really like it. But he's doing the market
Speaker 1: update on the Chasea's Instagram and I'm just vibing it, Like, Scott,
Speaker 1: if you want to come over and do one for
Speaker 1: She's on the money, Like, I just think it's really
Speaker 1: good content. Or we could send the community over to
Speaker 1: the Chasea's Instagram and I guess they could get it
Speaker 1: there without us having to talk to Scott pos we
Speaker 1: could be one or the other. I mean, it would
Speaker 1: be nice to talk to him at some point, but
Speaker 1: I think it's really really interesting just I guess having
Speaker 1: these conversations and what it means. And that's why I
Speaker 1: prefaced it back, because I was like, look, they've you know, combined,
Speaker 1: they've got sixteen billion dollars worth of and a lot
Speaker 1: of people might have jumped to the conclusion that, oh
Speaker 1: my god, that's because the rates have increased and you know,
Speaker 1: they're absolutely raiming us, and like, yeah, nah, Like there's
Speaker 1: a balance there, because if I just told you that,
Speaker 1: you would have been like, yeah, because interest rates went
Speaker 1: from one and a half up to like four and
Speaker 1: a half. Well yeah, but they're also having to borrow
Speaker 1: money at a higher percentage, so not all of that
Speaker 1: is profit right, so.
Speaker 4: They're kind of like making this every single year.
Speaker 1: They're about yeah, like they are bank every year, which
Speaker 1: is why, honestly, when it goes back to it, it's
Speaker 1: why so many people in the Australian share market like
Speaker 1: owning banks, like people like going and buying blue chip
Speaker 1: stocks in the Australian share market, which are things like banks,
Speaker 1: because they're tried and they're true, and they're tested, and
Speaker 1: they're relatively boring, but they have consistent returns and they
Speaker 1: pay out dividends, which is like paying out the profit
Speaker 1: to shareholders, and ultimately shareholders really like that. And I
Speaker 1: really like that. Yes, that's why I earned some banks
Speaker 1: like portfolio. That sounds it pretty sweet.
Speaker 4: I'm assuming we're happy about the banks reporting healthy profits.
Speaker 1: We want that because it's a sign of a really
Speaker 1: good economy. It means that the banks are doing really well.
Speaker 1: We should be concerned when banks aren't churning a good
Speaker 1: profit and at the end of the day, like, yes,
Speaker 1: we don't want the banks to get rich rich, Like
Speaker 1: the economy is really important, you know, community is really important.
Speaker 1: But I think stepping away from that conversation about equality
Speaker 1: and equity and all of that, because obviously a lot
Speaker 1: of people are going to be quite opinionated. Beck they
Speaker 1: can go, oh my god, but they should be passing
Speaker 1: this on ra rah. They most often are, They're passing
Speaker 1: that profit onto shareholders. So each and every single year
Speaker 1: when they report a profit, or maybe it's every six months,
Speaker 1: it depends on their reporting criteria, they pass it along
Speaker 1: to shareholders, and they might reinvest some of that profit
Speaker 1: back into building the business, but a lot of the
Speaker 1: time it just goes directly to shareholders. And the reason
Speaker 1: for that is the banks are already relatively well established
Speaker 1: and they don't need to, you know, reinvest significant amounts
Speaker 1: of their profit back into their business to grow it
Speaker 1: again because they are already there back right.
Speaker 4: I see, Okay, So I just want to talk about
Speaker 4: the budget really quickly because right now I don't actually.
Speaker 1: Sell sexy So yeah, like, what does what do you mean?
Speaker 1: You don't know? Didn't you on Tuesday Night? Like a
Speaker 1: couple of weeks ago, sit in front of the TV
Speaker 1: with wine and you were like, well, sub balbo, what's
Speaker 1: going on? And then you were like watching it like
Speaker 1: the AFL Grand Final?
Speaker 4: Did people do that anywhere in the world?
Speaker 1: I did that?
Speaker 3: You did? That's so sweet.
Speaker 1: Yeah. My husband wasn't that impressed. He's recently got a
Speaker 1: new PlayStation five and he would have preferred, absolutely, like
Speaker 1: to play the golf game that he go, yeah, look
Speaker 1: anything else, Like I thought a golf game was pretty bland,
Speaker 1: but like he's been playing this golf game and yeah,
Speaker 1: he kept asking me, can we gne that on you?
Speaker 1: You can just read the report like, no, sir, this
Speaker 1: is so exciting I need to yell at the TV
Speaker 1: a little bit longer. Yeah, it's like my sport. I
Speaker 1: really like it. I think it tells you a lot
Speaker 1: about the government's priorities. It was interesting because obviously the
Speaker 1: Albanezy government has prioritized cost of living relief, which I
Speaker 1: think is really sexy. So we're looking at things like
Speaker 1: housing and healthcare and clean energy measures and the budget.
Speaker 1: Not everybody is happy about the budget. I think a
Speaker 1: lot of people have seen it as a bit of
Speaker 1: give and take like. I've heard a lot of comments
Speaker 1: of people being like, oh my gosh, they're investing in this,
Speaker 1: but that's taken away from X. That's not how the
Speaker 1: budget works. You know, budget gets allocated in line with
Speaker 1: priorities of the government but also the community and taking
Speaker 1: lots of different factors into consideration. They're not looking at
Speaker 1: it and going, oh, should we allocate to Beck or
Speaker 1: Victoria like, they're not comparing the two. They're looking at
Speaker 1: that situation and how much funding it would need and
Speaker 1: then looking at the total budget and what they can allocate.
Speaker 1: They're not kind of, you know, looking at it going
Speaker 1: let's take away from Beck like. And I think a
Speaker 1: lot of people when the budget comes out feel really attacked.
Speaker 1: And that's not necessarily what's happening, but it's to their own.
Speaker 1: We can all have our own opinions. But essentially, the
Speaker 1: Albanese government has said that they're going to deliver get
Speaker 1: this quote, a stronger economy and a fairer society. Ah,
Speaker 1: I mean whatever. That just feels very political and I'm
Speaker 1: very much of well, put your money where your mouth is, mate,
Speaker 1: we walk the walk. I don't care about the talk, like,
Speaker 1: just show me what you're going to do. So let's
Speaker 1: talk about the budget a little bit more deeply. Do
Speaker 1: you want to do that or is that too boring? Ah?
Speaker 4: Look, I actually want to know.
Speaker 1: It probably will be boring, but I really want to know.
Speaker 1: Let's like pull out some headlines that I think we
Speaker 1: should converse about. What do you recompects that. So recipients
Speaker 1: of the Commonwealth Rent Assistant, So the CRA, which is
Speaker 1: an existing program which about one point one million low
Speaker 1: income Australians are eligible for, they're going to receive more
Speaker 1: financial support. I think that's really important. So the CRA
Speaker 1: payment is actually going to increase by fifteen percent, and
Speaker 1: in a world where our inflation rate is sitting at
Speaker 1: seven percent, like, that's probably pretty welcome. Yeah, definitely, So
Speaker 1: that's good. The government's also going to reward small business owners.
Speaker 1: They've got a number of different financial measures that they're
Speaker 1: going to introduce. So the instant Asset Right of threshold
Speaker 1: is going to be temporarily increased to twenty one thousand
Speaker 1: dollars from the first of July from this year. So
Speaker 1: that means that if you have a small business which
Speaker 1: get this peck. I think you'll laugh at this if
Speaker 1: you have an annual turnover of less than ten million dollars,
Speaker 1: you're a small business, Like, so.
Speaker 4: What what that's literally everyone?
Speaker 1: Well, I just thought that small business would end it
Speaker 1: like a million, but it doesn't. It ends at ten
Speaker 1: million dollars, So twiggle room. Yeah, right, Like imagine being
Speaker 1: like I'm a small business owner and you're earning like
Speaker 1: nine million.
Speaker 4: Dollars Like what wow?
Speaker 1: Anyway, unrelatable. But they will be able to instantly deduct
Speaker 1: the entire cost for certain assets that cost less than
Speaker 1: twenty thousand dollars, which are first used between the first
Speaker 1: of June twenty twenty three and the thirtieth of June
Speaker 1: twenty twenty four. So the twenty thousand dollars threshold applies
Speaker 1: to each asset. So small businesses can take advantage of
Speaker 1: this measure to buy multiple assets, which is kind of good. Beck,
Speaker 1: and I guess to put that into a little bit
Speaker 1: of perspective for you, Like, let's say you have a
Speaker 1: beauty business and you want to start doing laser Like
Speaker 1: this will increase my revenue, right, Like having a laser machine.
Speaker 1: If you buy that, you're going to get an instant
Speaker 1: asset right off on that. So like the tax comes
Speaker 1: back to you. So it's actually relatively sexy and can
Speaker 1: be for a lot of businesses worth up to like
Speaker 1: thirty percent of the value of that item. So that's
Speaker 1: actually very good. So it's not like, oh yeah, instant
Speaker 1: asset right off when you're kind of like, well, what
Speaker 1: does that mean. It means that, like you can write
Speaker 1: off the tax on that item. It doesn't mean you
Speaker 1: get that whole item for free, but like you can
Speaker 1: write off that tax and it's going to put you
Speaker 1: in a better financial position. So instead of, you know,
Speaker 1: as a business owner, we pay thirty percent on tax
Speaker 1: as a general kind of blanket rule. Obviously, there's lots
Speaker 1: to it, and you need to talk to your account
Speaker 1: and if you're going to you know, take this on,
Speaker 1: but it's important to understand the instant asset right off
Speaker 1: means you are kind of, let's call it, like, in
Speaker 1: a very basic way, getting a really big discount on
Speaker 1: an asset that you need to purchase for your business
Speaker 1: to grow.
Speaker 4: Gotcha, And you can purchase as many of those under
Speaker 4: twenty thousand dollars assets.
Speaker 1: Yeah, which is kind of sexy. I mean, OK, there
Speaker 1: are a lot of people in our community who aren't
Speaker 1: so excited about the instant asset right off because this
Speaker 1: year they're scrapping the instant asset right off for cars.
Speaker 1: So a lot of small business says, yeah, so it's
Speaker 1: not completely scrapped, but it goes back down to that
Speaker 1: twenty thousand dollar mark, Whereas right now you can ride
Speaker 1: off a car for up to fifty nine thousand dollars
Speaker 1: each financial year. So that's going to be, you know,
Speaker 1: scrapped on the thirtieth of June. So I mean, you're
Speaker 1: probably not always looking at carsales dot com dot U.
Speaker 1: I'm not either, huh. But it's just an interesting thing
Speaker 1: to talk about because at the moment, lots of cars
Speaker 1: are hard to come by because it's in the lead
Speaker 1: up to June thirty, and lots of small business owners
Speaker 1: are kind of like snapping up the SUV they've always
Speaker 1: wanted to buy, or like snapping up a car for
Speaker 1: their business because their accountant has called them and said, hey, Beck, like,
Speaker 1: if you were planning on buying a car, now would
Speaker 1: be a great time because if you buy it after
Speaker 1: the first of July, like you're not going to get
Speaker 1: basically sixty thousand dollars tax, right off, it's going to
Speaker 1: drop back down to twenty and obviously that's pretty attractive.
Speaker 1: So lots of cars are off the market. So I
Speaker 1: don't know what you'd call him, my brother in law.
Speaker 1: Like my sister's partner's currently looking for a car, let's
Speaker 1: call him brother in law. He's probably not rather alike,
Speaker 1: but sorry, Alex, like they're not married, but that's okay,
Speaker 1: Like I'm manifesting and manifesting anyway. They were looking for
Speaker 1: an amok, which is like a big training car, not
Speaker 1: one left in the country. Really not why you can't
Speaker 1: get it before June thirty. It's just interesting to see
Speaker 1: how those things work because you wouldn't think about it.
Speaker 1: But if you've been looking for a family car and
Speaker 1: you just can't seem to find one, my friends, that's
Speaker 1: because all the small business owners have already gotten on it.
Speaker 4: I think this is probably like a tax question, but
Speaker 4: one for the taxman. I should say a tax woman.
Speaker 4: If you tax persons, I'm sorry, I should say a
Speaker 4: tax person. So if it's under twenty thousand dollars, I'm
Speaker 4: assuming because it has to be like new from the
Speaker 4: first of July. You can't get a secondhand car I'm
Speaker 4: assuming is that right?
Speaker 1: You need to talk to the taxman, because I think
Speaker 1: it depends on that, yeah, or the person or whatever
Speaker 1: we're doing. Like, I'm just trying to do the right thing.
Speaker 1: I'm just trying to answer the question exactly the same.
Speaker 1: Oh my gosh, I just doing my best, okay, and
Speaker 1: so even it's my best should be enough, like, oh
Speaker 1: if I talk to the tax people, Yes, it depends
Speaker 1: because I think that there's a lot of semantics in
Speaker 1: it about you know, how old it is and what
Speaker 1: that means and how that works. Because I have bought
Speaker 1: a car before in our business and been able to
Speaker 1: write it. Often it was secondhand, and I'm very big
Speaker 1: as an advocate I suppose of buying secondhand cars because
Speaker 1: like brand new cars lose a lot of their value.
Speaker 1: And I'm you know, I'm a money gal. So I
Speaker 1: think have a chat with your accountant and they can
Speaker 1: give you the specifics. Obviously this is not a tax
Speaker 1: planning episode. I just think it fits into this conversation nicely.
Speaker 1: And as you guys know, I love a bit of context,
Speaker 1: like I love being able to go, oh, did you
Speaker 1: know this? This and this? And there's no I'm a
Speaker 1: rocks left. I have no intention of ever buying an ammarok,
Speaker 1: but I feel smart at knowing that you know, yeah, same.
Speaker 1: We're going to stop talking about the tax side of
Speaker 1: things very shortly because I actually am planning to do
Speaker 1: an entire tax planning episode really soon, because it's coming
Speaker 1: up to tax time and I want to make sure
Speaker 1: that we're in the best possible position.
Speaker 2: Beck.
Speaker 1: Yes, small to medium sized businesses, so obviously medium are
Speaker 1: going to be more than ten million dollars worth of turnover.
Speaker 1: Wild congratulations. But these businesses and I like this are
Speaker 1: going to be encouraged to buy energy efficient fridges, electric
Speaker 1: cooling systems, batteries and other assets that to quote, support
Speaker 1: electrification and more efficient use of energy. Very good. So
Speaker 1: companies with a turnover of less than fifty million dollars
Speaker 1: unrelatable content will be able to deduct an additional twenty
Speaker 1: percent of the cost of depreciating assets that are eligible
Speaker 1: under the Small Business Energy Incentive measure. That's a mouthful.
Speaker 4: That is a mouthful.
Speaker 1: What is a depreciating asset.
Speaker 4: An asset that you buy and then immediately it loses value?
Speaker 1: Amazing and that happens over time. Check it out. Are
Speaker 1: youshes on the money?
Speaker 4: Oh my goodness to me, I could pretty much just
Speaker 4: take over from this point.
Speaker 1: But I think it's important to talk about that, right
Speaker 1: because when we talk about instant asset ride offs, that
Speaker 1: means that you're claiming one hundred percent of that depreciation
Speaker 1: in one financial year. If you do that, you can't
Speaker 1: claim it over subsequent years. But each and every single year,
Speaker 1: your asset will decrease in value and at some point
Speaker 1: it kind of becomes zero and you can no longer
Speaker 1: claim it because it's not endless, and that asset essentially
Speaker 1: isn't worth much anymore. Right, So it's important to understand
Speaker 1: that over time. If you, as a business buy an
Speaker 1: air conditioner, it's a two thousand dollar air conditioner. Next year,
Speaker 1: technically to the business it might be worth eighteen hundred dollars,
Speaker 1: and the year after that and the year after that
Speaker 1: just decreases and decreases, and then it might be worth
Speaker 1: absolutely nothing because it's a thirty year old air conditioner.
Speaker 1: You know, no one's going to pay full price for that,
Speaker 1: So the taxman builds that in because otherwise, if your
Speaker 1: assets didn't depreciate over time, beck you'd end up buying
Speaker 1: a two thousand dollar air conditioner, and then that adds
Speaker 1: two thousand dollars to the value of your business. And
Speaker 1: then in a couple of years you might buy a
Speaker 1: few more things, and then you have this business that's
Speaker 1: valued at like, you know, one hundred thousand dollars when
Speaker 1: you I don't actually have one hundred thousand dollars worth
Speaker 1: of assets you could recover. Does that make sense? So,
Speaker 1: like I couldn't sell those things for one hundred grand.
Speaker 1: So the taxman's like, let's just be reasonable about this
Speaker 1: and actually claim what you're losing on those assets, which
Speaker 1: is quite helpful.
Speaker 4: Yes, okay, that is helpful and very kind.
Speaker 1: You should just call the tax people kind. Okay, weird. Look,
Speaker 1: I love the tax people. Let's leave it there. Ok.
Speaker 1: Let's leave it just in case they come for us.
Speaker 1: All right, Let's move on from small businesses. So base
Speaker 1: rates of supportive payments, so things like job seeker and
Speaker 1: Youth Allowance and the Partnered Parenting payment and OZ study
Speaker 1: is going to rise by forty dollars a fortnite from
Speaker 1: the twentieth of September. So there's been a bit of,
Speaker 1: like I guess, backlash from that because forty bucks beec
Speaker 1: it's not really going to get you much. Yeah, I
Speaker 1: feel like on job seeker or youth allowance or your
Speaker 1: parent or like you're doing or study, like forty bucks,
Speaker 1: what's that going to get you nowadays? Literally? Not that much?
Speaker 4: Not that much.
Speaker 1: Like I feel like nowadays, you go to the supermarket
Speaker 1: with a fifty dollars crisp note and you're like, that's
Speaker 1: so much money, and then you get like two things
Speaker 1: and you're like, where did this money go? So I
Speaker 1: feel like that was a bit low. Obviously there's lots
Speaker 1: of like maths and analysis behind this, and they feel
Speaker 1: like that's sufficient, but there's obviously a fair bit of
Speaker 1: backlash because they do deserve more. Like if you're in
Speaker 1: that situation, forty bucks in a rising inflation environment not
Speaker 1: going to do all that much. Mats not enough exactly.
Speaker 1: So the government will spend three billion dollars on direct
Speaker 1: bill relief, So that's quite sexy, co funded with state
Speaker 1: governments to eligible households including pensioners, senior healthcare card holders,
Speaker 1: and family Tax Benefit A and B recipients. So the
Speaker 1: government claims more than five million households are going to
Speaker 1: have up to five hundred dollars deducted from their power
Speaker 1: bill next financial year. Oh that's a big deal. I
Speaker 1: think that's pretty good, especially for people who, you know,
Speaker 1: if you're a pensioner or you have a senior healthcare
Speaker 1: card holder, like you're going to need that type of relief,
Speaker 1: And I'm sure that that will take a bit of
Speaker 1: pressure off, Like energy these days is so expensive, and
Speaker 1: we already know that, Like, let's be honest, let's stereotype
Speaker 1: for a hot second here, My nanna never turns her
Speaker 1: heater on like she wants to be warm all the time.
Speaker 1: I swear only one room in her house is ever heated.
Speaker 1: And they're already so careful about these things. So I
Speaker 1: think that that might take a little bit of pressure
Speaker 1: off the people who you know, aren't doing incredibly financially
Speaker 1: but still deserve to have that relief because look, honestly,
Speaker 1: it's a basic human rash. Yeah, all right. Next up,
Speaker 1: we have single parents. They're going to be able to
Speaker 1: claim the single parenting payment until their youngest child turns fourteen,
Speaker 1: whereas the old age used to be eight years old.
Speaker 1: So that's a significant jump in age, and I think
Speaker 1: that that will be really helpful, and they plan to
Speaker 1: triple the bulk billing incentive that GPS receive, meaning it
Speaker 1: there'll be more common consultation types which doctors can choose
Speaker 1: to bulk bill for, which I think is really sexy.
Speaker 1: I ried doctors and I've been having this conversation recently,
Speaker 1: and they're like, look, that's not actually going to do
Speaker 1: as much as you think it is. And I think,
Speaker 1: you know, let's take all of that with a grain
Speaker 1: of salt. I think that the government stepping in to
Speaker 1: kind of triple the bulk billing incentive is good, but
Speaker 1: there's obviously a lot of other pressures on doctors to
Speaker 1: be able to bulk bill and actually be able to
Speaker 1: afford it, because they're paying like rent, and they're paying
Speaker 1: you know, their nurses, and they're paying everything else, and
Speaker 1: they're in the firing line for the cost of living
Speaker 1: crisis as much as we are. And I'm not saying
Speaker 1: that they're not doing well financially, like if you're a doctor,
Speaker 1: you probably have a relatively good income. As a stereotyping thing,
Speaker 1: but I think it's worthy of mention because I think
Speaker 1: a lot of gps are going to go v like,
Speaker 1: that's not going to fix it, like everything's not going
Speaker 1: to go back to being bulk billed. But that's our
Speaker 1: government trying to take a little bit of pressure off
Speaker 1: that system, so hopefully things can be a bit easier
Speaker 1: for the people who need it to be easier. And
Speaker 1: I think that that's, yeah, probably a good place to
Speaker 1: leave it, my friend, sounds pretty good. You reckon, Let's
Speaker 1: go absorb it.
Speaker 4: And see you guys soon, See you.
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