Weekly Digest – 21 August 2024

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

Conflicting data: Is wage growth cooling down or heating up?

While the official ABS data showed the Wage Price Index (WPI) rose 0.8% in June quarter 2024, and 4.1% for the year, the reality on the ground might be over double that, according to payroll platform Employment Hero.

E-commerce soars in Australia & NZ

Online shopping has become a significant part of the retail landscape in Australia and New Zealand, according to the Australian and New Zealand Ecommerce Report 2024 released by IAB Australia and Pureprofile. The report indicates that 83% of Australian online shoppers and 77% of New Zealand online shoppers make online purchases monthly.

Bad news for struggling borrowers as ‘near term’ rate cut ruled out

Mortgagors hoping for relief on repayments should not expect an interest rate cut anytime soon, RBA Governor Michele Bullock has warned in an address to parliament.

Is Australia ‘giving away’ its natural resources?

Speaking on ABC’s Q&A, Nobel Prize-winning economist Joseph Stiglitz claimed Australia was “giving away its natural resources”.

Australia’s unemployment rate rises to 4.2% in July, even as employers add more than 58,000 jobs

Australia’s unemployment rate ticked higher last month, even as employers added about three times as many jobs as expected. The job gains will probably discourage the Reserve Bank from cutting its key interest rate in the near term.

The government is resetting CDR

After “poor execution” plagued the initial effort to implement Consumer Data Right, the government is resetting the initiative in a bid to “deliver better consumer outcomes” through four key changes.

Roy Morgan Business Confidence up 3.6pts to 95.1 after Stage 3 tax cuts

In July 2024, Roy Morgan Business Confidence was 95.1 (up 3.6pts since June 2024) after Stage 3 income tax cuts to consumers boosted the spending power of millions of Australian taxpayers. There were mixed results in July with businesses more confident about the outlook for the Australian economy over the next few years but less confident about their own prospects over the next year.

Australia’s two-speed economy paints a sobering picture for small businesses

How can we reconcile a thriving stock market with the growing struggles of Australian SMEs?

Australian economy needs SMEs to succeed

SMEs and micro businesses are uncertain in their current positions, as highlighted in the new State of Small Business Data Report by Square and the Council of Small Business Organisations of Australia (COSBOA).

More tax on super contributions to go towards LISTO

New research from the Association of Super Funds (ASFA) has informed recommendations made by the peak body to have a portion of the tax earned from certain superannuation contributions to boost the Low Income Superannuation Tax Offset (LISTO).