Australian Economy

The Australian economy set a world record in March 2017. Recession free for nearly 26 years. Around the same time, Australian households also established a record…the most indebted in the world.

The Australian economy was a major beneficiary of China’s decades long economic transformation. Chinese demand for resources led to a mining boom that peaked in mid-2012.

When the mining boom collapsed, the Australian economy was thrown a lifeline by the RBA…in the form of ever lower interest rates. Australians were encouraged to borrow to keep GDP growth positive.

While this has worked to an extent, it’s also lead to Sydney and Melbourne property markets becoming amongst the most expensive in the world.

Australian Economy News, as it comes

In Markets & Money we work to connect the dots on the Australian economy to give you a clear picture. And part of that picture is connecting record economic growth with record debt, and record home prices.

global economic outlook in trouble
No Bang for Our Borrowed Buck
Even with all of this innovation, our economic growth is slowing. The reason for this, Vern argues, is that we have failed to be adaptive in our economic model. And now we are drowning in debt and are struggling to keep our economy stable. Although we are accustomed to our GDP always rising, and our living conditions becoming ever-better, it’s an expectation that we need to rethink.
Australian mortgage application form
The Switch to a Buyer’s Market
The housing market is very different from a few months ago. Back then, buyers were getting into frenzied auctions, spending more than what they had budgeted for and properties were going above the reserve. In other words, we could be seeing the switch from a seller’s to a buyer’s market.
Australian Taxation Office
The Great Australian Crackdown
The investigation into the tax office, which was conducted in partnership with Fairfax and former employees of the ATO, depicted stories of small business owners and individuals who were alleged to have been ‘aggressively pursued’ for debt that they didn’t owe. The exposé highlighted the far reaching powers of the tax office and how they have the potential to be abused.
infrastructure boom in Australia
A Tsunami in Infrastructure Spending
There are currently 1.2 million people employed in construction, around 9% of Australia’s total labour force. The truth is that infrastructure spending is booming in Australia. The boost in infrastructure spending could be supporting Australia’s economy for the next few years as other sectors in the economy slow.
Aussie banks in for a tough time
The Slow Death of the Banks
It was misconduct that led to a $75 million royal commission into banking that kicked off last month. And it’s looking like, by the time it’s over, the banks are going to have to dish out a lot more than $1 billion. The big four banks have lost around four percent of their value since the commission’s commencement. And with a new code of conduct about to be implemented, they could be in for even harder times.  
privacy in a digital age
Is Privacy Possible in the Digital Age?
Using all of the information we willingly upload to the internet, extremely complex character profiles are built and recorded. Our political views, interests and fears are all laid bare — allowing software to create a tailored shopping list of consumers that is then sold to marketing companies.
Bank building
NAB Share Price Drops Nearly 2%
National Australia Bank Ltd [ASX:NAB] are trading, at the time of writing, at $28.92 a share while dropping today by 1.83% Their share value has been consistently low, but have shown some signs of growth in the past, as they were valued lower during 2016.
Australian economic news
Surprise Attack
Ever since June 1991 — our last official recession — the textbook approach to generating GDP growth has been to encourage households to borrow to ‘get the economy moving’. Our economic ‘success’ has really been a massive failure…setting households up for an extended period of financial pain and in some cases, ruin.
telstra shares news
Telstra Share Price Struggles
Today shares of Telstra Corp Ltd [ASX:TLS] remain on a consistent downwards pattern as they have dropped by 1.65%. A year ago, they were trading at $4.59 a share. Now they are only trading at a mere $3.27. Three years ago, they were valued much higher at $6.49 a share. Why? Find out.....
household debt at an all time high in australia
No Taming the Debt Beast
Wages not growing and property prices at record highs mean that household debt is reaching record highs. And household debt is already becoming a burden that could restrict growth. Australian household debt is at one of the highest in the world, at almost 200% debt to income ratio. Household debt affecting consumption is a big worry for the RBA
Toys R Us
Do Kids Play with Toys Anymore?
The latest to go is toymaker extraordinaire, Toys "R" Us. Like us, they know the online world provides content that is often more engaging and rewarding than anything you can find in the real world. And with myriad of video games and mobile applications available, it’s no surprise that the humble toy store couldn’t compete. This is a trend we are seeing in retail across the board.
Shorten tax grab
Shorten Sounds Siren
When (not if) the share market goes through a significant correction, and struggles to respond to stimulus efforts, dividends will be cut. Shorten’s proposed tax grab is going to end up as a ‘grab bag of nothing’…a bit like Swan’s mining tax. Shorten’s announcement was further confirmation of this inevitable outcome.