Your Weekly Money & Markets Wrap
Here's what caught our attention this week in the world of consumer finance, economics and money admin.
Wrapped by Matt Bowen, Friday 18 July ❄️ 9 degrees in Sydney
We’re covering more ground than the British and Irish Lions on their series opener against the Wallabies; from the latest on our labour force trends, to tax time trickery and the end (possibly) of frustrating fees at the checkout.
🏠 Smart Move: Why Aussies Aren't Rushing to Cut Mortgage Repayments
While many mortgage holders were hoping for good news from the RBA recently, it seems the decision to pause or cut on rates has had little impact on repayment behaviour. Despite two rate cuts this year that could have reduced monthly payments by over $150 for the average mortgage, most borrowers are keeping their repayments unchanged in a savvy way to save on interest and shave years off mortgage tenure.
The data from the Big 4 banks shows this trend clearly - borrowers are using this moment to get ahead rather than ease up. And demonstrating that perhaps we’re finally getting used to the current cost of living crunch, with a little more wriggle room in other areas of our budgets.
The key takeaway? Whether you're paying down faster or hunting for better rates, now's a good time to take action on your mortgage rather than just hoping for the best.
💼 The Great Job Shuffle: Why the hunt is on for your next job
Job turnover is on the rise, and experts reckon the second half of 2025 could be Australia's busiest season for career changes. Particularly if you’re in technology, hospitality or retail.
Job advertiser Seek tells the story: job applications per position are up 16.2% compared to a year ago, and they've nearly doubled since before the pandemic. Even though employment remains strong overall, people are actively seeking new opportunities. Whether it’s disappointment with mid-year pay bumps, or the fact that our economic outlook is improving and we’re more willing to sacrifice a bit of job security, the experts are expecting much more talent mobility later this year.
But just don’t jump too soon. The ABS released the June jobs data this week and it showed a less new jobs were added than expected, notching our unemployment rate to 4.3%. The first upward movement we’ve seen in over 1 year.
💳 Good News for Your Wallet: Card Surcharges Could Be History
Remember that annoying moment when you tap your card and there's suddenly an extra fee tacked on? Well, relief might be on the way. The RBA is pushing to ban card surcharges altogether, which could save us a collective $1.2 billion a year. Could.
Aussies are currently paying around $60 per person, per year, just for the privilege of using their cards - but the surcharge scheme which was designed to make payments processing more cost effective and efficient has become a confusing hot mess for consumers. No one really knows what they’re paying for goods, despite what the sticker says on the shelf.
Its been under review for some time and now the RBA has come clean with it’s new proposal. For consumers, it would like to see surcharges scrapped on Debit and Credit. Bringing us into line with EU, UK & Canada. For Business owners, its would like to see fees capped and much more transparency on the surcharge rates from payment providers and card networks, with a more level playing field regardless of your turnover.
The RBA is seeking feedback for the next six weeks. Many expect that businesses will just increase the costs of goods for sale, but this has to be a better outcome than the smoke and mirrors approach now. At least if consumers know the actual price, they have the ability to make and informed decision about purchase.
📊 Tax Time Reality Check: What the ATO Won't Let You Claim
Tax time is here, and while plenty of people are excited about maximising their deductions, the ATO has been busy sharing some of the more... creative attempts they've seen. Spoiler alert: don’t try these at home.
Some highlights from the "definitely not going to fly" category: a mechanic tried to claim an air fryer, microwave, two vacuum cleaners, TV, gaming console, and gaming accessories as work-related expenses. A truck driver wanted to claim swimwear because it was hot where they stopped and they wanted to go for a swim. And a fashion industry manager attempted to claim over $10,000 in luxury clothing and accessories for looking well-presented at work.
The ATO's reminder is simple: stick to the three golden rules. You must have spent the money yourself (not been reimbursed), it must be directly related to earning your income or running your business, and you must have records or receipts for everything.
The good news? There's a comprehensive occupation guide on the ATO website with examples specific to different industries. When in doubt, check the guide or chat with a tax professional - it's much better than finding out the hard way that your creative interpretation didn't pass the sniff test.
🏉 Lions Tour: A $200 Million Economic Flick Pass
This weekend marks something special for rugby fans - and for the Australian economy. The British and Irish Lions are touring Australia for the first time in 12 years, and it's not just about the sport. This tour is projected to be the most profitable Lions tour on record, bringing around $200 million to our economy.
The six-week tour includes three matches against the Wallabies, with roughly 40,000 rugby fans travelling from the UK and Ireland to follow the Lions. In total, more than 500,000 fans are expected to attend the nine matches that make up the tour. That's a lot of people filling pubs, restaurants, and hotels - exactly what our hospitality industry needs.
For Queensland specifically, the opening event is expected to inject around $55 million into the state's economy just for the weekend. And unlike the 2021 Lions tour that was hampered by COVID restrictions, this one is happening with fans able to get amongst the action at venues across the country.
Beyond the immediate economic boost, Rugby Australia expects the tour to generate $100 million in revenue - a much-needed injection to support continued investment in the game and grassroots rugby. It continues to amaze me at how much economic stimulus comes from something as simple as people getting together to watch great sport.
Matt ✌️
Want to be notified when this is published? Or have it sent direct to your inbox?