Labor’s ‘enormously expansionary’ budget risks rates staying high
Despite calls for Labor to adopt a contractionary fiscal policy to complement the RBA, economists say Tuesday’s budget was likely expansionary or neutral at best.
Wages grow at slowest pace in more than a year
Wages growth slowed for a second consecutive quarter in March, to 0.8 per cent, and economists tipped further easing that lowers the chances of an interest rate rise soon.
- Opinion
- Chanticleer
Why BHP’s hopes of buying Anglo American are fading fast
BHP boss Mike Henry has taken his takeover pitch directly to Anglo American investors. But the hurdles to this bid are multiplying, and time is running out.
- Live
- Need to Know
Time to fix budget’s structural deficit: accountants
Accounting bodies say the federal budget should have done more to deliver substantive tax reform and a plan for implementation. Follow updates live.
- Live
- Markets Live
ASX gains as BHP, mining stocks advance
Shares rally after budget as BHP jumps; AACo swings to a loss; Iress reveals data leak; CSR hit by energy costs; Q1 wages cool more than expected. Follow updates here.
Rio chief ‘not afraid’ of M&A as Anglo American break-up looms
Jakob Stausholm won’t rule out entering the acquisition fray, but told investors he doesn’t want big transactions to derail his recovery mission at the miner.
Prezzee co-founder quits Shaun Bonett-owned gift card company
Claire Morris is leaving the group, and resigning as its brand ambassador. It follows a string of senior executive departures in the last 18 months.
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FEDERAL BUDGET
- Updated
- Federal budget
Miners hail tax credits but Coalition to block it
Australia’s critical minerals industry has hailed $13.7 billion in budget tax credits at the same time as the Coalition has vowed to block the policy claiming it will deliver “billions to billionaires”.
Spending addiction fuels a new decade of deficits
This pre-election budget includes $300 in power bill discounts for every household, $1.9 billion in rent assistance and $14 billion in tax credits for critical mineral miners and green hydrogen producers.
‘Back in the game’: Hydrogen sector celebrates from afar
Almost 50 Australian companies were in Rotterdam for the World Hydrogen Summit. When news of the budget bonanza came through, the reaction was ecstatic.
Holiday homeowners to get $600 in power bill discounts
Holiday and second homeowners will receive multiple $300 energy bill credits, after the government said all households would automatically receive the benefit.
‘Higher costs, more taxes’: Business warns budget could fuel inflation
Business has warned the third Chalmers budget could add to inflation, and urged the government to rein in spending to prevent a decade of deficits.
budget analysis
- Opinion
- Federal budget
There’s an $80b spending bomb buried in the budget
The people who should be most worried about this profligate pre-election budget are Reserve Bank governor Michele Bullock and home borrowers, writes John Kehoe.
- Opinion
- Federal budget
This is the most irresponsible budget in recent memory
The government set itself a simple standard: not to make the Reserve Bank’s job harder. Michele Bullock may just choke on her cornflakes, writes Steven Hamilton.
- Opinion
- Federal budget
Why economists hate the $300 energy rebate
This is a budget that acknowledges the government is facing a mountain of problems that cannot be solved any time soon, writes Laura Tingle.
- Opinion
- Federal budget
Forget policy, Albonomics is all politics
The budget is just more hard proof that Australia has not elected a government driven by policy since Kevin Rudd’s Labor in 2007, writes Richard Holden.
- Opinion
- Federal budget
This budget won’t be a catalyst for rate cuts
When setting monetary policy, the RBA will look through temporary factors impacting prices to understand the underlying trend for inflation within the economy, writes Warren Hogan.
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Companies
Aluminium losses hit CSR ahead of Saint-Gobain $4.3b buyout
Shareholders will vote next month on the bid from Saint-Gobain, which must wrestle with a loss-making aluminium business hit hard by high energy costs.
- Updated
- Mergers & acquisitions
BHP says Anglo American demerger plan vindicates takeover structure
The London-listed miner will sell or shut assets except those producing copper, iron ore and crop nutrients as it hopes to see off its Australian suitor.
Eyes on Transgrid as super funds bail out of $8b infra fund UTA
Sources say Aware Super has hired Campbell Lutyens, a specialist in moving illiquid investments for institutional investors, to shop a $600 million stake.
Judge chides critics who want to ‘regulate class actions out of existence’
The newest member of the High Court, Justice Robert Beech-Jones, also gave qualified support to competition between courts.
Anglo American to sell Queensland coal in big shrink, spurning BHP
Anglo American will sell or shut everything except its copper, iron ore and potash mines as part of a strategy to dodge BHP’s advances.
Arena to receive $5.1b to back renewable energy
A big winner is the Australian Renewable Energy Agency, a body threatened with abolition a decade ago.
Optus denies ‘cloaking’ Deloitte report on 2022 cyberattack
A press release published after Optus’s 2022 cyberattack had legal purposes, even though they were never mentioned, Optus has argued in a court appeal.
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Markets
ASX retail, property stocks to rally from budget boost
The “inflationary” tones from the federal budget could provide a fresh tailwind for the sharemarket, especially for retail and real estate stocks, according to brokers.
Producer prices leap as US inflation remains sticky
The unexpectedly high readings may raise concerns on Wall Street and in the Federal Reserve.
Australian ETF winners had returns as high as 153pc
US megacap tech stocks and cryptocurrencies proved profitable investments in the last year, according to the latest top-performing ETF data – alongside some other surprise standouts.
Investors weigh whether to chase China’s new bull market
The 27 per cent surge in Chinese stocks this year continues to wrong-foot many asset managers, but some are cashing in following a disappointing few years.
What happened overnight? US markets rallied on megacap techs
Australian shares were set to advance. Budget details in focus. Nasdaq broke its closing record high. Meme stocks extended their surge. Bitcoin struggled.
Opinion
Chalmers crumbles and gives up spending restraint
Jim Chalmers is like a bloke who successfully dieted for two years but crumbled after someone shoved a bucket of KFC under his nose.
Political editor
Budget spending spree that locks in a decade of deficits
Given all the good luck since coming to office, there are no excuses for Labor not running successive substantial surpluses to repair the budget buffers and start repaying the pandemic debt at this point in the cycle.
Editorial
US-China trade war choices for Chalmers’ green budget
The new incentives for critical minerals and green hydrogen are about more than industry policy. They will play out in a global contest over rival political systems.
Columnist
Chalmers’ Made in Australia is just a drop in the bucket
The new strategy is just a drop in the bucket compared with the US, and taxpayers can be relieved that the treasurer has been remarkably frugal in its funding.
Columnist
Why the student protests make me optimistic about the future
If there is any failure in Australian universities it more likely lies with administrators, rather than student bodies.
Columnist
Gas critics are signing up for coal and candles
The climate movement needs to ask itself what is worse: gas in the new energy mix, or coal that lingers for longer.
Former Labor minister and economist
Reports
BOSS Best Places to Work
The awards celebrate the achievements of the best small, medium and large organisations and nine sector winners.
Politics
Victorian parliament bans MPs from wearing keffiyeh
Victoria has joined a Canadian province in becoming one of the few parliaments in the world to ban MPs from wearing the keffiyeh.
Tax fraud, capital gains tax crackdown to raise $3.3b
The budget includes a broad crackdown on tax fraud, the shadow economy and the avoidance of capital gains tax by foreign residents, which Labor hopes will raise $3.3 billion.
Decade of deficits to spark debt interest surge
While Treasurer Jim Chalmers was spruiking debt in 2023-24 being $904 billion, gross debt is forecast to rise sharply in the years ahead.
The budget in five key charts
The five key graphs to understand the government’s latest federal budget.
ASIC staff motivation, satisfaction, stress hit critical levels
A confidential staff survey made public through a Senate inquiry on Tuesday showed the regulator had just two out of 12 outcomes at average or desirable levels.
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World
Putin to meet ‘dear friend’ Xi in China, defying US
The Russian president is set to arrive in Beijing, underlining the key relationship as China faces growing US pressure to curtail support for the war in Ukraine.
New US tariffs on China could help Australian critical minerals
It’s not just the federal budget that could boost Australia’s critical minerals exports, but also a new round of US tariffs on Chinese imports.
The reclusive billionaire turning Georgia towards the Kremlin
Georgia’s former prime minister Bidzina Ivanishvili has returned to politics for a third time, and is taking a risk by supporting an inflammatory new law.
Biden ramps up tariff regime on $27b of China imports
Following a four-year review on trade with China, US President Joe Biden will not only keep the tariffs put in place by Donald Trump, but ratchet up others.
- Analysis
- Greensill Capital
Why this Trump acolyte is key to finding some of Greensill’s billions
The fight to recover funds owed to Credit Suisse clients has landed with West Virginia coal baron and senate hopeful Jim Justice and a small Virginia bank.
Property
- Exclusive
- Property development
Former AFL star pays $190m for Cranbourne Golf Course
The 70-hectare site in Melbourne’s south-east will support up to 1500 new homes with an end value of about $1 billion.
Why would anyone want to invest in Melbourne’s housing market?
Some experts are predicting Melbourne’s housing market to bounce back strongly in the next two years, but others warn about getting in too early.
- Exclusive
- Luxury property
Retiring Reece chair lists $12m family mansion in South Yarra
Melbourne-based Reece chair Tim Poole and his wife Jane have listed their South Yarra home, Atherley, after 24 years owning the Italianate mansion.
For $490 million, last private land in Arctic archipelago can be yours
The massive tract of land could be an investment project for a high-net-worth individual looking to make an impact as an environmentalist.
Demand for housing and sheds to drive Frasers forward
Frasers’ booming Australian residential and industrial businesses will help drive profits at the Singaporean giant, after they fell at the half-year stage.
Wealth
Forget Boomers. Millennials, your next landlord could be a best mate
For decades, Millennials and Generation Z have blamed Baby Boomers for locking them out of the housing market. But what happens when wealthy Boomers start to give their kids cash?
From babies to Boomers: what’s in the budget for you
The 2024 federal budget includes power bill relief, more training places and additional rent assistance.
Super on parental leave adds $4250 to retirement balance
The government will also spend $55.6 million over four years to establish the Building Women’s Careers program.
Technology
Google steals OpenAI’s thunder with something 15 times bigger
The new version of Gemini can write poems about objects it’s seen, or even tell the user where it last saw her glasses.
For the Taliban, Afghans’ best status symbol is a $2120 iPhone
Commerce is thriving for some entrepreneurs despite the difficulties imposed by the country’s rulers.
Judge rebukes ‘clear case’ of government overreach on stabbing video
A Federal Court judge said a global ban would not be a “reasonable” step and would likely be ignored by other countries.
Work & Careers
- Exclusive
- Workplace
Grant Thornton adopts nine-day fortnight, but staff have to earn it
The accounting firm’s year-long trial coincided with record productivity, employee retention and profits.
Why this event maestro takes a bath every single morning
Katerina Grant is the founder and director of The World Of, an events agency that produces experiences for clients such as Hermes, Louis Vuitton and Tommy Hilfiger.
Life & Luxury
How Anya Taylor-Joy morphed from chess nerd to action hero
Despite being the star of Furiosa, the actor’s status was cemented by a small role in another big film set in a desert.
- Driving With Tony Davis
- Motoring
An eventful test drive of the new McLaren 750S, priced from $586k
In a nutshell, it’s a pure and precise driving experience, even on city roads (notwithstanding an ill-timed software glitch).
Older adults are having sex – but there is an increasing downside
Experts have offered five reasons that help explain why sexually transmitted infection rates are rising among ageing people.
The elite US ski town that flies under the radar of many Australians
It’s the American resort that’s bred the most winter Olympians. After a $US200 million overhaul, Steamboat’s 1500 hectares across six peaks is the place to be.
Six tips for styling a room from David Flack
Incongruous and ingenious, the work of this designer has influenced interiors all over the country. Here, he takes a humble den and makes it a haven.
