In late June, during an online panel discussion hosted by ANU’s Crawford School of Public Policy, RBA Governor Philip Lowe said what many had already assumed: “I think it’s likely we’re going to see interest rates at their current level for years”. So it was no surprise that rates have been held at 0.25% for July – where it looks they’ll be staying for quite a while. Let’s look at what that means for commercial and asset finance and how your business could benefit. Primed for recovery?  There’s been a lot of talk about how the residential property market will be affected by long term low rates – as well as by the obstacles 2020 has placed in front of the Australian economy. But what the RBA does with rates also has a huge impact on commercial loans and asset finance, too. Take, for example, the situation coming into early […]

After a few months stuck at home, you’ve probably put a lot of time to good use; whether it’s dusting off your application for MasterChef 2021, ticking off the last item on a very long and overdue to-do list, or perhaps you just hid in a couch fort and trawled the darkest corners of Netflix (Really, Fuller House?) Refinancing might be the last thing on your mind with everything that’s happening, but here are five solid reasons why it should to be first. 1. You can (most likely). You might not even be aware you could do it. But since many home loans are refinanced with the intention to save money, the timing could be better than ever. However while that sounds too good to be true, the decision made by your bank or lender will be based on your eligibility for refinancing. So, for a lot of Australians facing […]

I think he’s right. The pace and degree of change has not only been radical but has shown us what is possible – including much we would’ve considered wishful thinking just a few months ago. And so much of that emergency response includes attitudes and ways of working we should keep, whenever and however the pandemic ends. ” What is the purpose of “the office” and what changes if these properties are no longer where the vast majority of work is done?” I’ve been having many conversations with chief executives and other leaders operating in financial services, retail, public sector and technology. I’ve compiled a list of seven strategic areas that are increasingly dominating the agenda of my conversations: 1. The future workplace Where do we do work, what is the purpose of “the office” and what changes if these properties are no longer where the vast majority of work is done? More than just working from […]

With the coronavirus crisis slowly coming under control, minds must now turn to the policies needed to get the economy back on track for full-employment growth. The government and the central bank have come to the rescue of the economy with massive spending supported by the Reserve Bank of Australia’s (RBA) purchases of the government’s debt at near-zero interest rates. “RBA governor, Philip Lowe, reminded the public in April of the need to reinvigorate the country’s growth and productivity agenda.” But these supports for the economy come at a cost. Someone must pay the real cost of government services and transfer payments. In the current low-inflation environment, a continuation of the present combination of fiscal and monetary policies would see that cost fall initially on savers who are inflicted with artificially low interest rates. Over time, however, the cost would be shared across the wider economy, as low interest rates encouraged governments and business to […]

Young Australians need to be prepared now for the next major financial shock as the coronavirus pandemic reveals some families do not understand the long-lasting impact of the decisions they are making, experts say. Key points: Young people are running into trouble with their finances as soon as they leave home Research shows a quarter don’t have a basic understanding of personal finances Instagram and social media fuelling a ‘buy now, worry later’ attitude Financial Basics Foundation Chair Brigid Leishman said hundreds of thousands of Australians have been plunged into financial distress since the COVID-19 outbreak and a lack of personal finance knowledge made them vulnerable to more hardship. Ms Leishman said personal finance should be a standalone subject in high schools to give young people a formal financial education. “Financial literacy is a critical life skill,” she said. “We know from last year’s research that less than one in four young […]

Even if you’re not one of the million plus Australians who is unemployed or under-employed because of Covid-19, you may be facing new or added financial pressure. Maybe your job has changed, or bills are piling up, or there’s a financial hangover from before this all began? Keeping a clear head, finding accurate information and taking time for yourself will all help as you make your way through. No one knows yet what’s ahead and planning for an uncertain future can feel difficult, but if you’re feeling distressed by your finances during this time, here’s what you can do. Read up on the government’s economic response Australia’s federal government has put out a host of economic announcements. Let’s break down the main ones: A $130 billion JobKeeper Payment was established to allow impacted businesses to keep paying their employees – $1500 per fortnight, flat rate. A Coronavirus supplement is available to people […]