Business Update – 27 July 2022
Welcome back to our Weekly Digest. Read on for the latest updates.
Mortgage payment struggles lie ahead for homeowners
RBA Deputy Governor Michelle Bullock estimates that 30 percent of homeowners will struggle to make mortgage payments as interest rates rise. Payment increases of 40 percent may be seen among homeowners who took advantage of record low fixed rates just five years ago.
Job market may be affected by economic uncertainty
Record numbers of employees are switching jobs in search of greater workplace satisfaction, but with rising inflation and cost of living, some experts say these uncertain economic times may not be the best time to make a move.
ATO reveals which industries are most likely to dodge taxes
The community misses out on about $11 billion in taxes each year. The ATO has released its findings on the industries most likely to contribute to the “shadow economy”.
Another interest rate hike from St. George
St. George increased its fixed interest rates for owner occupier and residential investment loans by up to 0.65 percentage points last week.
Rising interest rates make it difficult to make payments
Last week, NAB boss Ross McEwan urged customers struggling to pay their bills to contact them early on to try to find a solution. Rising rates have made it difficult for many people to pay their bills, and some wait until receiving their final notice to contact them for help.
Why it might be a good time to invest in property
The combination of lower property values and the promise of ever-rising interest rates may mean that it’s an opportune time to invest in property.
How much do you need to retire?
The “million-dollar rule” is likely a myth. The Sydney Morning Herald breaks down how much you actually need to save to retire here.
Even higher interest rates coming
All four of Australia’s big banks expect further interest rate hikes in both August and September. The trend is not unique, as economies around the world have been raising rates in an attempt to combat inflation.
Higher income correlates with fewer cars per household
New data shows that surprisingly, poorer Australians tend to have more cars per household than rich Australians, with the pattern obvious across all states. The trend is explained by higher income earners typically living in prime real estate areas, where a car may not be necessary.
Generational divides apparent when it comes to investment strategies
New research suggests that Gen Z are both the most cautious and the most daring when it comes to investing. The interesting result is likely due to some young people panicking by hoarding what they have, and others trying to achieve wealth by being bold.
Get in touch
Contact us if you have any questions or want to discuss the next steps for your business.
Oracle Accounting & Wealth is located at Suite 31, 89-97 Jones Street ULTIMO NSW 2007. Phone: 02-9715 2977
Liability limited by a Scheme approved under Professional Standards Legislation.
The information in this newsletter / factsheet is factual but general in nature. It should not and is not to be construed as advice at any level whatsoever. Because it contains general information that has not been tailored to your personal circumstances it may not be suitable information for you. You must always seek personal financial or taxation advice prior to acting on this information. Further, as many of the comments in this newsletter / factsheet are general in nature, anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.