Labour Discovers Reverse Gear
The mortgage broking industry has welcomed Labor’s retreat on controversial capital gains tax changes, describing it as a “complete backflip”. Which sounds harsh. Politicians much prefer phrases like “listening”, “consultation” and “evolving our position”.
The lesson? Governments occasionally discover that people don’t enjoy paying more tax and also that nothing improves policy design quite like the sound of voters sharpening pitchforks.
HSBC’s Scam Protection Plan: Hope
HSBC Australia has been ordered by the Federal Court to pay a $35 million penalty because it failed to adequately protect customers from scams.
The case was brought by ASIC which argued, in effect, that when customers report criminals stealing their money they prefer a response slightly faster than waiting for the next appearance of Halley’s Comet.
The irony is sweet. Banks have spent years telling customers to be careful online while occasionally forgetting a small detail – they also have to help.
Big Four. Small Problem. Ethics. Again
The accounting profession is once again discussing ethics, which is always reassuring in the same way it’s reassuring to hear your pilot say “let’s revisit this whole landing concept again.”
Chartered Accountants Australia and New Zealand says it is “deeply disappointed” by the investigations into the actions of KPMG and the recent embarrassment faced by PWC. In corporate language, “deeply disappointed” sits somewhere between “this is awkward” and “please stop making headlines”.
After years of major consulting firms advising companies and governments about governance and compliance, it turns out some people are now asking whether the advisers need some advising.
Housing Market Meets Gravity
Australia’s housing market appears to be slowing, causing the traditional reaction that occurs when property stops rising: confusion, panic and economists appearing on television.
For years Australians have treated property less like an investment and more like a magic machine where everyone gets rich by selling increasingly expensive houses to each other.
The machine still works. It’s just making some strange noises.
RBA Delivers Another Motivational Speech
The Reserve Bank has warned Australians the inflation battle could drag on and conditions may remain difficult.
Fantastic news. Because after years of rising prices, higher mortgage repayments and painful grocery bills we all needed a spreadsheet explaining there may be more character building ahead.
Inflation has eased from its peak, but the RBA remains cautious. Central banks spent years trying to convince everyone inflation was temporary. Now they are trying to convince everyone fixing it takes time.
Economics: the only industry where saying “it’s complicated” counts as both an explanation and a forecast.
The Bank of Mum and Dad Needs Paperwork
New research shows many parents who are helping children buy property are handing over money without formal agreements.
Which is so beautiful.
And, potentially, the cause of long-drawn out legal disputes where everyone explains they “never thought this would happen”.
Parents are increasingly becoming the unofficial fourth pillar of Australian housing policy — somewhere after banks, governments and blind optimism.
Meanwhile, debate continues about the spending habits of young Australians and the so-called cost-of-living crisis. One side says the younger generation needs to cut back on expensive clothes, cars and avocado toast (see the link). The other points out that previous generations bought houses when the deposit didn’t require selling several organs and finding buried treasure.
Both arguments contain some truth. Which is annoying because it ruins a perfectly good shouting match.
Free Chanel With That?
With the housing market showing a slight cooling in Sydney and Melbourne buyers have discovered the word “no”. That’s led some vendors to throw in expensive inducements to get people in the door. One seller reportedly dangled a Chanel handbag. Another threw in a high-end sports car. Somewhere a real estate agent is probably offering a free emotional support peacock with every settlement.
After years of agents explaining why buyers needed to bid harder and more irrationally, the power has shifted. Buyers are now suffering from FOOP — Fear Of Over Paying. Australian property isn’t crashing. It’s just experiencing something many participants haven’t seen for years: a negotiation.
The Final Word
So, there we have it. A government reversing without admitting reverse exists. A bank discovering scam protection is apparently part of banking. Consultants getting lessons in consulting. Another week proving the financial system isn’t broken. It’s just performing exactly as designed.
