New Zealand's horror unemployment surge – as Kiwis ‘vote with their feet'
Unemployment across the ditch has reached 5.2 per cent as New Zealand businesses cut jobs because of the country's faltering economy.
The current jobless rate in New Zealand is the highest it's been in almost five years, with 158,000 people unemployed in the June quarter.
Wage growth has also slowed to 2.4 per cent, down from 4.3 per cent in the June 2024 quarter, according to Wednesday's figures from Statistics New Zealand.
The numbers paint a grim economic picture for Kiwis and suggest more of them will look for better opportunities and higher pay in Australia.
There was a net migration loss from New Zealand to Australia of 30,000 people last year – the biggest loss since 2012, and a trend that looks set to continue.
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New Zealand's Finance Minister Nicola Willis said she expected the jobless figure to improve. Picture:Those migrants will likely contribute to upward pressure on Aussie house prices, while the housing market in New Zealand continues to decline.
New Zealand is no longer in a recession, having recorded consecutive increases in GDP over the past two quarters, but it is still dealing with the aftershocks of the pandemic and uncertainty brought about by US President Donald Trump's tariffs.
Wednesday's jobless figures will likely support another 25 basis point cut to New Zealand's official cash rate later this month, bringing it down to 3 per cent, compared with Australia's 3.85 per cent.
New Zealand Finance Minister Nicola Willis said the numbers were better than forecast and she expected unemployment to come down later this year, amid $6 billion in public infrastructure investment and a new fast-track approvals process for developments.
'Now, that is not to say that we are satisfied with this rate of unemployment,' Ms Willis told reporters on Wednesday.
Labour lashed out at National's Christopher Luxon over the unemployment rise, calling him 'out of touch'. Picture:'We are concerned for every New Zealander who wants a job and can't get one, and that is why we have worked so hard since coming to office to rebuild this economy.
'...We have a $10 billion deficit this year, which we are forecasting will increase next year. That's because we believe it is not the right time to stop spending on health, on education, on the police.
'At the same time, we have set out a four-year plan to get the books back in balance because every New Zealander knows, you can't borrow forever.'
BNZ chief economist Mike Jones described the Kiwi job market as 'really tough'.
'There are more people looking for work, or looking for extra work than there are opportunities available,' Mr Jones told NZTV's Breakfast program.
He thought rising unemployment was related to last year's recession and described the country's economic recovery as 'stop-start'.
'Firms haven't felt confident in the economic environment to get going, hiring again,' he said.
'I think for the improvement that we'd all like to see in the labour market, we are looking at a picture that is probably sliding into next year.'
Labour lashed out at National's Christopher Luxon over the unemployment rise, calling him 'out of touch.'
'While thousands of people are out of work and struggling to pay the bills, Luxon is looking after property speculators and fossil fuel companies,' Labour's finance spokesperson Barbara Edmonds said.
She added Kiwis were 'voting with their feet' and moving to Australia to find work.
Originally published as Kiwis 'vote with their feet' as unemployment surges in New Zealand
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ABC News
2 minutes ago
- ABC News
Identity of NSW man behind $19m 'ethical' internet scheme horrifies customers
It was pitched as the opposite of the dark web, an "ethical" version of the internet, raising as much as $19 million from backers sold on an Australian man's promise of the "Lightweb". But after 12 years and funds from up to 2,000 "mum and dad" investors from all over the world, the Equilux Lightweb still has not launched. Many customers are now pulling out of the ambitious scheme after learning the man behind it has not been using his legal name, and that he has previously been sanctioned by the corporate regulator, the Australian Securities and Investments Commission (ASIC). The ABC can reveal that Lightweb's founder — David Stryker — is really David Dayan Sevelle, a NSW man the financial watchdog sued in 2006 for running an unregistered investment scheme that left 70 "unsophisticated" investors out of pocket to the tune of $13 million. The financial watchdog shut down the scheme and imposed permanent bans on Mr Sevelle. ASIC confirmed to the ABC it was now making "preliminary inquiries" into the Lightweb scheme. It comes as Mr Sevelle, currently residing in Thailand, has been holding weekly "meritocratic" training over Zoom, teaching his followers how to behave morally for when the alternative internet launches, while preaching that "transparency is key". Do you know more about this or have a similar story? Email The Lightweb claims to be a superior, safer version of the internet through its requirement that users verify their identity to stamp out paedophiles and other online criminals. "It was going to be a platform that was effectively impervious to corruption," said Sydneysider David Coffey, who was won over by the premise and ended up putting $160,000 into the Lightweb project. But Mr Coffey desperately wanted out as he learned more about the company's founder in 2023. "He [Sevelle] moved to Thailand, which really raised a hell of a lot of eyebrows," he said. "Then we found out about the ASIC stuff and I started to get really uneasy." Mr Sevelle declined to be interviewed by the ABC because: "We are preparing for a Website Launch [sic] and will do press releases accordingly at that time." He did send lengthy responses to questions via email. Those involved in the Lightweb scheme have not been buying shares. They have been pre-purchasing advertising slots, called broadcast certificates, for when the platform goes live. It means the venture is technically not an investment scheme, and therefore does not require a financial services licence. It also does not receive as much scrutiny from regulators. The ABC has obtained one broadcast certificate where Mr Sevelle signed off under the name David Stryker. In his statement to the ABC, Mr Sevelle said he had not lied about his real identity and was simply using a "professional name" the same way actors, writers and influencers did. He said it was a "privacy barrier" to protect "unwanted commercial IP theft attempts" and also because the digital currency industry "can be very dangerous with nefarious and bad actors". "I have never hidden behind this name and still operate my own company and register domain names and trademarks and IP under my name," he said. "I wonder if you were interviewing Marilyn Monroe [if she was alive], P!NK, John Wayne [if he was alive], Nicholas Cage, Emilio Estevez and Katy Perry and many others that you would be accusing them of being deceptive "fake namers" like you did me." An information pack that a sales agency distributed in 2017 promised massive returns on these broadcast certificates, projecting they would sell for between eight and 25 times their original price. The internal document also stated the Lightweb platform would be worth $10 billion when it finally launched. Mr Sevelle told the ABC, "We never promise a fixed rate of return", and said this document was not "authorised marketing content". "When discovered, our management team pulled the document from circulation immediately, and this led to, in part, the triggering of formal dissolution of the sales agency," he said. He went on to say he was confident "we will exceed the 25 per cent product value increase" in the future. The Lightweb program has expanded its offering and announced plans to create its own virtual currency, including one called the StrykerCoin. To date, the platform still does not have an active website or a product and missed its own most recent deadline of a May launch. Mr Sevelle said there had been multiple delays due to "outside influences" such as "limited early development funding", the COVID pandemic, and the cost-of-living crisis. He said he expected the platform to launch within 90 days after dealing with a "trademark challenge". The Lightweb project operates under companies registered in Australia, New Zealand, the UK and the US, including Create2tech Pty Ltd, Stryker Design, StrykerFusion and Stryker Design International. Mr Sevelle's third wife, Noppakao Yingnok, a Thai and Australian citizen, is registered as the sole director of these businesses. When the ABC asked Ms Yingnok questions about the operations of her companies, she said to "talk to David". Mr Sevelle said he shared responsibilities between himself, the leadership team, the consulting team, and his wife in managing the businesses and was a "key decision maker". An internal report from 2023 showed Mr Sevelle was not the director of the Lightweb business but appeared to have been making a sizeable amount of money. A company called Elleves Pty Ltd, which is "Sevelle" spelt backwards, was paid $250,000 in "consulting fees" in 2020 and 2021. Mr Sevelle is listed as the sole director of Elleves. In his statement to the ABC, Mr Sevelle said he had originally loaned money to the Lightweb companies to get them off the ground and that the $500,000 payment to Elleves Pty Ltd was an "accumulation over years" of uncharged fees. He claimed there was no direct benefit paid to him and that he was paid a salary of $50,000. Concerns among Lightweb members mounted when Mr Sevelle and Ms Yingnok moved overseas to Thailand, permanently, in early 2023. Around the same time, news of Mr Sevelle's real identity broke among his supporters, and his past was laid bare. ASIC sued Mr Sevelle in the Federal Court in 2006 for running a property venture that "made statements to clients that were misleading or deceptive" and for "improperly assisting clients to obtain loans to invest in the scheme". Mr Sevelle ran a slew of property companies, trading under the name Mega Money, operating in the Central Coast, Newcastle, Hunter Valley, South Coast and Canberra regions, with the intention of pulling together enough mum-and-dad investors to pay for stamp duty and development approvals on blocks of land, and sell them at a profit to developers. But ASIC froze the Mega Money companies by court order, and eventually they were all forced into liquidation. In an affidavit filed with the Federal Court, the court-appointed liquidator, Justin Walsh of Ernst & Young, said Mr Sevelle spent "significant sums of money" from the company on "personal purposes". Those included an $86,000 antique "sloop" yacht, moored in the Toronto Yacht Club, and also "a large number of cash withdrawals" from ATMs. "Large sums of money" also went into Mr Sevelle and his then-wife's personal house and two investment units. He was not married to Ms Yingnok at that time. Two of these properties were sold before the liquidator could lodge a caveat to protect creditor interests at the site. "The [company] accounts were replete with inconsistent treatment of recurring transactions, unexplained transactions, and fundamental balancing errors," the liquidator added. The "majority" of investors had borrowed against their homes to invest in the scheme, and many had dipped into their superannuation as well, Mr Walsh's report noted. Mr Sevelle was banned permanently through court-ordered enforceable undertakings from providing financial advice, dealing in financial products, and carrying on a financial services business, including through the promotion and operation of any managed investment scheme. Separately, ASIC also permanently banned Mr Sevelle from financial services. "It definitely affected our retirement," said a Mega Money investor from Maitland, near Newcastle. Another couple from the local area, who lost $90,000 from the property scheme, said of Mr Sevelle: "He could probably sell coal to Newcastle [like] ice to Eskimos. We fell into that trap quite easily." Mr Sevelle told the ABC that "there was no impropriety" in the Mega Money collapse and that he was not fined or charged over anything. "ATM withdrawals, antiques, jewellery, any personal purchases made were from post-income tax paid earnings for those personal purchases," he added. As Lightweb customers learned the full extent of Mr Sevelle's past, he released a lengthy statement to explain the situation and his decision to change his name. He claimed ASIC found a "glitch" in the way he ran his property companies where he was treating all his businesses as one, which meant he was over the limit of investment funds and was running an unregistered managed scheme. "I had been treated like a pariah for no reason other than one technical accounting glitch," he wrote. "I apologise I did not disclose this to you at the initial outset of the business recruitment process, but I am sure you will appreciate my position and my actions to best nurture the project. "I do not wish my name to be associated to this project till we are secure, launched and commercially sound. "I hope you can understand this explanation … Transparency is key." He signed off as "David Sevelle AKA David Stryker (professional name)." Despite the explanations, a 2023 company document showed 90 people demanded refunds from the Lightweb scheme. Customers had been promised full refunds, but Mr Coffey, the Sydneysider who put $160,000 into the Lightweb project, alleged the company was "putting up walls everywhere", including placing a limit on how much he would receive monthly. He ended up having to engage lawyers, and it took until the end of last year to get all his money back. "Our client is understandably concerned about the legitimacy of your business and ability to refund his investment pursuant to your agreement with him," the legal letter, addressed to Noppakao Yingnok and David Stryker, read. "Our client has since been advised that you will now be paying the remainder of the refund by way of $10,000 payments over 10 months. "Your company has no standing to set these repayment terms with our client. Your contract with our client provides that a full refund is available upon request." Mr Sevelle told the ABC that, for cashflow reasons, refunds of more than $10,000 could not be paid in a lump sum. "It is not prudent to do so, as we are not a bank," he said. "No-one was ever boxed into staying. No startups or scale-ups have ever refunded pre-launch that we are aware of." Mr Sevelle has previously told his customers on a video call that the Australian Taxation Office (ATO) has audited the business numerous times due to the number of self-managed super funds in the scheme. The ATO told the ABC it would not comment on specific cases or confirm if an investigation was underway. In a statement, a spokesperson said: "The ATO encourages anyone setting up an SMSF [self-managed super fund] to ensure they understand what is involved in running their own super fund, and that they are ready and able to meet these obligations." The ABC has spoken to multiple people, who did not want to be identified, who said the company's most recent sales rhetoric involved encouraging investors to mortgage their homes to obtain more money. Morgan, 26, from Newcastle, said her father was so taken with the Lightweb idea he was considering retiring early so he could put his long service leave into the scheme. His family convinced him not to, but he is now looking into mortgaging the family home. He has already put $40,000 into the scheme. "It's definitely caused a lot of tension, especially because I feel like Mum and Dad have worked so hard for everything they have, and to have someone convince my dad to hand that over, it's just mind-boggling, like it's insane," Morgan said. Barry Urquhart, 66, from Newcastle, bought $7,000 worth of broadcast certificates several years ago. When he tried to put in more money through his superannuation, he said his accountant would not authorise it. "He said it [the Lightweb] was nothing; it was just a dream," Mr Urquhart said. Mr Urquhart has since gotten his money back and reported the company to ASIC. Mr Sevelle said in his statement to the ABC that: "The truth is that if they [customers] are no longer in our organisation and they have been refunded what they were entitled to, they of course will not want us to succeed, as our success will then be their failure." "I am sorry for both you and I, that you did not see this as a bigger story of innovation, empowerment, job creation and unlimited opportunities," he said. Mr Sevelle "will dance you around like you're on Dancing with the Stars," said one Lightweb customer who did not want to speak on the record. "He likes to use so much financial technical jargon and acronyms to confuse the hell out of people," they said. Others have described Mr Sevelle as having the "gift of the gab" and went as far as saying it felt like a cult of personality. Mr Sevelle has been holding hours-long "moral" training sessions every week over Zoom for years, where he teaches his followers how to behave like "meritocrats" for when the Lightweb finally launches. Some of these sessions involve movie nights, such as watching The Big Short and Eat the Rich. "There were so many people who drank the Kool-Aid and were calling him the Messiah," said Mr Coffey, the Sydney customer who had taken his money out. "It was constantly reinforced how blessed we were to be in the company at this time of imminent launch … so we had better buy more of the upcoming new investments before it's too late," said another customer, on condition of anonymity. ASIC said it was "aware of concerns related to these entities and is making preliminary inquiries". The financial regulator added: "Speaking generally, super-switching misconduct is an increasing concern for ASIC." "We are seeing more and more reports of people being targeted by pushy, high-pressure sales tactics into switching their super into high-risk, complex schemes," a spokesperson said. "Other red flags include high-pressure sales tactics, poor or even non-existent product disclosure, and promises of unrealistically high returns." Mr Sevelle said he welcomed both ASIC and the ATO looking into the Lightweb businesses.
ABC News
2 minutes ago
- ABC News
The aggressive courting of Tasmania's crossbench MPs is heating up with two weeks until fresh no-confidence motion
After weeks of uncertainty, Tasmanian Premier Jeremy Rockliff's bid to be recommissioned for another term was endorsed by the state's governor on Wednesday morning. The decision led to bookmakers paying out on bets for the election, and plenty of big grins from Mr Rockliff. And he's been hard at work finalising a shake-up to his cabinet that could be announced as soon as Thursday morning. But things aren't as finite as they seem. In just two weeks, state parliament will be recalled. And Labor leader Dean Winter has confirmed Mr Rockliff's government will face a motion of no-confidence when that happens, barely two months after a successful no-confidence motion triggered July 19's snap state election. So how can it be the case that after an election that was supposed to resolve all the uncertainty, we're back here again? Firstly, the 2025 election no-one really wanted delivered an eerily similar parliament to the one elected a year before. In 2024, there were 14 Liberals, 10 Labor MPs, five Greens and six other crossbenchers — three Jacqui Lambie Network MPs and three independents. This time around, there were again 14 Liberals, 10 from Labor and five from the Greens, and six others on the crossbench. The only real change is that there are five independents, and one Shooters, Fishers and Farmers MP. The Liberals are still in minority and the tensions that existed before the election — about a lack of transparency from the government, concerns about its handling of big projects and the budget — are still very live. Also, unlike last year's election, where Mr Rockliff's reaction to winning just 14 seats was to immediately move to secure four confidence and supply agreements in a bid to deliver stability, this time he hasn't tried. He's argued the agreements are good, but not necessary. Then there's the matter that at least 19 of the 35 lower house MPs are either Labor MPs or from the progressive side of politics — the five Greens and independents David O'Byrne, Peter George, Kristie Johnston and Craig Garland. That, plus the lack of confidence and supply agreements, has opened the door for Labor, who didn't try to govern after the last election in 2024 or two months ago following the successful no-confidence motion it moved to step up negotiations with the crossbench. That's the other huge difference to what unfolded two months ago. Labor is actively trying to form a minority government of its own, despite winning just 10 seats. To do that, it needs the support of the Greens, plus at least three other crossbenchers. So there are two parties trying to win over the six non-Green members of the crossbench, and only one of them has picked a side, with independent MP Craig Garland saying he'll vote for a no-confidence motion and support the formation of a Labor government. It means those five other crossbenchers — including three entirely new to parliament in independents Peter George and George Razay and Shooters, Fishers and Farmers MP Carlo Di Falco — have less than two weeks to decide if they want to depose Mr Rockliff and install a government led by Mr Winter instead. They're all being aggressively courted by the Liberals and Labor, who will meet with all six on Thursday. In her decision published on the Government House website, Governor Baker said Mr Rockliff's incumbency meant he had the right to remain in office until parliament decided whether it had confidence in him. And with Tasmania's constitution requiring premiers and ministers to be commissioned within seven days of the election writs being delivered, Governor Baker says she could not afford to wait for a parliamentary vote. "I consider myself bound to make an appointment within that period, because the state must not be without a government," Governor Baker said. But the return date of August 19, much sooner than some were expecting, means that the political uncertainty won't last for too much longer. Within two weeks, Tasmanians will have an answer to the question an election couldn't solve: Who's going to be the state's next long-term premier? Both sides have mounted arguments about why it should be them. But the biggest task now sits with Mr Winter, who sat at the helm while his party suffered a 3.1 per cent statewide swing against it and failed to win a quota in his own right in the seat of Franklin. He's got to make Tasmanians understand why the parliament is again debating kicking out a premier who received more than two quotas in his seat of Braddon. And convince people that this time, a no-confidence motion is a positive move to install a Labor government, not a negative tactic to oust a popular premier when he's got no plan to lead the state himself. And he's got to convince the crossbench, including a Greens party he's at least publicly ignoring, that he's the right man to lead the state, despite his party being rejected at the election. And convince them to risk facing public backlash and support a no-confidence motion, knowing full well all the commentary that doing so will lead to. Despite the governor's decision, Tasmanian politics is still extremely turbulent. And there will be huge consequences for the party, and the leader, caught on the wrong side of the power play that's still got weeks to unfold.
News.com.au
32 minutes ago
- News.com.au
Assistive tech targets market growth while improving lives
Demand for assistive technologies on the rise with growing global ageing population and awareness of disability inclusion Cochlear one of most high-profile ASX assistive technologies companies with legacy spanning more than 40 years Control Bionics helping thousands around the world communicate and connect in ways once thought impossible With a rising global ageing population and awareness of disability inclusion growing, demand is increasing for technologies that help people maintain independence and improve quality of life. Assistive technologies go beyond medical diagnostics or treatment by directly enabling individuals to hear, see, communicate and perform daily activities they might otherwise struggle to do. And while assistive technology delivers clear social benefits and aligns with ESG goals, it's also targeting a rapidly expanding market. Globally the assistive tech market was valued at ~US$22.9 billion in 2023 and is projected to reach US%36.6 bn by 2033, reflecting a compound annual growth rate (CAGR) of 4.8% throughout the decade. In Australia, the assistive technology sector is projected to expand from ~US$720 million in 2023 to more than US$1.7bn by 2030, driven by demographic shifts such as an ageing population and rising prevalence of long-term disabilities. Australia's substantial healthcare expenditure is also considered a pivotal driver for demand in the Australian disabled and elderly assistive device market. Global pioneer in hearing implant technology From restoring communication for those with severe disabilities to preserving vision and enhancing hearing, Australian companies have a proud history in assistive technologies with ASX blue-chip Cochlear (ASX:COH) one of the most high profile. Cochlear stands as one of the world's foremost innovators in assistive hearing technology with a legacy spanning more than 40 years. Cochlear implants and bone conduction devices are life-changing products, which have enabled hundreds of thousands of people globally across all ages to hear and communicate more effectively. Cochlear CEO and president Dig Howitt told Stockhead the organisation continued to progress new technology and care models, having recently launched the Cochlear Nucleus Nexa System, the world's first and only smart implant system. "The Nucleus Nexa Implant is the outcome of a 20 year investment in R&D and is the first cochlear implant to run its own firmware," he said. Howitt said similar to smartphones, the implant firmware could be updated to enable new features and access future innovations. "Recipients will now have access to a better hearing experience with both implant and sound processor updates," he said. "The Nucleus Nexa System builds upon Cochlear's industry-leading portfolio of electrodes, which are designed to optimise the electrode-neural interface and protect cochlea health and opens the door to even greater hearing potential for patients into the future." Enhancing sound in real-world situations While Cochlear may dominate the implantable hearing device market Brisbane-based Audeara (ASX:AUA) is carving out its own space in personalised listening solutions that sit between consumer audio products and clinical hearing aids. The flagship Audeara headphones and TV bundles the company started with use built-in hearing checks to create tailored sound profiles, ensuring clearer, enhanced listening experiences. Audeara managing director James Fielding told Stockhead the features made the devices valuable for those with mild to moderate hearing loss, or for people using cochlear implants and hearing aids who got an incredible entertainment experience when the sound was tailored to their needs. Building its portfolio Audeara launched Buds into its clinic networks this year. Unlike conventional hearing aids, Buds focus on enhancing the sound in real world situations like a busy cafe while also staying true to their entertainment focus, enhancing calls, TV and music. "We believe assistive technology should enhance the human experience without compromise," Fielding said. "At Audeara, our personalised hearing solutions empower people to connect more deeply with music, conversations and entertainment, regardless of their hearing ability." The technology also supports accessibility through government funding programs including NDIS, DVA and the Hearing Services Program, broadening its reach and affordability. With distribution in 1,500 clinics across Australia and more than 3,000 globally, including partnerships with major networks like Specsavers and Amplifon, Audeara is well positioned to capture growth in a market that's both socially impactful and commercially attractive. "The future of assistive technology is about inclusion, not limitation," Fielding said. "Audeara's mission is to ensure that hearing health solutions are seamlessly integrated into everyday life, combining clinical credibility with consumer-level accessibility." 'Giving communication back for more than two decades' Control Bionics (ASX:CBL) CEO Jeremy Steele describes the assistive technology medical device company as "sitting at the intersection of neuroscience and accessibility". "For more than 20 years, Control Bionics has been at the forefront of assistive technology innovation, helping thousands of people around the world communicate and connect in ways once thought impossible," Steele told Stockhead. Control Bionics has developed the NeuroNode – a wearable, watch-like, wireless non-invasive electromyography (EMG) and spatial sensor device to assist cognitive people with physical disabilities perform everyday functions. He said NeuroNode was globally unique as the only augmentative and alternative communication (AAC) technology of its kind that combined movement and EMG signals into a single platform. "Recognition by the US Centers for Medicare & Medicaid Services, awarding NeuroNode the first HCPCS code for an AAC device in 13 years, validates both the technology and the profound impact it delivers," he said. "We're proud to be a pioneer in the fast-emerging neurotechnology space, empowering people living with conditions like ALS, cerebral palsy and spinal cord injury to reclaim their voice and their independence." Steele said the company's objective was simple but ambitious – to expand global access to the most advanced, intuitive and life-changing assistive technologies available today. "The NeuroNode isn't just a device, it's a lifeline to communication, control and connection," he said. "We believe that every person – regardless of physical ability — deserves a way to engage with the world. "Our team's work over two decades reflects a deep commitment to designing technologies that break through barriers and restore possibility."
