New Zealand's Economy Grows by More Than Expected
The economy grew by 0.8% in the quarter, a pace that was well above the 0.4% expansion forecast by the Reserve Bank of New Zealand, curbing expectations that the central bank will lower interest rates further at its next policy meeting in July.
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Yahoo
31 minutes ago
- Yahoo
Mum exposes major issue with $5,000 baby bonus as Australia grapples with declining birthrate: 'BandAid on a gushing wound'
An Australian mum has highlighted how the government's baby bonus would have to be much, much higher if it were introduced in 2025. Former Prime Minister John Howard recently floated the idea of bringing back the $5,000 handout to fix the country's lagging birth rate. The policy was introduced in 2004, and there was a noticeable lift in the number of babies being born while the subsidy was around. But Sydney resident Arabella told Yahoo Finance that a few thousand dollars would do very little to help families in the current economic environment. "I feel like our parents' generation, it was expected to have children and no one questioned, and they made it work," she said. RELATED Families eligible for $11,400 cash boost under federal budget childcare change Hidden $3,000 per year cost of cashless revolt as record number of banknotes hoarded Huge push for four-day work week to become reality for all Australians "But costs aren't the same now. "Everyone wants to argue that they didn't earn as much, but everything didn't cost as much. "University education was also free back then, not like it is now, where HECS debts are being indexed far past what any contribution that the person makes during the year. "These are all issues, and we're ignoring all of them." She called the concept of a baby bonus a "quick fix" that could lure vulnerable or low-income couples into having a child without considering the true cost that comes with that was the baby bonus? Howard lashed previous governments for getting rid of the baby bonus, which started at $3,000 per child and peaked at $5,437 in 2012, before being gradually lowered. At one point, it was indexed to inflation, meaning it would keep pace with the rising cost of living. It also started as a lump sum payment, but was changed in 2009 to be 13 fortnightly instalments. Then-Treasurer Peter Costello's catchphrase for the bonus when it was introduced was for parents to 'have one for mum, one for dad and one for the country". Why are there calls for the baby bonus to come back? Australia's birth rate is currently at 1.50 babies per female, which is a record low, and it's been on a downward slide in recent years. The previous low was recorded in 2020 at 1.59 babies per female, and the rate needs to be at 2.0 to be in the "replacement" phase, which means the two newborns would replace their parents. Back in 2004, the rate was at 1.7 newborns, and the replacement rate was achieved by 2008. In 2022, there were 300,684 babies born. But in 2023, there were only 286,998 babies born. Howard said the current birthrate has hit a "disturbing and depressed level" and believed the baby bonus needed to be brought back to its former glory. Would $5,000 be enough for a family in 2025? Even if you adjusted the maximum payout for inflation in our current time, a reimagined baby bonus would only be $7,463 per child. Arabella had her first child nearly a decade ago, and she said times are very different now compared to then. "The reason [the birth rate] is dropping is because... of the financial and economic implications of having children, other than the fact that there are social and environmental concerns about what world we're bringing kids into," the 34-year-old said. "We're not talking about the cost of living, and just how expensive living is generally, or how expensive housing is, and the fact that we have a housing crisis. "We're not talking about the fact that daycare can cost anywhere between $2,000 to $8,000 per year, out of pocket, per child. "Then there's also career impacts of having a child, and superannuation impacts, which can then affect retirement." While she's discussed having a second child with her partner, they've admitted the numbers didn't stack up, and a newborn would put far too much financial pressure on them, which is a concept shared by many other parents or wannabe parents in her circle. When asked how much a baby bonus would have to be to adequately help a family or parent in 2025, she admitted it was difficult to say. Demographer Mark McCrindle put the number at $12,000. How much does it cost to have a child? It's a tough number to produce because there are so many factors that go into conceiving a child, the birth, and decisions made about raising the newborn once the child in the world. Consumer group Finder looked at several studies and said one child can cost between $159,120 to $548,500 over 18 years. Having two children could cost between $474,000 and $1,097,000 over the same period. Those ranges depended on the socio-economic conditions in that household, which was split into three categories of low, middle and high income. Finder's 2023 report found that hospital costs for the pregnancy alone can be between $726 and $2,400, depending on whether you go public or private. Arabella told Yahoo Finance she opted for private for her son, which she admitted was a "luxury", and said just her obstetrician fees were $4,500. Suncorp's 2021 study found food was the biggest expense for a child, averaging out to be $401 per month per child. Educational costs ($386), housing ($321), savings and contingencies ($318), and transport ($232) also featured highly. In total, each child costs around $3,044 per month, or $36,528 per year. Hidden aspects of having a child that can cost dearly Arabella said her family was currently paying $640 per week for her rental, but explained how they would be forced to get somewhere bigger (and more expensive) to accommodate another child. Then there's the ongoing concern that their landlord could hike their rent every year if they wanted to. The Sydney mum also pointed out how taking a year off work to raise a child can have significant implications for your retirement. Up until July 1 this year, families might have been able to access the government's paid parental leave (PPL) scheme and their own employer's maternity and paternity leave. However, no law required businesses to pay into your super during this time, and the PPL didn't have any contributions either. The start of the new financial year saw the maximum PPL allowance rise from 22 weeks to 24 weeks, and the government will now pay 12 per cent of that to your super. Finder said women typically lose $44,906 in income when they have a child and $4,580 in employer superannuation. By the time you retire, that lack of super during your time off will have ballooned to $46,979 in lost wealth. For men, that loss is much less pronounced at just $5,693 by retirement. Arabella told Yahoo Finance it's hidden aspects like this that might not be immediately factored in when tallying up how much having a child truly costs. China and the US introduce baby bonuses While Australia mulls the idea of resurrecting the baby bonus, other countries are pushing ahead with it. In China, couples or parents will receive $768 per year for every child under the age of three. While over in the US, Donald Trump's proposed "big beautiful bill" includes a deposit of up to $5,000 for households with a newborn. But Aussies on social media felt we should steer clear. "This is a Band-Aid on a gushing wound. We need affordable housing, job security and flexibility," one person said. "It's a dumb policy why incentivise people who can't afford children to have them and not fix the actual issue," another added. "Modern life under capitalism is a waking nightmare of ultra-convenience combined with lack of connection, community and purpose. Fix that, then human beings might start having kids again," a third in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
31 minutes ago
- Yahoo
Australia jobs rebound in July, unemployment dips in major relief
By Wayne Cole SYDNEY (Reuters) -Australian employment rebounded in July as firms took on more full-time workers, data showed on Thursday, pulling the jobless rate down from a 3-1/2 year high and calming concerns the labour market was about to fall over. The upbeat report implied there was less urgency for the Reserve Bank of Australia to follow up this week's rate cut with another in September, and nudged the local dollar up 0.3% to a two-week high at $0.6566. Yet policy makers have indicated more easing is likely should inflation continue to cool as expected and markets remain fully priced for a further quarter point easing to 3.35% in November. "The data are reassuring in that they suggest conditions are not deteriorating quickly," Sean Langcake, Head of Macroeconomic Forecasting for Oxford Economics Australia. "Nevertheless, weak economic momentum and global uncertainty will be strong headwinds for the labour market to overcome through the rest of the year." Figures from the Australian Bureau of Statistics showed net employment rose 24,500 in July from June, when it added a meagre 1,000. That was dead in line with market forecasts, while full-time jobs more than recovered a June drop with a jump of 60,500. In a relief for the economic outlook, the jobless rate eased back to 4.2%, from 4.3%, which had been the highest reading since November 2021. The participation rate ticked down to 67.0%, while hours worked rose 0.3% after a pullback in June. The ABS noted female full-time jobs jumped by 40,000 in July and their participation rate rose a record high of 63.5%. The central bank had expected unemployment to rise to around 4.3% this quarter, which is still low by historical standards, and stay there for the foreseeable future. Leading indicators of labour demand have been solid with vacancies still almost 50% above pre-pandemic levels, while there were 1.8 unemployed per vacancy compared to 3.1 back in early 2020. Business surveys are generally upbeat and consumer spending has picked up in the last couple of months as lower borrowing costs and past tax cuts feed through to incomes. RBA Governor Michele Bullock has also flagged the likelihood of at least another 50 basis points of total easing should core inflation continue to moderate from its current 2.7% pace to the mid-point of the central bank's target band of 2% to 3%. While unemployment is low, there is little sign of wages being an inflationary threat with annual pay growth holding at 3.4% in the second quarter, well below its 2023 peak of 4.2%.
Yahoo
an hour ago
- Yahoo
CommBank partners with OpenAI on generative AI-enabled banking services
Commonwealth Bank of Australia (CommBank) has entered into a strategic partnership with OpenAI to explore cutting edge generative AI-enabled banking services for customers. This collaboration aims to enhance AI solutions for both customers and employees over a multi-year period. As part of this initiative, CommBank will become OpenAI's designated banking partner in Australia. Engineers from both organisations will collaborate to investigate generative AI technologies, focusing on improving the detection of scams and fraud while also providing more tailored services to CommBank's clientele. OpenAI CEO Sam Altman said: 'CommBank is one of Australia's largest institutions, serving millions of people and businesses every day. 'We're excited to work together to put advanced AI into the hands of more Australians, making it more useful and impactful for people and businesses across the country.' In addition, CommBank employees will gradually gain access to OpenAI's advanced AI resources, including the enterprise version of ChatGPT. The bank is also committing to extensive training and upskilling programmes to bolster AI capabilities and ensure the responsible application of AI throughout its workforce. Commonwealth Bank CEO Matt Comyn said: 'To be globally competitive, Australia must embrace this new era of rapid technological change. 'Our strategic partnership with OpenAI reflects our commitment to bringing world class capabilities to Australia, and exploring how AI can enhance customer experiences, better protect our customers, and unlock new opportunities for Australian businesses.' Recently, CommBank introduced two initiatives to enhance customer protection against scams. The initiatives include a Generative AI scam detection tool integrated into the Truyu app and an improved security feature within in the CommBank app for easier online card transaction verification. "CommBank partners with OpenAI on generative AI-enabled banking services" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
