Struggling Aussies revile 'disgusting' mega profits from Origin, IAG, CBA as cost of living pressures plague millions
On Thursday, the nation's largest telco Telstra posted a 31 per cent profit jump in the 2025 financial year to $2.34 billion, Australia's largest energy company Origin lifted 26 per cent to $1.49b and profits of the third biggest bank Westpac grew 14 per cent to $1.9b.
These followed insurance provider IAG's profit lifting 51 per cent and the Commonwealth Bank of Australia, the nation's largest company and the highest valued bank in the world, posting a $10.1b profit.
Some of these results incensed Australians who questioned how these major companies could reap such large profits while cost of living pressures persist.
'Anyone else disgusted by the profit announcements this morning?' a Reddit user asked on Thursday.
'I thought we had a cost-of-living crisis and inflation? People are suffering and struggling, but the corporates just get away with price gouging and insane increases in profitability?
'I get inflation happens, but these figures feel real out of step with inflation.
'I run a small business and tolerate lower margins when things are tough - why shouldn't our corporates also tighten their belts when the rest of us do? An increase is good - but 25-30 per cent feels obscene.'
Another lamented that the companies would be pressured to beat these results in the next quarter, while another said the lack of competition in many Australian sectors meant major companies could continue scoring huge profits.
'Highly competitive markets are a race to the bottom,' the Reddit user said.
'These listed companies enjoy very little competition or heavily manipulated markets.'
IAG's profit jump came as it enjoyed higher income from insurance premiums and lower-than-expected natural disaster payouts.
The company's gross written premium income rose by 4.3 per cent to $17.1b while its total payouts were $10.2b for the 2025 financial year.
Meanwhile, payouts for natural disasters was $195m below what the company expected.
It comes as insurance costs have surged more than 35 per cent in the three years to June.
Meanwhile, Origin's profit rise followed energy costs soaring over the past few years.
While various state and federal government power rebates partly covered consumers, major energy companies continued to reap massive profits as electricity prices soared.
'I really need cost of living explained to me like I'm a five year old," a Reddit user said.
"Over the past twelve months, various governments gave me large sums of money via my electricity bill to help with my 'cost of living', to then pass onto Origin who records a $1.5 billion profit?'
Another user claimed the government rebates were barely covering the daily supply charges or the rate increases many faced.
'So, the money went straight back to the electricity retailer,' they said.
CBA's massive profit was torn into by the Finance Sector Union, which labelled the bank 'un-Australian' for slashing jobs in favour of offshore work and AI.
'CBA is Australia's wealthiest bank, yet it is systematically undermining local workers, shunting jobs offshore and replacing skilled workers with untested automation,' FSU national secretary Julia Angrisano said.
Alongside these companies, JB Hi-Fi revealed a $462m profit earlier this week while Evolution Mining posted a $926m profit and Penfolds-owner Treasury Wine Estates's profit was almost $437m.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sydney Morning Herald
38 minutes ago
- Sydney Morning Herald
Fresh ASX record high approaches 9000 milestone; Ampol surges on $1.1b deal; Baby Bunting soars
Welcome to your five-minute recap of the trading day. The numbers The Australian sharemarket hit a fresh record high every day this week and is closing in on the 9000 milestone, with Friday's session carried by energy, banking, and mining giants. The S&P/ASX 200 gained 64.8 points, or 0.7 per cent, to close at 8938.6, with each day this week finishing higher than the last. Friday's gains came despite a middling session on Wall Street driven by a disappointing report that said US inflation at the wholesale level was worse last month than economists expected. The lifters Financials were one of the best-performing sectors of the day, climbing nearly 1.1 per cent. The big banks, which were mixed earlier in the day, all finished higher: Westpac gained 2.1 per cent, ANZ Bank rose 1.8 per cent, NAB added 0.8 per cent and even the Commonwealth Bank rose 0.6 per cent. Mining was another outperforming sector, finishing 1.1 per cent higher. Rio Tinto gained 1.4 per cent and Fortescue rose 1.3 per cent, while BHP lifted 1.1 per cent. Loading Energy stocks also rose (1.1 per cent). Santos added 1.8 per cent and Woodside added 0.2 per cent. Petrol and diesel supplier Ampol jumped 7.7 per cent after announcing a major expansion plan with the acquisition of British fuel giant EG Group's Australian petrol station network. If the $1.1 billion deal gains regulatory approval, Ampol, formerly known as Caltex Australia, would add EG's 500 fuel sites to its business, enabling it to fast-track the roll-out unstaffed, self-service petrol stations under its U-GO brand.
Sydney Morning Herald
an hour ago
- Sydney Morning Herald
Chalmers hits back at critics talking down economic talkfest before it has even begun
Treasurer Jim Chalmers has rounded on critics of the government's economic roundtable, insisting the three-day meeting to map out ways to improve Australians' living standards will not be a waste of time. As the Greens vowed to use their balance of power in the Senate to drive progressive reforms from the roundtable, Chalmers said that next week's forum would be the start of a three-year drive to increase productivity rather than 'instant policy gratification'. The roundtable begins on Tuesday with discussions to focus on issues ranging from regulatory barriers to building new homes, the structure of the tax system and recognition of occupational licences across state and territory boundaries. The government has already ruled out substantial tax reform from the roundtable, especially in contentious areas such as the GST and negative gearing. There have also been criticisms that the roundtable could become a talkfest that will fail to deliver policies to address the nation's slowdown in productivity growth. But Chalmers said he wanted to push back at critics, many in the Coalition, who have claimed that the gathering will be a waste of time. Loading 'I feel the effort we've put in, which has been very, very substantial, probably the most intensive period of consultation that I've been involved in, I feel like it's already worth it,' he told this masthead. 'You shouldn't anticipate that we will have every problem solved in the economy at the end of three days of fruitful discussions, but it will be a really important way to inform the decisions of the cabinet.' Prime Minister Anthony Albanese and the treasurer have at times struck different tones, creating a perception that Chalmers is more keen to use the roundtable to enact bigger reforms, though the pair have not been obviously at odds over any specific policy.
The Age
an hour ago
- The Age
Chalmers hits back at critics talking down economic talkfest before it has even begun
Treasurer Jim Chalmers has rounded on critics of the government's economic roundtable, insisting the three-day meeting to map out ways to improve Australians' living standards will not be a waste of time. As the Greens vowed to use their balance of power in the Senate to drive progressive reforms from the roundtable, Chalmers said that next week's forum would be the start of a three-year drive to increase productivity rather than 'instant policy gratification'. The roundtable begins on Tuesday with discussions to focus on issues ranging from regulatory barriers to building new homes, the structure of the tax system and recognition of occupational licences across state and territory boundaries. The government has already ruled out substantial tax reform from the roundtable, especially in contentious areas such as the GST and negative gearing. There have also been criticisms that the roundtable could become a talkfest that will fail to deliver policies to address the nation's slowdown in productivity growth. But Chalmers said he wanted to push back at critics, many in the Coalition, who have claimed that the gathering will be a waste of time. Loading 'I feel the effort we've put in, which has been very, very substantial, probably the most intensive period of consultation that I've been involved in, I feel like it's already worth it,' he told this masthead. 'You shouldn't anticipate that we will have every problem solved in the economy at the end of three days of fruitful discussions, but it will be a really important way to inform the decisions of the cabinet.' Prime Minister Anthony Albanese and the treasurer have at times struck different tones, creating a perception that Chalmers is more keen to use the roundtable to enact bigger reforms, though the pair have not been obviously at odds over any specific policy.
