logo
Taking a haircut: The states where you're paying more at the salon

Taking a haircut: The states where you're paying more at the salon

Australians are being forced to pay too much for trips to the hairdresser, repairs to their cars and painting for their homes by a patchwork of licence rules that the Productivity Commission says are hurting consumers and prospective workers.
As part of a study that calls for an overhaul of high school and post-secondary education to deal with a growing number of students finishing their studies without key skills, the commission argues protections put in place by particular industries are imposing widespread financial costs across the economy.
People in NSW and South Australia who want to become hairdressers need to complete a certificate III training course, at a cost of $13,000 to $28,000, putting upward pressure on prices. There is no evidence that it has improved the quality of cuts and colours compared with other states.
The commission's study, the fourth of five it is releasing before next week's three-day economic roundtable, warned that the pace of economic change meant some existing jobs would disappear and others would be created, while new skills would be required for existing occupations.
Ninety per cent of new jobs in coming years would require post-secondary qualifications from either universities or vocational education centres.
Loading
But the commission found consumers were being harmed by regulations governing existing jobs.
It said occupational entry regulations (OERs), which require workers to meet minimum conditions such as a licence, were growing. One in five people were subjected to them, worsening worker shortages.
In occupations such as hairdressing, vehicle repairs, painting and decorating, there were differing licence conditions across the country, but without measurably different outcomes.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Reserve Bank of Australia widely tipped to deliver third interest rate cut of 2025 on Tuesday after shock hold in July
Reserve Bank of Australia widely tipped to deliver third interest rate cut of 2025 on Tuesday after shock hold in July

Sky News AU

timean hour ago

  • Sky News AU

Reserve Bank of Australia widely tipped to deliver third interest rate cut of 2025 on Tuesday after shock hold in July

The Reserve Bank of Australia is tipped to deliver the third rate cut of the year on Tuesday after it shocked mortgage holders and economists across the nation by holding rates last month. The RBA was predicted to lower the cash rate from 3.85 per cent to 3.6 per cent in July but the central bank said it was waiting for more data to show inflation was continuing to decline. 'The Board judged that it could wait for a little more information to confirm that inflation remains on track to reach 2.5 per cent on a sustainable basis,' the central bank said. Aussies were delivered this crucial information late last month via fresh data from the Australian Bureau of Statistics. It revealed trimmed mean inflation - the RBA's preferred measure which analyses the middle 70 per cent of price changes - was 2.7 per cent as it continues to fall within the central bank's 2-3 per cent target band. A higher-than-expected unemployment rate for June has also boosted hopes for a cut on Tuesday and even sparked backlash against the RBA's July call. Independent economist Warren Hogan on Monday said the RBA was going to be factoring in several more rate cuts down the track after a likely cut on Tuesday. 'They'll cut tomorrow. They'll have the cash rate at 3.6 (per cent). They'll be factoring in another two rate cuts after that to their forecasts,' Mr Hogan said on Business Now. He also predicted the central bank will hold in September before again cutting rates in November. Economists were shocked by the July rate hold after monthly inflation data for May showed trimmed mean inflation fall from 2.8 per cent to 2.4 per cent. However, the ABS only publishes a monthly consumer price index indicator which examines about two thirds of the goods and services in the quarterly inflation figures. The RBA gives little weight to the monthly figure, though this will soon change as the ABS will begin publishing a full monthly consumer price index from November. Mr Hogan said Australians could be delivered rate cuts at a quicker pace after the ABS' change. 'Every month it will be a full CPI. That means every six weeks when they (the RBA) meet, they will have all the information - up to date - on inflation. There will be no reason to wait,' Mr Hogan said. 'That's exactly what the (RBA) governor said and the minutes said after the last meeting. That 'we considered a rate cut, but we thought we should wait for more information i.e quarterly CPI'.' Motley Fool chief economist Scott Phillips said there were good reasons for the central bank to cut rates on Tuesday. 'They can afford to be less restrictive without GDP running too hot,' Mr Phillips said on Sky News. 'They can afford to be less restrictive without inflation all of a sudden picking up." Money markets say there is a 99.6 per cent chance of the central bank cutting rates on Tuesday. However, a similar prediction was made in the lead up to the July call. The RBA delivered 0.25 per cent rate cuts in February and May after holding rates at 4.35 per cent for almost a year and a half. It follows the central bank hiking rates 13 times between April 2022 and November 2023 to stamp out soaring post pandemic inflation.

NBN lifted by more people shifting to fibre from copper
NBN lifted by more people shifting to fibre from copper

Perth Now

timean hour ago

  • Perth Now

NBN lifted by more people shifting to fibre from copper

Broadband wholesaler NBN Co has posted a rise in annual earnings as more Australians upgraded from aging copper technology to fibre in record numbers to connect to the internet. The Australian government-owned entity's earnings for 2024/25 jumped eight per cent to $4.2 billion, in line with guidance, as revenue rose four per cent to $5.7 billion. More than 430,000 premises were upgraded from legacy copper connections to fibre, which was more than double from 2023/24, taking the total to over 805,000. The shift to faster speeds and full fibre connections also drove demand for higher-speed internet tiers and lifted data usage across the country. Average monthly data downloads per premise rose more than 10 per cent - from 460GB in June 2024 to 508GB in June 2025, NBN said on Tuesday. As well, the number of homes and businesses connected via fibre to the premises grew by 23 per cent to 2.7 million - making it the dominant fixed-line technology on its network. Almost nine million premises are now connected to the NBN network, including 31 per cent on fibre to the premises. "Looking to the future, it is NBN's aim that our 500 Mbps wholesale speed tier becomes Australia's most popular NBNn plan," CEO Ellie Sweeney said. NBN was set up in 2009 as a government business enterprise to design, build and operate a wholesale broadband access network for the nation.

Petrol, diesel, hybrid or EV: What new road user charge could mean for you
Petrol, diesel, hybrid or EV: What new road user charge could mean for you

News.com.au

time4 hours ago

  • News.com.au

Petrol, diesel, hybrid or EV: What new road user charge could mean for you

The Federal Government is advancing plans for electric vehicle owners to pay a new 'road-user charge', but it may not stop at EV drivers. In Australia, drivers currently pay a fuel excise of 51.6 cents per litre every time they fill up. According to the Government, that money goes towards building and maintaining the nation's roads. But EV drivers currently pay nothing. The Productivity Commission has warned that Australia's $12 billion a year fuel excise is in 'terminal decline' as more drivers switch to low-and zero-emission cars. The proposed solution, currently being discussed and advanced by Treasurer Jim Chalmers, is a distance-based charge for EV drivers, but industry experts say it could be rolled out more broadly to cover all light vehicles, like in New Zealand. If that happens, it could mean all motorists pay a set fee for every kilometre they travel, regardless of whether they drive a diesel ute, petrol SUV, hybrid small hatchback or electric sedan. What is the road-user charge? Currently, Australian drivers of petrol and diesel pay a fuel excise – a tax of 51.6c per litre – every time they fill up. This tax money is used to build and maintain roads. Electric vehicle (EV) owners currently pay nothing, meaning as more Australians switch to EVs, the government's road funding pool is shrinking. A road-user charge (RUC) would change that by making EV drivers pay for each kilometre they travel. The aim is to ensure all road users contribute to the upkeep of the network, regardless of what powertrain they drive. In New Zealand, the approach is going even further. From 2027, all light vehicles – petrol, diesel, hybrids, and electric will be charged based on distance travelled and vehicle weight. This national approach means everyone pays for the exact road use they generate, but it also means some are paying more than others. If the same road-user charge is applied to all light vehicles in Australia, it's understood that would be instead of paying fuel excise, not on top of it. However, this is a big shift and has not been discussed or committed to yet. How would it work? Victoria implemented a road user charge for electric and plug-in hybrid vehicles that later failed a court challenge, leading to millions of dollars in refunds. It worked like this: – Flat rate for EVS of approximately 2.8c/km – Flat rate for Plug-in hybrids of approximately 2.3c/km – Distance measured by odometer photos or an app – Funds directed to road maintenance and construction There have been discussions about exemptions or rebates for regional motorists, who often drive far greater distances, and others argue the charge should eventually apply to all vehicles, not just EVs. New Zealand's Road User Charge (RUC) framework does not offer specific exemptions or rebates for regional motorists based on travel distance. However, there are exemptions for certain vehicle types, such as: – Electric vehicles over 3.5 tonnes (heavy EVs), remain exempt until 1 July 2027. – Light electric vehicles under 1,000kg remain exempt. – Vehicles unsuitable for public roads or used almost exclusively off-road can apply for exemptions. When could it happen? Prime Minister Anthony Albanese has ruled out new taxes this term, so not before 2027. Treasurer Jim Chalmers has signalled it as a 'second term' reform, after further consultation with states and industry. If the RUC is applied to EVs only Using Victoria's scrapped 2.8c/km rate: City driver – 12,000km/year – EV: $336 a year (currently $0) – Petrol/diesel: No change – still pay fuel excise Regional driver (or high-mileage drivers) – 30,000km/year – EV: $840 a year (currently $0) – Petrol/diesel: No change – still pay fuel excise If the RUC is applied to EVs only, then EV owners, especially high-mileage or regional drivers, will be impacted. Outer-suburban and regional drivers typically driver far more than inner city drivers, not because they want to, but because they have to. According to data buyers searching for home up to an hour from the CBD have dramatically more choice, with as much as eight times the number of houses available compared to a 30-minute radius. What if it expands to all vehicles like New Zealand? If Australia adopts a national RUC for light commercial vehicles, like New Zealand, the impact on your wallet would depend heavily on the type of vehicle you drive and how far you travel each year. For example, a large ute or SUV such as a Toyota HiLux, Ford Ranger or Toyota LandCruiser Prado uses approximately 10L/100km, which means drivers would pay roughly $336 a year under a 2.8c/km charge if they drive the national average of 12,000km. That's about $283.20 less than the $619.20 you'd currently pay in fuel excise, and the savings would be even bigger for high-mileage regional drivers. If the RUC is applied to everyone, similar to what New Zealand is implementing in 2027, then heavy/less efficient vehicles like petrol or diesel utes and SUVs will come out ahead. While EVs and very efficient hybrids will pay more than under fuel excise.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store