Tough decisions needed as housing woes collide with climate change
The housing affordability woes chewing at the Australian economy have a difficult and pressing sister problem: insurance.
Natural disasters are on the rise and the way we're headed, more Australians will be uninsured and have little hope of rebuilding the family home once devastating floods, fires or cyclones blow through.
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Perth Now
30 minutes ago
- Perth Now
Proof 30yo Aussies have never had it worse
For much of Australia's history, each new generation has been better off than the last: better jobs, higher incomes, and improved living standards. But a new e61 Institute report reveals that promise may now be in doubt. The report found that young Australians were barely earning more than their predecessors yet were racking up markedly larger student debts and taking years longer to pay them off. Real average incomes for 30-year-olds increased just 6 per cent in a decade, from $59,496 in 2012 to $62,987 in 2022. Meanwhile, the average HELP debt jumped by 45 per cent, from $19,485 to $28,260, the analysis of tax return data found. The average age of final HELP repayment also rose from 33 in 2012 to 35 in 2022. The percentage of 30-year-olds with a HELP debt increased from 15 per cent to 23 per cent, In 10 years, the average HELP debt has jumped 45 per cent. NewsWire/ Gaye Gerard Credit: NewsWire The report said the story of young Australians today may not necessarily be one of decline but rather of delay. 'It is still unclear how many of these patterns will evolve. The challenge for policymakers is distinguishing between whether young Australians are reaching major life milestones – like moving out of home, starting families, and buying a home – later than prior generations, not reaching them at all, or changing their preferences,' it said. e61 Institute research economist Matthew Maltman said the intergenerational compact's growing disparity had its roots in the global financial crisis of 2008. Since then the wages of workers under 40 have grown at less than half the rate of older Australians. 'Some explanations include rising underemployment, a shift toward insecure and lower-paying service jobs, award decisions, and an oversupply of workers relative to available high-quality jobs – driven in part by older Australians working longer – which weakened bargaining power and suppressed wage growth,' he said. 'Rising employer concentration and a decline in job mobility may also have weakened young workers' ability to climb the job ladder and move into higher-paying positions.' The report stated that young Australians now had access to opportunities that were not available to their parents and grandparents. The report found young Aussies are dealing with the financial consequences of university education for years longer. NewsWire / Valeriu Campan Credit: NewsWire 'Today, they are achieving more in education, earning more in their early career stages, and participating in the labour market in new ways,' it said. 'Young people have also benefited from technological advancements, including greater access to information through the internet, improvements in the availability of digital goods and cheaper consumer goods. 'Whether young Australians will be better of than previous generations remains an open question, 'It depends, in part, on the choices policymakers make today. In the past, productivity growth has been the surest way to lift living standards for all and maintain the intergenerational bargain. 'However, Australia's recent lacklustre productivity performance means that policymakers cannot take for granted that the standard intergenerational pattern of improvement will operate as well as before.'
West Australian
an hour ago
- West Australian
Australian tractor sales plummet to five-year low as drought, lack of confidence continues to bite
Australian tractor sales plummet to five-year low as drought, lack of confidence continues to bite
The Age
an hour ago
- The Age
Virgin Australia shares take off on ASX despite Mid-East jitters
Virgin Australia shares took off on their return to the Australian sharemarket, lifting more than 11 per cent on their first day of trading, with investors keen to get a piece of the nation's second-biggest airline despite the uncertainty triggered by the war in the Middle East. After more than four years' absence, Virgin shares relisted on the ASX on Tuesday, rising to $3.23 by market close as investors bet that new management and more streamlined operations would bolster the company's profitability even amid volatile oil prices. Virgin sold $685 million worth of stock to fund managers and retail investors in an initial public offering this month, floating about 30.2 per cent of the company. Investors paid $2.90 for the stock in the IPO. Virgin, which now has a market value of more than $2.5 billion, is trading under the sharemarket ticker VGN. Demand from investors had outstripped the number of shares on offer in the IPO, according to Virgin CEO Dave Emerson, which explains the rise in the share price after the stock started trading. 'We were very pleased with the demand, and we definitely can say that the offer was oversubscribed,' Emerson said before the trading debut. An overall positive market also would have boosted the stock, with the S&P/ASX 200 gaining 1 per cent in its Tuesday session after US President Donald Trump announced a ceasefire between Israel and Iran. The specific timing of the pause remains unclear, with Israel accusing Iran of violating the ceasefire on Tuesday evening AEST, which Iran has denied. Shares of Virgin's bigger rival Qantas Airways were also up strongly on Tuesday, closing with a gain of 2.4 per cent. Virgin was delisted from the ASX in 2020 amid mounting debts and losses. Having entered administration, it was bought by US-based Bain Capital, the private equity firm Emerson worked for before joining Virgin's management in 2021.
