The Economy


Aussie's slide spurs weakest inflation response since its float

Michael Heath 9:45 AM   It used to be simple: When the currency tumbled, consumer prices would rise as the cost of imported goods climbed. Not anymore.

House prices are cooling, not crashing

Citi's modelling anticipates house price growth to slow to 4 per cent in 2016-17.

Vanessa Desloires 9:04 AM   The housing market isn't crashing, but it could force the RBA to cut interest rates again, Citi economists say.

Comments 23

Capex slide puts budget forecasts in doubt

Peter Martin dinkus

Peter Martin 7:46 PM   Business investment is collapsing at a record pace as resource companies accelerate cutbacks.

Comments 5

Weatherill breaks ranks with conditional backing of 15% GST

South Australian Premier Jay Weatherill.

Peter Martin 6:49 PM   South Australia has broken ranks with other Labor states and come out in favour of a 15 per cent goods and services tax, with conditions.

Women, want a pay rise? Fight for one

Nassim Khadem

Nassim Khadem 12:15 AM   Women have a part to play to reduce the gender pay gap. If you want a promotion, apply for it, and keep pushing until you do.

The problem with corporate Australia: ancient companies

The top end of town - established, rather than dynamic.

John McDuling   Our biggest companies are pretty aged, compared to the dynamic corporate giants that power the world's biggest economy.

Comments 37

This island says everything about our economy

Curtis Island: The majority of people coming to the tropical isle these days are there to help build the LNG facilities, not for the pristine beaches or endangered dugongs and snubfin dolphins.

James Paton   On the largest island in the Great Barrier Reef, $80 billion of LNG terminals are helping feed China's hunger for energy. The next major construction project may appeal to its tourists.

Comments 1

Tax Office still short on women at top levels

Almost 60 per cent of the ATO's workforce is women. But at the top levels, men far outnumber women.

Nassim Khadem   The majority of the Australian Taxation Office's workforce may be female, but it's a different story in its middle and upper management.

Comments 2

If China killed commodities boom, Fed is about to bury it

Janet Yellen's Fed is widely expected to start raising US interest rates in December.

Kevin Crowley   For commodities, it's like the 21st century never happened. The last time commodity investor returns were this low, Apple's best-selling product was a desktop computer, and you could pay for it with francs and deutsche marks.

Comments 10

Sydney's Gen Y gloomier than global peers

One in five young people in Sydney say their age is a barrier to employment, compared with one in 10 globally, new research shows.

Inga Ting   Young people in Sydney are twice as likely as youth in other global cities to say their age made it hard to find work, according to new international research into the attitudes and economic prospects of 18 to 25-year olds.

Mining slump dragging on construction

Nailed it. As expected, residential construction continues to grow, but not enough to offset engineering decline.

Mark Mulligan   The value of construction activity again shrunk in the third quarter, as investment in housing and office buildings failed to pick up the slack left by the decline in resources-related engineering works.

RBA hints rates to stay on hold

"It is an idea I happen to agree with":  RBA's Glenn Stevens indicated the case to stay on hold in December is a strong one.

Peter Martin   Reserve Bank governor Glenn Stevens has signalled that interest rates will stay on hold at next Tuesday's meeting saying the case for leaving them steady was one he "happened to agree with".

Comments 6

Support for effects test remains

Treasurer Scott Morrison releases the government's response to the competition policy review with review author Professor Ian Harper at Parliament House on Tuesday.

Nassim Khadem and Cara Waters   Big business has welcomed the Turnbull government's decision to delay changes to misuse of market power provisions.

Comments 1

The post-crisis toll-road Game of Thrones is over

Malcolm Maiden.

Malcolm Maiden   The price the Transurban consortium paid for Airportlink underlines how flawed the original business case was.

Comments 6

Treasury downgrades projections ahead of mid-year budget update

Nigel Ray: "We now think potential GDP will now grow around 2.75 per cent."

Peter Martin   Treasury has cast a shadow of the government's mid-year budget update, knocking down its economic growth projections and foreshadowing bigger budget deficits for longer.

What's ahead for house prices, interest rates?

Wage growth is tipped to remain historically low at 2.5 per cent in 2016 followed by 2.8 per cent in 2017.

Peter Martin   The Reserve Bank is set to leave interest rates on hold for the rest of this year and throughout 2016 in the view of Australia's leading financial market forecasters.

Comments 6

PwC and the Magic Pudding company tax cut

Michael Pascoe

Michael Pascoe   Norman Lindsay died in 1969 but his spirit lives on within PwC.

Comments 21

Tax rich old men, restrict wealthy pumping pre-tax income into super

Tax breaks for super reduce income-tax collections by more than $25 billion a year, according to a Grattan Institute report.

Nassim Khadem   Wealthy people who reduce their tax rates by pumping money into super should be stopped, a report from the Grattan Institute setting out the case for reform says.

International trade to quadruple by 2050, says HSBC

The world economy is on the cusp of a third wave of globalisation that will help quadruple the value of international trade by 2050.

The world economy is on the cusp of a third wave of globalisation that will help quadruple the value of international trade by 2050.

Be afraid, they are coming for your super

The government's biggest tax decisions concern superannuation.

Peter Martin    Forget the GST – it's tackling the burgeoning problem of superannuation that will show whether the Treasurer is serious about fixing tax.

The best way to collect super? The ATO

Michael Pascoe

Michael Pascoe   The politicians are fighting over the falling leaves and ignoring the forest again – this time on the little matter of employers who fail to pay the compulsory superannuation levy.

Comments 19

ATO takes tighter approach to future taxes

Tax Commissioner Chris Jordan is becoming more particular about locking in deals with some companies for future taxes.

Nassim Khadem   Taxpayers can lock in their tax payment for a period of about three years via an "advanced pricing agreement"

Comments 6

Lower tax dream feeds budget deficit

Ross Gittins

Ross Gittins   The sooner Malcolm Turnbull kills off the lower-taxes pipe dream, the better he'll be able to manage the nation's affairs.

Victoria becomes Australia's fastest-growing non-mining state

Victoria's Treasurer,  Tim Pallas, says the news showed confidence had returned after years of economic inertia.

Peter Martin and Richard Willingham   Victoria has become the fastest-growing economy on the eastern-seaboard, overtaking NSW for the first time since 2008.

Let's beef up our relationship with Indonesia

Harold Mitchell.

Harold Mitchell   It's all too easy in times like these to think that the world is dominated and controlled by conflict and violence. 

NSW: the half-trillion economy and falling behind


Peter Martin   NSW has become Australia's half-trillion dollar economy, for the first time producing more than $500 billion in a calendar year.

Facts fall like ninepins in Senate tax inquiry

Michael West

Michael West   Big companies made some pretty amazing claims in front of the Senate this week.

Comments 34

Don't buy the China doom and gloom

Ross Gittins

Ross Gittins   Is the Chinese economy slowing down or melting down? You don't have to go far to find answers.

Comments 35

Working holiday rule changes needed to lure back backpackers

The lower number of backpacker arrivals has led to a shortage of hospitality workers in the Northern Territory.

Jamie Freed   NT chief minister Adam Giles has called on the federal government to lower the price of working holiday visas, increase the maximum age to 35 and to reverse planned changes to the tax-free threshold from July 1.

Biggest losers from a hard landing in China

Were China to sneeze, the world may well catch a cold.

Malcolm Scott   Any further slowdown in Chinese growth would be bad news for the likes of Australia and Brazil.