Section

Money & Cost of Living

How Australian households are affected by wages, housing costs, interest rates and inflation. Summaries updated every two hours.

The cost of living is the defining issue for Australian households. This section tracks the news that hits your hip pocket: RBA interest rate decisions, rent and mortgage movements, superannuation changes, grocery and energy prices, wage growth, tax reform and Centrelink updates. Each summary includes a 'Why it matters' line explaining exactly how the news affects workers, renters and families. If it changes what Australians earn, spend or save, you will find it here.

money23h ago

Trump's Adviser Claims High Prices Are a Good Sign for Economy

Kevin Hassett, chief economic adviser to Donald Trump, claims that high prices for essentials like food and housing are a positive sign for the US economy. Despite a significant drop in consumer sentiment, he argues that the survey reflects political dissatisfaction rather than economic reality. This statement has sparked criticism amid rising living costs.

Why it matters: High prices for essentials impact American households, making it harder for families to afford basic needs.

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moneyyesterday

Considerations for Lending Money for Aged Care

Adult children considering lending money to parents for residential aged care are advised to carefully evaluate the implications. Financial arrangements can impact both the parent's assets and the child's financial stability. Seeking professional advice is recommended before making any commitments.

Why it matters: This affects families as financial decisions can impact both parents' assets and children's financial security.

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Considerations for Lending Money for Aged Care

moneyyesterday

Denmark's New Government Focuses on Cost of Living and Greenland

Denmark's new left-leaning government, led by Mette Frederiksen, aims to tackle the cost of living crisis by halving VAT on food and providing free public transport for young people. Frederiksen, returning for her third term, emphasises improving the everyday lives of Danes while resisting US pressure over Greenland.

Why it matters: These measures could significantly ease financial burdens for Danish families and young people amid rising living costs.

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moneyyesterday

Home Secretary warns of dangerous undercurrent after Nowak's murder

Home Secretary Shabana Mahmood warns of a 'dangerous undercurrent' following the murder of Henry Nowak, who was falsely accused of racism before being fatally stabbed. Vickrum Digwa, 23, receives a life sentence with a minimum of 21 years for the December 2025 crime.

Why it matters: This situation highlights the risks of misinformation, which can lead to violence and threaten community safety.

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money2d ago

House Prices Fall in Major Cities, Signalling Market Shift

House prices in Sydney and Melbourne have decreased by 3.1% and 3.5% respectively from recent peaks, marking the first month without a rise in property prices since January 2023. The annual house price inflation rate has also dropped to 9.5%, down from 10.9% earlier this year. Labor's budget changes are expected to shift housing focus away from investors.

Why it matters: Falling house prices may provide relief for first-time buyers and renters facing affordability challenges.

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money2d ago

Sweden Calls for Phone-Free Zones to Protect Children

Sweden's public health agency urges parents to limit phone use around children, recommending phone-free zones at home. This follows research indicating that adult screen time negatively affects children's development. The agency previously advised parents to consider their smartphone usage and has now provided more specific guidelines.

Why it matters: This impacts Australian families by highlighting the importance of reducing screen time to support children's development.

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money3d ago

Critics Warn Albanese's Tax Changes Could Hurt Housing Market

The article critiques proposed tax changes by Prime Minister Anthony Albanese, suggesting they could negatively impact the housing market and landlords. It highlights concerns from landlords about the potential financial strain these changes may impose. Critics argue that these reforms could exacerbate housing affordability issues for renters.

Why it matters: Landlords may face increased financial pressure, potentially leading to higher rents for tenants.

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money4d ago

Australia Leads Home Battery Revolution Amid Falling Energy Prices

Australia is leading a revolution in home renewable energy and battery use, with electricity prices falling by up to 10% in some areas. This development comes as the country continues to be a major fossil fuel exporter while already having solar panels on one in three homes. The energy minister highlights the potential of these advancements amid global climate challenges.

Why it matters: Lower electricity prices and increased battery use can significantly reduce energy costs for Australian households, making renewable energy more accessible.

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money4d ago

Trump's Inflation Policies May Impact Midterm Elections

Donald Trump's endorsement of Ken Paxton in the Texas Senate primary complicates Republican chances in the midterms, as he faces backlash over inflation. A recent poll shows Trump's approval rating on handling the cost of living is significantly low, at a 42-point deficit. This issue may hinder Republican success in the upcoming elections.

Why it matters: Voters concerned about rising costs may sway the election outcome, affecting Republican candidates and their strategies.

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money19 May

Grattan report: Scrapping parking spaces could save $5.2bn

A Grattan Institute report reveals that Australia could save $5.2 billion by eliminating plans for 86,000 unnecessary car parking spaces over the next five years. The study highlights that about 40% of existing parking spaces in apartments remain empty and calls for reforms to planning rules regarding minimum parking requirements for new developments.

Why it matters: Reducing unnecessary parking spaces could lower construction costs, potentially leading to decreased rents for tenants.

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money19 May

Parents Overwhelmed by School Communication Apps

Parents are increasingly overwhelmed by school communication apps, with one parent receiving an 'Unexplained student absence' message after dropping their child off at school. This situation highlights the stress and confusion caused by the reliance on technology for school notifications. Many parents feel burdened by the constant flow of messages and updates.

Why it matters: This affects parents' ability to manage their children's education and increases stress levels in family life.

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Parents Overwhelmed by School Communication Apps

money18 May

Study: Over 145,000 US Children Separated from Parents Since 2021

A Brookings Institution study estimates over 145,000 US children have had a parent detained by immigration authorities since Donald Trump's second presidency began in January 2021. Approximately 36% of these children are under six years old, with more than 22,000 experiencing the detention of both co-resident parents.

Why it matters: This situation highlights the emotional and psychological impact on young children affected by parental detention, which can lead to long-term trauma.

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money18 May

Oil Prices Surge Amid Middle East Tensions and Inflation Fears

Oil prices increase as Brent crude rises following an attack on a nuclear power plant in the UAE. Global bonds experience instability amid inflation concerns and speculation that central banks may raise interest rates. Tensions in the Middle East contribute to the market volatility.

Why it matters: Rising oil prices can lead to higher costs for Australian households, affecting fuel and transport expenses.

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money18 May

First Home Buyer Secures $740,000 Melbourne Property Amid Investor Exit

A first home buyer purchases a $740,000 ex-rental property in Melbourne's northern suburbs as investor interest wanes due to recent tax changes in the budget. This shift in the market highlights the impact of policy adjustments on property investment dynamics. The buyer capitalises on reduced competition from investors.

Why it matters: This trend allows first home buyers to enter the market more easily, potentially improving housing accessibility for young Australians.

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First Home Buyer Secures $740,000 Melbourne Property Amid Investor Exit

money17 May

Sunderland Fans Honour Bradley Lowery in Premier League Matches

In today's Premier League matches, Sunderland fans honour late mascot Bradley Lowery with a minute’s applause at the 15-minute mark. Two supporters cycle from the Stadium of Light to raise funds for the Bradley Lowery Foundation. Meanwhile, at Old Trafford, Bruno Fernandes equals a significant Premier League record as goals continue to flow.

Why it matters: This tribute highlights community support and raises awareness for childhood cancer, impacting families affected by similar illnesses.

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money14 May

Rent-Vesting: A Struggle for Affordable Housing in Australia

Neha Madhok shares her experience as a 'rent-vestor', owning an apartment but unable to live in it due to high costs. She supports Labor's proposed changes to negative gearing and capital gains tax, highlighting the challenges faced by many Australians in securing housing. Despite having $70,000 in savings, she struggled to obtain a loan for a home in Sydney.

Why it matters: This situation highlights the difficulties many Australians face in accessing affordable housing, affecting renters and potential homeowners.

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money14 May

Federal Budget Housing Measures Fall Short for Long-Term Renters

Federal budget housing measures are described as 'bold first steps' but are unlikely to significantly improve conditions for long-term renters, according to an academic. Many renters, like Alyssa Shaw, express disappointment over the lack of stability despite years of work and multiple relocations. The reforms aim to address housing issues but may not provide immediate relief for those affected.

Why it matters: Long-term renters, like Alyssa Shaw, continue to face instability in housing despite government reforms, impacting their financial security.

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money14 May

Renters' Rights Become Key Issue in US Midterms

Renters' rights are emerging as a key issue in the upcoming US midterm elections, with candidates focusing on housing affordability. In Massachusetts, a proposed ballot could lift a 30-year ban on rent control, capping annual increases at 5%. This initiative is backed by a coalition of housing, faith, and labour groups.

Why it matters: This affects working-class families facing rising housing costs, potentially providing them with more affordable living options.

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money14 May

Angus Taylor proposes tax bracket indexation to combat bracket creep

Angus Taylor announces plans to index tax brackets to inflation starting in 2028-29, targeting workers earning under $135,000. This measure, part of his budget reply as opposition leader, is projected to cost $22.5 billion and aims to address bracket creep while investing commodity windfalls for debt reduction.

Why it matters: This proposal could significantly impact middle-income earners by preventing tax increases due to inflation, helping to maintain their purchasing power.

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money14 May

Wall Street Resilience Amid War and Inflation Raises Questions

Despite ongoing instability from war and inflation, Wall Street shows remarkable resilience, with shares rising even as consumer confidence declines. On 13 May, oil prices remain high and tensions with Iran persist, yet the stock market continues to thrive. This trend raises questions about the factors driving market performance amid economic challenges.

Why it matters: Australian investors and businesses may face volatility as global market trends impact local economies and investment strategies.

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money13 May

Five Strategies to Boost Your Rental Property Investment

Investors can enhance their rental properties by adopting a strong property management mindset. Key strategies include regular maintenance, effective tenant communication, and understanding market trends to maximise returns. Implementing these practices helps ensure long-term profitability and tenant satisfaction.

Why it matters: These strategies can help property owners increase rental income and maintain tenant stability, directly impacting their financial returns.

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Five Strategies to Boost Your Rental Property Investment

money13 May

World Cup Raises Housing Affordability Concerns in Host Cities

Residents in World Cup host cities express concern that the event will exacerbate the housing crisis, as short-term rental listings surge by up to 30%. With hotels under-booked, platforms like Airbnb are offering bonuses to encourage hosts, leading to rental prices soaring to $6,000 a night. Advocates warn this trend could displace unhoused individuals and strain local renters.

Why it matters: Local renters and unhoused individuals face increased displacement and higher rents due to rising short-term rental listings.

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money13 May

Coalition to Tie Immigration Limits to New Housing Builds

The Coalition plans to link Australia's temporary immigration intake to new housing completions, aiming to cut migrant numbers. Opposition leader Angus Taylor will announce this strategy in his budget reply speech on May 13, alongside a $5 billion housing infrastructure fund and proposed changes to the national construction code to expedite building.

Why it matters: This plan could impact migrant workers and families seeking housing, as reduced immigration may limit labour supply in the construction sector.

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money12 May

Chalmers unveils major tax reforms for housing in 2026 budget

Jim Chalmers announces significant tax reforms in the 2026 federal budget, targeting negative gearing and capital gains tax to assist first home buyers. The government aims to enhance intergenerational fairness by abolishing negative gearing for new investors and reinstating an inflation-linked capital gains tax discount. These changes mark the most ambitious tax reforms since the Howard era.

Why it matters: These reforms aim to make home ownership more accessible for first home buyers, impacting many young Australians and families.

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money12 May

Chalmers unveils ambitious 2026 federal budget focused on tax reform

Treasurer Jim Chalmers presents the 2026 federal budget, claiming it is the most ambitious in decades, addressing tax reform and housing issues. He describes the spending package as five budgets in one, aiming to tackle challenges posed by global energy shocks. Chalmers seeks to make significant changes to Australia's tax system since the Howard era.

Why it matters: Younger Australians may face continued financial strain as the budget aims to reform tax and housing but may not provide immediate relief.

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money12 May

Half of Victoria's hospitality workers report feeling unsafe

A new report reveals that half of Victoria's cafe, bar, and restaurant workers feel unsafe, with widespread issues of sexual harassment and wage theft. In response, a group has proposed nine significant changes to improve conditions in the hospitality sector. These findings highlight the urgent need for reforms to protect workers' rights.

Why it matters: This affects hospitality workers in Victoria, highlighting the need for better protections against harassment and wage theft.

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Half of Victoria's hospitality workers report feeling unsafe

money11 May

Albanese Government to Reform Housing Tax Rules

The Albanese government plans to introduce budget reforms that redefine housing as shelter rather than an investment tool. Critics warn this could lead to increased rents and reduced housing supply, but evidence from Victoria suggests these fears may be unfounded. The changes aim to promote a more equitable housing market.

Why it matters: These reforms could impact renters and investors, potentially stabilising housing costs for households.

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money11 May

Democrats Reassess Tax Policies After 2024 Election Loss

Democratic lawmakers, including Senator Chris Van Hollen, are reconsidering their tax policies following the party's loss in the 2024 election. This shift towards a tax-cutting strategy raises concerns about its impact on middle-class benefits and the party's broader goals for equity and health in society.

Why it matters: This shift may affect middle-class families' tax burdens, influencing their financial stability and access to essential services.

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money11 May

Chalmers Prepares Ambitious Federal Budget Amid Global Challenges

Treasurer Jim Chalmers announces that the upcoming federal budget will be Labor's most ambitious, addressing challenges from the war in Iran and aiming for better intergenerational equity. Details of the budget package have been extensively previewed ahead of the announcement on Tuesday night.

Why it matters: This budget may impact Australian households through potential changes in tax and housing policies, affecting financial stability.

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money10 May

Homeless First Nations Woman Faces Life-Threatening Housing Crisis

Andrea Woodley, a First Nations woman suffering from septicemia, faces a two-year wait for public housing in WA despite being on the priority list since 2023. Advocates warn that her homelessness puts her life at risk, as she has been repeatedly hospitalised due to health complications from sleeping rough in Perth.

Why it matters: This situation highlights the urgent need for safe housing for vulnerable individuals, particularly First Nations people facing health crises.

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