Search Results for: disposable

Fitch Affirms Australia at ‘AAA’; Outlook Stable

Fitch Ratings has affirmed Australia’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at ‘AAA’. The Outlook is Stable. Australia’s senior unsecured foreign- and local-currency bond ratings are also affirmed at ‘AAA’. The Country Ceiling is affirmed at ‘AAA’ and the Short-Term Foreign Currency IDR at ‘F1+’. KEY RATING DRIVERS The affirmation of Australia’s sovereign … Continue reading “Fitch Affirms Australia at ‘AAA’; Outlook Stable”

No Overall Real Income Growth Since 2008 – RBA

There were two important charts contained in the speech by RBA Deputy Governor Philip Lowe today covering the resilience of our own economy, the productivity challenge, the balance in the housing market and the inflation outlook. Real disposable income per capita has been static since 2008, and rent inflation continues to fall. Both indicators of … Continue reading “No Overall Real Income Growth Since 2008 – RBA”

RBA’s Latest Statement Raises Two Interesting Questions

The latest Statement of Monetary Policy, released today, continues to tell the now well rehearsed story. Resources down, China under pressure, local growth slowish, and transitioning from mining, sort of working, whilst home lending continues to grow at above 7% annually. But they kick around two interesting issues. First, why is the unemployment rate so … Continue reading “RBA’s Latest Statement Raises Two Interesting Questions”

Living Costs Growth Highest For Self-Funded Retirees

The ABS published their data on living costs by household type today, to December 2015. It is worth reading the ABS information about these indices: The Analytical Living Cost Indexes (ALCIs) have been compiled and published by the ABS since June 2000 and were developed in recognition of the widespread interest in the extent to … Continue reading “Living Costs Growth Highest For Self-Funded Retirees”

Household Debt Higher Than Ever

The latest RBA chart pack, to December 2015 was released today. Households remain under financial pressure, as shown by the updated data relating to household debt as a percentage of household disposable income continues to move higher, and well above 175% . Whilst interest rates are low, so interest paid is on average a little … Continue reading “Household Debt Higher Than Ever”

Australian Household Debt Reaches Record Highs at $245,000

Average Australian household debt is four times what it was in 1988, rising from $60,000 to $245,000 after inflation, according to the latest AMP.NATSEM Income and Wealth report – Buy now, pay later: Household debt in Australia. The ratio of household debt to disposable income has almost tripled, from 64 per cent to 185 per … Continue reading “Australian Household Debt Reaches Record Highs at $245,000”

‘Catch up’ super contributions: a tax break for rich (old men)

From The Conversation. It’s no secret that our superannuation system is unfair. Over half the value of the tax breaks goes to the top 20% of income earners, people who already have enough resources to fund their own retirement. As shown in our new report for Grattan Institute, Super tax targeting, the system provides overly … Continue reading “‘Catch up’ super contributions: a tax break for rich (old men)”

No Sovereign Credit Impact From Australia PM Change – Fitch

The change in Australia’s premiership following a Liberal party leadership vote held on Monday will not have an immediate credit impact for the sovereign, says Fitch Ratings. Frequent changes in leadership, with four prime ministers governing the country over the past five years, have made little difference in core economic policies so far. There is … Continue reading “No Sovereign Credit Impact From Australia PM Change – Fitch”

Data indicates the recession is effectively here; it’s what policy makers do next that counts

From The Conversation. The latest economic figures released by the Australian Bureau of Statistics (ABS) have fuelled the debate on the future of the Australian economy and prompted many to ask: “Will Australia go into a recession?” This question is legitimate, but off the mark. In fact, the data tells us that we should not … Continue reading “Data indicates the recession is effectively here; it’s what policy makers do next that counts”

Middle Income Households Income Is Getting Squeezed

Data from the ABS looking at income and wealth, shows that the average income of high income households rose by 7 per cent between 2011-12 and 2013-14, to $2,037 per week, whist low income households have experienced an increase of around 3 per cent in average weekly household income compared with middle income households which … Continue reading “Middle Income Households Income Is Getting Squeezed”