Economy

12/03/2017

Aussies in the dark as big changes loom for credit card, loan and mortgage applications

NEW rules affecting every Australian applying for credit cards, loans or mortgages will soon kick in, but most people don’t even know about them. That’s the warning from credit rating bureau Experian, which says two thirds of Australians are unaware of looming changes to national credit reporting requirements that will enable lenders to see a lot more information about a customer’s financial history. At the moment, lenders only share negative data, like defaults and bankruptcies. But under amended privacy laws […]

09/03/2017

There’s no housing bubble in Australia, heads of big four banks say

Soaring home prices in Australia’s biggest cities don’t necessarily mean the country is in the grip of a housing bubble, according to the heads of the big four banks. Testifying at the parliamentary inquiry into banking this week, the chief executives of National Australia Bank, Westpac and Commonwealth Bank all said that while they are worried about elements of the housing market, prices aren’t over-inflated. “I would draw the distinction between a speculative bubble in prices and prices beyond what […]

08/03/2017

RBA leaves cash rate on hold in March

THE Reserve Bank has left the official cash rate on hold at 1.5 per cent for the sixth meeting in a row. The RBA was widely expected to keep rates steady at its March meeting after the national accounts released last week showed a marked turnaround in economic growth. Reserve Bank governor Philip Lowe last month spoke three times about keeping rates on hold to balance the need to boost inflation while maintaining financial stability amid record household debt. Real […]

07/03/2017

CBA: Victoria’s tax on vacant homes may be a blueprint for other cities in Australia

Following in the footsteps of policymakers in Vancouver, the Victorian government announced yesterday that it will introduce a 1% “Vacant Residential Property Tax” from January 1 next year, designed to raise revenue from investors who choose not to occupy or rent out a vacant dwelling. It will be based on the improved value of a taxable property, and will target homes around the inner and middle suburbs of Melbourne. For an investor with a vacant property worth $500,000, the tax […]

06/03/2017

RBA likely to leave interest rates on hold amid record household debt, as ASIC examines lending standards

Philip Lowe has some high-powered backing if he leaves interest rates on hold Tuesday as widely expected. Days after the Reserve Bank of Australia governor signalled that rate cuts weren’t in the national interest amid record household debt, the securities regulator said it was looking at mortgage lending standards across the banking sector. The Organisation for Economic Co-operation & Development last week highlighted risks posed by Australian property and private debt. Sydney house prices have soared 73 per cent in […]