How Low Will Australia's Central Bank Go On Rates?
The Reserve Bank of Australia this week cut rates by 25 basis points, for the second time this year, while pulling off a post-Covid economic crisis soft landing for the local economy that few central banks have been able to execute.
This week on the podcast, Rebecca Jones speaks to Bloomberg Economics' James McIntyre about the outlook for interest rates, how that could be affected by Trump's tariff war, and what it all means for the housing market.
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Yahoo
11 minutes ago
- Yahoo
Aussie 'appalled' by $4,000 ATO bill after common tax return mistake
Welcome to legal column, where lawyers Alison and Jillian Barrett from Maurice Blackburn tackle problems everyday Aussies face — whether it be consumer, property, or money matters impacting relationships or work. This week, an Aussie is concerned about their tax return after finding out they owe the ATO money. Question I recently filled out my ATO tax return, fully expecting a rebate. I only earned $80,000 last year and I had loads of deductions to make. However, I was appalled to find out I actually owe the tax office money — it turned out I'd been on the wrong code all year. They also pushed back on a lot of my deductions and said they weren't tax-deductible work expenses. Now I have a bill for $4,000 and no means to pay it. Is there anything I can do to dispute my tax bill? Also, why aren't things like my work clothes and my travel to work claimable on tax when I wouldn't use them if I didn't work? RELATED Common neighbour problem plaguing Aussie houses: 'No right' Warning for working from home Aussies over common practice Little-known cryptocurrency detail that could impact millions: 'Lost forever' Answer Receiving an unexpected tax bill can be a distressing experience, particularly when you're anticipating a refund but instead are hit with a bill. Generally speaking, the amount of tax that is deducted should be accurate so that a person does not get a large tax bill or a large refund. There are exceptions to this, including if there are large legitimate deductions that can be made, which would result in a refund. However, if you've been on the wrong tax code throughout the year, insufficient tax would have been withheld from your income, resulting in a liability to the Australian Taxation Office (ATO). Your first step should be to understand the basis of the tax debt. If the ATO has rejected certain deductions or identified an incorrect withholding rate, you are entitled to request a detailed explanation. The ATO provides mechanisms for taxpayers to dispute assessments. You may lodge a formal objection under Part IVC of the Taxation Administration Act 1953. The formal objection must be submitted in writing and within the prescribed time limits (generally within two years of the notice of assessment for individuals). The objection should clearly state the grounds on which you disagree with the assessment and include supporting documentation. What happens if you can't afford to fight an ATO debt? If you are experiencing financial hardship and cannot afford professional representation, you may be eligible for assistance through the National Tax Clinic program. These clinics, often run by universities, offer free help to individuals who need support navigating the tax system. Additionally, the ATO offers a service called Dispute Assist, which facilitates early resolution of disputes for unrepresented taxpayers. In cases where the issue stems from incorrect information in your tax return, such as misreported income or overlooked deductions, you may be able to amend your return online via myGov. This is often a faster and more straightforward process than lodging a formal objection. How can I know what is and isn't a work-related expense for the ATO? In relation to work-related expenses, the Australian tax law draws a clear line between deductible and non-deductible items. The general principle is that expenses must be incurred in the course of earning assessable income and must not be private or domestic in nature. Work clothing is only deductible if it is occupation-specific, protective, or a registered uniform. For example, knives for a chef or a high-visibility vest may qualify, but conventional business attire, even if required by your employer, does not. This is because such clothing can be worn outside of work and is therefore considered private. Similarly, travel between home and your regular place of employment is generally not deductible. This is classified as private travel, even if you perform work-related tasks during the commute. Exceptions exist for travel between multiple work sites or if you are required to transport bulky equipment and have no secure storage at your workplace. While the tax system may seem unforgiving, there are legal avenues available to dispute assessments and seek relief. Understanding the rules around deductions and engaging with the ATO through formal channels can help resolve your situation. If needed, seek professional advice or contact a tax clinic to ensure your rights are protected. This legal information is general in nature and should not be regarded as specific legal advice. If you need legal advice, you should consult a in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
11 minutes ago
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Apprentice tradie forced to work 85 hours a week as dire pay issue exposed: 'Draining'
Thousands of apprentice tradespeople are being forced to take on second jobs or side hustles just to get by, and it's taking a huge toll on their mental health. It's no secret that tradies in training don't earn much money. However, with the rising cost of living, some are struggling to make ends meet. Aidan Garcia has been loving his mechanic apprenticeship, but the 18-year-old said it's impossible to live off his roughly $600 per week salary. "It's draining having barely any money," he told Yahoo Finance. RELATED Tradie apprentice shocks with $100,000 salary as she reveals reality of lucrative job Centrelink's 'balancing' move could provide cash boost or expose debt Commonwealth Bank's fresh alert for millions over mass text messages He has to pay $250 per week in rent, living with his brother, and around $110 per week in fuel. After also buying food and paying off his phone bill and other expenses, he has virtually nothing left at the end of each pay cycle to spend on hanging with friends, his partner, or even just squirrelling some cash into his savings. As a result, the second-year trainee has taken on a second job at a My Muscle Chef warehouse, where he does a variety of jobs like cooking food or packing meals into boxes. When he initially started that side gig, he was working eight-and-a-half-hour days at a mechanic shop starting at 7:30am, and then would do an overnight shift at the warehouse from 10:15pm to 6:15am. He did that five days a weekends, he picked up odd jobs on Airtasker, like removing rubbish and helping fix people's gearboxes. At his peak, he was working 85 hours a week. He's since dropped back to just three overnight shifts, but is still doing about 67 hours. He would try to squeeze in sleep whenever he could, whether that was on his lunch break, during his lessons at TAFE, or the few hours between shifts. "It does make you second-guess the apprenticeship," he said, adding that he's been close to dropping out several times. Extra gigs have doubled his income, but at what cost? Garcia admitted it has been a brutal slog, but the extra jobs have lifted his weekly wage from $600 to $1,400. It's given him more financial breathing room, but it meant he had next to zero downtime and is still only just getting by. He's keen to stick with his apprenticeship, as he'll soon be earning much more money. By the time he's fully qualified, his hourly rate is set to go up from the current $16 per hour to at least $28 per hour. But it still bothers him that he could be earning better money elsewhere. "My mates are all doing much better than me," he said. "Some are making good money in the Army and loving it. Another mate told me about a job where he works, and I can make more money there in just three shifts than for a whole week as an apprentice mechanic." But he's not alone. "Most of the people I know either had second jobs or would just be scraping the bottom of the barrel," he added. Research from Apprenticeships Are Us (ARU) has revealed more than 40 per cent of apprentices take on second jobs to help cover rising expenses. This results in extreme burnout and can cause many to drop out of their apprenticeship altogether. Low wages contributing to mass apprentice exodus Australia is in the midst of a trade shortage, and many experts have been sounding the alarm that the housing crisis could become even worse because there aren't enough young people picking up a trade. The National Centre for Vocational Education Research (NCVER) recently found there has been a 17.4 per cent drop in apprenticeship commencements, and the non-completion rate for apprenticeships sits at 60 per cent. Dennis Rodgers, apprentice employment manager at ARU, said with many trainees earning between $26,800 and $29,400 per year, it's no wonder some are dropping out. 'These young workers are forced to make tough choices about basic living costs. On top of that, they're expected to invest thousands of dollars into mandatory tools they need just to do their job,' he said. 'We're at real risk of losing the next generation of skilled workers altogether, and of our skills shortage worsening. "Many young people are simply walking away from apprenticeships because they can't see a viable path forward — financially or mentally.' Garcia said even the most basic toolkit that's essential for his job can cost from $4,000 up to $10,000. Some of his apprentice mates have taken out loans to get these tools, which has put them in further financial strife. The government has announced a $10,000 incentive for apprentices, which gets paid out in instalments over the four-year training program. Garcia said that would be a huge help, but said more needs to be done to help apprentices get paid more and not be forced into working around the clock to survive.
Bloomberg
13 minutes ago
- Bloomberg
Pressure Mounts on Fed Chief Powell in Tee Up to GDP, Jobs Data
Federal Reserve Chair Jerome Powell and his colleagues will step into the central bank's board room on Tuesday to deliberate on interest rates at a time of immense political pressure, evolving trade policy, and economic cross-currents. In a rare occurrence, policymakers will convene in the same week that the government issues reports on gross domestic product, employment and the Fed's preferred price metrics. Fed officials meet Tuesday and Wednesday, and are widely expected to keep rates unchanged again.
