Tag Archives: oceania

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Young Aussies won’t end up worse off than their parents, but there’s a catch

Today's young Australians are unlikely to end up worse off than their parents, but they're being slammed by financial roadblocks early in life when they can least afford it, new research has found.

Income growth has slowed for younger Australians, tertiary education rates have more than doubled compared to their parents' generation, and they're entering into the property market later.

But research from independent think tank the e61 Institute has found young Australians' earnings will likely become stronger later in life, thanks to longer careers, chunkier super balances and larger inheritances from their parents.

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Treasurer Jim Chalmers has said there will be a focus on intergenerational equity in next month's federal budget.

But e61 principal economist Jack Buckley said the simple story of generational winners and losers "hides a more complex picture".

"The problem is not that younger Australians will end up poorer than their parents but that the fiscal system frontloads costs onto years when they can least afford them, including through the repayment of large HELP debts and forgoing 12 per cent of their pay through compulsory super contributions, right when many are trying to save for their first home and start a family," Buckley said.

The average inflation-adjusted income of a 35-year-old in 2023, around $90,000, is actually almost 80 per cent higher than the average 35-year-old in the late 1980s.

What's more, the median household income of a 35-year-old today is about $380,000, which is roughly in line with earlier generations at the same age.

Inheritance is likely to be the defining feature of inequality for the next generation of Aussies, with Baby Boomers expected to pass on a whopping $175 billion annually via their wills.

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Crowds at an auction

"Older Australians are sitting on a windfall from rising asset prices, and most of that wealth will be passed down unevenly through inheritance," Buckley said.

"That inheritance boom will increase inequality within a generation in a way that's far more consequential than any gap between generations."

The e61 report says reforms pitched to remove stumbling blocks for young Australians, including an inheritance tax and removing capital gains tax exemptions on family homes, could prove more challenging than they're worth.

Instead, researchers believe a GST increase, which would act as a quasi-wealth tax, is the most practical option.

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Federal treasurer Jim Chalmers.

"An increase in the GST would capture this windfall as it is spent down, without requiring complex new wealth assessment infrastructure," Buckley said.

"Paired with higher benefits for low-income households and income tax relief, it could tap this windfall while better supporting those on low incomes."

Australia's 10 per cent GST is lower than many consumption taxes in other comparable economies.

Ideally, productivity growth is the key to securing the financial future of the next generation, Buckley added.

"Behind all of these distributional questions sits a deeper issue: Australia's fiscal system was built for stronger productivity growth than we have now.

"The biggest thing we can do for younger Australians is embrace a pro-growth agenda."

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Sydney’s public transport system set for $820m transformation

A major $820 million overhaul is underway for Sydney's public transport, which the government claims will bring better reliability, accurate travel information and greater ease of use for millions of commuters.

The transformation of the Opal card will bring a new app and digital card, automatic fare adjustment if incorrect fares are charged, and information screens on 5000 buses for the first time.

The card has been a mainstay on Sydney transport for 13 years, based on London's Oyster card, a piece of technology that is almost 30 years old. 

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SYDNEY - FEB 21 2019:Opal Card User. Opal is a contact less smart card ticketing system for public transport services in the greater Sydney area of New South Wales, Australia.

Event-goers will also now be able to scan a QR code on their ticket at an Opal reader for free transport.

The first of 25,000 new readers will start to be installed next year, with the project expected to be completed in 2028.

"This will be a major step up for passengers on the public transport network," NSW Transport Minister John Graham said. 

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More accurate real-time tracking also promises to end the frustration of 'ghost buses', services that appear on your apps but never show up.

"It will locate those buses, it will count patronage, it will tell us where the busiest and the most crowded buses are and when they are next available coming to a stop near you," Transport Secretary Josh Murray said.

Commuters will still be able to use a card, their credit cards, or phones to tap, with the promise of easier ways to save money.

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Tourist drowns after being swept off rocks at popular WA beach

A young tourist has drowned after being swept off rocks at a popular tourist spot near Yallingup, around 250 kilometres south of Perth.

The man, aged in his 20s, was swept into the sea at Indijup Natural Spa just after midday yesterday.

Police and other emergency services were called to the beach at 12.20pm, where the man was found unresponsive in the water.

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He was unable to be revived.

Western Australian police told nine.com.au that the man's death is not being treated as suspicious and a report will be prepared for the coroner.

Acting South West Superintendent Andy Elliott told the ABC the man had "limited swimming abilities" and attempts to get flotation devices to him were unsuccessful.

Indijup Natural Spa is a popular tourist attraction in the region, with visitors often seen taking photos while standing on the rocks.

The death is at least the third at the site in the past decade.

In October 2020, a 23-year-old woman died after being swept off the rocks into the water with her friends' rescue efforts unsuccessful.

Four years before that, 25-year-old Matthias Bache vanished after jumping off rocks into the ocean at the tourist site.

Warning signs have since been installed highlighting the dangers of walking along the rocks.

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