The Reserve Bank (RBA) has maintained the cash rate at 4.35% for June, a decision unanimously anticipated by experts amid ongoing economic pressures.
“With inflation showing little signs of rapid decline, hopes of a rate cut to ease the pressure on household budgets seem further away,” said Graham Cooke (pictured above), Finder’s head of consumer research.
The utilisation of buy now, pay later (BNPL) services has hit record levels in Australia, now accounting for 15% of eCommerce transactions in 2023, as reported by Worldpay’s Global Payments Report 2024.
A significant 44% of surveyed experts find the current BNPL usage alarming, while others suggest a threshold of over 30% would be concerning.
“Once hailed as a way to ease the burden of big-ticket purchases, these financing options can become a major source of budget strain,” Cooke said.
Amid discussions on wealth distribution and economic growth, experts are divided on the role of inheritance taxes.
Shane Oliver of AMP supports a moderate increase, suggesting it could aid in addressing wealth inequality without disrupting economic incentives.
Conversely, Stella Huangfu from the University of Sydney warns that high inheritance taxes might deter savings and investments, potentially stunting economic growth.
Finder’s research highlights a significant gap in estate planning, with 60% of Australians lacking a will.
“Common reasons people make the mistake of not drawing up a will is they don’t think they have sufficient assets to justify making a will, are fearful of discussing death or simply haven’t gotten around to it,” Cooke said.
This oversight can lead to complications in managing one’s estate posthumously.
Despite some recent improvements, the overall sentiment among economists remains tepid.
Housing affordability and employment concerns dominate the discourse, with a largely negative outlook persisting in these areas. Only 13% of experts expressed a positive sentiment in June, a slight increase from May but still indicative of prevalent economic challenges.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
