Major Australian companies are sending billions of dollars to shareholders’ bank accounts as dividend payment season ramps up.
BHP, which is Australia’s largest listed organisation, delivered US$5 billion ($7.12 billion) in dividends to its investors on Wednesday.
That means its 450,000 retail shareholders may have received a fully franked final dividend of $1.38 for each share they hold in BHP.
It’s been a big year for the so-called “Big Australian” after copper became the company’s largest earnings contributor for the first time.
The nation’s most widely held stock is Telstra, though, with an estimated 1 million shareholders.
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On Thursday it delivered its final dividend of 10.5 cents per share, paying out $1.2 billion dollars over the last financial year.
Of course, not all shareholders elect to receive dividends into their bank account, with some opting to reinvest that payment instead.
Millions of Australians have exposure to shares like BHP and Telstra through their superannuation fund.
Credit and debit card surcharges are going
It might be worth paying closer attention at the checkout next week to see how businesses are handling new credit and debit card surcharge rules.
From 1 October, those surcharges will be banned, eliminating the fee that is added to the price of goods and services.
It means the advertised price of a product should be the price you pay at the checkout.
Right now, a $5 coffee, for example, might actually be $5.08 when a surcharge is applied.
While the RBA has reduced some background fees associated with card payments to help small businesses make the change, they’ll still incur an expense, which means many will be forced to decide whether to absorb it or pass it on to customers.
So, from 1 October, will that $5 coffee still be advertised as $5, or will it go up to $5.08 or more?
Sarah Megginson from consumer group Finder says some small businesses may look to other forms of payment to reduce costs.
“You can use PayID and bank transfers, which transfer instantly, so you might see small businesses turn to these more affordable ways to accept cash,” she told the SBS On the Money Podcast.
Some larger businesses are doing away with card payments altogether as a direct result of the changes.
DEFT, an online secure payment system used by thousands of renters and homeowners, no longer accepts debit or credit card payments, instead pointing customers to payment options like PayID, BPAY or Australia Post.
To fund the changes, banks are also making adjustments through rewards cards, annual fees and bonus points restructuring,
Not all fees and surcharges are disappearing with these new rules, though, because they don’t extend to weekend or public holiday surcharges, booking fees, or service fees.
Interest rates may still rise despite a higher jobless rate
Earlier this week, Reserve Bank Governor Michele Bullock warned the unemployment rate may need to rise to as much as 5 per cent to help ease inflation, which in turn could lower interest rates.
Fresh ABS data on Thursday revealed more people are now in the workforce or looking for work, which could be a sign of cost of living pressures, while of the near 40,000 jobs created last month, they were all part-time, suggesting many may have been related to Census workers.
The headline jobless rate has climbed from 4.5 per cent to 4.6 per cent, which is a near five-year high.
Westpac senior economist Pat Bustamante says the RBA is still likely to lift interest rates on Tuesday.
“We think a September hike is locked in and reflects the data we’ve already seen,” Bustamante said. “Going forward, particularly in November, if the labour market eases a bit more than what they’re expecting, we can see them pause and wait.”
Higher inflation will likely prompt the bank to pull the trigger, which is only likely to get worse, according to HSBC chief economist Paul Bloxham, who has two more interest rate rises this year pencilled in.
Bloxham says this is because overseas factors are adding to inflation, like higher fuel prices from the Middle East war, unfavourable weather and El Niño driving up food prices, and the AI investment boom.
Want more on the world of money and markets? The SBS On the Money podcast breaks down the latest every weekday. You can tune in here or wherever you get your podcasts.
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