It’s been another big week for household finances, with the federal budget dominating attention as rising prices and global uncertainty continue to weigh on Australians.
Tax reform is likely to flow through to sharemarket investors, and bank shares were sold off as a result.
Hopefully, an impending rise to the minimum wage will help low-income earners, although the debate on how much to actually lift it stepped up this week.
And as the market awaits official jobs numbers next week, we took a look at how AI is shaping the hiring market.
Sharemarket investors react to budget tax changes
The federal budget delivered one of the biggest shake-ups to property investment tax settings in years.
Negative gearing will be limited to newly-built homes, while the current 50 per cent capital gains tax discount will be replaced by a model linked to inflation.
Future investment gains will also face a minimum 30 per cent tax rate, although most existing investments will receive some grandfathering protections.
Bank shares tumbled, with the Commonwealth Bank suffering its worst one-day decline on record during the week.
There are fears the new rules may hit the investor loan books of banks across the board, but it also came as CBA unveiled its quarterly profit result and warned of a tougher economic climate ahead.
As its share price fell, BHP rose to its highest on record to overtake the bank as Australia’s largest listed company.
The fight over minimum wages heats up
The debate over wages intensified this week after unions lifted their push for a six per cent increase to the minimum wage from five per cent.
The revised move came after the federal budget forecast inflation would peak at five per cent by the middle of this year before easing to around 2.5 per cent next year.
If granted, the increase would lift the minimum wage to $26.45 an hour, or just over $1,000 a week.
But employer groups are pushing back hard. The Australian Industry Group labelled the proposal "ludicrous", arguing anything above its proposed 3.9 per cent increase could worsen inflation and damage businesses already facing rising costs and weaker economic conditions.
The Fair Work Commission is expected to deliver its decision in early June.
AI changing the way people apply for jobs
Artificial intelligence is increasingly changing how people look for work.
New research by recruiters Michael Page shows two-thirds of white-collar workers are now using AI tools to help write resumes, tailor job applications and improve wording.
Employers are also embracing the technology, with many using AI to draft job descriptions and interview questions.
For job seekers, AI can help sharpen applications and save time. But recruiters warn there is a risk of overusing it, especially if applications become too generic or inaccurate.
The shift also highlights how quickly AI is becoming embedded in everyday work and career decisions well beyond the technology sector.
For many Australians, learning how to use these tools effectively may become an increasingly valuable workplace skill.
It's something the CEO of global accounting software group Xero, Sukhinder Singh Cassidy, told me during the week.
That’s this week’s On the Money wrap. Prefer to listen? The 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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