It's been a big week for Australians thinking about their financial future.
Millions of workers are getting a pay rise, the housing market is showing signs of a shift, and new research suggests many people believe they'll need more than $1 million to retire comfortably.
Meanwhile, investors are weighing up what could become the biggest sharemarket listing in history.
Millions of workers are getting a pay rise
Around three million Australians are set to receive a wage increase after the Fair Work Commission handed down its annual wage review on Tuesday.
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The national minimum wage will rise to $26.44 an hour, or just over $1,000 a week, while workers covered by modern awards will receive a 4.75 per cent increase.
For many households, the decision provides some welcome relief after years of rising living costs but they still don’t make up for the fall in real wages since the pandemic despite the increase being above the current rate of inflation at 4.2 per cent.
House prices are starting to tell a different story
Australia's housing market is increasingly becoming a tale of two markets.
National dwelling values were broadly unchanged last month, with the median dwelling price holding at around $942,000, according to Cotality.
Perth and Darwin led the gains, both up 1.5 per cent in May, while Sydney and Melbourne remained under pressure, down 0.9 per cent and 0.8 per cent respectively as higher interest rates and softer economic conditions weighed on demand.
Cotality property researcher Tim Lawless believes national prices could begin falling next month as the government's capital gains tax and negative gearing changes add to the impact of rising interest rates.
Australians think they need more than $1 million to retire
That's according to a survey by Colonial First State, with the figure substantially more than industry estimates.
The survey also found that many Australians expect they will need to work longer than planned before retiring.
The findings highlight growing concern about future living costs and financial security.
The challenge for many households is balancing retirement savings with immediate pressures such as housing costs, energy bills, along with a plan on how to sustain those savings through later life.
Is space the next big investment opportunity?
The investment world’s attention turned skyward this week after Elon Musk unveiled plans for what could become the largest sharemarket listing in history.
SpaceX is seeking to raise around US$75 billion ($105 billion), valuing the company at approximately US$1.75 trillion ($2.46 trillion).
Australian retail investors can participate in the offering, making it one of the most closely watched public listings ever.
While the company has three distinct arms covering space exploration, satellite communications and artificial intelligence, it made a near US$5 billion ($7 billion) loss last year as some experts consider whether it is really worth the hype.
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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