🦘 $1 Billion In Damages From CrowdStrike Outage, Sydney Housing Crisis To Extend Until 2030, Superannuation Guarantee Rate Increases

G’day everyone!

Here’s what we’ve got in store for you today:

• $1 Billion In Damages From CrowdStrike Outage

• Sydney Housing Crisis To Extend Until 2030

• Superannuation Guarantee Rate Increases

Let’s have a look at the market snapshot before jumping into the news:

Tech Tumble: CrowdStrike’s Glitch Leaves Aussie Businesses in Chaos

A massive IT outage caused by cyber giant CrowdStrike is anticipated to cost Australian businesses over $1 billion, with effects lingering for weeks.

The chaos erupted from a faulty software update, grounding planes, shuttering supermarkets, and disrupting operations for countless organizations and millions of people.

Government and business leaders are left in a lurch as they untangle the repercussions.

Innes Willox, CEO of the Australian Industry Group, predicts varying impact across sectors, emphasizing the long tail of this incident.

Businesses are now mulling over their legal options, pondering potential compensation from CrowdStrike or through insurance channels, though the route remains foggy.

Wedbush Securities tech analyst Dan Ives paints a grim picture for CrowdStrike's reputation, expecting long-term brand damage and a barrage of legal battles.

Meanwhile, Ajay Unni of Stickman Cyber urges businesses to rethink their software testing strategies to prevent future debacles.

On a personal note, individuals like oncology nurse Felicity Sims faced severe inconvenience.

Stranded in Bali due to cancelled flights, Sims and her family dealt with unexpected expenses and missed commitments back home.

As everyone picks up the pieces, one thing is clear: this digital disaster is a wake-up call for stricter tech checks.

Is Homeownership Just a Distant Dream? Sydney's Housing Crisis Stays Unyielding

It’s hard out there for a Sydneysider dreaming of homeownership.

A recent study has shattered hopes, suggesting that Sydney won’t see truly affordable housing until at least the 2030s. Yikes!

The report paints a bleak picture for part-time workers who are completely out of the running for homeownership.

Even those hustling full-time are feeling the pinch.

And it’s not just a Sydney thing - young folks around the globe are increasingly stuck in precarious rental limbo with spiraling rents and stagnant wages.

Lack of government support for social housing isn’t helping either, pushing low-income renters dangerously close to homelessness.

Building more houses? Nice idea, but it’s not the silver bullet for affordability Down Under.

Factors like financial deregulation, low-cost credit, and property investment incentives are inflating house prices everywhere.

With local governments mandated to embrace high-density housing but dragging their feet on affordable housing requirements, it’s clear that solving this crisis requires a multifaceted approach.

Subsidies for affordable housing, tighter regulations on rental providers, and protective tenant laws could help turn the tide.

Until then, the Sydney housing dream remains a tough nut to crack.

Superannuation Guarantee Rate Hike to Add $21,000 to Your Retirement Savings

Get ready for a happier retirement, folks!

The superannuation guarantee (SG) rate just got a bump from 11% to 11.5%, meaning your employer's contributions to your super account are on the rise.

Over your working life, this could pad your retirement fund by up to $21,000 – not too shabby, right?

Here's how it shakes out: Effective this month, bosses need to chip in a minimum of 11.5% of your salary into your super.

For the average Aussie earning about $80,000 a year, this change is a game-changer, especially if you've got a few decades left before you clock out for good.

But wait, it gets better – the SG rate will keep climbing each year until it hits 12% by July 2025.

More contributions mean a bigger nest egg, helping ensure you've got enough cash to live comfortably once you retire.

The government's been nudging this rate higher to make sure everyone has solid retirement savings.

While this uptick is a win for many, don't forget to keep an eye on your super account to ensure your boss is making the right contributions.

So, keep calm and watch your super grow! Retirement just got a little brighter.

Cash Converters Cashing In: Revenue Rockets Amid Cost-of-Living Crunch

Cash Converters is riding the wave of the circular economy and cost-of-living pressures to big bucks!

The subprime lender and pawn shop operator has reported a dazzling 26% jump in revenue for FY24, hitting a cool $382.6 million.

Here's the lowdown on their golden year:

• Revenue Surge: Up by 26% to $382.6 million. 🎉

• Loan Book Bloom: Their gross loan book grew by 6%, now at $288.1 million, with more loans tipping into the $2,000 to $5,000 range.

• Aussie Action: Retail revenue from Aussie corporate stores jumped by 11%, adding to the coffers.

• International Wins: New UK stores played a significant role in pumping up revenue.

• Living Cost Crunch: The global squeeze on living costs is driving demand for their budget-friendly services.

• Regulatory Winds: Expected reforms, especially in the BNPL sector, could be a tailwind for them.

Managing director Sam Budiselik noted the company's robust trading and its knack for tapping into the circular economy and cost-of-living dynamics.

With all these elements in play, Cash Converters seems set to keep the momentum going.

You Made It!

If you’ve read all the way up to here, we just wanted to let you know that you’re an absolute legend!

Time to go to work and show off how clued up you are about what’s going on in the business world 💪

Keep an eye out for tomorrow's newsletter. Until then, we’d love to get your feedback below!