🦘 400,000 New Aussie Millionaires by 2028, ACCC Takes The Good Guys to Court, Boomers Living It Up Despite Cost of Living Crisis

G’day everyone!

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

• 400,000 New Aussie Millionaires by 2028

• ACCC Takes The Good Guys to Court

• Boomers Living It Up Despite Cost of Living Crisis

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

Australia on Track for Millionaire Boom by 2028

A new UBS Global Wealth Report reveals that Australia is set to welcome 400,000 new millionaires by 2028, taking the total to over 2.4 million.

This rapid growth is fueled by rising home values, superannuation balances, and a flow of generous gifts and inheritances.

The average Aussie saw their wealth balloon by nearly 10% in 2023, outpacing 56 other nations included in the report.

This wealth surge is expected to catapult Australia to the global ranks, making it the second-richest country on paper, right behind the United States.

The UBS Global Wealth Report isn't just a snooze-fest of statistics; it's a goldmine of insights into worldwide wealth trends, making it the go-to guide for anyone keen on the global financial landscape.

So, while you might not be a millionaire just yet, the odds are looking pretty good that your neighbour (or maybe even you!) could be joining the millionaire club soon.

With Australia climbing the wealth rankings, it's an exciting time to keep an eye on those piggy banks!

The Bad News for The Good Guys: ACCC Takes Them to Court!

Hold onto your receipts, folks! The Good Guys, a popular retailer for home appliances and electronics, is in a bit of hot water.

The Australian Competition and Consumer Commission (ACCC) has taken them to the Federal Court, accusing the company of misleading store credit promotions from July 2019 to August 2023. 

So, what went wrong?

The ACCC claims The Good Guys ran 116 campaigns offering store credits for qualifying purchases but didn’t adequately explain that customers needed to opt in for marketing communications to actually snag those credits.

Talk about hidden clauses! Plus, while the company implied the store credits would either never expire or only after a "reasonable" period, most credits vanished within just 7 to 10 days. Yikes!

Gina Cass-Gottlieb, ACCC Chair, emphasises that consumers were often left in the dark about these conditions, with many not receiving the promised store credits even after following all the rules.

The watchdog is seeking penalties, consumer redress, and more.

The Good Guys’ parent company, JB Hi-Fi, isn't taking this lightly. They've stated their compliance with the law is a top priority, and they’ve cooperated fully with the ACCC throughout the investigation.

Let's see how this showdown pans out and remember, always read the fine print!

Newsletter Recommendation

Baby Boomers Break the Bank: Spending Big While Renters Struggle

Commonwealth Bank's recent consumer insights are laying it all out: Baby boomers and older homeowners are living it up, splashing cash on holidays, fine dining, and fancy tech, while renters are pinching pennies.

The data from over seven million customers shows homeowners, especially those who own their homes outright, increased their spending by 2.1% in the last financial year.

In stark contrast, renters cut their expenses by 0.9%. Those with mortgages only bumped up their spending by a modest 1.5%.

The Commonwealth Bank's chief economist, Stephen Halmarick, noted that older Australians are the biggest spenders, often due to freed-up funds from no longer paying mortgages or rent.

Baby boomers, aged 60-plus, are particularly lavish, flocking to travel booking sites with gusto.

Meanwhile, renters are cutting back on everything from dining out to paying bills, and those with hefty mortgage repayments are foregoing new clothes and gadgets.

Despite the Reserve Bank's 13 interest rate hikes since May 2022, aimed at curbing inflation, spending disparities make their job trickier.

Inflation spiked to 4% in the year to May, significantly overshooting the 2-3% target.

While some may grumble about boomers living the high life, Halmarick opines it’s not entirely flawed, suggesting this generation possibly “worked for it.”

As the debate rages, one thing’s certain: right now, not all Aussies are in the same financial boat.

ANZ Boss on High Alert Amid Bond Scandal

ANZ chief executive Shayne Elliott is in the hot seat after revelations surfaced that the bank's markets division might have inflated the value of government bonds by over $50 billion.

In a candid internal memo, Elliott expressed his disappointment that these issues, first reported by the Australian Financial Review, had reached the media but was quick to emphasize that ANZ has been diligently addressing them for months.

The controversy centers around ANZ's markets division allegedly overstating bond trading volumes, a move that likely helped them secure high-value mandates for issuing Commonwealth debt.

To give you the numbers, ANZ initially reported handling $137.6 billion in government bonds but later admitted the actual figure was closer to $83.2 billion.

Elliott assured that the bank is fully co-operating with regulators and will take firm action if any misconduct is found.

The bank has even enlisted external legal experts to dig deep into both trading practices and workplace culture.

This scandal follows earlier accusations of the bank's involvement in rigging interest rates years ago, and despite reforms since 2015, the shadow of past misdeeds looms large.

Adding to Elliott’s worries, ANZ’s share price dropped by 1.2% to $29.34 amid this latest debacle.

As both the government and the corporate watchdog scrutinize ANZ’s actions, the stakes are high for one of Australia’s Big Four banks.

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!