Albo Following Through On Huge Tax Cuts 🤑

G’day everyone! Hope your morning hasn’t been too hectic!

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

• Tax cuts 🤑🤑🤑

• 65,000 jobs were lost in Australia before Christmas, but the unemployment rate has stayed the same?

• Canva announces plans for massive renovation of their city office

Before we get into it, let’s take a look at our market snapshot for today:

Albo’s Following Through on His Tax Cut Promise

Anthony Albanese has decided to stick to his pre-election promise to deliver the Stage 3 tax cuts to Australians, but not everyone is happy about it…

Let’s first have a look at exactly what the changes are:

If you’re making more than $45,000 a year, get ready for a good surprise!

Previously, every dollar earned between $45,000-$200,000 was taxed from anywhere between 32.5%-45%. The stage 3 tax cuts will bring this down to a flat 30% tax rate for everyone in this income bracket.

This is good news for a whopping 600,000 people! So what’s the hassle?

Some critics are saying these cuts favor the high rollers earning over $200,000.

They argue that the big bucks saved by CEOs and politicians could've been used for other cost-of-living aids. In fact, this tax cut is expected to cost the government a whopping $69 billion over four years. That's a lot of zeros!

There are also some concerns that this might fuel inflation again, considering that we’ll all be rushing to spend our saved tax dollars! Only time will tell how it all plays out.

The countdown to July 1 begins!

Unemployment Rate Stays Stable Despite Record Job Loss

The ABS just dropped some bombshell figures: over 65,000 jobs were lost last month, the biggest plunge since '93 (excluding those COVID lockdown blues).

While the unemployment rate has stayed stable at 3.9%, the number of full-time jobs took a nosedive by a staggering 106,600.
But, plot twist, part-time gigs actually went up by 41,400. Seems like a balancing act, right? Well, not quite.

This shake-up led to a 0.5% drop in total work hours. The participation rate, that's the chunk of Aussies working or job hunting, slumped from 67.3% to 66.8%. That's the biggest dip we've seen in 35 years (again, excluding COVID)!

Experts are scratching their heads, wondering if this is just a statistical blip after a couple of months of job market sunshine.

Despite the job drop, the overall labor market is still holding strong.

We've actually seen a net increase of 50,000 jobs in the last quarter of 2023. Still, some analysts, like Ben Udy of Oxford Economics, are betting on a tougher 2024, predicting the unemployment rate might creep up to 4.5%.

And what does the Reserve Bank think of all this? According to ANZ's Adelaide Timbrell, they might be quietly cheering.

With more folks in part-time work and thinking twice about their spending, it's like hitting the brakes on the economy – which might be just what the RBA ordered in their fight against inflation.

Canva Unveils Plans For Makeover of Surry Hills Office

A round of applause for Canva everyone 👏

After a phenomenal growth year in 2023, they're diving into a major makeover of their recently acquired Sydney office, located at 8 Kippax Street, for a hefty $120 million. This Surry Hills spot is set to unite their Sydney staff, currently scattered across the city, under one roof.

Valued at a jaw-dropping $39 billion, Canva is expanding fast. They've grown their global team to 4,000, a 39% increase, and this 12,000sqm office is pivotal for their future growth, especially in the enterprise sector. It's part of their broader expansion, which saw new campuses open in Austin, Melbourne, and London in 2023.

Targeting a 2026 launch, the revamped Sydney HQ will boast a rooftop recreation area, a café, and a gym, blending work with wellness.

It's a bright spot in a tech sector that's seen its share of ups and downs. Despite a valuation drop from over $60 billion in 2021 to around $40 billion in 2022, Canva is still riding high, even getting a clean bill of health from the Australian Prudential Regulation Authority (APRA) in September.

With over 170 million users in 190 countries and a record-breaking 358,000 job applications in 2023, Canva's on a roll. This Sydney office refurb is just the latest chapter in their exciting journey.

Let me quickly go check if Canva is hiring…

Tony Burke Rips into DP World Over Pay Dispute

Get ready for some dockside drama!

Minister Tony Burke is going head-to-head with DP World, a big-time port operator. He's accusing them of playing the media circus instead of properly negotiating with the Maritime Union.

The fallout? A huge jam with 45,000 containers piling up at the ports.

Burke's stance is clear: he's not about DP World asking for government backup. He wants them to hash it out at the negotiation table. The core issue? DP World's keen on changing work schedules, while the union's eyeing a juicy 16% pay rise over two years.

Enter Nicolaj Noes, the executive vice president of Oceania at DP World. He's the guy calling for the government to step in and avoid price hikes. However, Bourke is wary, recalling some of Noes’ previous disputes with workers at his old company.

With this backdrop, PM Albanese is pushing for a fair deal for everyone, including the national economy. Opposition Leader Peter Dutton, though, thinks the government's too tied up with the unions.

As the Maritime Union plans to turn up the heat at DP World's ports, this port showdown is far from over. Stay tuned, Australia – it's getting interesting on the waterfront!

That’s All!

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, have an awesome day folks!