🦘 Aussie Shares Recover From Correction, Universities Outraged By International Student Cap, ATO Warns Against This Common Tax Error

G’day everyone!

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

• Aussie Shares Recover From Correction

• Universities Outraged By International Student Cap

• ATO Warns Against This Common Tax Error

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

Aussie Shares Bounce Back: Investors Snap Up Bargains

The Australian share market saw a modest climb for the second consecutive day, as bargain hunters stepped in to take advantage of the recent dip.

This uptick was largely driven by a stronger-than-expected US Services PMI, which helped alleviate fears of a looming recession in the world's largest economy.

ANZ researchers pointed out that although the US labor market is slowing, it's far from collapsing.

Most sectors on the ASX had a good day, with telecommunications and utilities leading the charge; Telstra surged 1.3% and AGL Energy jumped 1.9%.

The materials and financials sectors were exceptions, dipping slightly by 0.2% and 0.1% respectively.

Lithium developers stole the limelight, with Arcadium up 7.5% after pausing its Canadian expansion, while Pilbara and IGO rose 6.4% and 4.8% respectively.

In the banking sector, ANZ was the only one of the Big Four banks to notch a gain, inching up by 0.2% to $27.36.

In currency news, the Aussie dollar strengthened against several major currencies, trading at 65.39 US cents and 95.83 Japanese yen.

It seems like bargain hunters might be just what the market needed to get back on track!

Universities Up in Arms Over Proposed Student Caps: Job Cuts Loom

University lobbyists are up in arms over the Albanese government’s move to cap international student numbers, calling it "rushed policy" and a "political smokescreen."

The Education Services for Overseas Students Amendment Bill 2024 aims to limit international students and grant the Education Minister more power over courses.

Luke Sheehy, chief of Universities Australia, slammed the bill at a senate committee hearing, warning it could slash $4.3 billion from the economy and trigger 14,000 job losses.

The National Tertiary Education Union (NTEU) echoed the concerns, blasting both the government and university management for dangling job cuts as a bargaining tool.

Meanwhile, the government justifies the cap by citing rental crises in capital cities and the need to weed out dodgy operators.

Critics like Vicki Thomson, head of the Group of Eight, argue the bill is "draconian" and economically irresponsible, painting Australian universities unfairly as "shonks and crooks."

The sector, contributing nearly $50 billion annually to the economy, stands to lose significantly.

The Business Council of Australia also criticized the proposal, saying it threatens real solutions to high housing costs and broader economic stability.

In the midst of these debates, stakeholders call for the government to reconsider and propose better policies to safeguard both jobs and the country's educational reputation.

Stay tuned as the bill continues through legislative hurdles.

ATO’s Tax-Time Alert: No More Guesswork on Work-Related Deductions

The Australian Taxation Office (ATO) is sounding the alarm about correctly claiming work-related expenses this tax season.

ATO Assistant Commissioner Rob Thomson stresses the need for Aussies to have proper documentation and proof for their deductions, aiming to clear up widespread misconceptions.

Here are the ATO’s three golden rules for claiming work-related expenses:

1. You must have spent the money yourself.

2. The expense must directly relate to earning your income.

3. You need a record (typically a receipt) to back it up.

Thomson highlighted that work-related expenses are a major scrutiny area this year, with more than 8 million claims made last year.

To help taxpayers, the myDeductions tool on the ATO app is available for electronically storing receipts.

One common myth shattered by Thomson: You can't just claim $300 for work-related expenses without proof.

If your total claim is under $300, receipts aren't needed, but proof of the expenditure is still required.

Thomson emphasizes that a mere bank statement isn’t enough; you need detailed records.

Accounting expert Belinda Raso advises keeping copies of receipts, notes on the expense, and even photos of the purchased items to ensure claims hold up under ATO examination.

Confused about what you can claim?

The ATO has occupation-specific guides to clarify eligible deductions.

Stay ahead of the taxman and make sure your records are in tip-top shape to avoid any nasty surprises this tax time!

Bean There, Done That: Coffee Prices Surge as Climate Takes a Toll

Aussie coffee lovers, brace yourselves - your beloved morning cuppa is about to get pricier.

Thanks to rough weather in Brazil and Vietnam, the costs of arabica and robusta coffee beans are shooting through the roof, and there's no relief in sight.

The iconic flat white is feeling the squeeze.

Average prices in Australia hover around $4.78, but global cities are seeing almost double that.

Rising bean costs have prompted even major brands like Nestle and Lavazza to pass the cost onto consumers. And for Aussies, it means paying more for that cherished boost of caffeine.

• Brazil's arabica growers are wrestling with soaring temperatures and drought, leaving coffee plants parched and under-producing.

• Robustas in Vietnam, mainly used for instant coffee, are suffering too, pushing prices to record highs.

This dual disaster has Aussie roasters grappling with nearly double the bean prices from just two years ago.

Even making coffee at home is no escape.

With climate change tightening its grip and coffee land shrinking, expect home-brewing costs to climb.

So next time you sip your flat white, know it's worth every cent - just be prepared to pay a few more of them.

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!