🦘 Average Retirement Age Nearing 70, Consumer Confidence Takes a Dive, Chalmers Proposing Game Changing M&A Laws

G’day everyone!

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

• Average Retirement Age Nearing 70

• Consumer Confidence Takes a Dive

• Chalmers Proposing Game Changing M&A Laws

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

Working 'Til We Drop: Aussies Pushing Retirement Later Than Ever

In a striking throwback to the '70s, Aussies are clocking out of the workforce later than they have in decades, with men retiring at an average age of 66.2 and women at 64.8.

This uptick, spurred by COVID-19, has seen many over 55 leaning into employment rather than leisure in their later years. 

A significant chunk of new jobs since 2019 has been snagged by this demographic, challenging the traditional retirement timeline.

The landscape is shifting, with work-life extending and retirement dreams possibly pushing closer to the big 7-0.

KPMG's insights reveal this trend mirrors a broader shift towards white-collar roles, enabling older workers to stay in the game longer.

Whether driven by financial needs, the quest for social interaction, or a shift to passion projects, the reasons behind this trend are as diverse as they are personal. 

As this pattern continues, the benefits are multifaceted - from personal income boosts to alleviating the tax burden on younger generations, indicating a positive ripple effect on the economy and society at large.

Aussies' Wallets Feel the Pinch as Consumer Confidence Takes a Dive

Down Under, wallets are tightening as Australian consumer confidence dips to its lowest in April, amidst the relentless grip of high inflation and interest rates. 

The Westpac Banking Corp. survey unveils a 2.4% fall in sentiment, marking a prolonged period of consumer pessimism not seen since the early '90s. 

With consumer prices outpacing wage growth significantly, households are feeling the squeeze.

Despite hopes pinned on potential rate cuts, the Reserve Bank of Australia treads carefully, mindful of a still robust labour market and steady house price inflation.

Yet, a glimmer of relief is on the horizon with anticipated tax cuts come July. 

The survey paints a grim picture of household financial health, underscoring a dire need for the upcoming tax relief.

Economic outlook confidence has also waned, reflecting broader concerns about Australia's fiscal future.

As the RBA navigates this tightrope, the upcoming CPI update looms crucial, potentially steering future monetary policy directions.

Chalmers Cracks Down on Market Monopolies

Jim Chalmers, Australia's Treasurer, is rolling up his sleeves to tighten the reins on corporate mergers that could stifle competition.

Rejecting the notion of a blanket ban on mergers, Chalmers is set to empower the Australian Competition and Consumer Commission (ACCC) to block deals that could entrench market dominance or result from serial acquisitions.

This move targets acquisitions that might escape scrutiny under current laws, aiming to balance the field and ensure more transparency and fairness in merger assessments.

The government's stance strikes a middle ground, focusing on "presumptive approvals" for mergers unless proven problematic, rather than a "presumptive ban."

With over 1400 mergers hitting the $300 billion mark last year, this reform signals a significant shift in how Australia handles corporate consolidation, promising a more competitive and diverse market landscape.

Aussie Startups Feel the Funding Chill

In what seems like a paradox, Australian startups faced a double-edged sword in the first quarter of 2024. 

On one hand, the number of funding deals plummeted to a six-year low with just 66 raises, but on the bright side, the median amount raised soared, indicating a healthier investment landscape for those who made the cut.

Female-led startups, particularly in the biotech sector, shone brightly, raking in a record $147 million, largely thanks to innovative solutions for peanut allergies.

Despite the lower deal count, investor sentiment is on the rise, with many seeing the glass half full regarding the health and prospects of their portfolios.

However, the scarcity of smaller deals points to a tougher climate for emerging startups, hinting at a higher bar for investment and a leaner, more selective funding environment moving forward.

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