🦘 Big JobSeeker Updates, Netflix Bumps Up Prices, Lendlease Enters JV With American Private Equity Firm

G’day everyone!

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

• Big JobSeeker Updates

• Netflix Bumps Up Prices

• Lendlease Enters JV With American Private Equity Firm

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

Big Changes to JobSeeker: More Flexibility and Support on the Way

In a new wave of updates announced in the 2024 Federal Budget, major changes are slated for millions of JobSeeker recipients.

The government has earmarked a $6.4 million package spread over five years specifically to revise the mutual obligation requirements.

This move comes as a response to critiques labeling the existing measures as overly harsh and unproductive, with a recent report calling out the system for failing to meaningfully enhance recipients' social and economic participation.

Key changes include an extended grace period, exemption for working recipients, leniency for first time offences and a manual termination process, moving away from the current automatic procedure.

Besides softening the compliance regime, the government is injecting $41.2 million over five years to uplift the JobSeeker payment for those eligible with limited working capacity, promising a minimum raise of $54.90 per fortnight.

Despite opposition calls for a higher base rate increase paralleling 90% of the aged pension, Jim Chalmers pointed to recent incremental boosts and additional support measures as evidence of the government's commitment to aiding vulnerable groups.

This shift gears towards a system fostering greater understanding and consistency in handling mutual obligation rules for recipients.

Netflix Raises Subscription Prices in Australia

Netflix has raised its subscription rates in Australia by up to 14%, now charging premium users $25.99, up from $22.99, and standard subscribers $18.99, increasing from $16.99. The ad-supported plan also saw a rise, going from $6.99 to $7.99.

Despite updating their website with these price changes, most existing users have yet to receive this news directly via email.

Netflix plans to inform users of the price hike via email, timed with their individual billing cycles and 30 days before the new rates apply.

This increase follows a stringent crackdown on password sharing by Netflix, contributing to significant increases since the service launched in Australia about a decade ago.

Back then, ad-free subscriptions started at $8.99; they have now more than doubled, substantially outpacing the average inflation rate of 29% during this period.

Personal finance experts from Finder speculated that these higher costs might prompt some users to cancel their subscriptions, notably amidst the rising living expenses in Australia.

With essential services and leisure options becoming pricier due to inflation, Australians may need to reconsider their media subscriptions, particularly when they subscribe to multiple streaming services.

This shift marks a significant turn from the once-affordable entertainment streaming options to a more costly commitment for consumers.

Lendlease Forms $147 Million Joint Venture with Warburg Pincus to Tap Into Asia-Pacific Life Sciences Market

Lendlease, a major Australian developer, is expanding into the life sciences real estate sector through a new joint venture with U.S. based private equity giant Warburg Pincus.

The partnership, valued at $147 million, aims to establish a leading life sciences platform in the Asia-Pacific region.

This move involves Lendlease transferring its existing life sciences construction, development capabilities, and investments in Asia to this new entity.

The joint venture will not only leverage Lendlease's three-decade experience in supporting top pharmaceutical and life sciences companies but also benefit from Warburg Pincus's extensive investment expertise, which manages assets worth over $81 billion globally.

According to Lendlease's Global CEO, Tony Lombardo, this partnership is poised to create significant new investment opportunities and is expected to be the forefront player in the integrated life sciences real estate sector in Asia-Pacific.

This strategic move is part of Lendlease's broader goal to simplify its operations and enhance shareholder value, evident from its recent activities including developing a $1.7 billion project in Melbourne and selling assets worth over $1 billion to Stockland and Supalai.

The deal, expected to bring in around $66 million in net cash for Lendlease, is subject to key conditions including regulatory approvals.

Lendlease keeps its fiscal year 2024 guidance at a 7% return on equity, contingent on completing this deal among others.

Bare Shelves and Frustration: Woolworths Grapples with IT Glitch in Queensland

Woolworths stores in Queensland are facing significant disruptions, with shelves left empty following a substantial IT issue that impaired their supply chain.

This disruption, bearing an unfortunate resemblance to pandemic-related shortages, has sparked customer complaints on social media, particularly regarding the scarcity of fresh produce.

Woolworths' Chief Commercial Officer, Paul Harker, addressed the cause of these disruptions during a session with the Queensland parliament's inquiry into supermarket pricing.

He explained the complications stemmed from a failed upgrade to their warehouse management system, leading to what he called "carnage" in distributing stock to stores throughout Brisbane and southeast Queensland.

The company has issued apologies for the inconvenience, promising that efforts are underway to correct the glitch and improve the supply situation.

They assured continued acceptance of stock from suppliers to prevent further shortages, despite distribution challenges.

A Woolworths spokesperson revealed that delivery delays were concentrated in certain Brisbane distribution centers but reassured customers that they are striving to return to normal operations soon.

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