🦘 Big Win For NSW Renters, Rate Cut Hopes Continue to Fade, Australia’s State Rankings

G’day everyone!

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

• Big Win For NSW Renters

• Rate Cut Hopes Continue to Fade

• Australia’s State Rankings

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

No-Grounds Evictions Get the Boot in NSW: Renters Breathe a Sigh of Relief

Renters in New South Wales are celebrating a major win as the government moves to ban no-grounds evictions, providing tenants with much-needed security.

Premier Chris Minns has announced new legislation to kick in later this year, putting an end to sudden, baseless eviction notices that have left many on the edge of homelessness.

This change will affect both fixed-term and month-to-month rental agreements.

Leo Patterson Ross, the CEO of the NSW Tenants' Union, highlighted the severe mental strain and disruption no-grounds evictions can cause, uprooting individuals from their communities and leaving them in a state of uncertainty.

Beyond the emotional toll, the financial impact is considerable.

One elderly tenant shared her ordeal of facing eviction four times in a decade, each time draining her limited savings.

Under current rules, landlords can issue a no-grounds eviction notice, giving tenants 30 to 60 days to vacate for fixed-term leases, and at least 90 days for periodic ones.

The new reforms will require landlords to provide valid reasons for evicting tenants - like lease breaches, property damage, or failure to pay rent - effectively ending arbitrary terminations.

Penalties loom for those who fail to comply, and properties slated for renovations can't be re-rented for at least four weeks.

Fixed-term notice periods would also extend: 30 to 60 days for leases under six months, and 60 to 90 days for those over six months, while periodic notice periods stay the same.

Premier Minns assured that these changes still allow for the eviction of problematic tenants but aim to create a more stable renting environment.

This move aligns NSW with other states like Victoria, South Australia, and the ACT, which already have similar protections in place.

Keep an eye out for more updates as these changes roll in and aim to make renting in NSW a less stressful experience!

Inflation Data May Dash Hopes of Rate Cuts

Aussie mortgage holders, brace yourselves! More mortgage pain might be looming with inflation data coming on Wednesday.

Treasurer Jim Chalmers cautions that the figures will likely reflect "persistent" price pressures that could prompt another rate hike.

While inflation has decreased significantly since the 2022 peaks, Chalmers warns it’s still bouncing around, or as he puts it, “It zigs and zags a bit.”

The inflation climb became evident when the ABS revealed a rise to 4% for the year to May, higher than expected.

Another rate increase could shrink the spending power for many Aussies, as banks pass these hikes to mortgage holders eagerly.

Deloitte hinted that another hike might just be the “straw on the camel’s back,” given our current economic woes with low consumer confidence and rising insolvencies.

Commonwealth Bank thinks the decision rests on whether inflation climbs by more than 1.1% this quarter.

Any rate increase decision from the Reserve Bank of Australia (RBA) won’t come easy, as even a slight increase of 0.9% could leave room to hold rates steady.

On top of that, global peers like Canada's Bank are cutting rates, foreshadowing what many hoped would be the RBA's next move.

Meanwhile, the politic landscape is feeling the pressure, with the Coalition nudging ahead in the polls thanks to discontent over cost-of-living stresses.

With the RBA Board meeting just around the corner in early August and a federal election on the horizon, all eyes are on this week’s inflation print.

Hold on to your hats, it's going to be an interesting ride!

SA Triumphs Again, Topping Economic Charts With Jobs and Construction Boom

South Australia is on a roll, once more emerging as the nation's economic front-runner thanks to its stellar job market and booming construction activity.

Premier Peter Malinauskas is buzzing with excitement, celebrating SA’s top spot in CommSec’s July State of the States report.

This makes three consecutive quarters at number one - a first for the state.

Malinauskas couldn’t be prouder: “We are number one for jobs, construction, and housing starts. Despite international challenges, the economic opportunities ahead of us are immense.”

Trailing SA is Western Australia, flexing its muscles in population growth and home lending metrics, followed by Victoria.

CommSec’s senior economist, Ryan Felsman, noted that while SA leads in unemployment rates, construction, and dwelling starts, WA's momentum is hard to ignore.

Nationwide, economies are generally being buoyed by strong employment and population increases, even as inflation bites.

The ACT ranks fourth, excelling in economic growth but lagging in employment metrics.

Further down, Queensland and Tasmania secure fifth and sixth places, respectively.

Surprisingly, Australia's biggest economy, NSW, is in seventh place - struggling with lower retail spending.

CommSec’s Felsman emphasized that state economies have slowed due to higher borrowing costs and price pressures, with future paths hinging on job market resilience and interest rates.

The Northern Territory, meanwhile, remains at the bottom.

In short, South Australia continues to shine brightly, demonstrating extraordinary economic vitality and setting a high bar for its rivals.

Rex Airlines Grounds Trading Amid Uncertainty: Turnaround on the Horizon?

Brace yourselves, aviation enthusiasts!

Rex Airlines just hit the pause button on trading, leaving everyone in suspense until Wednesday.

The reason? A pending announcement linked to Deloitte's turnaround experts stepping in, as revealed by a news article over the weekend.

Prime Minister Anthony Albanese chimed in, reminding us that airlines running into turbulence isn't exactly new.

Still, he stressed Rex's critical role in connecting remote communities and the need for a strong Australian aviation industry.

But there's been some bumpy weather inside the cockpit too.

Leadership drama has been brewing, with ex-exec Lim Kim Hai, a major shareholder, ousted in June and now rallying to dethrone current chairman John Sharp and some board members.

On the financial front, Rex reported a $3.2 million loss for the first half of 2023-24 - better than last year’s $16.5 million plunge, but not exactly smooth sailing, thanks to rising fuel costs and other financial hiccups.

Despite some wins, like expanding jet operations to Perth and outshining Qantas and Virgin in punctuality, Rex has battled allegations of anti-competitive antics by Qantas, airport slot shortage in Sydney, and issues with parts and pilots.

With the trading halt signaling an important announcement, Rex might be readying for some major turbulence or a significant course correction!

Stay tuned!

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 💪

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