🦘 Light At The End Of The Housing Tunnel? Chalmers Rings RBA Alarm Bell, Star Suspended from ASX

G’day everyone!

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

• Light At The End Of The Housing Tunnel?

• Chalmers Rings RBA Alarm Bell

• Star Suspended from ASX

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

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House Prices Rise, But the Growth Is Slowing - What’s Next for Aussie Homebuyers?

Australian house prices are still on the rise, with a 0.5% bump in August marking the 19th month of increases in CoreLogic's Home Value Index.

However, the rapid growth is beginning to slow down, with average home values now sitting at about $802,357.

While Sydney, Brisbane, Adelaide, and Perth recorded modest increases, cities like Melbourne, Hobart, Darwin, and Canberra saw slight declines.

Experts are hinting that rising interest rates and living costs may be tempering the market.

Despite ongoing price hikes, affordability issues persist, making it tough for many hopeful buyers.

In Melbourne, a more profound downturn is evident, with sellers outnumbering buyers significantly.

On a brighter note, rent prices appear to be stabilizing, suggesting a shift in landlords' fortunes.

Keep an eye on these trends - what goes up may come down, but it’s a wild ride for now!

Chalmers Sounds the Alarm: Interest Rates ‘Smashing’ the Economy!

Treasurer Jim Chalmers is ringing alarm bells about Australia’s economy, attributing its struggles to a series of escalating interest rate rises.

As the government anticipates less-than-stellar economic growth figures due soon, Chalmers stressed it’s a balancing act—tackling inflation without burdening folks already feeling the pinch from interest hikes.

Since May 2022, the Reserve Bank has raised rates 13 times from a cozy 0.1% to a daunting 4.35%, trying to curb spending to combat inflation. 

However, the economy is limping along, growing a mere 0.1% in early 2024 and just 1.1% over the past year.

Critics, including Shadow Finance Minister Jane Hume, are accusing Chalmers of playing the blame game with the Reserve Bank, while Prime Minister Albanese simply acknowledged that rate rises naturally impact the economy.

With warnings of potentially the lowest growth rate since 1991 on the horizon, it's clear Australia is navigating some choppy economic waters.

Casino Chaos: ASX Hits Pause on Star Entertainment Shares!

The Star Entertainment Group has hit rock bottom, as the ASX slapped a trading suspension on its shares after it failed to deliver its annual financial report on time.

The company operates famous casinos in Sydney, Brisbane, and the Gold Coast, but things have taken a turn for the worse.

Star's internal struggles culminated in a trading halt request last Friday, following a harsh report from the NSW Independent Casino Commission highlighting missed opportunities to address significant challenges.

This week, reports have emerged that Star is seeking new funding to help weather the storm, with a staggering $1.4 billion write-down looming over its casino assets.

With ongoing scrutiny and a history of compliance issues, the future is uncertain for Star as it tries to secure its gaming license in Sydney.

Will they be able to turn the tides? Only time will tell!

Heads Up, Aussies: ATO Is Coming for Your Tax Debts!

The Australian Taxation Office (ATO) is stepping up its game, chasing overdue tax debts like a hawk.

After already cutting some slack during the pandemic, the ATO is now ramping up its collection efforts.

Tax expert Hripsime Demirdjian warns that they're not just going after big debts; even smaller amounts are on their radar.

If you owe money from taxes and have ignored those bills, it’s time to take them seriously.

Missed deadlines mean interest charges rack up daily, currently sitting at an annual rate of 11.36%.

And starting in mid-2025, those interest payments won’t even be tax-deductible!

If you can’t pay, you can request a payment plan, but remember, the ATO will still charge you interest.

So, don’t let your tax problems snowball - act now before the ATO escalates its efforts even further!

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