🦘 Minimum Wage Boost In Effect, NAB’s Online Vacation, Bonza Airlines Officially Goes Under

G’day everyone!

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

• Minimum Wage Boost In Effect

• NAB’s Online Vacation

• Bonza Airlines Officially Goes Under

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

Wage Boost in Oz: Minimum Wage Rises, but Can Small Biz Keep Up?

Australia’s lowest paid workers just scored a financial lifeline with a 3.75% bump in the national minimum wage, thanks to the Fair Work Commission’s latest decision.

This wage hike, benefiting around 2.6 million Aussies (that’s about one in four workers!), now sets the hourly rate at $24 or $915.90 per week.

The move aims to help folks keep up with inflation and tackle those pesky living costs.

Fair Work Commission President, Adam Hatcher, noted that despite previous increases, award wages hadn't kept pace with inflation over the last five years, squeezing household finances.

This decision also took into account tax cut changes, budget measures aimed at easing living costs, and the super guarantee increase to 11.5%.

There were worries that the wage hike might stoke inflation and prompt interest rate hikes.

Yet, economist Ryan Felsman believes the move could actually help dodge a wage-price spiral, potentially benefiting the economy in the long run.

But it's not all sunshine and paychecks - small businesses are feeling the heat.

With the ongoing strain of rising costs, many are concerned the wage hike could worsen their financial woes, with late payments and closure risks becoming a reality.

In a nutshell: while the wage boost is a win for workers, it’s a tough pill for small businesses to swallow. Time will tell if the benefits outweigh the challenges!

NAB Outage Has Customers In a Panic

Woah, things got heated for NAB on Monday when their app and online banking decided to take a mini-vacation.

Thousands of Aussies were left in the lurch, unable to access their accounts or make transactions for several hours.

Reports of trouble started piling in around 1 PM, with frustrated users facing the dreaded “something didn’t work” message when trying to log in.

NAB promptly took to X (formerly known as Twitter) to acknowledge the chaos, assuring everyone that their tech wizards were on the case.

They even reminded customers that urgent queries could still be handled via telephone banking.

But, let’s face it, when you need to pay for your $600 Woolies haul, waiting on hold isn't exactly fun.

Down Detector saw a surge in issue reports, and social media was flooded with less-than-complimentary comments.

One user sarcastically thanked NAB for the grocery jam, while another bluntly labeled the service as "useless." Ouch!

Fortunately, NAB managed to sort things out swiftly.

Now let’s hope their apps and servers can keep their cool next time, saving us all from a cash-only crisis!

Bonza Budget Blues: Airline's Collapse Strands Passengers and Staff

Bonza, the once-promising Australian budget airline, has officially crashed and burned, entering voluntary administration and leaving thousands of passengers and employees in the lurch.

Bonza Holdings has shuttered the operation due to a lack of funding, apologizing profusely to customers, staff, and partners for the upheaval.

Launched in 2021 with the hope of delivering affordable air travel across Australia, Bonza has struggled with delays, cancellations, and lackluster customer service.

The Australian Competition and Consumer Commission (ACCC) had already flagged financial instability, which has now culminated in the airline's collapse.

The ripple effects are significant: passengers are scrambling for refunds or rebooking options, and employees are seeking new job opportunities.

The Australian government is stepping in with an emergency meeting to address the fallout and extend support.

For Passengers:

• Contact travel agents or credit card providers for refunds or rebooking options.

• Checked-in passengers might find alternatives with other airlines or obtain refunds.

• Future bookings with Bonza can be rebooked or refunded through similar channels.

For Employees:

• Job placement support is being coordinated by the airline's administrators.

• Redundant staff may be eligible for government aid like JobSeeker payments.

• Some employees might continue to work with the administrators or transition to other airlines.

The collapse underscores the tough terrain of the aviation industry, further strained by the pandemic and rising costs.

Bonza's downfall stresses the necessity for financial stability and operational efficiency in the sector.

ANZ Bounced for Charging Dead Customers Fees: What's Going On?

ANZ Bank has landed in hot water for charging fees to deceased customers, a practice regulators have labeled “deeply concerning.”

The Australian Prudential Regulation Authority (APRA) slapped ANZ with a $1.2 million penalty after uncovering that the bank charged fees to over 1,000 dead customers between 2018 and 2020, racking up more than $1.2 million in illicit charges.

APRA Chairman, Wayne Byres, didn’t pull punches, emphasizing that it’s crucial for banks to have solid processes in place to manage the accounts of deceased customers to avoid these unnecessary charges.

ANZ's oopsie has been attributed to a mess of poor processes, subpar systems, and lackluster training and oversight.

In response, ANZ has agreed not only to pony up the penalty but also to shell out more than $1.2 million in compensation to the affected families while promising to overhaul its systems to prevent future slip-ups.

This isn’t ANZ's solo act; they’re just the latest in a line of banks getting reprimanded by APRA.

Westpac, Commonwealth Bank, and National Australia Bank have all faced similar music.

Consumer advocates, like Choice, are firing back, calling ANZ’s lapse “unacceptable” and urging the bank to clean up its act and fulfill its duty of care to customers.

ANZ is now focusing on reworking its processes to ensure it doesn’t dance this dance again in the future.

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!