🦘 New Financial Year Changes, ANZ & Suncorp Merger Gets Green Light, Aussie Banks Heading Towards Cashless Payments

G’day everyone!

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

• New Financial Year Changes

• ANZ & Suncorp Merger Gets Green Light

• Aussie Banks Heading Towards Cashless Payments

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

Catching Breaks and Cracking Down: Changes Coming July 1st

Happy new (financial) year folks!

From tax breaks to vaping regulations, a bundle of new measures is rolling out for Aussies starting July 1.

First up, taxpayers will see a bit more cash in their pockets, thanks to the stage three tax cuts.

The 19% rate for incomes up to $45,000 drops to 16%, and the 32.5% rate for incomes up to $135,000 will reduce to 30%.

The average worker is looking at an extra $1,888 a year, or about $36 weekly - cheers to that!

On the energy front, households get a cool $300 relief split into four $75 quarterly deductions.

Additionally, the superannuation guarantee rate bumps up to 11.5%, and minimum wage workers will see a 3.75% pay increase.

Paid parental leave is also getting a boost, eventually reaching 26 weeks by 2026.

As for health and safety, a national ban on engineered stone products aims to shield workers from harmful silica dust, projected to cause 10,000 lung cancer cases.

And in a significant vaping crackdown, vapes move exclusively to pharmacies, requiring over-the-counter purchases with health consultations.

In short, July promises some financial relief and healthier living - just in time for the new financial year!

Mega Merger Alert: ANZ and Suncorp Tie the Knot with $4.9 Billion Deal

Big news from the banking world – ANZ's whopping $4.9 billion acquisition of Suncorp’s banking division just got the green light from Treasurer Jim Chalmers!

This merger could become the largest banking shake-up since Westpac gobbled up St George back in 2008.

But it hasn’t been smooth sailing; ANZ had to leap over a few hurdles, including a tough court challenge to overturn competition concerns.

Let's talk fine print: No ANZ or Suncorp branch closures in regional areas for three years, no net job losses across Australia for that period, plus a push for ANZ to join Australia Post's banking network.

It's all about ensuring the merger doesn't leave communities or workers stranded.

Suncorp’s CEO Steve Johnston is all smiles, aiming to finalize the deal by July 31.

Post-merger, Suncorp will laser-focus on its insurance game, tackling climate change challenges and keeping things affordable for customers.

In a win for Queensland, ANZ is also promising a tech hub in Brisbane, creating 700 tech jobs to sweeten the deal.

So, mark your calendars! This merger is setting the stage for some serious shifts in the banking and insurance sectors. Stay tuned!

Aussie Banks Sound Off: Cash is Out, Digital's In!

Australia's cash is getting ditched for digital as mobile wallets and digital payments take the stage.

According to the Australian Banking Association (ABA), mobile wallet transactions have exploded, growing 18-fold since 2019, with a whopping $126 billion in payments in 2023.

Compare that to $105 billion from ATMs – it’s clear what Aussies prefer.

Digital payments saw a 35% jump last year and cash payments have been declining by about 10% each year since 2007.

Even older Aussies, who used to be cash loyalists, reduced their cash usage by 69%.

Interestingly, regional and remote areas are also catching the digital wave, with an 80% shift toward e-payments.

Face-to-face banking interactions have nosedived — branches saw 47% fewer visits and phone calls dropped by 26%.

But if you’re a cash fan, don’t panic.

The ABA assured the public that banks will keep supporting cash users with over 3500 bank locations. They’ve even set aside $50 million to ensure cash keeps flowing for at least another year.

Meanwhile, some independent MPs are pushing for hefty fines on businesses that refuse cash, stirring up quite the debate.

Digital is booming, but cash isn’t going down without a fight!

Media Shake-Up: Nine Entertainment Cuts 200 Jobs Amid Economic Chill

Brrr! It’s getting frosty in media land, and the forecasts for commercial outlets aren’t looking sunny.

Nine Entertainment just announced up to 200 job cuts, with half coming from its publishing wings, 38 from TV news, and the rest from digital and head office.

This shake-up follows hot on the heels of similar moves by News Ltd and Seven West Media, signaling a broader industry trend.

The economic chill has put advertisers in a belt-tightening mode, leading to a drop in marketing spends.

Adding fuel to the fire, Meta has decided to stop funding traditional media under Australia’s 2021 legislation, leaving outlets scrambling.

Nine’s CEO, Mike Sneesby, stated the firm is grappling with global economic pressures and is on the lookout for more areas to trim fat.

The turbulence isn't just financial - Nine has been rocked by scandals, including the abrupt resignation of former chairman Peter Costello amid allegations and the departure of its news boss over misconduct reports.

Meanwhile, Rupert Murdoch's News Corp and Kerry Stokes' Seven West Media are also undergoing significant overhauls to cut costs and streamline operations.

It’s a tough time for media giants, and with the economy growing at a snail's pace and corporate earnings flattening, the RBA might face an uphill battle managing inflation without triggering more job losses.

Hang tight; it's a bumpy ride ahead for the media world.

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!