🦘 Salary Required To Buy A Home In Australia, Telstra Price Hike Despite Promises, ATO’s Superannuation Tips

G’day everyone!

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

• Salary Required To Buy A Home In Australia

• Telstra Price Hike Despite Promises

• ATO’s Superannuation Tips

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

What You Need to Earn to Buy a Mid-Range Home in Australia's Capitals

Thinking about buying a home? Brace yourself: property prices are on the rise again.

According to CoreLogic’s latest report, median dwelling values in Australia jumped by 0.7% in June alone and a whopping 8% over the past financial year.

Here’s a snapshot of what you need to earn to afford a median-priced home in each of Australia’s capital cities.

Australia's median dwelling price: $793,883

1. Sydney: $238,800

2. Canberra: $177,672

3. Brisbane: $175,440

4. Melbourne: $159,600

5. Adelaide: $156,876

6. Perth: $154,716

7. Hobart: $132,000

8. Darwin: $103,236

Using a 30% income-to-housing cost ratio and a few assumptions like a 20% deposit and a 6.57% interest rate over 30 years, CoreLogic worked out the annual net incomes needed for these repayments.

While these figures sound daunting, especially with the median value accounting for both units and houses, first-time buyers might have some hope.

Townhouses and units are making up most of the incoming housing supply, which are often more affordable.

Dr. Diaswati Mardiasmo from PRD Real Estate notes that while property prices are likely to keep rising, the growth won't be as extreme as the post-COVID boom.

So, don’t throw away your homeownership dreams just yet.

Plus, with the housing market stabilizing, there might be some room to breathe as you scout out your new nest.

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Telstra's Price Hike: Mobile Plans Set to Rise in August

Telstra's doing a bit of a U-turn on its earlier promise by announcing that mobile plan prices are set to rise in August, just months after saying there wouldn't be any hikes in July.

The cost of most plans and pre-paid offers is going up by $2 to $4 a month.

Post-paid customers will feel the pinch starting August 27, while pre-paid users have until October 22 before the increase kicks in.

Interestingly, for those on the cheapest standalone post-paid plans, Telstra is throwing in an upgrade by removing data speed caps.

This change is part of Telstra's move away from inflation-linked price hikes, which they scrapped earlier this year when they cut 2800 jobs to save $350 million.

Telstra bosses Brad Whitcomb and Vicki Brady have assured everyone that the price bump considers the high living costs.

They argue it’s necessary to continue investing in their network and improving services like scam protection.

Telstra, Australia's mobile network giant with 22.5 million retail services, posted a $2.1 billion profit last year.

So, while customers might be reaching deeper into their pockets, Telstra justifies that overall, telco prices haven't risen as sharply as other household costs over the last decade.

So, new charges are coming, but it's all in the name of better service and security - or so they say.

Boost Your Super: ATO’s New Superannuation Tips for Aussie Workers

As of July 1, your superannuation game just got a lift, thanks to a bump in compulsory employer contributions.

But don't just sit back and relax – the Australian Taxation Office (ATO) is urging everyone to get proactive about their super savings.

Emma Rosenzweig, the ATO's Deputy Commissioner, is sounding the alarm: double-check your super to ensure you're getting all your entitlements.

She suggests making voluntary payments on top of the compulsory ones for a bigger nest egg over time.

After all, your super isn’t just for retirement - it’s a key investment throughout your working life.

So, what exactly changed?

The super guarantee rate climbed from 11% to 11.5%, meaning employers will now drop a slightly higher share of your salary into your super fund.

For the average worker, this translates to about an extra $340 a year, and even more if you're on a higher salary.

But that’s not all!

The caps for contributing additional funds to your super have also been lifted, plus the thresholds for government co-contributions.

This is great news for low-income earners looking to boost their retirement savings.

Now's the time to take those small steps for a mega impact on your financial future—your super fund will thank you!

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!