Money
How Airbnb became an election issue across Australia
In the midst of a national housing crisis, exacerbated by a surge in Airbnb listings, state and federal leaders are now being drawn in on the role of short-stay accommodation.
“It’s a systemic issue,” Pattie Chugg, CEO of Shelter Tasmania, told the ABC, emphasising the severity of the housing crunch affecting not only low-income earners but also those with moderate incomes.
Tasmania’s upcoming election has become a battleground for housing reform, with radical proposals emerging to address the pressing crisis.
From ‘no deposit’ home loans to subsidies for renters, political parties are scrambling to win over voters by tackling the contentious issue of Airbnb’s impact on the housing market.
Photograph: Pavlo Gonchar/SOPA Images/Rex/Shutterstock
Couch surfing
What began as an adventurous experience of ‘couch surfing’ has devolved into a draining cycle of vulnerability and uncertainty.
Recent data from the Australian Bureau of Statistics paints a grim picture, revealing a staggering 45% increase in homelessness in Tasmania over five years.
With rents skyrocketing, renters are feeling the squeeze, struggling to keep up with escalating costs.
Tasmania’s population boom, coupled with a surge in tourism, has only exacerbated housing shortages and rental market distortions.
Amid the crisis, the controversy surrounding Airbnb has taken center stage in Tasmania’s election campaign.
Election issue
Both major parties, along with the Greens, have unveiled ambitious plans to address the issue, ranging from stricter regulations to outright bans on new Airbnb listings.
However, concerns linger over the efficacy of proposed solutions, with experts cautioning against measures that could further inflate housing prices without addressing underlying supply constraints.
As Tasmania heads to the polls, the Airbnb controversy has become emblematic of broader housing woes, capturing the attention of policymakers nationwide.
In states like Queensland, the Northern Territory, and the Australian Capital Territory, where elections loom on the horizon, housing issues, particularly the impact of short-stay accommodation, are expected to dominate the agenda.
Money
Fed cuts rates, signals more potentially ahead
Fed lowers rates amid job market concerns, signalling potential further cuts in upcoming meetings
Fed lowers rates amid job market concerns, signalling potential further cuts in upcoming meetings
– The Federal Reserve cut interest rates by a quarter-point to address job market concerns.
– Officials expect at least two additional rate cuts by year-end amid ongoing economic uncertainties.
Fed Chair Jerome Powell noted a significant shift in the labour market, highlighting “downside risk” in his statements.
The recent rate cut, supported by 11 of 12 Fed voters, aims to recalibrate an economy facing uncertainties from policy changes and market pressures.
Policy Dynamics
The decision comes amid intense political scrutiny, with President Trump openly criticising Powell’s reluctance to lower rates.
Despite the controversy, Powell asserts that political pressures do not influence Fed operations.
The current benchmark federal-funds rate now sits between 4% and 4.25%, the lowest since 2021, providing some reprieve to consumers and small businesses. Economic forecasts indicate ongoing complexities, including inflation trends and the impact of tariffs on labour dynamics, complicating future policy decisions.
Money
Fed faces unusual dissent amid leadership uncertainty
Fed’s Powell navigates contentious meeting amid Trump-appointed dissenters as rate cut looms and succession contest heats up
Fed’s Powell navigates contentious meeting amid Trump-appointed dissenters as rate cut looms and succession contest heats up
– This week’s Federal Reserve meeting faces unusual dissent as Chair Powell approaches his term’s end.
– Analysts predict dissent over expected rate cuts due to political pressures from Trump-appointed officials.
The situation is further complicated by the recent swearing-in of Trump adviser Stephen Miran to the Fed’s board, following a Senate confirmation.
Analysts believe Powell may encounter dissent on an expected quarter-percentage-point rate cut from both Trump-appointed officials and regional Fed presidents concerned about inflation.
Potential Dissent
Trump has urged significant rate cuts and for the board to challenge Powell’s decisions.
Some analysts predict dissenting votes from Miran and other Trump appointees in favour of larger cuts. Federal Reserve veterans express concerns that political motivations may undermine the institution’s integrity, with indications that greater dissent could become commonplace.
Money
RBA plans to ban credit card surcharges in Australia
Reserve Bank of Australia plans to ban credit card surcharges despite banks warning of potential higher fees and weaker rewards
Reserve Bank of Australia plans to ban credit card surcharges despite banks warning of potential higher fees and weaker rewards.
– The RBA plans to ban surcharges on debit and credit card transactions, supported by consumer group Choice.
– Major banks oppose the ban, warning it could lead to higher card fees and reduced rewards for credit card users.
The Reserve Bank of Australia (RBA) intends to implement a ban on surcharges associated with debit and credit card transactions. Consumer advocacy group Choice endorses this initiative, arguing that it is unjust for users of low-cost debit cards to incur similar fees as credit card holders.
The major banks, however, are opposing this reform. They caution that the removal of surcharges could prompt customers to abandon credit cards due to diminished rewards.
A final decision by the RBA is anticipated by December 2025.
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