Jim Chalmers’ small tax cuts spark significant budget concerns

Treasurer Jim Chalmers’ modest $5 weekly tax cuts face criticism for lacking significant cost-of-living relief.

Published

11 months ago

March 25, 2025

Ahron Young

Treasurer Jim Chalmers’ modest $5 weekly tax cuts face criticism for lacking significant cost-of-living relief.

In Short

Treasurer Jim Chalmers announced new tax cuts for Australians earning over $45,000, starting next year, with minimal weekly savings that critics view as inadequate for easing living costs. He linked these changes to efforts in lowering medical costs and emphasised the overall budget impact, despite scepticism regarding their significant contribution to public welfare.

Treasurer Jim Chalmers has announced new tax cuts affecting Australians earning over $45,000, set to take effect next year.

These changes will provide a minimal tax cut of $5 per week, amounting to $268 annually in 2026, and doubling to $536 in 2027.

While these adjustments build on prior tax cuts initiated by Labor, critics see the amounts as insufficient to significantly ease living costs.

Chalmers emphasised that the combined effects of multiple tax cuts would total around $50 per week by 2027-28 for the average worker.

Bulk billing

He linked this initiative to a broader strategy to alleviate cost of living pressures, which includes increased bulk billing and cheaper medicines.

The government is also raising low-income thresholds for the Medicare levy, ensuring one million Australians remain exempt or pay less tax.

Despite the modesty of the new tax cuts, the total budget impact is substantial, costing $17 billion by 2030.

Chalmers stated the government aims to balance budget constraints while addressing bracket creep and rewarding workers.

Overall, while Chalmers positions these changes as a significant contribution to public welfare, the reality of the tax cuts has been received with scepticism due to their trivial financial impact.

Alphabet launches $20B bond to fund AI expansion

Alphabet’s $20B bond offering highlights investor confidence in AI growth, enabling funding without shareholder dilution.

Published

18 hours ago

February 11, 2026

Harvey Vargas

Alphabet’s $20B bond offering highlights investor confidence in AI growth, enabling funding without shareholder dilution.

Alphabet has launched a record $20 billion bond offering to finance its massive AI infrastructure build-out, signalling strong investor confidence in the company’s growth strategy. The oversubscribed sale shows that investors are betting on Alphabet’s AI potential and long-term returns.

By using debt instead of equity, Alphabet can raise funds without diluting shareholders. The money will support AI research, advanced computing, and other strategic projects, cementing the company’s leadership in the sector.

Brad Gastwirth from Circular Technologies explains how corporate debt is reshaping tech financing and how investors perceive AI-linked bonds. This record issuance could set a trend for other tech companies looking to fund innovation.

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

Money

AI tax tool sparks market turmoil for financial firms

Major financial firms’ stocks fell sharply after an AI tax tool launch, raising investor fears of disruption in advisory services.

Published

19 hours ago

February 11, 2026

Harvey Vargas

Major financial firms’ stocks fell sharply after an AI tax tool launch, raising investor fears of disruption in advisory services.

Shares of major financial services firms tumbled after the launch of a new AI-powered tax planning tool. LPL Financial dropped nearly 11%, while Charles Schwab and Raymond James Financial fell more than 9%, signalling investor concern over AI disrupting traditional advisory services.

Morgan Stanley also saw a 4% decline as fears grow that AI could replace some of the most profitable offerings of established firms. Earlier this year, the introduction of other AI models already caused turbulence in software stocks, suggesting this could be a broader trend affecting multiple sectors.

The iShares U.S. Broker-Dealers and Securities ETF was down 4% on Tuesday, reflecting the market-wide uncertainty surrounding AI adoption in finance. Investors are closely watching whether AI will complement or cannibalise the industry’s core services.

#AIImpact #WallStreet #FinancialMarkets #InvestingNews #MorganStanley #CharlesSchwab #RaymondJames #FinTech

Money

RBA rate shock: ASX200, Gold and Crypto market

RBA’s interest rate shift impacts ASX200, AUD; gold/silver rebound analyzed amidst upcoming economic data and crypto market navigation.

Published

2 days ago

February 10, 2026

Harvey Vargas

RBA’s interest rate shift impacts ASX200, AUD; gold/silver rebound analyzed amidst upcoming economic data and crypto market navigation.

The RBA’s latest interest rate decision has sent ripples through the ASX200 and AUD, leaving investors weighing what comes next. We break down how these changes could affect global equities ahead of this week’s crucial non-farm payroll and consumer price index releases.

Zoran Kresovic from Blueberry Markets shares his analysis on the rebound in gold and silver after recent market turbulence, and what factors could drive further gains or sell-offs in the commodities market.

We also dive into the current state of cryptocurrencies, exploring how investors can navigate volatility and what to watch as economic data continues to shape market sentiment.

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

#RBA #ASX200 #GoldMarket #SilverRebound #CryptoUpdate #InvestingTips #MarketVolatility #EconomicOutlook