Here is a look at what is making news around the country today.
Today’s national news includes the alcohol excise tax is expected to top up to more than $100 per litre, the housing market implodes on Aussie homebuilders, giant telecom company Telstra to cut 500 jobs, and airlines could ditch flights to Australia in the future.
Economy
Telstra to cut 500 jobs
Australia’s biggest telecommunications company Telstra is planning to cut nearly 500 jobs due to changes from digitisation and automation, as well as its exit from some legacy products and services, Reuters has reported. The company said the reduction amounts to just over 1 per cent of its total workforce but comes at a time when businesses around the world are starting to hunt for savings amid persistent inflation and rapidly increasing interest rates. The company said the cuts would not affect customer-facing units.
Business
Market implodes on Aussie homebuilders
After 18 months of widespread builder collapses, the leading indicators for housing construction continue to worsen. The Australian Bureau of Statistics has released data showing that the number of dwellings approved for construction has fallen to lows not seen since mid-2012. Separate data on finance commitments for the construction of new homes also plummeted to an all-time low in May, down 74 per cent from the peak in January 2021. Treasury Secretary Steven Kennedy said the housing downturn would last until 2025, with investment in new homes likely to fall by 2.5 per cent this year, 3.5 per cent in 2023-24, and 1.5 per cent in 2024-25, Macro Business has reported.
https://www.macrobusiness.com.au/2023/07/market-implodes-on-aussie-home-builders/
Travel
Airlines could ditch flights to Australia in the future
International airlines could cut back flights to Australia in coming years because the high-polluting long-haul routes stand out as low-hanging fruit to meet future environmental commitments, the country’s parliament has been warned. Mandatory emissions reduction schemes for global aviation are still being negotiated. However, Australia risks being “priced out” of the international aviation network when carbon pricing and other binding targets begin taking effect over the next decade, the Australian Airports Association (AAA) said in a submission to a parliamentary inquiry, The Guardian reported.
Beverages
Alcohol excise tax to push up booze prices
The alcohol excise tax, which is tied to inflation, is expected to top up to more than $100 per litre. In practice, buying a $60 bottle of gin would see over half that cost going straight to the taxman, the Daily Mail reported. The excise tax on spirits increases twice yearly in line with the consumer price index. The latest excise increase follows hikes of 4.1 per cent last year and another 3.7 per cent in February. Australians already pay some of the highest taxes on spirits in the world, and manufacturers and distillers are demanding a freeze. The federal government, however, is not considering any.
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