Search

What does Trump’s looming ‘revenge tax’ mean for Australia?

<div class="theconversation-article-body">The Australian Labor Party just won an <a href="https://theconversation.com/albanese-increases-majority-and-dutton-loses-seat-in-stunning-election-landslide-255616">election victory for the ages</a>. Now, it may be forced to walk back one of the key achievements of its first term. Here’s why: United States President Donald Trump is about to declare an income tax war on much of the world – and we Australians are not on the same side. Over in the US, the “<a href="https://www.congress.gov/bill/119th-congress/house-bill/1/text">One Big Beautiful Bill act</a>” – a tax and spending package worth trillions of dollars – has been <a href="https://www.theguardian.com/us-news/2025/may/22/what-is-trump-big-beautiful-bill">passed</a> by the House of Representatives. It’s now before the Senate for consideration. Within it lies a new and highly controversial provision: <a href="https://www.axios.com/2025/05/30/taxes-section-899-big-beautiful-bill">Section 899</a>. This increases various US tax rates payable by taxpayers from any country the US claims is maintaining an “unfair foreign tax” by five percentage points each year, up to an additional 20% loading. Having been an integral part of an international effort to create a global 15% minimum tax, Australia now finds itself in the firing line of Trump’s “<a href="https://finance.yahoo.com/news/revenge-tax-buried-deep-budget-213451951.html">revenge tax</a>” warfare – and it’s a fight we’re unlikely to win. <h2>A global minimum tax rate</h2> The origins of the looming income tax war <a href="https://www.oecd.org/en/publications/2013/07/action-plan-on-base-erosion-and-profit-shifting_g1g30e67.html">started in 2013</a>, when the Organisation for Economic Co-operation and Development (<a href="https://www.oecd.org/en/about.html">OECD</a>) released its plan to stamp out “base erosion and profit shifting”. This refers to a range of strategies often used by multinational companies to minimise the tax they pay, exploiting differences and gaps in the tax rules of different countries. The OECD’s first attempt to tackle the problem was a collection of disparate measures directed not only at corporate tax avoidance, but also controlling tax poaching by national governments and “<a href="https://www.theguardian.com/politics/2013/apr/29/sweetheart-tax-deals">sweetheart deals</a>” negotiated by tax officials. Under both Labor and the Coalition, Australia was initially an enthusiastic backer of these attempts. However, the project was not a widespread success. Many countries endorsed the final reports but, unlike Australia, few countries acted on them. After the failure of this first project, the OECD tried again in 2019. This evolved to encompass two “pillars” to change the global tax rules. <a href="https://www.oecd.org/content/dam/oecd/en/topics/policy-issues/cross-border-and-international-tax/pillar-one-amount-a-fact-sheet.pdf">Pillar one</a> would give more tax to countries where a company’s customers are located. <a href="https://www.oecd.org/en/topics/sub-issues/global-minimum-tax/global-anti-base-erosion-model-rules-pillar-two.html">Pillar two</a> is a minimum tax of 15% on (a version of) the accounting profits of the largest multinationals earned in each country where the multinational operates. Labor picked up this project for the 2022 election, <a href="https://jimchalmers.org/latest-news/media-releases/labor-s-plan-to-ensure-multinationals-pay-their-fair-share-of-tax/">promising</a> to support both pillars – and they honoured that promise. <h2>Mixed success</h2> Around the world, the two pillar project had mixed success. Pillar one was dead-on-arrival: most countries did nothing. But Australia and several other countries, mostly in Europe, implemented pillar two – the global minimum tax. The OECD has always maintained the base erosion and profit shifting (BEPS) project was a coalition of the willing, meant to rebalance the way income tax is allocated between producer and consumer countries, and rid the world of tax havens. In the US, Republicans <a href="https://www.reuters.com/world/us/yellen-us-negotiating-rd-tax-credit-part-global-tax-deal-2024-04-30/">did not share that view</a>. For them, BEPS was simply another attempt by foreign countries to get more tax from US companies. This Republican dissatisfaction with the OECD is now on full display. On the first day of his second term, Trump issued an <a href="https://www.whitehouse.gov/presidential-actions/2025/01/the-organization-for-economic-co-operation-and-development-oecd-global-tax-deal-global-tax-deal/">executive order</a>, formally repudiating any OECD commitments the Biden administration might have given. He also directed his officials to report on options for retaliatory measures the US could take against any foreign countries with income tax rules that are “extraterritorial” or “disproportionately affect American companies”. <h2>Why Australia is so exposed</h2> Australia could find itself in the firing line of Trump’s tax warfare on many fronts. And the US doesn’t lack firepower. Section 899 adds to a number of <a href="https://theconversation.com/what-is-the-90-year-old-tax-rule-trump-could-use-to-double-us-taxes-on-foreigners-248154">retaliatory tax provisions</a> the US already had at its disposal. The increased tax rates would affect Australian super funds and other investors earning dividends, rent, interest, royalties and other income from US companies. Australian super funds in particular are heavily invested in US markets, which have outperformed local stocks in recent years. It would also affect Australian managed funds owning land and infrastructure assets in the US, as well as Australian entities such as banks that carry on business in the US. And there are other measures that would expose US subsidiaries of Australian companies to US higher tax. The bill would even remove the doctrine of sovereign immunity for the governments of “offending” countries. <a href="https://www.ato.gov.au/individuals-and-families/your-tax-return/if-you-disagree-with-an-ato-decision/object-to-a-decision/what-to-include-in-your-objection/supporting-information-to-provide/sovereign-immunity">Sovereign immunity</a> refers to a tax exemption on returns that usually applies to governments. This means the Australian government itself could have to pay tax to the US. There are <a href="https://www.bloomberg.com/news/articles/2025-05-30/trump-revenge-tax-would-lower-foreign-investment-in-us-scorekeeper-predicts">concerns on Wall Street</a> this will dampen demand for US government bonds from foreign governments, which are big buyers of US Treasuries. The argument may sway some in the Senate – but how many remains to be seen. <h2>What Australia may need to do next</h2> We may be incredulous that anyone would consider our tax system combative, but enacting the OECD pillar two was always known to be risky. There are other, homegrown Australian tax measures that have drawn American ire. In 2015, Australia enacted an income tax measure (commonly called the “<a href="https://www.smh.com.au/business/the-economy/google-restructures-to-avoid-hefty-penalties-in-australia-as-tax-bill-hits-16-million-20160429-goi8fl.html">Google tax</a>”) specifically directed at US tech companies. In 2017, we followed this up with a <a href="https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/in-detail/doing-business-in-australia-or-overseas/diverted-profits-tax">diverted profits tax</a>. Trump’s bill specifically targets both measures. Tying ourselves to the OECD’s global minimum tax project might have seemed like a good idea in 2019. In 2025, it looks decidedly unappealing, and not just because of Trump. First, there is not actually any serious revenue in pillar two for Australia. Treasury’s <a href="https://archive.budget.gov.au/2023-24/bp2/download/bp2_2023-24.pdf">revenue estimate</a> totalled only $360 million after four years, just slightly more than a rounding error in the federal budget. Second, we are increasingly alone and vulnerable in this battle. It might feel emotionally satisfying to stand up to the US. If there was a sizeable coalition alongside us, there might be some point. If Trump’s One Big Beautiful Bill act does pass through the US Senate, the Australian government and business will be left exposed to much higher costs. Since abandoning the US market is not really an option, it might be time to surrender quietly and gracefully – by reversing, at the very least, the contentious bits of pillar two.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/257961/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> By <a href="https://theconversation.com/profiles/graeme-cooper-3215">Graeme Cooper</a>, Professor of Taxation Law, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/australia-is-in-the-firing-line-of-trumps-looming-revenge-tax-its-a-fight-were-unlikely-to-win-257961">original article</a>. Image: Pexels / Nataliya Vaitkevich </div>

Money & Banking

Millions of Aussies set for a payrise

Millions of low-paid Australian workers will receive a wage boost from July 1, after the Fair Work Commission (FWC) announced a 3.5 per cent increase to minimum and award wages. The decision affects around 2.9 million workers and will lift the national minimum wage from $24.10 to $24.94 an hour – a weekly increase of nearly $32 for full-time employees. The FWC’s ruling strikes a middle ground between competing demands from unions and business groups. The Australian Council of Trade Unions (ACTU) had pushed for a 4.5 per cent rise, citing the need to help workers keep up with the cost of living, while employer groups including the Australian Chamber of Commerce and Industry had argued for a more modest 2.5 per cent hike. The 3.5 per cent rise is slightly below last year’s 3.75 per cent decision, but still exceeds the current annual inflation rate of 2.4 per cent. With the Reserve Bank forecasting inflation to rise to 3.1 per cent by mid-2026 as government energy subsidies wind down, the FWC’s decision offers workers a modest real wage increase. ACTU Secretary Sally McManus said the decision was a lifeline for workers living paycheque to paycheque. “When you’re on those wages, you’re not saving money. Everything you earn, you spend,” she said. “It’s about whether you can keep up with your bills or not, whether your life gets slightly better, stays the same, or goes backwards.” The ACTU had argued that sustained low wage growth in recent years had left many workers falling behind, and that the time had come for wages to catch up. McManus pointed to productivity improvements in sectors such as hospitality and retail – where many award-dependent workers are employed – as justification for a stronger rise. “The commission previously has said, ‘yes, these workers need to catch up, we’ve just got to wait for the right time’. We say now is the right time,” she said. But employer groups warned the decision will pile pressure on businesses already grappling with rising costs and weak consumer spending. The Council of Small Business Organisations Australia, representing many of the nation’s cafes, restaurants and retail stores, argued a 4.5 per cent jump could have triggered job losses or even business closures. “Anything higher than 2.5 per cent would place unsustainable pressure on small businesses, potentially leading to reduced employment opportunities, business closures, and broader economic harm,” the council said in its submission. The federal government stopped short of recommending a specific number, but called for a “sustainable” increase that would keep wages ahead of inflation without undermining economic stability. AMP chief economist Shane Oliver had forecast the 3.5 per cent increase, suggesting it would give workers a real wage gain without fanning the flames of inflation. “It strikes a balance between supporting household spending power and avoiding a wage-price spiral,” he said. While union leaders expressed disappointment that the rise wasn’t higher, the decision is broadly seen as a compromise designed to support both workers and businesses amid a fragile economic recovery. Image: Shutterstock

Money & Banking

Meet the young princess and future queen who's moving to Australia

In a delightful development that has captivated royal watchers and Australians alike, Norway's Princess Ingrid Alexandra is preparing to start an exciting new chapter – right here in Australia. (Sydney, to be more precise!) The 21-year-old royal, who is second in line to the Norwegian throne, will soon trade Oslo’s snowy landscapes for Sydney’s sunny shores as she embarks on full-time university study. The Royal House of Norway confirmed that the princess will begin a Bachelor of Social Science at the University of Sydney this August, with a focus on international relations and political economy. Adding a touch of tradition to this modern tale, Princess Ingrid Alexandra will be living on campus at the prestigious St Andrew's College. In a warm message to students, the college principal, Dr Daniel Tyler, encouraged the community to respect the princess’s privacy as she settles into campus life. While the Norwegian royal family may be lesser-known in Australia compared to their British or Danish counterparts, that’s expected to change quickly. Crown Princess Mette-Marit, Ingrid’s mother, also has ties to Australia, having studied at Wangaratta High School in Victoria as a teenager. Now, it’s her daughter’s turn to embrace life Down Under. Born in Oslo in 2004, Princess Ingrid Alexandra is poised to make history as Norway's first queen regnant in over 600 years. Her grandfather, King Harald V, currently holds the throne as Europe’s oldest reigning monarch at 88. Ingrid is the eldest child of Crown Prince Haakon and Crown Princess Mette-Marit and has a younger brother, Prince Sverre Magnus. Far from a traditional royal upbringing, Princess Ingrid has forged a path that blends duty, discipline and adventure. Just this April, she completed 15 months of military service, earning respect as an engineer soldier and rifleman with the Norwegian Army's Brigade North. “You are much stronger together,” she told Norwegian media of the experience. “Without [my team], I would not have enjoyed myself as much here.” Ingrid’s move to Australia will pause her official royal duties for up to three years, though she is expected to return home during breaks. She has only recently begun taking on regular public roles, including a landmark appearance at a state banquet earlier this year and joining her family on the royal palace balcony to celebrate Norway’s National Day. Passionate about the environment and global affairs from a young age, Princess Ingrid’s academic focus aligns with her growing commitment to public service. She began official engagements as a child, attending World Environment Day at just five years old, and by age 11 she had already christened a rescue vessel for the Norwegian Society for Sea Rescue. And she’s not just a scholar or a soldier – she's also a sports fan. A talented surfer, Ingrid was named Norway’s junior surfing champion in 2020. She’s also an avid skier and kickboxer, embodying a refreshingly modern image of royalty. With a surfboard possibly in one hand and a textbook in the other, Princess Ingrid Alexandra’s time in Sydney promises to be a uniquely royal adventure – and Australia will be watching with warm anticipation. Images: Instagram

International Travel

Bubsie rides again: A century-old journey retraced across Australia

A century ago, a humble 5-horsepower car named "Bubsie" made history by becoming the first motor vehicle to circumnavigate the Australian continent. Now, a century later, its spirit roars back to life as a devoted team of enthusiasts prepares to retrace its entire 17,500km journey – in a painstakingly restored replica of the original 1923 Citroën 5CV. The year was 1925. With little more than swags, spare tyres and unwavering faith, 22-year-old Seventh-day Adventist missionary Nevill Westwood and his friend Greg Davies set off from Perth in a tiny yellow car. They had a simple mission: deliver literature to the remote outback. What they accomplished was far more profound: a trailblazing voyage across Australia, at a time when roads were scarce and courage was the only constant. Through flooded riverbeds, makeshift tracks and across the sun-scorched Nullarbor, the young men pressed on. With knees jammed beneath the steering wheel, they bounced across the nation in what Westwood affectionately dubbed "Bubsie". The 5CV was small, simple and entirely unsuited for such a grand expedition – yet it carried them across six states, through monsoonal downpours and desolate plains, forging a path for motoring history. Now, exactly 100 years since that audacious journey, a new crew is preparing to retrace their route in a meticulously restored 1923 Citroën 5CV. The project, dubbed <a href="https://rightaroundaustralia.tij.tv/" target="_blank" rel="noopener">Right Around Australia</a>, is led by the faith-based media group The Incredible Journey and has brought together passionate motoring enthusiasts from across the country. Warren May, a car restorer from Western Australia, joined the project in mid-2023 and quickly immersed himself in the mammoth task of rebuilding a vehicle worthy of the original Bubsie. After months of searching, the team found the perfect base: a rare 1923 Citroën 5CV owned by collector Paul Smyth. "It was 102 years old – and in rough shape," Mr May <a href="https://www.abc.net.au/news/2025-05-18/bubsie-citroen-circumnavigation-1925-retraced-in-2025/105257744" target="_blank" rel="noopener">told the ABC</a>. “We had to fabricate a lot of new panels because it was just so old.” The motor, miraculously, was still in good shape. But the bodywork was another story. What followed was a year-long restoration odyssey, with over 1,000 hours of labour, rust cut away and replaced, and every nut and bolt sandblasted and repainted. With the help of friends Colin Gibbs and Graham Tyler, the team brought the little French car back to life – ready to relive one of Australia’s great adventures. The replica has been touring Australia since early 2025, and this June, it will officially begin retracing Bubsie’s route. Starting from Bickley, Western Australia – where Westwood once lived – the car will travel thousands of kilometres, mostly by trailer but driving short stretches through regional towns and historic locations. “It’s about commemorating the courage and determination of those early explorers,” said event organiser Kevin Amos. “Nevill and Greg didn’t have highways. Sometimes they had no roads at all. They literally bush-bashed their way across the country.” Indeed, from the Kimberley to Mount Isa, their journey was defined by improvisation and grit. When they came to the Fitzroy River in northern WA, locals rigged a pulley system to carry Bubsie across. In the Northern Territory, they slid through mud and monsoon rains. They stopped to help others – including a stranded trio near the Nullarbor, who were out of water and near death. Westwood gave them water, fixed their car, and saved their lives. For the modern team, this centennial journey isn’t just about honouring history – it’s about reliving a story of quiet faith and mateship. Dr Laura Cook, curator at the National Museum of Australia where the original Bubsie now rests, said Westwood’s photographs and letters provide a vivid, almost daily account of the 1925 expedition. “His story is more than just a motoring milestone,” she said. “It captures the spirit of a generation who dared to push boundaries. These weren’t professional drivers – they were people of vision and courage.” By December 1925, after six gruelling months, Westwood rolled back into Perth – completing the first full circumnavigation of Australia by car. His companion Greg had returned home early to resume nursing studies, but Westwood pressed on alone. When he returned from overseas the next year, he tracked Bubsie down (it had been sold) and bought it back. Today, Bubsie is more than a car. It’s a symbol of Australia’s pioneering spirit. And as its modern twin prepares to hit the road once more, that legacy rolls forward – not in horsepower, but in heart. So keep an eye out for Bubsie's twin as it rolls through your town, and history comes alive. Images: National Museum of Australia / Right Around Australia

Domestic Travel

RBA cuts interest rate - so what happens now?

<div class="theconversation-article-body"> The Reserve Bank of Australia <a href="https://www.rba.gov.au/media-releases/2025/mr-25-13.html">cut the official interest rate</a> for the second time this year, as it lowered forecasts for Australian economic growth and pointed to increasing uncertainty in the world economy. The bank lowered the <a href="https://www.rba.gov.au/cash-rate-target-overview.html">cash rate target</a> by 0.25%, from 4.1% to 3.85%, saying inflation is expected to remain in the target band. All the big four banks swiftly passed the cut on to households with mortgages. This will save a household with a $500,000 loan about $80 a month. Announcing the cut, the Reserve Bank <a href="https://www.rba.gov.au/media-releases/2025/mr-25-13.html">stressed</a> in its accompanying statement it stands ready to reduce rates again if the economic outlook deteriorates sharply. <blockquote> The Board considered a severe downside scenario and noted that monetary policy is well placed to respond decisively to international developments if they were to have material implications for activity and inflation in Australia. </blockquote> <h2>Inflation is back under control</h2> The latest <a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release">Consumer Price Index</a> showed that inflation remained around the middle of the Reserve Bank’s <a href="https://www.rba.gov.au/education/resources/explainers/australias-inflation-target.html">medium-term target band of 2-3%</a> in the March quarter. The Reserve Bank was also comforted by the underlying inflation measure called the “trimmed mean”. This measure excludes items with the largest price movements up or down. The bank noted that it has returned to the 2–3% target band for the first time since 2021. This suggests inflation is not just temporarily low due to temporary factors such as the electricity price rebates. <iframe id="QQ6io" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/QQ6io/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> In February, Reserve Bank Governor Michele Bullock <a href="https://parlinfo.aph.gov.au/parlInfo/download/committees/commrep/28670/toc_pdf/Economics%20Committee_2025_02_21_Official.pdf;fileType=application%2Fpdf">conceded</a> the bank had arguably been “late raising interest rates on the way up”. It did not want to be late on the way down. Perhaps Bullock is being unduly modest. The central bank looks to have judged well the extent of monetary tightening. It did not raise interest rates as much as its peers, but still got inflation back to the target. <iframe id="ZIcUE" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/ZIcUE/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <h2>Unemployment remains low</h2> Last week, we got an <a href="https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release">update</a> on the strength of the labour market. Unemployment stayed at 4.1%. It has now been around 4% since late 2023, a remarkable achievement. This is below the 4.5% the Reserve Bank had <a href="https://www.rba.gov.au/speeches/2019/sp-ag-2019-06-12-2.html">regarded</a> as the level consistent with steady inflation (in economic jargon, the <a href="https://www.rba.gov.au/education/resources/explainers/nairu.html">NAIRU</a>). But neither prices nor <a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release">wages</a> have accelerated. <iframe id="WYjUU" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/WYjUU/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <h2>Households and businesses may turn cautious</h2> In its updated <a href="https://www.rba.gov.au/publications/smp/2025/may/pdf/statement-on-monetary-policy-2025-05.pdf">forecasts</a>, the bank sees headline inflation dropping to 2.1% by mid-year but going back to 3.0% by the end of the year, as the electricity subsidies are removed. By mid-2027, it will be back near the middle of the 2-3% target. Underlying inflation is forecast to stay around the middle of the target band throughout. The Reserve Bank cut its forecast for gross domestic product (GDP) to 2.1% by December, down from its previous forecast of 2.4% made in February. It said: <blockquote> Economic policy uncertainty has increased sharply alongside recent global developments, and this is expected to prompt some households to increase their precautionary savings and some businesses to postpone some investment decisions. </blockquote> The unemployment rate is expected to increase to 4.3% by the end of the year and remain there through 2026. Cost of living pressures look set to ease, as real household disposable income grows faster than population. As the Reserve Bank governor told a media conference on Tuesday: <blockquote> There’s now a new set of challenges facing the economy, but with inflation declining and the unemployment rate relatively low, we’re well positioned to deal with them. The board remains prepared to take further action if that is required. </blockquote> <h2>Economic and policy ‘unpredictability’</h2> The main uncertainty in the global economy is how the trade war instigated by US President Donald Trump will play out. <a href="https://www.washingtonpost.com/business/2025/05/14/trump-tariffs-china-trade/">According to one count</a>, he has announced new or revised tariff policies about 50 times. “The outlook for the global economy has deteriorated since the February statement. This is due to the adverse impact on global growth from higher tariffs and widespread economic and policy unpredictability,” the bank noted. The US tariff pauses on the highest rates on China and most other nations are due to be in place for 90 days. But more measures may be announced before then. This uncertainty is likely to be stifling trade, and even more so investment decisions by companies in the face of rapidly changing policies. And it will weaken the global economy. In her <a href="https://rba.livecrowdevents.tv/MediaConferenceMonetaryPolicyDecision20May2025/stream">press conference</a>, Bullock said the board’s judgement was that “global trade developments will overall be disinflationary for Australia”. Not only is the global outlook weaker, but some goods no longer being sold to the US could be diverted to Australia. <h2>Where will interest rates go from here?</h2> The Reserve Bank’s updated <a href="https://www.rba.gov.au/publications/smp/2025/may/pdf/statement-on-monetary-policy-2025-05.pdf">forecasts</a> assume interest rates will fall further, to 3.4% by the end of the year. But this is just a reflection of what <a href="https://www.rba.gov.au/statistics/cash-rate/assumptions/index.html">financial markets are implying</a>. It is not necessarily what the bank itself expects to do. It is certainty not a promise of what they will do. But the Reserve Bank still regards its stance as “restrictive”, or weighing on growth. So if it continues to believe inflation will stay within the target band, or the global outlook deteriorates, it will cut rates further.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/256798/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> By <a href="https://theconversation.com/profiles/john-hawkins-746285">John Hawkins</a>, Senior Lecturer, Canberra School of Politics, Economics and Society, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/rba-cuts-interest-rates-ready-to-respond-again-if-the-economy-weakens-further-256798">original article</a>. Image: Sky News </div>

Money & Banking

Millions of Aussies set to receive cost-of-living pay bump

Prime Minister Anthony Albanese has thrown his government’s support behind a “fair” pay rise for Australia's lowest-paid workers, setting the stage for a potential showdown with employer groups ahead of the Fair Work Commission’s annual wage review. In a submission to the Commission, the federal government recommended a real wage increase – meaning one above the rate of inflation – for around three million Australians earning either the minimum wage or under an industry award. The push is part of Labor’s broader strategy to ease cost-of-living pressures and boost household incomes. “This will help around three million workers across the country, including cleaners, retail workers and early childhood educators,” said Treasurer Jim Chalmers and Employment Minister Amanda Rishworth in a joint statement. “Boosting wages, cutting taxes for every taxpayer and creating more jobs are central parts of our efforts to help Australians with the cost of living.” While the government did not specify an exact figure, it made clear that any increase should outpace inflation, a stance likely to be met with resistance from employers. Business groups, including the Australian Chamber of Commerce and Industry, are calling for a more modest 2.5% increase, warning that anything higher could hurt struggling businesses, especially with superannuation contributions set to rise from 11.5% to 12% on July 1. Last year, minimum wage earners received a 3.75% pay rise, lifting the national minimum wage to $24.10 per hour, or $915.90 per week. With headline inflation then at 3.6%, workers saw only a marginal real wage increase of 0.15%. However, the economic backdrop has shifted. In the year to March, overall wages grew by 3.4% while the consumer price index rose just 2.4%, indicating a real wage growth of 1% for many Australians. Inflation is now within the Reserve Bank’s target band of 2-3%, which the government says supports its call for a generous, yet “economically responsible” wage hike. “An increase in minimum and award wages is consistent with inflation sustainably remaining within the RBA's target band and will provide further relief to lower income workers who are still doing it tough,” Chalmers and Rishworth added. Since Labor took office in 2022, the minimum wage has surged by historically high margins: 5.2% in 2022 – the largest rise in 16 years – and 5.75% in 2023. In total, the minimum wage has increased by $143 per week under the Albanese government. Despite concerns from employers over weak economic growth and rising business costs, the government remains optimistic about a rebound in domestic demand. Its submission acknowledged global risks, including the potential impact of Donald Trump's trade policies, but forecast stronger growth in 2025 and 2026. Prime Minister Albanese reinforced Labor’s commitment to wage growth during a cabinet meeting this week, saying a further increase to the minimum wage would be one of his top priorities heading into the next federal election. “Labor will always stand for improving people's wages and conditions,” he declared. Still, the looming expiry of the government’s $75 quarterly electricity rebates at the end of 2025 poses a risk of reigniting inflationary pressures – something the Fair Work Commission will weigh carefully as it prepares to announce its decision in June. The outcome of the review will directly affect 180,000 workers on the national minimum wage and an additional 2.7 million on industry awards, making it a critical flashpoint in the battle over how best to balance worker welfare and economic sustainability. Images: Instagram

Money & Banking

It’s almost winter. Why is Australia still so hot?

<div class="theconversation-article-body"> This year, for many Australians, it feels like summer never left. The sunny days and warm nights have continued well into autumn. Even now, in May, it’s still unusually warm. Much of the southern half of the continent is experiencing both unseasonable warmth and dry conditions. This is linked to persistent high atmospheric pressure (called “blocking”) to the south and southeast of Australia. While temperatures will fall across southern Australia as we approach the winter solstice, early indications are that this winter will be a warm one. Rainfall predictions are less certain. The extra warmth we’ve experienced raises obvious questions about the influence of human-caused climate change. The warming signal is clear and it’s a sign of things to come. <h2>A warm and dry autumn for many</h2> <a href="http://www.bom.gov.au/jsp/awap/temp/index.jsp?colour=colour&time=latest&step=1&map=meananom&period=month&area=nat">March</a> and <a href="http://www.bom.gov.au/jsp/awap/temp/index.jsp?colour=colour&time=latest&step=0&map=meananom&period=month&area=nat">April</a> brought unseasonal heat to much of Australia. March was widely hot, with temperatures several degrees above normal across much of the country. But April’s heat was largely restricted to the southeast. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/666591/original/file-20250507-68-vjvcb5.png?ixlib=rb-4.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/666591/original/file-20250507-68-vjvcb5.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/666591/original/file-20250507-68-vjvcb5.png?ixlib=rb-4.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/666591/original/file-20250507-68-vjvcb5.png?ixlib=rb-4.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/666591/original/file-20250507-68-vjvcb5.png?ixlib=rb-4.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/666591/original/file-20250507-68-vjvcb5.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/666591/original/file-20250507-68-vjvcb5.png?ixlib=rb-4.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/666591/original/file-20250507-68-vjvcb5.png?ixlib=rb-4.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" alt="Graph of rising Australian-average temperatures in March from 1900-2025" /></a><figcaption>Australia had its hottest March on record and the heat has continued, especially in Victoria and parts of New South Wales. <a class="source" href="http://www.bom.gov.au/cgi-bin/climate/change/timeseries.cgi?graph=tmean&area=aus&season=03&ave_yr=0&ave_period=6190">Bureau of Meteorology</a></figcaption></figure> Victoria had its <a href="http://www.bom.gov.au/cgi-bin/climate/change/timeseries.cgi?graph=tmean&area=vic&season=04&ave_yr=0&ave_period=6190">warmest April</a> on record, and parts of the state experienced temperatures more than 3°C above normal across both March and April. Temperatures normally fall quite quickly over the southeast of Australia during April and May as the days shorten and the continent’s interior cools. But this year, southern Australia was unusually warm at the start of May. Some locations experienced days with maximum temperatures more than 10°C above normal for the time of year. Records were broken in <a href="https://www.skynews.com.au/australia-news/weather/hobart-parts-of-melbourne-sweat-through-hottest-may-night-on-record-as-warm-windy-weather-sweeps-across-australias-southeast/news-story/8b1c76fc40c7a84842a5aaf6a57eb038">Hobart</a> and <a href="https://7news.com.au/news/jane-bunn-weather-tuesdays-balmy-morning-in-melbourne-was-just-shy-of-all-time-record-c-18600201">parts of Melbourne</a>, which had their warmest May nights since observations began. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/666592/original/file-20250507-62-nf86bk.gif?ixlib=rb-4.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/666592/original/file-20250507-62-nf86bk.gif?ixlib=rb-4.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/666592/original/file-20250507-62-nf86bk.gif?ixlib=rb-4.1.0&q=45&auto=format&w=600&h=412&fit=crop&dpr=1 600w, https://images.theconversation.com/files/666592/original/file-20250507-62-nf86bk.gif?ixlib=rb-4.1.0&q=30&auto=format&w=600&h=412&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/666592/original/file-20250507-62-nf86bk.gif?ixlib=rb-4.1.0&q=15&auto=format&w=600&h=412&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/666592/original/file-20250507-62-nf86bk.gif?ixlib=rb-4.1.0&q=45&auto=format&w=754&h=518&fit=crop&dpr=1 754w, https://images.theconversation.com/files/666592/original/file-20250507-62-nf86bk.gif?ixlib=rb-4.1.0&q=30&auto=format&w=754&h=518&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/666592/original/file-20250507-62-nf86bk.gif?ixlib=rb-4.1.0&q=15&auto=format&w=754&h=518&fit=crop&dpr=3 2262w" alt="GIF of Australian daily maximum temperature anomalies for 1st to 6th May" /></a><figcaption>The start of May saw daytime maximum temperatures across much of Australia well above average for the time of year. <a class="source" href="http://www.bom.gov.au/jsp/awap/temp/index.jsp?colour=colour&time=history%2Fnat%2F2025050520250505&step=0&map=maxanom&period=daily&area=nat">Bureau of Meteorology</a></figcaption></figure> While Queensland and the New South Wales coast have had very wet spells, including downpours from Tropical Cyclone Alfred at the start of March, other parts of Australia have been quite dry. The area between Adelaide and Melbourne has been exceptionally dry. <a href="http://www.bom.gov.au/climate/maps/rainfall/?variable=rainfall&map=drought&period=3month&region=nat&year=2025&month=04&day=30">A drought is unfolding</a> in the region after a <a href="http://www.bom.gov.au/climate/maps/rainfall/?variable=rainfall&map=drought&period=12month&region=nat&year=2025&month=04&day=30">severe lack of rainfall</a>, with deficits stretching back over the past year or so. Western Tasmania is also suffering from a severe lack of rainfall since the start of autumn, although welcome rain fell in the past week. And it’s not just on land that unusual heat has been observed. The seas around Australia have been warmer than normal, causing severe coral bleaching to <a href="https://theconversation.com/synchronised-bleaching-ningaloo-and-the-great-barrier-reef-are-bleaching-in-unison-for-the-first-time-252906">the west and east</a> of the continent, <a href="https://www.epa.sa.gov.au/environmental_info/water_quality/harmful-algal-blooms">harmful algal blooms</a> and other ecosystem disruptions. <h2>Blocking highs largely to blame</h2> A high pressure system has dominated over the south and southeast of Australia over the past few months. High pressure in the Tasman Sea can sometimes get stuck there for a few days. This leads to what’s known as “blocking”, when the usual passage of weather systems moving from west to east is obstructed. This can lock in weather patterns for several days or even a week. Repeated blocking occurred this autumn. As winds move anticlockwise around high pressure systems in the Southern Hemisphere, blocking highs in the Tasman Sea can bring moist, onshore winds to the New South Wales and Queensland coasts, increasing rainfall. But such high pressure systems also bring drier conditions for the interior of the southeast and much of Victoria and South Australia. Often, these high pressure systems also bring northerly winds to Victoria, and this can cause warmer conditions across much of the state. High pressure systems also tend to bring more clear and sunny conditions, which increases daytime temperatures in particular. Air in high pressure systems moves down towards the surface and this process causes warming, too. Australia sits between the Pacific and Indian Oceans and is subject to their variability, so we often look there to help explain what’s happening with Australia’s climate. In autumn though, our climate influences, such as the El Niño-Southern Oscillation and the Indian Ocean Dipole, are less active and have weaker relationships with Australian climate than at other times of year. Neither of these climate influences is <a href="http://www.bom.gov.au/climate/outlooks/#/overview/influences">in a strong phase</a> at the moment. <h2>A warm winter on the cards</h2> One big question is how long the heat will last. In parts of southeast Australia, including <a href="http://www.bom.gov.au/jsp/ncc/cdio/cvg/av?p_stn_num=086071&p_prim_element_index=0&p_display_type=statGraph&period_of_avg=ALL&normals_years=allYearOfData&staticPage=">Melbourne</a>, average temperatures drop quickly at this time of year as we approach the winter solstice. However, the seasonal outlook from the Bureau of Meteorology points to a high likelihood of a relatively <a href="http://www.bom.gov.au/climate/outlooks/#/temperature/maximum/median/seasonal/0">warm winter</a>. Australians rarely escape having a winter without any significant cold spells, but the long-range forecast suggests we should anticipate above-normal temperatures on average. Both daytime maximum temperatures and nighttime minimum temperatures are expected to be above average generally this winter. <figure><iframe src="https://www.youtube.com/embed/Y5NIa7X2H-s?wmode=transparent&start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe><figcaption>Climate and water long-range forecast, issued 1 May 2025 (Bureau of Meteorology)</figcaption></figure> <h2>Global warming is here</h2> The elephant in the room is climate change. Human-caused climate change is increasing autumn temperatures and the frequency of late season heat events. As greenhouse gas emissions continue at a <a href="https://theconversation.com/global-carbon-emissions-inch-upwards-in-2024-despite-progress-on-evs-renewables-and-deforestation-243133">record pace</a>, expect continued warming and a greater chance of autumn heatwaves in future. The effect of climate change on rainfall is less clear though. For the vast majority of Australia, there is <a href="https://interactive-atlas.ipcc.ch/regional-information">high uncertainty</a> as to whether autumn will become wetter or drier as the world warms.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/256071/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> By <a href="https://theconversation.com/profiles/andrew-king-103126">Andrew King</a>, Associate Professor in Climate Science, ARC Centre of Excellence for 21st Century Weather, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/its-almost-winter-why-is-australia-still-so-hot-256071">original article</a>. Image: Supplied </div>

Travel Trouble

Older Australians are also hurting from the housing crisis. Where are the election policies to help them?

<div class="theconversation-article-body"> It would be impossible at this stage in the election campaign to be unaware that housing is a critical, potentially vote-changing, issue. But the suite of policies being proposed by the <a href="https://theconversation.com/how-do-the-coalition-and-labor-plans-on-housing-differ-and-what-have-they-ignored-253337">major parties</a> largely focus on young, first home buyers. What is glaringly noticeable is the lack of measures to improve availability and affordability for older people. Modern older lives are diverse, yet older people have become too easily pigeonholed. No more so than in respect to property, where a perception has flourished that older people own more than their fair share of housing wealth. While the value of housing has no doubt increased, home <a href="https://www.aihw.gov.au/reports/australias-welfare/home-ownership-and-housing-tenure#:%7E:text=The%20home%20ownership%20rate%20of,compared%20with%2036%25%20in%202021.">ownership rates</a> among people reaching retirement age has actually declined since the mid-1990s. Older people can also face <a href="https://www.anglicare.asn.au/research-advocacy/rental-affordability/">rental stress and homelessness</a> – with almost 20,000 <a href="https://www.abs.gov.au/statistics/people/housing/estimating-homelessness-census/latest-release">homeless people</a> in Australia aged over 55. Severe housing stress is a key contributing to those homelessness figures. It’s easy to blame older Australians for causing, or exacerbating, the housing crisis. But doing so ignores the fact that right now, our housing system is badly failing many older people too. <h2>No age limits</h2> Owning a home has traditionally provided financial security for retirees, especially ones relying on the age pension. This is so much so, that home ownership is sometimes described as the “fourth pillar” of Australia’s retirement system. But housing has become more expensive – to rent or buy – for everyone. Falling rates of <a href="https://grattan.edu.au/report/money-in-retirement/">home ownership</a> combined with carriage of mortgage debt into retirement, restricted access to shrinking stocks of social housing, and lack of housing affordability in the private rental market have a particular impact on older people. <h2>Housing rethink</h2> Housing policy for older Australians has mostly focused on age-specific options, such as retirement villages and aged care. Taking such a limited view excludes other potential solutions from across the broader housing system that should be considered. Furthermore, not all older people want to live in a retirement village, and fewer than <a href="https://www.abs.gov.au/statistics/health/disability/disability-ageing-and-carers-australia-summary-findings/latest-release#:%7E:text=5.5%20million%20Australians%20(21.4%25),a%20profound%20or%20severe%20disability.">5% of older people</a> live in residential aged care. During my <a href="https://www.churchilltrust.com.au/fellow/victoria-cornell-sa-2019/">Churchill Fellowship study</a> exploring alternative, affordable models of housing for older people, I discovered three cultural themes that are stopping us from having a productive conversation about housing for older people. <ul> <li> Australia’s tradition of home ownership undervalues renting and treats housing as a commodity, not a basic need. This disadvantages older renters and those on low income. </li> <li> There’s a stigma regarding welfare in Australia, which influences who is seen as “deserving” and shapes the policy responses. </li> <li> While widely encouraged, “ageing-in-place” means different things to different people. It can include formal facilities or the family home that needs modifications to make it habitable as someone ages. </li> </ul> These themes are firmly entrenched, often driven by policy narratives such as the primacy of home ownership over renting. In the past 50 years or so, many have come to view welfare, such as social housing, as a <a href="https://www.ahuri.edu.au/research/final-reports/390">last resort</a>, and have aimed to age in their family home or move into a “desirable” retirement village. <h2>Variety is key</h2> A more flexible approach could deliver housing for older Australians that is more varied in design, cost and investment models. The promises made so far by political parties to help younger home buyers are welcome. However, the housing system is a complex beast and there is no single quick fix solution. First and foremost, a national housing and homelessness plan is required, which also involves the states and territories. The plan must include explicit consideration of housing options for older people. Funding for housing developments needs to be more flexible in terms of public-private sector investment and direct government assistance that goes beyond first home buyer incentives. <h2>International models</h2> For inspiration, we could look to Denmark, which has developed numerous <a href="https://www.spatialagency.net/database/co-housing">co-housing communities</a>. Co-housing models generally involve self-managing communities where residents have their own private, self-contained home, supported by communal facilities and spaces. They can be developed and designed by the owner or by a social housing provider. They can be age-specific or multi-generational. Funding flexibility, planning and design are key to their success. Institutional investors include <ul> <li> so-called impact investors, who seek social returns and often accept lower financial returns </li> <li> community housing providers </li> <li> member-based organisations, such as mutuals and co-operatives. </li> </ul> Government also plays a part by expediting the development process and providing new pathways to more affordable ownership and rental options. Europe is also leading the way on social housing, where cultural attitudes are different from here. In Vienna, Austria, more than 60% of residents live in 440,000 <a href="https://www.wienerwohnen.at/wiener-gemeindebau/municipal-housing-in-vienna.html">socially provided homes</a>. These homes are available for a person’s entire life, with appropriate age-related modifications permitted if required. At over 20% of the total housing stock, <a href="https://lbf.dk/om-lbf/english-the-danish-social-housing-model/">social housing</a> is also a large sector in Denmark, where the state and municipalities support the construction of non-profit housing. <h2>Overcoming stereotyes</h2> Our population is ageing rapidly, and more older people are now renting or facing housing insecurity. If policymakers continue to ignore their housing needs, even more older people will be at risk of living on the street, and as a result will suffer poor health and social isolation. Overcoming stereotypes - such as the idea that all older people are wealthy homeowners - is key to building fairer, more inclusive solutions. This isn’t just about older Australians. It’s about creating a housing system that works for everyone, at every stage of life.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/255391/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> By <a href="https://theconversation.com/profiles/victoria-cornell-2372746">Victoria Cornell</a>, Research Fellow, <a href="https://theconversation.com/institutions/flinders-university-972">Flinders University</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/older-australians-are-also-hurting-from-the-housing-crisis-where-are-the-election-policies-to-help-them-255391">original article</a>. Image: Shutterstock </div>

Money & Banking

Major change to drivers licences across Australia

Thousands of permanent residents across Australia may soon be driving illegally unless they take urgent action to update their licences, as a major change to driving regulations comes into effect this week. From Wednesday April 30, most states and territories will scrap the Experienced Driver Recognition (EDR) program, a scheme that previously allowed permanent residents to convert their overseas licences to Australian ones without retaking a driving test. Under the new rules, many international drivers will now be required to pass a local driving exam to continue driving legally. This shift affects licence holders from a wide range of countries, including Bulgaria, Czech Republic, Estonia, Hungary, Hong Kong (SAR of China), Latvia, Lithuania, Poland, Cyprus, South Korea, Serbia, Romania, Slovakia, Slovenia, South Africa and Taiwan. Permanent residents from these countries will now need to book and pass both the theory and practical components of the Australian driving test if they wish to maintain legal driving status. However, the rules are different for temporary residents, who will still be permitted to drive using their overseas licences. The changes will be implemented across all states and territories on April 30, with a few exceptions. Queensland will enforce the new requirements later in the year, while New South Wales and Western Australia will delay implementation until October 31. Officials say the change is intended to align road safety standards nationwide and ensure all drivers meet consistent local requirements. Images: Shutterstock

Legal

Australia has the highest gambling losses in the world. Is it time for mandatory limits?

<div class="theconversation-article-body">Gambling prevalence studies provide a snapshot of gambling behaviour, problems and harm in our communities. They are typically conducted about every five years. In some Australian states and territories, four or five have been conducted over the past 20 or so years. These have provided a snapshot into how gambling has changed – and how it has not. So, how has gambling in Australia changed in the past two decades or so, and where may we be heading? <blockquote class="twitter-tweet"> Australia has the highest gambling losses in the world. Australia should: 🚫 Ban gambling ads 🎰 Introduce loss limits on pokies and online gambling 📉 Progressively cut the number of pokies in each state Our new report shows how governments should prevent gambling harm.… <a href="https://t.co/7U3IgzOLSp">pic.twitter.com/7U3IgzOLSp</a> — Grattan Institute (@GrattanInst) <a href="https://twitter.com/GrattanInst/status/1831297414080176469?ref_src=twsrc%5Etfw">September 4, 2024</a></blockquote> <h2>The intensification of gambling</h2> In 1997-98, the Productivity Commission found <a href="https://www.pc.gov.au/inquiries/completed/gambling/report/summary.pdf">about 82% of Australians</a> had gambled in the previous 12 months. Almost all further prevalence studies show the proportion of adults gambling has declined substantially over time. The <a href="https://www.gambleaware.nsw.gov.au/resources-and-education/check-out-our-research/published-research/nsw-gambling-survey-2024">2024 NSW prevalence survey</a>, for example, found 54% reported gambling in the previous 12 months, down from 69% in 2006. While fewer people are gambling, the proportion of people experiencing problems has not changed much, <a href="https://www.qgso.qld.gov.au/statistics/theme/society/gambling/australian-gambling-statistics">nor has gambling turnover</a>. In some states, gambling turnover has increased, even when you take inflation into account. So while a smaller proportion of people are gambling, those who do gamble are doing so more frequently, and spend more money – a phenomenon we have described as the “intensification” of the industry. As figures from the Grattan Institute show, the vast majority of gambling spend comes from a very small proportion of people who gamble. <iframe id="Z6EYJ" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/Z6EYJ/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <h2>What’s the problem?</h2> Typically, the focus in gambling studies has been on “problem gamblers”, a term we now avoid because it can be stigmatising. This refers to those experiencing severe problems due to their gambling, which is typically <a href="https://www.justice.vic.gov.au/justice-system/safer-communities/gambling/victorian-population-gambling-and-health-study-2023">about 1% of the adult population</a>, and around 2% of people who gamble. This doesn’t sound like much, until you remember 1% of adults in Australia is more than 200,000 people. That’s a lot of people struggling with severe problems. Based on recent prevalence surveys in Australia, these gamblers spend <a href="https://www.gambleaware.nsw.gov.au/resources-and-education/check-out-our-research/published-research/nsw-gambling-survey-2024">about 60 times as much</a> as people who do not experience problems. However, that’s just the most severe cases. <h2>How gambling harms people</h2> When most people think of gambling harm, they think about financial harm. But gambling can cause problems with relationships, work and study, emotional and psychological harm, and <a href="https://bmcpublichealth.biomedcentral.com/articles/10.1186/s12889-016-2747-0">even cause health issues</a>. Some degree of gambling harm is experienced by <a href="https://www.gambleaware.nsw.gov.au/resources-and-education/check-out-our-research/published-research/nsw-gambling-survey-2024">around 10-15%</a> of people who gamble. Some groups are overrepresented: young men typically experience very high levels of harm compared to others. Other overrepresented groups are: <ul> <li>those who have not completed tertiary education</li> <li>people who speak a language other than English</li> <li>people who identify as Aboriginal or Torres Strait Islander.</li> </ul> Harm isn’t just experienced by people who gamble, though – it impacts the people around them. While young men are more likely to experience harm from their own gambling, <a href="https://www.gambleaware.nsw.gov.au/resources-and-education/check-out-our-research/published-research/nsw-gambling-survey-2024">women, particularly young women</a>, are most likely to experience harm from someone else’s gambling. When we take all of these sources of harm into account, we get a much better picture of gambling harm in our community: <a href="https://www.gambleaware.nsw.gov.au/resources-and-education/check-out-our-research/published-research/nsw-gambling-survey-2024">around 15-20% of all adults</a> (not all gamblers) experience harm. That’s very different to the figure of 1% we’ve focused on in the past. We’re still missing some accounting, though: we don’t know how much harm is experienced by people under 18, for example, because prevalence studies typically only include adults. <h2>Where does the harm come from?</h2> The most problematic form in Australia is pokies, responsible for <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC10260219/#:%7E:text=EGMs%20are%20responsible%20for%2051,problems%20due%20to%20low%20participation.">about 51-57% of problems</a>. Casinos are responsible for <a href="https://ftp.justice.vic.gov.au/justice-system/safer-communities/gambling/victorian-population-gambling-and-health-study-2023">another 10-14%</a>, although fewer people have been gambling in casino games in recent years. Sports betting and race betting together account for about another 19-20% of harm. Between them, pokies, casino games and sports and race betting account for about 90% of harm to Australian gamblers. <iframe id="w2wEY" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/w2wEY/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <h2>Availability is an issue</h2> This widespread availability of pokies is the biggest single driver behind gambling harm in Australia. <iframe id="hIgeD" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/hIgeD/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> In other countries, pokies are limited to venues that are specifically used for gambling, like casinos or betting shops. We have pokies in a huge number of our pubs and clubs, except in Western Australia. A couple of years ago, we used national prevalence data to compare gambling problems in WA <a href="https://akjournals.com/view/journals/2006/12/3/article-p721.xml">to the rest of the country</a>. A higher percentage of adults in WA gamble, but mostly on the lotteries which are typically <a href="https://theconversation.com/pokies-lotto-sports-betting-which-forms-of-problem-gambling-affect-australians-the-most-240665">not associated with much harm</a>. Gambling on pokies is far less prevalent in WA because they’re only available in one casino. Gambling problems and harm are about one-third lower in WA, and our analysis shows this can be attributed to the limited access to pokies. This also tells us something important. If pokies are not available, people will typically not substitute them with other harmful forms. It points to the role of the availability of dangerous gambling products in gambling harm, rather than personal characteristics. Online gambling has also become a lot more available. Most of us now have a mobile phone almost surgically implanted onto our hand, making online gambling more accessible than ever. Not surprisingly, <a href="https://www.gamblingresearch.org.au/publications/second-national-study-interactive-gambling-australia-2019-20">online gambling continues to increase</a>. <h2>An obvious solution to try</h2> Governments have taken increasingly proactive measures to help address gambling harm, such as the <a href="https://www.dss.gov.au/gambling/resource/national-consumer-protection-framework-online-wagering-national-policy-statement">National Consumer Protection Framework for Online Gambling</a>, strategies for minimising harm such as NSW’s investment into <a href="https://www.nsw.gov.au/media-releases/gambleaware-week-0">gambling harm minimisation</a>, Victoria’s <a href="https://www.theguardian.com/australia-news/2024/nov/26/victoria-pokies-changes-limits-new-laws">proposed reforms on pokies</a> including mandatory precommitment limits, Queensland’s <a href="https://www.publications.qld.gov.au/dataset/gambling-harm-min/resource/84d444db-97e0-4be0-8e87-0c6f0cb412d6">Gambling Harm Minimisation Plan</a> and the ACT’s <a href="https://www.gamblingandracing.act.gov.au/__data/assets/pdf_file/0009/1436580/Strategy-for-gambling-harm-prevention.pdf">Strategy for Gambling Harm Prevention</a>. Voluntary limits have been trialled to help people keep their gambling under control, but have had <a href="https://www.abc.net.au/news/2024-12-03/nsw-government-cashless-gaming-trial-findings-released/104679384">virtually no uptake</a>. For example, the recent <a href="https://www.liquorandgaming.nsw.gov.au/__data/assets/pdf_file/0018/1340136/evaluation-of-the-nsw-digital-gaming-wallet-trial-2024.pdf">NSW Digital Gaming Wallet trial</a> was conducted in 14 venues. Only 32 people were active users, and 14 of these were deemed genuine users. <a href="https://www.adelaide.edu.au/saces/ua/media/652/evaluation-of-yourplay-final-report_0.pdf">Another study</a> found only 0.01% of all money put through machines in Victoria used the voluntary YourPlay scheme. The problem with voluntary limits is, no one volunteers. Mandatory limits though are almost certainly necessary, just like we have mandatory limits for how fast you can drive, or how much you can drink before the bartender puts you in a taxi. There will almost certainly be push back against this, just like the introduction of mandatory seatbelts in the 1970s, or <a href="https://www.abc.net.au/news/2023-10-04/road-safety-history-australia-toll-increase/102903364">the introduction of random breath testing</a>. Now, we accept them as important public health measures. History tells us the same will happen with mandatory gambling limits, even if we’re a bit uncomfortable about it at first.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/252389/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> By <a href="https://theconversation.com/profiles/alex-russell-133860">Alex Russell</a>, Principal Research Fellow, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a>; <a href="https://theconversation.com/profiles/matthew-browne-97705">Matthew Browne</a>, Senior Lecturer in Statistics, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a>, and <a href="https://theconversation.com/profiles/matthew-rockloff-569">Matthew Rockloff</a>, Head, Experimental Gambling Research Lab, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/gambling-in-australia-how-bad-is-the-problem-who-gets-harmed-most-and-where-may-we-be-heading-252389">original article</a>. Image: Shutterstock </div>

Money & Banking

Australia's Next Top Model star passes away at just 27

The fashion world is mourning the loss of Australian model Lucy Markovic, who has tragically passed away at the age of 27 following complications from a brain arteriovenous malformation (AVM). The heartbreaking news was shared via a post on Markovic’s Instagram Story, believed to have been written by her partner. "Dear friends and family, I regret to inform you that Lucy has passed," the message read. "She was at peace. Me, her mother and my mother were present with her. We ask you to please give us space in these hard times. May Lucy rest in peace." Markovic, a former contestant and runner-up on season nine of Australia's Next Top Model, had kept her followers updated on her health journey. Just weeks ago, she had revealed to her 90,000 followers that she was preparing to undergo brain surgery to remove a golf ball-sized AVM. "Excited, thankful, scared, supported, hopeful," she wrote at the time. "Full flood of emotions in this time. Life's a journey and I'm ready for the next chapter." Her modelling agency, Elite Model Management NYC, paid tribute to her spirit and talent in a statement. "We are heartbroken to share that Lucy Markovic has passed away after a brave battle with a brain AVM," the agency wrote on Instagram. "Lucy was a bright shining light, and had an incredible dry sense of humor. Her smile and laughter could light up a room and draw you closer to her. She loved to dance, she really shined." "Modeling was one of Lucy's dreams and we are deeply honoured to have been part of that journey with her," the statement continued. "She brought elegance, strength and beauty to her work. But more than that, she brought herself – her warmth, her laughter, her light." <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/DIRsInvveRP/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/p/DIRsInvveRP/?utm_source=ig_embed&utm_campaign=loading" target="_blank" rel="noopener">A post shared by Elite Model Management NYC (@elitenyc)</a> </div> </blockquote> Tributes have poured in from across the fashion industry. Renowned Italian designer Donatella Versace, for whom Markovic modelled last year, also expressed her sorrow. "I am so sorry to hear the news about Lucy Markovic. Rest in peace, beautiful girl," Versace wrote on her Instagram story. Markovic’s rise in the fashion world was meteoric. After gaining national attention on Australia’s Next Top Model, she went on to walk the runway for global fashion houses such as Versace, Givenchy, and Dion Lee, carving out an impressive international career. In the hours leading up to the announcement of her passing, a heartbreaking post appeared on her social media, sharing that she was "currently battling for her life" and asking for prayers. Six hours later, her loved ones confirmed the devastating news. Images: Instagram

Caring

Virgin Australia issuing refunds to 61,000 travellers

Virgin Australia has announced it will refund approximately 61,000 customers after discovering a pricing error that led to overcharges on itinerary changes made over the past five years. The airline revealed that a glitch in its pricing system caused some tickets to be incorrectly repriced when passengers adjusted their bookings. The issue affected bookings made between April 21, 2020, and March 31, 2025, representing around 0.1 per cent of total reservations during that period. Affected customers will be contacted directly by Virgin Australia, with the average refund expected to be around $55. “At Virgin Australia, we have policies that determine when and how we reprice a guest's booking when they make a change to their itinerary," a spokesperson said in a statement. "We recently found that in some instances, bookings were repriced in a way that does not align with our policy, and we are refunding all impacted guests for that amount." The airline has apologised to affected travellers and launched an "itinerary change claim program" to manage the process. Deloitte Australia has been appointed to assist with handling claims and expediting refunds. "We want to do the right thing, and that means acknowledging when we get things wrong and fixing it," the spokesperson added. "Guests will have up to 12 months to make a claim, and any unclaimed amounts will be donated to charity." Virgin Australia has also notified the Australian Competition and Consumer Commission (ACCC) and pledged to work closely with the regulator to meet any further obligations. The airline confirmed it holds the details of all impacted customers and will be sending out communication, in partnership with Deloitte, on how to claim refunds. Image: Virgin Australia

Travel Trouble

Stunning prediction for Aussie homeowners in wake of Trump's trade war

Australian homeowners could see their mortgage repayments tumble by as much as $9,000 annually if Donald Trump’s escalating trade war triggers a global recession, with experts predicting a double interest rate cut as soon as May. As stock markets worldwide reel from the fallout of Trump’s latest trade moves – with China now deeply involved – fears of a US recession are intensifying. On Monday alone, around $100 billion was wiped from the Australian share market amid growing global trade tensions. Yet, for Australian mortgage holders, there could be a surprising silver lining. According to ANZ, homeowners with a $600,000 loan could save between $76 and $156 a month under four forecasted rate cuts of 0.25 per cent each over the next year. For those with a $500,000 mortgage, repayments could fall by about $76 a month, while families with larger $1 million loans could pocket savings of around $153 monthly – amounting to a staggering $9,000 annually. ANZ’s chief economist, Richard Yetsenga, said the Reserve Bank of Australia (RBA) is expected to cut rates in May, July and August. “We now expect the RBA to ease in May, July, and August – 25 basis points at each meeting,” Yetsenga said, adding that a double rate cut of 50 basis points in May is not off the table if global growth deteriorates further. Earlier this year, the RBA trimmed the cash rate by 25 basis points in February, offering homeowners with variable rate loans some relief – saving them around $100 to $150 a month, or potentially more than $1,200 annually. In a stunning prediction, Treasurer Jim Chalmers echoed these forecasts while hinting at up to four interest rate cuts this year, with the potential for a significant 50 basis point cut as early as next month. “The next Reserve Bank interest rate cut in May might be as big as 50 basis points,” Chalmers said. “Forecasting is difficult enough in stable times, but even more so in uncertain times.” Despite the grim outlook for markets, Chalmers offered reassurance, especially for Australians nearing retirement whose superannuation balances are being rocked by market volatility. “Everyone with a super fund, everyone with shares, probably every Australian, is watching the global markets with trepidation,” Chalmers said. “But we are better placed, better prepared, and Australians should take comfort in that.” The Treasurer also voiced concerns about the impact of the trade war on Asia, noting that tariffs are hitting countries like Malaysia, Thailand and Vietnam particularly hard, while China’s economy may prove more resilient. ANZ expects Asian currencies to take the brunt of the adjustment as the tariffs unfold. While uncertainties loom large, for Aussie homeowners at least, the prospect of falling interest rates offers some financial relief in an increasingly unpredictable global economy. Images: Youtube

Money & Banking

Financial markets are tanking. Here’s why it’s best not to panic

<div class="theconversation-article-body"> Financial markets around the world have been slammed by the Trump adminstration’s sweeping tariffs on its trading partners, and China’s swift retaliation. Share markets have posted their biggest declines since the COVID pandemic hit in 2020, as fears of US recession surged. Iron ore, copper, oil, gold and the Australian dollar have all tumbled. On Wall Street, <a href="https://www.reuters.com/markets/sp-500-loses-24-trillion-market-value-biggest-one-day-loss-since-2020-2025-04-03/">leading indices</a> have fallen around 10% since the tariffs were announced, while the tech-heavy Nasdaq is down 20% from its recent peak. European and Asian markets have also slumped. In Australia, the key S&P/ASX 200 slid another 4.2% on Monday to levels last seen in December 2023, taking its three-day losses since the announcement to more than 7%. <hr /> <iframe id="AJ2rZ" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/AJ2rZ/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> <h2>Why are markets reacting so badly?</h2> Financial markets reacted so negatively because the tariffs were much larger than expected. They represent the <a href="https://www.abc.net.au/news/2025-04-05/trump-tariffs-upend-80-year-old-world-economic-order/105139464">biggest upheaval</a> in global trade in 80 years. Many traders were hoping the tariffs would be used mainly as a bargaining tool. <a href="https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-digs-in-says-markets-may-have-to-take-medicine-as-stock-futures-plunge-191201959.html">But comments</a> by US President Donald Trump that markets may need to “take medicine” seem to suggest otherwise. The tariffs are expected to weaken economic growth in the US as consumers pare back spending on more expensive imports, while businesses shelve investment plans. Leading US bank JP Morgan has put the <a href="https://www.reuters.com/markets/jpmorgan-lifts-global-recession-odds-60-us-tariffs-stoke-fears-2025-04-04/">chance of a US recession</a> as high as 60%. This comes at a time when the US economy was already looking fragile. The highly regarded GDPNow model developed by the <a href="https://www.atlantafed.org/cqer/research/gdpnow">Atlanta Federal Reserve Bank</a> indicates US March quarter GDP will fall 2.8%, and that was before the tariff announcement. <h2>Worries about global growth</h2> Fears of a recession in the United States and the potential for a global downturn has led to a broad sell-off in commodity prices, including iron ore, copper and oil. Further, the Australian dollar, which is seen as a barometer for risk, has <a href="https://wise.com/au/currency-converter/currencies/aud-australian-dollar">fallen below 60 US cents</a> in local trading – its lowest level since 2009. While the direct impact of tariffs on Australia is expected to be modest (with around 6% of our exports going to US), the indirect impact could be substantial. China, Japan and South Korea together take more than 50% of Australia’s exports, and all have been hit with significantly higher tariffs. Treasurer Jim Chalmers said on Monday that the direct impact on the Australian economy would be “<a href="https://www.abc.net.au/news/2025-04-07/asx-markets-business-news-live-updates/105144276">manageable</a>”. The full effect on Australia will depend on how other countries respond, and whether we can redirect trade to other markets. The rapid decline in the Australian dollar will help offset some of the negative effects associated with a global downturn and the fall in commodity prices. We can also expect some interest-rate relief. Economists are now predicting <a href="https://www.afr.com/markets/debt-markets/traders-expect-up-to-five-rba-rate-cuts-amid-market-turmoil-this-year-20250407-p5lpo0">three further interest rate cuts</a> by the Reserve Bank, starting in May. This brings economists into line with financial market forecasts. <h2>Hang in there, markets will recover</h2> Watching equity markets tumble so dramatically can be unsettling for any investor. However, it is important to note that equity markets have experienced many downturns over the past 125 years due to wars, pandemics, financial crises and recessions. But these market impacts have generally been temporary. <hr /> <iframe id="lsNFF" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/lsNFF/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> History suggests that over the long term, equity prices continue to rise, supported by growing economies and rising incomes. The key thing for investors to remember is to not panic. Now is not the time to decide to switch your superannuation or other investments to cash. This risks missing the next upswing while also crystallising any current losses. For example, despite the steep market sell-off in March 2020 as the first COVID lockdowns came into effect, the Australian share market had completely recovered those losses by June 2021. It is good practice for investors to regularly reassess their risk profile to make sure it is right for their current stage of life. This means reducing the allocation to riskier assets as investors get closer to retirement age, while also maintaining a cash buffer to avoid having to sell assets during more turbulent periods such as now. <h2>Super funds are exposed to global risks</h2> The current sell-off has highlighted a potential issue facing the superannuation industry. So much of our superannuation is now invested in global equity markets, mostly in the US, because Australia’s <a href="https://www.abc.net.au/news/2025-04-02/australia-superannuation-retirement-savings/105098840">superannuation savings pool</a> – at more than A$4 trillion – has outgrown the investment opportunities available in Australia. Another issue facing the superannuation industry is the growth of cyber attacks, with several funds <a href="https://theconversation.com/hackers-have-hit-major-super-funds-a-cyber-expert-explains-how-to-stop-it-happening-again-253835">targeted in a recent attack</a>. Given the massive size of the assets held by some funds, it would seem they need to improve their security to be on par with that of the banking system.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/253929/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> By <a href="https://theconversation.com/profiles/luke-hartigan-1491669">Luke Hartigan</a>, Lecturer in Economics, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/financial-markets-are-tanking-heres-why-its-best-not-to-panic-253929">original article</a>. Image: Shutterstock </div>

Money & Banking

Despite some key milestones since 2000, Australia still has a long way to go on gender equality

<div class="theconversation-article-body"> Australia has a gender problem. Despite social, economic and political reform aimed at improving opportunities for women, gender gaps are increasing and Australia is falling behind other countries. The World Economic Forum currently places Australia 24th among 146 countries, down from 15th in 2006. At the current rate of change, the forum suggests it will take <a href="https://www.weforum.org/publications/global-gender-gap-report-2024/">more than 130 years</a> to achieve gender equality globally. Australia has taken important steps forward in some areas, while progress in other areas remains painfully slow. So how far have we come since 2000, and how much further do we have to go? <h2>The good stuff</h2> There are now more women in <a href="https://www.aigroup.com.au/resourcecentre/research-economics/factsheets/factsheet-gender-and-the-australian-labour-market/#:%7E:text=Female%20labour%20market%20participation%20was,gender%20participation%20gap%20of%208%25.">the labour market</a>, in <a href="https://www.abs.gov.au/statistics/measuring-what-matters/measuring-what-matters-themes-and-indicators/cohesive/representation-parliament">parliament</a>, and leading <a href="https://www.forbes.com.au/lists/people/women-of-the-asx/">large companies</a> than at any other time. Over the past 25 years, there have been major social and political milestones that indicate progress. These include the appointment of Australia’s first female governor-general in 2008 and prime minister in 2010, the introduction of universal paid parental leave in 2011, a high-profile inquiry into workplace sexual harassment in 2020, and new legislation requiring the public reporting of gender pay gaps in 2023. <h2>Timeline of equality milestones</h2> <ul id="timelineList"> <li> <h2>2000</h2> Child Care Benefit introduced, subsidising cost of children for eligible families </li> <li> <h2>2008</h2> First female Governor-General (Dame Quentin Bryce) </li> <li> <h2>2010</h2> First female Prime Minister elected (Julia Gillard) First Aboriginal woman from Australia elected to UN Permanent Forum on Indigenous Issues (Megan Davis) Australia’s first national paid parental leave scheme </li> <li> <h2>2012</h2> Julia Gillard misogyny speech Workplace Gender Equality Act becomes law, Workplace Gender Equality Agency established </li> <li> <h2>2013</h2> Dad or Partner Pay Leave commenced </li> <li> <h2>2016</h2> First Indigenous woman elected to House of Representatives (Linda Burney) </li> <li> <h2>2017</h2> Launch of Women’s Australian Football League #metoo movement spreads globally to draw attention to sexual harassment and assault </li> <li> <h2>2020</h2> Respect@Work National Inquiry into sexual harassment in the Australian workplace chaired by Kate Jenkins released. </li> <li> <h2>2021</h2> Grace Tame named Australian of the Year for her advocacy in sexual violence/harassment campaigns Independent review into Commonwealth parliamentary workplaces launched </li> <li> <h2>2022</h2> National plan to end violence against women is finalised </li> <li> <h2>2023</h2> Closing the Gender Pay Gap Bill passes parliament </li> <li> <h2>2024</h2> Superannuation on government-funded paid parental leave from July 1, 2025 Parental leave to be increased to 26 weeks from July 2026. </li> </ul> There are, however, other areas where progress is agonisingly slow. <h2>Violence and financial insecurity</h2> Women are <a href="https://www.wgea.gov.au/newsroom/wgea-bcec-gender-equity-insights-2024-report">more likely</a> to be in casual and part-time employment than men. This is part of the reason women retire with <a href="https://www.abc.net.au/news/2019-02-21/carer-credits-proposal-aims-to-reduce-superannuation-gap/10826246">about half</a> the superannuation savings of men. This is also linked to financial insecurity later in life. Older women are among the <a href="https://humanrights.gov.au/our-work/age-discrimination/projects/risk-homelessness-older-women">fastest-growing groups</a> of people experiencing homelessness. The situation for First Nations women is even more severe. The <a href="https://www.niaa.gov.au/news-and-media/closing-gap-report-released">most recent</a> Closing the Gap report indicates First Nations women and children are 33 times more likely to be hospitalised due to violence compared with non-Indigenous women. They are also <a href="https://theconversation.com/indigenous-women-are-dying-violent-preventable-deaths-endless-inquiries-wont-help-unless-we-act-244815">seven times more likely</a> to die from family violence. Improving outcomes for Indigenous women and children requires tackling the long-term effects of colonisation, removal from Country, the Stolen Generations, incarceration and intergenerational trauma. This means challenging not only gender inequality but also racism, discrimination and violence. At work, <a href="https://www.wgea.gov.au/publications/employer-gender-pay-gaps-report">the latest data</a> from the Workplace Gender Equality Agency suggests the gender pay gap is narrowing, with 56% of organisations reporting improvements. On average, though, the pay gap is still substantial at 21.8% with women earning only 78 cents for every $1 earned by men. This totals an average yearly shortfall of $28,425. There are also some notable organisations where the gender pay gap has widened. <h2>The burden of unpaid work</h2> Another measure of inequality that has proved stubbornly slow to change is women’s unequal responsibilities for unpaid domestic and care work. Without real change in gender divisions of time spent on unpaid housework and care, our capacity to move towards equality in pay gaps and employment is very limited. Australian women undertake almost 70% of unpaid household labour. The latest Australian Bureau of Statistics <a href="https://www.abs.gov.au/statistics/people/people-and-communities/how-australians-use-their-time/latest-release">time use data</a> show that of those who participate in domestic labour, women spend an average of 4.13 hours per day on unpaid domestic and care work, compared with men’s 2.14 hours. This gap equates to more than a third of a full-time job. If we add up all work (domestic, care and paid), mothers have the longest working week by about 10 hours. This has changed very little over time. These charts, based on analyses of data from the Households, Income and Labour Dynamics in Australia (HILDA) study, show what drives this gap. Women respond to increased demand for care and domestic work by doing more, while men do not. Parenthood significantly increases the time women spend on unpaid care and housework, while also reducing their time in employment. <hr /> <iframe id="115GU" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/115GU/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> Men increase their time in unpaid care after a birth, but the jump is minor compared with women, and there is no change to men’s employment hours. Not surprisingly given these patterns, parenthood is associated with substantial declines in women’s <a href="https://aifs.gov.au/research/research-reports/employment-patterns-and-trends-families-children">employment hours</a>, earnings, <a href="https://www.mdpi.com/2076-328X/14/4/275">career progression</a>, and <a href="https://onlinelibrary.wiley.com/doi/10.1111/jomf.12531">mental health and wellbeing</a>. <h2>The way forward</h2> Current policy priorities primarily incentivise women to remain in employment, while continuing to undertake a disproportionate share of unpaid family work, through moving to part-time employment or making use of other forms of workplace flexibility. This approach focuses on “fixing” women rather than on the <a href="https://www.annualreviews.org/content/journals/10.1146/annurev-psych-032620-030938">structural roots of the problem</a>. There is limited financial or cultural encouragement for men to step out of employment for care work, or reduce their hours, despite the introduction of a two-week Dad and Partner Pay scheme <a href="https://www.wgea.gov.au/parental-leave">in 2013</a> and more recent changes to expand support and access. Fathers who wish to be more actively involved in care and family life face significant financial barriers, with current schemes only covering a basic wage. If one member of the family has to take time out or reduce their hours, it usually makes financial sense for this to be a woman, given the gender earning gap. The benefits of enabling men to share care work will not only be improvements for women, but will also improve family relationships and outcomes for children. <a href="https://theconversation.com/roses-are-red-violets-are-blue-ill-stay-forever-if-you-scrub-out-the-loo-72793">Research shows</a> relationship conflict declines when men do more at home. Time spent with fathers has been found to be especially beneficial for children’s <a href="https://psycnet.apa.org/record/2018-48232-001">cognitive development</a>. Fixing the gender problem is not just about helping women. It’s good for everyone. Gender inequality costs the Australian economy <a href="https://womensagenda.com.au/business/the-us225-billion-a-year-australia-could-benefit-from-with-a-focus-on-women/">$225 billion annually</a>, or 12% of gross domestic product. Globally, the World Bank <a href="https://openknowledge.worldbank.org/server/api/core/bitstreams/fd676a12-7ee4-5c6a-ab2b-83365ed25bf1/content">estimates</a> gender inequality costs US$160.2 trillion. We can’t afford to slip further behind or to take more than a century to fix the problem. <hr /> This piece is part of a series on how Australia has changed since the year 2000. You can read other pieces in the series <a href="https://theconversation.com/au/topics/first-quarter-of-the-century-series-172070">here</a>.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/250250/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> By <a href="https://theconversation.com/profiles/janeen-baxter-611570">Janeen Baxter</a>, Director, ARC Life Course Centre and ARC Kathleen Fitzpatrick Laureate Fellow, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/despite-some-key-milestones-since-2000-australia-still-has-a-long-way-to-go-on-gender-equality-250250">original article</a>. Image: </div>

Legal

‘Behind every claim is a grieving family’. Death benefits inquiry update

<div class="theconversation-article-body"> When Lisa’s husband passed away unexpectedly, she assumed accessing his superannuation <a href="https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/superannuation-death-benefits">death benefit</a> would be straightforward. Instead, she spent months navigating a bureaucratic maze. She repeatedly sent documents, waited weeks for callbacks and struggled to get answers from his fund. Her experience is far from unique. A damning <a href="https://asic.gov.au/regulatory-resources/find-a-document/reports/rep-806-taking-ownership-of-death-benefits-how-trustees-can-deliver-outcomes-australians-deserve/">new report</a> reveals systemic failure by Australia’s <a href="https://www.superannuation.asn.au/resources/super-stats/#:%7E:text=Total%20superannuation%20assets%20were%20%244.2,with%20more%20than%20six%20members.">A$4 trillion</a> superannuation industry in handling members’ death benefits. <h2>A system in disarray</h2> The Australian Security and Investments Commission’s landmark review of ten major super trustees, managing 38% of super assets, exposes an industry that is not serving its members. Grieving families routinely face excessive delays, insensitive treatment and unnecessary hurdles when trying to access death benefits. It found they sometimes waited over a year for payments to which they were legally entitled. The central problem was a fundamental breakdown in claims processing, with five critical failures exacerbating inefficiency and distress. 1. Poor oversight No trustee monitored end-to-end claims handling times, leaving boards unaware of how long families were waiting. While the fastest trustee resolved 48% of claims within 90 days, the slowest managed just 8%. In one case, a widow waited nearly a year despite her husband having a valid binding nomination. ASIC found 78% of delays stemmed from processing inefficiencies entirely within trustees’ control. 2. Misleading and inadequate information Many funds misled on processing times and masked extreme delays. Boards often received reports only on insured claims, despite most death benefits not involving insurance. This meant boards were unable to fix systemic problems. 3. Process over people Risk-averse procedures often overrode common sense. Many funds imposed claim-staking – delaying payments for objections – even for straightforward cases, adding a median 95 day delay. Communication failures further compounded delays, with claimants receiving inconsistent advice and few or no status updates. 4. Outsourcing without accountability Claims handled in-house were processed significantly faster than those managed by external administrators. Only 15% of outsourced claims were resolved within 90 days, compared to 36% of in-house claims. The securities commission is calling for stronger oversight. External administrators significantly slow down responses, so some funds may need to bring claims processing back in-house to ensure efficiency. 5. Lack of transparency Many funds failed to provide clear timelines or explanations for delays and had no accountability mechanisms. The ten funds investigated include the Australian Retirement Trust, Avanteos (Colonial First State), Brighter Super, Commonwealth Superannuation Corporation, HESTA, Hostplus, NM Super (AMP), Nulis (MLC), Rest and UniSuper. Two others, <a href="https://www.abc.net.au/news/2025-03-12/asic-sues-australian-super-death-processing-benefit-claims-delay/105040450">Australian Super and Cbus</a>, are being sued separately by ASIC for either failing to pay out or delaying payments to thousands of eligible beneficiaries. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/658866/original/file-20250401-56-jrqwbg.png?ixlib=rb-4.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/658866/original/file-20250401-56-jrqwbg.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/658866/original/file-20250401-56-jrqwbg.png?ixlib=rb-4.1.0&q=45&auto=format&w=600&h=405&fit=crop&dpr=1 600w, https://images.theconversation.com/files/658866/original/file-20250401-56-jrqwbg.png?ixlib=rb-4.1.0&q=30&auto=format&w=600&h=405&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/658866/original/file-20250401-56-jrqwbg.png?ixlib=rb-4.1.0&q=15&auto=format&w=600&h=405&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/658866/original/file-20250401-56-jrqwbg.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&h=509&fit=crop&dpr=1 754w, https://images.theconversation.com/files/658866/original/file-20250401-56-jrqwbg.png?ixlib=rb-4.1.0&q=30&auto=format&w=754&h=509&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/658866/original/file-20250401-56-jrqwbg.png?ixlib=rb-4.1.0&q=15&auto=format&w=754&h=509&fit=crop&dpr=3 2262w" alt="A list of key findings from the ASIC Taking ownership of death benefits report" /></a><figcaption><a class="source" href="https://asic.gov.au/regulatory-resources/find-a-document/reports/rep-806-taking-ownership-of-death-benefits-how-trustees-can-deliver-outcomes-australians-deserve/">Taking ownership of death benefits: How trustees can deliver outcomes Australians deserve, ASIC, March 2025</a>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></figcaption></figure> <h2>Will ASIC’s fixes work?</h2> ASIC has made 34 recommendations to improve death benefit processing. This will require real change, not box ticking. Changes should include setting performance objectives and empowering frontline staff to cut unnecessary steps. There should be consequences for failure. Unlike the <a href="https://www.gov.uk/browse/benefits/bereavement">United Kingdom</a>, which fines pension providers for missing statutory deadlines, ASIC’s recommendations lack penalties. Without consequences, some funds may continue prioritising administrative convenience over members receiving their entitlements. <h2>What needs to happen now?</h2> ASIC’s report is a wake-up call, but real reform requires strong action. Super funds must be held to clear, binding processing timelines, with meaningful penalties for non-compliance. Standardising requirements across the industry would eliminate unnecessary hurdles, ensuring all beneficiaries are treated fairly. Beyond regulation, funds must improve communication and accountability. Bereaved families deserve clear, plain language guidance on what to expect, not bureaucratic roadblocks or sudden document requests. Technological upgrades should focus on reducing delays, not just internal efficiencies. And to better support families, an independent claims advocate could help navigate the process, ensuring no one is left to struggle alone. <h2>Has ASIC gone far enough?</h2> While ASIC’s review is a step in the right direction, it does not fundamentally overhaul flawed claims-handling practices. The recommendations lack enforceability, relying on voluntary compliance. Also, the role of insurers within super remains largely unaddressed, despite death benefits being tied to life insurance policies. This often causes further complications and delays. Ensuring insurers adopt and apply ASIC’s recommendations will be critical for meaningful change. Most importantly, super funds must remember that behind every claim is a grieving family. No one should have to fight for what they are owed during one of the most stressful times in their life.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/253419/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> By <a href="https://theconversation.com/profiles/natalie-peng-1369555">Natalie Peng</a>, Lecturer in Accounting, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/behind-every-claim-is-a-grieving-family-death-benefits-inquiry-demands-change-but-lacks-penalties-253419">original article</a>. Image: Shutterstock </div>

Legal

Woman cops $806 fine for camping in her own driveway

Here's one that will have legal scholars scratching their heads and homeowners clutching their deeds: Gold Coast resident Belinda Hunt has been fined $806 for the heinous crime of catching some shut-eye in her own driveway. Yep, that's right. Sleeping. In a van. On her own land. Belinda, a forward-thinking Aussie simply trying to save some cash while waiting for her new home to be built, found herself on the wrong side of the law when police and a council ranger came knocking on her van door at 1:30am. Their concern? That she was a homeless person illegally camping on public property. Never mind the minor detail that her driveway is, in fact, private property. "I pointed out the address on my driver's licence is the same as my property and also told them to check my registration details... they could clearly see that I owned the property," Belinda recounted to her (for now) 8,904 followers, presumably while resisting the urge to hand them a map and a magnifying glass. The authorities, unfazed by logic, proceeded to issue her a fine for "unlawful camping in a public place", despite the glaringly obvious fact that she was neither in a public place nor engaging in anything particularly unlawful. Unless, of course, getting a good night’s rest is now considered an offence in Queensland. Adding insult to injury, Belinda was reportedly advised to "present to the Department of Housing"– a stunning suggestion, considering she was already standing on the land where her future house would soon exist. "They spoke to me as if I was a criminal and doing something wrong. He [the police officer] said that it is illegal to reside in a vehicle on the Gold Coast," she said, undoubtedly wondering if the same law applied to cars parked at McDonald's drive-throughs at 2am. Belinda, understandably rattled by the experience, plans to fight the fine. But in the meantime, her case raises some troubling questions: Is it now illegal to camp in one’s own driveway? Should homeowners fear being charged with "loitering" in their backyards? And, most importantly, does the Gold Coast Council intend to start issuing fines for illegal napping? Authorities claim such regulations are necessary to kerb an increase in illegal camping, particularly in tourist-heavy areas. But as Belinda’s case proves, there’s a fine line between cracking down on rogue campers and charging hardworking Aussies for existing on their own land. For now, residents of the Gold Coast are advised to sleep with one eye open – preferably inside a house, lest they fall victim to the long arm of the camping law. Images: TikTok

Legal

Welcome to the "please pull me over" club

If you're like me – and most Aussie drivers – I do my best to avoid being pulled over. I check my mirrors, stick to the speed limit (mostly), and keep my rego up to date. But for some "people" out there, the road rules are more of a vague suggestion than a requirement. Enter the sovereign citizen number plate fiasco – because what better way to invite the attention of the cops than slapping an illegal plate on your car? In Adelaide this week, one particularly bold Toyota driver decided to test the limits of both the law and common sense by cruising around with a number plate that simply read "PRIVATE". If that wasn’t enough to get the attention of South Australia Police, the plate also featured the cryptic phrase "Special Trust Security" below that in tiny letter. Because nothing says "totally legitimate vehicle" like an official-looking but entirely made-up title. A sharp-eyed local spotted this masterpiece of vehicular rebellion and did what any responsible citizen would do: posted it online for all of Australia to mock. "What the F are these? Surely not legal?" they asked, unknowingly triggering a flood of gleeful internet ridicule. "They're plates which will guarantee SAPOL will pull them over at their first opportunity," one commenter noted. Others speculated that the driver might be part of the ever-growing "sovereign citizen" movement – a loose collection of legal theorists whose main belief is that laws are just an optional lifestyle choice. SAPOL wasted no time <a href="https://au.news.yahoo.com/drivers-bizarre-number-plate-prompts-933-fine-warning-not-legal-010747837.html" target="_blank" rel="noopener">confirming that these plates were, in fact, highly illegal</a>. Not just "a slap on the wrist" illegal – more like "here's a $933 fine before you even get to say 'but my rights!'" illegal. "These plates appear fake and are not plates that have been issued by SA Department for Infrastructure and Transport," a police spokesperson told Yahoo News. Translation: They might as well have written their rego number on a napkin. The online reaction was ruthless. "It’s the best way to show off your dreadful understanding of the law to an already disinterested police officer," one person quipped. Another called it "a sovereign citizen in the wild", while a third dubbed them "please pull me over plates". The internet, as always, did not disappoint. But this isn't a one-off. In 2023, a photo surfaced of a Holden in Queensland sporting an even more outlandish plate. This one featured the text "Private Property Non-Commercial, Living Woman, Terra Australia Incognito", and even claimed that removing the plate would incur a $50,000 fine. Extra points for creativity, but again, zero points for legal accuracy. Even more baffling, the plate included a real registration number – in absurdly tiny print. Presumably for that tiny sliver of plausible deniability. While most of us are content to pay our rego and drive without incident, these rogue motorists seem determined to treat traffic laws like a choose-your-own-adventure book. Unfortunately for them, SAPOL isn't in the habit of playing along. So next time you see someone cruising around with an official-looking but entirely nonsensical number plate, just remember – they’re not just driving, they’re providing free entertainment for the rest of us. Images: Reddit

Legal

Drivers warned of new fines ahead of major change to speeding cameras

Transport officials in New South Wales are set to expand the use of average speed cameras beyond heavy vehicles to include all motorists. This initiative, which will take effect on May 1, is aimed at curbing the rising number of road fatalities across the state. Currently, average speed cameras, also known as point-to-point cameras, are used to only monitor heavy vehicles. However, cameras along two major highways – a 15km stretch of the Pacific Highway between Kew and Lake Innes, and the Hume Highway between Coolac and Gundagai – will soon track the speeds of all vehicles, according to Transport for NSW. These locations have been identified as high-risk crash zones. The implementation follows a steady rise in road fatalities across Australia in recent years, prompting authorities to take stronger measures against speeding. Unlike traditional speed cameras that capture speed at a single point, average speed cameras measure a vehicle's speed over a set distance. By recording the time a vehicle passes through two fixed points, authorities can determine whether the vehicle exceeded the legal speed limit along that stretch. This method discourages drivers from merely slowing down for fixed cameras before speeding up again. NSW imposes significant penalties for speeding, with fines varying based on the severity of the offence. Light vehicle drivers caught exceeding the speed limit by more than 45 km/h face a maximum fine of $3,300, while heavy vehicle drivers can be fined up to $5,500. Additionally, offenders risk a minimum six-month licence disqualification. To ease the transition, the new enforcement system will undergo a two-month trial period. From May 1 to June 30, motorists caught exceeding speed limits in the designated areas will receive warning letters rather than fines. However, starting July 1, full penalties, including fines and demerit points, will apply. Dr Ingrid Johnston, CEO of the Australasian College of Road Safety (ACRS) spoke recently about the need for more urgent measures to minimise road trauma. She has advocated for broader road safety initiatives, including speed cameras and reduced speed limits in areas with high pedestrian and cyclist activity. NSW Minister for Roads, John Graham, also reinforced the importance of the initiative, citing global studies that show average speed cameras significantly reduce road injuries and fatalities. "We know that speed remains our biggest killer on the road, contributing to 41 per cent of all fatalities over the past decade," he stated. The government aims to ensure motorists are well-informed about the changes. All affected locations will feature warning signs, and a community awareness campaign will support the transition. Image: Shutterstock

Money & Banking

Amid claims of abuse, neglect and poor standards, what is going wrong with childcare in Australia?

<div class="theconversation-article-body"> On Monday, an ABC’s Four Corners <a href="https://www.abc.net.au/news/2025-03-17/betrayal-of-trust/105063150">investigation</a> reported shocking cases of abuse and neglect in Australian childcare centres. This included examples of children being sexually abused, restrained for hours in high chairs, and fed nutritionally substandard meals such as pasta with ketchup. While acknowledging there are high-quality services operating in the community, the program also showed how centre-based childcare is big business, dominated by for-profit providers, who may not be meeting regulatory standards. What is going wrong with childcare in Australia? <h2>Differing levels of quality</h2> Data from Australia’s childcare regulator <a href="https://www.acecqa.gov.au/sites/default/files/2025-02/NQF%20Snapshot%20Q4%202024%20FINAL.pdf">consistently shows</a> for-profit childcare services are, on average, rated as <a href="https://www.acecqa.gov.au/sites/default/files/2021-02/NQFSnapshot_Q4_2020.pdf">lower quality</a> than not-for-profit services. Of those rated by regulators, 11% of for-profit long daycare centres are not meeting national minimum quality standards (they are just “working towards”). This compares with 7% of not-for-profit centres not meeting minimum standards. There are 13% of for-profit centres exceeding the standards, compared to 28% of not-for-profits. Inquiries suggest this divergence is due to staffing levels, qualifications and pay. In 2023, the Australian Competition and Consumer Commission (ACCC) <a href="https://www.accc.gov.au/inquiries-and-consultations/childcare-inquiry-2023/december-2023-final-report">found</a> large for-profit providers spend significantly less on staffing than not-for-profit providers. Large for-profit providers <a href="https://www.accc.gov.au/inquiries-and-consultations/childcare-inquiry-2023/september-2023-interim-report">have a higher proportion of part-time and casual staff</a> than not-for-profits. They also employ less experienced early childhood teachers. On top of this, they are more likely to use award rates of pay, which are typically lower than enterprise agreement rates. Lower pay and less job security is related to higher turnover of staff, which makes it <a href="https://theconversation.com/covid-chaos-has-shed-light-on-many-issues-in-the-australian-childcare-sector-here-are-4-of-them-174404">difficult for educators to establish and maintain</a> the trusting relationships with children and families that underpin high quality. Despite this, the federal government continues to support for-profit services through <a href="https://www.education.gov.au/early-childhood/providers/child-care-subsidy">childcare subsidies</a>. These subsidies are designed to help families with the costs of childcare. But they do not stop some providers increasing their fees. The ACCC <a href="https://www.accc.gov.au/media-release/changes-proposed-to-make-childcare-affordable-and-accessible-for-all-families">found a consistent pattern</a> of increased government subsidies leading to higher out-of-pocket expenses for families, due to subsequent fee increases. <h2>It hasn’t always been like this</h2> Childcare subsidies haven’t always worked in this way. “Operational subsidies” were introduced in 1972 through the historic <a href="https://classic.austlii.edu.au/au/legis/cth/consol_act/cca197275/">Child Care Act</a>, which set the precedent for Australian governments to fund childcare. This aimed to support women’s workforce participation through an expanded, high-quality childcare sector. Subsidies at the time were only available to not-for-profit services and required the employment of qualified staff, including teachers. In these ways, Commonwealth funding positioned childcare as a public good, like school education. Then, in 1991, federal government subsidies were extended to for-profit providers. This prompted dramatic changes in the childcare landscape, leading to a dominance of for-profit centres. Today, more than 70% of all long day-care centres are <a href="https://www.pc.gov.au/inquiries/completed/childhood/report/childhood-volume1-report.pdf">operated by private providers</a>. Between <a href="https://www.pc.gov.au/inquiries/completed/childhood/report/childhood-volume2-supporting.pdf">2013 and 2023</a>, the number of for-profit long daycare services jumped by 60%, while not-for-profits only grew by 4%. <h2>Quality concerns</h2> There are <a href="https://www.startingblocks.gov.au/large-providers">25 large long daycare providers</a> in Australia and of these, 21 are run for profit. Large for-profit providers impact sector quality in several ways. Many have disproportionately high numbers of staffing waivers, granted by regulators, permitting them to operate centres without the required number of qualified staff. According to unpublished research by Gabrielle Meagher, as of October 2024, 11 large for-profit providers held waivers for a quarter or more of their services and five held waivers for more than a third. This compares to 15% of the sector overall. Large for-profit providers also serve investors as well as families. So there are extra <a href="https://academic.oup.com/qje/article-abstract/112/4/1127/1911721">incentives to cut costs</a> and maximise profits. The dominance of for-profit providers also makes them <a href="https://www.cambridge.org/core/journals/world-politics/article/abs/institutional-sources-of-business-power/E9D9D945CB59843C4DF8CE4835350602">powerful players</a> in policy-making circles, as governments depend on them to provide an essential service. <h2>Why isn’t the system working?</h2> Given Australia has a <a href="https://www.acecqa.gov.au/national-quality-framework">regulatory and quality assurance system</a> for childcare services, why do we have these quality issues? As the Productivity Commission <a href="https://www.pc.gov.au/inquiries/completed/childhood/report/childhood-volume2-supporting.pdf">found</a>, regulators are under-resourced, and inspections are infrequent. Services that repeatedly fail to meet the minimum standards are still allowed to operate, sometimes for more than a decade. Services are notified about upcoming inspections, potentially giving them time to give a false impression of their quality and safety standards. As Four Corners highlighted, poor-quality services, with bad pay and working conditions are driving good educators away from the sector. <h2>What next?</h2> The Albanese government recently passed legislation to “guarantee” eligible families <a href="https://www.education.gov.au/newsroom/articles/3day-guarantee-legislation-passed#:%7E:text=The%203-day%20guarantee%20will,each%20week%20for%20each%20child">three days of subsidised childcare</a> per week from January 2026. But families need more than access. They also require a guarantee this childcare will be high-quality and keep children safe. Even without the extra spending on the three-day guarantee, government spending on childcare subsidies <a href="https://www.accc.gov.au/system/files/ACCC%20Childcare%20Inquiry-final%20report%20December%202023.pdf?ref=0&download=y">is due to reach nearly A$15 billion</a> by 2026–27. Thus there is also a corresponding duty to taxpayers to ensure these funds are going to high-quality providers. In the wake of the Four Corners report, the <a href="https://www.abc.net.au/listen/programs/worldtoday/childcare-wrap/105066270">Greens are calling</a> for a royal commission into childcare. But we do not need this level of inquiry to tell us the current system needs fundamental change. Stronger regulatory powers, while important, will not be enough on their own. High-quality services need well-educated and well-supported staff. They also need governance and leadership that value educators’ expertise and enable consistently high standards.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/252493/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> By <a href="https://theconversation.com/profiles/gabrielle-meagher-594155">Gabrielle Meagher</a>, Professor Emerita, School of Society, Communication and Culture, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a> and <a href="https://theconversation.com/profiles/marianne-fenech-228936">Marianne Fenech</a>, Professor, Early Childhood Governance, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/amid-claims-of-abuse-neglect-and-poor-standards-what-is-going-wrong-with-childcare-in-australia-252493">original article</a>. Image: ABC </div>

News

Shop

Catalogues

Contests

Entertainment

Travel

Health

Lifestyle

Finance

Property

Games

Information

Keep up to date

Search

What does Trump’s looming ‘revenge tax’ mean for Australia?

Millions of Aussies set for a payrise

Meet the young princess and future queen who's moving to Australia

Bubsie rides again: A century-old journey retraced across Australia

RBA cuts interest rate - so what happens now?

Millions of Aussies set to receive cost-of-living pay bump

It’s almost winter. Why is Australia still so hot?

Older Australians are also hurting from the housing crisis. Where are the election policies to help them?

Major change to drivers licences across Australia

Australia has the highest gambling losses in the world. Is it time for mandatory limits?

Australia's Next Top Model star passes away at just 27

Virgin Australia issuing refunds to 61,000 travellers

Stunning prediction for Aussie homeowners in wake of Trump's trade war

Financial markets are tanking. Here’s why it’s best not to panic

Despite some key milestones since 2000, Australia still has a long way to go on gender equality

‘Behind every claim is a grieving family’. Death benefits inquiry update

Woman cops $806 fine for camping in her own driveway

Welcome to the "please pull me over" club

Drivers warned of new fines ahead of major change to speeding cameras

Amid claims of abuse, neglect and poor standards, what is going wrong with childcare in Australia?

Our Partners