Tip for this month!
Make sure your rate has a 5 in the front of it
and preferably a mid-5 ✅)
Wow, what a month!
This month's winners
Conversion month: from two (or three) down to one
Two recently divorced women refinanced their home loans so they could transfer their homes from the joint names with their ex-husbands to their own names. And, in a separate settlement, we helped two mates do the same thing, but without the divorce.
Plus, a lovely couple, two C-level executives, bought their dream home after months of searching (and used a buyer advocate to assist them).
And, a dentist and his wife, with many investment properties, companies and trusts, could not refinance with his main bank. So we found him a lender who saved him lots of money.
Happy days ahead for all!
🙋♂️ Are you a winner from what has transpired over the last month?
Those who are probably a little bit happier by the end of the month are:
Share investors
Following a broad recovery in share prices as the market has (temporarily?) Bounced back!
Borrowers
Who have received a second rate cut of 0.25%, with more on the way, primarily due to even better inflation fundamentals than were envisaged.
Meanwhile, being a business owner has become a tad more difficult with the chaotic world of traded goods still in an ongoing state of turmoil with the US tariff yo-yo still in play. And, even if only indirectly, we will all be impacted over the next few years by what is transpiring with the USA and its tariff negotiation policy - often in ways we did not envisage.
I have written a piece on this below. I hope it is useful to understand context and possible outcomes.
This is a big month for news, ranging from interest rates and property prices to government housing policies and vehicle financing options. Plus my usual eclectic mix!
- Best interest rates
- Tariff-caused trade chaos is not good for anyone
- Buying at auction – Trish’s tips (she’s an expert)
- Fiona’s top 9 reasons why you should use a vendor advocate
- Tax changes to give late-paying small business owners indigestion
- Best practices in debt recovery
- Beware the impatient boss
- Recent history suggests the rate cut will drive refinancing surge
- The stats on mortgage repayments
- Australians’ investments in Housing Vs Shares – an Australian issue
- Renewables – the acceleration continues
- The Election Triangle is morphing up
- Home values rising
- ALP housing policies recap
- Pros & cons of novated leases
- Trivia? The metre defined
Read more below.
Best Interest Rates
The interest rates below are current as at 1 June 2025.
A quick summary:
- The most recent RBA Cash Rate change was the 0.25% decrease in February 2025 and a further 0.25% in May.
- The RBA has flagged that inflation is likely to stay in the range of 2% to 3%.
- If this continues, further rate reductions will be likely to follow
- The lowest variable rates reflect the RBA cash rate reduction of 0.25%.
- The lowest fixed rates are more in line with the previous month but with only 2 year fixed rates being the lowest (last month it was 2 year and 3 year fixed rate loans).
Regarding the information below, please note:
- The rates below exclude: > clean energy rates (unless quoted) > first home buyer rates > packages > construction loan rates > offset account feature.
- The best rates are based upon a 30 year loan with a Loan to Value Ratio (LVR) of less than 60%. This is typically the lowest LVR used by lenders when sharpening their rates.
- Interest Only rates are based upon an Interest Only period of 1 year.
- Fees and charges are excluded from consideration. These can be considerable for some lenders so we always recommend a full analysis of all the costs you will be likely to incur. We provide this service for you when you book a time for an initial discovery call chat.
- Changes reflect changes from the prior month.
Owner Occupiers
Principal and Interest:
- Fixed Rates: from 5.10% pa – 2 and 3 year terms; down by 0.09%
- Variable Rates: from 5.49% pa; down by 0.25%
- Clean energy loans:
- Fixed Rates from 4.94% pa; no change
- Variable Rates from 5.18% pa; down by 0.25%
Interest Only:
- Fixed Rates: from 5.74% pa – 2 and 3 year terms; down by 0.39%
- Variable Rates: from 5.69% pa; down by 0.35% from last month.
Investors
Principal and Interest:
- Fixed Rates: from 5.34% pa – 2 and 3 year terms; down by 0.40%
- Variable Rates: from 5.54% pa; down by 0.25%
- Clean energy loans:
- Fixed Rate loans from 4.94% pa; no change
- Variable Rates from 5.04% pa; down by 0.25%
Interest Only:
- Fixed Rates: from 5.34% pa – 2 year term; down by 0.30%
- Variable Rates: from 5.84% pa; down by 0.24%
Tariff-caused trade chaos is not good for anyone
A bit of history
To understand the seismic shock of tariff gyrations, here is a bit of history of tariffs in Australia: way back in the 1970s, the Whitlam Government dropped tariffs by 25% unilaterally. This was a huge tariff adjustment at the time. But, it was one-off and it was part of a directional push to move Australia towards allocating its resources to those areas of business where it could compete with its trading partners on a level playing field. By 1996, Australia’s tariffs were down to around 5% across the board. You could argue whether this was good policy or not, but it was at least consistent and clear, and businesses could respond with a level of certainty, knowing what they had to do if they were to compete under these lower tariffs.
It's now 2025
Now let’s move forward to 2025, where the USA has adjusted its tariffs first up AND then down AND then up again – and anywhere from 10% to over 100% – and often within days of any previous adjustment.
Whilst the initial adjustments were based upon correcting an imbalance in the USA’s trade of goods (using faulty maths logic, but hey, that’s nothing new in politics), the subsequent gyrations have all been about political negotiation.
Using tariffs as a daily tool of negotiation is the part I struggle with if I am looking at businesses and their employees (and investors).
Whilst the original proposed increases in tariffs by the USA were mind-boggling, the subsequent massive fluctuations – both up and down, would have created a ‘deer in the headlights’ moment for those who had to do or interpret a spreadsheet on sales, costs, profitability and cashflow. And indirectly, this includes share investors who won’t really know what the impact will be until it hits the bottom line of their investments
Whilst tariffs and similar tools of international trade have been used as a tool of political policy, they have never been used so chaotically; going up and down by large amounts depending upon the daily state of Trump’s negotiations with the USA’s trading partners (and, seemingly, whether he likes you).
And, it is worthwhile noting that in all this hoo haa, Trump has conveniently focused on adjusting tariffs on goods and not services, probably because the USA has a massive trade surplus on services – $288 Billion in 2023 (think Google, Amazon, Facebook etc) compared to its larger deficit on goods – $1,061 Billion; which, not surprisingly, come from either resource-rich countries like Australia or countries with lower wage rates than the USA.
Aussie winners are grinners
Despite all these gyrations, there have been some Aussie winners (short term?) in all of this trade chaos. Australian beef producers come to mind. They now have a new market in China – not a bad market to suddenly find yourself at the forefront of, but disconcerting nevertheless, because you need to figure out if it is temporary or not. And of course, Australian consumers may well be the ones to suffer – time will tell if Aussie beef prices go the same way as Aussie gas prices when a large chunk of our gas was more profitable to sell offshore.
The impact of this uncertainty will play out over the next year or two, and it won’t really become apparent until companies’ results are in – probably during 2026. So it might look calm now, but look out for those winners and losers.
Trish's tips for buying at auction
Trish Moore is a Buyers Advocate who operates Hidden Gems Property Scouts. As a property investor and home owner, Trish knows a lot of the tricks used to get you to pay an inflated price for your next home.
Trish also heads up BIR Finance’s Property Concierge; a free service we offer our clients which is particularly useful when they are looking to buy. Whilst Trish is based in Melbourne, she operates with a network of similarly-minded buyer advocates Australia-wide.
1. Dummy bids and auction hype can push prices sky-high
- Your best defence is solid homework and a firm walk-away price.
2. Know the True Value
- Check recent comparable sales within two kilometres and the past three months.
- Order an independent valuation or buyer advocate report to cross-check the agent’s price guide.
3. Set Your Ceiling – and Stick to It
- Decide your absolute maximum bid before auction day.
- Write the number down and keep it in your pocket; emotion fades when the figure is in black and white.
4. Do Your Due Diligence Early
- Review the contract and Section 32 with your solicitor.
- Arrange building and pest inspections so there are no costly surprises.
- Secure finance pre-approval; last-minute loan issues can force rushed decisions.
5. Know the Rules
- In Victoria you don’t register to bid, so you won’t know everyone in the crowd.
- Auctioneers can make vendor bids, but they must announce them clearly—stay calm when you hear one.
- Dummy bidding by others is illegal; if you suspect it, alert Consumer Affairs Victoria post-auction.
6. Auction-Day Tactics
- Arrive early, watch body language, and bid with confidence—hesitation invites competition.
- Start with a strong opening bid to set the pace, then use smaller increments as you near your limit.
- If the property is passed in, being the highest bidder gives first negotiation rights—have a plan for that discussion.
7. Consider Professional Backup
- A buyers advocate removes emotion, spots dummy tactics, and negotiates hard once the hammer falls. Even if you go it alone, a quick chat with a pro can sharpen your strategy.
- Better still, a good buyer advocate can identify properties which are not yet on the market.
- Real estate agents love buyer advocates (yes, really) because they represent a genuine buyer and they are looking to get a deal done. Price is often less relevant for a real estate agent than a quick sale at a fair price.
Bottom line: research, a rock-solid ceiling price, and steady nerves beat dummy bids every time. Do your prep, trust your limit, and you won’t pay a dollar more than the home is worth.
We offer you all a free one-on-one with Trish so you can pick her brains. And of course, she is always available to use if you need someone whose sole purpose is to get you the right property at the right price.
If you would like a chat with Trish, just email me and I will put you in touch.
Fiona's top 9 reasons why you should use a vendor advocate
The growth of buyer and vendor advocates is something many who have owned a home but not recently purchased or sold, will be blissfully unaware of.
The reason they have both grown in popularity is that home owners are starting to realise that it is pretty hard to be an instant expert when you are only buying and selling once every 7 to 10 years.
Fiona Martin is the owner of Golden Alliance. She has recently shared with me some issues vendors should consider when thinking about selling their home to get the best ‘net price’ (it’s like the other side of what Trish Moore does as a Buyer Advocate!)
The beauty of a good Vendor Advocate is they cost you nothing (always nice!), but even more importantly, their reputation needs to remain untarnished long after the sale is completed – because their clients (aka you) are hopefully, their repeat clients. In comparison, your chosen real estate agent tends to focus on the home owners in their own suburb patch rather than follow you as you move around Australia.
So what can a Vendor Advocate offer you?
1. Assist you pick the right agent for your property
Vendors choose their real estate agents in weird and wonderful ways (trust me, I have heard them all!). A good vendor advocate has a level of objectivity and detachment. They can filter the field, interview the candidates and match you with the agent most likely to nail your price and timeline - aka they can cut through the agent's bulls**t!
2. Keeps the agent honest
Agents are after fast sales so they can move on to the next listing. That last $20,000 you are hanging out for is really not going to make a difference to their commission.
A vendor advocate can hold them to account during the entire process without the emotional involvement you as the vendor would bring to these discussions.
3. Two brains
A lot of properties are not bespoke. Well, they aren't if you are listing 10 in the one suburb this month and you are just trying to get it all done.
But, every property is unique and finding those unique aspects is critical to finding the buyer who will pay more. A good vendor advocate has the time to listen to you, the agent and do their own research to make sure your property is seen as unique so you get that best result.
4. Spots costly traps
Agents make money from their commission, and, you may not realise, from marketing rebates etc - things you cannot spot.
A vendor advocate will know what this padding looks like and can get the agent to give you back the money which is rightfully yours.
5. Delivers full transparency
Agents love to make it sound their OFIs (open for inspections) have been very successful (or if they are trying to negotiate down your reserve, perhaps the opposite).
A vendor advocate will be looking to unpack what the agent has communicated so you get honest, unfiltered feedback on the level of interest - so you can make informed calls.
6. Negotiates harder
Because the vendor advocate wants you as their client in the future, they have a vested interest in finding you 'that little bit extra' when perhaps the agent has emotionally moved on to their next listing.
7. Cuts the stress
Selling a property can be stressful. Having a concierge service to handle the photographers, videographers, open-home schedules and paperwork, allows you to know that someone has your back.
8. Speaks your language
Like everyone in business, agents are fond of their own jargon - and a little bit of mystery works wonders with the uninitiated!
Your vendor advocate will convert their jargon quickly and seamlessly into English you can understand and assess so you understand every decision point.
9. The bottom line - maximising your net result
By boosting the sale price, trimming unnecessary costs and preventing expensive mistakes, and only taking a cut from the agent's commission (not your pocket), a vendor advocate can leave more money in your pocket at settlement.
Tax changes to give late-paying small business owners indigestion
From 1 July, the Australian Taxation Office will scrap the tax-deductible status of its General Interest Charge (GIC), the penalty applied when businesses pay tax debts over time.
Many SMEs have used unpaid tax as a makeshift overdraft, slowly clearing the debt while writing off the interest. Once the deduction disappears, that strategy turns costly, potentially pushing profits—and tax bills—higher just as the ATO ramps up debt-collection and credit-file defaults.
Strategies to consider
- Talk to your accountant. Map out how the lost deduction will affect taxable income and quarterly BAS. (Need an accountant or good bookkeeper? I know a few good ones who are pro-active).
- Lodge overdue returns. The ATO is targeting late lodgements; up-to-date books give you more refinancing options.
- Compare funding tools. A non-bank business loan or cash-flow facility may wipe out the tax debt and free you from penalty interest.
- Review pricing and expenses. Higher tax outgoings may need to be passed on or offset elsewhere.
Need to have a chat?
Schedule a loan check-up. A refinance of business or property-backed loans could release equity or cut repayments, easing the hit.
Best practices in debt recovery
Bad debts drain cash flow and chew up head-space.
Baris Kelecioglu, DebtPol Recoveries Australia, sent me the following strategies on debt recovery for businesses. I thought you might find it useful:
1. Send industry-specific demand letters
Generic templates miss key points. Use letters tailored to your sector so you can cite the exact legislation that applies and show a clear escalation (friendly reminder → formal demand → intent to lodge a default). And, like all things in writing, make sure they are reviewed by your legal advisor to keep them watertight (Baris works closely with Nathanael Kitingan from the legal firm, Macpherson Kelley. Nathanael does a free credit application review for Baris’ clients)
2. Tighten your credit application
Have a lawyer vet the form.
3. Build three “non-negotiables” into the terms
- Director’s (or personal) guarantee
- Late-payment fees that actually bite
- PPSR registration over any goods supplied on credit
These clauses give you priority if the client folds and signal you’re serious about getting paid.
4. Replace trade references with real credit checks
Trade refs are easy to game. Order commercial credit reports instead. Ask a professional firm like DebtPol to make sure you are doing the right checks for your clients.
5. Automate reminders and follow-up
Link your invoicing software to SMS or email reminders at 7, 14 and 21 days. Early, consistent nudges prevent “I never saw the invoice” excuses.
6. Offer small carrots
A 2% discount for payment within seven days can speed up cash flow far more than it costs.
7. And lastly, keep a funding back-up
If overdue invoices still spike, talk to me about a short-term cash-flow loan or invoice-finance facility so wages, BAS and supplier bills stay current.
Need a second pair of eyes on your credit terms or finance options?
Let’s chat before those slow payers hit your bottom line.
Beware the Impatient Boss
Why Patience Still Wins
Based upon research studies, Inc. has prepared a report on bad leaders.
“Impatient micromanagers” topped the list of worst-ever boss traits — especially among entry-level workers.
The Take-Away
Patience isn’t soft; it’s strategic. Leaders who keep their cool under pressure spark better ideas, tighter teamwork and stronger bottom-line results. Whether you’re hiring, promoting or reflecting on your own style, look for patience—it could be the trait that shields your business from costly mistakes and staff churn.
The Hidden Cost of Impatience
- Creativity and collaboration dropped by 16 % and productivity slipped by 13% when staff rate their leader among the least patient.
- People managed by patient leaders report lower stress and depression, greater gratitude and stronger connections with their team and the wider community.
Spot the Red Flags
- Constant micromanaging of tasks already delegated.
- Snapping at delays or honest mistakes.
- Rushing decisions without hearing all viewpoints.
- Setting impossible deadlines then blaming the team for missing them.
If any of these sound familiar—whether in your own style or someone else’s—it’s time for a reset.
Why Patience Still Wins
1. Model it from the top
Senior managers set the tone. Pause before responding, ask clarifying questions and give considered feedback.
2. Set realistic timeframes
Urgency has its place, but constant “ASAP” requests create chaos. Agree on deadlines that stretch the team without snapping them.
3. Celebrate process, not just results
Recognise thorough research, creative thinking and collaboration, not only the speed of delivery.
4. Coach, don’t command
Swap quick orders for guiding questions: “What have you tried?” “How could we tackle this together?”
5. Invest in leadership training
Workshops on emotional regulation and mindful communication pay back through higher retention and better performance.
Recent history suggests rate cut will drive refinancing surge
The Reserve Bank of Australia’s decision to trim the cash rate from 4.10% to 3.85% has sparked a wave of rate cuts on variable-rate home loans. Although each lender is moving at its own pace and discounting by slightly different margins, the overall direction is clear: repayments are heading lower for most variable mortgage holders.
What this means for borrowers:
- Banks, large and small, are adjusting their variable interest rates, with most changes already in effect or due shortly. As an aside, it would appear the rate cuts are being implemented far more quickly than with the February rate reduction.
Example:
A borrower owing $500,000 on a 30-year term stands to save roughly $80 per month—about $960 a year—from a 0.25-percentage-point reduction.
These figures are indicative only; your actual savings will hinge on factors such as loan size, remaining term and your updated interest rate.
The RBA’s latest rate cut is good news, but you might squeeze even more value out of your mortgage.
1. Refinance for bigger savings
Some lenders are slashing rates harder than others. Shopping around or refinancing could shave hundreds extra off your yearly repayments—even if your bank has already reduced your rate.
2. Borrowing power on the rise
Lower interest means a larger loan capacity. You might now qualify for funds to buy an investment property, tackle a renovation, or consolidate higher-cost debts.
3. Make the most of extra cash
Extra disposable income can be spent, invested, or funnelled straight back into your loan. Paying in advance cuts interest and shortens your term.
Bottom line: a quick home-loan health check could uncover serious savings. Talk to a broker to see whether switching lenders—or simply renegotiating—can lock in a sharper rate and free up cash for your next big goal.
And remember my golden rule….
Make sure you have your offset facilities structured so that ALL your cash is sitting in an offset account from the day you receive it.
The stats on mortgage repayments
A couple of useful graphs from Macrobusiness to give you context around where we sit today with mortgage repayments…
According to Roy Morgan, mortgage stress peaked in June 2024 when 30.3% of owner-occupied mortgage holders were deemed to be in stress.
Michele Levine, CEO Roy Morgan, noted that “despite the RBA cutting interest rates this year, mortgage stress is still significantly higher than before the RBA began raising interest rates in May 2022.”
“There are over 600,000 more mortgage holders ‘At Risk’ of mortgage stress today than there were in May 2022, and even an interest rate cut in July will still leave this figure elevated by around 520,000.”
With further rate cuts, this level of mortgage stress should fall.
Australians' investments in Housing Vs Shares - an Australian issue
Reported by Macro Business: according to CoreLogic, the total value of Australia’s housing stock was $11.3 trillion in April 2025, with the average home valued at exactly $1 million.
Compared to other English-speaking nations, Australians have more wealth tied up in housing and less in stocks.
To a large extent, they say this is caused by an influx of migrants. which has contributed 4.3 million (about half) of the 8.7 million (46%) increase in population since 2000.
Here are the immigration stats from Macrotends.
In essence, due to migration, demand has outpaced supply – and State governments are struggling with providing the infrastructure, the land and the building supply-related issues.
Interestingly, migration has also been identified as potentially one of the main causes of our low labour productivity growth in recent years as the amount of capital per worker has not grown (which in turn reflects our over-investment in housing compared to equities.
Aka, it is all related and you wonder when and how it will correct itself – or not….
Renewables - the acceleration continues
Battery storage grows faster and faster
- Renew Economy reported that battery power generated 5% of power across the entire grid on Friday night, 30 May (with 34% in South Australia, 18% in Western Australia).
- South Australia leads the world in its share of wind and solar in the grid – averaging over 72% over the last 12 months.
- Batteries are the new baseload tool and they help to stabilise the grid. And, they are more suited to renewables’ variabilities than a baseload tool which needs to run at consistently high levels to do the baseload job (aka, coal-fired plants and nuclear plants).
- China’s CATL – makers of electric car batteries for brands including Tesla, BMW and Hyundai – has revealed a new revolutionary rapid charging, long-range battery tech. New-gen electric car batteries promise 1500km range, 515km charge in five minutes. Reported in Driven.
- The world’s largest 100 per cent battery electric ship has been officially launched at a shipyard in Hobart and is almost ready for service in South American waters, where it will ferry up to 2,100 passengers and 225 vehicles between Argentina and Uruguay. Reported in Driven.
- Scientists at Stanford University have found that electric vehicle car batteries are lasting much longer than the initial estimates – up to a third longer.
Solar re-examined
An article in One Step Off the Grid.
- Rooftop solar is now the single largest generator in the national electricity market, passing 25 gigawatts of capacity across Australia.
- NSW Energy Minister, Penny Sharp added “Just to give you an idea of that, that’s greater than the total coal fire per capacity of 21 gigawatts. Rooftop solar is contributing over 12% of the total energy generation in Australia.”
- And in the middle of the day, it is the biggest input into many grid.
Now let’s look at Aussie sheep…
A three-year trial of 1,700 Merino sheep at Wellington Solar Farm in NSW highlighted four key benefits of sheep grazing around solar panels:
- Stronger, faster-growing wool
- Cooler microclimate = calmer sheep (protection from heat, wind and rain)
- Fewer parasites, healthier flocks due to better ground conditions
- Greener, more nutritious pasture (shade retains moisture)
Net global capacity additions show the dominance of solar followed by wind, worldwide. Nuclear? Literally, not in the mix.
Coal-fired plants are a basket case
- Australia’s ageing coal power stations are breaking down nearly every day.
- The Reliability Watch notes that Queensland coal generators (article) were the most unreliable, breaking down 78 times over the summer period, including a dramatic new “explosion” at the troubled Callide coal hub.
- The NCC’s CEO Jacqui Mumford noted that 35 per cent of the NSW coal fleet was offline in November, when the state had the highest wholesale prices in the main grid. “At the beginning of October, the coal power operators told the market that only 17% of the coal capacity would be offline for maintenance in November. The actual capacity that broke down was more than double this forecast.”
- Ageing power stations are more unreliable than wind and solar. Yes, wind and solar are variable (hence the need for batteries), but coal is intermittent; the difference being you kind of know in advance when solar and wind will be at low points but coal plants break down without warning – and, these old ones are breaking down often.
- There is a strong correlation between coal plant breakdowns and spikes in wholesale power prices.
The Election Triangle is morphing up
Yep, Labor won and the Coalition is in a world of pain. But did you know what is really happening, away from all the noise and hubris?
- Politics is no longer binary. That we know. With the continual rise of the smaller parties and independents, the landscape continues to change, with often unexpected outcomes.
- There is now a ‘triangle’. I won’t explain it fully here but you can go to this article for the full details
- Interestingly, when you look at individual seats (you will need to go to the article), they too are morphing in an upwards direction. In other words, each seat, no matter which of the major parties holds it, the voters are moving towards the independent candidates. This is a worrying sign for both major parties but particularly so for the Coaltion who will need to harvest more of these independent votes than their current performance indicates if they are to win government anytime soon
An explanation:
At the extremes, if an electorate is right at the tip of Labor’s corner in the bottom left, 100 per cent of people marked Labor as their first preference.
The same goes for the Coalition’s bottom-right corner.
For other parties and independents, their 100 per cent marker is at the top.
1975:
In 1975, the Whitlam government had just been turfed out of office, and voters swung behind Malcolm Fraser’s Liberal Party.
This was back in the era when the two major parties had complete domination of politics.
2025:
On the latest count, there are 32 seats in the top section of the triangle, eight more than 2022.
Those 32 include three long-term independents who now hold very safe seats: Andrew Wilkie, Bob Katter and Helen Haines.
When Wilkie won in 2010, it was from third place after getting a very favourable flow of preferences. Now, he holds one of the safest seats in the country.
Home values rising throughout the country
The nation’s median property price hit a record-high $825,349 at the end of April, after increasing for the third consecutive month and 1.1% over the quarter, according to Cotality (it was known as CoreLogic).
But the picture is slightly different when you drill down to the individual capital cities.
Three capitals, which already had record-high median prices, grew further over the quarter, further extending their record-high prices:
- Brisbane rose 1.0% to $907,864.
- Perth rose 0.7% to $807,728.
- Adelaide rose 0.9% to $825,776.
But the other five capitals remained below their previous peaks, despite all growing during the three months to April:
- Sydney rose 1.0% to $1,194,709, to be 1.1% below the peak of September 2024.
- Melbourne rose 1.0% to $786,158, to be 5.4% below the peak of March 2022.
- Canberra rose 0.6% to $864,343, to be 6.4% below the peak of May 2022.
- Hobart rose 0.9% to $664,462, to be 11.1% below the peak of March 2022.
- Darwin rose 3.4% to $526,410, to be 2.7% below the peak of May 2014.
If you want to buy a property before the end of 2025, now’s the time to start preparing. While seven months might feel like a long time, buying a home or investment property can take a while – and the process will move faster if you’re properly prepared.
Spotlight on ALPS housing
Anthony Albanese’s focus has shifted from campaigning to governing, which means voters will be watching to see how he implements the promises he made to first home buyers and homeowners during the election.
The Australian Labor Party (ALP) promised to reform the Home Guarantee Scheme, which currently includes income caps ($125,000 for individuals and $200,000 for joint applicants) and is limited to 50,000 participants per year. From 2026, there will be no caps on how many people can apply and no limit on how much applicants can earn, according to the ALP. “For first home buyers, you’ll be able to buy an eligible property anywhere in Australia, with a deposit as low as 5%.”
Labor also pledged $10 billion to fund up to 100,000 homes reserved exclusively for first home buyers. “Funding will support enabling infrastructure, land purchases or construction to get these homes built – near work and family, only for first home buyers.”
The ALP said it would further spur homebuilding activity – and thereby put downward pressure on prices – by investing funds to increase the number of qualified tradespeople and reduce the amount of red tape related to residential construction.
From 1 July 2025, Labor said it would roll out its $2.3 billion Cheaper Home Batteries Program, which is projected to reduce the cost of a typical installed battery by 30%. This is expected to result in power bill savings of $1,100 per year for households that already have rooftop solar and $2,300 for households that install it.
The pros and cons of using a novated lease to finance a new car
A novated lease is a three-way agreement between you, your employer and a finance company for the acquisition of a vehicle.
You lease rather than buy the vehicle, with your employer making the lease payments on your behalf from your salary. These payments come from your pre-tax income, which can reduce your taxable income and overall tax bill.
- Pros include potential tax savings, simplified budgeting (as running costs like fuel and servicing can be bundled) and access to a new or near-new car.
- Cons include the risk of being liable for payments if you change jobs, possible early termination fees and not owning the car at the end unless you pay a residual value.
A novated lease can be a smart option for employees who want convenience and potential tax benefits – but it’s not the right fit for everyone. Before committing, it’s important to compare the total cost of leasing versus buying, and to understand how job changes might affect your agreement.
Contact me if you’d like help weighing up whether a novated lease is right for you.
Trivia? The metre defined
We may not realise it, but clear and agreed definitions of measurement do matter, particularly in science, engineering and electronics.
- On May 20, 1875, delegates from 17 countries assembled on a Parisian spring day and signed the Metre Convention, also known as the Treaty of the Metre. Up until then, it wasn’t uncommon for countries, states and even cities to have entirely different ways of measuring distance and mass, hampering trade and holding back progress in science.
- In the 1700’s, a metre was equal to one 10-millionth of the distance from the North Pole to the equator through the Paris Observatory. This took a couple of astronomers 7 years but …. it was found out they were 0.2 millimetres short!
- In the 1890’s, thirty metre bars made of a stable platinum-iridium alloy were distributed around the world and remained the “standard” metre for decades.
- But as science progressed, so did the definition of a metre.
- By 1960, scientists discovered they could measure distances using light. Light travels in waves. If you know the distance between each wave — called the wavelength, literally the length of the wave — it’s possible to use light “as a very fine ruler”, Dr Warrington says. One metre equalled 1,650,763.73 times the wavelength of a specific reddish orange light (based upon krypton gas).
- Then electronics got really, really small and there was the advent of atomic clocks. Their “ticking” is produced by oscillations of radiation emitted when atoms are bathed in laser light. And they can tick billions of times every second. This new ability to divvy up the second into increasingly tinier slices, coupled with a universal physical constant, the speed of light, redefined the metre. From 1983, a metre was considered the distance that light travels in a vacuum in 1/299,792,458 of a second (because light travels 299,792,458 metres per second).
