Trending Financial News 2 July
$1080 coming soon to your bank account
Lower and middle-income Aussies could see $1080 in their bank accounts as early as next week thanks to the government’s tax cuts. The bills to enable the tax cuts are being debated in parliament this week.
Treasurer Josh Frydenberg told Sky News today that the Australian Taxation Office is ready to issue the tax cuts if the parliament passes the laws.
“If the legislation passes this week … people will get it next week.”
That is conditional upon taxpayers finishing and lodging their completed tax returns.
“Once they put in their tax returns … they’ll get it just days after,” said the treasurer.
77 per cent chance of a July rate cut
Markets believe there is a 77 per cent chance the Reserve Bank of Australia will cut interest rates by 0.25 percentage points today, Tuesday 2 July.
The ASX cash rate futures market expectations of a cut have fallen from close to 90 per cent one week ago to 77 per cent yesterday.
The RBA has the official cash interest rate currently set at 1.25 per cent. The governor of the RBA, Philip Lowe, has recently commented that further cuts may be needed.
Savers need to take action
Deposit rates are falling so savers need to take action to either lock in a reasonable term deposit rate or find a competitive at-call savings account said Vadim Taube, chief of InfoChoice.com.au.
The Reserve Bank is expected to cut rates further in 2019 so savings rates may continue to fall.
“With savings accounts, you don’t need to choose an account offered by the bank or credit union which handles your transaction account,” said Vadim Taube.
“Many accounts can be linked to a transaction account with another bank or credit union.”
ME Bank is back online
ME Bank mobile app, cards, ATMs and Eftpos services suffered a widespread outage on Sunday 30 June. ME Bank customers were unable to use these services or access their funds. ME Bank has advised customers that all services are back online as from 1 July. ME says affected customers who have queries or complaints can call ME on 13 15 63 or firstname.lastname@example.org.