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Why Australia's banking giants are thriving despite stubborn interest rates

  • The Reserve Bank of Australia kept its official cash rate at 4.35% for the second consecutive meeting, noting that persistent inflation keeps potential monetary tightening on the table.
  • Australia's major banks trade on price-to-earnings ratios spanning 17.6 to 28.2, underpinned by robust capital positions and stable credit quality.
  • Sector executives project that high borrowing costs and slowing domestic economic activity will continue to influence credit growth and loan impairment expenses.
Read more: Why Australia's banking giants are thriving despite stubborn interest rates
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The hidden tax war quietly reshaping domestic infrastructure pipelines

  • The Australian Productivity Commission released an interim report declaring the 2018 GST distribution reforms a costly error. The system shifted $23 billion to Western Australia and requires an immediate overhaul.
  • Maintaining the current structure will cost the federal budget an estimated $60 billion by the end of the decade. This structural shortfall actively strains the fiscal capacity of eastern states.
  • Returning to horizontal fiscal equalisation threatens Western Australia's economic surplus. It simultaneously unlocks $47 billion for eastern states, forcing civil contractors to re-evaluate domestic pipelines.
Read more: The hidden tax war quietly reshaping domestic infrastructure pipelines
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Major property groups cash in retail assets to boost liquidity

  • Lendlease executed a contract to divest its 50% stakes in two high-profile shopping centres, Lakeside Joondalup and Westfield Carindale, to Cbus Property for approximately $1.3 billion.
  • The transaction highlights active capital recycling across major Australian property groups, with Lendlease Group shares reacting at $3.14 following the announcement.
  • Sector participants continue to focus on operational streamlining, liquidity enhancement, and capital return strategies amid evolving commercial property valuations.
Read more: Major property groups cash in retail assets to boost liquidity