Share and Follow
This week was marked by a whirlwind of events that touched everything from global markets to the latest in artificial intelligence, capturing the attention of many. The volatility seen in financial markets has raised concerns about the recent decrease in petrol prices, which now seem at risk. In the midst of these economic fluctuations, the government unveiled a new tax deduction initiative aimed at enabling taxpayers to lower their taxable income in the coming year.
Oil prices were notably affected, with a significant surge due to ongoing tensions in the Middle East. The conflict has once again prompted anxiety among investors about the stability of global markets, particularly concerning the critical Strait of Hormuz. This vital waterway has been a focal point of geopolitical strife, causing unpredictable fluctuations in oil prices.
By the end of the week, the price of Brent crude had escalated to approximately US$105 (or $160) per barrel, reflecting an increase of over 15% in just a few days. Such a rise underscores the fragile nature of current global economic conditions and the interconnectedness of geopolitical events and market dynamics.
Oil prices jump, threatening fall in fuel costs
And, as always in the realm of finance, the topic of artificial intelligence continues to be a prominent subject of discussion, promising to influence various sectors in unforeseen ways. This week was indeed a microcosm of the complexities and interdependencies that define our modern world.
By Friday, brent crude had climbed to around US$105 ($160) a barrel — a jump of more than 15 per cent across the week.
It threatens a recent fall in petrol prices.
The Australian Competition and Consumer Commission on Friday said across Australia’s five largest capitals, the average unleaded petrol price was around 65 cents cheaper than on the 31 March, while diesel was 45.5 cents lower, although most of that occurred in the past week.
The war in the Middle East also prompted a fall in global markets, as US markets fell from record highs ahead of important tech earnings next week.
A $1,000 tax deduction is coming
The federal government unveiled draft legislation for it’s $1,000 “instant” tax deduction announced during last year’s federal election campaign.
It will allow more than six million workers to reduce their taxable income by $1,000 — without receipts.
It’s designed to simplify tax time, particularly for people who don’t usually claim work-related expenses.
But there’s a catch — the financial benefit won’t be felt immediately.
The average saving is expected to be about $205, and it will not flow through until the second half of next year.
AI is reshaping jobs and big money is flowing in
Demand for artificial intelligence (AI) skills is accelerating, with job ads mentioning AI keywords on employment website SEEK jumping 75 per cent over the past year.
While AI-related job ads still make up a small share of total job listings, the direction is clear. Workers who build digital and AI capabilities are likely to be better positioned as the labour market evolves.
At the same time, global tech giants are doubling down on Australia.
Microsoft this week announced a $25 billion investment in data centres and AI infrastructure, alongside plans to help train three million Australians in AI skills by 2028.
That follows a similar $20 billion commitment from Amazon earlier this year.
Young Australians turning to AI, influencers for financial advice
New data suggests younger Australians are increasingly relying on online sources for financial information including AI tools, social media and so-called ‘finfluencers’.
Financial regulator the Australian Securities and Investment Commission said around 64 per cent of Gen Z it surveyed said they trust financial information from AI platforms, while more than half look to social media or influencers.
Regulators are concerned that not all of these sources are reliable or qualified to give advice, and have stepped up enforcement in response.
For consumers, it’s a reminder to be cautious about where financial information comes from especially when it involves investment decisions or major life choices.
That’s this week’s On the Money wrap. Prefer to listen? The On the Money podcast breaks down the latest every weekday. You can tune in here or wherever you get your podcasts.
For the latest from SBS News, download our app and subscribe to our newsletter.