Chalmers flags tax reform; Optus cops huge fine; $100m AI bonus
Published: June 18, 2025
Chalmers flags tax reform; Optus cops huge fine; $100m AI bonus
News in brief
PM Anthony Albanese could meet Donald Trump next week after changing his mind and deciding to attend the NATO summit in The Hague. It seems the condition is that he wants to arrange a meeting with Trump before he goes, rather than risk missing out again as happened at the G7.
Hopes that the administrators of Regional Express are close to a sale of the struggling carrier have been dashed, after the government says it will continue to support REX for another six months.
Optus has agreed to pay a $100 million penalty for selling customers phones and contracts they did not want or need after the consumer watchdog accused the telco of “unconscionable conduct”.
Bali Airport has cancelled dozens of flights because of a volcanic eruption, stranding holidaymakers and threatening the area’s key tourism industry. Singapore Airlines, Jetstar, Air Asia and others have halted flights this week.
Open AI chief executive officer Sam Altman says competitor Meta Platforms has offered his employees sign on bonuses as high as $US100 million and even larger annual compensation packages.
Fear-o-meter
Federal Treasurer Jim Chalmers yesterday floated the idea of serious tax reform at the National Press Club. Except that it’s not serious tax reform, unless the government at least considers changes to the GST.
Income tax is growing as a proportion of the total tax take. That’s a disincentive to working. Company tax is also increasing and that’s a disincentive to investing.
Chalmers said any tax reform should focus on lifting productivity and investment and lower the income tax burden.
It is going to be quite a magic trick to do that efficiently without changing the GST. Maybe there’s a bunch of new, big revenue streams that the government knows about and is politically happy to impose. But I don’t think so.
Even if the government chooses not to change the GST, it should at least be part of the discussion.
Who's talking today?
On the Geopolitical Risk Index - how it's put together, and what more than a century of data tells us about how markets respond to events on the world stage. Diana starts by explaining how the Index maps major events:
"It's basically a tally of newspaper / media articles and mentions of anything related to geopolitical risks. So for example, things related to defence, military missiles, defence spending, interventions, air strikes. And what we tend to see is that when there is some sort of geopolitical event like a missile strike, an invasion of country, even things like a nuclear disaster, that index will rise on the day and and vice versa.
So I think of it as as like a as like a concurrent indicator of activity. It's not leading because how can you lead a geopolitical event? It's basically impossible to predict what leaders around the world are going to do, when they're going to invade a country. Sometimes we do see markets anticipating conflict and we have seen that in recent weeks with Israel and Iran. Tensions have been building over the past few weeks the oil price has been rising a little bit, but we don't know where the actual event will happen so the index basically just rises and falls as events flare up and flare down."
It’s Thursday the 19th of June 2025, and Treasurer Jim Chalmers says an overhaul of the tax system is necessary to reduce the budget’s growing reliance on income tax. He says we need it to improve the long-term sustainability of the country’s finances. According to the Treasurer, any tax reform would focus on lifting productivity and investment, and lowering the income tax burden.
Greed-o-meter
| Rank | Airline |
|---|---|
| 1 | Qatar Airways |
| 2 | Singapore Airlines |
| 3 | Cathay Pacific |
| 4 | Emirates |
| 5 | ANA All Nippon Airways |
| 6 | Turkish Airlines |
| 7 | Korean Air |
| 8 | Air France |
| 9 | Japan Airlines |
| 10 | Hainan Airlines |
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Qatar Airways has been named the world's best airline for a second year in a row. Qantas didn't make the top ten, but did climb an impressive ten places to come in at number 14. Virgin Australia was ranked 34th.
Listen to today's episode 🎧
Source: SKYTRAX World Airline Awards
Fiji golf holiday? Yes please.
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