High inflation to trigger rate hike; Woolies wins in supermarket wars; Star’s $260m fine
Published: October 28, 2026
High inflation to trigger rate hike; Woolies wins in supermarket wars; Star’s $260m fine
News in brief
Australians are losing faith in the organisations around them
Fear-o-meter
Why Australians hate paying tax
Rising living costs, the high visibility of income tax, concerns about whether big business pays its fair share, and doubts about value for money relating to public services are the four main reasons Australians believe they are paying too much tax.
New research, which examines 14 years of tax surveys, found that cost-of-living pressures were primarily behind perceptions of over-taxation. The catalyst for the research was the constant stream of media stating that Australia is a high-taxed country when data indicates it is not, says author UNSW Business School Emeritus Professor Fiona Martin. The second author of the research is Curtin Law School Senior Lecturer Christina Allen.
One reason why Australians believe they are over-taxed is ‘tax salience’, or how noticeable a tax is to the person paying it. Personal income tax comprised 42.6% of Australia’s tax revenue in 2023 (the second-highest share in the OECD), and most workers see it withheld from their pay and again at tax time.
GST accounted for 11.4% of tax revenue in 2022, compared with an OECD average of 20.8% for VAT and GST. This is the second lowest among all OECD countries; the only country lower is the United States, which does not have a federal GST.
Fear & Greed Q+A today
In the third interview in our weekly series on retirement and investing with MLC Expand, Jenneke Mills talks to Sean Aylmer about finding the right financial planner:
"Quite often we'll probably think going to see a financial planner, I need to have all my bank statements and all my superannuation statements and know where all my money is. But it's more than that.
It's actually being able to feel comfortable opening up and sharing with someone all the elements of your life. What's happening with your family, who gets along, who doesn't, who might be relying on you in the future, and also what you want for the future.
And also being really open and honest about money, your values, how you approach finances, what you feel you're strong at, but also what you're not so good at.
So if you're someone who maybe has too many subscriptions or you don't log in and check your details when you need to because you're time poor, understanding that they're not going to judge you.
So you want to walk away from that meeting feeling like you've been able to almost bare your soul without judgment and feel confident that they get you. They're on the same wavelength."
Inflation shock makes Melbourne Cup Day rate hike likely
Australians are facing the prospect of a fifth interest rate increase this year after stronger-than-expected inflation figures put the Reserve Bank under renewed pressure to act.
Headline inflation reached 4.3 per cent in the year to September, driven by higher housing costs, particularly construction, and rising petrol and diesel prices. The RBA's preferred trimmed mean measure rose one per cent for the quarter and 3.7 per cent annually, well above its two to three per cent target.
Financial markets now put the probability of a rate increase next Tuesday at around 90 per cent, while the Australian dollar briefly climbed to a five-week high of US70.5 cents.
The figures have also intensified the political debate over government spending. The Opposition argues federal spending is adding to inflation, while Treasury secretary Jenny Wilkinson says private demand is the main driver.
Greed-o-meter
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Inflation isn't just being driven by petrol prices. Price pressures are spread across much of the Australian economy, from electricity and housing to healthcare, rents and restaurant meals. AMP economists say services inflation remains stubbornly high at 4.1 per cent, while goods inflation has also picked up. That's a worrying combination for the Reserve Bank.
Listen to today's episode 🎧
Source: AMP, ABS
Supermarket battles: Woolworths has reported a 6.9 per cent increase in Australian supermarket sales to $14.8 billion, helped by lower prices and stronger demand for its own-brand products. Average prices fell 0.7 per cent, while online sales jumped more than 20 per cent. The result suggests Woolworths is regaining momentum against Coles.
Star Entertainment $260 million fine: Star Entertainment has been fined $260 million for serious anti-money laundering breaches, after a Federal Court judge found the casino operator put profits ahead of compliance. Star had warned a penalty above $100 million could force it into insolvency, although its chairman says improving trading conditions should help it survive.
DJ’s secures emergency Christmas funding: Struggling department store David Jones has secured $10 million in emergency funding from lender Hilco Capital to purchase stock ahead of Christmas. The retailer has faced supplier payment problems and breached a lending condition. It is also negotiating with landlords over plans to close more than half its stores.
Israel election hangs in the balance: Exit polls suggest neither Benjamin Netanyahu nor opposition leader Gadi Eisenkot has secured a clear majority in Israel's general election. Two Arab parties could hold the balance of power, with final results dependent on outstanding votes.
China's elderly population overtakes its children: China now has more people aged 65 and over than children aged 14 and under for the first time. Official figures show 223 million elderly people compared with 213 million children. The demographic shift threatens economic growth and places growing pressure on the country's workforce, pension system and healthcare services.
A new report has found that 43% of Australians believe organisational behaviour has deteriorated in recent years, compared with just 17% who think it's improved.
The 2026 Australian Governance Index, from the Governance Institute of Australia, reveals the biggest gaps between public expectations and performance are in integrity and accountability, with media, government and financial services facing the greatest scrutiny.