Catch up on this week's editions
Good morning. Australian families now need 50.9% of their income to meet monthly mortgage repayments, a record high and well past the 30% threshold where the Australian Bureau of Statistics starts calling it stress.
Four rate rises this year and a 7.8% annual jump in average loan sizes pushed the figure up 3.3% since mid-2025, meaning the average household is now paying rent to the bank.
Arrears are still under 1.5% though, which means most people are finding the money somewhere, even if it's coming out of everything else.
All the headlines and more below...
ONE IN 10 AUSTRALIANS NOW USE WEIGHT-LOSS DRUGS - AND RETAIL SPENDING IS SHIFTING WITH IT
EY surveyed more than 9,200 Australian adults in early 2026 and found adopted of GLP-1 medicines such as Ozempic and Wegovy could reach approximately 30% of Australian adults within the next 10 years under its more extreme scenario modelling.
Fast food chains are already responding. KFC Australia now promotes a Zinger Protein Bowl with 44 grams of protein and a "Protein Picks" range. Marley Spoon says demand for its GLP-1 recipes almost tripled since their launch in May. EY's research found surveyed users were dining out 44% less. Reported alcoholic beverage consumption had fallen 41%. Surveyed users reported a shift towards fresh, protein-rich and health-oriented foods and reduced consumption of snacks, alcohol and processed products.
Fashion retailers are watching sizing demand. EY found 67% of GLP-1 users surveyed felt more motivated to refresh their wardrobe, while 57% reported increased spending on clothing. US research from NIQ found GLP-1 users spent 26% more on fragrances than the typical consumer, with companies including Givaudan, IFF and L'Oréal exploring whether the medicines influence scent preferences.
AUSTRALIAN NEWS
The average Aussie spends $165 a month on unnecessary purchases, and diverting that to mortgage repayments could save about $66,910 and nearly 2 years off a typical home loan. LINK
The government has moved to recalibrate its student visa crackdown as new international student commencements at public universities were projected to fall 18% this year, wiping about $2B from revenues. LINK
Mortgage arrears of at least 30 days have been worsening as unemployment rises to 4.7% and more highly leveraged first homebuyers entered the market. LINK
The government plans to ban new suburban data centres as part of AI law reforms that will tighten training-data disclosure, mandate renewable energy use and reshape copyright negotiations. LINK
Child deaths linked to the state's child protection system rose from 9 to 26 in the latest year, mostly involving complex medical conditions. LINK
Sydney’s new Southwest Metro line has opened to commuters after more than 2 years of replacement buses, delivering trains every 4 minutes at peak and cost just under $23B. LINK
ATO CHASING SMALL BUSINESSES FOR SUPER DEBTS UP TO 5 YEARS OLD, SOME ALREADY PAID
The Australian Taxation Office is issuing notices to small businesses for alleged superannuation debts they do not owe or have already paid, some worth tens of thousands of dollars. Members are reporting debts they were never notified of and debts they are already making payments on under existing arrangements.
Shadow Treasurer Tim Wilson says the ATO is using incomplete data matching and threatening businesses with serious penalties where no breach occurred. The rise in notices has occurred since payday super was introduced on 1 July, potentially due to automation combined with increased ATO enforcement, though no direct link has been established.
Businesses are facing costs in the thousands to investigate and dispute incorrect notices. Bookkeepers bill between $80 and $100 an hour, and reconciling superannuation records from years ago can take hours of work. The ICB has warned the ATO through ongoing consultation that the automated process risks creating another Robodebt scenario and has called for human review of debts that are significantly aged or large.
INSIDE TRACK
NAB is pausing fixed reward outcomes and approvals for all You Leave during a restructure and has cancelled its Christmas Party in Melb and Sydney in favour of smaller team ones, according to a tip to our Inside Track. LINK
COMPANY NEWS
DoorDash launched a pilot with Serve Robotics on the Gold Coast using a four-wheeled footpath robot to deliver meals as it tests automated delivery options. LINK
Qantas secured approval from 61% of its 1,700 international pilots for a 6-year deal delivering a 25% pay rise and improved rostering after earlier threats of industrial action. LINK
Australian Ethical dumped KPMG Australia as its external auditor after scrutiny of KPMG’s audit practice and will run a tender for a replacement to start in FY28. LINK
Kogan.com chief Ruslan Kogan accepted a $50,000 salary and a potential $50M bonus as he targets lifting the retailer’s share price from about $3.70 to $7.44 within 5 years. AFR
Woolworths warned at its annual general meeting that many Australians face a "tighter Christmas" as cost-of-living pressures bite, even as quarterly sales rose 4.7% to $19.4B. LINK
JB Hi-Fi and Super Retail Group reported flat-to-weak first-quarter FY27 sales as value-focused customers cut discretionary spending amid higher interest rates, fuel costs and softer consumer confidence. LINK
Microsoft’s Australian units delivered a combined $612.6M profit on $13.6B revenue in the year to June as AI-driven data centre demand lifted Datacentre (Australia) to a $326M profit. LINK
Alphabet reported Q3 revenue of US$127.6B, missing expectations as Google's core advertising sales undershot forecasts and heavy AI investment drove a US$9.07B negative free cash flow. LINK
Bakers Delight completed a year-long small-footprint bakery trial in Melbourne that could unlock 40 new Australian sites as it targets 17 - 25 new stores a year toward 700 by 2030. LINK
DoorDash has agreed to acquire Instacart for US$17B in a mostly cash deal at US$65 per share, as its gross order value rose 36% to US$33.9B. LINK
AUSCORP EMPLOYEE BENEFITS SURVEY 2026
Two jobs can pay the same and feel completely different once you add up the parental leave, the super, the bonus, the WFH days and what your manager is like. We are comparing what Australian companies offer, and we need your help to do it.
It takes about 5 minutes and most of it is already filled in, so you won’t need to dig out your contract. There’s also a section on culture where you can tell us what your workplace is really like. It’s anonymous, and the results go straight back to the community.
ONE MORE SCROLL
Editor’s Pick: Fair Work Ombudsman recovered $453 million in unpaid wages as anonymous complaints hit record highs.
Doctor’s Pick: Why you are never too old for therapy.
TRIVIA
Which country has the most Michelin-starred restaurants?
Answer below
ANSWER
France
