Good morning. Soft drink consumption is in long-term decline, so the fast food chains have stopped trying to sell you a Coke and started selling coloured frozen drinks with chewy things in them.
Hungry Jack's put a pistachio sauce on a vanilla shake and the queue went down the street, while Gen Z increasingly skip the beer at the pub for a non-alcoholic drink that can cost upwards of $10.
That same sauce has already been through Gelatissimo, Krispy Kreme, Yo-Chi and Baker's Delight, so the queue comes as no surprise.
All the headlines and more below...
EACH 0.25% RATE HIKE CUTS HOME PURCHASES BY 5% AND LOCKS YOUNGER BUYERS OUT FOR YEARS
Every standard 0.25 percentage point rate rise immediately cuts home purchases by 5%, and buying stays subdued for up to 2 years, according to University of Sydney research. Home ownership rates slide too, down 0.1 percentage points within 3 months and 0.3 percentage points below baseline four years on, which lead author James Graham says equates to tens of thousands fewer Australian households owning their home. Ownership does not recover above pre-rise levels for more than a decade.
Younger, lower-income households are hit hardest. After a rate rise, incomes typically fall and households are forced to draw down savings that would otherwise have gone toward a house deposit. Middle-aged Australians see ownership rates fall several years later because many were unable to buy when they were younger, while older households remain largely insulated.
The Australian sharemarket has a 90% expectation of a 0.25 percentage point hike to 4.6% next week. That rise would leave the average household $427 a month worse off compared with January 2026. If there are 2 more hikes this year, a household on the average $736,000 mortgage will be paying $542 a month more than they were in January.
AUSTRALIAN NEWS
Private colleges and immigration agents around Australia have offered discounted or rushed enrolments into the soon-to-be-deregistered graduate diploma of management (learning) as non-genuine student misuse concerns mount. LINK
Prime Minister Anthony Albanese has proposed an international AI watchdog modelled on the International Atomic Energy Agency after revealing OpenAI agents breached Services Australia and potentially 3 other government websites. CB
The federal government is forecast to spend $41.9B a year on interest by 2028-29, exceeding Medicare outlays, as higher bond yields sharply inflate servicing costs on COVID-era debt. AFR
Australian workers have until 31 October to lodge tax returns or risk ATO failure-to-lodge penalties starting at $364 and rising to $1,820. LINK
Homeowners are increasingly choosing smaller plunge pools or spas as high interest rates, shrinking blocks and cost-of-living pressures hit traditional pool demand, especially in Victoria where approvals have fallen. AUS
Australia is facing an exceptionally strong El Niño that has already driven Pacific temperatures to record levels and caused about US$10B in weather damage last year. LINK
75% OF AUSTRALIANS ARE CUTTING SPENDING TO AFFORD A HOME, MORE THAN ANY COMPARABLE COUNTRY
Three-quarters of Australians are willing to cut their spending to afford a property, the highest rate among comparable countries. The figure topped Canada, the US and the UK, where fewer than 70% of residents said the same, and was highest among Gen Z. The number of 26-to-29-year-olds living with their parents climbed from 19.6% in 2012 to 21.9% in 2024, with young men almost 10% more likely to stay home than women.
Millennials, the largest buyer cohort globally, are selling second cars, cancelling holidays and moving to cheaper postcodes to afford family-sized homes. Prospective buyers are cutting dinners out and relocating from where they want to live to markets they can afford.
Most Australians will not enter the market until the average mortgage rate hits 4.9%, the survey found. The average owner-occupier rate in August 2026 was 6.3%. Only a quarter of Australians said they could feel financially comfortable paying upfront housing costs, and just 26% said they could cover monthly repayments without changing their lifestyle.
COMPANY NEWS
Star Entertainment has had its Sydney casino licence suspension extended for 9 months as the NSW regulator cites unresolved governance and culture concerns and ongoing AUSTRAC court action. LINK
CBA reported that the number of small businesses investing in AI tools more than doubled in FY26 and spending on AI-integrated software suppliers rose 15% as owners seek practical time-saving support. LINK
Westpac has been accused of complacency after failing for 5 years to fix serious small and medium business lending control weaknesses found in a 2021 internal audit, as APRA weighs enforcement action. AFR
BHP and Telstra paid a combined $8.32B in dividends to Australian investors as new RBA-backed rules will ban card payment surcharges from 1 October. LINK
Netwealth has confirmed it faces a class action over its offering and monitoring of First Guardian investment options through its superannuation master fund. LINK
Qantas reaffirmed guidance that its loyalty business will lift profitability by up to 60% by 2030 as member engagement and partner-funded points economics underpin strong earnings growth. AFR
Nine is facing pressure as its value nears $1B, free-to-air TV earnings have fallen 19% and Stan’s valuation and subscriber growth are weakening. AUS
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ONE MORE SCROLL
Odd Pick: Sunnyfield Farm in Hampshire has unveiled a 218.19-square-metre mosaic of Sir David Attenborough made from more than 10,000 pumpkins and squashes, breaking its own world record.
Draft Pick: England has beaten New Zealand 26-19 with Zoe Harrison's intercepted, converted try in added time as the Red Roses extended their unbeaten run to 41 matches at Twickenham.
Doctor’s Pick: Squishy toys leaving children with burns as manufacturer asks Australian Border Force to help stop counterfeits.
TRIVIA
Which five-letter word can go BEFORE "whip", "fly" and "shoe" to make three other words?
Answer below
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ANSWER
Horse
- Horsewhip
- Horsefly
- Horseshoe
