Bill Kelty urges Labor to do more than tinker with capital gains tax to make system fairer to young working Australians.
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First up, a massive reality check for the White House. The U.S. Supreme Court just clipped President Trump’s wings by striking down a huge chunk of his tariff powers. Basically, they ruled he can’t just use ’emergency powers’ to bypass Congress whenever he wants to slap a tax on imports. Now, Trump didn’t take this lying down. Within hours, he hit back with a fresh 10% tariff—quickly bumped to 15%—using a different, temporary law. But here’s the kicker for business: that new ‘patchwork’ tariff only lasts 150 days. While trade experts say his ‘trade bazooka’ is gone, the uncertainty is still very much alive. We’re now looking at months of legal fights over whether companies can get refunds for all those ‘illegal’ duties they’ve already paid.
Closer to home, Labor legend Bill Kelty is throwing a grenade into the tax debate. Ahead of the Senate inquiry, the former union boss is calling our current system ‘cruel’ to young people. His pitch? Slash the 50% capital gains tax discount for investors down to maybe 20 or 30%, but—and this is the big catch—pair it with an income tax cut, dropping the top rate from 45 down to 39%. He’s telling the Albanese government they can’t just use this as a ‘revenue grab’; it has to be genuine reform that gives the next generation a fighting chance at a house.
Turning now to the economy—and there’s some tough news today for Australian households. Inflation has edged up again, hitting an annual rate of 3.8%. While that might seem like a small jump from last month, it’s the direction that matters. It puts the Albanese government in a tight spot and keeps the heat squarely on the Reserve Bank. The RBA’s preferred measure, “core inflation,” rose to 3.4%. That is still well above their target range, and forecasts show it staying high for the rest of the year. This really caught the big banks by surprise; both CBA and Westpac were expecting things to cool down. Instead, we’re now looking at a likely interest rate hike in May, following the jump to 3.85% we saw earlier this month.So, what’s actually driving these prices? According to the ABS, the biggest pain points are:
- Housing costs: Up 6.8%, driven largely by a massive 32% spike in electricity bills.
- Recreation and Culture: Up 3.7%.
- Food and Beverages: Up 3.1%.
While the RBA usually prefers quarterly data because monthly figures can be volatile, this “hotter than expected” result makes their job a lot harder. For mortgage holders, all eyes are now firmly fixed on that May policy meeting.
The Albanese government is making a big push on home‑grown AI, warning that if Australia doesn’t move fast, we risk what Andrew Charlton calls the “Uberisation” of the economy — where the tech is foreign, the profits go offshore, and Australians are left renting the tools rather than owning them. Charlton, the Assistant Minister for Technology and the Digital Economy, is telling business leaders this week that AI will lift productivity, but unless Australia builds and owns more of the technology, those gains won’t show up in local incomes. Right now, Australia produces just 0.18% of global AI patents — tiny, given our economic size. But here’s the political tension: new polling from Labor’s own pollster shows a sharp rise in voters wanting stricter AI rules, even if that slows innovation. More than a third of Australians now want a tough regulatory approach, and almost half say the risks of AI outweigh the benefits. Charlton is trying to walk that line. He’s ditched the idea of a standalone AI Act in favour of lighter-touch regulation, while also pitching Australia as an investment destination to global players like Anthropic. But the tech sector says the window is closing — maybe 18 months — and that Australia’s copyright laws are a major barrier to attracting AI labs and data‑centres
And the battle for Healthscope is getting messy. Just when it looked like the country’s second-largest private hospital group was going to be turned into a not-for-profit, the landlords have revolted. A group led by Calvary Health and HMC Capital is prepping a rival bid for all 31 hospitals. They’re basically trying to block the not-for-profit move because it would force them to take lower rents. It’s a high-stakes game of chicken with 18,000 jobs and the future of private healthcare hanging in the balance.”
Big news in the retail space today: Bunnings is officially teaming up with Uber Eats. Starting now, you can get over 30,000 items—from power washers and lawn mowers to basic nuts and bolts—delivered to your door in under an hour. It’s the largest retail range ever hosted on the app, and the best part? The prices are exactly the same as what you’d find in-store. This isn’t just about convenience for the weekend gardener; it’s a strategic move to capture two specific markets: Chief Operating Officer Ryan Baker says this is a huge win for professionals. If they’re on a job site and run out of supplies, they no longer have to drop tools and lose time driving to the warehouse. Bunnings is seeing a surge in younger customers who prioritize speed, specifically for things like cleaning supplies and moving boxes. After a successful pilot in January, they’re expanding to 10 more stores across NSW and Queensland before a full national rollout later this year. It’s clear the ‘ultra-convenience’ battle has moved well beyond the grocery aisle and straight into the tool shed.
And the profit reporting season has reached its final frantic week. Petrol and diesel supplier Ampol has posted a 33% drop in net profit to $82.4 million in the year ended December 31, from $122.5 million the previous year. Lendlease swung to a net loss after tax of $318 million in the six months to December from a profit of $48 million a year earlier. Investigations software company Nuix swung to a net profit of $11.1 million for the half ended December 31, compared to a loss of $10.4 million in the corresponding period a year earlier. Mining technology firm IMDEX’s statutory net profit fell 15% to $26.21m. Homewares group Adairs’ net profit fell by 33.8% to $12.8 million in the 26 weeks ended December 28. Health insurer NIB’s net profit dropped to $82.9 million for the six months to December 31. Kogan.com’s net profit fell 20% to $8.2 million. Internet services provider Aussie Broadband’s interim net profit slid 58% to $5.1 million. McMillan Shakespeare has posted a 9.7% rise in first-half net profit of $49.6 million. Reece has reported a 20% fall in first-half net profit of $144 million, down from $181 million a year earlier, Mining services group Perenti has posted an 11% rise in half-year net profit to $70.5 million. Cash Converters International has reported a 9% rise in first-half net profit to $12.1 million. New Zealand company Fisher & Paykel Healthcare Corp says it expects full-year net profit to be in the range of $NZ450 million ($A380 million) to $NZ470 million ($A397 million), compared to the previous guidance of $NZ410 million to $NZ460 million. Defence shipbuilder Austal has lifted first-half earnings reporting that its net profit increased 21.45% to $30.5 million. Entertainment giant EVT Limited – which counts Event Cinemas and the QT hotel chain among its holdings – has posted a half year net profit of $31.8 million, up by $6.7 million, or 21.6%, on the year before. Regis Healthcare’s net profit declined to $13.4 million. Mayne Pharma narrowed its loss to $12.1 million compared to $20 million a year ago. Data#3 ‘s net profit increased 3.7% to $23.2 million. Chorus posted a half year net profit after tax of $15 million compared to a net loss of $5 million the year before. Insurance broking and underwriting group AUB increased its first-half profit to $35.3 million from $26.4 million a year ago. Alternative asset manager Regal Partners saw its profit grow 65% to $160.5 million. Engineering group Monadelphous reported its net profit climbing 52.6% to $64.9 million. AMA Group’s earnings before interest, taxes, depreciation and amortisation increased 21.9% to $30.5 million. Southern Cross Media’s net profit slid 16.5% to $34.7 million. Nanosonics reported that its gross profit increased to $78.0 million from $73.4 million in the prior period, while net profit fell 1% to $9.64 million. Tasmanian whisky maker Lark Distilling reported a loss of $835,000 for the six months ended December 31, an improvement on the $2.42 million loss in the same period a year earlier. Nine Entertainment increased its profit by 42% to $81 million in the six months to December 31. Beauty and cosmetics retailer Adore Beauty reported a record underlying EBITDA of $4.1 million which was up 14.5%. Tyro Payments’ statutory net profit before tax increased by 72.3% to $17.7 million. Abacus Group posted a statutory net profit of $47.6 million for the half year to December 31, up $53.3 million on the prior period. Retail landlord Scentre Group reported funds from operations of $1.188 billion for the year to December 31, up 4.9%. Woodside Energy has posted a 24% drop in net profit to $US2.72 billion in the 12 months ended December 31, from $US3.57 billion in 2025. Alternative assets management company HMC Capital half year results showed assets under management of $19.5 billion, up 4% since June 2025. Viva Energy’s net profit fell 27.8% to $183.6 million for the fiscal year. Four-wheeled accessories business ARB’s net profit fell 17.2% to $42.2 million for the six months to December 31. Kelsian said it has increased net profit by 32.2% in the first half to $52.5 million. Light & Wonder’s adjusted net profit before amortisation increased 18% to $US567 million, in line with previously issued guidance. Sea Forest has reported a net loss of $3.9 million for the half year, compared with $3 million a year earlier. Financial software operator Iress’s net profit fell 10.6% to $79.3 million in fiscal 2025, from a year ago. SiteMinder reported a net loss of $4.8 million, narrowing from $13.9 million a year earlier. ARN Media reported a net profit decline in 2025 to $47.5 million, down 23%. East Coast gas producer Amplitude Energy’s net profit jumped to $26.22 million in the six months ended December 31, up from $7.57 million a year earlier. Flight Centre’s underlying profit before tax was up 4% at $124.6 million. Mining giant Fortescue has posted a first-half net profit after tax of $US1.91 billion ($A2.71 billion), a 15% lift compared to the previous corresponding period. Healthcare products distributor Ebos Group reported statutory net profit after tax of $125 million for the six months to December 2025, representing a 13% increase from the prior corresponding period. Mortgage insurer Helia has posted a 6% rise in full-year net profit to $244.9 million, up from $231.5 million in the previous corresponding period. Tabcorp reported a 14.2% slide in first-half statutory profit to $21.7 million. DroneShield has reported a net profit of $3.5 million for FY25, up 367% on the prior year. Shoe retailer Accent Group’s net profit was $28.1 million, more than 40% lower on the prior corresponding period. Domino’s Pizza Enterprises net profit after tax for the six months ended December 31, 2025 was $40.9 million, compared with a loss of $22.2 million a year earlier. Silex Systems reported a net loss from ordinary activities of $17.9 million for the half-year, marginally lower than the $18 million loss in the prior period. EML Payments has reported a statutory net loss of $4 million for the half-year ended December 31, down from a $9.5 million profit in the first half of 2025. Insurance company Steadfast posted a net profit of $127 million for the half-year ended December 31, up from $106.4 million in the previous period. Centuria reported operating profit after tax of $54.6 million in the December half. WiseTech Global’s net profit fell 36% to $US68.1 million, down from a profit of $106.4 million in the same period a year earlier. Helloworld Travel reported a first half underlying EBITDA of $30.5 million, up 12.1% on the prior period. Woolworths net profit after tax has fallen 49.4% to $485 million compared to the previous corresponding period due to the impact of a Federal Court judgment that found the supermarket giant had underpaid salaried managers.
And that’s it for this week.
And next week, I’ll be talking to the Co-CEO of Hub Australia, Rebekah Murphy about the challenges for women leaders. This will coincide with International Women’s Day.
And I’ll be talking to AMP Capital chief economist Shane Oliver about the profit reporting season.
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