Nov 22: Cash mandate, Digital shopping trolleys, Updated cash rate call, Big banks face legal action, Property price growth

Crib Notes: Weekly Property and Finance Round-Up (Nov 22nd)

Hosted by Carl and Jo Violeta

00:00 Introduction to Crib Notes

00:31 Cash is Here to Stay

01:21 Smart Shopping Trolleys

02:52 NAB's Cash Rate Forecast Update

03:37 Legal Actions Against Big Banks

04:41 Australian Property Market Update

05:30 Conclusion and Sign Off

 

Digital Trolley Poll: https://www.instagram.com/p/DCk7XW1Sdm-/ National Debt Helpline https://ndh.org.au/

 

Episode Transcript

(00:04):
Hi, I'm Carl.
.999And I'm Jo.
It's Friday, November 22nd.
Here's what happened in property and finance this week. 6 00:00:12,51.203493534 --> 00:00:14,831.202493534 Digital payments rise, but cash is staying. 7 00:00:15,311.203493534 --> 00:00:19,101.203493534 Smart shopping trolleys are rolling out at Coles and Woolies. 8 00:00:19,531.203493534 --> 00:00:22,231.203493534 A major bank changes its cash rate call. 9 00:00:22,801.203493534 --> 00:00:24,681.203493534 Big banks face legal action. 10 00:00:25,1.203493534 --> 00:00:30,171.203493534 And annual property price growth is at its lowest since October 2023. 11 00:00:31,650.263839699 --> 00:00:37,280.263839699 Under new mandate, the Australian government will require businesses to accept cash for essential items. 12 00:00:37,280.263839699 --> 00:00:43,780.263839699 Right now, about 94 percent of businesses already accept cash and the government wants that to continue. 13 00:00:44,200.263839699 --> 00:00:50,30.263839699 The new rule will mostly target larger businesses with small businesses likely to get exemptions. 14 00:00:50,290.263839699 --> 00:00:53,992.544598219 Carl, do you still use cash? Jo, I've got to say I don't. 15 00:00:54,62.544598219 --> 00:00:57,932.544598219 I carry cash, but I often use the Apple Pay system. 16 00:00:57,945.462866583 --> 00:01:00,685.462866583 But for many Aussies, cash is still a big deal. 17 00:01:00,845.462866583 --> 00:01:01,625.412866583 1. 18 00:01:01,625.412866583 --> 00:01:06,337.080812921 5 million people use it for over 80 percent of their in person transactions. 19 00:01:06,353.405306676 --> 00:01:12,532.302880924 And let's not forget cash becomes essential during natural disasters or when digital systems go down. 20 00:01:12,672.302880924 --> 00:01:20,754.460650188 So where to from here Jo? The mandate kicks off on January 1st, 2026 with details to be announced in 2025. 21 00:01:21,121.608734915 --> 00:01:24,491.608734915 Big changes are coming to the way Aussies do their grocery shopping. 22 00:01:24,661.608734915 --> 00:01:29,171.608734915 Coles and Woolworths are introducing digital trolleys packed with new tech. 23 00:01:29,171.608734915 --> 00:01:35,831.608734915 Starting January 2025, Coles will launch AI powered trolleys at its Richmond Traders store in Melbourne. 24 00:01:35,831.608734915 --> 00:01:40,691.60873492 These trolleys have screens, sensors, scales, and even payment terminals. 25 00:01:40,725.95790124 --> 00:01:45,645.95790124 You'll be able to scan weigh and pay as you shop, skipping the checkout line altogether. 26 00:01:45,671.38738476 --> 00:01:47,886.38738476 They're designed to make shopping faster and easier. 27 00:01:50,558.28894432 --> 00:01:51,748.28894432 Yeah, that's right, Carl. 28 00:01:51,758.28894432 --> 00:01:54,298.28894432 Some experts are concerned about privacy. 29 00:01:54,598.28894432 --> 00:02:03,948.28894432 These trolleys collect data and track your movements while we are walking around the supermarket and they'll show personal offers on their screens. 30 00:02:04,328.28794432 --> 00:02:09,88.28794432 And some experts are saying this might tempt shoppers to spend more. 31 00:02:09,270.05965011 --> 00:02:11,710.05965011 Woolworths is also testing digital trolleys. 32 00:02:11,960.05965011 --> 00:02:15,380.05965011 In August, they started rolling them out in selected stores. 33 00:02:15,439.27928456 --> 00:02:18,484.86666342 They're planning to expand them across the country soon. 34 00:02:18,524.06879008 --> 00:02:25,984.06879008 So Carl, these trolleys at Woolies Have the ability to track where you go in store and suggest products based on your habits. 35 00:02:26,284.06779008 --> 00:02:30,94.06879008 The tech behind them can even gamify grocery shopping. 36 00:02:30,220.87614924 --> 00:02:36,742.09612953 While Woolworths hasn't activated these features yet, privacy and impulse buying remain big concerns. 37 00:02:36,950.42946287 --> 00:02:46,790.42946287 What do you think of Smart trolleys? Are they an innovative way to make shopping easier or a privacy and impulse buying nightmare? Have your say in the poll. 38 00:02:46,790.42946287 --> 00:02:49,40.42946287 We've got running on our Instagram account. 39 00:02:49,100.42946287 --> 00:02:51,500.42946287 I'll pop the link to that in the show notes. 40 00:02:52,143.54843785 --> 00:02:57,893.94593017 National Australia Bank has updated its forecast for when the Reserve Bank of Australia will cut the cash rate. 41 00:02:57,920.61259683 --> 00:03:05,457.2792635 Previously, National Australia Bank, or NAB, anticipated the Reserve Bank would reduce the cash rate in February next year. 42 00:03:05,487.2792635 --> 00:03:09,567.2782635 This prediction was in line with the other big four banks forecasts. 43 00:03:09,603.94593017 --> 00:03:19,33.94593017 Now, NAB economists expect the first rate cut to occur in May, citing a stronger than expected labour market as the reason for this adjustment. 44 00:03:19,93.94593017 --> 00:03:36,873.94493017 Jo, have the other major banks changed their forecasts? No, as of now, economists from ANZ, Westpac and Commonwealth Bank still predict a rate cut in February next year, and I know a lot of people with home loans will be holding their breath and hoping that that February rate cut does come. 45 00:03:37,630.61259683 --> 00:03:46,290.61159683 Speaking of National Australia Bank, the Australian Securities and Investments Commission, ASIC, is taking legal action against the bank. 46 00:03:46,323.94593017 --> 00:03:57,920.61259683 ASIC alleges that NAB and its subsidiary Advantage Financial Services failed to respond to 345 hardship applications within the legally required 21 day period. 47 00:03:57,960.61259683 --> 00:04:02,310.61259683 These alleged failures occurred between 2018 and 2023. 48 00:04:02,330.61259683 --> 00:04:08,120.61259683 NAB isn't the only bank to face legal action from ASIC over financial hardship issues. 49 00:04:08,137.67189881 --> 00:04:18,747.67189881 Last year ASIC initiated civil proceedings against Westpac for allegedly failing to process 229 hardship applications within the required time frame. 50 00:04:18,767.67189881 --> 00:04:23,321.00423215 If you're struggling to meet your home loan repayments, don't let this story put you off. 51 00:04:23,341.00523215 --> 00:04:25,751.00423215 You should always contact your bank for assistance. 52 00:04:25,774.33756548 --> 00:04:32,531.00323215 Another thing that you can do is speak to your mortgage broker for guidance and, they'll be able to put you in the right path. 53 00:04:32,531.00323215 --> 00:04:35,151.00323215 to try and resolve the issue that you're facing. 54 00:04:35,171.00323215 --> 00:04:38,754.33656548 I would also recommend that you contact the National Debt Helpline. 55 00:04:38,754.33656548 --> 00:04:40,714.33656548 We'll pop a link in the show notes. 56 00:04:41,164.33556548 --> 00:04:45,114.33456548 Now let's take a look at what's happening in the Australian property market. 57 00:04:45,164.43456548 --> 00:04:47,434.33456548 National home values grew by 0. 58 00:04:47,434.43456548 --> 00:04:53,34.43456548 9 percent over the three months to October, which is well below the April peak of 2. 59 00:04:53,44.43456548 --> 00:04:53,434.43456548 2%. 60 00:04:53,904.43356548 --> 00:05:01,404.43356548 Over the year to October, values were up 6%, the lowest annual growth since October 2023. 61 00:05:02,317.76789881 --> 00:05:12,664.43456548 Jo, what's going on in the capital cities? Well, it's a bit of a mixed bag, Carl, with half of the states and territories seeing growth and the other half seeing decreases in their property values. 62 00:05:12,747.76789881 --> 00:05:25,717.71639881 Canberra, Darwin, Hobart and Melbourne all saw a decrease in dwelling values during that three months to October period, while Perth, Adelaide, Brisbane and Sydney saw increases ranging from 0. 63 00:05:25,717.71639881 --> 00:05:27,557.76589881 1 percent for Sydney to 4. 64 00:05:27,717.76589881 --> 00:05:29,117.76689881 1 percent for Perth. 65 00:05:30,177.76589881 --> 00:05:31,717.76589881 And now you're up to speed. 66 00:05:31,767.76689881 --> 00:05:33,327.76589881 Thanks for listening to Crib Notes. 67 00:05:33,387.76689881 --> 00:05:35,217.76589881 We'll be back again next Friday.