Westpac Wire

Sydney and Melbourne’s housing markets are cooling, auction clearances are at Covid levels and slipping and many households feel tighter than they did a year ago. Australia’s economy grew by only 0.3 per cent in the March quarter, down from late last year. But under the hood, the picture is split. Households are pulling back, while business investment is picking up pace. Where you live is starting to shape which side of the coin you feel most. A major build-out is now under way.

Australia’s inflation rate eased to 4.0 per cent in the year to May 2026, down from 4.2 per cent in April, broadly in line with expectations that inflation is settling around the 4 per cent mark. The latest figures from the Australian Bureau of Statistics (ABS) reinforce a defining theme this year - the descent is proving more delicate than the climb. Price pressures are easing, though not evenly.

A text about your tax return. A too-good investment opportunity. A call from your kid asking for a quick transfer. None of it is random. Westpac Head of Scam and Fraud Prevention, Ben Young, puts it bluntly, “there is a scam for everyone.” Speaking to host Sylvia Jeffreys of The Pay Off podcast, Young says scams follow behaviour, weaponising what feels familiar. “Scammers are pretty seasonal. They like to pick up whatever’s flavour of the month,” Young explains.

Last week, the federal government announced plans to expand access to small business capital gains tax (CGT) concessions by lifting the turnover threshold from $2 million to $10 million. Prime Minister Anthony Albanese said the change means 98 per cent of Australian small businesses (~2.7 million SMEs) will be eligible to access the existing 50 per cent CGT discount.

Dear Customer, We live in a constantly changing world and right now we’re seeing ongoing global uncertainty, a complex domestic setting as well as cost of living challenges. We’re here for you We know some of you are feeling pressure. We want to help you through the current economic environment. If you are feeling stretched or worried at all, please reach out to us. It’s never too early to ask for help and there’s a range of things we can do to support you.

The Reserve Bank of Australia has left the cash rate unchanged at 4.35 per cent at its June meeting, in line with expectations. What stood out was the tone - the federal bank made it clear that rate hikes remain a live option. Luci Ellis, Westpac Chief Economist, says the RBA went further than usual to underline that point.

Consumer confidence has fallen again in June, with households reporting increased pressure on their finances and growing concern about the year ahead. The Westpac–Melbourne Institute Consumer Sentiment Index dropped 2.9 per cent to 80.6 in June, down from 83 in May, leaving the measure among the weakest readings in its nearly 50-year history.

Westpac CEO Anthony Miller has kicked off a new partnership with The Pay Off podcast, opening up to host Sylvia Jeffreys about his earliest lessons in money management. Miller is the eldest of six children and credits his small-business owning parents for instilling a work ethic from an early age. “Watching mum and dad be so organised and so disciplined… those habits stayed with me.” His parents operate two community swimming pools in Brisbane. “I think it’s [their] calling.

A key benefit of intergenerational businesses is adopting a multi decade mindset, rather than quarter-to-quarter decisions. Viewing a downturn as a potential opportunity has been a strength for Tree Top Challenge. David Taylor, along with his brother Stephen, runs the adventure-tourism experience started by their parents Julie and Max.

There’s a bank ledger in Westpac’s archives with page after page of neat copper-plate records of small-town deposits and withdrawals, until you get to the page for February 8, 1879, where there is a large tea stain. Kim Eberhard, Westpac’s head of historical services, says the momentary lapse is understandable.