Your Annual 2023 Roundup

Here’s what happened in the world of finance this year 
December 2023

And just like that, 2023 is almost over! There have been plenty of positives throughout the year: 

• The COVID-19 Pandemic was finally delisted as a global health emergency by the World Health Organisation and restrictions were eased internationally.
• The Coronation of King Charles III took place on May 6, the first coronation in 70 years. 
• ‘Barbie’ became the biggest movie of the year, making over a billion dollars at the box office.
• Collingwood won the AFL Grand Final!

There have also been some lows:

• Numerous wars are still being waged.
• Several regional American banks collapsed, including Silicon Valley Bank.
• Collingwood won the AFL Grand Final.

Speaking of ups and downs, after rising a whopping 3% in 2022, the cash rate rose to 4.1% between February and July this year, with just one hold decision in April. The cash rate target then remained at 4.1% from July until October, before rates were hiked by another 25 basis points in November. Philip Lowe’s tenure as Governor of the Reserve Bank of Australia (RBA) came to an end after 7 years, and the Treasurer appointed Australia’s very first female Reserve Bank Governor, Michele Bullock, to take his place.

July proved an important month for homeowners. In addition to the cash rate staying on hold, CoreLogic’s national Home Value Index rose for the fourth month in a row, and the ABS reported a rise in the value of new housing loan commitments, pointing to an increase in borrower confidence.

As spring sprung, so did the housing market. CoreLogic continued to report rises in national housing values, contradicting predictions that house prices would decrease by 10% this year. (Guardian, 2023). Spring wasn’t all sunshine and rainbows, however, as many borrowers faced the so-called “mortgage cliff” and were hit with significantly higher home loan repayments when their fixed rate periods came to an end. Western Australia, Victoria, and New South Wales experienced big leadership shake-ups. In March this year, Labour leader Chris Minns won the NSW State election over then Premier, Dominic Perrottet. In September, the Minns Government pledged $224 million towards the ‘NSW Essential Housing Package’ to support social and affordable housing.

Meanwhile, after confidently winning the Victorian State election in 2022, Daniel Andrews resigned in September of this year, with Deputy Premier Jacinta Allan succeeding him on the 27th of September. Andrews’ resignation came just a week after he announced a plan to introduce a 7.5% levy on short-term rentals starting in 2025.

Mark McGowan resigned as WA Premier on the 8th of June and was succeeded by then Deputy Premier, Roger Cook. McGowan had faced mounting pressure to make changes to WA’s rental laws, as rent in the state reached new heights.

Artificial Intelligence became the big buzzword of 2023, with machine learning applications such as ChatGPT changing our approach to business, writing, art, and ethics. The mortgage lending industry is, of course, no stranger to AI, as new technologies and learning software continue to evolve to enhance the lending experience.

The Australian Government also expanded the eligibility criteria of the Home Guarantee Scheme this year, and Australian Prime Minister, Anthony Albanese, signalled he will do more to accelerate Australia’s transition to low emissions.

Preparing for the new year

There’s no denying that 2023 was a momentous year filled with new beginnings, notable endings and plenty of significant events. With the new year just around the corner, what better time to get in touch with one of our financial partners to assess your financial goals.

We at My Tax Accountant work with Brendon Harbert ([email protected]) for mortgage broking services and Joel Bullimore ([email protected]) for financial planning services. We recommend you seek relevant financial planning advice prior to making a relevant investment as our services are limited to providing tax advice.