October News Highlights
Perth Rental Squeeze
Perth suburbs are experiencing a dramatic drop in rental vacancy rates, with landlords preparing for a successful 2019 whilst tenants take a hit to their pockets. With a 3.9 per cent drop in vacancies, the rental market captures the healthiest levels since March 2014’s tail end of its mining boom.
Median house rentals rose by $10 a week – the first increase in more than four years. Positive signs in the market are showcased through 132 suburbs claiming increases in the number of properties listed, with Jolimont recording a recent 150 per cent surge.
The dwindling vacancy opportunities are an accurate forecast for the entire rental market, as landlords are promised less time on the market and increased rental rates in their pockets. The increase follows alongside the mining sector, who show off their recovery with new iron ore projects through BHP, Rio Tinto and Fortescue Metals.
No State or Territory worse off for GST
The Federal Government is in the process of securing new GST changes whilst delivering West Australia with $7 billion. These changes come with a promise secured through legislation – that no State or Territory will be worse off from these alterations.
Prime Minister Scott Morrison stated West Australians would reap the most benefits. The government is on the cusp of fixing a problem that previously has not worked for WA, reported Mr Frydenberg.
With legislation leading the changes, the promise transforms into a guarantee that every part of the country will be protected under the GST changes, receiving positives from the current or new system until 2026-27.
WA Chamber of Commerce, Rick Newnham states the GST changes would provide a stable ground to finances while ensuring no one was worse off.
Mining Jobs hit record high
Western Australia’s mining sector continues to rise – as high levels of direct employment are recorded into the mining sector and the state becomes a global lithium powerhouse.
Reports showed 112,000 people were employed throughout mining sectors for the 2017-18 financial year. Employment is expected to rise even further with a $300 million expansion into lithium hydroxide in Kwinana, which began earlier this year.
Electric vehicles have opened an opportunity for Talison Lithium, who took advantage of this new market, increasing production costs by $2 billion and creating 400 jobs.
Mineral and petroleum sectors reported a sales increase of $10 billion since the previous year, recording the second highest financial sales year on record.