ASX to fall as new financial year brings major changes

·2-min read
The ASX board showing company price changes and a person removing $100 from a wallet.
The ASX is expected to fall this morning as the new financial year kicks off. (Source: Getty)

ASX: The local market is expected to fall at the open after the US market closed out its worst first half since 1970.

This comes after the Australian share market posted its worst monthly performance since the start of the pandemic, amid renewed concerns over rising interest rates and their impact on the global economy.

Wall Street: US stocks fell on Thursday, with the major averages logging steep declines for the month of June, second quarter and first half of 2022, as concerns over heightened inflation and the prospects of a recession weighed heavily on risk assets.

Crypto: The US is still working towards cryptocurrency regulation. The President’s Working Group on Financial Markets met in a closed door meeting overnight.

The group discussed oversight of stablecoins following the run on TerraUSD, which caused shockwaves in crypto markets in early May.

New year, new rules: Today is the first day of the new financial year, and that means a number of regulatory changes will come into effect.

Workers will see a boost to their superannuation contributions as the superannuation guarantee will rise from 10 to 10.5 per cent today. By 2025, the rate is proposed to reach 12 per cent.

Meanwhile, jobseekers will now need to satisfy a points system to qualify for their payment.

The “points-based activation system” will commence on July 4.

New year, new money: Victorians can bank $250 if they shop around for a better energy deal, as the state's default offer increases amid rising expenses and inflation.

From today, the one-off payment will be open to all Victorian households who compare their energy deal through the Victorian Energy Compare website under an expanded state government program

And 2.6 million Australians will benefit from a rise in the minimum wage that comes into effect today. This means Australia’s lowest-paid workers will get an extra $40 a week.

Property fall: The inevitable decline in house prices is underway and falls are expected to accelerate in coming months as rising interest rates take their toll.

On the market: A real estate agent has been picked to sell the multi-million-dollar mansion owned by missing Sydney fraudster Melissa Caddick.

The investment broker disappeared in November 2020, hours after the Australian Federal Police and Australian Securities and Investments Commission raided her Dover Heights home.

- With AAP

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