There was a surprise drop in unemployment in December to 4.1%, the number of jobs available increased and household spending grew.
However, these elements have also contributed to persistently increasing inflation. In a higher-than-expected result, CPI rose 3.8% in the 12 months to December, up on the November figure and exceeding forecasts by economists and the RBA.
Many commentators are now predicting at least two, and perhaps-even three, interest rate rises this year.
The Aussie dollar remains strong, finishing the month at US$0.70. It’s up 11.4% since US President Trump’s inauguration while the US dollar has suffered, falling 11.2% during the same period.
The S&P/ASX 200 climbed 1.8% in January, reaching 8,869 come month’s end, but there’s still ground to be made up to reach last October’s peak.
The Westpac–Melbourne Institute Consumer Sentiment Index slipped 1.7% lower to 92.9 in January from 94.5 in December.
Market movements and review video – February 2026
Stay up to date with what’s happened in the Australian economy and markets over the past month.
2026 kicked off with some encouraging signs but comes with a sting in the tail as global uncertainty continues to shake things up.
There was a surprise drop in unemployment to 4.1%, the number of jobs available increased, and household spending grew.
These elements have also contributed to persistently increasing inflation and predictions of two or three interest rate rises this year.
The S&P/ASX 200 climbed 1.8% in January, but there’s still ground to be made up to reach last October’s peak.
Global markets showed volatility due to geopolitical threats including the Trump administration’s rhetoric and actions on Iran, Venezuela and Greenland.
Click the video below to view our update.
Please get in touch if you’d like assistance with your personal financial situation.
Five money tasks to start the new year
Getting on top of your finances is one of the most common new year’s resolutions. But sticking to them can be hard.
If you want to get your finances unstuck, here’s five money tasks you can tick off during your summer down time, that will help set you up for success this year.
Check your credit card’s working for you
Australians owe around $33 billion on credit cards with $18 billion of that money accruing interest. At an average credit card interest rate of 18%, it’s an expensive habit.
If you pay your credit card off every month then the interest rate doesn’t matter (because you’re not being charged interest). But if you carry a debt from month to month, it’s worth comparing credit cards and choosing one that works best for you.
Also check these tips on credit card balance transfers. And try the credit card calculator to see how quickly you could pay off your debt.
Use this credit card calculator
Give your health insurance a health check
It’s a great idea to review your private health insurance periodically as your life changes, to make sure it covers the things you’re most likely to need.
With more than 30 insurers offering multiples of products though, it’s a daunting task.
Fortunately you can compare all private health insurers and policies on the Australian Government’s PrivateHealth.gov.au website. That way, you can make a shortlist of options that could be right for you.
Here are some tips on what to look for.
Review your mortgage
Home loans can be a set and forget product – but there can be an interest rate difference of more than 2% in variable home loan rates on the market. That could make a big difference to the cost.
Here are some tips on switching home loans. And use this mortgage calculator to compare different rates and see how much you might be able to save.
Find your super
There’s almost $19 billion in lost and ATO-held super, waiting for rightful owners to find it. If some of that belongs to you then it’s better off in your super account, building for your retirement!
Find out more about lost super and do a lost super search on the ATO website.
Do a written budget
Writing down goals apparently makes them more likely to happen. So having a written budget can be a good way to help you save this year.
Here are plenty of tips for saving money (from checking your utilities bills to choosing a new phone plan). And the Budget planner makes it easy work out where your money is going – and what you can afford.
Don’t hesitate to ask for help
If 2026 hasn’t started with your best foot forward, there’s help available, so don’t hesitate to ask.
Source:
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/media-centre/five-money-tasks-to-start-the-new-year
Important note: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Past performance is not a reliable guide to future returns.
Important
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.
Children’s share investments
Quoting a tax file number
When you buy shares, you have a choice whether you quote a tax file number (TFN).
If you quote a TFN, you pay taxes on the dividends when you lodge the tax return. If the shareholder is the:
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child, quote the child’s TFN
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parent, as trustee for the child, and
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no formal trust exists, quote the parent’s TFN
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there is a formal trust, quote the trust’s TFN.
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A child can apply for a tax file number (TFN) – there is no minimum age. Children are not exempt from quoting a TFN.
If you don’t quote a TFN, pay as you go (PAYG) tax will be withheld at 47% from the unfranked amount of your dividend income.
Declaring dividends
Whoever rightfully owns and controls the shares declares the dividends and any net capital loss or gain from the sale of shares. You need to consider who:
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provides the money for the shares
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makes share decisions
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spends the dividend income.
If there are large amounts of money or a regular turnover, you might need to examine the ownership of the shares further, including finding more information to work out who should declare the dividends.
If parents or grandparents hold shares for a child, they are treated as the owners of the shares, unless the child is the genuine beneficial owner. If the child is the beneficial owner, you should declare the dividends in the child’s tax return.
Income from shares is treated differently to income from interest (for example, from Children’s savings accounts).
Example: parent uses dividends
Peter withdraws $3,000 from his own bank account to buy shares in the name of his daughter Georgia. Peter quotes his TFN when he buys the shares.
He deposits the dividend of $200 into his own bank account and uses it for his own personal expenses.
Peter declares the $200 in his tax return. When he sells the shares, he will also declare any capital gain or loss.
Example: dividends reinvested for child
Sara buys shares for her child, Michael, with money given to him for his birthday. Sara holds the shares for the benefit of Michael with the share broker until he turns 18. No formal trust deed has been created. Sara quotes Michael’s TFN when she buys the shares.
All dividends have been reinvested through a dividend reinvestment plan.
The dividends are declared in Michael’s tax returns.
When Michael turns 18 years old, the shares will be transferred to him through an off-market transfer. As he remains the beneficial owner of the shares, there will be no capital gain or loss for either Sara or Michael on the transfer.
Lodging a tax return
If your child owns shares and earns more than $416, you must lodge a tax return on their behalf.
If your child earns $416 or less, you may need to either:
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lodge a tax return on their behalf if too much PAYG tax was withheld
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claim a refund for franking credit by lodging a tax return or completing an Application for refund of franking credit.
In some circumstances children’s income is taxed at the highest marginal rate. For more information about tax rates for people under 18, see Your income if you are under 18 years old.
Example: declaring dividends in child’s tax return
Simon withdraws $5,000 from his bank account to buy shares in the name of his son Jordan. He quotes Jordan’s TFN when he buys the shares.
Simon makes all the decisions about those shares as Jordan is only 3 years old.
All dividend income and any profit from the sale of those shares are deposited into a bank account in Jordan’s name with Simon as trustee.
The dividends and capital gains are declared in Jordan’s tax return.
Example: child with part-time job
Jenny buys shares on behalf of her daughter, Talia, with money saved from Talia’s part-time job, plus money received for Talia’s birthday. Talia and Jenny decide not to quote Talia’s TFN.
Dividends of $500 are deposited in Talia’s bank account.
Talia declares the $500 in her tax return. She will need to make an adjustment in her tax return so that the proportion of the dividend that relates to shares acquired with her employment income is taxed at normal tax rates. The proportion that relates to shares acquired with the gift money is taxed at a higher rate. When those shares are sold, any capital gain or loss from the sale will belong to Talia.
Contact us if you have any questions.
Source: ato.gov.au
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/individuals-and-families/investments-and-assets/shares-funds-and-trusts/investing-in-shares/children-s-share-investments
Important:
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.
