Labor wins the 2025 federal election
The nation headed to the polls at the beginning of May, with the Australian Labor Party winning the 2025 federal election in a landslide result that saw Anthony Albanese become the first Prime Minister to secure consecutive terms in 21 years.
At the time of writing, Labor had secured more than 90 seats, exceeding both the number required to form a majority government (76 seats) and the number it held in its previous administration.
Housing affordability was a key focus during the election campaign for both sides of politics, with Labor pledging to lift its total commitments in housing to $33 billion.
These measures include expanding the Home Guarantee to all first home buyers, setting higher income caps and property price limits for the shared equity Help to Buy Scheme, and rolling out the first two rounds of the Housing Australia Future Fund.
In his victory speech, the Prime Minister said that the government would “govern for every Australian”, including “every Australian who deserves the security of a roof over their head or dreams of owning their own home”.
“Today, the Australian people have voted for Australian values: for fairness, aspiration and opportunity for all,” he said.
AMP Bank launches new 10-year IO loan
AMP Bank announced the launch of a 10-year interest-only (IO) home loan with no midterm reassessment for both owner-occupier and investors.
In what is believed to be a first from an Australian retail bank, the loan provides eligible borrowers (including self-employed borrowers, retirees, and those on the cusp of retirement who can meet the bank’s exit strategy policy) with the same loan and credit assessment for a full decade in a bid to offer “greater certainty and stability” and free up cash flow.
The non-major said the product had been developed to meet the needs of modern borrowers and Australia’s property market, noting the rise in young people ‘rent-vesting’ and borrowers still likely to be paying off a mortgage in retirement.
In an opinion piece written for The Adviser (see page 8), AMP CEO Alexis George said she believed the loan would provide a much-needed solution for older borrowers in particular.
“This loan won’t suit everyone, nor should it,” George said.
“But for the growing number of Australians entering retirement with mortgage debt, it provides a valuable option, one that reflects how real lives and real needs are changing.
“The financial services industry has a responsibility to evolve with its customers. Doing so thoughtfully and with the right safeguards is not about fuelling debt – it’s about helping Australians retire with greater financial confidence.”
RBA cuts cash rate below 4% for first time in 2 years
The Reserve Bank of Australia (RBA) cut the cash rate by 25 bps in May, with the second cut this calendar year seeing the cash rate target drop from 4.10 per cent to 3.85 per cent.
This most recent rate cut came off the back of encouraging inflation data for the March quarter, when the annual trimmed mean of inflation (one of the figures the RBA is most interested in when setting the cash rate) fell within the central bank’s 2–3 per cent target range.
In its Monetary Policy Statement, the central bank said that inflation has continued to moderate but also acknowledged some uncertainty in the forward outlook and that maintaining low and stable inflation was its priority.
The statement said: “The board will be attentive to the data and the evolving assessment of risks to guide its decisions. In doing so, it will pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market.
“The board is focused on its mandate to deliver price stability and full employment and will do what it considers necessary to achieve that outcome.”
The RBA’s next monetary policy meeting is due to take place on 7–8 July.
ANZ CEO outlines key lender priorities
The new CEO of ANZ, Nuno Matos, kicked off his tenure at the major lender in May, unveiling a range of priorities that he intends to spearhead, including investment in regional hubs and offering customers access to banking from their local Australia Post.
Matos, who officially took the reins from former CEO Shayne Elliott on 12 May, said the lender would “continue to invest in world-class products and services”.
He said: “We will also improve the way we serve customers in regional Australia, through investment in our regional hubs. “And we will play our role in industry efforts to ensure cash is available for Australians, no matter where you live.”
Matos said that ANZ would continue investing in customer security and planned to roll out new initiatives like the ANZ Digital Padlock, which is scheduled to launch midyear.
The program will let customers instantly “lock down” digital access to their accounts if they suspect they are being targeted by scammers.
Commenting on the cost of living, Matos said: “I’m also acutely aware [that] many in the community are finding the cost-of-living challenge hard. If you find yourself in a difficult financial situation, please reach out to our teams. We are here to help.
“Finally, I’m going to be spending the coming months listening to all our stakeholders, and I want to hear from you.”
