China’s CEOs eye Australia for growth, green light for banking start-up, and more top news

The news Australian professionals are talking about now, curated by LinkedIn’s editors. Join the conversation in the comments below.

Chinese CEOs have big plans for Australia in 2019. Thanks to ongoing tensions with the United States, CEOs in the world’s second-largest economy (paywall) identified Australia as their primary overseas growth market, according to PwC’s annual global CEO survey. This is a big change from a year ago, when Australia didn’t even make the top ten. But it comes after a warning from the International Monetary Fund on a global economic slowdown, and news that China’s economy grew at its slowest pace in nearly 30 years in 2018.

The first full Australian banking license awarded to a digital start-up has been granted. Until it secured the full license from the Australian Prudential Regulation Authority, Volt Bank — like other so-called “neo banks” — could not accept deposits larger than $250,000. This also means it can now challenge traditional banks by offering savings and transactions accounts, term deposits and personal loans, as authorities seek to increase competition in the sector. Several more start-up banks have applied for unrestricted licenses.

Tax changes are likely for gig economy workers. Platforms such as AirBnB and Uber will be required to share user data with the Australian Taxation Office (paywall), according to The Australian. This will make filling out annual returns easier, but also ensure revenue earned through these platforms — estimated at $15B each year — is taxed. The gig economy is growing, and some young Australians would now prefer to work a number of part-time jobs rather than take a single ‘nine-to-five role’. Meanwhile, there are more than 100,000 AirBnB listings in Australia.

Australian regulators accepted gifts from industries they oversee. Fairfax Media reported that in 2017 investment bank Macquarie Group entertained ASIC staff at a Sydney bar while the bank was the subject of multiple investigations, and that in 2016 staff from the ACCC were dinner guests of Energy Australia before the prime minister asked the agency to run an inquiry into pricing and competition in the retail electricity industry. These agencies, as well as the banking regulator and the tax office keep gift and hospitality records but do not routinely publish them, according to the report.

It won’t be a good year to find jobs in some popular industries. The Banking Royal Commission and weaker house prices mean demand for workers will be subdued in the finance sector, while house prices will also put the brakes on hiring in construction, retail and real estate, according to The Sunsuper Australian Job Index. A range of Australian retailers have shut up shop in recent months, and there are fears of a continued slowdown in consumer demand thanks to lower house prices, especially if the Reserve Bank of Australia raises interest rates.

Idea of the Day: Part of being a good business leader involves making tough decisions when things aren’t working, says former Travelex CEO Anthony Wagerman.

“Good businesses need to have a very clear vision and set of goals to achieve, but also find a way of tempering… as the world changes so quickly.”

What's your take on today’s stories? Share your thoughts in the comments.

This article has been changed. Earlier: Australian research has suggested running shoes may need a design rethink.

— Ben Collins