Oil Prices Spike, $1,000 Tax Deduction Coming, and AI Transforms Jobs: Your Weekly Money Wrap

This week had it all: continued volatility on global markets threatening recent falls in petrol prices, a new tax deduction to lower taxable income, and AI reshaping the job landscape.

Oil Prices Jump, Threatening Fall in Fuel Costs

Oil prices surged this week as the war in the Middle East rattled global markets, with concerns over access to the Strait of Hormuz driving sharp swings. By Friday, Brent crude climbed to around US$105 ($160) a barrel — a jump of more than 15% across the week. This threatens a recent fall in petrol prices. The ACCC reported that across Australia's five largest capitals, the average unleaded petrol price was around 65 cents cheaper than on March 31, while diesel was 45.5 cents lower, though most of that occurred in the past week. The conflict also prompted a fall in global markets ahead of important tech earnings.

A $1,000 Tax Deduction Is Coming

The federal government unveiled draft legislation for its $1,000 "instant" tax deduction announced during last year's election campaign. It will allow more than six million workers to reduce their taxable income by $1,000 — without receipts. Designed to simplify tax time, especially for those who don't usually claim work-related expenses, the average saving is expected to be about $205, but it won't flow through until the second half of next year.

AI Is Reshaping Jobs and Big Money Is Flowing In

Demand for AI skills is accelerating, with job ads mentioning AI keywords on SEEK jumping 75% over the past year. While AI-related job ads still make up a small share of total listings, the direction is clear: workers who build digital and AI capabilities are likely to be better positioned as the labour market evolves. Global tech giants are doubling down on Australia: Microsoft announced a $25 billion investment in data centres and AI infrastructure, alongside plans to help train three million Australians in AI skills by 2028, following a $20 billion commitment from Amazon earlier this year.

Young Australians Turning to AI, Influencers for Financial Advice

New data suggests younger Australians are increasingly relying on online sources for financial information, including AI tools, social media, and 'finfluencers'. The Australian Securities and Investment Commission reported that around 64% of Gen Z surveyed trust financial information from AI platforms, while more than half look to social media or influencers. Regulators are concerned about reliability and have stepped up enforcement. For consumers, it's a reminder to be cautious about where financial information comes from, especially for investment decisions or major life choices.