Australia’s economy is showing clearer signs of cooling, with new labour market data indicating a rise in unemployment to 4.5 per cent in April, the highest level since late 2021.Nearly 19,000 jobs were lost during the month, with women and younger workers particularly affected.

While the overall labour market remains relatively stable, economists suggest the increase reflects the combined impact of higher interest rates, global economic uncertainty, and weaker consumer spending.Businesses are also becoming more cautious due to rising borrowing costs and ongoing inflation pressures.

As a result, markets expect the Reserve Bank of Australia to hold interest rates steady at its upcoming June meeting, although future decisions will depend heavily on upcoming inflation data due this week.

In parallel, debate continues around the federal budget’s proposed tax reforms, particularly changes affecting capital gains tax and wealth structures used in estate planning.

Testamentary discretionary trusts, which allow families to manage and distribute investment income after death, are under scrutiny due to proposals for a 30 per cent minimum tax.Critics argue this could significantly alter long-term wealth planning strategies for families.Small businesses and start-ups have also expressed concern that changes to capital gains tax rules could discourage innovation and investment.On the global investment front, attention is shifting towards the emerging space economy.

SpaceX’s financial disclosures highlighted both the scale and risk of the sector, with multi-billion-dollar losses despite strong revenues and a potential valuation in the trillions ahead of its expected market debut.

Analysts say the broader space industry is expanding beyond rockets into telecommunications, artificial intelligence, defence, and data infrastructure.

While some investors see major growth potential, others warn the sector remains highly speculative and uncertain, reflecting broader trends in high-risk technology investment.