Aussies will soon have more money in their pockets – it’s time for brands to react
On Tuesday night, Labor's stage 3 tax cuts passed the Senate unamended, after previously passing the House of Representatives. Mumbrella's Lauren McNamara looks at how brands and marketers should be reacting to the overhaul.
Labor’s proposed stage 3 tax cuts are set to become law on July 1, 2024, after passing the House of Representatives and, on Tuesday night, passing the Senate. The changes aim to bolster lower to middle-income owners, putting more money in the pockets of average Australians – but what does this mean for brands and marketers?
While the tax cuts will not solve the cost-of-living crisis, Prime Minister Anthony Albanese hopes it will ease the minds of Australians and alleviate the current cost-of-living pressures. Average Australians are struggling to pay for groceries, heat in the winter and basic everyday essentials, so ultimately, the Prime Minister says he just wants to provide some form of financial relief to his people.
Anthony Albanese
A Pollinate study from October last year found that cost-of-living is the “worst aspect” of Aussie life – according to 63% of their survey respondents. The general anxiety around the cost-of-living isn’t surprising – as the study found financial stability to be the key factor in defining success, with 37% selecting this as the top marker. It’s worth noting other factors included health and wellbeing, and life balance – all of which is affected by how financially stable a person is.
Price gouging from Australia’s supermarket duopoly has been one of the largest factors contributing to the crisis. Coles and Woolies are set to face a Senate inquiry into the issue as the supermarkets both reported profits of over $1 billion last year (no surprise when they charge $13.90 for a 1kg home brand block of tasty cheese).
The inquiry will examine the costs and revenue of both chains, as well as their market power – which Greens Economic Justice Spokesperson, Senator Nick McKim, who is among those leading the inquiry, said the duopoly have too much of. It would be the third inquiry examining supermarket pricing, as there are currently two others still active in the Federal Parliament – the Cost of Living inquiry, which is not due to report until May 31, 2024 and and an inquiry into promoting economic dynamism, competition, and business formation.
While the cost-of-living crisis is not stopping any time soon, the stage 3 tax cuts will offer eight in nine Aussies more spending money – giving brands and marketers the opportunity to capitalise on building brand loyalty with current customers, as well as engage new audiences ahead of July 1.
How does your salary measure up? Source: Financial Review, The Tax Institute
What consumers look at and choose to buy will change, so how marketers spread their messages to encourage people to buy with them will also need to change.
Businesses are constantly looking for ways to improve their customer experiences as Aussies expect nothing less than ease, convenience and protection when interacting with brands online. So, the key is to offer a seamless shopping experience – the easier it is for them, the more likely they are to engage with you.
Protection
A big part of the customer experience is ensuring your customer’s security – particularly online – in an era of constant cyber attacks and data breaches. Consumers have never been more careful about who they share their information online with, and in what capacity, and earning brand trust is getting more challenging day by day.
Security is a non-negotiable, so brands that are able to prove protection of their customers, will likely see more engagement come July 1.
Personalisation
Personalisation is another huge factor – one talked about often – in increasing brand engagement and loyalty.
An Adobe report from late-2022 found that almost two-thirds (64%) of Aussies expect a personalised experience, while over half (51%) want real-time offers relevant to them. 62% of the survey respondents said they have changed their favourite brands as their tastes and financial situation has changed – and we can expect this to happen again later this year.
So, it’d be stupid not to personalise your marketing, right? The majority of Aussies want it, they want to feel seen and appreciated by the brands they engage with, so why wouldn’t you?
Pick a side
Every major PR prediction for 2024 has said brands may need to “pick a side” in politics and cultural movements to help consumers seeking an alignment of values. In turn, it’s predicted that this will increase audiences and strengthen brand loyalty, meaning more money spent with you.
With 40 countries hitting the polling booths this year, and historic moments happening around the world, brands should be leaning into people’s anger, passion and concerns and align themselves.
While some may see alignment as risky and dangerous, the flip side argues its about delivering for your customers, employees and stakeholders.
Plain and simple
The biggest thing marketers need to ensure ahead of July 1 is brand authenticity and transparency. All the above points fall under this umbrella theme that will ultimately be the focus of consumers looking to spend money.
Brand story telling is a key asset to connect with customers – both current and new – and differentiate your brand from others. But, it must be done with an authentic tone, otherwise it could be perceived as disingenuous – think of the issues around brands showcasing their environmental efforts, only to be called out for greenwashing, or those who get involved with the Sydney Gay and Lesbian Mardi Gras, only to be called out for rainbow-washing.
If you can prove that your brand is genuine, the customers will come rolling through the door.
Lauren McNamara is a journalist at Mumbrella.
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Lauren McNamara is a journalist at Mumbrella, covering the creative and PR beat. She joined in November 2022 as editorial assistant, after completing a Bachelor of Communications (Journalism) at UTS.
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