Latest / What the Flux / Google & Meta move $11 billion off Australian shores | Amazon’s Aussie sales hit record high | Adidas' unlaunched shoes break records

Transcript

Google & Meta move $11 billion off Australian shores | Amazon’s Aussie sales hit record high | Adidas' unlaunched shoes break records · What the Flux

• 0:05
  Speaker 1: This is what the flux.
• 0:06
  Speaker 2: I'm Brett and I'm justin and it's Wednesday, the twenty
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  Speaker 2: ninth of April.
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  Speaker 3: Does it wait so much for global wars impacting travel
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  Speaker 3: in Australia.
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  Speaker 1: Sydney Airport has seen a record number.
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  Speaker 3: Of international passengers pass through in the first three months
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  Speaker 3: of the year. We're talking a jump of almost six
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  Speaker 3: percent compared to the same quarter a year ago. Biggest
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  Speaker 3: growth roots I'm talking China and Malaysia.
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  Speaker 2: Interesting Flux. As we get to the end of the month,
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  Speaker 2: it's the perfect times take stock of how you're spending
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  Speaker 2: and your saving's been going for the month of April.
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  Speaker 2: If you want to know if you spend more, if
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  Speaker 2: you save more, and where your money's all going. The
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  Speaker 2: Flux app categorizes all your transactions in the one place
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  Speaker 2: in under thirty seconds, so you can see where all
• 0:40
  Speaker 2: your money's going to Make sure to download the Flux
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  Speaker 2: app and check out our budgetings or.
• 0:44
  Speaker 3: Three splendid stories today Jazzy Boy, let's do it for
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  Speaker 3: our first. Google and Meta have transferred almost eleven billion
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  Speaker 3: dollars of Australian revenue to offshore entities over the past
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  Speaker 3: year to reduce their tax locally.
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  Speaker 2: Like watching a magic show where all the money disappears.
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  Speaker 2: What is going on here?
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  Speaker 1: So jazy boy.
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  Speaker 3: Between Google and Meta, they pretty much own Australia's and
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  Speaker 3: the world's Internet based advertising industry.
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  Speaker 2: We're talking Google Search and YouTube, Gmail, Google Maps, Facebook, Instagram.
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  Speaker 3: Together they pull in hundreds of billions of dollars globally,
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  Speaker 3: and Meta alone is worth over one point seven trillion
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  Speaker 3: US dollars.
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  Speaker 2: Roughly three times the entire Australian federal budget.
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  Speaker 3: So how much revenue did these two behemoths bring in
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  Speaker 3: last year in Australia.
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  Speaker 2: It's a good question, be man, and genuinely hard to
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  Speaker 2: answer because both companies are very good at moving money around.
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  Speaker 1: Yep.
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  Speaker 3: They often book their Australian revenue in other countries like Ireland,
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  Speaker 3: or they book their.
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  Speaker 2: Revenue in Australia but then transfer it back to other
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  Speaker 2: countries to reduce their local tax bill.
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  Speaker 3: Despite billions flowing through Australia, the ATO got just one
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  Speaker 3: hundred and forty two million bucks in tax between both companies.
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  Speaker 2: And this all comes down to something called transfer pricing.
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  Speaker 1: Yes, so what is the key learning here?
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  Speaker 2: Transfer pricing is when companies within the same corporate group
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  Speaker 2: charge each other for goods or services.
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  Speaker 3: And transfer pricing allows multinational companies to move profit to
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  Speaker 3: wherever the tax rate is most friendly.
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  Speaker 2: And be man When an ossie business buys a Facebook ad,
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  Speaker 2: that sale often isn't booked in Australia at all.
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  Speaker 3: Now the Australian entity facilitates it, but the actual revenue.
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  Speaker 1: Is booked in Ireland.
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  Speaker 2: And why Island well because the corporate tax rate in
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  Speaker 2: Ireland is twelve and a half percent compared to thirty
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  Speaker 2: percent over here. So the Australian Office gets a thin
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  Speaker 2: little commission and the big profitable bit that stays off shore.
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  Speaker 3: And Jase Boy back in twenty twenty two, the Australian
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  Speaker 3: Government estimated that Meta's real Australian revenue was around four
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  Speaker 3: point seven billion dollars.
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  Speaker 2: But they only paid forty eight million dollars in income
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  Speaker 2: tax in Australia.
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  Speaker 3: So governments are trying hard to curb this tax architecture.
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  Speaker 2: But so far it's a bit of a catamouse game
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  Speaker 2: between the multinationals and the Australian government, and the multinationals
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  Speaker 2: seem to be winning. For our second story, Amazon's cart
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  Speaker 2: is overflowing with cash, pulling in nearly four point eight
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  Speaker 2: billion dollars from Ossie's in twenty twenty five, as local
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  Speaker 2: spending hits a record hige. Amazon really knows how to
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  Speaker 2: wake up the dormant online shopping addiction in all of us.
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  Speaker 2: Tell me more so the Zon's obviously the Seattle based
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  Speaker 2: retail giant. It sells everything.
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  Speaker 3: Luxury mattresses to two and a half kilo tubs as
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  Speaker 3: thank you Mite, barbecue tongs designed specifically for a bunting.
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  Speaker 1: Snag and a man.
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  Speaker 2: Amazon's marketplace sales grew twenty percent last year, hitting over
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  Speaker 2: two point three billion dollars.
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  Speaker 1: But here's where it gets interesting.
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  Speaker 3: That actually only accounts for around half Amazon's total revenue
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  Speaker 3: in Australia.
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  Speaker 2: Yeah, it's making more from advertising, subscriptions and charging fees
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  Speaker 2: to merchants rather than actually selling stuff online.
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  Speaker 3: In fact, fees from third party merchants selling their products
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  Speaker 3: on Amazon made them over one point one billion dollars.
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  Speaker 2: And be man with the convenience of Amazon's next day delivery,
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  Speaker 2: it's no surprise that Amazon's taking the mantle as Australia's
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  Speaker 2: top online shopping platform.
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  Speaker 1: So what is the key learning here?
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  Speaker 2: Amazon is selling convenience and Ossie shoppers are clearly buying in.
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  Speaker 3: Yet this one joysy Boy eight times out of ten.
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  Speaker 3: Amazon was not the cheapest retailer for a particular item,
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  Speaker 3: but Ozzie's bought it there anyway because they could get
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  Speaker 3: it faster. According to e Commoce platform ship It, and
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  Speaker 3: it turns out Australians are not alone. Consumers globally are
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  Speaker 3: increasingly willing to pay a premium for getting what they
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  Speaker 3: want when they want it.
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  Speaker 2: It will pay up to five percent more on average
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  Speaker 2: just for the convenience.
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  Speaker 3: Which is exactly why Amazon invested thirty five billion dollars
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  Speaker 3: into Australian operations so.
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  Speaker 2: It can deliver goods faster, but most importantly, so it
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  Speaker 2: can get a cut out of everything while they're at.
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  Speaker 3: It, because the faster they deliver, the more customers spend,
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  Speaker 3: and the more merchants pay to reach those customers. For
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  Speaker 3: our third and final story, edit US's shares are on
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  Speaker 3: a runners high after Sebastian Sahwah ran the first ever
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  Speaker 3: sub two hour marathon in their trainers.
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  Speaker 2: This one took them years to make, so I guess
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  Speaker 2: it was truly a marathon for edit us as well.
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  Speaker 2: So tell me more so.
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  Speaker 3: Added Us is the German sports where giants started in
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  Speaker 3: nineteen twenty four.
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  Speaker 2: It's football shoes were worn by the German national football
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  Speaker 2: team when they won the World Cup in nineteen fifty four,
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  Speaker 2: which made added Us a household name.
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  Speaker 3: And of course now it's just as famous for its streetwear.
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  Speaker 2: You do love your samba shoes, be man?
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  Speaker 1: I do?
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  Speaker 3: But I take you to this year's a London Marathon,
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  Speaker 3: Josey boy, where Kenya's Sebastian Sahwe made history finishing the
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  Speaker 3: marathon in under two.
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  Speaker 2: Hours, all while wearing added Us as new runners called
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  Speaker 2: the ady zero adios pro Evo threes.
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  Speaker 3: Even held this trainers up with the sub two written
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  Speaker 3: on them. Talk about product placements and Jose well, he
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  Speaker 3: wasn't the only one sporting added Our shoes at the
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  Speaker 3: finish line now they were also warmed by the runner
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  Speaker 3: who finished second in the London Marathon and the female
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  Speaker 3: winner of the London Marathon and the man. This is
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  Speaker 3: pretty good timing for audit Us because these shoes are
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  Speaker 3: launching this week and this helps boost added ours shares
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  Speaker 3: by two percent earlier this week and put outed Us
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  Speaker 3: in the headlines around the world.
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  Speaker 2: So what is the key learning here?
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  Speaker 3: Sometimes the best marketing is making a product so good
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  Speaker 3: it becomes the news itself.
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  Speaker 2: Aded Us spent three years of research and tests affecting
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  Speaker 2: what they called the super shoe to try and break
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  Speaker 2: the marathon record.
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  Speaker 1: And break the record they did well.
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  Speaker 2: Sway did the running, but added us, the shoes also
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  Speaker 2: played a.
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  Speaker 3: Part, and being the shoe on the foot of the
• 5:41
  Speaker 3: man who just rewrote the history books on the stage
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  Speaker 3: of the London Marathon is a pretty big deal.
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  Speaker 2: We're talking a marathon with fifty nine thousand runners and
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  Speaker 2: millions watching globally.
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  Speaker 3: So that exposure isn't just a marketing campaign, it's a
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  Speaker 3: marketing triumph.
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  Speaker 2: And the man in person events like marathons can become
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  Speaker 2: marketing machines for brands.
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  Speaker 3: In fact, online search demand for the added shoe increased
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  Speaker 3: almost three hundred and fifty percent after the.
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  Speaker 1: A marathon win.
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  Speaker 2: So added Us just need to ensure that it can
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  Speaker 2: fulfill the expected increase in demand for these SuperShoes when
• 6:09
  Speaker 2: they're released. Foxlam. At the end of every month, if
• 6:12
  Speaker 2: you want to check how much money you've saved, how
• 6:14
  Speaker 2: much money you've spent, it can take hours if you
• 6:16
  Speaker 2: do it on an Xcel spreadsheet, but in the Flux app,
• 6:18
  Speaker 2: you can connect you accounts in under thirty seconds and
• 6:20
  Speaker 2: see it all in the one place, categorize your spending,
• 6:22
  Speaker 2: identify subscriptions, and helps you plan for the month ahead.
• 6:25
  Speaker 2: To make sure to download the Flux app and check
• 6:26
  Speaker 2: out the budget
• 6:27
  Speaker 1: Or thanks for listening and we'll see you on Friday.