Mozo Money Moves: Unemployment rate jumps, rate cut buzz builds, ATO tax deadline looms, and business term deposit picks

Welcome to Mozo Money Moves, your weekly round-up of what’s moving money and shaping financial decisions. The Reserve Bank of Australia’s (RBA) cautious stance on interest rates remains the key focus for the market, but an unexpected jump in the unemployment rate this week has given rate cut expectations a new lease on life. We also cover a final warning from the ATO ahead of the October 31 tax deadline, plus the latest Mozo insights on home loans, superannuation, and locking in business term deposit rates.

Two million Aussies face late tax return penalties

The Australian Tax Office (ATO) has issued a serious final warning to more than two million Australians who are yet to lodge their income tax returns. With the 31 October submission deadline fast approaching, those who miss it could face penalties of up to $1,650.

The ATO is urging anyone who has delayed their return to act now to avoid financial punishment and stay compliant. This last-minute push underscores the importance of meeting the deadline for self-lodgers, with the maximum penalty representing a significant hit to many individual and household budgets.

CPA Australia offers three helpful tips for submitting your tax return:

1. Check your details – Don’t rely on last year’s deductions; review your pre-filled myGov info.

2. Get help if needed – Complex cases like rental or gig income may need a registered tax agent.

3. Beware of scams – Only trust official ATO messages; avoid suspicious email and text links.

Jobless rate jump boosts RBA rate cut bets

Expectations of an interest rate cut have grown after Australia’s unemployment rate unexpectedly rose to 4.5% in September, according to the Australian Bureau of Statistics’ (ABS) latest Labour Force data . The sharp increase has strengthened calls for the Reserve Bank to offer further rate relief to support the economy.

While the rise in unemployment points to some weakness in the labour market, the participation rate – which measures the share of working-age Australians either employed or actively seeking work – increased to 67%, remaining close to its record high.

As of 15 October, the ASX’s RBA Rate Tracker shows a 44% chance of a 25 basis point cut in the cash rate to 3.35% at the November meeting.

Among the Big Four banks, CommBank and ANZ foresee the next RBA cut in February 2026, NAB pushes it out to May 2026, while Westpac stands apart, projecting a cut in November 2025, followed by further reductions by March and June 2026.

Key factors adding uncertainty include the RBA’s caution over persistent inflation – as noted in recent minutes – which suggests any rate further reductions may be gradual, not hurried.

...but the greater risk may be a faltering economy

Inflation may still be keeping the RBA on edge, but the bigger danger could be that the nation’s growth engine may be stuttering. This week Wealth Within chief analyst Dale Gillham noted  that although the monthly inflation indicator has been ticking upward, the more pressing concern lies in slowing output, weak consumer spending and declining business activity.

These are all signs that the economy may be stalling.

Gillham warns that if the RBA waits too long to act, the risk of a deeper slowdown will only grow. He argues the central bank may consider cutting the cash rate sooner than later to stabilise momentum and restore confidence before the downturn gathers pace.

“The warning lights are flashing everywhere. The ANZ-Indeed Job Ads Index just plunged another 3.3% in September, now at its lowest since early 2024. That’s three straight months of job postings gone. Businesses aren’t hiring, they’re freezing, waiting and watching. The jobs engine that kept this economy afloat through the inflation storm is now spluttering,” he said.

“Consumers have already checked out, too. The Westpac-Melbourne Institute Consumer Sentiment Index crashed 3.5% to 92.1, the weakest in six months. Optimism is evaporating, and spending is drying up, and when households stop spending, the RBA stops sleeping.”

While inflation is an ongoing challenge, the more pressing concern may be that the economy is running out of steam, and that could prompt the RBA to ease policy again before Christmas.

Home loans with cashback, points and perks

While securing a low rate remains a top priority for mortgage holders, a growing number of lenders are competing on extras. Mozo’s analysis this week highlighted several standout home loan deals offering not just competitive rates but also attractive perks such as cashback bonuses and rewards points.

With interest rates trending lower, the gap between the best-priced loans has narrowed. That means additional benefits – such as cashback offers or thousands of frequent flyer points – may be the difference maker when choosing between similar products.

Assets over wages: young Aussies redefine success

Young Australians are reportedly rethinking what it means to get ahead, shifting focus from pay rises to building wealth through ownership. Nearly seven in ten Gen Z and millennial respondents believe owning assets like shares, ETFs and property is more important for financial success than climbing the career ladder, according to Stake’s 2025 Ambition Report.

This “assets over wages” mindset reflects a growing belief that wealth now depends more on what you own than what you earn. The report also found more than half of young Australians think inheritance plays a bigger role in getting ahead than effort alone.

Despite cost-of-living pressures, investing momentum remains strong. Around 73% of investors have added to their portfolios in the past six months, rising to 85% among 18-24 year olds. Two-thirds also held on to all their shares over the past year, suggesting a long-term approach to building wealth.

However, confidence remains a barrier. Nearly half of Australians still aren’t investing, often because they believe they lack the funds to start, even though many are saving regularly. Experts say this shows the biggest hurdle isn’t money itself, but mindset.

Leading brokers for trading ASX shares, by brokerage costs, on Mozo 

Spaceship super review

Mozo reviewed Spaceship Super this week – the fund that set out to make superannuation more engaging when it launched in 2017. Its pitch was simple: allow Australians to invest their retirement savings in innovative, global companies that align with their interests.

But Spaceship has grown since then, expanding from its original high-growth focus to a lineup of four different investment options. So, what does the fund look like today? In this review, we dig into the details of those investment options, their performance, and the fees.

Lock in competitive business term deposit rates

With global market uncertainty still a major concern for financial stability, Aussie businesses might consider term deposits as a way to secure guaranteed returns.

Short- to medium-term term deposits remain a low-risk way to earn steady interest on idle cash. Terms typically range from one month to five years, with flexible interest payment options to suit business cash flow needs.

Mozo’s latest analysis shows a range of strong business term deposit rates currently available, with three- and six-month terms offering up to 4.35% p.a., and one- to two-year terms reaching as high as 4.20% p.a. Even longer five-year terms can deliver up to 4.30% p.a., providing solid options across a variety of time frames.

With rates still strong but expected to ease as competition shifts, now could be an ideal time for businesses to lock in higher returns and add certainty to their financial plans.

Short term business term deposits – leading rates on Mozo