Money & Banking

Australia’s largest super fund fined $27 million

Australia's largest superannuation fund has been charged a whopping $27 million for charging duplicate fees to tens of thousands of customers. AustralianSuper was first sued by the Australian Securities and Investments Commission (ASIC) in 2023. During the investigation, it was discovered that more than 48,000 members’ accounts were not merged in their best interests, allowing duplicate fees to eat in to the retirement savings of hard-working Aussies. About 90,000 AustralianSuper members were affected between July 2013 and March 2023, costing them $69 million. Both ASIC and AustralianSuper appeared in the Federal Court at Melbourne on Friday, where Justice Lisa Hespe handed down her decision. AustralianSuper were fined $27 million, and were also ordered to pay ASIC’s legal costs up to $500,000. “By failing to properly remediate that beneficiary, AustralianSuper did not exercise in relation to the interests of that beneficiary the same degree of skill, care and diligence as a prudent superannuation trustee would have exercised,” Justice Lisa Hespe ruled. AustralianSuper apologised to members when the lawsuit began, saying it regretted that its processes to identify and combine multiple accounts did not cover all instances of multiple member accounts. In a statement after the hearing, AustralianSuper chief executive Paul Schroder said they had taken steps to prevent similar mistakes. “We found this mistake, we reported it, we apologised to impacted members, we compensated them, and we’ve improved our processes to prevent this happening again,” he said. Image credits: Shutterstock

Money & Banking

How women will shoulder the burden of new care reforms

It’s time to put a ‘gender lens’ on the once-in-a-generation reforms to Australia’s aged care system. There are almost <a href="https://www.gen-agedcaredata.gov.au/topics/people-using-aged-care" target="_blank" rel="noopener">double</a> the number of women compared with men in permanent residential care. Women are also more likely to use home care services. And we do the bulk of unpaid caring for ageing parents and grandparents. In fact, almost 70% of women provide primary care, according to the <a href="https://www.carersnsw.org.au/uploads/main/Files/3.Resources/Policy-Research/Carers-NSW_2022_National_Carer_Survey-Report.pdf" target="_blank" rel="noopener">National Carer Survey</a>. Given these shocking statistics, why is the federal government reducing the quality of care, under its new Support at Home model? This affects women on both sides of the system: as unpaid carers and clients. It’s all to do with pricing. A 10% cap on care management fees will apply from July this year. This means home care service providers may not be able to continue to give older people, who are overwhelmingly women, the level of care they need. “The Aged Care Royal Commission told the sector loudly that Australians expect quality care. The Australian Government went so far to describe what that means in the 2024 Aged Care legislation, so the sector is aghast at the caps on care management, which is critical in supporting vulnerable older people to understand, know and access the support they need to age in place,” Your Side CEO, Danielle Ballantine, says. Capping care management results in the very specialist skills of a care manager being outsourced to family. Inevitably it’s women – especially the sandwich generation – who will shoulder this burden, while trying to hold down jobs and secure their financial future. My sister and I would have been lost without this support when we were caring for Dad in the home, while working full-time and raising our children. Many female carers are forced to cut back their hours of paid work – or leave employment altogether – reducing their earning capacity and financial security. This feeds into the gender pay and superannuation gaps: Women retire with around 25% <a href="https://www.hesta.com.au/stories/bridging-the-gap-for-women-and-super" target="_blank" rel="noopener">less</a> super than men, with many older single women living in extreme poverty. This is undoubtedly an unintended consequence. But it must form part of the federal government’s considerations. “The government is currently consulting with older people, consumer advocates and the sector, with more news on pricing yet to be announced,” Ms Ballantine says. We need women – unpaid carers, aged care workers and clients – to be at the centre of these conversations. Under the proposed changes, most of the services assisting people to be healthy, safe and independent in their later stages of life will be out of <a href="https://www.theweeklysource.com.au/home-care/cut-in-care-management-funding-threatens-high-quality-home-care-say-providers" target="_blank" rel="noopener">reach</a>. Based on the capacity to pay, some older people might not be able to afford a care worker to support them to have a shower. When unpaid carers step in, they often become burned out, increasing the risk of skin tears and falls. Without adequate care management oversight, some of these issues can become life threatening. Is this the way we should be treating older women, many of whom have spent their lives caring for others? Closer to home, is this the future we want for ourselves? Image credits: Shutterstock / Supplied Tracey Spicer AM is a multiple Walkley Award-winning journalist, author and passionate advocate for social responsibility issues. She is an Ambassador for the non-profit aged care provider Your Side.

Money & Banking

"Easter is cancelled": Coles and Woolies slammed over "insane" chocolate prices

The turn of the new year means supermarkets are never far away from gearing up for the next holiday. And, just like clockwork, novelty Easter chocolate items such as bunny-shaped treats and the humble egg are being placed on the shelves – some at surprisingly high prices. It appears Easter isn’t just a celebration of chocolate anymore; it's now a financial endurance test. Every year, families prepare to stock up on sweet treats for the annual egg hunt, but now it seems more like a game of "Spot the Cheapest Bunny" – a game with few winners. The cost of Easter treats has continued to climb steadily over the last few years, and early indications show no signs of any relief for shoppers this year. Customers at Coles and Woolworths have recently called Easter chocolate prices "a joke", and one Brisbane woman even suggested "Easter is cancelled" in her household now due to the exorbitant costs. Easter is cancelled? Imagine explaining that to the kids. "Sorry, Timmy, the Easter Bunny took out a mortgage on his chocolate factory and had to downsize. He left you this... single M&M. Enjoy." One shopper came across a Cadbury's 350g Easter egg priced at $20, while also being seemingly unimpressed by a bag of Coles brand eggs being priced at $9. Meanwhile, another woman complained online about the price of chocolate bunnies on display in Woolworths. At this rate, it won't be long before people start taking out short-term loans for a bag of Mini Eggs. Interest rates might be lower than the cocoa inflation rate. After sharing the supermarket finds online, Aussies have been calling the situation "insane" and many have simply encouraged others "just not to buy anything" Easter related. A bold strategy – but also an excellent way to avoid that annual sugar crash. Last year, a Lindt chocolate Easter egg was on Big W shelves for a whopping $120, with the retailer explaining the kilogram egg was a "limited edition" for "chocoholics" to indulge in. However, many Aussies believed it was a step too far. At $120 per egg, you’d expect it to come with a personal message from the Lindt chocolatier, a guided factory tour and possibly a small stake in Wonka's chocolate river. There are reasons why Easter-specific chocolates are more expensive than regular chocolate in stores, according to Gary Mortimer, a professor in retail marketing and consumer behaviour at the Queensland University of Technology. "We generally source cocoa out of West Africa and when you're sourcing such a product and constructing an egg or bunny shape for a very discrete time, maybe only two months, obviously the costs inflate," he told Yahoo News last year. So what you’re saying, professor, is that because the chocolate has been artistically molded into the shape of a bunny, it somehow becomes a luxury item? At this rate, next year we’ll see a Fabergé-inspired chocolate egg with a diamond-studded ribbon. Getting an Easter egg or bunny hollow is much more "complex" than the regular block of chocolate that we all know and love, while the mass distribution of the item is also logistically more difficult due to its shape. Protecting packaging and special machinery is also sometimes required for transport. But if this is the case, why not start a new trend? Flat Easter chocolate. No fancy molds, no structural risks, just a classic chocolate slab with "Happy Easter" written on it. Simple. Affordable. Delicious. Professor Mortimer pointed at general inflation playing a role in the growing cost of Easter chocolate, with things like electricity, water and transport costs going up for businesses, while cocoa prices have also been on the rise, hitting a record high this month. "Naturally this gets passed on to consumers," Mortimer said. Translation: "This is your problem now. Good luck." So, what’s the plan for Easter 2025? Do we raid the clearance aisle in May? Take up chocolate sculpting as a side hustle? Or perhaps, in the most radical move yet, we finally accept the age-old truth: it's the hunt that matters, not the chocolate. And if kids start complaining, we can always say, "Look, back in our day, we had to make do with carob." Images: TikTok

Money & Banking

Being carers costs women more than $500,000 over a lifetime, leaving them with less in retirement than men

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/myra-hamilton-8638">Myra Hamilton</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> By the time they retire, women typically have about <a href="https://link.springer.com/book/10.1007/978-981-97-5461-8">one third</a> less superannuation than men. This can amount to more than <a href="https://www.carersaustralia.com.au/wp-content/uploads/2024/03/Final-Economic-impact-income-and-retirement-Evaluate-Report-March-2022_2024EDIT.pdf">$500,000</a> when wages and super are combined over their lifetime. The gendered super gap has narrowed over the last few decades, as women have joined the workforce <a href="https://www.abs.gov.au/articles/changing-female-employment-over-time#:%7E:text=Women's%20participation%20in%20paid%20work,women%20are%20also%20working%20longer.">in increasing numbers</a> and the superannuation system has matured. But progress is too slow. If we keep tracking as we are, we can’t expect parity until <a href="https://www.womeninsuper.com.au/application/files/3816/8782/3898/7._Not_up_for_discussion.pdf">2070</a>. So why is the gap so persistent? <h2>Making super compulsory</h2> For most of the 20th century, Australia’s retirement incomes system produced more equal outcomes because the age pension is not linked to a person’s lifetime earnings. But the introduction of <a href="https://www.australianretirementtrust.com.au/learn/education-hub/superannuation-history-australia">compulsory super</a> in 1992 linked lifetime earnings and retirement income. The gender super gap arises because women and men have different patterns of paid work and earning over their lifetimes. Women have <a href="https://www.wgea.gov.au/the-gender-pay-gap#:%7E:text=conscious%20and%20unconscious%20discrimination%20and,responsibilities%2C%20especially%20in%20senior%20roles">14% lower</a> average weekly earnings than men. This is due to <a href="https://www.wgea.gov.au/the-gender-pay-gap#:%7E:text=conscious%20and%20unconscious%20discrimination%20and,responsibilities%2C%20especially%20in%20senior%20roles">three factors</a>: <ul> <li> women are much more likely to have unpaid care responsibilities. As a result, they take career breaks, work fewer hours, or work in jobs incommensurate with their skills </li> <li> discrimination, bias and lack of workplace flexibility mean better pay and career outcomes for men and fewer opportunities for people to combine work and career with care responsibilities </li> <li> occupational segregation means women are concentrated in female-dominated industries, which tend to attract lower wages than male-dominated ones. </li> </ul> Over a lifetime, these factors limit women’s capacity to earn and to accumulate super. On average, a woman in full-time permanent employment accumulates <a href="https://www.wgea.gov.au/sites/default/files/documents/Women%27s%20economic%20security%20in%20retirement.pdf">17.7% less</a> superannuation per year than a man in an equivalent role. That amounts to A$1,540 less per year. This annual shortfall compounds over time resulting in a wide gender super gap by the time women retire. <h2>How does this work in practice?</h2> The interruptions to work caused by providing unpaid care reduces people’s opportunities for accumulating superannuation. For example, having a child leads to substantial reductions in mothers’ workforce participation and earnings. Women’s earnings <a href="https://treasury.gov.au/sites/default/files/2023-03/p2023-372004.pdf">fall</a> by an average of 55% in the first five years after entry into parenthood. In contrast, research suggests men’s earnings are <a href="https://treasury.gov.au/sites/default/files/2023-03/p2023-372004.pdf">unchanged</a>, or even <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5340267/#:%7E:text=Over%20time%2C%20unmarried%20but%20coresident,support%20for%20egalitarian%20gender%20roles.">increase</a>, after they become parents. So parenthood has a much greater impact on a mothers’ super than a fathers’. One <a href="https://melbourneinstitute.unimelb.edu.au/assets/documents/hilda-bibliography/hilda-conference-papers/2007/Parr,-Nicholas_final-paper.pdf">estimate</a> suggests having a child reduces a woman’s superannuation balance at age 60 by about $50,000 and a man’s by $5,000. It’s not just parenthood. <a href="https://www.aihw.gov.au/reports/australias-welfare/informal-carers">One in 10</a> Australians provide care for an ageing relative or person with a disability or chronic illness. Women do most of this unpaid care. Unpaid carers <a href="https://bristoluniversitypressdigital.com/view/journals/ijcc/6/3/article-p318.xml">often</a> reduce their working hours, withdraw from work, or put their careers on hold. Among primary carers <a href="https://www.wgea.gov.au/gender-equality-and-caring#:%7E:text=Primary%20carers%20are%20carers%20who,carers">only 58%</a> are in paid work. According to a <a href="https://www.carersaustralia.com.au/wp-content/uploads/2024/03/Final-Economic-impact-income-and-retirement-Evaluate-Report-March-2022_2024EDIT.pdf">recent study</a>, on average, by age 67, primary carers have lost $392,500 in lifetime earnings and $175,000 in super. Some older workers, especially women, also care for their grandchildren. More than a <a href="https://aifs.gov.au/sites/default/files/2022-07/Grandparents%20and%20child%20care%20in%20Australia_0.pdf">quarter</a> of grandparents of a child aged 13 or under provide care for the child in a typical week, usually while the parents work. In a <a href="https://nationalseniors.com.au/uploads/09151356PAC_GrandparentsChildcareLabourForceParticipation_Report_FINAL_Web_0.pdf">recent</a> study, 70% of grandparents, mostly grandmothers, providing regular childcare reported they adjusted their work to accommodate it. One in three reported it had negative impacts on their financial security as they aged. These factors compound over a lifetime. Many Australians provide care for multiple family members simultaneously, or at different times throughout their lives. Women in employment are more likely to be in lower paid positions, and lower paid industries and occupations. Employees in feminised industries such as community services (including paid care workers) and retail have among the <a href="https://www.superannuation.asn.au/wp-content/uploads/2024/01/2311_An_update_on_superannuation_account_balances_Paper_V2.pdf">lowest</a> median super balances, less than half of those of managers and professionals. <h2>What is the solution?</h2> The gender super gap reflects deep inequalities in the distribution of work, incomes and care responsibilities between women and men across their lives. How do we fix it? Policy and public debate has focused on boosting women’s workforce participation. More women in work, means higher incomes and more saving, reducing the gender super gap, right? Yes, up to a point and rates of <a href="https://www.abs.gov.au/articles/changing-female-employment-over-time">women’s workforce participation</a> are increasing. But we also know in Australia, we have a <a href="https://nationalseniors.com.au/uploads/09151356PAC_GrandparentsChildcareLabourForceParticipation_Report_FINAL_Web_0.pdf">preference</a> for some family care of young children, and for care of adults with disability and older people in the <a href="https://www.aihw.gov.au/reports/australias-welfare/australias-welfare-2017-in-brief/contents/ageing-aged-care">community</a>. This means many parents and carers will continue to have at least some interruptions to paid work, reducing their super contributions. We also know when women are encouraged to enter paid work, care responsibilities are often “redistributed” to other women. When mothers enter or re-enter paid work it’s often <a href="https://theconversation.com/caught-in-an-intergenerational-squeeze-grandparents-juggle-work-and-childcare-47939">grandmothers</a> who step in, frequently reducing their incomes and super. For care of ageing <a href="https://www.cambridge.org/core/journals/ageing-and-society/article/abs/an-integrative-analysis-of-sibling-influences-on-adult-childrens-caregiving-for-parents/038C6F299E62380F9C954A9A586A28CD">parents</a> it is often non-working female siblings that step in. As the savings potential of one group of women increases, the savings potential of another decreases. Where care can’t be redistributed to other women within the family, it is redistributed to paid early childhood education and care, disability support, and aged care services. All of these services are dominated by women. As a highly feminised industry, the caring roles are <a href="https://www.abc.net.au/news/2024-08-14/why-are-nurses-and-childcare-workers-so-poorly-paid/104218868">poorly remunerated</a>, so those doing the care, while paid, are themselves limited to save enough super. Boosting women’s workforce participation is an important step. But another is to pay super contributions to parents during the time they are off work providing childcare, as <a href="https://ministers.pmc.gov.au/gallagher/2024/super-boost-new-parents#:%7E:text=It%20means%20that%20eligible%20parents,to%20their%20nominated%20superannuation%20fund.">recently</a> agreed by the federal government. But we need an <a href="https://www.unsw.edu.au/newsroom/news/2015/04/carers-deserve-more-credit-in-the-retirement-incomes-debate">equivalent</a> for other kinds of unpaid carers. Even so, as long as care continues to circulate between different groups of women – older women, low paid women – and as long as care isn’t valued for the large social and economic contribution it makes, the gender super gap will persist. To close the persistent gender gap, we need to go further, encouraging greater men’s involvement in care, and providing better recognition and remuneration of unpaid and paid care. <hr /> This article is part of The Conversation’s retirement series, in which experts examine issues including how much money we need to retire, retiring with debt, the psychological impact of retiring and the benefits of getting financial advice. Read the rest of the series <a href="https://theconversation.com/au/topics/retirement-series-2024-168372">here</a>.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/240323/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/myra-hamilton-8638">Myra Hamilton</a>, Associate Professor, gender, ageing and care, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/being-carers-costs-women-more-than-500-000-over-a-lifetime-leaving-them-with-less-in-retirement-than-men-240323">original article</a>. </div>

Money & Banking

"It makes my blood boil": Today reporter fires up over athletes' pay

Sports reporter and Today presenter Roz Kelly has fired up over a list revealing the highest paid athletes in 2024 for one major reason. <a href="https://www.sportico.com/feature/highest-paid-athletes-in-the-world-1234765608/" target="_blank" rel="noopener">Sportico</a> revealed the list on Friday, which features one concerning theme that caught Kelly's attention: not a single female athlete features in the top 100 list. The salary figures for each athlete combine their reported annual salary as well as endorsement deals that are often worth millions. The lucrative list is topped by football icon Cristiano Ronaldo, who reportedly pocketed $411 million in 2024. "It makes my blood boil, it makes me so, so angry," Kelly said. "It's just proof of the gender pay gap in sport." "Some of these women are some of the most marketable in the world right now, they are on billboards everywhere." "I know like tennis players and surfers, they have equal prize money. There's still a long way to go in cricket, and soccer... I'm on a rant now." "When it comes to endorsement deals they are severely underpaid compared to their male counterparts." Five of the top 10 paid athletes in 2024 were football players, while basketball, golf, and American football also feature heavily in the top 20. Ben Simmons is the lone Aussie athlete in the top 100 after he earned $65m last year, coming in at 85th on the list. Image credits: Today / Shutterstock <p style="box-sizing: border-box; margin: 24px 0px 0px; padding: 0px; border: 0px; font-stretch: inherit; font-size: 18px; line-height: 1.333; font-family: 'Proxima Nova', 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size-adjust: inherit; font-kerning: inherit; font-variant-alternates: inherit; font-variant-ligatures: inherit; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-variant-position: inherit; font-feature-settings: inherit; font-optical-sizing: inherit; font-variation-settings: inherit; vertical-align: baseline; caret-color: #333333; color: #333333; letter-spacing: 0.25px;">

Money & Banking

Barry Humphries' personal collection fetches millions at auction

A collection of Barry Humphries' personal items has fetched $9 million at a London auction. Just one pair of Barry Humphries’ Dame Edna Everage glasses sold for more than 25 times their pre-sale high estimate, with the yellow-lacquered Possum spectacles fetching a whopping £37,800 ($75,185 AUD). His personal collection totalled £4,627,224 ($9.2 million AUD) at auction, including buyer’s premium, according to Christie’s auction house, which welcomed bidders from 41 countries to the sale. The top price of the sale was lot 42, Charles Conder’s painting Sand dunes, Ambleteuse, which sold for £239,400 ($476,170 AUD). Among the star’s costumes up for sale was a scarlet chiffon evening gown, worn by Humphries as Dame Edna when he surprised the then Prince Charles and Duchess of Cornwall in the royal box at the Royal Variety Show in 2013, which sold for £21,420, or $42,604 AUD. <blockquote class="twitter-tweet"> <a href="https://twitter.com/hashtag/SpotlightSaturday?src=hash&ref_src=twsrc%5Etfw">#SpotlightSaturday</a> Christie’s is delighted to present six lots in Barry Humphries: The Personal Collection sale being sold to benefit the Royal Variety Charity (Registered Charity No.206451) on 13 February. Explore more here: <a href="https://t.co/fwfXGUOe9k">https://t.co/fwfXGUOe9k</a> <a href="https://t.co/fFsl6Gh7gC">pic.twitter.com/fFsl6Gh7gC</a> — Christie's (@ChristiesInc) <a href="https://twitter.com/ChristiesInc/status/1888196325801676946?ref_src=twsrc%5Etfw">February 8, 2025</a></blockquote> “These fantastic results are a testament to Barry’s unique vision and lifelong passion for collecting,” said Benedict Winter, head of sale, private and iconic collections, Christie’s London. “Extraordinary prices were achieved for Symbolist art, works on paper, books and of course Dame Edna’s ‘face furniture’ and dresses." “Christie’s is incredibly proud to have offered this iconic collection at auction, with the results paying a fitting tribute to Barry Humphries and his remarkable legacy.” The Australian star, who was known for his satirical characters including the high camp of Dame Edna and the offensive cultural attache Sir Les Patterson, died in April 2023 at the age of 89. Image credits: Getty Images <div id="div-gpt-inline-02-inner" style="box-sizing: border-box; border: 0px solid; --tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; --tw-rotate: 0; --tw-skew-x: 0; --tw-skew-y: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-scroll-snap-strictness: proximity; --tw-ring-offset-width: 0px; --tw-ring-offset-color: #fff; --tw-ring-color: rgba(59,130,246,0.5); --tw-ring-offset-shadow: 0 0 #0000; --tw-ring-shadow: 0 0 #0000; --tw-shadow: 0 0 #0000; --tw-shadow-colored: 0 0 #0000;" data-google-query-id="CKbj15KqyYsDFQQLigMdumYUIw"></div>

Money & Banking

Man whose partner lost $1.6 BILLION at a rubbish tip now wants to buy the entire dump

In what can only be described as the most expensive game of "Where’s Wally?" ever attempted, James Howells, 39, is continuing his decade-long battle to recover a hard drive that contains 8,000 bitcoins – now worth a staggering $1.6 billion AUD – from a landfill site in Newport on the southwest coast of Wales. The saga began in 2013 when Howells’ partner, in a move that will forever be known as the most expensive spring cleaning mishap of all time, accidentally tossed out the hard drive. Since then, Howells has been on a mission to reclaim his digital treasure from what is now essentially a very smelly version of Fort Knox. However, Newport City Council has repeatedly refused his requests to excavate the site, citing environmental concerns and, possibly, an extreme reluctance to deal with a man on a personal mission to unearth a high-tech pirate's chest. A recent legal bid to force the council’s hand was swiftly dismissed by the UK High Court, with the judge describing Howells’ plight as "akin to looking for a needle in a haystack" – though in this case, the haystack is 1.4 million tonnes of garbage, and the needle is worth more than most small countries’ GDP. But Howells refuses to be deterred. His latest plan? If he can’t dig through the dump, he’ll just buy it. Yes, the father-of-three is now looking to purchase the landfill site outright, a bold strategy that has left both financial analysts and waste management professionals scratching their heads. “I have discussed this option recently with investment partners, and it is very much on the table,” he told the BBC. This development adds a fascinating twist to the drama, as parts of the landfill are slated to be turned into a solar farm in the coming years. In what might be the most ironic plot twist in financial history, the very place where Howells’ fortune lies buried could soon be used to power the homes of Newport – while he continues to live in metaphorical darkness. “If they had just worked with me, Newport could have looked like Las Vegas or Dubai,” Howells lamented, apparently envisioning a city built on the back of Bitcoin-funded extravagance rather than well-placed street lamps and reliable waste collection. Despite his enthusiasm, Newport City Council remains unswayed. “Excavation is not possible under our environmental permit,” a council spokesman reiterated, likely while rolling his eyes for the hundredth time. “Mr Howells’s claim has no merit, and the council is vigorously resisting it.” Undeterred, Howells insists he has a team of AI experts ready to streamline the search, making the job “as easy as possible”. As things stand, it appears that for now, Newport’s garbage will remain just that – garbage. But if one thing is certain, it’s that Howells is not giving up anytime soon. Whether his future includes billions in Bitcoin riches or simply a very expensive pile of rubbish remains to be seen. Image: Supplied

Money & Banking

Whether we carve out an exemption or not, Trump’s latest tariffs will still hit Australia

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/scott-french-2254956">Scott French</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> US President Donald Trump and Prime Minister Anthony Albanese have <a href="https://theconversation.com/trump-agrees-to-consider-australian-exemption-from-tariffs-describing-albanese-as-very-fine-man-248886">stated</a> an exemption for Australia from Trump’s executive order placing 25% tariffs on all steel and aluminium imported into the US is “under consideration”. But prospects remain uncertain. Albanese would do well to secure an exemption using <a href="https://www.smh.com.au/politics/federal/exemptions-are-under-consideration-albanese-reports-warm-chat-with-trump-over-tariffs-20250211-p5lb4r.html">similar arguments</a> as then-Prime Minister Malcolm Turnbull did in 2018. If Australia cannot obtain a carve-out from the tariffs, the main group affected will be the Australian producers of steel and aluminium. But the size of the hit they will take is difficult to predict. Regardless of whether Australia gets an exemption, the world economy – and Australians – will be affected by Trump’s latest round of tariffs. <h2>Producers will be hit</h2> If ultimately imposed by the US, these tariffs will make steel and aluminium produced in Australia more expensive for US manufacturers relative to domestically produced alternatives. This will certainly result in reduced demand for the Australian products. However, three factors will help limit the effects: 1. The price of metals produced in the US will rise It will take time to ramp up US production to fill the gap of reduced imports, and the extra production will likely come from <a href="https://theconversation.com/what-are-tariffs-243356">less efficient</a> domestic producers. This means that US manufacturers will continue to buy imported metals, despite the higher prices. 2. The US is not a huge market for Australian steel and aluminium Australia produced A$113 billion of primary and fabricated metal in the 2022-23 financial year, according to the <a href="https://www.abs.gov.au/statistics/industry/industry-overview/australian-industry/latest-release">ABS</a>. By comparison, less than $1 billion of steel and aluminium was exported to the US in 2023, according to data <a href="https://comtradeplus.un.org/">from UN Comtrade</a>, consisting of about $500 million of aluminium and less then $400 million of steel. Exports to the US account for about 10% of Australia’s total exports of these metals. 3. Major markets If major markets such as China and the European Union enact retaliatory tariffs on US metals, this could make Australian metals more competitive in these markets. <h2>Some stand to benefit</h2> While workers in Australian steel and aluminium plants will be watching the news with trepidation, some of Australia’s biggest manufacturing companies may be less concerned. For example, BlueScope Steel has significant US steel operations, and saw its <a href="https://www.abc.net.au/news/2025-02-10/asx-markets-business-news-live-updates-feb-10/104916360">share price increase</a> on news of the tariffs. US-based Alcoa, which owns <a href="https://www.theaustralian.com.au/business/mining-energy/trump-tariff-threat-puts-aussie-aluminium-smelters-on-edge/news-story/1bba5321af89fd817a55a4984d98d273">alumina refineries</a> in Western Australia and an aluminium smelter in Victoria, will also expect to see its US operations benefit. And Rio Tinto will be most concerned about its substantial Canadian operations. Its Canadian hub is responsible for close to <a href="https://www.riotinto.com/en/can/canada-operations/saguenay">half of its global aluminium production</a>. <h2>Demand for iron ore could fall</h2> The US tariffs will also have wider ranging effects on the Australian economy, regardless of whether Australia’s products are directly targeted. While aluminium is Australia’s <a href="https://www.dfat.gov.au/trade/trade-and-investment-data-information-and-publications/trade-statistics/trade-in-goods-and-services/australias-trade-goods-and-services-2023">top manufacturing export</a>, it still makes up only about 1% of total exports, and steel makes up <a href="https://comtradeplus.un.org/">less than half that</a>. Iron ore, by contrast, makes up more than 20% of Australia’s exports, with aluminium ores making up an additional 1.5%. This means the effect of the tariffs on demand for the raw materials to make steel and aluminium may have the largest detrimental effect on the Australian economy. Because the tariffs will make steel and aluminium more expensive to US manufacturers, they will seek to reduce their use of them. This means global demand for the metals, and the ores used to produce them, will decline. Investors appear to be betting on this, with shares of Australian miners like <a href="https://www.asx.com.au/markets/company/RIO">Rio Tinto</a> and <a href="https://www.asx.com.au/markets/company/bhp">BHP</a> falling since Trump announced the tariffs. <h2>Imported goods will become more expensive</h2> Many of the things Australians buy are likely to get more expensive. All US products that use steel and aluminium at any stage of the production process will also become more expensive. Tariffs will raise the cost of steel and aluminium for US manufacturers, <a href="https://theconversation.com/what-are-tariffs-243356">both directly and by reducing overall productivity</a> in the US. About <a href="https://comtradeplus.un.org/">11% of Australia’s imports</a> come from the US. And about half of this consists of machinery, vehicles, aircraft, and medical instruments, which typically contain steel and aluminium. Further, these goods are used by manufacturers around the world to produce and transport many of the other things Australians buy.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/249493/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/scott-french-2254956">Scott French</a>, Senior Lecturer in Economics, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> Image credits: Samuel Corum/CNP/Shutterstock Editorial This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/whether-we-carve-out-an-exemption-or-not-trumps-latest-tariffs-will-still-hit-australia-249493">original article</a>. </div>

Money & Banking

Should you use your retirement savings to pay off debt? Three things to keep in mind

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> and <a href="https://theconversation.com/profiles/jasmine-kinsman-1438670">Jasmine Kinsman</a>, <a href="https://theconversation.com/institutions/nelson-mandela-university-1946">Nelson Mandela University</a> A host of countries have taken steps to reform the terms under which people can access their retirement benefits. South Africa is the most recent. In 2024 it <a href="https://theconversation.com/south-africa-has-changed-its-retirement-rules-to-help-boost-country-savings-how-it-will-work-233287">introduced changes</a> that allow access to some retirement savings while ensuring that most of the money is still preserved for later. Other countries that have changed the rules to allow members to dip into their savings before retirement include Australia, Chile, India and Portugal. Changes were introduced to ease the financial strain caused by COVID-19 pandemic lockdowns. People across the world are grappling with debt and the cost of living. <a href="https://www.treasury.gov.za/comm_media/press/2024/2024%20Two-pot%20System%20Updated%20%20FAQ%20August%202024.pdf">Policymakers</a> have considered this an avenue that offers financially distressed fund members the flexibility to access their retirement funds while still supporting long-term retirement savings. Retirement funds are also often the only sizeable savings that fund members have. A recent report by South Africa’s <a href="https://www.discovery.co.za/portal/business/top-reasons-for-two-pot-withdrawal-requests">Discovery Corporate and Employee Benefits</a>, which represents 3,000 employers that provide pension and provident funds for just over one million employees, found that people aged between 35 and 45 made the most claims to access the savings component of their retirement. When asked what they used the funds for, 24% of members said their withdrawals were for financing home or car expenses. Another 21% of members were using their funds to pay off short-term debt. The majority of members who withdrew their retirement savings were low-income earners (earning up to R125,000 or US$7,000 a year). On the other hand, withdrawals were lowest among high-income earners (earning more than R1 million or US$56,000 a year). This data provides evidence that most low- to middle-income South African consumers are grappling with the trade-off between preserving their capital for retirement and meeting their monthly financial obligations. Given that everyone’s financial situation, goals and needs are different, it’s always best to speak to a financial advisor to assess whether using your retirement savings to pay off debt will be a sound move. But, as academics who have focused on financial planning, we offer three pointers to consider: <ul> <li> understand what you owe, to whom, and what it’s costing you </li> <li> plan beyond paying off debt </li> <li> weigh the pros and cons carefully. </li> </ul> <h2>Know which debt to settle first</h2> Debt with a high interest rate often takes longer to repay, because at the start of the loan repayment period, most of the repayments are going towards interest payments – not reducing the capital amount. If you use your retirement proceeds towards this, it could shorten the period that it would take to settle the loan and reduce the interest repayments, which are compounded according to the outstanding loan balance. Short-term loans, such as those with a repayment term of up to 18 months, tend to have higher interest rates. Unsecured debt, which is debt that is not tied to an asset, also attracts high interest rates because they have little to no collateral requirements. Collateral provides the lender with a guarantee of compensation in the event of default. When there is no collateral, the cost of debt becomes more expensive. Using your retirement proceeds towards settling these short-term loans can free up cash that can be used towards settling other debt and will improve your credit score. <h2>Understanding borrowing behaviour</h2> Using your retirement savings to settle debt should be a priority if you have a plan in place to ensure that your overall financial position will improve. Once the debt is cleared, consider how you can use your free cash in your favour. This could mean boosting your savings or acquiring assets and investments. But if retirement savings are being used to pay off debt while you accumulate more debt, this indicates on ongoing cycle of debt. For example, paying off the minimum amount due on a loan but also consuming the balance that becomes available on the same loan is a sign of poor borrowing behaviour. A more extreme example is taking on more debt to service existing debt. Without a change in borrowing behaviour, using your retirement savings to pay off debt will leave you worse off. You will have missed out on the opportunity to grow your retirement savings and you will have got into more debt. <h2>Debt repayments vs retirement returns</h2> When considering withdrawing from your retirement savings to pay down debt, it’s also important remember this will be at the expense of building your retirement nest egg. For instance, if a 35-year-old were to draw down R30,000 from their retirement fund, that same amount could have grown their retirement capital by over R200,000 by the time they reached 55 years old (assuming an investment return of 10%). Withdrawing your retirement savings on a frequent basis could also mean you may need to work longer and past your intended retirement age to compensate for the withdrawals. Or you may need to find ways to supplement your retirement savings through other investments, or consider reducing your standard of living at retirement. <h2>Is this a sound move?</h2> Remember, withdrawal from retirement savings is subject to tax. While retirement may seem far off when there are more pressing financial needs, using your savings to pay down debt has its advantages and drawbacks. Since withdrawals are being used to pay for expenses and service debt, it’s also important to reflect on borrowing behaviours that may need to be corrected. Otherwise, using retirement savings could become a financial crutch that could make your retirement income less secure. Settling debt using your retirement savings should be done after careful consideration and planning. If in doubt, speak to a financial advisor.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/244837/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, Associate Professor in Finance and Financial Planning, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> and <a href="https://theconversation.com/profiles/jasmine-kinsman-1438670">Jasmine Kinsman</a>, Senior Lecturer in Financial Planning and Certified Financial Planner, <a href="https://theconversation.com/institutions/nelson-mandela-university-1946">Nelson Mandela University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/should-you-use-your-retirement-savings-to-pay-off-debt-three-things-to-keep-in-mind-244837">original article</a>. </div>

Money & Banking

Radio host reveals "ridiculous" amount he was offered for I'm a Celeb

Beau Ryan has revealed the "ridiculous" amount of money he was offered to appear on I'm a Celebrity... Get Me out of Here! The radio presenter and former NRL player has appeared on a plethora of reality TV programs since retiring from NRL in 2014, including Dancing with the Stars, Top Gear Australia, Gladiators and The Amazing Race. While speaking with <a href="https://www.news.com.au/entertainment/tv/radio/beau-ryan-offered-ridiculous-amount-for-tv-show/news-story/9726320fdc4af29266cb5ca462c8ce59" target="_blank" rel="noopener">news.com.au</a> to promote his new radio gig on Triple M, the 39-year-old opened up about his showbiz career and revealed he actually turned down his most lucrative offer. “I got asked to do the first six (seasons) of I’m a Celeb,” Ryan said. “The money for the second season, it was more than I’ve ever seen.” Ryan admitted that the offer, which was worth more than $500,000, came at a time when Network 10 was keen to attract big names for the relatively unknown show in its early seasons. “The money was big … because everyone didn’t know how the show was going to pan out,” he said. “Back then it was a lot more money and it was a ridiculous amount.” He revealed that he turned down the offer because he was contracted to work with Nine at the time, and it wasn't until 2022 that he jumped ship to Network Ten that he agreed to appear on the show for far less money. “I said (to Ten), ‘do you still have that offer from 2015 or 16?’ and they said, ‘no, we don’t,’” he laughed. Ryan was in the jungle for two weeks, quitting the show with just a few days to go because he was “mentally cooked and physically drained”. Beau also candidly shared that he’s rejected a number of other TV offers over the years, including Celebrity Apprentice, The Masked Singer and SAS Australia. “My kids love The Masked Singer … and were filthy when I said no to that,” Ryan laughed. “(But) I couldn’t do it because of timing and because I can’t sing.” Image credits: Ten / Instagram

Money & Banking

Most retirees who rent live in poverty. Here’s how boosting rent assistance could help lift them out of it

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/brendan-coates-154644">Brendan Coates</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>; <a href="https://theconversation.com/profiles/joey-moloney-1334959">Joey Moloney</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>, and <a href="https://theconversation.com/profiles/matthew-bowes-2316740">Matthew Bowes</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> Most Australians can look forward to a comfortable retirement. More than three in four retirees own their own home, most report feeling comfortable financially, and few suffer financial stress. But our new Grattan Institute <a href="https://grattan.edu.au/report/renting-in-retirement-why-rent-assistance-needs-to-rise/">report</a> paints a sobering picture for one group: retirees who rent in the private market. Two-thirds of this group live in poverty, including more than three in four single women who live alone. <hr /> <iframe id="x2VND" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/x2VND/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> Retirees who rent often have little in the way of retirement savings: more than half have less than A$25,000 stashed away. And a growing number of older Australians are at risk of becoming homeless. But our research also shows just how much we’d need to boost Commonwealth Rent Assistance to make housing more affordable and ensure all renters are able to retire with dignity. <h2>Today’s renters, tomorrow’s renting retirees</h2> Home ownership is falling among poorer Australians who are approaching retirement. Between 1981 and 2021, home ownership rates among the poorest 40% of 45–54-year-olds fell from 68% to just 54%. Today’s low-income renters are tomorrow’s renting retirees. Age pensioners need at least $40,000 in savings to afford to spend $350 a week in rent, together with the <a href="https://www.servicesaustralia.gov.au/age-pension">Age Pension</a> and <a href="https://www.servicesaustralia.gov.au/rent-assistance">Rent Assistance</a>. That’s enough to afford the cheapest 25% of one-bedroom homes in capital cities. But Australians who are renting as they approach retirement tend to have little in the way of retirement savings. 40% of renting households aged 55-64 have net financial wealth less than $40,000. <h2>Rent assistance is too low</h2> Our <a href="https://grattan.edu.au/report/renting-in-retirement-why-rent-assistance-needs-to-rise/">research</a> shows that Commonwealth Rent Assistance, which supplements the Age Pension for poorer retirees who rent, is inadequate. The federal government has <a href="https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/speeches/budget-speech-2024-25">lifted the maximum rate of Rent Assistance</a> by 27% – over and above inflation – in the past two budgets. But the payment remains too low. A typical single retiree needs at least $379 per week to afford essential non-housing costs such as food, transport and energy. But we found a single pensioner who relies solely on income support can afford to rent just 4% of one-bedroom homes in Sydney, 13% in Brisbane, and 14% in Melbourne, after covering these basic living expenses. With Rent Assistance indexed to inflation, rather than low-income earners’ housing costs, the maximum rate of the payment has increased by 136% since 2001, while the rents paid by recipients have increased by 193%. <h2>A boost is needed</h2> Our analysis suggests that to solve this problem, the federal government should increase the maximum rate of Rent Assistance by 50% for singles and 40% for couples. The payment should also be indexed to changes in rents for the cheapest 25% of homes in our capital cities. These increases would boost the maximum rate of Rent Assistance by $53 a week ($2,750 a year) for singles, and $40 a week ($2,080 a year) for couples. This would ensure single retirees could afford to spend $350 a week on rent, enough to rent the cheapest 25% of one-bedroom homes across Australian capital cities, while still affording other essentials. Similarly, retired couples would be able to afford to spend $390 a week on rent, enough to rent the cheapest 25% of all one- and two-bedroom homes. <hr /> <iframe id="EZBuw" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/EZBuw/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> <h2>Unlikely to push up rents</h2> One common concern is that increasing Rent Assistance will just lead landlords to hike rents. But we find little evidence that this is the case. International studies suggest that more than five in six dollars of any extra Rent Assistance paid would benefit renters, rather than landlords. <hr /> <iframe id="qGxQE" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/qGxQE/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> In Australia, there’s little evidence that recent increases in Rent Assistance have pushed up rents. Our analysis of NSW rental bond lodgement data suggests areas with higher concentrations of Rent Assistance recipients did not see larger rent increases in the year after the payment was boosted. That’s not surprising. Rent Assistance is paid to tenants, not landlords, which means tenants are likely to spend only a small portion of any extra income on housing. Since rates of financial stress are even higher among younger renters, we propose that any increase to Rent Assistance should also apply to working-age households. Boosting Rent Assistance for all recipients would cost about $2 billion a year, with about $500 million of this going to retirees. These increases could be paid for by further <a href="https://grattan.edu.au/report/super-savings-practical-policies-for-fairer-superannuation-and-a-stronger-budget/">tightening superannuation tax breaks</a>, <a href="https://grattan.edu.au/report/housing-affordability-re-imagining-the-australian-dream/">curbing negative gearing and halving the capital gains tax discount</a>, or counting more of the value of the family home in the Age Pension assets test.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/249134/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/brendan-coates-154644">Brendan Coates</a>, Program Director, Housing and Economic Security, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>; <a href="https://theconversation.com/profiles/joey-moloney-1334959">Joey Moloney</a>, Deputy Program Director, Housing and Economic Security, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>, and <a href="https://theconversation.com/profiles/matthew-bowes-2316740">Matthew Bowes</a>, Associate, Housing and Economic Security, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/most-retirees-who-rent-live-in-poverty-heres-how-boosting-rent-assistance-could-help-lift-them-out-of-it-249134">original article</a>. </div>

Money & Banking

Anthony Albanese's rental income revealed

Anthony Albanese has rented out his luxury home on the NSW Central Coast that he bought for $4 million last year. The Prime Minister updated his official register of interests in January to list for the first time unspecified “rental income” for the clifftop Copacabana retirement home. While his real estate agent declined to reveal how much rent he is charging, online estimators suggested he could ask for $1,000 a week or about $52,000 a year. On top of the Central Coast home, Albanese is now also renting out his Sydney home, a mortgage-free federation bungalow with a pool for $1,350 a week while he lives rent-free at the Lodge. Between the two properties, the prime minster's rental income is around $2,350 a week or $9,400 a month. His annual rental income on top of his salary is an estimated $122,200 and his salary is $564,356 a year. Greens housing spokesman Max Chandler-Mather has previously taken aim at Mr Albanese for owning investment properties as he stepped up his campaign to scrap negative gearing laws. “Let’s be real, if Labor wants to deal with housing affordability then it’s time to phase out the billions of dollars in tax concessions property investors get every year in the form of negative gearing and capital gains tax concessions,” Mr Chandler-Mather said. “We could be investing that money in building public housing but instead it is going to people like the Prime Minister with his three investment properties.” He went on to question why Australia has a “property investor as a prime minister” during the “worst housing crisis we’ve seen in a generation”, adding, “I think what they’ve got to realise on the politics of this in the course of this year a lot of renters are going to start asking the question.” Image credits: realestate.com.au/RICHARD WAINWRIGHT/EPA-EFE/Shutterstock Editorial

Money & Banking

Want your loved ones to inherit your super? Here’s why you can’t afford to skip this one step

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/tobias-barkley-1271340">Tobias Barkley</a>, <a href="https://theconversation.com/institutions/la-trobe-university-842">La Trobe University</a> What happens to our super when we die? Most Australians have superannuation accounts but about <a href="https://www.austlii.edu.au/cgi-bin/viewdoc/au/journals/SydLawRw/2024/10.html#Heading24">one in five</a> of us die before we can retire and actually enjoy that money. If we do die early our money is paid out as super “death benefits”. They can be substantial. Even people who die young can have $200,000–$300,000 of death benefits through <a href="https://moneysmart.gov.au/how-life-insurance-works/insurance-through-super">super life insurance</a>. Death benefits have recently been in the news for all the wrong reasons. Last week <a href="https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/mandatory-service-standards-superannuation-industry">the Treasurer Jim Chalmers</a> expressed concern about delays paying out death benefits. <a href="https://lawcouncil.au/resources/submissions/proposed-reform-to-superannuation-death-benefits">The Law Council</a> is concerned people do not have enough control over how death benefits are distributed. <a href="https://www.watoday.com.au/national/western-australia/championing-for-molly-perth-mum-s-milestone-in-her-quest-for-justice-20241206-p5kwiu.html">Others are devastated</a> about death benefits being paid to alleged violent partners. <h2>How can you decide who gets your unspent super?</h2> Our first thought might be writing it in our will. However, super is not covered by our will as it does not become part of our <a href="https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FCA/2001/1535.html">deceased estate</a>. Instead, death benefits are distributed by the trustee of your superannuation fund. Under the law, there are two main mechanisms controlling distribution: <a href="https://www.australiansuper.com/superannuation/access-your-super-early/nominate-a-beneficiary#:%7E:text=A%20binding%20nomination%20instructs%20AustralianSuper,the%20date%20we%20accept%20it.&text=Lapsing%20binding%20nomination%20%E2%80%93%20This%20nomination,date%20you%20sign%20the%20form.">binding nominations</a> and the trustee’s discretion. Every super member has the option to create a binding nomination. It’s like a will for your super that the super trustee is obliged to follow. It also needs two witnesses to execute it. However, there are actually more ways for a binding nomination to fail than for a will to fail. The law only allows you to nominate certain people: your “<a href="https://www.lawsociety.com.au/resources/resources/my-practice-area/elder-law/superannuation-FAQs#collapse_165">dependants</a>” or your estate. If you nominate anyone else your entire nomination stops being binding. Plus, unlike wills, there is no way to fix execution errors. Also, many binding nominations expire after three years. If you don’t have a binding nomination, then the trustee can choose who your death benefit goes to. There are two main mechanisms controlling how the trustee chooses who gets your death benefit. First, <a href="https://treasury.gov.au/sites/default/files/2019-03/c2019-t371937-discussion-paper.pdf">legislation</a> requires the trustee to give the death benefit to your dependants or deceased estate before anyone else. This means that your parents, for example, will only receive something if you have no children, partner or other dependants. Second, decisions made by trustees can be disputed by complaining to the <a href="https://www.afca.org.au/">Australian Financial Complaints Authority (AFCA)</a>. The authority has a rigid approach to who should get death benefits and trustees usually follow this course of action. <a href="https://openjournals.library.sydney.edu.au/SLR/article/view/20199">Research I’ve done with Xia Li</a> of La Trobe University reveals what AFCA does in practice. Most crucially, people’s wishes expressed in non-binding nominations were essentially ignored. Our research found there was no statistically significant association between being nominated in a non-binding nomination and receiving any of the death benefit. This was true even for recent nominations. Other factors the complaints authority ignores are family violence and financial need. In one case, five daughters provided evidence, including a police report, that their deceased mother was a victim of violence perpetrated by her new partner. <a href="https://service02.afca.org.au/CaseFiles/FOSSIC/701195.pdf">In keeping with the Federal Court, AFCA gave the alleged perpetrator</a> everything because he alone would have benefited from the deceased’s finances if she had lived. In another case, <a href="https://service02.afca.org.au/CaseFiles/FOSSIC/874050.pdf">the deceased’s adult son received nothing</a> despite living with disability and “doing it tough”. He had refused financial help so was not financially dependent. AFCA gave everything to the partner. AFCA ignores these factors because of one key issue. It places “<a href="https://service02.afca.org.au/CaseFiles/FOSSIC/832049.pdf">great weight</a>” on whether beneficiaries are financially dependent on the deceased. This means when choosing between a financial dependent – such as a new partner who shares home expenses with the deceased, and non-financial dependants, such as most adult children – AFCA will almost always give everything to the spouse. Relying on financial dependence can be arbitrary. Unlike in family law, a de facto partner <a href="http://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/sia1993473/s10.html#spouse">does not need to be living with you for two years</a> before becoming entitled. For example, <a href="https://service02.afca.org.au/CaseFiles/FOSSIC/753556.pdf">in one case AFCA gave a partner of possibly only seven months</a> (and 41 years younger than the deceased) everything and the deceased’s three children aged 27–33 nothing. Also, AFCA treats any regular payment that supports daily living as financial dependence. For example, <a href="https://service02.afca.org.au/CaseFiles/FOSSIC/714258.pdf">a son paying A$100 a week board to parents means both parents are financially dependent on the son</a>. In another case, payments from the deceased to his brother of $5,000, $7,000 and $5,000 made over a year <a href="https://service02.afca.org.au/CaseFiles/FOSSIC/842323.pdf">was not financial dependence because they were irregular</a>. The whole process is slow. The average time it takes to resolve a death benefit case that goes to AFCA is nearly <a href="https://www.austlii.edu.au/cgi-bin/viewdoc/au/journals/SydLawRw/2024/10.html#Heading248">three years and the longest case I’ve seen took over six</a>. The only thing that you can do that will make a difference is execute a binding nomination; non-binding nominations are worthless. But take care to execute your binding nomination correctly (get legal advice) and leave reminders for yourself to review it every three years.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/248019/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/tobias-barkley-1271340">Tobias Barkley</a>, Lecturer, <a href="https://theconversation.com/institutions/la-trobe-university-842">La Trobe University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/want-your-loved-ones-to-inherit-your-super-heres-why-you-cant-afford-to-skip-this-one-step-248019">original article</a>. </div>

Money & Banking

Big banks finally cut fixed-interest mortgage rates

NAB has become the first big bank to announce it has cut its fixed rate mortgages across all loan terms. The bank is the first of the big four banks to cut its fixed rates in 2025, two weeks out from the Reserve Bank of Australia’s first meeting when it is tipped to cut the cash rate. NAB announced on Monday that their lowest fixed rate is now 5.84 per cent, with a deposit of at least 20 per cent on a three-year term. “NAB is the first of the big four banks to cut fixed rates in 2025, with other banks likely to follow,” Canstar data insights director Sally Tindall said. “The cost of wholesale fixed rate funding has started to ease slightly. This, combined with a prospective cash rate cut, should push other banks into moving on fixed rates.” The cuts from NAB come almost two weeks after Macquarie Bank lowered its fixed rates, however, ANZ still has the lowest fixed rate out of the big four banks at 5.74 per cent for a two-year or three-year term. “While a few banks are now starting to sharpen their offerings, fixed rates still have a way to fall before they become fashionable again with borrowers,” Tindall said. “We expect the big four banks in particular to pass on cash rate cuts in full, at least for the first couple of cash rate cuts,” she said. “But we might even see some banks choose to pass on even more to new customers in order to take advantage of that re-engagement for borrowers in what a competitive rate looks like.” “Many homeowners have been waiting for well over a year for a cash rate cut. It’s hard to see them throwing in the towel and switching to a fixed rate now when the RBA is poised to move." “That said, there’s no guarantee we’ll see a barrage of cash rate cuts and borrowers should factor this into their thinking.” Image credits: Shutterstock <p class="mb-4 font-serif text-article-body" style="font-family: var(--font-google-newsreader),serif; box-sizing: border-box; border: 0px solid; margin: 0px 0px 24px; font-size: 1.2275rem; line-height: 26.514px; caret-color: #2a2a2a; color: #2a2a2a;">

Money & Banking

Anthony Albanese fast-tracks cost of living relief

Prime Minister Anthony Albanese is set to fast-track legislation to introduce new measures to help struggling families and students during the ongoing cost of living crisis. The legislation will be introduced to parliament in the next two weeks which will include a guarantee of three days of subsidised childcare each week for Australian families, and will make fee-free TAFE permanent. The Labor government said three days of subsidised childcare is “about putting in place the building blocks for a universal childcare system”, with Education Minister Jason Clare saying the policy “is fundamentally about making sure every child gets a great start in life and start school ready to learn." “At the moment the children who need early education the most can’t access it,” Clare said. “They are missing out. As a result they start school behind and often never catch up. This will help fix that. Every child has the right to go to school — and governments have a responsibility to make that possible." “We believe every child has the right to go to early education, to help make sure they don’t start school behind — and our Labor government is going to make this possible.” Passing laws to make fee-free TAFE permanent will save “students thousands of dollars to train in key occupations, while delivering the skilled workers Australia needs”, the Albanese government said. “Our focus is on Building Australia’s Future while helping with the cost of living now,” Leader of the House Tony Burke said. “This fortnight we’ll continue delivering on that agenda — securing cost-of-living support for families through childcare reforms, while setting up our future prosperity through skills, training and future industry,” Burke said. Opposition Leader Peter Dutton has opposed most cost-of-living measures, claiming they will have the opposite effect by pushing up inflation and delaying interest rate cuts. However, underlying inflation is now sitting at 3.2 per cent, and most economists believe the Reserve Bank will cut rates on February 18th. Image credits: LUKAS COCH/EPA-EFE/Shutterstock Editorial

Money & Banking

Dad sparks debate over "unfair" job ad

A recent job ad on Airtasker has highlighted just how far some parents are willing to go to reserve a public spot in the park. The job ad offered $50 for someone to sit at a picnic table in Alison Park in Randwick, Sydney for two hours on behalf of a family looking to host a birthday party. “Planning a kids’ birthday party at Alison Park. We need someone to mind the only picnic table in the park, so essentially, we need someone to sit at the table and reserve the spot for two hours from 7am to 9am,” the user wrote online, with detailed instructions of where to go. The post was shared in a parenting group on Facebook, where it received mixed reactions. “First come, first served,” one person commented. “It’s unfair, you can’t reserve public spaces,” added another. A few others thought $50 was too "cheap", but despite some backlash, most people were surprisingly supportive of the act. “Genius! An easy way to earn cash!” said one parent. “I don’t see any issue with this. It’s a great idea, and the guy is paying for it,” another mum wrote. Others pointed out that it was a good solution, with one writing: “I also don’t see an issue with this. It’s common practice for people to arrive early to reserve spots and tables at the park for parties. "Maybe this person doesn’t have any help, so it’s completely fine to pay someone to help them. Of course, it would be nicer if the council had a booking system, but they don’t." “I don’t think it’s a terrible idea. I actually prefer it when councils have a booking system for tables. It saves people from having to reserve a table all day for a 1pm party and holds them responsible for tidying up afterwards,” another added. The debate on reserving public spots is not new, with one family even resorting to using<a href="https://www.oversixty.com.au/travel/travel-trouble/council-cracks-down-on-odd-beach-trend" target="_blank" rel="noopener"> cling-wrap</a> to secure a gazebo at the beach. Image: Randwick Council/ news.com.au

Money & Banking

Sinead O’Connor’s final wish revealed

Almost two years after the Sinead O'Connor's tragic death, the legacy she left behind for her children has been revealed. According to Irish probate records obtained by The Sun, O'Connor left her £1.7 million (AUD 3.38 million) estate to her three surviving children, with ex-husband John Reynolds named executor of her estate. After debts, legal fees, and funeral costs, the estate was reduced to £1.4 million (AUD 2.78 million). The document also contained specific instructions for her children to ensure they get their money's worth out of any unreleased music that she has recorded. “I direct that after my death, and at the discretion of any of my children who are then over 18, my albums are to be released to ‘milk it for what it’s worth’,” she wrote. Signed in 2013 ahead of her conversion to Islam in 2018, the document also outlined her burial requests, where she noted her children may “dispense my ashes as they see fit” and to be buried in priest's robes with a copy of the Hebrew bible and her album, Theology. The singer's youngest son Yeshua was given her collection of guitars. O’Connor passed away in July 2023 at the age of 56, after she was found unresponsive at her London home by first responders. Her <a href="https://www.oversixty.com.au/health/caring/coroner-finally-reveals-sinead-o-connor-s-cause-of-death" target="_blank" rel="noopener">cause of death</a> was later confirmed to be chronic obstructive pulmonary disease (COPD) and asthma, after a a copy of her death certificate was obtained by the Irish Independent newspaper. Image: Co/ZUMA Press Wire/ Shutterstock Editorial

Money & Banking

“Lesson learnt”: Expat fined for parking mistake

A British expat has copped a hefty fine after going against a "common sense" road rule. The man had just moved to Sydney and was visiting the famous beaches in Shoalhaven, NSW when he copped a $200 fine for parking on the wrong side of the road, facing against the direction of traffic flow. “Never heard of this before. It didn’t say anything about no parking and I’ve come back, and I’ve got a ticket, ” he said n the video posted on social media. While it is an offence in Australia, in the UK the parking technique is permitted, except at night. “Lesson learnt,” he ended his clip. The video received a lot of comments, with one asking the obvious question: “Didn’t you see what the other cars were doing?” Another added: “If the cars are all facing the one way, park that way. Why would you park facing the wrong way then all the other cars are facing the other way?” “Wasn’t it obvious?” a different person questioned. <div class="embed" style="box-sizing: inherit; margin: 0px; padding: 0px; border: 0px; font-size: 16px; vertical-align: baseline; outline: none !important;"><iframe class="embedly-embed" style="box-sizing: inherit; margin: 0px; padding: 0px; border: 0px; font-size: 16px; vertical-align: baseline; outline: none !important; width: 535px;" title="tiktok embed" src="https://cdn.embedly.com/widgets/media.html?src=https%3A%2F%2Fwww.tiktok.com%2Fembed%2Fv2%2F7462819112226540833&display_name=tiktok&url=https%3A%2F%2Fwww.tiktok.com%2F%40archoz_2025%2Fvideo%2F7462819112226540833&image=https%3A%2F%2Fp16-sign-useast2a.tiktokcdn.com%2Ftos-useast2a-p-0037-euttp%2FogAIQEeARJOEnAQfRA5kCUnTbHGDECF1PRWDjH%7Etplv-dmt-logom%3Atos-useast2a-i-0068-euttp%2Fo0nbEYRzCBSwQAAwr8ARPoEAiB5iZIQdj0FCv.image%3Flk3s%3Db59d6b55%26x-expires%3D1737849600%26x-signature%3DbzHLO2CQeaQN%252BZr1Nmm%252Fw5t8q1A%253D%26shp%3Db59d6b55%26shcp%3D-&type=text%2Fhtml&schema=tiktok" width="340" height="700" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe></div> Others told him that it was just "common sense" but he insisted that everyone in the UK parks in different directions” despite also driving on the left-hand side of the road. A few people explained why they think the rule exists. “I think it’s because to get out of that park you would have to drive into oncoming traffic,” one user suggested. “Maybe in the UK your lanes are small and this would be okay but 99 per cent of our roads are wide and this is not needed.” “And to get into that park in the first place, you have to drive on the wrong side,” another person pointed out. Some British commenters could relate to the man's mistake, saying: “I’ve been caught out doing this too,” and “It did my head in when I first moved here!” The penalty for parking in the wrong direction of travel can reach up to 257, and in school zones, this fine can increase to $330 plus two demerit points. <em style="box-sizing: inherit; margin: 0px; padding: 0px; border: 0px; font-size: 16px; vertical-align: baseline; color: #323338; font-family: Figtree, Roboto, 'Noto Sans Hebrew', 'Noto Kufi Arabic', 'Noto Sans JP', sans-serif; background-color: #ffffff; outline: none !important;">Images: TikTok

Money & Banking

Ray Martin cashes in after selling luxury Sydney home

Ray Martin has made a whopping $7.1 million after selling the family home he has owned on Sydney's north shore for thirty-five years. The veteran journalist sold the five-bedroom, three-bathroom mansion in the suburb of Waverton for a reported $8 million, after Martin and his wife Dianne bought the luxurious 1930s-era house in 1990 for $900,000. The beautiful home, known as Finisterre, sold for between $8 million and $8.5 million after being listed on January 1st, according to reports from <a href="https://www.realestate.com.au/news/ray-martins-8m-home-sale-bonanza/" target="_blank" rel="nofollow noreferrer noopener">The Daily Telegraph</a>. Located just 5km from the Sydney CBD, the gorgeous two-storey home features classic period stylings and luxurious interiors. The stunning home boasts impressive features such as grand scale living areas, a beautiful patio for entertaining and a glass-framed mosaic-tiled pool, while a chef's kitchen features the latest appliances and a breakfast island. Other highlights include a 'formal' living room, a separate family room, a home office and an open-plan dining area that opens out to the backyard and patio. The upper level offers a large open terrace which features views of Sydney Harbour and the city skyline. Other luxury features on the estate also include a wine cellar, a second-floor study and landscaped gardens. Image credits: SBS / McGrath Real Estate

Money & Banking

Cruel scam targets radio star's elderly mum

Radio star Bianca Dye has revealed that her elderly mother was the target of a cruel scam. The i98 radio host told 9Honey that her mother, Anne, was at home when she received a series of texts from someone pretending to be her. The first text Anne received claimed that Dye was using a friends phone, before "they sent something about me needing help with an urgent tax bill." At the time, Dye was in Wollongong in NSW hosting the breakfast shift, when her mother received the "urgent tax bill" text requesting $3,000. "When parents get older, they don't want to bother you. She didn't want to stress me out," she added, fighting back tears. "But by not contacting me the day it happened and waiting until the next day, she had worked herself up into tears. She didn't sleep a wink." "So she was sending text messages to some stranger." By the time Anne rang her daughter, she was trying to transfer the money, but got the credit card number confused. Fortunately, Dye had a friend check in on her mum, who was able to take Anne to her local branch for help. "They got it all sorted, changed her PIN, no money had been taken out," Dye said. While it was a close call for Dye many Australians, particularly the elderly, are common targets for scammers. Dye hopes to raise awareness of such scams and spoke with cyber security expert Damien Cantelo of Apollo Secure who shared a few safety tips. "Certainly [parents] should take the approach of 'trust no one, assume nothing', because if it's a text message or a call, [scammers] are getting more sophisticated so it's harder to detect," Cantelo said. "A really good tip is to set up a 'safe word'. So you and your family have a word, you just make up a random word. "And if ever there's anything a little bit fishy going on, you can say, 'Oh, hey Bianca, what's the safe word?' And then if you don't have it, then they know to hang up." Dye added that as scams get more intricate, it may be more difficult for older people, especially those who may suffer from memory loss, to detect the scams. "It's a terrifying future for the elderly unless someone tech savvy is living in the house with them," Dye added. Image: Bianca Dye/ 9Honey

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