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What would – and should – happen to the ABC under the next federal government?

<div class="theconversation-article-body">Who could possibly argue with the idea that the ABC should be efficiently run and produce excellent programs? No one, you would think. So why, then, has there been immediate resistance to Opposition Leader Peter Dutton’s <a href="https://www.smh.com.au/politics/federal/dutton-tells-abc-to-show-excellence-or-face-funding-razor-gang-20250402-p5lofu.html">statement</a> that, if elected next month, a Coalition government would “reward excellence” and “keep funding in place” if the ABC is “being run efficiently”? The fact that Coalition governments – and Dutton himself – have historically been deeply hostile to the public broadcaster is part of it. Many have picked up on the implicit threat that if his government did not find “excellence”, its funding would be cut. But there’s more than that. For example, who defines “excellence” and “efficiency”? Second, the ABC is set up by statute to be run independent of government. Third, the ABC has been subjected to a slew of efficiency reviews, in 1988, 1997, <a href="https://www.abc.net.au/news/2006-03-15/abc-efficient-under-funded-kpmg-report/8183700">2006</a>, <a href="https://www.infrastructure.gov.au/sites/default/files/ABC_and_SBS_efficiency_report_Redacted.pdf?acsf_files%20_redirect">2014</a> and <a href="https://www.infrastructure.gov.au/sites/default/files/2018-national-broadcasters-efficiency-review-redacted.pdf">2018</a>. Overwhelmingly, they found the ABC does more with fewer resources than its counterparts in the commercial media. For example, in 2006, at the behest of the Coalition government led by John Howard, KPMG found the ABC was a “broadly efficient organisation” providing a “high volume of outputs and quality relative to the level of funding it receives”. Let’s translate the consulting-speak. The ABC’s annual budget of $1.2 billion costs $43 per person in Australia. The cheapest subscription to Netflix costs more than twice that amount - $95.88 – and of course the ABC provides much more than a single streaming service. Fourth, Coalition governments’ record of antipathy towards the ABC is most obvious in how they fund it. <hr /> <iframe id="WOgDZ" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/WOgDZ/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> As ABC chair Kim Williams said <a href="https://www.abc.net.au/about/media-centre/speeches-and-articles/abc-chair-kim-williams-am-address-to-the-melbourne-press-club/105132866">last week</a>, in real terms the ABC’s funding is $150 million less than it was in 2013 when the coalition last came to power. This is notwithstanding the current Labor government’s restoring of at least some lost funding. Add to this the fear that Dutton is seeking to emulate Donald Trump. Amid the tempest of economic and social measures the US president has brought in since his inauguration in January, his attacks on public and international broadcasting have passed unnoticed by many. By executive order, Trump has <a href="https://mailchi.mp/poynter/president-trumps-latest-press-target-voice-of-america?e=1e851c3327">abolished Voice of America </a>(VOA), which began during the second world war. VOA has provided news to nearly 50 countries, including those that did not have press freedom. Its broadcasts are by statute meant to be accurate and objective. It has been an arm of soft power diplomacy for the US. Trump has also threatened to defund the public broadcasters, National Public Radio (NPR) and the Public Broadcasting Service (PBS), labelling them “radical left monsters”. The difference between public broadcasting in the US and Australia is that for the former, the government provides only a small percentage of its funding. Most of it comes from donations from citizens, grants from foundations and corporate sponsorship, according to <a href="https://www.forbes.com/sites/antoniopequenoiv/2025/03/27/will-trump-defund-npr-and-pbs-heres-what-we-know-as-president-attacks-the-broadcasters/">a recent report</a> in Forbes. PBS and NPR occupy a smaller part of the overall US media landscape than the ABC and SBS in Australia, but NPR’s reporters in particular have been actively, if dispassionately, reporting on the Trump Mark II administration’s tumultuous first few months. Like the VOA, the ABC’s international broadcasting arm is largely invisible to audiences in its host country. This means any cuts could well pass unnoticed, unlike, say, if the ABC said it could no longer afford to air the children’s TV series, Bluey. Through radio, TV, and now online, the ABC has broadcast to Australia’s neighbours since the second world war, initially as an agent to spread democratic value, but in more recent decades to model effective public interest journalism. The ABC, like the BBC, has a charter of independence. The ABC’s work in the international arena, through Radio Australia and ABC Australia, is vital, not only to bolster national security by providing trusted news and information about Australia and its allies, but by working alongside and supporting local Indo-Pacific news organisations. The Albanese Labor government appears to have understood this threat, providing some extra funding for the international services mostly in response to China’s increased presence in the region, as Alexandra Wake argued in her <a href="https://link.springer.com/book/10.1007/978-3-031-47571-9">2024 book</a> Transnational Broadcasting in the Indo-Pacific. Labor’s funding boost remains inadequate, though, to properly broadcast an Australian voice to the region because, she argued, of increasingly fraught relations between nations, and a complex political and media environment. One of the most pressing priorities now is to extend the Labor government’s Pacific Security and Engagement Initiatives (the original $8 million per year) which is due to end in June 2026. Without this, the ABC will have transmission to the region, but next to no appropriate content. Australia needed to rectify past mistakes by increasing international broadcast funding and protecting that funding from future government cuts. Australia also needed to adopt the long-term thinking that China displayed if it was to counteract China’s strategic ambitions for the region. By closing VOA, Trump and his government efficiency wrecking ball, Elon Musk, have actually left open an opportunity for Australia to lean into the unique strategic advantage granted by Australia’s economic and geographical place in the region. The move to cut US aid supporting journalism extends to smaller outfits such as Benar News Pacific, which recently <a href="https://www.benarnews.org/english/news/philippine/letter-from-editors-benarnews-pauses-operations-04022025104657.html">told its audience</a> it was “pausing operations”. For the past decade, Benar News (and its parent Radio Free Asia) has been reporting across the region on security, politics and human rights. “The US administration has withheld the funding that we rely on to bring our readers and viewers the news from Indonesia, Malaysia, Thailand, Bangladesh, the Philippines and island-states and territories in the Pacific,” it said in a letter from the editors. Such local news services may be small but are a vital bulwark in the multi-polar world Trump seeks to shape.<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/248117/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> By <a href="https://theconversation.com/profiles/matthew-ricketson-3616">Matthew Ricketson</a>, Professor of Communication, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin University</a>; <a href="https://theconversation.com/profiles/alexandra-wake-7472">Alexandra Wake</a>, Associate Professor, Journalism, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>, and <a href="https://theconversation.com/profiles/michael-ward-421548">Michael Ward</a>, PhD candidate in media and communications, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> 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/what-would-and-should-happen-to-the-abc-under-the-next-federal-government-248117">original article</a>. Image: Instagram </div>

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

Government bails out Rex Airlines

The federal government is set to take on Rex Airlines' $50 million debt in order to keep the company, that collapsed on June 30th 2024, servicing regional Australia. Rex has been struggling to stay afloat in the six months since the company entered voluntary administration, with Ernst and Young (EY) appointed administrators, putting a strain on domestic travel to regional areas. Transport Minister Catherine King and Finance Minister Katy Gallagher announced on Thursday that the government would acquire some of Rex's debt to prevent liquidation, which they said would harm regional and remote communities that rely on the carrier. "By acquiring the debt, the government will become the principal secured creditor and will seek to become a voting member of the Committee of Inspection," the ministers said in a joint statement. "Whilst the accelerated initial sale process undertaken by the administrators in mid-2024 did not find a suitable buyer for the airlines' regional operations, the government continues to work closely with the administrators through the extended convening period." "This makes clear the government's ongoing commitment to maintaining access to aviation services for regional and remote communities, and recognises the critical role of the Rex network to local economies." Ernst and Young has a just few months to secure Rex's commercial future after the Federal Court late last year granted an extension of the voluntary administration to June 30th 2025. Image credits: Shutterstock

Domestic Travel

Superannuation is complicated. A guaranteed government income in retirement would be simpler

<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> and <a href="https://theconversation.com/profiles/joey-moloney-1334959">Joey Moloney</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> Having compulsory super should help create a comfortable and stress-free retirement. But Australia’s super system is too complex for retirees to navigate. This can leave them stressed and lacking the confidence to spend their super savings. Our latest report, <a href="https://grattan.edu.au/report/simpler-s%5Buper/">Simpler super: taking the stress out of retirement</a>, recommends the federal government offer all Australians a lifetime <a href="https://moneysmart.gov.au/retirement-income/annuities">annuity</a> - a financial product that pays a guaranteed income for the rest of their lives. This would help retirees stress less, spend more, and enjoy their retirement years. <h2>Stress prompts many to underspend super</h2> For the first time, many Australians are entering retirement with significant super balances: Australians are retiring with an average super balance of more than A$200,000, and couples with about $300,000. <a href="https://grattan.edu.au/news/balancing-act/">Despite having saved enough to be comfortable</a>, four in five people say planning for retirement is complicated, and 60% don’t think their retirements will be financially stress-free. Few retirees draw down on their retirement savings as intended. In fact, many are actually net savers – their savings continue to grow for decades after they retire. <a href="https://grattan.edu.au/report/simpler-super/">Our analysis</a> of the <a href="https://www.abs.gov.au/participate-survey/household-survey/survey-income-and-housing">ABS Survey of Income and Housing</a> shows for those aged 60-64 in 2003-04, average super balances had grown by 37% in real terms by the time they were aged 76-80 in 2019-20. And their average net wealth, which excludes the equity in their home, grew by 14% over the same period. Australia’s <a href="https://www.apra.gov.au/quarterly-superannuation-performance-statistics-highlights-september-2024">$4 trillion</a> compulsory superannuation system is turning into a massive inheritance scheme. That’s not how super was supposed to work. <h2>Retirees are given too little guidance</h2> The super system makes most big decisions for working Australians, such as how much to contribute or how it’s invested. But once we retire there is little guidance about how to use our funds. More than four in five retirees are steered into account-based pensions. But partly because they’re anxious not to outlive their savings, this group manages their spending very cautiously. While on average, an Australian woman aged 65 today can expect to live until 88, they also have a one-in-five chance of either dying before age 81 or of making it to 94. Half of those retirees who use an account-based pension draw their super at legislated minimum rates, which if followed, leave 65% of super balances unspent by average life expectancy. This widespread use of account-based pensions makes Australia a global outlier. Retirees in most rich countries are automatically given – or otherwise strongly encouraged to choose – <a href="https://www.oecd.org/en/publications/2023/12/pensions-at-a-glance-2023_4757bf20.html">an income guaranteed to last their entire lives</a>. Research suggests having an income that is guaranteed to last until death <a href="https://www.researchgate.net/profile/Keith-Bender/publication/23647866_What_Makes_Retirees_Happy/links/0046353578c678a403000000/What-Makes-Retirees-Happy.pdf">can reduce stress</a> and <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3875802">boost retirees’ spending</a>. <h2>Government could steer retirees into annuities</h2> Our report argues retirees should be encouraged to use 80% of their super balance above $250,000 to purchase an annuity. The government could embed this pre-set guidance throughout the retirement income system. It could be included in all relevant communications with retirees from super funds, and especially at the point of retirement. <a href="https://researchportalplus.anu.edu.au/en/publications/default-and-naive-diversification-heuristics-in-annuity-choice">Research shows</a> that retirees tend to choose the option put in front of them. The remaining super balance – $250,000, plus the remaining 20% of any savings above that level – would continue to be drawn down via an account-based pension. Retirees would still have to access their super for large purchases if needed. Using some super to buy an annuity could boost expected retirement incomes by up to 25%, compared to solely drawing on an account-based pension at legislated minimum rates. And it would ensure that the bulk of retirees’ incomes, irrespective of their super balances, would be guaranteed to last the rest of their lives. <hr /> <iframe id="TYMjG" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/TYMjG/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> <h2>Annuities should be provided by government, not super funds</h2> But steering retirees into annuities offered via super funds is unlikely to work. Super funds <a href="https://www.superreview.com.au/news/superannuation/asfa-urges-against-cipr-longevity-component">have resisted</a> previous attempts by government to <a href="https://consult.treasury.gov.au/development-of-the-framework-for-comprehensive-income-products-for-retirement">require them to offer annuities to retirees</a>. Many people also struggle to understand and compare annuities. They often find it difficult to switch to a better deal later even if they can spot one. Recent <a href="https://www.fca.org.uk/publications/market-studies/retirement-income-market-study">experience in the UK</a> showed when required to purchase an annuity, most people simply took what their fund was offering and often got a poor deal. Designing a regulatory regime that overcomes these issues is a huge challenge. The best option, therefore, is for the government to directly offer annuities. It should offer all retirees a simple lifetime annuity as the baseline option. The government could also offer alternatives including investment-linked annuities, where payments are guaranteed for life, but payments could vary based on investment returns. Priced fairly, and managed by an independent agency, a government annuity would encourage there take-up. Retirees would be more confident that they’re getting a good deal. Annuity payments would be made from the pool of capital created by annuity purchases, with these investments managed by the Future Fund. Under reasonable assumptions we project the government annuity provider could be managing assets totalling 2.5% of GDP by 2040. Superannuation offers Australians the promise of a more comfortable and stress-free retirement. Government-offered annuities can help turn that dream into reality. Esther Suckling made substantial contributions to the research underpinning this article.<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/247383/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> and <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> 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/superannuation-is-complicated-a-guaranteed-government-income-in-retirement-would-be-simpler-247383">original article</a>. </div>

Money & Banking

Aussie drivers urged to cash in on $140 million in unclaimed funds

The NSW government has urged Sydney motorists to access its toll road relief scheme, with $140 million left unclaimed since the cost-of-living support measure was introduced last year. Drivers who spend more than $60 in tolls weekly can claim the excess back under the "toll cap" introduced by the Minns government to help highly-tolled residents in Western Sydney. On Monday, Roads Minister John Graham said that while $75 million had already been paid to motorists, there's still $140 million yet to be claimed. “I want to remind motorists to get on to the Service NSW website and claim what they are entitled to in relief,” Graham said in a statement. Around 720,000 drivers are eligible for a slice of the payments. Over the past year, more than 276,000 claims were paid since the scheme was introduced, with an average claim of $277, according to the government. There were 115 suburbs where the average claim was $300 or more, including Parramatta, Lidcombe, Schofields, Westmead, Toongabbie, Merrylands and Auburn. “We know people are doing it tough and the toll cap is making it just that little bit fairer for drivers that heavily rely on the toll roads,” Graham said. He also added that reform talks with private toll road companies are still ongoing. In December, the government struck an in-principle deal with Transurban, a toll road operator, for a network-wide pricing system in attempt to ease the impact of toll payments on motorists. “The NSW government is progressing with toll reform to make tolls fairer overall,” Graham said on Monday. Image: Rose Marinelli / Shutterstock.com

Money & Banking

NSW Government refunds millions of Covid fines

Millions of dollars in fines dished out for breaches of Covid restrictions in NSW are set to be refunded, while close to 24,000 penalty notices will be officially erased. The announcement of the statewide refund by the NSW Fines Administration Commissioner on Tuesday came after legal advice cast doubt on the legal validity of the penalties handed out during Covid lockdowns. In total, more than $5.5 million will be handed back to those who have made either a full or partial payment towards paying off a Covid fine. Those in line for money, or with outstanding penalties, will be contacted by Revenue NSW within days. “Following representations made to the Commissioner of Police and myself concerning the validity of COVID-19 penalty notices, I have decided to exercise my statutory authority and withdraw these notices,” Fine Administration Commissioner Scott Johnston said. “Revenue NSW will be reaching out to all affected customers to support them through the finalisation of their matters.” At the height of the pandemic, the state government claimed they introduced the public health orders to "protect the community". Some fines have already been withdrawn, as in 2022 the Commissioner withdrew about 36,000 penalty notices tied to Covid-related offences because the information on them “made it difficult” for recipients to understand their offence. The remaining 23,539 penalty notices were believed to have provided a clearer explanation and were not withdrawn, but after further legal advice and consideration, it was considered “appropriate” to withdraw them too. Image credits: Xinhua News Agency/Shutterstock Editorial

Legal

The government wants to keep cash alive for buying essentials. Here’s why it’s such a challenge for businesses

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/steve-worthington-138">Steve Worthington</a>, <a href="https://theconversation.com/institutions/swinburne-university-of-technology-767">Swinburne University of Technology</a> Cash usage has <a href="https://www.rba.gov.au/publications/bulletin/2023/jun/cash-use-and-attitudes-in-australia.html">fallen off a cliff</a> in Australia, but the federal government says it must have a future. So, it’s going to mandate one. The Australian government will require businesses to accept cash for essentials such as groceries and fuel. Some (yet to be determined) small businesses will be exempt. According to <a href="https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/ensuring-future-cash-and-next-steps-phasing-out-cheques">Treasury</a>, losing cash as a means of payment would leave too many people behind: <blockquote> Around 1.5 million Australians use cash to make more than 80% of their in‑person payments. Cash also provides an easily accessible back‑up to digital payments in times of natural disaster or digital outage. </blockquote> In its announcement on Monday, Treasury pointed to what had already been achieved with similar schemes in other countries such as Spain and Norway, and a range of US states. It’s an honourable cause. There are, however, some aspects of life in Australia that will present unique challenges for achieving it. <h2>Why does using cash cost so much?</h2> Some merchants in Australia already refuse to accept cash as a means of payment. That means relying entirely on digital payment methods such as bank cards and mobile wallets. It mightn’t be immediately obvious why some businesses don’t like cash. But for many, it’s the most costly payment method to accept. While cash transactions don’t come with a surcharge fee like bank cards, they do carry a wide range of other hidden costs. Businesses typically need to keep a “float” of cash in their tills overnight, so that next day’s early customers can be given change if needed. This float needs to be regularly updated and rebalanced with appropriate currency so the correct change can always be given. Businesses also have to make sure no cash goes missing during their opening hours, count their cash take at the end of each day, make sure it is secure on their premises, and make periodic physical deposits into their bank account. Both maintaining a float and making deposits can involve unpredictable trips to a bank branch or post office throughout the week. <h2>Things are getting harder</h2> For individuals and businesses, getting cash into and out of a bank account is becoming more of a challenge. And if you’re in regional or remote Australia, the nearest location where you can do so may be an hours-long drive away. The most recent <a href="https://www.apra.gov.au/authorised-deposit-taking-institutions-points-of-presence-statistics">figures</a> from the Australian Prudential Regulation Authority (APRA) show that across Australia since 2017, the number of ATMs has fallen by about 60% and the number of bank branches by 41%. Many remaining bank branches have reduced their hours, and some have even stopped dealing in cash entirely, especially in rural and regional areas. Moving cash around the country isn’t getting any easier or cheaper. The dominant provider of cash-in-transit services, Armaguard, has been under <a href="https://theconversation.com/future-of-cash-secured-for-now-as-banks-and-retailers-bail-out-armaguard-233087">sustained financial pressure</a> in recent years. Earlier this year, it secured a deal with Australia’s big four banks and some of its other major customers to receive a $50 million bailout. Some countries facing similar situations – <a href="https://www.link.co.uk/helping-you-access-cash/banking-hubs">including the UK</a> – have persuaded their banks to fund the idea of “banking hubs”. Typically under this model, a location is identified in a regional community and banks collectively share the space, with each bank having one day a week in residence so that nobody is excluded from these services. <h2>Could a regional branch levy help?</h2> Also this month, Treasury proposed a <a href="https://www.afr.com/politics/federal/banks-face-new-levy-to-keep-rural-branches-open-20241115-p5kqwu">new regional services levy</a>, to support what should be the minimum level of banking services in regional areas. Banks with a relatively large regional presence would be cross subsidised by a proportional levy on banks with relatively fewer services in these areas or none at all. This funding would help banks sustain the number of branches, their opening hours and their ATMs. Under the proposal, banks that fell short of baseline requirements could purchase credits from others that did. The reasoning behind these measures is that like <a href="https://www.transparency.gov.au/publications/communications-and-the-arts/australian-postal-corporation/australia-post-annual-report-2022-23/other-important-information/community-service-obligations">Australia Post</a>, banks should have a formal community service obligation. That is, a baseline of minimum services that must be provided. <h2>Questions still to answer</h2> In its <a href="https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/ensuring-future-cash-and-next-steps-phasing-out-cheques">media release</a>, Treasury only gave a big picture view of what they wanted to achieve. There are still many questions that need to be resolved before any of its plans can become legislation. Some concern where and how to target support. If regionally focused, how should regional be defined? Which areas and towns prioritised? How should the banks and other financial services providers be required to help support cash use? Exactly which businesses will be affected – and which exempt – must also be clearly defined, along with any enforcement measures. And there is likely to be robust debate over what exactly constitutes the “essentials” for which merchants will be mandated to accept cash payment.<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/243919/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/steve-worthington-138">Steve Worthington</a>, Adjunct Professor, <a href="https://theconversation.com/institutions/swinburne-university-of-technology-767">Swinburne University of Technology</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/the-government-wants-to-keep-cash-alive-for-buying-essentials-heres-why-its-such-a-challenge-for-businesses-243919">original article</a>. </div>

Money & Banking

"Disgraceful": Government red tape causes funeral to be cancelled

A local council has cancelled a funeral just 24 hours before it was set to take place due to government red tape. Ever since Shellharbour local Judy passed away, her brother Ron had been working hard to give her a decent send off. However, less than one day before her planned funeral, the Shellharbour Council cancelled the service over an unpaid burial fee. Ron had been liaising with two government agencies to get payment to council for the burial, which <a href="https://9now.nine.com.au/a-current-affair/sydney-council-cancels-funeral-after-government-fails-to-pay-burial-fee-on-time/60cfa883-6a45-4ff7-badd-1a2e4c52b6aa" target="_blank" rel="noopener">A Current Affair</a> said was a matter of one government organisation waiting for a simple sign off from another government agency. Confirmation of the payment came through just one day after the funeral should have gone ahead. Ron was left heartbroken over the cancellation and said the council was "very disrespectful" in their dealings, and said he is owed an apology. "Disgraceful in fact. Low-life mongrels to do that to any family in this sort of situation," Ron told ACA. He says the most devastating part was calling family one by one, including Judy's intellectually disabled son, to deliver the news, as he recalled, "He was in tears. I had to get his support worker over just to calm him down." Shellharbour City Council told A Current Affair via email it was "unable to grant interment rights which are legally required before a burial because the fee hadn't been paid". They went on to say in a statement, "Shellharbour City Council acknowledges the complexity of the burial process and apologises for the hurt the family has experienced." Image credits: A Current Affair

Legal

Offering end of life support as part of home care is important – but may face some challenges

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/jennifer-tieman-378102">Jennifer Tieman</a>, <a href="https://theconversation.com/institutions/flinders-university-972">Flinders University</a> Earlier this month, the government announced <a href="https://theconversation.com/the-government-has-a-new-plan-for-residential-aged-care-heres-whats-changing-238765">major changes</a> to aged care in Australia, including a A$4.3 billion <a href="https://theconversation.com/what-the-governments-home-care-changes-mean-for-ageing-australians-238890">investment in home care</a>. Alongside a shake up of home care packages, the Support at Home program will include an important addition – an <a href="https://www.health.gov.au/sites/default/files/2024-09/support-at-home-fact-sheet.pdf">end of life pathway</a> for older Australians. This pathway will allow access to a <a href="https://www.health.gov.au/our-work/support-at-home/features">higher level</a> of in-home aged care services to help Australians stay at home as they come to the end of their life. Specifically, it will provide an extra A$25,000 for palliative support when a person has three months or less left to live. This is a positive change. But there may be some challenges to implementing it. <h2>Why is this important?</h2> Older people have made clear their preference to remain in their homes as they age. For <a href="https://journals.sagepub.com/doi/10.1177/0269216313487940">most people</a>, home is where they would like to be during their last months of life. The space is personal, familiar and comforting. However, data from the <a href="https://www.abs.gov.au/statistics/research/classifying-place-death-australian-mortality-statistics">Australian Bureau of Statistics</a> shows most people who die between the ages of 65 and 84 die in hospital, while most people aged 85 and older die in residential aged care. This apparent gap may reflect a lack of appropriate services. Both palliative care services and GPs have an important role in providing medical care to people living at home with a terminal illness. However, being able to <a href="https://grattan.edu.au/wp-content/uploads/2014/09/815-dying-well.pdf">die at home</a> relies on the availability of ongoing support including hands-on care and assistance with daily living. Family members and friends often provide this support, but this is not always possible. Even when it is, carers may <a href="https://pubmed.ncbi.nlm.nih.gov/38533612/">lack confidence and skills</a> to provide the necessary care, and may not have enough support for and respite from their carer role. The palliative care funding offered within Support at Home should help an older person to remain at home and die at home, if that is their preference. Unless someone dies suddenly, care needs are likely to increase at the end of a person’s life. Supports at home may involve help with showering and toileting, assessing and addressing symptoms, developing care plans, managing medications, wound dressing, domestic tasks, preparing meals, and communicating with the person’s family. Occupational therapists and physiotherapists can assist with equipment requirements and suggest home modifications. End of life supports may also involve clarifying goals of care, contacting services such as pharmacists for medications or equipment, liaising with organisations about financial matters, respite care or funeral planning, as well as acknowledging grief and offering spiritual care. But we don’t know yet exactly what services the $25,000 will go towards. <h2>What do we know about the scheme so far?</h2> The Support at Home program, including the end of life pathway, is scheduled to start from <a href="https://www.health.gov.au/sites/default/files/2024-09/support-at-home-fact-sheet.pdf">July 1 2025</a>. We know the funding is linked to a prognosis of three months or less to live, which will be determined <a href="https://www.abc.net.au/news/2024-09-15/new-payment-aims-to-make-it-easier-for-people-to-die-at-home/104347984">by a doctor</a>. Further information has indicated that an older person can be referred to a <a href="https://www.health.gov.au/our-work/support-at-home/features">high-priority assessment</a> to access the end of life pathway. We don’t know yet what this means, however they don’t need to be an existing Support at Home participant to be eligible. The pathway will allow 16 weeks to use the funds, possibly to provide some leeway around the three-month timeline. Although more details are coming to light, there are still some things which remain unclear. Home care providers will be looking for details on what can be covered by this funding and how they will work alongside primary care providers and health-care services. Older people and their families will want to know the processes to apply for this funding and how long applications will take to be reviewed. Everyone will want to know what happens if the person doesn’t die within three months. <h2>Some challenges</h2> Ready availability of appropriate supports and services will be crucial for older people accessing this pathway. Home care providers will therefore need to assess how an end of life pathway fits into their operational activities and how they can build the necessary skills and capacity. Demand for nurses with palliative care skills and allied health professionals is likely to increase. Providing end of life care can be <a href="https://pubmed.ncbi.nlm.nih.gov/33096682/">especially taxing</a> so strategies will be needed to prevent staff burnout and encourage self-care. How pathways are implemented in rural and remote areas and in different cultural and community groups will need to be monitored to ensure all older people benefit. Effective coordination and communication between home care, primary care and specialist palliative providers care will be key. Digital health systems that connect the sectors could be helpful. Family engagement will also be very important. Escalation pathways and referral pathways should be established to enable appropriate responses to emergencies, unexpected deterioration, and family distress. Finally, <a href="https://bmcpalliatcare.biomedcentral.com/articles/10.1186/s12904-023-01155-y">accurately determining</a> when someone will die can be difficult. Knowing when the last three months of life starts may not be easy, particularly where frailty, cognitive issues and multiple health concerns may be present. This might mean some people are not seen as being ready for this pathway. Others may not be willing to accept this prognosis. An older person may also be expected to live with a terminal illness for many months or years. Their palliative care needs would not be met under this pathway. Despite these challenges, the announcement of an end of life pathway within the home care program is timely and welcome. As a population we are living longer and dying older. More details will help us be better prepared to implement this scheme.<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/239296/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/jennifer-tieman-378102">Jennifer Tieman</a>, Matthew Flinders Professor and Director of the Research Centre for Palliative Care, Death and Dying, <a href="https://theconversation.com/institutions/flinders-university-972">Flinders 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/offering-end-of-life-support-as-part-of-home-care-is-important-but-may-face-some-challenges-239296">original article</a>. </div>

Retirement Life

"People are losing faith": Nat Barr takes aim at Albanese government

Prime Minister Anthony Albanese has defended his record on economic management as the Labor party's primary vote continues to slip in the polls against Peter Dutton ahead of next year's election. This week's Newspoll shows that Labor's primary vote has slumped to 31 per cent, the lowest it has been since the 2022 election, while the Coalition remains steady at 38 per cent. On Thursday, Sunrise host Nat Barr told the Prime Minister that while on her way to the studio she had spoken to a Labor-voting taxi driver who said he was "losing faith" in Albanese's leadership, as things were "too expensive". “This is your biggest problem, people like this cabby are losing faith. How do you respond to that?” Barr asked Albanese. Albanese defended his choices by pointing out that ABS figures released on Wednesday showed annual inflation rates at 2.7 per cent in August, down from 3.5 per cent in July, and the lowest it has been since August 2021. “Cost-of-living pressures are real, but that’s why we have engaged with responsible economic management in order to bring inflation down whilst we have been delivering cost-of-living relief,” he said. “Yesterday’s figures show the headline inflation is down from 3.5 to 2.7 (per cent), it is a good outcome. “There’s more work to be done, but we’ve done that whilst we have delivered a tax cut for that cabby who would have got nothing under the previous scheme.” Albanese added that energy bill relief, cheaper childcare, and fee-free TAFE places were also making a difference to cost-of-living pressures. However, Barr hit back and said that the cost-of-living measures such as the energy rebate were “artificial” as the rebate would end. “The RBA has said, this does not mean that inflation is under control. The power rebate is going to end and that’s keeping it at one level at the moment, that’s why they look at underlying inflation — they take out volatile stuff,” Barr said. “So, what do you say about inflation still being at this level?” she asked. “What I say is if you exclude volatile, the figures released yesterday, which are known as month-by-month, but they’re year-to-year … that figure is down from 3.7 down to 3 (per cent). That’s a remarkable drop,” Albanese responded. “The Reserve Bank Australia’s target band is 2 to 3 (per cent). Every single one of the figures yesterday that were released, whether it was headline, excluding volatile, mean, all of them saw significant drops in inflation. “Inflation is half what we inherited and one-third of where it peaked …That is in part because of the back-to-back budget surpluses that we have delivered that in part is, yes, energy bill relief, but also what we’ve done in cheaper childcare, fee-free TAFE, the deliberate policy design to help people whilst putting that downward pressure on inflation,” he said. Image: Sunrise

What the government’s home care changes mean for ageing Australians

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/tracy-comans-696663">Tracy Comans</a>, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> and <a href="https://theconversation.com/profiles/frances-batchelor-2209350">Frances Batchelor</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> The Albanese government has this week announced it will introduce one of the <a href="https://www.health.gov.au/ministers/the-hon-anika-wells-mp/media/once-in-a-generation-aged-care-reforms">largest reforms</a> to Australia’s aged-care sector to date. The package includes a A$4.3 billion investment in home care, now called “<a href="https://www.health.gov.au/our-work/support-at-home">Support at Home</a>”, to come into effect from July 2025. This reflects both the desire of many people to remain living at home as they age, and the government’s desire to reduce the costs of residential aged care. So what changes is the government making to home care packages? And what will these changes mean for ageing Australians? <h2>Reducing waiting times</h2> One of the major complaints about the current home care system is the long waiting times. Estimates suggest there’s a <a href="https://www.gen-agedcaredata.gov.au/getmedia/447b425c-63d6-4b96-a1fc-4dac805066ba/Home-Care-Packages-Program-data-report-1-January-%E2%80%93-31-March-2024">6–to-12-month wait</a> for the higher level 3 and 4 home care packages. For people with the highest needs, this is far too long. As of March this year, around <a href="https://www.gen-agedcaredata.gov.au/getmedia/447b425c-63d6-4b96-a1fc-4dac805066ba/Home-Care-Packages-Program-data-report-1-January-%E2%80%93-31-March-2024">45,000 people</a> were waiting for any level of home care. An additional 14,000 were already receiving a package, but on a lower level of home care than they were entitled to. With additional funding, the new system will <a href="https://www.health.gov.au/ministers/the-hon-anika-wells-mp/media/once-in-a-generation-aged-care-reforms">support more participants</a>. It aims to shorten wait times to <a href="https://www.health.gov.au/sites/default/files/2024-09/support-at-home-fact-sheet.pdf">an average of three months</a> from July 2027. <h2>Changes to services</h2> The new system will replace the current four levels of home care packages with <a href="https://www.health.gov.au/ministers/the-hon-anika-wells-mp/media/once-in-a-generation-aged-care-reforms">eight classifications</a> of funding for services. When participants are assessed, they will be assigned the most suitable category. There’s currently very limited information on what these classifications are, but the idea is they will provide more targeted services. A number of short-term supports will also be available. These include assistive technology (such as mobility aids) and home modifications. Some people will be able to access 12 weeks of restorative care – a more intensive program designed to build function after injury or illness – as well as palliative care support. The way different types of services are subsidised is also changing. Previously, the same means-tested co-contribution applied regardless of the type of service. Under the new system, services are categorised into clinical care (for example, physiotherapy or wound care), independence (such as help with bathing or cooking) and everyday living (for example, gardening or home maintenance). The new reforms fully subsidise clinical services regardless of income, whereas independence and everyday living services will attract co-contributions based on means testing. For example, <a href="https://www.health.gov.au/sites/default/files/2024-09/case-studies-support-at-home.pdf">a self-funded retiree</a> would pay nothing out of pocket for physiotherapy, but would pay 50% for help with showering and 80% towards gardening costs. A full pensioner would also pay nothing for physiotherapy, but pay 5% for help with showering and 17.5% of the cost of gardening. This is a positive change. Our research has previously highlighted a tendency for people with home care packages to choose everyday living services <a href="https://onlinelibrary.wiley.com/doi/full/10.1155/2023/4157055">such as gardening</a> and cleaning and refuse clinical care such as allied health and nursing as these types of services were more expensive. These changes should make older people more likely to choose allied health and clinical care services, which will help them maintain their function and stay fitter for longer. <h2>Some challenges</h2> For the government’s reforms to deliver faster and better support at home, a number of issues need to be addressed. As people stay at home for longer, we also see that these <a href="https://academic.oup.com/ageing/article/52/5/afad058/7147101">people are frailer</a> and have more health conditions than in the past. This requires a different and more highly skilled home care workforce. The current <a href="https://www.health.gov.au/sites/default/files/documents/2021/10/2020-aged-care-workforce-census.pdf">home care workforce</a> consists largely of personal care and domestic support workers alongside a much smaller skilled workforce of registered nurses and allied health professionals. But with the changing profile of people receiving care at home, there will need to be a greater focus on maintaining functional capacity. This might mean more allied health input will be required, such as from physiotherapists and occupational therapists. It’s difficult to source an appropriately skilled workforce across the sector, and almost impossible in <a href="https://www.ruralhealth.org.au/sites/default/files/publications/fact-sheet-allied-health.pdf">rural and remote areas</a>. Alternative models, such as training personal care workers to act as allied health assistants, and effectively using technology such as telehealth, will be necessary to meet demand without compromising on quality of care. One example of the need for upskilling in specific areas relates to caring for people with dementia. The majority of people who are living with dementia at home receive care from family carers, supported by home care workers. It’s vital that these care workers have adequate knowledge and skills specific to dementia. However, research has shown the home care workforce may <a href="https://pubmed.ncbi.nlm.nih.gov/31646701/">lack the knowledge and skills</a> to provide best-practice care for people living with dementia. Specialised <a href="https://onlinelibrary.wiley.com/doi/10.1002/gps.6140">dementia training</a> for home care workers is effective in improving knowledge, attitudes and sense of competence in providing care. It should be rolled out across the sector. <h2>What about unpaid care at home?</h2> Unpaid carers, such as family members, provide <a href="https://www.pmc.gov.au/resources/draft-national-strategy-care-and-support-economy/goal-1-quality-care-and-support/support-for-informal-carers">significant amounts of care</a> for older people. The value of this unpaid care is estimated to be in the billions. As older people stay at home for longer, this is set to increase even further. However, carers with high care burdens are particularly vulnerable to <a href="https://www.sciencedirect.com/science/article/pii/S2352827316300283#s0025">poor physical and mental health</a>. Without adequate support, we may find extra caring pressures lead to a breakdown in caring relationships and an increase in other health-care costs for both the carer and care recipient. So we need to ensure carers have adequate financial, psychological and practical support. But the currently available detail on the reforms doesn’t indicate this has been adequately addressed. With careful implementation and ongoing evaluation, these reforms have the potential to significantly enhance the home care system. However, their success will depend on addressing workforce challenges, ensuring adequate support for unpaid carers, and maintaining a focus on the holistic needs of older Australians. More information about Support at Home is <a href="https://www.health.gov.au/our-work/support-at-home/about">available online</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/238890/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/tracy-comans-696663">Tracy Comans</a>, Executive Director, National Ageing Research Institute; Professor, Centre for Health Services Research, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> and <a href="https://theconversation.com/profiles/frances-batchelor-2209350">Frances Batchelor</a>, Director Clinical Gerontology & Senior Principal Research Fellow, National Ageing Research Institute, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</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/what-the-governments-home-care-changes-mean-for-ageing-australians-238890">original article</a>. </div>

Legal

The biggest faux pas for self-funded retirees

Whether you have been retired for some time or are still looking forward to the time you can step back, chances are there are important considerations you may have overlooked. From planning and pensions to family and housing, these are the biggest self-funded retirement mistakes I come across, and some insights into how to avoid repeating them: <ol> <li>Lack of a plan</li> </ol> Not having a retirement plan is perhaps the most basic faux pas, but often the most costly. A detailed plan should cover things like: <ul> <li>When you AND your partner will retire </li> <li>Where you will live (you may want to downsize, relocate, seek assisted living)</li> <li>Anticipated living costs (living situation, health, lifestyle)</li> <li>How you will spend your time (hobbies, travel, volunteering, time with family)</li> <li>Strategies to maximise investments and superannuation</li> <li>Tax minimisation strategies</li> </ul> Remember: failing to plan = planning to fail. <ol start="2"> <li>Poor planning</li> </ol> Having a plan is the starting point, but it won’t get you far if it’s incomplete, not updated as circumstances change, or omits critical factors. For couples, not considering age differences is a big mistake. One partner retiring before the other can have big shifts on financial and tax dynamics and even the relationship itself. Then there is end-of-life care, particularly if the younger partner is still working. Not building in a safety buffer is another no-no. Too many retirees have been caught out by the high inflation of recent years, having calculated their anticipated income needs on much lower living costs. Balance short-term and long-term goals: being overly conservative early on can limit your financial situation down the track. And no plan is complete without contingencies for worst case scenarios – insurances, protections, back-up options. <ol start="3"> <li>Insecure housing </li> </ol> Government data has long shown major differences in quality of life for retirees who own their home versus those who don’t. Homelessness or insecure housing, the mercy of the rental market, and inability to customise your home as you age or if you need specialised support with disability or health issues are some of the challenges renters face. Furthermore, public estimates of how much the average Australian needs to retire typically assume home ownership – meaning rent is not part of that calculation. That’s a huge living cost you may not have factored into your retirement planning. <ol start="4"> <li>Unclaimed pensions</li> </ol> Contrary to popular belief, self-funded retirement and claiming a pension are not mutually exclusive. You may be eligible for a part-pension, calculated pro-rata according to the value of your assets and other income. Claiming a part-pension, no matter how small it may be, reduces how much income you need to draw down from super – making it last longer. Don’t fall into another common trap when applying – overestimating your assets. It’s easy to assume your non-monetary assets are worth more than what they really are, reducing how much pension you receive or negating your eligibility altogether. <ol start="5"> <li>Depleted Bank of Mum and Dad</li> </ol> With home ownership increasingly out of reach for younger adults, the Bank of Mum and Dad is often sought to bridge the gap. How you do so will impact your own situation. Giving more than you can afford can leave you overstretched. Missed loan repayments could see you fall behind on your own bills. Not putting agreements in writing can lead to disputes down the track. Having a loan guarantee called in could see you homeless. Be wise about decisions you make here and don’t let heartstrings cloud your judgement. <ol start="6"> <li>Suffering in silence</li> </ol> Elder abuse is a sad but significant problem. Given they have money in the bank, self-funded retirees are often the most vulnerable. Its effects can be far-reaching, impacting your mental and physical health, financial wellbeing, social interactions, and quality of life. Be aware of <a href="https://www.oversixty.com.au/finance/retirement-income/are-you-a-victim-of-elder-abuse-without-even-realising-it">the signs that something isn’t right</a>. If you recognise it happening to you – or someone you know – speak up and seek help. <ol start="7"> <li>Forgoing professional advice</li> </ol> How much of the above details did you already know? Chances are, not all of them. And that’s just the tip of the iceberg. Money is a complicated business and you simply don’t know what you don’t know, which is why seeking independent, tailored advice from a professional is so important. A good financial advisor can help you identify new opportunities and manage risks you may not have considered, limit expenses and also work with your accountant to minimise your tax. Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a> Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754. Image credits: Shutterstock

Retirement Income

Even after the government’s aviation crackdown, Australia will lag behind on flyers’ rights

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/ian-douglas-2932">Ian Douglas</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> When it comes to consumer protections for airline passengers, Australia has long been dragging its feet. The limited protections we do have rely heavily on the general <a href="https://consumer.gov.au/index.php/australian-consumer-law">Australian Consumer Law</a>. The “consumer guarantees” provided in this law only require services to be delivered in the arguably vague framework of a “reasonable time”. That might be okay if we’re just getting a sofa delivered from a furniture retailer. The cost of a late delivery is low. But these guarantees were not tailored to the unique impacts delayed or cancelled flights can have on travellers. Australia’s lack of aviation-specific protections has long been a severe <a href="https://www.accc.gov.au/system/files/Airlines%20Terms%20and%20Conditions%20Report.pdf">pain point</a> for flyers, only heightened by pandemic disruption. The government’s much-awaited <a href="https://www.infrastructure.gov.au/infrastructure-transport-vehicles/aviation/aviation-white-paper">Aviation White Paper</a>, released in full on Monday, promised to address this issue. At the heart of the reforms, Australia will get a new aviation ombud scheme, and a new charter of customer rights for passengers. The recognition that new protections are needed is a step in the right direction. But this once-in-a-generation white paper missed the chance to achieve far more, by moving Australia to the style of consumer protection that have now been offered for 20 years in <a href="https://www.airhelp.com/en-int/ec-regulation-261-2004/">Europe</a>. <h2>Why is air travel unique?</h2> Airline customers have a reasonable expectation of arriving at their destination, at (or close to) the time published by the airline in its schedule at the time the reservation was paid and ticketed. If this can’t be achieved, they should at least arrive at some amended time that was advised far enough in advance to allow related reservations and bookings to be adjusted. Air travel has to be punctual because it doesn’t have any substitutes. On even a modest deadline, driving from Perth or even Sydney to Melbourne, for example, is not a comparable option. And a passenger’s options to adapt their travel plans diminish as the departure date approaches. In the final days before travel, hotel cancellation deadlines pass and alternative connecting flight options sell out or spike in price. In some cases, travelling to a specific event can become pointless for a passenger if a delay is lengthy enough. <h2>Australia is playing catch-up</h2> In contrast with Australia, aviation-specific protections have long existed in many other developed economies. In the European Union (EU), for example, <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=LEGISSUM%3Al24173">regulations</a> make clear that airlines have specific obligations and responsibilities in the event of delays, cancellations and denied boardings. This includes the <a href="https://www.airhelp.com/en-int/ec-regulation-261-2004/">right to compensation</a> of up to €600 (A$988). These protections and the levels of compensation payable for failure to meet specified requirements for different kinds of flights are comprehensively legislated. Canada has a <a href="https://laws-lois.justice.gc.ca/eng/regulations/SOR-2019-150/index.html">slightly different approach</a> – smaller regional carriers have different obligations to mainline operators. But as with the European regulation, it imposes an obligation to get the passenger to the ticketed destination, or to refund the ticket if the journey has become pointless. The absence of such legislated protections in Australia means we typically have to rely on the goodwill of the airline when things go wrong. <h2>Real action has been delayed</h2> The centrepiece proposal of the <a href="https://www.infrastructure.gov.au/infrastructure-transport-vehicles/aviation/aviation-white-paper">white paper</a> is to create a new ombud scheme with “the power to direct airlines and airports to provide remedies to consumers and investigate customer complaints about airlines’ and airports’ conduct”. This will replace the existing <a href="https://www.airlinecustomeradvocate.com.au/General/Default.aspx">Airline Customer Advocate</a>. A new charter of customer rights, to be produced by the scheme, will aim to give flyers “greater certainty about what they can expect when flights are cancelled and delayed” and require airlines to be more transparent about their performance. The white paper noted the poor on-time performance of Australian carriers. It also pointed out that the Australian Competition and Consumer Commission <a href="https://www.accc.gov.au/system/files/Airlines%20Terms%20and%20Conditions%20Report.pdf">identified</a> problems with consumer protections for air travel in Australia as far back as 2017. But its proposals offer no real quantifiable or enforceable improvements to consumer rights. Despite the well-established models in comparable countries – many of which have <a href="https://theconversation.com/if-australia-had-an-aviation-ombudsman-passengers-could-get-compensation-for-cancelled-flights-235679">followed the EU’s lead</a> – Australians will need to wait for yet another discussion process to be complete before they see what protections may eventually be introduced. The government’s white paper has largely just kicked the can down the road. At a minimum, passengers on Australian carriers deserve the assurances given to those travelling in and from Europe: in the event of a cancellation or long delay, that they will be transported to their destination on an alternative flight as quickly as possible. They should also be given appropriate meals and accommodation until they can make this onward journey, receive compensation for lengthy delays, and have the option to return home with a full refund if their travel has become pointless.<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/237469/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ian-douglas-2932">Ian Douglas</a>, Honorary Senior Lecturer, UNSW Aviation, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW 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/even-after-the-governments-aviation-crackdown-australia-will-lag-behind-on-flyers-rights-237469">original article</a>. </div>

Domestic Travel

Government launches new campaign to tackle elder abuse

The federal government has launched a new campaign to tackle elder abuse. According to the National Elder Abuse Prevalence Study, one in six older Australians experienced abuse last year, with 61 per cent of victims not seeking for help or advice. The Albanese government will spend $4.8 million on the campaign which includes a series of commercials. Council on the Ageing Australia chief executive Patricia Sparrow said the organisation believed cases were under reported. "That's why we think it's incredibly important to raise this awareness," Sparrow said. "It mostly comes from someone they know, which makes it very difficult for older people to report it or know what to do." Labor senator Jenny McAllister told Sky News: "This is something that the community needs to start thinking about. It's a scourge. "We need to eliminate it and the right place to start is with conversations with people we know and care about." "If you're feeling a little uncertain, if you think something is wrong and you're an older Australian you should speak up about it," she added. With an ageing population, it's important to raise awareness that elder abuse is not just physical violence, but emotional, financial and psychological abuse too. The commercials will run on TV, online and at medical clinics from July 28 and they aim to encourage older people to open up about the poor treatment they receive, including from their children and grandchildren. Attorney-General Mark Dreyfus will formally announce the campaign at the National Elder Abuse Conference in Adelaide on Monday. He said that elder abuse was a shameful and often hidden form of cruelty and mistreatment. "It is ugly, it is unacceptable and it must be eliminated," he said. "It is critical that we continue to work together as a community to promote the rights and safety of older people, and ensure that everyone is able to age with dignity and respect." Images: Nine

Legal

Super funds are using ‘nudges’ to help you make financial decisions. How do they work?

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/fernanda-mata-1533222">Fernanda Mata</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a>; <a href="https://theconversation.com/profiles/breanna-wright-267597">Breanna Wright</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a>, and <a href="https://theconversation.com/profiles/liam-smith-5152">Liam Smith</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a> Late last year the federal government announced <a href="https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/government-unveils-comprehensive-financial-advice">measures</a> to make it easier for Australians to access financial advice. As part of this, the government wants super funds to use “nudges” to get members to engage more with their retirement investments and superannuation, especially when they’re starting work and approaching retirement. While the legislation containing the changes is still in the consultation phase, super funds are <a href="https://www.afr.com/companies/financial-services/super-funds-spend-big-ahead-of-advice-reforms-20240418-p5fkx6">upskilling staff</a> and making other changes to improve customer service or risk a government crackdown. Telling funds to use <a href="https://www.behaviourworksaustralia.org/blog/nudging-what-is-it-and-how-can-we-use-it-forgood">nudge theory</a> to advise on super comes as more than five million Australians are heading towards retirement. <h2>What is nudge theory?</h2> Nudging is used to encourage people to pick the “better” option, without taking away their freedom to choose differently. For example, sending regular reminders to members about the benefits of voluntary contributions can get them to increase the amount they put in. This nudge makes it easier for them to contribute more – the better option – while still allowing them to choose not to. Assistant Treasurer Stephen Jones <a href="https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/government-unveils-comprehensive-financial-advice">explained</a> the government’s changes were needed because so-called “fin-fluencers” were providing unregulated financial advice on social media platforms to Australians unable to pay an adviser. <h2>Helping people protect their interests</h2> There are three ways, supported by research, nudges can help Australians engage with their super. 1. Future self visualisation This involves getting young people to think about their <a href="https://www.halhershfield.com/considering-the-future-self">future selves</a> and visualise their life in retirement. This can help them to recognise the long-term benefits of getting actively involved with their super. Showing fund members how they might look when older by using an ageing filter software, for example, can make this visualisation more real for them and <a href="https://journals.sagepub.com/doi/full/10.1177/23794607231190607">enhance understanding of their future selves, leading to higher engagement</a>. 2. Simplification We all know financial products and superannuation can be complicated. The information and choices presented can lead to <a href="https://thedecisionlab.com/biases/choice-overload-bias">decision paralysis</a>, causing people to delay or opt out of making a decision. By simplifying the process, funds can motivate people to get more engaged with their super. To get people to make voluntary contributions, for example, it might be more effective for funds to recommend <a href="https://siepr.stanford.edu/news/how-simple-nudge-can-motivate-workers-save-retirement">a specific percentage of their salary</a> rather than offering several options. Deciding whether to boost contributions by an extra 3%, 4% or 5% can be overwhelming, especially for people with poor <a href="https://theconversation.com/are-you-financially-literate-here-are-7-signs-youre-on-the-right-track-202331">financial literacy</a>. 3. Language and framing The way options are framed and the language super funds use can significantly impact member engagement. Australians may be more likely to make higher voluntary contributions if they are asked how much they want <a href="https://www.bi.team/press-releases/the-small-nudges-that-could-make-young-people-142000-better-off-in-retirement/">to “invest” in their super </a> instead of how much they want to “contribute” or “add”. The word “invest” encourages people to think about future benefits, motivating them to make higher contributions. How options are labelled can also have an impact on <a href="https://www.bi.team/press-releases/the-small-nudges-that-could-make-young-people-142000-better-off-in-retirement/">member engagement</a> and decision making. For example, highlighting concrete benefits of different voluntary payments, such as “a 4% contribution keeps you above the poverty line”, and “a 10% contribution allows for a comfortable retirement according to Australian standards” can increase how much people are willing to contribute. <h2>Ethical use of nudges</h2> The <a href="https://www.superreview.com.au/news/superannuation/industry-body-backs-super-fund-nudges-though-parameters-need-be-set">Financial Services Council</a> backs the government on getting super funds to nudge members about contributions and investments but says there are limits. Parameters around nudging should be set […] to ensure that the language is appropriate and does not ultimately amount to defaulting. For example, letting a customer know that as they approach retirement, they need to make a decision about what retirement product they wish to utilise would be an acceptable nudge, while contacting a customer to let them know that they will be placed in a product when they retire, would not necessarily be acceptable. The council emphasises the importance of super funds recognising <a href="https://www.superreview.com.au/news/superannuation/industry-body-backs-super-fund-nudges-though-parameters-need-be-set">people’s autonomy</a> when delivering a “soft” or “hard” nudge. Soft nudges are gentle prompts and reminders designed to guide people to make good choices without pressuring them, such as sending an email reminder to review their investment options. Hard nudges are more direct in their guidance. These might include recommending specific investment options. Despite these differences, <a href="https://www.behaviourworksaustralia.org/blog/can-we-have-a-quiet-word-about-behavioural-science">ethical use of nudges</a> should encourage engagement while respecting people’s autonomy by making it easy for them to opt out. The use of nudges presents a valuable opportunity to increase superannuation fund members’ engagement. Whether through future self visualisation, simplification or language framing, ethical nudges can motivate members to take action, leading to greater confidence in navigating the retirement transition and achieving retirement goals.<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/230404/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/fernanda-mata-1533222">Fernanda Mata</a>, Research Fellow, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a>; <a href="https://theconversation.com/profiles/breanna-wright-267597">Breanna Wright</a>, Research fellow, BehaviourWorks Australia, Monash Sustainable Development Institute, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a>, and <a href="https://theconversation.com/profiles/liam-smith-5152">Liam Smith</a>, Director, BehaviourWorks, Monash Sustainable Development Institute, <a href="https://theconversation.com/institutions/monash-university-1065">Monash 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/super-funds-are-using-nudges-to-help-you-make-financial-decisions-how-do-they-work-230404">original article</a>. </div>

Money & Banking

Australians lose $5,200 a minute to scammers. There’s a simple thing the government could do to reduce this. Why won’t they?

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/peter-martin-682709">Peter Martin</a>, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292">Crawford School of Public Policy, Australian National University</a> What if the government was doing everything it could to stop thieves making off with our money, except the one thing that could really work? That’s how it looks when it comes to <a href="https://www.scamwatch.gov.au/types-of-scams">scams</a>, which are attempts to trick us out of our funds, usually by getting us to hand over our identities or bank details or transfer funds. Last year we lost an astonishing <a href="https://www.accc.gov.au/media-release/scam-losses-decline-but-more-work-to-do-as-australians-lose-27-billion">A$2.74 billion</a> to scammers. That’s more than $5,200 per minute – and that’s only the scams we know about from the 601,000 Australians who made reports. Many more would have kept quiet. If the theft of $5,200 per minute seems over the odds for a country Australia’s size, a comparison with the United Kingdom suggests you are right. In 2022, people in the UK lost <a href="https://www.ukfinance.org.uk/system/files/2023-05/Annual%20Fraud%20Report%202023_0.pdf">£2,300</a> per minute, which is about A$4,400. The UK has two and a half times Australia’s population. It’s as if international scammers, using SMS, phone calls, fake invoices and fake web addresses are targeting Australia, because in other places it’s harder. If we want to cut Australians’ losses, it’s time to look at rules about to come into force in the UK. <h2>Scams up 320% since 2020</h2> The current federal government is doing a lot – almost everything it could. Within a year of taking office, it set up the <a href="https://www.accc.gov.au/national-anti-scam-centre">National Anti-Scam Centre</a>, which coordinates intelligence. Just this week, the centre reported that figure of $2.74 billion, which is down 13% on 2022, but up 50% on 2021 and 320% on 2020. It’s planning “<a href="https://treasury.gov.au/consultation/c2023-464732">mandatory industry codes</a>” for banks, telecommunication providers and digital platforms. But the code it is proposing for banks, set out in a <a href="https://treasury.gov.au/sites/default/files/2023-11/c2023-464732-cp.pdf">consultation paper</a> late last year, is weak when compared to overseas. <h2>Banks are the gatekeepers</h2> Banks matter, because they are nearly always the means by which the money is transferred. Cryptocurrency is now much less used after the banks agreed to limit payments to high risk exchanges. Here’s an example of the role played by banks. A woman the Consumer Action Law Centre is calling <a href="https://consumeraction.org.au/wp-content/uploads/2024/02/Joint-submission-CALC-CHOICE-ACCAN-31012024-Scams-Mandatory-code-treasury-consultA.pdf">Amelia</a> tried to sell a breast pump on Gumtree. The buyer asked for her bank card number and a one-time PIN and used the code to whisk out $9,100, which was sent overseas. The bank wouldn’t help because she had provided the one-time PIN. Here’s another. A woman the Competition and Consumer Commission is calling <a href="https://www.accc.gov.au/system/files/Targeting%20scams%202022.pdf">Niamh</a> was contacted by someone using the National Australia Bank’s SMS ID. Niamh was told her account was compromised and talked through how to transfer $300,000 to a “secure” account. After she had done it, the scammer told her it was a scam, laughed and said “we are in Brisbane, come find me”. <h2>How bank rules protect scammers</h2> And one more example. Former University of Melbourne academic <a href="https://www.researchgate.net/publication/377766055_Scams_Blaming_the_Victims">Kim Sawyer</a> (that’s his real name, he is prepared to go public) clicked on an ad for “St George Capital” displaying the dragon logo of St. George Bank. He was called back by a man using the name of a real St. George employee, who persuaded him to transfer funds from accounts at the AMP, Citibank and Macquarie to accounts he was told would be in his and his wife’s name at Westpac, ANZ, the Commonwealth and Bendigo Banks. They lost <a href="https://www.afr.com/wealth/personal-finance/i-lost-2-5m-of-my-super-to-scammers-20240423-p5flzp">$2.5 million</a>. Sawyer says none of the banks – those that sent the funds or those that received them – would help him. Some cited “<a href="https://www.choice.com.au/money/financial-planning-and-investing/stock-market-investing/articles/st-george-capital-investment-scam">privacy</a>” reasons. The Consumer Action Law Centre says the banks that transfer the scammed funds routinely tell their customers “it’s nothing to do with us, you transferred the money, we can’t help you”. The banks receiving the funds routinely say “you’re not our customer, we can’t help you”. That’s here. Not in the UK. <h2>UK bank customers get a better deal</h2> In Australia in 2022, only <a href="https://download.asic.gov.au/media/mbhoz0pc/rep761-published-20-april-2023.pdf">13%</a> of attempted scam payments were stopped by banks before they took place. Once scammed, only 2% to 5% of losses (depending on the bank) were reimbursed or compensated. In <a href="https://www.psr.org.uk/information-for-consumers/app-fraud-performance-data/">the UK</a>, the top four banks pay out 49% to 73%. And they are about to pay out much more. From October 2024, reimbursement will be compulsory. Where authorised fast payments are made “because of deception by fraudsters”, the banks will have to reimburse <a href="https://www.thomsonreuters.com/en-us/posts/investigation-fraud-and-risk/app-fraud-uk">the lot</a>. Normally the bills will be split <a href="https://www.psr.org.uk/news-and-updates/latest-news/news/psr-confirms-new-requirements-for-app-fraud-reimbursement/">50:50</a> between the bank transferring the funds and the bank receiving them. Unless there’s a need for further investigations, the payments must be made within five days. The <a href="https://www.psr.org.uk/media/as3a0xan/sr1-consumer-standard-of-caution-guidance-dec-2023.pdf">only exceptions</a> are where the consumer seeking reimbursement has acted fraudulently or with gross negligence. The idea behind the change – pushed through by the Conservative government now led by UK Prime Minister Rishi Sunak – is that if scams are the banks’ problem, if they are costing them millions at a time, they’ll stop them. <a href="https://www.thepost.co.nz/business/350197309/banks-given-fraud-ultimatum">New Zealand</a> is looking at doing the same thing, <a href="https://www.biocatch.com/blog/mas-shared-responsibility-fraud-losses">as is Singapore</a>. But here, the treasury’s discussion paper on its mandatory codes mentions reimbursement <a href="https://treasury.gov.au/sites/default/files/2023-11/c2023-464732-cp.pdf">only once</a>. That’s when it talks about what’s happening in the UK. Neither treasury nor the relevant federal minister is proposing it here. <h2>Australia’s approach is softer</h2> Assistant Treasurer Stephen Jones is in charge of Australia’s rules. Asked why he wasn’t pushing for compulsory reimbursement here, Jones said on Monday <a href="https://ministers.treasury.gov.au/ministers/stephen-jones-2022/transcripts/interview-mark-gibson-abc-perth">prevention was better</a>. <blockquote> I think a simplistic approach of just saying, ‘Oh, well, if any loss, if anyone incurs a loss, then the bank always pay’, won’t work. It’ll just make Australia a honeypot for these international crime gangs, because they’ll say, well, ‘Let’s, you know, focus all of our activity on Australia because it’s a victimless crime if banks always pay’. </blockquote> Telling banks to pay would certainly focus the minds of the banks, in the way they are about to be focused in the UK. The <a href="https://www.ausbanking.org.au/submissions/">Australian Banking Association</a> hasn’t published its submission to the treasury review, but the <a href="https://consumeraction.org.au/scams-mandatory-industry-codes-consultation-paper/">Consumer Action Law Centre</a> has. It says if banks had to reimburse money lost, they’d have more of a reason to keep it safe. In the UK, they are about to find out. If Jones is right, it might be about to become a honeypot for scammers. If he is wrong, his government will leave Australia even further behind when it comes to scams – leaving us thousands more dollars behind per day.<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/228867/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/peter-martin-682709">Peter Martin</a>, Visiting Fellow, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292">Crawford School of Public Policy, Australian National University</a> Image credits: Getty Images 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/australians-lose-5-200-a-minute-to-scammers-theres-a-simple-thing-the-government-could-do-to-reduce-this-why-wont-they-228867">original article</a>. </div>

Money & Banking

Anthony Albanese's new $925 million pledge

Anthony Albanese has pledged $925 million to help victims of domestic violence flee dangerous situations, in the wake of the recent increase of violence against women. The Prime Minister established the Leaving Violence Program on Wednesday, which will invest $925m over a five year period to help women escape violence at home. Albanese convened an urgent national cabinet meeting after declaring violence against women a “national emergency” following the killings of 27 women across Australia this year. Following the crisis talks, the Prime Minister announced the permanent establishment of the government’s Leaving Violence Payment to assist people experiencing violence with the financial costs of leaving a violent situation. “Those eligible will be able to access up to $5000 in financial support along with referral services, risk assessments, and safety planning. This commitment builds on measures put in place by our government to help address financial barriers to escaping violence,” Mr Albanese said. Australia will also introduce legislation that will ban the creation and distribution of deep fake pornography and the sharing of sexually explicit material using technology such as artificial intelligence. Communications Minister Michelle Rowland said governments around the world were grappling with how to keep online spaces safe. "I think the other important point to note is that as a society, we do need to do more and this is a role not only for government, not only for regulators and civil society, but also for the platforms themselves," she said. "And part of this is putting the emphasis on the platforms to enforce their existing terms of service and where they are not doing that, to examine what are the measures governments can take." The government will also bring forward legislation in early August to outlaw the release of private information online with an intent to cause harm, known as doxxing. Albanese added that violence against women was a "national crisis", saying, "It's an issue for all of us to work together in the national interest to deal with what is a scourge of violence against women that is having a real impact out there, with one every four days a woman losing their life at the hand of a domestic or former domestic partner," he said. Longer-term priorities include strengthening accountability and consequences for perpetrators, including early intervention with high-risk perpetrators and serial offenders, and better support for victim and survivors. Image credits: Getty Images

Legal

South Australian Government's sprinkles ban sparks outrage

New guidelines for school canteens in South Australia have sparked outrage for "taking all the enjoyment away from children". Sprinkles of any kind, including 100s and 1000s - which are an essential ingredient for the iconic fairy bread - have been categorised as “red 2", meaning that they “should not be promoted or encouraged in schools on any occasion”. The ban comes after processed meats including ham would be limited at canteens in Western Australia, with similar restrictions now in place for South Australian canteens. Processed meats fall into the “red 1” or “amber” categories in South Australia, which means that products featuring them would be limited depending on nutritional criteria. These restrictions mean that children will no longer be able to regularly enjoy Australian staples like ham and cheese toasties and fairy bread at school. “Why are they taking all the enjoyment away from children?” one person told 7News. Dieticians have also questioned the decision, saying that it might only cause further problems in the future. “All your brain wants to do is eat that food, and eventually, you can restrict it for a little bit, until you get to that point where you just give in, you want to eat it, and then you binge,” dietitian Mattea Palombo said. Another expert suggested changing the foods we associate with good times. “Celebration foods aren’t so much about the foods that we have at the time of the celebration, but the friends and family we have around at the time of celebrating,” dietitian Dr Evangeline Mantzioris said. “So I think we probably need to balance it out a bit, so healthy foods are available at those celebrations.” Although the changes impact canteens, parents are still free to pack whatever they want in their kids' lunchboxes. Images: Getty

Food & Wine

Funding for refugees has long been politicized − punitive action against UNRWA and Palestinians fits that pattern

<a href="https://theconversation.com/profiles/nicholas-r-micinski-207353">Nicholas R. Micinski</a>, <a href="https://theconversation.com/institutions/university-of-maine-2120">University of Maine</a> and <a href="https://theconversation.com/profiles/kelsey-norman-862895">Kelsey Norman</a>, <a href="https://theconversation.com/institutions/rice-university-931">Rice University</a> At least a dozen countries, including the U.S., have <a href="https://news.un.org/en/story/2024/01/1145987">suspended funding to the UNRWA</a>, the United Nations agency responsible for delivering aid to Palestinian refugees. This follows allegations made by Israel that <a href="https://www.wsj.com/world/middle-east/at-least-12-u-n-agency-employees-involved-in-oct-7-attacks-intelligence-reports-say-a7de8f36">12 UNRWA employees participated</a> in the Oct. 7, 2023, Hamas attack. The UNRWA responded by <a href="https://www.reuters.com/world/middle-east/un-palestinian-refugee-agency-investigates-staff-suspected-role-israel-attacks-2024-01-26/">dismissing all accused employees</a> and opening an investigation. While the seriousness of the accusations is clear to all, and the U.S. has been keen to <a href="https://www.nytimes.com/2024/01/30/us/politics/aid-gaza-israel.html">downplay the significance</a> of its pause in funding, the action is not in keeping with precedent. Western donors did not, for example, defund other U.N. agencies or peacekeeping operations amid accusations of <a href="https://www.hrw.org/news/2020/01/11/un-peacekeeping-has-sexual-abuse-problem">sexual assault</a>, <a href="https://www.justice.gov/usao-sdny/pr/former-un-general-assembly-president-and-five-others-charged-13-million-bribery-scheme">corruption</a> or <a href="https://www.hrw.org/legacy/summaries/s.bosnia9510.html">complicity in war crimes</a>. In real terms, the funding cuts to the UNRWA will affect <a href="https://www.unrwa.org/where-we-work/gaza-strip">1.7 million Palestinian refugees in Gaza</a> along with an additional 400,000 Palestinians without refugee status, many of whom benefit from the UNRWA’s infrastructure. Some critics have gone further and said depriving the agency of funds <a href="https://jacobin.com/2024/01/unrwa-defunding-gaza-israel">amounts to collective punishment</a> against Palestinians. Refugee aid, and humanitarian aid more generally, is theoretically meant to be neutral and impartial. But as experts in <a href="https://www.cambridge.org/core/books/reluctant-reception/558E2A93FF99B8F295347A8FA2053698">migration</a> <a href="https://www.routledge.com/UN-Global-Compacts-Governing-Migrants-and-Refugees/Micinski/p/book/9780367218836">and</a> <a href="https://press.umich.edu/Books/D/Delegating-Responsibility">international relations</a>, we know funding is often used as a foreign policy tool, whereby allies are rewarded and enemies punished. In this context, we believe the cuts in funding for the UNRWA fit a wider pattern of the politicization of aid to refugees, particularly Palestinian refugees. <h2>What is the UNRWA?</h2> The UNRWA, short for the U.N. Relief and Works Agency for Palestine Refugees in the Near East, was established two years after about <a href="https://theconversation.com/the-nakba-at-75-palestinians-struggle-to-get-recognition-for-their-catastrophe-204782">750,000 Palestinians were expelled or fled from their homes</a> during the months leading up to the creation of the state of Israel in 1948 and the subsequent Arab-Israeli war. Prior to the UNRWA’s creation, international and local organizations, many of them religious, provided services to displaced Palestinians. But after <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">surveying the extreme poverty</a> and dire situation pervasive across refugee camps, the U.N. General Assembly, including all Arab states and Israel, voted to create the UNRWA in 1949. Since that time, <a href="https://www.unrwa.org/what-we-do">the UNRWA has been the primary aid organization</a> providing food, medical care, schooling and, in some cases, housing for the 6 million Palestinians living across its five fields: Jordan, Lebanon, Syria, as well as the areas that make up the occupied Palestinian territories: the West Bank and Gaza Strip. The mass displacement of Palestinians – known as the <a href="https://theconversation.com/the-nakba-at-75-palestinians-struggle-to-get-recognition-for-their-catastrophe-204782">Nakba, or “catastrophe</a>” – occurred prior to the <a href="https://www.unhcr.org/about-unhcr/who-we-are/1951-refugee-convention">1951 Refugee Convention</a>, which defined refugees as anyone with a well-founded fear of persecution owing to “events occurring in Europe before 1 January 1951.” Despite a <a href="https://www.unhcr.org/sites/default/files/legacy-pdf/4ec262df9.pdf">1967 protocol extending the definition</a> worldwide, Palestinians are still excluded from the primary international system protecting refugees. While the UNRWA is responsible for providing services to Palestinian refugees, the United Nations also created the U.N. Conciliation Commission for Palestine in 1948 to seek a <a href="https://www.refworld.org/docid/4fe2e5672.html">long-term political solution</a> and “to facilitate the repatriation, resettlement and economic and social rehabilitation of the refugees and the payment of compensation.” As a result, the UNRWA does not have a mandate to push for the traditional durable solutions available in other refugee situations. As it happened, the conciliation commission was active only for a few years and has since been sidelined in favor of the U.S.-brokered peace processes. <h2>Is the UNRWA political?</h2> The UNRWA has been <a href="https://www.migrationpolicy.org/article/palestinian-refugees-dispossession">subject</a> to political headwinds since its inception and especially during periods of heightened tension between Palestinians and Israelis. While it is a U.N. organization and thus ostensibly apolitical, it has <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">frequently been criticized</a> by Palestinians, Israelis as well as donor countries, including the United States, for acting politically. The UNRWA performs statelike functions across its five fields – including education, health and infrastructure – but it is restricted in its mandate from performing political or security activities. Initial Palestinian objections to the UNRWA stemmed from the organization’s early focus on economic integration of refugees into host states. Although the UNRWA officially adhered to the U.N. General Assembly’s <a href="https://www.unrwa.org/content/resolution-194">Resolution 194</a> that called for the return of Palestine refugees to their homes, U.N., U.K. and U.S. <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">officials searched</a> for means by which to resettle and integrate Palestinians into host states, viewing this as the favorable political solution to the Palestinian refugee situation and the broader Israeli-Palestinian conflict. In this sense, Palestinians perceived the UNRWA to be both highly political and actively working against their interests. In later decades, the UNRWA <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">switched its primary focus</a> from jobs to education at the urging of Palestinian refugees. But the UNRWA’s education materials were <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">viewed</a> by Israel as further feeding Palestinian militancy, and the Israeli government insisted on checking and approving all materials in Gaza and the West Bank, which it has occupied since 1967. While Israel has <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">long been suspicious</a> of the UNRWA’s role in refugee camps and in providing education, the organization’s operation, which is internationally funded, <a href="https://www.crisisgroup.org/middle-east-north-africa/east-mediterranean-mena/israelpalestine/242-unrwas-reckoning-preserving-un-agency-serving-palestinian-refugees">also saves</a> Israel millions of dollars each year in services it would be obliged to deliver as the occupying power. Since the 1960s, the U.S. – UNRWA’s primary donor – and other Western countries have <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">repeatedly expressed their desire</a> to use aid to prevent radicalization among refugees. In response to the increased presence of armed opposition groups, the <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">U.S. attached a provision</a> to its UNRWA aid in 1970, requiring that the “UNRWA take all possible measures to assure that no part of the United States contribution shall be used to furnish assistance to any refugee who is receiving military training as a member of the so-called Palestine Liberation Army (PLA) or any other guerrilla-type organization.” The UNRWA adheres to this requirement, even publishing an annual list of its employees so that host governments can vet them, but it also <a href="https://www.crisisgroup.org/middle-east-north-africa/east-mediterranean-mena/israelpalestine/242-unrwas-reckoning-preserving-un-agency-serving-palestinian-refugees">employs 30,000 individuals</a>, the vast majority of whom are Palestinian. Questions over the links of the UNRWA to any militancy has led to the rise of Israeli and international <a href="https://cufi.org/issue/unrwa-teachers-continue-to-support-antisemitism-terrorism-on-social-media-un-watch/">watch groups</a> that document the social media activity of the organization’s large Palestinian staff. <h2>Repeated cuts in funding</h2> The United States has used its money and power within the U.N. to block criticism of Israel, vetoing at least <a href="https://www.un.org/depts/dhl/resguide/scact_veto_table_en.htm">45 U.N. resolutions</a> critical of Israel. And the latest freeze is not the first time the U.S. has cut funding to the UNRWA or other U.N. agencies in response to issues pertaining to the status of Palestinians. In 2011, the <a href="https://www.reuters.com/article/idUSTRE79U5ED/#:%7E:text=WASHINGTON%20(Reuters)%20%2D%20The%20United,grant%20the%20Palestinians%20full%20membership.">U.S. cut all funding to UNESCO</a>, the U.N. agency that provides educational and cultural programs around the world, after the agency voted to admit the state of Palestine as a full member. The Obama administration defended the move, claiming it was required by a 1990s law to defund any U.N. body that admitted Palestine as a full member. But the impact of the action was nonetheless severe. Within just four years, UNESCO was <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/1758-5899.12459">forced to cut its staff in half</a> and roll back its operations. President Donald Trump later <a href="https://www.pbs.org/newshour/politics/u-s-and-israel-officially-withdraw-from-unesco">withdrew the U.S. completely from UNESCO</a>. In 2018, the Trump administration paused its <a href="https://www.nytimes.com/2018/08/31/us/politics/trump-unrwa-palestinians.html">US$60 million contribution to the UNRWA</a>. Trump claimed the pause would create political pressure for Palestinians to negotiate. President Joe Biden restarted U.S. contributions to the UNRWA in 2021. <h2>Politicization of refugee aid</h2> Palestinian are not the only group to suffer from the politicization of refugee funding. After World War II, states established different international organizations to help refugees but strategically excluded some groups from the refugee definition. For example, the U.S. funded the <a href="https://www.nationalww2museum.org/war/articles/last-million-eastern-european-displaced-persons-postwar-germany">U.N. Relief and Rehabilitation Administration to help resettle displaced persons after World War II</a> but resisted Soviet pressure to forcibly repatriate Soviet citizens. The U.S. also created a separate organization, <a href="https://academic.oup.com/ijrl/article-abstract/1/4/501/1598187">the precursor to the International Organization for Migration</a>, to circumvent Soviet influence. In many ways, the UNRWA’s existence and the exclusion of Palestinian refugees from the wider refugee regime parallels this dynamic. Funding for refugees has also been politicized through the earmarking of voluntary contributions to U.N. agencies. Some agencies receive funding from U.N. dues; but the UNRWA, alongside the U.N. High Commissioner for Refugees and the International Organization for Migration, receive the majority of their funding from voluntary contributions from member states. These contributions can be earmarked for specific activities or locations, leading to donors such as the <a href="https://www.peio.me/wp-content/uploads/2019/01/PEIO12_paper_107.pdf">U.S. or European Union dictating which refugees get aid and which do not</a>. Earmarked contributions amounted to nearly <a href="https://unsceb.org/fs-revenue-agency">96% of the UNHCR’s budget, 96% of the IOM’s budget and 74% of UNRWA funding in 2022</a>. As a result, any cuts to UNRWA funding will affect its ability to service Palestinian refugees in Gaza – especially at a time when so many are <a href="https://www.cnn.com/2024/01/30/middleeast/famine-looms-in-gaza-israel-war-intl/index.html">facing hunger, disease and displacement</a> as a result of war.<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/222263/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/nicholas-r-micinski-207353">Nicholas R. Micinski</a>, Assistant Professor of Political Science and International Affairs, <a href="https://theconversation.com/institutions/university-of-maine-2120">University of Maine</a> and <a href="https://theconversation.com/profiles/kelsey-norman-862895">Kelsey Norman</a>, Fellow for the Middle East, Rice University's Baker Institute for Public Policy, <a href="https://theconversation.com/institutions/rice-university-931">Rice University</a> Image credits: Getty Images 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/funding-for-refugees-has-long-been-politicized-punitive-action-against-unrwa-and-palestinians-fits-that-pattern-222263">original article</a>.

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Funding for refugees has long been politicized − punitive action against UNRWA and Palestinians fits that pattern

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