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Millions of Aussies set for pay rise

<p>Millions of Aussies are in line for a boost on July 1, with the Fair Work Commission set to hand down their decision on minimum pay rates on Monday morning. </p> <p>The workplace umpire's annual wage review, which affects minimum and award wage earners, is expected to hand down an increase of between 3.5 per cent and 4 per cent on the pay rate of $23.23 an hour.</p> <p>These wage increases factor in economic conditions and broader goals such as closing the gender pay gap. </p> <p>A substantial boost was handed out last year - 5.75 per cent for awards and 8.6 per cent for the national minimum - with the commission basing their decision on factors like low unemployment, falling wages and high inflation.</p> <p>The Albanese government has submitted that it would prefer the “real wages of Australia’s low-paid workers do not go backwards." </p> <p>“We want to see strong and sustainable wages growth because we see this as part of the solution to the cost-of-living challenge, not part of the problem,” Treasurer Jim Chalmers said ahead of the decision.</p> <p>No number was specified but they are advocating to an increase which keeps up with inflation, which was at 4.1 per cent annually in the March quarter. </p> <p>In their submission, the government also said that tax relief due to kick in mid-year should not be viewed as a replacement to a wage boost. </p> <p>Meanwhile, peak employee representative the ACTU, has advocated for an increase of 5 per cent, arguing that workers affected by the cost-of-living pressures deserve a hike to their pay. </p> <p>Australian Industry Group has proposed a wage increase of 2.8 per cent, warning that an excessive pay boost could increase the risk of job losses, as the economy is slowing and labour market is weakening. </p> <p>Economists have also warned that an increase of over 4 per cent could further complicate the Reserve Bank’s efforts in fighting inflation, which  have already slugged borrowers with 13 rate hikes in the last two years. </p> <p>But AMP chief economist Shane Oliver said that an increase of at or just below 4 per cent, could help the RBA return inflation back to its target band of two to three per cent. </p> <p>“A rise around 4 per cent would give workers a real wage rise, it’s not so high as to add to the risk of a wage price spiral, … and in line with the rough assessment that 4 per cent wages growth is consistent with 2 per cent to 3 per cent inflation.”</p> <p><em>Image: Shutterstock</em></p> <p> </p>

Money & Banking

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Why you should keep your everyday bank account to the bare minimum

<p><span>When you sign up with a bank, you are likely to receive two accounts – one for everyday transactions and one for savings. </span></p> <p><span>A transaction account usually comes with a card so that you can withdraw cash at the ATM and pay day-to-day expenses. On the other hand, a savings account does not usually have a linked card – but it offers higher interest rates compared to the transaction account, allowing you to grow your balance. </span></p> <p><span>Many people put a large sum of their money on their transaction accounts for practical purposes – who knows when you need to make a major purchase? – but experts say this move may not be so wise in the bigger picture.</span></p> <p><span>“I … realised that money sitting in a debit account just, well, sits there,” Laura Munoz of <a href="https://thefinancialdiet.com/5-life-changing-financial-habits-i-took-way-too-long-to-adopt/"><em>The Financial Diet</em></a> wrote. “It doesn’t earn interest and it’s not working for you, so there’s no real reason to keep more than a healthy buffer there in case you need to take out cash in a pinch.”</span></p> <p><span>While it is important to maintain a healthy balance to pay bills and everyday needs in your transaction account, Munoz said savings should be prioritised before spending. By working out how much you roughly spend every month, you can plan ahead and keep only the bare minimum amount in the transaction account to cover everyday expenses while transferring the rest to the savings account immediately.</span></p> <p><span>As <a href="https://www.moneysmart.gov.au/managing-your-money/banking/transaction-accounts"><em>MoneySmart</em></a> advises, “Only keep the money you need to cover your everyday costs in your transaction account. Put the rest of your money in a savings account and watch your savings grow with the extra interest.”</span></p> <p><span>This can also help you curb your shopping habits, as the limited amount will make you more aware of the dollars you fork out.</span></p> <p><span>Munoz said she is now putting most of her cash in two places –a high-yield, risk-free savings account and another savings account that is invested in the stock market. This does not have to be the case for you if you are more risk-averse – find a savings account where your earnings can comfortably grow, and make money work for you.</span></p>

Retirement Income

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The major changes Aussies need to know about starting July 1

<p>The end of the financial year is fast approaching and many of us cannot wait. However, there are a number of changes coming once July 1 hits for Australians to be aware of.</p> <p>If there is anything you should be doing before Monday comes around, it’s sorting out your finances. Here’s an extensive list to help:</p> <p><strong>Income tax relief on standby</strong></p> <p>To stimulate spending and boost the economy, the coalition is under pressure to give a tax break to lower and middle-income earners of up to $1080 for single earners, or for dual income families up to $2160 as of July 1 (after lodging their tax return).</p> <p>When the tax cuts pass, around 1500 Queensland businesses will be granted a tax relief with the state government – raising the payroll threshold from $1.1 million to $1.3 million.</p> <p>The tax cuts are a part of a three-stage $158 billion plan and the final stage is expected to be contested by the opposition when parliament comes back on July 2.</p> <p>The Australian Tax Office has confirmed, however, that they will provide cuts if the laws are passed after June 30.</p> <p><strong>Penalty and minimum wage increase</strong></p> <p>The minimum wage will increase by 3 per cent to $740.80 per week ($19.49 an hour) starting on or after July 1.</p> <p><strong>What work expenses you should look out for</strong></p> <ul> <li>Claims for work-related clothing, dry cleaning and laundry expenses will be flagged by the ATO and they will check taxpayers who take advantage of the exemption from keeping receipts for people who spend less than $150 per financial year on laundry expenses.</li> <li>Overtime meal claims.</li> <li>Union fees and subscriptions.</li> <li>The ATO will be keeping an eye out for mobile phone and internet costs where people who claim the whole (or a large amount) of the bill for their personal mobile as work-related.</li> <li>The ATO is concerned taxpayers are automatically claiming the 5000km motor vehicle journey claim regardless of the actual amount spent travelling</li> <li>Unless you are actually running a business from home, deductions made for home office use, including “occupational” costs like rent, rates and mortgage interest, are not allowed and will be looked out for.</li> <li>Taxpayers who incorrectly claim deductions under the rule they are allowed to incur work-related expenses of $300 or less in total without receipts will also be on the radar. The ATO is concerned some taxpayers are claiming this deduction without actually incurring any expenses.</li> </ul> <p><strong>Look out for dodgy property deductions</strong></p> <p>The ATO has announced it will be looking out for excessive interest expense claims, including when property owners attempt to claim borrowing costs on the family home as their rental property.</p> <p>Those who also incorrectly allocate rental income and expenses between owners will also be paid close attention to. An example of this includes when a jointly owned property is claimed by the owner with the higher taxable income rather than jointly.</p> <p>Holiday homes that are not actually listed for rent are also on the ATO’s radar. It is noted rental property owners should ONLY claim for the periods the property is actually for rent or is actually available for rent.</p> <p>A close eye will also be kept on incorrect claims for newly purchased rental homes. The costs to repair defects and damages exist purely at the time of purchase. The costs of renovation cannot be claimed immediately and are deductible over a number of years not instantly.</p> <p><strong>Inactive accounts could go straight to the Tax Office</strong></p> <p>Those with superannuation accounts face the risk of their finances being transferred to the Australian Taxation Office if no contributions have been made for 16 months, or if they have a balance of less than $6,000.</p> <p>If the ATO does get hold of your super finances, they will attempt to combine the super into the account you are currently using (if you have one).</p> <p>If they are unable to find one, the ATO will hold it until it can be claimed.</p> <p><strong>Your insurance claims (including past) could be lost</strong></p> <p>From life insurance to disability and protection cover – dormant accounts that could be beneficial to an individual may be lost.</p> <p>Some may not be aware they have a default life insurance included in their superannuation fund and from the first day of the new financial year – super accounts that have been inactive for 16 months will have their default life cover insurance turned off.</p> <p>This could not just impact life insurance, it may impact disability cover or income protection cover.</p> <p><strong>Exit fees to be banned</strong></p> <p>Superannuation fund exit fees will be banned from July 1 – so if you are thinking about switching your funds to a new super, it will save you quite a bit of money.</p> <p>Exit fees come to about $52 million each year and can now thankfully be changed and sorted around without the worry of exit fees.</p> <p>If individuals have a small amount in their super (less than $6000), fees will be capped at 3 per cent to try to prevent the cost from eroded. </p>

Money & Banking

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The bare minimum skincare you need revealed

<p>In a world where new miracle fixes and super serums are landing every second on a beauty counter near you, it can be hard to determine exactly what you need and when – and how much you're willing to pay.</p> <p>Dermatologists are in the business of looking at – and treating – skin conditions every day, and often aren't driven by the lofty promises, fancy packaging and big price points that come with hyped skincare brands. Their recommendations are more often than not common sense, easy and affordable, and they have firsthand knowledge of what works.</p> <p>The bare minimum you need to do to your skin according to dermatologists starts with cleansing. It's crucial to keeping your skin healthy, removes dirt, pollution and the dead skin cells that can make your complexion look dull.</p> <p>What are the most important things to look for in a cleanser? It should be soap-free, gentle and suitable for your skin type. To find your cleansing match, wash your face with any soap-free cleanser then wait about 30 minutes.</p> <p>If your whole face feels tight, your skin is dry, and needs a creamy or milky formula. If you face feels greasy or looks shiny, you've got an oily complexion, so opt for a foaming cleanser. If your skin feels tight just on your cheeks, chances are you have combination skin: so can use either depending on the season.</p> <p>Next, Dr Vania Sinovich, dermatologist at Skin Institute in Auckland says, "the best thing you can do to protect your skin is apply adequate sun protection, particular to the face, chest and backs of hands where most visible photo ageing occurs".</p> <p>She also stresses the importance of staying out of the ‪midday sun, the use of protective clothing such as hats to cover the face, ears and back of neck, and "avoiding repeated, unprotected sun exposure which creates free radicals with resultant photo ageing, photo pigmentation, skin cancers and premature skin thinning."</p> <p>Sinovich recommends finding a sunscreen that contains antioxidants to help mop up free radicals, and to use it every day, rain or shine.</p> <p>On the topic of anti-ageing, she says the use of a topical Vitamin A/retinoid formula at night is a no-brainer, and more efficacious than any hope in a jar.</p> <p>"It helps to even skin tone, reduce pore size, smooth out fine wrinkles and boost collagen," says Sinovich, "which helps to keep the skin firm".</p> <p>Some are so potent that can completely change your skin overnight, and unlike standard exfoliators, retinoids work at the cellular level to increase collagen, smooth out annoying fine lines and even out the tone.</p> <p>Prescription retinoids are more effective but can irritate, so ask a professional for advice on the best one for you – and go easy.</p> <p>"I recommend gradual escalation over time to avoid any reactions," says the good doctor. Start with twice weekly use and reap the benefits.</p> <p><em>Written by Helene Ravlich. Republished with permission of <a href="http://www.stuff.co.nz/" target="_blank"><strong><span style="text-decoration: underline;">Stuff.co.nz</span></strong></a>.</em></p>

Beauty & Style

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$10 minimum spend on cards to end

<p>As Australian’s increasingly feel ripped off by business with card minimums, Mastercard warns that some vendors are shooting themselves in the foot. According to their research, 84 per cent of their clients resent restrictions on transactions, 62 per cent find it frustrating that they can’t use their cards for transactions, and 44 per cent avoid shops with minimums altogether.</p> <p>Additionally, as part of its “Zero Minimum” campaign, the company recently conducted market research among young professionals and busy mums, and found that some consumers are falling into the “minimum spend trap”. For some shoppers, by adding on items to their purchases to meet a minimum card payment requirement, this added up to an extra $624 per year.</p> <p>With more than half of Australian business no longer upholding minimum card payments, head of Mastercard’s market development and innovation, Garry Duursma, says that those who insist on keeping them are being left behind.</p> <p>“It’s quite embarrassing when a consumer comes to the counter and the merchant says, ‘Oh, I’m sorry, there’s a minimum payment’,” Mr Duursma said. “It’s inconvenient when they’re asked to spend more. It just becomes a bad experience.”</p> <p>Mastercard’s “Zero Minimum” campaign is set to start appearing in shops who have adopted no minimum spends, in hopes of making a positive example out of them.</p> <p>What’s your view on minimum spends? Are you happy to purchase and additional item, or run to an ATM, or are you likely to avoid that shop in the future? Let us know your stance in the comments below. </p> <p><strong>Related links:</strong></p> <p><span style="text-decoration: underline;"><strong><a href="http://www.oversixty.com.au/news/news/2016/09/price-of-summer-fruit-is-set-to-rise/"><em>The price of summer fruit is set to skyrocket</em></a></strong></span></p> <p><span style="text-decoration: underline;"><strong><a href="http://www.oversixty.com.au/news/news/2016/09/aldi-announces-big-game-changer/"><em>Aldi announcement that could push it to number-one supermarket</em></a></strong></span></p> <p><span style="text-decoration: underline;"><strong><a href="http://www.oversixty.com.au/news/news/2016/09/woolworths-decision-has-aussie-shoppers-reeling/"><em>Woolies snubs local avocados for overseas imports</em></a></strong></span></p>

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