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Thousands of eligible Aussies to receive cost-of-living payments

<p>Around 210,000  eligible South Australian households will receive a cost-of-living payment this week, including pensioners, Centrelink recipients and low-income earners. </p> <p>A Cost of Living Concession of $255.60 will be paid to all eligible households, with the annual payments made to eligible tenants and self-funded retirees doubled to match the amount given to homeowners.</p> <p>The payment is part of the state government's $266.2 million cost-of-living relief package announced in this year's state budget.</p> <p>This included the one-off additional payment of $243.90 to households who received last year's cost-of-living payment in June. </p> <p>South Australia's Premier Peter Malinsauskas said the government had delivered the “single largest cost-of-living assistance package in South Australia’s history”.</p> <p>“We know people are doing it tough and cost-of-living pressures are continuing to have an impact on many South Australians,” he said.</p> <p>“In the past two months, our government will have issued more than $100 million in targeted cost-of-living relief to South Australian households.”</p> <p>Pensioners and other card holders including, the Pensioner Concession Card, Veteran Gold Card, Low Income Health Care Card and Commonwealth Seniors Health Card, as well as low-income households and those receiving Centrelink payments including JobSeeker, the Parenting Payment and Youth Allowance, are eligible to receive the  SA Cost Of Living Concession.</p> <p>Those who want to receive the concession for that financial year will need to apply <a href="https://www.sa.gov.au/topics/care-and-support/concessions/household-concessions/cost-of-living-concessions" target="_blank" rel="noopener">online</a> by December 31 and only one person per household can receive the payment and it will be based on your circumstances on July 1. </p> <p>Those who have previously received the payment and whose circumstances haven't changed don't need to reapply. </p> <p>The payments started rolling out this month, with Human Services Minister Nat Cook saying that all payments should come through by early next week. </p> <p>“This includes everyone who received a payment last year and who is still eligible, as well as new applications which have been processed up to now,” Cook said.</p> <p>"Anyone who thinks they might be eligible for cost-of-living support should head to the sa.gov.au website to have a look at the eligibility criteria."</p> <p>Other states have also provided cost-of-living support, with eligible seniors in Western Australia able to receive a Cost of Living Rebate of $107.12 for singles and $160.68 for couples.</p> <p>While in the ACT, apprentices and tradies in the state can get a one-off $250 Cost Of Living payment if they are employed by an ACT employer.</p> <p>NSW has a few cost-of-living initiatives including up to $350 energy rebates for eligible households, and up to  $4,220 early childhood fee relief for 3 to 5-year-olds attending eligible community and mobile preschools.</p> <p><em>Image: Shutterstock</em></p>

Money & Banking

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Readers response: What are your thoughts on the increasing use of digital payments?

<p>While technology continues to advance, so does the way we pay for things. </p> <p>Many shopping outlets have turned to using digital payment methods rather than cash, which has divided many who find it easier to use cold hard cash than rely on technology. </p> <p>We asked our readers their thoughts on digital payments and the response was overwhelming. Here's what they said. </p> <p><strong>Joan Hughes</strong> - Couldn’t go shopping due to bad pains in my leg and back, so my grandson did an online shop. Tried to use my card 5 times but wouldn’t accept it, so had to use my granddaughter's. This is the 3rd time my card has been rejected. Rubbish system, cash is definitely best.</p> <p><strong>Johanna Shakes</strong> - Very hard to adjust for elderly.</p> <p><strong>Debra Walker</strong> - Hate it! Cash is king.</p> <p><strong>Lex Jordan</strong> - I think we should all stand and boycott these companies that don't accept cash.</p> <p><strong>Patricia Tebbit</strong> - Don't mind using cards but access to cash is imperative. Think of small charity raffles, garage sales &amp; countless other things where cash is required.</p> <p><strong>Lyn Bradford</strong> - I love it, I use 95% card, 5% cash. So much easier. </p> <p><strong>David Taylor</strong> - Just making it easier for hackers.</p> <p><strong>Jennifer Bucktin</strong> - Cash is best. If digital goes down, you can't use anything.</p> <p><strong>Steve Smith</strong> - The digital age is here to stay so it's going to be better for all to get used to it.</p> <p><strong>Quentin Brown </strong>- Love them both, digital and cash as it's much easier to pay bills etc. Of course you have to be smart and not gullible. Why can't we have both?</p> <p><strong>Kath Sheppard</strong> - Cash is king, a lot safer as well, can't overspend either or be charged fees.</p> <p><em>Image credits: Shutterstock </em></p>

Money & Banking

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Aussies working in "priority occupations" eligible for cash increase

<p>Thousands of hard-working Aussies who work in certain areas are now eligible for new training and support payments of up to $10,000.</p> <p>The initiative comes to support Australians working in sectors with a high demand for skilled workers, and a commitment to clean energy.</p> <p>From July 1st, thousands of apprentices working in what the government deems as “priority occupations” are eligible for the $5,000 Australian Apprenticeship Training Support Payment. </p> <p>If those priority occupations also offer exposure and experience in “clean energy”, apprentices are instead eligible for the more lucrative New Energy Apprenticeship Support Payment of up to $10,000.</p> <p>The list of "priority occupations" is extensive and includes aged care workers, arborists, bakers, beauty therapists and many more. </p> <p>According to the Department of Employment and Workplace Relations (DEWR), the jobs are characterised by a strong current demand for skilled workers, and a strong demand expected in the future.</p> <p>The clean energy jobs also include many different professions, with agricultural and agritech technicians, automotive electricians, regular electricians, gas fitters, glaziers, joiners, plumbers and welders all included.</p> <p>The full list of priority jobs can be found on the <a href="https://www.dewr.gov.au/skills-support-individuals/resources/appendix-australian-apprenticeship-priority-list-1-january-2024" target="_blank" rel="noopener" data-link-type="article-inline">Department of Employment and Workplace Relations website.</a></p> <p>For the Australian Apprenticeship Training Support Payment, the $5000 payment comes in four instalments over two years, while the New Energy Apprentice Support Payment is paid out over the course of the apprenticeship — up to $5000 for part-time apprentices and up to $10,000 for full-time apprentices.</p> <p>It is hoped the payments will incentivise apprentices to remain on the career pathway.</p> <p><em>Image credits: Shutterstock </em></p>

Money & Banking

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Aussies hit with "hidden fees" for using common payment method

<p>Millions of Aussies have copped up to $1 billion in "hidden fees" for choosing to use one common payment method. </p> <p>Many are unaware about the secret extra charges that come with using the tap-and-go payment method, as millions of customers use it as the preferred way to pay and go. </p> <p>However, according to financial counsellor Scott Pape, also known as The Barefoot Investor, while tapping your card may be easier, it might not be great for your bank account.</p> <p>“What most people don’t know is that, when they tap, their bank generally defaults that payment through Visa or MasterCard, who pays them a fee — instead of defaulting that payment through the much cheaper bank-owned EFTPOS,” Pape said in his column for the <em><a href="https://www.dailytelegraph.com.au/business/barefoot-investor/the-common-smartphone-app-thats-ripping-you-off/news-story/0b71afa29c86faf2b938c44f93bbc8d6?amp" target="_blank" rel="noopener" data-link-type="article-inline">Daily Telegraph</a></em>.</p> <p>While some businesses choose to absorb the cost, others pass it on to the customer as a surcharge, as Pape says, “Talk about a rort.”</p> <p>According to the Royal Bank of Australia (RBA), Visa and Mastercard are generally more expensive for merchants than the EFTPOS network.</p> <p>Payments through EFTPOS are generally about 0.3 per cent of the transaction value, while Debit Mastercard and Visa Debit may cost many some people about 0.5 per cent.</p> <p>Mastercard and Visa credit could cost customers more than 0.75 per cent of the transaction, while American Express card payments are even more, charging merchants 1 to 1.5 per cent.</p> <p>Thankfully, according to Pape, there are ways to avoid paying the extra fees. </p> <p>If your bank card is attached to your smartphone, you can change the default payment setting.</p> <p>“On an iPhone, open ‘Settings’, go to ‘Wallet & Apple Pay’, then tap your debit card,” Pape said.</p> <p>“Then look for ‘Payment Option’. It will generally have ‘MasterCard’ or ‘Visa’ preselected, but instead you should select ‘EFTPOS SAV’.”</p> <p>This is not allowed on all cards, however, and those who use Android will need to check with their bank if a possible solution exists.</p> <div> </div> <p>The other way to avoid paying the surcharges is to just start inserting or swiping your card again.</p> <p>“I know it’s annoying, but if you swipe and insert your card you can choose ‘cheque’ or ‘savings’ and it’ll go through the EFTPOS system, which at the bigger retailers means you’ll be less likely to be charged,” Pape said.</p> <p><em>Image credits: Shutterstock </em></p>

Money & Banking

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“Completely tacky”: Bride slammed for asking for dinner payment

<p dir="ltr">A bride has caused a stir online after asking if it is appropriate to ask her wedding guests to pay for their meal when they RSVP to the big day. </p> <p dir="ltr">The woman took to a popular wedding Facebook page to ask the opinions of other brides, sharing an example of her invitation created by her wedding planner. </p> <p dir="ltr">The invitation asks guests to confirm whether or not they will be attending the nuptials, before asking if the guest intends to eat at the wedding ceremony, and which meal they would prefer. </p> <p dir="ltr">The price of each meal was also included: $20 for grilled chicken with rice, mashed potatoes and green beans and $25 for a salmon alternative.</p> <p dir="ltr">“We invite you to eat with us but ask for you to provide your own payment. Please select which meal you'd prefer,” the invite stated. </p> <p dir="ltr">“My wedding venue requires me to purchase food through them for the reception, but has said people sometimes choose this option,” the woman wrote on Facebook. </p> <p dir="ltr">“Nothing about my reception is very typical anyway, SO I'm wondering how insane or rude or cost-effective/smart this is.”</p> <p dir="ltr">“The planner set me this as an example of how to present it to guests.”</p> <p dir="ltr">But when the post was quickly criticised by others, the bride clarified the event was more of a “fun dinner party” rather than a “wedding” as she and her partner had already legally married five months prior. </p> <p dir="ltr">“Ultimately I'll do what I want BUT I did not choose this option. It was only a suggestion from the venue that I was curious about others' opinions on,” she added. </p> <p dir="ltr">“This is for the reception. I'm most definitely not asking for money or gifts and by the time they come to the reception, we will have already been married for five months.”</p> <p dir="ltr">The post was shared in another wedding shaming Facebook group and critiqued by dozens of wedding experts.</p> <p dir="ltr">“Oh hell no! This is completely tacky!” one wrote, another said, “So she asks if it is rude then gets offended when people say it's rude?”</p> <p dir="ltr">“I am a veteran pro planner and would NEVER suggest this!” another said. </p> <p dir="ltr">Someone else wrote, “I'm especially shaming the venue for suggesting that people often pawn off the cost of dinner to their guests. Encouraging rude behaviour.”</p> <p dir="ltr"><em>Image credits: Getty Images / Facebook</em></p>

Food & Wine

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Lump sum, daily payments or a combination? What to consider when paying for nursing home accommodation

<p><em><a href="https://theconversation.com/profiles/anam-bilgrami-1179543">Anam Bilgrami</a>, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a></em></p> <p>Moving yourself or a loved one to a nursing home can be <a href="https://theconversation.com/should-we-move-our-loved-one-with-dementia-into-a-nursing-home-6-things-to-consider-when-making-this-tough-decision-189770">emotional and difficult</a>. While some have their nursing home accommodation costs fully covered by the government (based on a <a href="https://www.myagedcare.gov.au/how-much-will-i-pay">means test</a>), most will have to pay their own way.</p> <p>The average lump sum room value is <a href="https://www.health.gov.au/sites/default/files/documents/2021/08/ninth-report-on-the-funding-and-financing-of-the-aged-care-industry-july-2021.pdf">A$334,000</a>. Choosing how to pay can make this time even more challenging, particularly for those with <a href="https://theconversation.com/would-you-pass-this-financial-literacy-quiz-many-wont-and-its-affecting-expensive-aged-care-decisions-175063">low financial literacy</a>.</p> <p>This is an important and complex decision. It can affect your income, wealth, means-tested aged care fee, and bequests. Here are some things to consider before you decide.</p> <h2>3 ways to pay</h2> <p>You can <a href="https://www.myagedcare.gov.au/understanding-aged-care-home-accommodation-costs">pay</a> for a nursing home room in three ways.</p> <p>You can pay the entire room price as a one-off, refundable lump sum (a “refundable accommodation deposit”, sometimes shortened to RAD). This lump sum is refunded to the resident or their estate when the person leaves the nursing home (if they move or pass away).</p> <p>The refund is <a href="https://www.myagedcare.gov.au/aged-care-home-accommodation-refunds">guaranteed by the government</a>, even if a provider goes bankrupt.</p> <p>People who don’t want to pay a lump sum can instead choose rent-style, “daily accommodation payments” (sometimes shortened to DAP).</p> <p>These are fixed, daily interest-only payments calculated on the total room price. The rate at which they are calculated is known as the “maximum permissible interest rate” or MPIR.</p> <p>The maximum permissible interest rate is set by the government and is currently <a href="https://www.health.gov.au/sites/default/files/2023-06/base-interest-rate-bir-and-maximum-permissible-interest-rate-mpir-for-residential-aged-care_0.pdf">7.9%</a> per annum. The <a href="https://www.health.gov.au/our-work/residential-aged-care/managing-residential-aged-care-services/managing-accommodation-payments-and-contributions-for-residential-aged-care#accommodation-payment">formula</a> for a daily accommodation payment is (RAD × MPIR) ÷ 365.</p> <p>Unlike lump sums, daily accommodation payments are not refunded.</p> <p>The third option is a <a href="https://www.health.gov.au/our-work/residential-aged-care/managing-residential-aged-care-services/managing-accommodation-payments-and-contributions-for-residential-aged-care#accommodation-payment">combination payment</a>. This means paying part of the room price as a lump sum, with daily payments calculated on the remaining room amount. On leaving the home, the part lump sum is refunded to the resident or their estate.</p> <p>With a combination payment, the consumer can choose to pay whatever amount they like for the lump sum.</p> <p>The table below shows three different ways someone could pay for a room priced at $400,000.</p> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=432&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=432&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=432&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=542&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=542&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=542&amp;fit=crop&amp;dpr=3 2262w" alt="" /></a><figcaption><span class="attribution"><a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span></figcaption></figure> <p>So which is best? It’s impossible to say. It depends on a person’s circumstances, family situation, finances, preferences and expected length of stay.</p> <h2>Why do some people choose a lump sum?</h2> <p>One downside of a lump sum (or part lump sum) is that choosing this option means this money is not invested elsewhere.</p> <p>By handing over the lump sum, for example, you forgo returns you could have made by investing this same money into property or stocks over the period of your nursing home stay.</p> <p>On the other hand, paying lump sum means you get to avoid the daily interest payments (the 7.9% in the table above).</p> <p>So you could potentially be better off paying a lump sum if you think there’s no way you could make investment returns on that money that are substantially higher than the interest you’d be charged through daily payments.</p> <p>One advantage of choosing a lump sum is it’s considered an <a href="https://www.dva.gov.au/get-support/health-support/care-home-or-aged-care/help-pay-home-or-aged-care/residential-aged-0">exempt asset</a> for pension purposes; some people may get more <a href="https://www.afr.com/wealth/personal-finance/five-things-you-need-to-know-about-aged-care-deposits-20200302-p54606">pension</a> if they pay the lump sum.</p> <p>The lump sum, however, does count as an asset in determining the <a href="https://www.health.gov.au/our-work/residential-aged-care/charging-for-residential-aged-care-services/residential-aged-care-fee-scenarios-for-people-entering-care-from-1-july-2014">means-tested care fee</a>.</p> <p>And if you sell your house, remember any money leftover after you pay the lump sum will be counted as assets when you’re means-tested for the pension and means-tested care fee.</p> <h2>Why might some people prefer daily payments?</h2> <p>Not everyone can can afford a lump sum. Some may not want to <a href="https://theconversation.com/is-it-worth-selling-my-house-if-im-going-into-aged-care-161674">sell their home</a> to pay one. Some may want to hold onto their house if they think property prices may increase in the future.</p> <p>Daily payments have recently overtaken lump sums as the most <a href="https://www.health.gov.au/sites/default/files/documents/2021/08/ninth-report-on-the-funding-and-financing-of-the-aged-care-industry-july-2021.pdf">popular payment option</a>, with 43% of people paying this way. However, recent <a href="https://amp-smh-com-au.cdn.ampproject.org/c/s/amp.smh.com.au/money/super-and-retirement/aged-care-interest-rate-increase-sees-daily-payments-almost-double-20230324-p5cuz2.html">interest rate rises</a> may slow or reverse this trend.</p> <p>And if a spouse or “<a href="https://www.dva.gov.au/get-support/health-support/care-home-or-aged-care/residential-aged-care/aged-care-costs">protected person</a>” – such as a dependant or relative that meets certain criteria – is still living in the house, it’s also exempt from assets tests for the pension and other aged care fees.</p> <p>If the home is vacated by a protected person, its value is still excluded from the pension means test for <a href="https://www.dva.gov.au/get-support/health-support/care-home-or-aged-care/help-pay-home-or-aged-care/residential-aged-0">two years</a> (although rental income is still assessed).</p> <p>If you do not anticipate a lengthy nursing home stay, daily payments may potentially be the easiest option. But it’s best to consult a financial adviser.</p> <h2>What does the research say?</h2> <p>My <a href="https://www.mq.edu.au/__data/assets/pdf_file/0007/1190086/What-drives-end-of-life-financial-decisions.pdf">research</a> with colleagues found many people choose the lump sum option simply because they can afford to.</p> <p>Those <a href="https://ahes.org.au/portfolio-items/entering-aged-care/">owning residential property</a> are more likely to pay a lump sum, mostly because they can sell a house to get the money.</p> <p>People who consult financial advisers are also more likely to choose lump sums. This may be due to <a href="https://www.afr.com/wealth/aged-care-costs-most-opt-for-pay-as-you-go-20181023-h170g4">financial advice</a> suggesting it’s tough to earn investment returns higher than what you’d save by avoiding the interest charged in the daily payment option.</p> <p>Some aged care providers <a href="https://www.mq.edu.au/__data/assets/pdf_file/0003/1164243/the-role-of-refundable-accommodation-deposits-FINAL.pdf">prefer</a> lump sum payment since they <a href="https://www.agedcarequality.gov.au/providers/prudential-standards/permitted-use-refundable-deposits">use</a> these to renovate or refurbish their facilities. But providers are not allowed to influence or control your decision on how to pay.</p> <p>The recent Royal Commission into Aged Care recommended <a href="https://agedcare.royalcommission.gov.au/sites/default/files/2021-03/final-report-recommendations.pdf">phasing out</a> lump sums as a payment option, leaving only daily payments. While that would reduce the complexity of the payment decision and remove the incentive for providers to sway decisions, it would also reduce consumer choice.</p> <h2>Is there anything else I should know?</h2> <p>Some 60% of people we <a href="https://www.mq.edu.au/__data/assets/pdf_file/0007/1190086/What-drives-end-of-life-financial-decisions.pdf">surveyed</a> found the decision complex, while 54% said it was stressful.</p> <p>It is best to seek professional <a href="https://www.myagedcare.gov.au/understanding-aged-care-home-accommodation-costs#financial-advice">financial advice</a> before you decide.</p> <p>Services Australia also runs a free <a href="https://www.servicesaustralia.gov.au/what-financial-information-service?context=21836">Financial Information Service</a> that can help you better understand your finances and the payment decision. But it does not give <a href="https://www.servicesaustralia.gov.au/financial-information-service-officers?context=21836#a2">financial advice or prepare plans</a>.</p> <p>You have <a href="https://www.health.gov.au/our-work/residential-aged-care/managing-residential-aged-care-services/managing-accommodation-payments-and-contributions-for-residential-aged-care">28 days to choose a payment method</a> after admission, and six months to pay if you <a href="https://www.health.gov.au/our-work/residential-aged-care/managing-residential-aged-care-services/managing-accommodation-payments-and-contributions-for-residential-aged-care">choose a lump-sum payment</a>.</p> <p>In the interim, you will be charged daily interest payments on the room price.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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/207405/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/anam-bilgrami-1179543">Anam Bilgrami</a>, Research Fellow, Macquarie University Centre for the Health Economy, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>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/lump-sum-daily-payments-or-a-combination-what-to-consider-when-paying-for-nursing-home-accommodation-207405">original article</a>.</em></p>

Retirement Life

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Over-55s the only group to receive Centrelink payment boost

<p>Older recipients of JobSeeker will receive a higher welfare payment as the federal budget is set to include an increase in payments for 227,000 Aussies.</p> <p>According to <em>7News</em>, the budget will include an increase in the base rate of the JobSeeker for people aged 55 and above.</p> <p>The change honours Treasurer Jim Chalmers’ promise that an increase “will be focused on the most vulnerable”.</p> <p>Finance Minister Katy Gallagher previously committed to a “significant improvement” in terms of the budget.</p> <p>When asked if the rate of JobSeeker would be lifted, Gallagher revealed the budget would contain “ongoing” investments to help people with cost-of-living pressures, in addition to one-off measures.</p> <p>“This budget will have a significant cost-of-living package and that cost-of-living package will be targeted to the most vulnerable Australians,” she said.</p> <p>About 227,000 Jobseeker recipients are 55 and over, which is the highest number of any age group and the group most likely to be unemployed long-term, meaning they are without a job for five years or more.</p> <p>The majority of people in this group are women.</p> <p>Senior sources reportedly told <em>7News</em> that the increase will be modest, not the $100-a-week advocates are hoping for but what the budget can afford.</p> <p>The change is unlikely to please Raise the Rate campaigners, who have called for the government to bring payments above the poverty line.</p> <p><em>7News </em>reported that the government will sell the moderate increase as a “responsible first step”, an increase that will help the most vulnerable of JobSeeker recipients and honours its election commitment to do what it can to help within the restraints of the budget.</p> <p>The pressure continues to pile up for the government to substantially increase income support payments above $49.50 a day for singles on JobSeeker and $40.20 a day for Youth Allowance.</p> <p>An open letter to the Prime Minister, which has been signed by more than 300 politicians, community advocates and prolific Aussies, called for an increase to be included in the budget to support those most in need.</p> <p>“Right now, the rate of JobSeeker is so low that people are being forced to choose between paying their rent or buying enough food and medicine,” the letter, coordinated by the Australian Council of Social Service, read.</p> <p>In 2022, the council’s research found six in 10 people on income support were eating less or reporting difficulty getting medicine or care due to their inadequate income. This increased to seven in 10 in March 2023.</p> <p>The budget plans to extend single-parenting payments and increase rental assistance - particularly for women.</p> <p>Around $120 billion in Morrison Government road and rail projects will be reviewed and money reprioritised, with hundreds of smaller projects likely to be stopped.</p> <p><em>Image credit: Getty</em></p>

Money & Banking

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Major boost to pension and allowance just days away

<p>The federal government has announced big changes to government allowance, with nearly 5 million Aussies set to benefit from an increase to their pension payments. Read more:</p> <p>Almost 5 million Aussies will receive a major increase to their pension payments as they are indexed to inflation.</p> <p>Recipients of the Age Pension, Disability Support Pension and Carer Payment can expect an increase of $37.50 a fortnight for singles and $56.40 a fortnight for couples combined.</p> <p>The maximum fortnightly rate of the pension is set to increase to $1,064 for singles and $1,604 for couples,  including the pension and energy supplements.</p> <p>Single, childless JobSeeker and ABSTUDY recipients over 22 will receive an extra $24.70 per fortnight.</p> <p>Each half of a couple receiving payments will receive a $22.50 increase per fortnight.</p> <p>Single parents receiving the parenting payment will benefit from an extra $33.90 a fortnight.</p> <p>Single parents on the parenting payment will also receive an additional $33.90 per fortnight, with the rate increasing to $967.90, including the Pension Supplement, Energy Supplement, and Pharmaceutical Allowance.</p> <p>Single, childless recipients of the maximum rate Common Rent Assistance will see an increase of $5.60, receiving $157.20 per fortnight.</p> <p>People who receive the maximum rate and have one or two children will see an increase of $6.58 to $184.94 per fortnight, while those with three or more children will receive an increase of $7.42 to $208.74 per fortnight.</p> <p>According to the federal government, the indexation of social security payments will bring cost-of-living relief for 4.7 million people.</p> <p>Social Services Minister Amanda Rishworth said the government was supporting Australians most in need.</p> <p>"Australia's social security system exists to support our most vulnerable citizens, and we know they are feeling the pinch," she said.</p> <p>"Indexation is a pillar of our social security system and we want more money in the pockets of everyday Australians so they can better afford essentials.</p> <p>"The increase is an important part of the system and helps those doing it toughest.”</p> <p>The indexation of payments begins on March 20.</p> <p><em>Image credit: Getty</em></p>

Money & Banking

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Record boost to Centrelink payments coming for nearly one million Aussies

<p dir="ltr">Hundreds of thousands of Australians receiving welfare are due to receive the biggest increase to their payments in two decades.</p> <p dir="ltr">The increase will see payments for young people, including parents, students and those on disability, increase from January 1, 2023.</p> <p dir="ltr">From next year, the base rate for singles on Youth Allowance will increase by at least $19.10 - with a maximum $32.40 extra a fortnight - taking the maximum rate up to $569.80.</p> <p dir="ltr">Single Australians with dependents can expect a boost of $41.40, bringing payments up to $729.60, while couples will receive an additional $35.20 a fortnight.</p> <p dir="ltr">For those under 21 without kids who receive Disability Support Pension, including Youth Disability Supplement, the payment increase is expected to range between $27.40 and $40.70 a fortnight.</p> <p dir="ltr">Recipients of Austudy, ABSTUDY, Mobility Allowance, Double Orphan Pension, Carer Allowance and Pharmaceutical Allowance will also be included in the increases, which are part of a routine indexation that happens every January to keep up with inflation.</p> <p dir="ltr">It comes after the Reserve Bank of Australia forecasted that inflation would peak at eight percent by the end of 2022.</p> <p dir="ltr">In comparison, payments for young people and students have been indexed at 6.1 percent. </p> <p dir="ltr">Social services minister Amanda Rishworth said the increase would help ease the pressure coming from the current cost-of-living crisis.</p> <p dir="ltr">“With the cost of living increasing, we need to ensure students and young people can cover basic costs while focusing on their studies and career aspirations,” she said.</p> <p dir="ltr">While young people are the subject of these payment increases, those who receive Jobseeker or the Aged Pension won’t be left out, with indexation increases announced for all welfare payments were announced by the federal government in September.</p> <p dir="ltr">These payments are also indexed at other times of the year, with the Aged Pension increasing in March and September.</p> <p><span id="docs-internal-guid-4ef18bd0-7fff-9f99-b17c-fdf2ca04bab3"></span></p> <p dir="ltr"><em>Image: Getty Images</em></p>

Money & Banking

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Which Centrelink payments are going up from July 1

<p>From July the 1st, over 1.4 million Australian families will benefit from an increase to their Centrelink payments.</p> <p>The federal government has announced increases to the Family Tax Benefit (Part A and B) to keep up with the rising cost of living.</p> <p>Under the Family Tax Benefit Part A, payments for families with a child aged under 13 will increase up to $204.40 over 2022-2023.</p> <p>The payments will also increase by a maximum of $255.50 for families with a child 13 years and older.</p> <p>For those receiving Family Tax Benefit Part B, there will be an increase of as much as $164.25 per year where a family has their youngest child under 5.</p> <p>For those families on Family Tax Benefit Part B with a youngest child aged between five to eighteen will receive up to $116.80 more per year.</p> <p>The changes are expected to impact more than 1.4 million families, Social Services Minister Amanda Rishworth said.</p> <p>It was also announced that the amount of income or assets an Age Pension, Disability Support Pension or Carer Payment recipient can have before their payment is affected will increase.</p> <p>“Social security and family payments have a built-in safeguard where they are automatically indexed at regular intervals to help them maintain purchasing power,” Rishworth said.</p> <p>Those who receive other family payments, such as Multiple Birth Allowance and Newborn Supplement are also set to receive an increase.</p> <p><em>Image: Getty</em></p>

Money & Banking

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Pay ‘with a smile or a wave’: Why Mastercard’s new face recognition payment system raises concerns

<p>Mastercard’s <a href="https://www.mastercard.com/news/press/2022/may/with-a-smile-or-a-wave-paying-in-store-just-got-personal/" target="_blank" rel="noopener">“smile to pay”</a> system, announced last week, is supposed to save time for customers at checkouts. It is being trialled in Brazil, with future pilots planned for the Middle East and Asia.</p> <p>The company argues touch-less technology will help speed up transaction times, shorten lines in shops, heighten security and improve hygiene in businesses. But it raises concerns relating to customer privacy, data storage, crime risk and bias.</p> <p><strong>How will it work?</strong></p> <p>Mastercard’s biometric checkout system will provide customers facial recognition-based payments, by linking the biometric authentication systems of a number of third-party companies with Mastercard’s own payment systems.</p> <p>A Mastercard spokesperson told The Conversation it had already partnered with NEC, Payface, Aurus, Fujitsu Limited, PopID and PayByFace, with more providers to be named.</p> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/464953/original/file-20220524-22-ga0v7l.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/464953/original/file-20220524-22-ga0v7l.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/464953/original/file-20220524-22-ga0v7l.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/464953/original/file-20220524-22-ga0v7l.jpeg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/464953/original/file-20220524-22-ga0v7l.jpeg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/464953/original/file-20220524-22-ga0v7l.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/464953/original/file-20220524-22-ga0v7l.jpeg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/464953/original/file-20220524-22-ga0v7l.jpeg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=3 2262w" alt="The 'Fujitsu' logo in red is displayed on a building's side" /></a><figcaption><em><span class="caption">Mastercard has partnered with Fujitsu, a massive information and communications technology firm offering many different products and services.</span> <span class="attribution"><span class="source">Shutterstock</span></span></em></figcaption></figure> <p>They said “providers need to go through independent laboratory certification against the program criteria to be considered” – but details of these criteria aren’t yet publicly available.</p> <p>According to <a href="https://www.siliconrepublic.com/business/mastercard-facial-recognition-biometric-payments" target="_blank" rel="noopener">media</a> reports, customers will have to install an app which will take their picture and payment information. This information will be saved and stored on the third-party provider’s servers.</p> <p>At the checkout, the customer’s face will be matched with the stored data. And once their identity is verified, funds will be deducted automatically. The “wave” option is a bit of a trick: as the customer watches the camera while waving, the camera still scans their face – not their hand.</p> <p>Similar authentication technologies are used on smartphones (face ID) and in many airports around the world, including “<a href="https://www.abf.gov.au/entering-and-leaving-australia/smartgates/arrivals" target="_blank" rel="noopener">smartgates</a>” in Australia.</p> <p><a href="https://www.theverge.com/2017/9/4/16251304/kfc-china-alipay-ant-financial-smile-to-pay" target="_blank" rel="noopener">China</a> started using biometrics-based checkout technology back in 2017. But Mastercard is among the first to launch such a system in Western markets – competing with the “pay with your palm” <a href="https://techcrunch.com/2020/09/29/amazon-introduces-the-amazon-one-a-way-to-pay-with-your-palm-when-entering-stores/" target="_blank" rel="noopener">system</a> used at cashier-less Amazon Go and Whole Foods brick and mortars in the United States.</p> <p><strong>What we don’t know</strong></p> <p>Much about the precise functioning of Mastercard’s system isn’t clear. How accurate will the facial recognition be? Who will have access to the databases of biometric data?</p> <p>A Mastercard spokesperson told The Conversation customers’ data would be stored with the relevant biometric service provider in encrypted form, and removed when the customer “indicates they want to end their enrolment”. But how will the removal of data be enforced if Mastercard itself can’t access it?</p> <p>Obviously, privacy protection is a major concern, especially when there are many potential third-party providers involved.</p> <p>On the bright side, Mastercard’s <a href="https://www.investopedia.com/articles/markets/032615/how-mastercard-makes-its-money-ma.asp" target="_blank" rel="noopener">customers</a> will have a choice as to whether or not they use the biometrics checkout system. However, it will be at retailers’ discretion whether they offer it, or whether they offer it exclusively as the only payment option.</p> <p>Similar face-recognition technologies used in airports, and <a href="https://www.brookings.edu/research/police-surveillance-and-facial-recognition-why-data-privacy-is-an-imperative-for-communities-of-color/" target="_blank" rel="noopener">by police</a>, often offer no choice.</p> <p>We can assume Mastercard and the biometrics provider with whom they partner will require customer consent, as per most privacy laws. But will customers know what they are consenting to?</p> <p>Ultimately, the biometric service providers Mastercard teams up with will decide how they use the data, for how long, where they store it, and who can access it. Mastercard will merely decide what providers are “good enough” to be accepted as partners, and the minimum standards they must adhere to.</p> <p>Customers who want the convenience of this checkout service will have to consent to all the related data and privacy terms. And as reports have noted, there is potential for Mastercard to integrate the feature with loyalty schemes and make personalised recommendations <a href="https://www.cnbc.com/2022/05/17/mastercard-launches-tech-that-lets-you-pay-with-your-face-or-hand.html" target="_blank" rel="noopener">based on purchases</a>.</p> <p><strong>Accuracy is a problem</strong></p> <p>While the accuracy of face recognition technologies has previously been challenged, the current <em>best</em> facial authentication algorithms have an error of just 0.08%, according to tests by the <a href="https://github.com/usnistgov/frvt/blob/nist-pages/reports/1N/frvt_1N_report_2020_03_27.pdf" target="_blank" rel="noopener">National Institute of Standards and Technology</a>. In some countries, even banks have <a href="https://techhq.com/2020/09/biometrics-the-most-secure-solution-for-banking/" target="_blank" rel="noopener">become comfortable</a> relying on it to log users into their accounts.</p> <p>Yet we can’t know how accurate the technologies used in Mastercard’s biometric checkout system will be. The algorithms underpinning a technology can work almost perfectly when trailed in a lab, but perform <a href="https://www.csis.org/blogs/technology-policy-blog/how-accurate-are-facial-recognition-systems-%E2%80%93-and-why-does-it-matter" target="_blank" rel="noopener">poorly</a> in real life settings, where lighting, angles and other parameters are varied.</p> <p><strong>Bias is another problem</strong></p> <p>In a 2019 study, NIST <a href="https://nvlpubs.nist.gov/nistpubs/ir/2019/NIST.IR.8280.pdf#page=5" target="_blank" rel="noopener">found</a> that out of 189 facial recognition algorithms, the majority were biased. Specifically, they were less accurate on people from racial and ethnic minorities.</p> <p>Even if the technology has improved in the past few years, it’s not foolproof. And we don’t know the extent to which Mastercard’s system has overcome this challenge.</p> <p>If the software fails to recognise a customer at the check out, they might end up disappointed, or even become irate – which would completely undo any promise of speed or convenience.</p> <p>But if the technology misidentifies a person (for instance, John is recognised as Peter – or <a href="https://www.youtube.com/watch?v=e8-yupM-6Oc" target="_blank" rel="noopener">twins are confused</a> for each other), then money could be taken from the wrong person’s account. How would such a situation be dealt with?</p> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/464424/original/file-20220520-19-5hfuvx.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/464424/original/file-20220520-19-5hfuvx.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/464424/original/file-20220520-19-5hfuvx.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=617&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/464424/original/file-20220520-19-5hfuvx.jpeg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=617&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/464424/original/file-20220520-19-5hfuvx.jpeg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=617&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/464424/original/file-20220520-19-5hfuvx.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=776&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/464424/original/file-20220520-19-5hfuvx.jpeg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=776&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/464424/original/file-20220520-19-5hfuvx.jpeg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=776&amp;fit=crop&amp;dpr=3 2262w" alt="" /></a><figcaption><em><span class="caption">There’s no evidence facial recognition technology is infallible. These systems can misidentify and also have biases.</span> <span class="attribution"><span class="source">Shutterstock</span></span></em></figcaption></figure> <p><strong>Is the technology secure?</strong></p> <p>We often hear about software and databases being hacked, even in <a href="https://www.csoonline.com/article/2130877/the-biggest-data-breaches-of-the-21st-century.html" target="_blank" rel="noopener">cases of</a> supposedly very “secure” organisations. Despite Mastercard’s <a href="https://wwmastw.cnbc.com/2022/05/17/mastercard-launches-tech-that-lets-you-pay-with-your-face-or-hand.html" target="_blank" rel="noopener">efforts</a> to ensure security, there’s no guarantee the third-party providers’ databases – with potentially millions of people’s biometric data – won’t be hacked.</p> <p>In the wrong hands, this data could lead to <a href="https://www.comparitech.com/identity-theft-protection/identity-theft-statistics/" target="_blank" rel="noopener">identity theft</a>, which is one of the fastest growing types of crime, and financial fraud.</p> <p><strong>Do we want it?</strong></p> <p>Mastercard suggests 74% of customers are in favour of using such technology, referencing a stat from its <a href="https://www.mastercard.com/news/ap/en/newsroom/press-releases/en/2020/april/mastercard-study-shows-consumers-moving-to-contactless-payments-for-everyday-purchases/" target="_blank" rel="noopener">own study</a> – also used by <a href="https://www.mastercard.com/news/ap/en/newsroom/press-releases/en/2020/october/mastercard-idemia-and-matchmove-pilot-fingerprint-biometric-card-in-asia-to-enhance-security-and-safety-of-contactless-payments" target="_blank" rel="noopener">business partner</a> Idemia (a company that sells biometric identification products).</p> <p>But the report cited is vague and brief. Other studies show entirely different results. For example, <a href="https://www.getapp.com/resources/facial-recognition-technology/#how-comfortable-are-consumers-with-facial-recognition-technology" target="_blank" rel="noopener">this study</a> suggests 69% of customers aren’t comfortable with face recognition tech being used in retail settings. And <a href="https://www.securitymagazine.com/articles/93521-are-consumers-comfortable-with-facial-recognition-it-depends-says-new-study" target="_blank" rel="noopener">this one</a> shows only 16% trust such tech.</p> <p>Also, if consumers knew the risks the technology poses, the number of those willing to use it might drop even lower.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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/183447/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/rita-matulionyte-170113" target="_blank" rel="noopener">Rita Matulionyte</a>, Senior Lecturer in Law, <a href="https://theconversation.com/institutions/macquarie-university-1174" target="_blank" rel="noopener">Macquarie University</a></em></p> <p><em>This article is republished from <a href="https://theconversation.com" target="_blank" rel="noopener">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/pay-with-a-smile-or-a-wave-why-mastercards-new-face-recognition-payment-system-raises-concerns-183447" target="_blank" rel="noopener">original article</a>.</em></p> <p><em>Image: Getty Images</em></p>

Technology

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What a disaster: federal government slashes COVID payment when people need it most

<p>With Australia’s official COVID-19 infection numbers topping <a href="https://www.nytimes.com/interactive/2021/world/australia-covid-cases.html">100,000 a day</a>, the federal government has slashed its last remaining pandemic support payment.</p> <p>The decision is ill-timed, irresponsible and heartless. It is stripping away support for those most affected by the pandemic at the time they need it most. It will place those in low paid and precarious work in further financial stress as they lose income to isolate when infected or in close contact with someone else with COVID-19.</p> <p>The Pandemic Leave Disaster Payment was introduced in August 2020 in response to concerns casual workers and others without sick or pandemic leave entitlements could not take time off work when infected or in contact with someone with COVID-19.</p> <p>The leave payment was initially available to those not qualifying for JobKeeper – or, after JobKeeper ended in March 2021, the “disaster payment” introduced in response to <a href="https://theconversation.com/support-package-for-sydney-better-and-more-fit-for-purpose-than-jobkeeper-164394">the Sydney lockdown</a> in July 2021. Since that payment ended the Pandemic Leave Disaster Payment is the only individual financial support the federal government provides.</p> <p>Available to people who had contracted COVID, were a close contact or needed to care for someone who had COVID, until this week it paid A$750 a week for two weeks. You could claim the payment regardless of the number of hours of paid work you lost.</p> <p>On January 18 the rules tightened – a move announced via a <a href="https://ministers.pmc.gov.au/mckenzie/2022/changes-pandemic-leave-disaster-payment">press release </a> on January 8 (a Saturday).</p> <p>Now it only pays $750 if you lose 20 hours or more of paid work a week. If you lose 8-19 hours you get just $450 a week. If you lose less than eight hours you get nothing.</p> <p>Getting the payment has also been made more difficult by imposing a 14-day time limit to apply, from the start of the isolation period. To qualify, you must show evidence of a positive PCR or rapid antigen test. Considering the difficulty of obtaining RATs, and delays in PCR test results <a href="https://www.smh.com.au/politics/victoria/test-samples-no-longer-suitable-after-seven-day-wait-20220108-p59ms1.html">of a week or more</a>, this is a unreasonable and unnecessary constraint.</p> <h2>Flawed eligibility rules</h2> <p>A major flaw in the eligibility rules for the leave payment it is not available to people receiving social security payments. This excludes all JobSeeker recipients, despite about <a href="https://data.gov.au/data/dataset/dss-payment-demographic-data/resource/80cc89a3-3208-4e0d-9745-598f7a882e28">one in four</a> being in some form of paid work – generally low-paid casual jobs.</p> <p>The leave payment has been a vital part of the economic supports to help people stay safe and protect their loved ones and the community.</p> <p>The peak body for the community services sector, the Australian Council of Social Service, has <a href="https://www.acoss.org.au/media-releases/?media_release=another-income-hit-for-casual-workers-massive-cut-to-pandemic-leave-disaster-payment">condemned this decision</a>. It says cutting the payment will leave people without enough to cover basic costs, let alone the extra costs of isolation such as delivery fees, rapid tests (if you can get them) and personal protective equipment.</p> <h2>Worst time possible</h2> <p>There could scarcely be a worse time to cut this payment, with Australia now in the worst stage of the pandemic.</p> <p>Between August 5 2020 and July 8 2021 the Pandemic Leave Disaster Payment provided <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp2122/Quick_Guides/COVID-19DisasterPayments">almost 15,000 grants</a> to support those in need. During this period the peak COVID case rate was just over 500 day, in August 2020. Consider, therefore, the likely need now we’re at more than <a href="https://www.nytimes.com/interactive/2021/world/australia-covid-cases.html">100,000 a day</a>.</p> <p>With no other form of federal income support available you may apply for an unemployment or sickness payment like JobSeeker. But Services Australia advises this will be paid about <a href="https://www.servicesaustralia.gov.au/when-youll-get-your-first-jobseeker-payment?context=51411">two weeks after</a> a claim is granted. That is of little help to cover rent while you’re isolating with COVID. JobSeeker is also a maximum of $315 a week – inadequate to cover basic costs.</p> <p>This cut will affect many of the same people <a href="https://www.dailytelegraph.com.au/news/national/pm-announces-national-day-of-thanks-for-pandemic-heroes/news-story/174c8ccb94814aaa554d79eea0193e4f">lauded as the heroes of pandemic</a> – essential workers employed casually in health and aged care, supermarkets, hospitality venues and warehouses. It will also hurt temporary visa holders, who are entitled to the leave payment and do not qualify for any other federal income support.</p> <p>Last week <a href="https://www.acoss.org.au/media-releases/?media_release=community-sector-calls-for-collaboration-and-decisive-leadership-from-national-cabinet-to-deal-with-covid-debacle">ACOSS called for</a> the establishment of a civil society COVID Rapid Response Group to work alongside National Cabinet. We need the interests of people most at risk in the room at the highest levels when decisions like the future of the Pandemic Leave Disaster Payment are made.</p> <p>Cutting this payment now is effectively telling low-paid workers at the worst stage of the pandemic in Australia that they’re on their own.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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; text-shadow: none !important;" src="https://counter.theconversation.com/content/175146/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><span><a href="https://theconversation.com/profiles/cassandra-goldie-94635">Cassandra Goldie</a>, Adjunct Professor and UNSW Law Advisory Council Member, <em><a href="https://theconversation.com/institutions/unsw-1414">UNSW</a></em></span></p> <p>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-a-disaster-federal-government-slashes-covid-payment-when-people-need-it-most-175146">original article</a>.</p> <p><em>Image: Mick Tsikas/AAP</em></p>

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Overhaul of payments system to cover digital wallets, buy now pay later, cryptocurrency

<p>Treasurer Josh Frydenberg will announce on Wednesday a comprehensive reform of regulations governing the payments system, to bring it up to date with innovations such as digital wallets and cryptocurrency.</p> <p>The government says without the changes – the biggest in 25 years – Australians businesses and consumers could increasingly be making transactions in spaces beyond the full reach of Australian law, where rules were determined by foreign governments and multinationals.</p> <p>It points out that in three decades payment methods have gone from cash to cheques, cheques to credit cards, credit cards to debit cards and now to “tap and go” via digital wallets on phones or watches.</p> <p>Around a decade ago, cryptocurrency was a concept. Currently, there are more than 220 million participants in the worldwide crypto market, including many in Australia.</p> <p>The planned reforms will centralise oversight of the payment system by ensuring government plays a greater leadership role. The treasurer will be given more power to intervene in certain circumstances.</p> <p>Consumer protection will be strengthened, and more competition and innovation will be promoted.</p> <p>The reform program will be in two phases. There will be consultations in the first half of next year on those that are most urgent and easy to implement. Consultations on the rest will be done by the end of the year.</p> <p>The government says the present one-size-fits-all licensing framework for payment service providers will be replaced graduated, risk-based regulatory requirements.</p> <p>There will be consideration of the feasibility of a retail central bank digital currency, and an examination of “de-banking” (where a bank declines to offer a service to a business or individual).</p> <p>Frydenberg says the comprehensive payments and crypto asset reform program would “firmly place Australia among a handful of lead countries in the world.</p> <p>"It is how we will capitalise on the opportunity for Australia to lead the world in this emerging and fast-growing area which has almost endless potential applications across the economy,” he says.</p> <p>“For businesses, these reforms will address the ambiguity that can exist about the regulatory and tax treatment of crypto assets and new payment methods.</p> <p>"In doing so, it will drive even more consumer interest, facilitate even more new entrants and enable even more innovation to take place.</p> <p>"For consumers, these changes will establish a regulatory framework to underpin their growing use of crypto assets and clarify the treatment of new payment methods.”<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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; text-shadow: none !important;" src="https://counter.theconversation.com/content/173331/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><span><a href="https://theconversation.com/profiles/michelle-grattan-20316">Michelle Grattan</a>, Professorial Fellow, <em><a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a></em></span></p> <p>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/overhaul-of-payments-system-to-cover-digital-wallets-buy-now-pay-later-cryptocurrency-173331">original article</a>.</p> <p><em>Image: Shutterstock</em></p>

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"Cold and brutal": Karl grills treasurer over scrapping of disaster payments

<p><span style="font-weight: 400;">Today Show co-host Karl Stefanovic has criticised the federal government over its plan to scale back, and eventually scrap, COVID-19 disaster payments. It was announced on Tuesday that the government will begin winding down the payments, which give $750 a week to people who have lost at least 20 hours of work, and $450 a week to those who have lost between eight and 20 hours, as each state and territory reaches their 70 and 80 per cent vaccination targets.</span></p> <p><span style="font-weight: 400;">Per the changes, once a state or territory reaches 70 per cent fully vaccinated, people will have to reapply each week for the payment, instead of it being automatically renewed. At 80 per cent, the payment will be phased out entirely within two weeks. For states and territories like NSW or the ACT, which are </span><a href="https://twitter.com/CaseyBriggs/status/1442700206420549636/photo/1"><span style="font-weight: 400;">estimated</span></a><span style="font-weight: 400;"> to reach 80% fully vaccinated by October 18th and 21st respectively, this change means the scrapping of the payment is imminent. </span></p> <p><span style="font-weight: 400;">Talking to treasurer Josh Frydenberg on the Today Show on Wednesday morning, co-host Karl Stefanovic called the decision “cold and brutal”, telling Frydenberg, “I get that you can’t keep it going and going but many industries won’t be back to normal at 70 or 80 per cent – you have the arts, nightclub, hospitality and tourism, especially in Far North Queensland … to cut them off is kind of cold and brutal, isn’t it?”</span></p> <blockquote class="twitter-tweet"> <p dir="ltr">“We can't continue with these emergency payments indefinitely.”<br /><br />The Federal Government will announce today that COVID disaster payments will be wound back as each state hits the 80 per cent double-dosed vaccination target. <a href="https://twitter.com/hashtag/9Today?src=hash&amp;ref_src=twsrc%5Etfw">#9Today</a> <a href="https://t.co/jHMFvZtDSH">pic.twitter.com/jHMFvZtDSH</a></p> — The Today Show (@TheTodayShow) <a href="https://twitter.com/TheTodayShow/status/1442976255402340363?ref_src=twsrc%5Etfw">September 28, 2021</a></blockquote> <p><span style="font-weight: 400;">In response, Frydenberg outlined the government’s partnership with the Queensland Government to support Queensland businesses, concluding that, “It’s those sorts of direct economic payments that complement what we’ve been doing at higher, broader level with the Covid disaster payment and other economic support.”</span></p> <p><span style="font-weight: 400;">Frydenberg failed to address how the federal government would provide support to those who have lost work as a result of COVID-19 and are not able to find replacement work in between now and the looming deadline. Many anti-poverty advocates and welfare campaigners expressed concern about the phasing out of the payments online, including the Antipoverty Centre, who tweeted, “They’re making a huge gamble with our lives, betting that jobs will magically return overnight.”</span></p> <blockquote class="twitter-tweet"> <p dir="ltr">The government has started the poverty clock ticking.<br /><br />They’re making a huge gamble with our lives, betting that jobs will magically return overnight. <br /><br />All that will come of this is more people in poverty and more lives destroyed. The disaster payment living up to its name. <a href="https://t.co/LtwzgMXotU">https://t.co/LtwzgMXotU</a></p> — The Antipoverty Centre (@antipovertycent) <a href="https://twitter.com/antipovertycent/status/1442856771341664264?ref_src=twsrc%5Etfw">September 28, 2021</a></blockquote> <p><em><span style="font-weight: 400;">Image: TODAY Show/Nine</span></em></p>

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Centrelink under fire after threatening to cancel 102-year-old woman's pension

<p>Centrelink is facing backlash after threatening to withdraw pension payments to a 102-year-old woman.</p> <p>Anne Hawkins, who is bed bound in her home in Punchbowl, was shocked last month when she suddenly had to provide the government agency with proof of her identity.</p> <p>The letter also stated that the documents needed to be provided in person. </p> <p>Ms Hawkins was only able to provide her Australian Citizenship certificate, due to her age, as Centrelink advised her family that she would need to obtain a NSW proof of age card. </p> <p><span>Ms Hawkins’ daughter Mary, said to do so she would, “need to be taken there by ambulance and wheeled into the Centre in a hospital bed.”</span></p> <p><span>Frank, Anne's son, told NCA Newswire that he spent several hours on the phone to Centrelink trying to resolve the problem, but to no avail. </span></p> <p><span>He said, “It was extremely frustrating for me and my family. We protected mum from as much of the aggravation as possible. Telling her was worst case scenario.”</span></p> <p><span>Anne's family were extremely concerned and shocked that the government agency were asking a 102-year-old to flout lockdown guidelines and  risk exposure to the Delta variant of COVID-19.</span></p> <p><span>“We’ve been locked down since the last week of June. This letter arrived on the 30th of July. It arrived during lockdown. It is pretty unreasonable that Centrelink should be asking people to show up to a service centre in the middle of a lockdown,” Frank said.</span></p> <p><span>Ms </span>Hawkins' local MP Tony Burke got involved in the issue, and demanded an explanation from Centrelink. </p> <p><span>“They actually wanted her to put herself at risk by leaving the house so she could jump through ridiculous bureaucratic hoops,” he told NCA Newswire.</span></p> <p><span>When Anne's family informed her of the situation, she joked she would have to get a job.</span></p> <p><span>Government Services Minister Linda Reynolds told NCA Newswire she “sincerely apologised” for the inconvenience caused.</span></p> <p><em>Image credits: 10News</em></p>

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Pension payment increase labelled "inadequate"

<p>Over five million Australians are expected to receive an increase in their social security payments from March 20.</p> <p>Minister for Families and Social Services Anne Ruston said the increases, in line with indexation arrangements, would help recipients keep up with changes in living costs.</p> <p>The rates for 2.6 million Age Pensioners as well as 750,000 people on the Disability Support Pension and 295,000 Carer Payment recipients will increase by $8.40 a fortnight to $952.70 for singles.</p> <p>For couples, the pension will increase by $12.60 a fortnight to $1,436.20 combined.</p> <p>Both rates include the Pension Supplement and Energy Supplement.</p> <p>Ruston explained indexation was one of the “regular mechanisms” built into the social security safety net “to make sure rates reflect the prices payment recipients see at the supermarket and at the bowser”.</p> <p>The JobSeeker payment will also be increasing for those aged 22 and over without children.</p> <p>Singles will be receiving an extra $5.10 a fortnight, and couples will be receiving $4.60 extra each including the Energy Supplement.</p> <p><span>The Australian Council of Social Service believes the rate is still inadequate and is urging senators to make changes to a bill before parliament to be more generous.</span></p>

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Loophole in JobKeeper payments worries tax experts

<p><span>A large loophole has been found in the assessment process for the JobKeeper payment that tax experts worry could be exploited by hundreds of thousands of Aussies.</span><br /><br /><span>In order to receive the full $1,200 per fortnight in wage support, sole traders will need to show the Tax Office they were working more than 20 hours per week in the reference period.</span><br /><br /><span>However the reference period is between the two fortnightly pay periods prior to either March 1, 2020 or July 1, 2020 - whichever had the higher hours worked.</span><br /><br /><span>The activity test given to sole traders simply means they need to be "actively engaged in the business" for 20 hours a week to receive the full JobKeeper rate.</span><br /><br /><span>However Chartered Accountants tax lead Michael Croker told <a rel="noopener" href="https://www.abc.net.au/news/2020-09-08/jobkeeper-loophole-will-tempt-sole-traders-into-rorts/12638334" target="_blank"><em>ABC news</em></a> that "What you're pointing out is a tempting opportunity.” .</span><br /><br /><span>Chartered Accountants represents 120,000 number crunchers around the country.</span><br /><br /><span>The profession is already trying to raise the fact it will be difficult for small businesses and sole traders to rally up their hours of work each fortnight.</span><br /><br /><span>"The Treasurer announced that for sole traders that they needed to be 'actively engaged in the business' for 20 hours or more per week to get the higher rate," Mr Croker explained.</span><br /><br /><span>He noted that they would otherwise only be eligible for the part-time rate of $750.</span><br /><br /><span>"Now, you could be washing the dishes at night and thinking about your business at the same time — that's a very loose test."</span><br /><br /><span>Mr Crocker says many Australians across the nation will be tempted to rort the system, adding that the JobKeeper system requires a degree of honesty for those applying.</span><br /><br /><span>"What we expect to see is common sense prevail around this," he said. .</span><br /><br /><span>"I think to a degree we shouldn't make a mountain out of a molehill here.</span><br /><br /><span>"We're about the economy and jobs, not about compliance and regulation."</span><br /><br /><span>ATO has announced in a statement they have a JobKeeper integrity team whose sole purpose is to make sure JobKeeper is going to those who genuinely need it.</span><br /><br /><span>"We use a range of sophisticated data and behavioural models to identify applications which we will need to review before we make a payment," an ATO spokesperson said in a statement.</span><br /><br /><span>"We will also continue to review applications after payment cycles to identify any risks and issues which cause us concern."</span></p>

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Shopper slams ALDI over coin payment ‘policy’

<p>A shopper has claimed ALDI refused to let her pay for her groceries in coins.</p> <p>The woman said she was shopping in a South Wentworthville store in Sydney’s west on June 3 when her payment of $9.25 in gold and silver coins was rejected.</p> <p>“I was abruptly and rudely scolded when paying $9.25 bill,” the woman wrote on a post in the ALDI Mums Facebook group.</p> <p>“The cashier told me that in future to pay in cash [notes] as ALDI policy can only accept $5 worth of coins. Mind you I had $7 worth of gold coins.”</p> <p>The woman went on to lodge three formal complaints on the German supermarket’s website. A spokesperson later contacted her, saying that the rejection was based on the Currency Act 1965.</p> <p>The <a href="https://www.oversixty.com.au/finance/retirement-income/3-ways-to-make-the-most-of-your-spare-change-1">law</a> prohibits the use of silver coins over $5 and gold coins over 10 times their face value, which equates to $10 worth of $1 coins and $20 worth of $2 coins. This means the woman’s payment – consisting of $7 worth of gold coins and $2.25 worth of silver coins – was legal and should have been accepted.</p> <p>An ALDI spokesperson told <em><a href="https://au.news.yahoo.com/aldi-shoppers-coin-payment-warning-sparks-fierce-debate-045519575.html">Yahoo News Australia</a> </em>that the supermarket had apologised to the customer.</p> <p>“Limiting the payment amount of coins is not an ALDI policy,” the spokesperson said.</p>

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Federal Government finally increases JobSeeker payment

<div class="post_body_wrapper"> <div class="post_body"> <div class="body_text "> <p>The Australian Federal Government is finally increasing the dole's $40-a-day base rate as the coronavirus pandemic throws hundreds of thousands of Australians out of work.</p> <p>Prime Minister Scott Morrison is working out how to reshape the Australian welfare system after the unemployment rate rose to 7.1%. This is due to 227,000 people losing their jobs.</p> <p>Morrison described the latest figures as "heartbreaking", but has refused to comment on the speculation.</p> <p>"JobSeeker is the place where, if you have lost your job, JobSeeker is the place where you can connect to other employment services, to training opportunities," he said.</p> <p>It is currently unclear as to the rate itself will rise or whether a new supplement will be added to the base JobSeeker payment.</p> <p>Morrison has also emphasised the importance of the JobSeeker Allowance in helping Australians get back to work.</p> <p>"We put our supports in place, income supports, JobKeeper and JobSeeker, and we put that in for six months so we would have that time to properly move for the next step, to change gears again," he said.</p> <p>"Because anyone who can tell you that they know exactly what is going to happen in September, in this COVID crisis, is having a loan of you."</p> </div> </div> </div>

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BREAKING: Pension payments could halve in July due to COVID-19 changes to superannuation

<div class="post_body_wrapper"> <div class="post_body"> <div class="body_text "> <p>Superannuation funds are currently warning retirees that their pension payments are about to be cut by half under new changes that come into effect from July 1.</p> <p>"You know, as far as I know, I'm not cognitively impaired and I do have a tertiary education and English is my first language — and yet, I had difficulty,” explained Sandra Luntz to<a rel="noopener" href="https://www.abc.net.au/news/2020-06-15/pension-payment-could-halve-july-because-covid-19-changes/12348612" target="_blank"><span> </span>ABC</a>.</p> <p>The 76-year-old former speech pathologist had to turn to her daughter to explain the letter.</p> <p>Currently, the Federal Government requires retirees collecting on their superannuation to withdraw a minimum amount each year.</p> <p>At times of financial instability, like now with the COVID-19 pandemic, the Government has moved to reduce the minimum drawdown as one of the measures in its COVID-19 stimulus package as it can be counterproductive to force people to draw on their super too quickly.</p> <p>If they withdraw too much too quickly, the superannuation that is supposed to last the rest of their lives will not do the job.</p> <p>Retirees are able to elect to set the payment to a higher level if it suits them better, but Luntz’s daughter Ann Pearson is worried about the people who might be caught unawares.</p> <p>"So my mum's on the minimum pension and I know for certain that mum could not live on half the amount of money that she's getting at the moment," she told AM.</p> <p>As Pearson is Head of Wealth products with Australian financial services company ClearView, it’s her job to understand the superannuation system of Australia.</p> <p>"My mum is quite financially savvy, but she wasn't aware that this would be happening," Ms Pearson said.</p> <p>"And when I told her, she was horrified, and not just horrified because her income was halving, but also horrified that someone had actually made this decision on her behalf without consulting her, and [horrified at] having had her choice taken away from her."</p> <p>Jason Poole from financial planners GPA Matrix said that more could have been done to alert people about the changes.</p> <p>"It's the sort of thing that could almost have its own TV campaign, a government announcement: 'You can reduce your pension if you wish and your administrator may well just forcibly do this to you,'" he said.</p> <p>The Assistant Minister for Superannuation and Financial Services Jane Hume said that superannuation trustees should do what’s best for its members.</p> <p>"Trustees should be carefully examining what's in the best interests of their pensioner members and not risk being perceived to hold on to people's money," Senator Hume said.</p> <p>"Some pensioners may need the money now, others may want to only take the minimum drawdown."</p> <p>The way that superannuation funds will handle the changes coming July 1 will be handled differently depending on the fund.</p> <p>"They are automatically reducing people's pensions to the new minimum. For those people, it could be quite difficult for them to suddenly discover that they don't have enough money in their bank account to pay their bills," explained Pearson.</p> </div> </div> </div>

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