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Kochie's thoughtful act for scam victim

David Koch has given back to a hard-working Aussie who lost her life savings to a convincing scam. For many years, scammers have been using the likeness of Australian celebrities to con people out of their money. Kochie is just one of many high-profile personalities who have had their identities used to run convincing scams, that thousands of people have fallen victim to. The former Sunrise host has often taken to social media to warn people of the illegitimate ads, but it hasn't been enough to stop the scammers in their tracks. In a special 7News Spotlight investigation, Kochie joined the team to lift the lid on the multi-billion-dollar scam industry in which fake advertisements featuring well-known celebrities have been used to con more than 600,000 Aussies. “It’s devastating because it’s my reputation on the line,” says Koch. “And these scams are so good, they’re so believable that people who trust me look at me and say, ‘Wow, I’m getting some comfort out of what this bloke is saying,’ and then are ripped off by some scammer from overseas.” Koch is desperately trying to stop this criminal act, saying, “I’ve reported it to the ACCC and ASIC. I’m part of an ACCC case against Meta at the moment surrounding these scam ads.” As part of the investigation, Kochie met Allison, who lost $250,000 when she invested her money in what she thought was a reputable company, fronted by who she believed to be the former Sunrise host. As an avid Port Adelaide supporter, she trusts Koch, who is also the Chairman of the football club. “Port Adelaide members are all part of a big family,” says Koch. “And the fact that these scammers use my association with the club to prey on members is just abhorrent.” After losing her savings, Allison has been struggling to make ends meet, and is on a payment plan so she can stay as a member of the AFL club she loves. After learning of her story, Koch himself has stepped in and ensured she has lifelong membership. “It’s the least we can do,” says Koch to Allison. “Because, football has got to be your haven.” Allison is just one of the many victims of complex scams in Australia, with reporter Sarah Greenhalgh believes millions of dollars have been illegally stolen. “The scammers successfully prey on these people’s unique vulnerabilities and the victims’ lives have changed forever as a result,” she says. Image credits: 7News Spotlight

Money & Banking

Australian churches collectively raise billions of dollars a year – why aren’t they taxed?

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/dale-boccabella-15706">Dale Boccabella</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> and <a href="https://theconversation.com/profiles/ranjana-gupta-1207482">Ranjana Gupta</a>, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a> There’s a good reason your local volunteer-run netball club doesn’t pay tax. In Australia, various nonprofit organisations are exempt from paying income tax, including those that do charitable work, such as churches. These exemptions or concessions can also extend to other taxes, including fringe benefits tax, state and local government property taxes and payroll taxes. The traditional justification for granting these concessions is that charitable activities benefit society. They contribute to the wellbeing of the community in a variety of non-religious ways. For example, charities offer welfare, health care and education services that the government would generally otherwise provide due to their obvious public benefits. The tax exemption, which allows a charity to retain all the funds it raises, provides the financial support required to relieve the government of this burden. The nonprofit sector is often called the third sector of society, the other two being government and for-profit businesses. But in Australia, this third sector is quite large. Some grassroots organisations have only a tiny footprint, but other nonprofits are very large. And many of these bigger entities – including some “megachurches” – run huge commercial enterprises. These are often indistinguishable from comparable business activities in the for-profit sector. So why doesn’t this revenue get taxed? And should we really give all nonprofits the same tax exemptions? <h2>Why don’t churches pay tax?</h2> The primary aim of a church is to advance or promote its religion. This itself counts as a charitable purpose under the <a href="https://www.legislation.gov.au/C2013A00100/asmade/text">2013 Charities Act</a>. However, section five of that act requires a church to have only charitable purposes – any other purposes must be incidental to or in aid of these. Viewed alone, the conduct of a church with an extensive commercial enterprise – which could include selling merchandise, or holding concerts and conferences – is not a charitable purpose. But Australian case law and <a href="https://www.acnc.gov.au/for-charities/start-charity/role-acnc-deciding-charity-status/legal-meaning-charity#:%7E:text=Taxation%20Ruling%20(TR)%202011%2F,set%20out%20in%20taxation%20rulings.">an ATO ruling</a> both support the idea that carrying on business-like activities can be incidental to or in aid of a charitable purpose. This could be the case, for example, if a large church’s commercial activities were to help give effect to its charitable purposes. Because of this, under Australia’s current income tax law, a church that is running a large commercial enterprise is able to retain its exemption from income tax on the profits from these activities. There are various public policy concerns with this. First, the lost tax revenue is likely to be significant, although the government’s annual tax expenditure statement does not currently provide an estimate of the amount of tax revenue lost. And second, the tax exemption may give rise to unfairness. A for-profit business competing with a church in a relevant industry may be at a competitive disadvantage – despite similar business activities, the for-profit entity pays income tax but the church does not. This competitive disadvantage may be reflected in lower prices for customers of the church business. <h2>What about taxing their employees?</h2> Churches that run extensive enterprises are likely to have many employees. Generally, all the normal Australian tax rules apply to the way these employees are paid – for example, employees pay income tax on these wages. Distributing profits to members would go against the usual rules of the church, and this prohibition is <a href="https://www.legislation.gov.au/C2013A00100/asmade/text">required</a> anyway for an organisation to qualify as a charity. Some churches may be criticised for paying their founders or leaders “excessive” wages, but these are still taxed in the same way as normal salaries. It’s important to consider fringe benefit tax – which employers have to pay on certain benefits they provide to employees. Aside from some qualifications, all the usual <a href="https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/how-fringe-benefits-tax-works">fringe benefit tax rules</a> apply to non-wage benefits provided to employees of a church. Just like their commercial (and taxable) counterparts, the payment for “luxury” travel and accommodation for church leaders and employees when on church business will not generate a fringe benefits taxable amount for the church. One qualification, though, is that a church is likely to be a <a href="https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/fbt-concessions-for-not-for-profit-organisations/fbt-rebatable-employers">rebatable employer</a> under the fringe benefit tax regime. This means it can obtain some tax relief on benefits provided to each employee, up to a cap. <h2>We may need to rethink blanket tax exemptions for charities</h2> Back in an age where nonprofits were mainly small and focused on addressing the needs of people failed by the market, the income tax exemption for such charities appeared appropriate. But in the modern era, some charities – including some churches – operate huge business enterprises and collect rent on extensive property holdings. Many are now questioning whether we should continue offering them an uncapped exemption from income tax, especially where there are questions surrounding how appropriately these profits are used. Debates about solutions to the problem have focused on various arguments. However, more data may be needed on the way charities apply their profits to a charitable purpose, particularly those involved in substantial commercial activities. An all-or-nothing rule exempting the whole charitable sector may no longer be fit for purpose if it fails to take into account the very different circumstances of different nonprofits.<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/228901/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/dale-boccabella-15706">Dale Boccabella</a>, Associate Professor of Taxation Law, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> and <a href="https://theconversation.com/profiles/ranjana-gupta-1207482">Ranjana Gupta</a>, Senior Lecturer Taxation, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/australian-churches-collectively-raise-billions-of-dollars-a-year-why-arent-they-taxed-228901">original article</a>. </div>

Money & Banking

Becoming a landlord while still renting? ‘Rentvesting’ promises a foot on the property ladder, but watch your step

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/james-graham-1264059">James Graham</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> As home ownership moves further out of reach for many Australians, “rentvesting” is being touted as a lifesaver. Rentvesting is the practice of renting one property to live in yourself, while simultaneously purchasing an investment property somewhere cheaper and leasing it out. Ideally, “rentvestors” get to enjoy the capital gains on an investment property while living where they actually want to live, allowing them to cash in and upsize to their dream home later. It might seem like a savvy way to game the property market. But what are the risks of such an investment strategy? And how might broad adoption of this behaviour affect housing affordability in Australia? <h2>A rising tide lifts all boats differently</h2> The aim of the rentvesting game is to buy cheap property now, ride the expected capital gains, and move into a more desirable home down the track. The hope is that by climbing the first rung of the property ladder early, the whole thing won’t be pulled up out of reach. The first problem with this strategy, however, is that capital gains on housing are not always and everywhere equal. Generally, the cheapest properties available to rentvestors will be houses in the regions or apartments in the city. But both regional housing and apartment properties <a href="https://www.abc.net.au/news/2024-02-20/house-apartment-price-gap-widens-record-high-property-market/103484076">tend to appreciate more slowly</a> than the inner-city houses rentvestors might hope to live in one day. They might get a foot on the property ladder, but the rungs themselves are slowly drifting apart. Would-be rentvestors should also be aware that investments by “out-of-town” buyers tend to generate <a href="https://academic.oup.com/rfs/article-abstract/29/2/486/1902789">much lower returns</a> – both capital gains and rental yields – than investments by locals. Out-of-towners don’t know the local market trends, don’t know which neighbourhoods to avoid, and aren’t able to monitor their investments as effectively from afar. Avoiding the regions by investing in city apartments presents its own difficulties. Large, unexpected maintenance bills and poor strata management are <a href="https://www.abc.net.au/news/2024-03-21/a-world-of-hidden-charges:-strata-company-insiders/103617944">common complaints</a>. <h2>Different costs lead to different returns</h2> Perhaps the potential rentvestor should invest in something more straightforward instead, like stocks. After all, the return on equities in Australia has <a href="https://academic.oup.com/qje/article/134/3/1225/5435538">outperformed housing</a> in recent decades. However, it is much easier to borrow to invest in property than it is to borrow to invest in the stock market. And leverage is the investor’s secret weapon. For example, if house prices were to appreciate at 10% per year, then using a mortgage and a A$100,000 deposit on a $1 million property would earn you a 100% return on equity before costs. But while both investors and homeowners would earn that same basic return, their costs could be very different. For starters, property investors face capital gains tax on the proceeds of property sales, <a href="https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-home/eligibility-for-main-residence-exemption">unlike those selling their primary residence</a>. Banks also typically charge <a href="https://www.rba.gov.au/chart-pack/interest-rates.html">higher interest rates</a> on mortgages to investors than to homeowners. At times, the Australian Prudential Regulation Authority has also imposed caps on bank lending against investment properties, making it more difficult to find mortgage financing in the first place. Highly leveraged properties require mortgage insurance, too. Investors may need to take out larger insurance policies against the properties themselves, reflecting the higher risks associated with investment properties. Then, you also have to throw in property management fees, council rates, strata management fees and regular and unexpected maintenance costs. <h2>Negative gearing offers little benefit</h2> What about negative gearing? Property investors that generate losses on their property can deduct these costs against the tax bill on their other income. But negative gearing disproportionately benefits high-income earners with large tax bills. The <a href="https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/personal-income-australia/latest-release">median Australian individual income</a> is around $55,00, which generates a tax bill of about $8,000 – not a lot from which investment property losses can be deducted. The bigger picture is that while negative gearing helps defray the regular costs of managing a property, it doesn’t do anything to change expected capital gains. At the end of the spreadsheet tally, an investment property could end up earning rentvestors significantly less than they could have gained by simply buying their first home. <h2>Effects on housing affordability</h2> Rentvesting is new enough that its prevalence and influence awaits formal academic study. But economists might speculate about its implications for the housing market more broadly. The simplest analysis suggests that a rentvestor occupies one rental property while supplying an additional rental property to the market. If, instead, they had bought a home, they would vacate a rental property while removing another property from the market. In this case, even rentvesting en masse would have zero net effect on the housing market. But a more nuanced perspective might consider where rentvestors are renting and where they are investing. Perhaps they are most likely to rent properties in the already-crowded inner city, but purchase investment properties in regional areas where other first home buyers would like to live. This would increase demand for rentals in the city and reduce the supply of owner-occupier properties in the regions, worsening the affordability of both. Of course, if these rentvestors all eventually move up the property ladder – selling in the region and purchasing in the city – this effect would be reversed. From that longer-term perspective, rentvestors would ultimately have little effect. <h2>We still need more houses</h2> Rentvesting is not a panacea for Australia’s housing market woes. Potential investors should weigh the benefits of property investment against its substantial costs and risks. Additionally, they need to carefully consider the obvious alternative: simply buying their first home up-front. We have good reason to be wary of yet another get-rich-quick scheme involving the housing market. But initial considerations suggest that for the market overall, rentvestor behaviour is no worse than someone simply buying their first home, which we would otherwise encourage. Rather than criticising those seeking a way though our housing market morass, we might instead redouble our efforts to increase the supply of housing.<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/229116/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/james-graham-1264059">James Graham</a>, Lecturer in Economics, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/becoming-a-landlord-while-still-renting-rentvesting-promises-a-foot-on-the-property-ladder-but-watch-your-step-229116">original article</a>. </div>

Money & Banking

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

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/peter-martin-682709">Peter Martin</a>, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292">Crawford School of Public Policy, Australian National University</a> What if the government was doing everything it could to stop thieves making off with our money, except the one thing that could really work? That’s how it looks when it comes to <a href="https://www.scamwatch.gov.au/types-of-scams">scams</a>, which are attempts to trick us out of our funds, usually by getting us to hand over our identities or bank details or transfer funds. Last year we lost an astonishing <a href="https://www.accc.gov.au/media-release/scam-losses-decline-but-more-work-to-do-as-australians-lose-27-billion">A$2.74 billion</a> to scammers. That’s more than $5,200 per minute – and that’s only the scams we know about from the 601,000 Australians who made reports. Many more would have kept quiet. If the theft of $5,200 per minute seems over the odds for a country Australia’s size, a comparison with the United Kingdom suggests you are right. In 2022, people in the UK lost <a href="https://www.ukfinance.org.uk/system/files/2023-05/Annual%20Fraud%20Report%202023_0.pdf">£2,300</a> per minute, which is about A$4,400. The UK has two and a half times Australia’s population. It’s as if international scammers, using SMS, phone calls, fake invoices and fake web addresses are targeting Australia, because in other places it’s harder. If we want to cut Australians’ losses, it’s time to look at rules about to come into force in the UK. <h2>Scams up 320% since 2020</h2> The current federal government is doing a lot – almost everything it could. Within a year of taking office, it set up the <a href="https://www.accc.gov.au/national-anti-scam-centre">National Anti-Scam Centre</a>, which coordinates intelligence. Just this week, the centre reported that figure of $2.74 billion, which is down 13% on 2022, but up 50% on 2021 and 320% on 2020. It’s planning “<a href="https://treasury.gov.au/consultation/c2023-464732">mandatory industry codes</a>” for banks, telecommunication providers and digital platforms. But the code it is proposing for banks, set out in a <a href="https://treasury.gov.au/sites/default/files/2023-11/c2023-464732-cp.pdf">consultation paper</a> late last year, is weak when compared to overseas. <h2>Banks are the gatekeepers</h2> Banks matter, because they are nearly always the means by which the money is transferred. Cryptocurrency is now much less used after the banks agreed to limit payments to high risk exchanges. Here’s an example of the role played by banks. A woman the Consumer Action Law Centre is calling <a href="https://consumeraction.org.au/wp-content/uploads/2024/02/Joint-submission-CALC-CHOICE-ACCAN-31012024-Scams-Mandatory-code-treasury-consultA.pdf">Amelia</a> tried to sell a breast pump on Gumtree. The buyer asked for her bank card number and a one-time PIN and used the code to whisk out $9,100, which was sent overseas. The bank wouldn’t help because she had provided the one-time PIN. Here’s another. A woman the Competition and Consumer Commission is calling <a href="https://www.accc.gov.au/system/files/Targeting%20scams%202022.pdf">Niamh</a> was contacted by someone using the National Australia Bank’s SMS ID. Niamh was told her account was compromised and talked through how to transfer $300,000 to a “secure” account. After she had done it, the scammer told her it was a scam, laughed and said “we are in Brisbane, come find me”. <h2>How bank rules protect scammers</h2> And one more example. Former University of Melbourne academic <a href="https://www.researchgate.net/publication/377766055_Scams_Blaming_the_Victims">Kim Sawyer</a> (that’s his real name, he is prepared to go public) clicked on an ad for “St George Capital” displaying the dragon logo of St. George Bank. He was called back by a man using the name of a real St. George employee, who persuaded him to transfer funds from accounts at the AMP, Citibank and Macquarie to accounts he was told would be in his and his wife’s name at Westpac, ANZ, the Commonwealth and Bendigo Banks. They lost <a href="https://www.afr.com/wealth/personal-finance/i-lost-2-5m-of-my-super-to-scammers-20240423-p5flzp">$2.5 million</a>. Sawyer says none of the banks – those that sent the funds or those that received them – would help him. Some cited “<a href="https://www.choice.com.au/money/financial-planning-and-investing/stock-market-investing/articles/st-george-capital-investment-scam">privacy</a>” reasons. The Consumer Action Law Centre says the banks that transfer the scammed funds routinely tell their customers “it’s nothing to do with us, you transferred the money, we can’t help you”. The banks receiving the funds routinely say “you’re not our customer, we can’t help you”. That’s here. Not in the UK. <h2>UK bank customers get a better deal</h2> In Australia in 2022, only <a href="https://download.asic.gov.au/media/mbhoz0pc/rep761-published-20-april-2023.pdf">13%</a> of attempted scam payments were stopped by banks before they took place. Once scammed, only 2% to 5% of losses (depending on the bank) were reimbursed or compensated. In <a href="https://www.psr.org.uk/information-for-consumers/app-fraud-performance-data/">the UK</a>, the top four banks pay out 49% to 73%. And they are about to pay out much more. From October 2024, reimbursement will be compulsory. Where authorised fast payments are made “because of deception by fraudsters”, the banks will have to reimburse <a href="https://www.thomsonreuters.com/en-us/posts/investigation-fraud-and-risk/app-fraud-uk">the lot</a>. Normally the bills will be split <a href="https://www.psr.org.uk/news-and-updates/latest-news/news/psr-confirms-new-requirements-for-app-fraud-reimbursement/">50:50</a> between the bank transferring the funds and the bank receiving them. Unless there’s a need for further investigations, the payments must be made within five days. The <a href="https://www.psr.org.uk/media/as3a0xan/sr1-consumer-standard-of-caution-guidance-dec-2023.pdf">only exceptions</a> are where the consumer seeking reimbursement has acted fraudulently or with gross negligence. The idea behind the change – pushed through by the Conservative government now led by UK Prime Minister Rishi Sunak – is that if scams are the banks’ problem, if they are costing them millions at a time, they’ll stop them. <a href="https://www.thepost.co.nz/business/350197309/banks-given-fraud-ultimatum">New Zealand</a> is looking at doing the same thing, <a href="https://www.biocatch.com/blog/mas-shared-responsibility-fraud-losses">as is Singapore</a>. But here, the treasury’s discussion paper on its mandatory codes mentions reimbursement <a href="https://treasury.gov.au/sites/default/files/2023-11/c2023-464732-cp.pdf">only once</a>. That’s when it talks about what’s happening in the UK. Neither treasury nor the relevant federal minister is proposing it here. <h2>Australia’s approach is softer</h2> Assistant Treasurer Stephen Jones is in charge of Australia’s rules. Asked why he wasn’t pushing for compulsory reimbursement here, Jones said on Monday <a href="https://ministers.treasury.gov.au/ministers/stephen-jones-2022/transcripts/interview-mark-gibson-abc-perth">prevention was better</a>. <blockquote> I think a simplistic approach of just saying, ‘Oh, well, if any loss, if anyone incurs a loss, then the bank always pay’, won’t work. It’ll just make Australia a honeypot for these international crime gangs, because they’ll say, well, ‘Let’s, you know, focus all of our activity on Australia because it’s a victimless crime if banks always pay’. </blockquote> Telling banks to pay would certainly focus the minds of the banks, in the way they are about to be focused in the UK. The <a href="https://www.ausbanking.org.au/submissions/">Australian Banking Association</a> hasn’t published its submission to the treasury review, but the <a href="https://consumeraction.org.au/scams-mandatory-industry-codes-consultation-paper/">Consumer Action Law Centre</a> has. It says if banks had to reimburse money lost, they’d have more of a reason to keep it safe. In the UK, they are about to find out. If Jones is right, it might be about to become a honeypot for scammers. If he is wrong, his government will leave Australia even further behind when it comes to scams – leaving us thousands more dollars behind per day.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/228867/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/peter-martin-682709">Peter Martin</a>, Visiting Fellow, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292">Crawford School of Public Policy, Australian National University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/australians-lose-5-200-a-minute-to-scammers-theres-a-simple-thing-the-government-could-do-to-reduce-this-why-wont-they-228867">original article</a>. </div>

Money & Banking

Julie Goodwin shares her top tips for perfect potatoes every time

Who doesn't love a good, hearty, delicious serving of fluffy and decadent potatoes? Original MasterChef Australia champion Julie Goodwin has shared her ultimate hacks for cooking the perfect potatoes every time, whether they’re mashed, roasted or baked. According to Julie, there are three key things every home cook needs to keep in mind the next time potatoes are on the menu. Make sure you have the right potatoes Depending on whether you want baked, mashed, roasted, or any other way you want to prepare your potatoes, it all starts in the supermarket. "I find that for things like mashed potatoes and gnocchi and rostis you want a floury potato, so the general rule is dirty potatoes for those things," Julie told <a href="https://kitchen.nine.com.au/latest/julie-goodwin-top-three-tips-to-cook-potatoes-robertson-potato-festival/4d16ba12-bf14-4af2-990e-dcf0e89c30ee">9Honey</a>. "And then for stuff like potato salads, boiled baby potatoes, and potato bake, it's better to have a waxy potato because they hold their substance better. And those are the ones that are sold clean, so things like the Pontiac and Desiree with the pink skin or the washed potatoes with the white skin." "If you want to use them in an Irish stew to break down and thicken the sauce you've got to use a floury potato," she says. "So tend to your dirty ones." She says that if you're buying a clean, waxy potato, you won't have to peel them since the skin is supposed to be edible. However, if you're buying a dirty, floury potato, then you're going to want to peel the dirt off first and then wash off the residue. Get those crispy edges As every home cook knows, the key to the perfect roasted potato is for the inside to be soft and fluffy while the outside stays crispy. It can be a tricky balance to master, but Goodwin says there's a simple way to get it right every time. "I like to par boil them before I roast them. Just so that they go a bit fluffy around the edges," she explains. "What happens is those bits go really crispy and lovely." Let the flavour flow When it comes to seasoning your potatoes, it's hard to know what flavours will suit your dish best. According to Goodwin, more is less when you season potatoes, so it's best to close the spice cabinet. "Salt is absolutely the number one, pepper's beautiful [but] it depends on what the meal is," she says. "So if you're doing a bit of a Portuguese or Spanish inspired meal you might put some paprika on there.” "But I really love rosemary and that's beautiful if you pound that up with your salt and put it on the potatoes that makes it really nice." Image credits: Getty Images / Instagram

Food & Wine

Aussie cruising fanatics share their top cruise tips

An Aussie couple who are dedicated to cruising have shared their top tips to keep in mind before setting sail. Marty and Jessica Ansen are about to set off on their 130th cruise and have made headlines around the world for their devotion to spending most of their lives at sea. Together they have sailed roughly 770,000 nautical miles over more than 2,300 days on board, which equates to more than six years spent at sea. The Brisbane grandparents, both 77, have just headed off on their tenth trip around the globe, which is also their 52nd consecutive cruise adventure. During all their time spent at seas, the Ansens have learned a thing or two about life onboard, and have shared their top ten tips to make time on a cruise ship as smooth sailing as possible. Their number one tip for cruise travellers is to take a backup credit or debit card, as Marty told <a href="https://travel.nine.com.au/cruising/cruise-tips-couple-princess-cruises-marty-and-jessica-ansen-australia/c61281dd-c47a-41bf-b166-608b581eccdf" target="_blank" rel="noopener">9Travel</a>, "Replacing a lost or stolen card while overseas is not for the fainthearted." The Ansens recommend making a clear and legible copy of your passport, as consulates find it a lot easier if you can provide a copy ready to go when you disembark. After all their years at sea, Marty and Jessica are pro-packers, and recommend wearing all your heaviest clothing when you check in to better adhere to a strict weight limit. "Jessica and I have one piece of luggage, usually under 20kg," Marty said. "We also each have one bag of hand luggage. Going on board, regardless of weather, I wear my heaviest clothing." When it comes to packing, they also advise leaving your toiletries at home. "Leave consumables like shampoo, conditioner, toothpaste and any creams and potions at home as Princess (cruise line) provides basic toiletries and anything you do need can be bought at the first port," Marty said. Marty and Jessica also recommend packing all your essentials in your hand luggage, as it can often take a while for your checked bags to arrive in your cruise ship cabin. "Place all jewellery, passports, visas, medication money and credit/debit cards in your hand luggage for easy retrieval," Marty said. Marty said one thing every traveller must check before setting sail is what electrical connection is used onboard. "Check what electrical connection is used onboard and have the right adapter ready to charge your devices,' Marty said. Many ships have American and European plug points, while newer ones may have USB connections too. When it comes to bringing medications, the Ansens said you should always bring extras, as well as the required paperwork. "As an extra precaution carry copies of scripts so that if you do run out or lose your medications it will be easier to prove what you need to overseas pharmacies or doctors," Marty said. Lastly, like any overseas adventure, the Ansens said it is important to always have travel insurance, and to make copies of your policy. Image credits: X (Twitter)

Cruising

Battling to make ends meet? Financial planning expert offers 5 tips on how to build your budget

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Every day seems to bring new headlines about rising costs. <a href="https://www.news24.com/news24/africa/news/nigerias-big-unions-call-indefinite-strike-over-fuel-prices-and-the-cost-of-living-20230926">In Nigeria</a>, unions are threatening to strike amid soaring fuel prices; the country’s inflation rate <a href="https://www.cbn.gov.ng/rates/inflrates.asp">hit 25%</a> in August. The amount it costs to fill a food basket in South Africa <a href="https://pmbejd.org.za/wp-content/uploads/2023/09/PMBEJD_Key-Data_September-2023_27092023.pdf">keeps climbing</a>. Ghanaians <a href="https://www.reuters.com/world/africa/multi-day-protests-over-economic-crisis-grip-ghanas-capital-2023-09-23/">took to the streets</a> of Accra in late September to protest about the cost of living. A <a href="https://www2.deloitte.com/us/en/insights/industry/retail-distribution/consumer-behavior-trends-state-of-the-consumer-tracker.html">recent study by the audit and consulting firm Deloitte</a> found that 75% of South Africans were concerned that the prices for everyday purchases would continue to increase, while 80% of consumers across all income groups expected the prices of groceries, household utilities and fuel to rise. This stark reality means budgeting may be more necessary than ever. If you don’t know how to create a budget, then you shouldn’t feel bad – most adults aren’t taught how to create one. And most people don’t budget, because they see it as restrictive or unsustainable. But it need not be: once you appreciate that a budget can work for you, it can be a financially empowering exercise. It’s a cornerstone of financial planning because it ensures you are living within your means and helps you remain in financial control. As a financial planning academic, I focus in <a href="https://researchprofiles.canberra.edu.au/en/persons/bomikazi-zeka/publications/">my research</a> on improving financial wellbeing and promoting savings behaviours through interventions such as budgeting. Here are five guidelines for creating a budget. <h2>1. Apps vs spreadsheet</h2> A good place to start is to choose the format of how you’re going to budget. There are several <a href="https://www.sanlamreality.co.za/wealth-sense/setting-up-a-family-budget-that-works/">online templates</a> and apps you can use for budgeting. For instance, <a href="https://www.22seven.com/">22Seven</a> has gained popularity in South Africa due to its compatibility with several financial institutions, including the country’s big five banks. Similarly, <a href="https://www.the-star.co.ke/business/kenya/2021-01-25-budgeting-using-mint-app/">Mint</a> is a popular budgeting tool that is used in Kenya and Nigeria. If you prefer to put pen to paper, some online templates come with <a href="https://www.wonga.co.za/blog/free-budget-template">free printable budgets</a>. Creating your own <a href="https://create.microsoft.com/en-us/learn/articles/how-to-make-excel-budget">Excel spreadsheet</a> is an equally good approach. What matters most is using a tool that you can commit to. <h2>2. Itemising your income and expenses</h2> A budget essentially shows how much you’re spending in relation to how much you’re earning. So once you have selected your budgeting tool, you need to fill in your income and itemise how much you’re spending on each expense in a month. A budget can be considered a cashflow statement because it allows you to track money coming in (income) and money going out (expenses). If you are living within your means, your budget should indicate a surplus – more cash inflows than cash outflows. So budgeting provides an accurate account of your short-term financial position. <h2>3. A realistic account of expenses</h2> When you look at your financial statements, fill your expenses into your budget honestly and accurately. Don’t cheat! Since everyone’s financial situation is different, your budget will also be unique. Even though there is no one-size-fits-all approach to budgeting, it should still consider all of your expenses (both regular and intermittent). A general rule of thumb is that if it’s deducted from your account then you should treat it as an expense. This includes payments for housing, medical insurance, fuel, dining out, credit card repayments and even bank fees. <h2>4. Save first, spend later</h2> Now you’ve seen how much you’re spending. Either it’s too much – and you can plan where to cut back – or you have savings at the end of the month. When compiling your budget it’s important to demarcate how much will be in the form of savings. What’s more important is getting into the habit of saving before you spend instead of saving after spending. If you spend first then you’ve deprived yourself of the opportunity to save for a rainy day. Furthermore, <a href="https://eprints.hud.ac.uk/id/eprint/10231/1/Microsoft_Word_-_submitted_version_3rd_June_201.pdf">research</a> has shown that getting into the habit of saving has a transgenerational effect: it can be considered a cultural value that is passed on from one generation to another. So think of saving as paying yourself first. Once you have done so, you won’t feel guilty for treating yourself because you’ve already done the financially responsible thing by putting your savings aside. <h2>5. Considering assets and liabilities</h2> Once you’ve become comfortable with consistently budgeting, you can take it up a notch by including your assets (everything you own with an economic value) and liabilities (everything you owe) to determine your overall financial position. You can get a clearer picture of your overall financial wellbeing by compiling a list of all your assets, for example your savings and <a href="https://www.investopedia.com/terms/h/home_equity.asp">home equity</a>, in relation to liabilities (such as bank loans). Knowing your long-term financial position can indicate how financially resilient or vulnerable you are. In the event of a financial emergency, you will know which resources you can draw upon to meet an unexpected expense. By creating a budget (and sticking to it), you can protect yourself and your household from financial shocks. Consider the alternative. Imagine you haven’t budgeted and set savings aside. If a financial emergency were to arise, your next best bet would be to borrow the funds you need. You’d have to come up with a plan to repay what you’d borrowed while also building your savings. <h2>A healthy habit</h2> Getting into the habit of budgeting isn’t easy, especially if you haven’t done it before or you’re intimidated by the process. But, as the expression goes, “a journey of a thousand miles begins with a single step”. Think of budgeting as taking a small but important step towards reclaiming control over your finances and improving your financial well-being.<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/214861/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, Assistant Professor in Finance and Financial Planning, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/battling-to-make-ends-meet-financial-planning-expert-offers-5-tips-on-how-to-build-your-budget-214861">original article</a>. </div>

Money & Banking

"Not good enough": Karl takes aim at airline cancellation

Karl Stefanovic has ripped into Aussie airline Bonza, who cancelled all their flights at the last minute and left people stranded all across the country. One of the travellers who were left abandoned was Tracy Hilbert, who was due to fly out of Melbourne on Tuesday morning to see her family after her father suddenly died on Monday night. However, instead of being with her mother and brother, she instead spent the day stuck inside the airport after a fellow passenger informed her their flight had been cancelled with no warning. Tracy spoke to Karl Stefanovic and Sarah Abo on Today to share how let down she felt by the airline, as they failed to communicate the cancellation with their customers. “I text my husband. He said, ‘yes, it’s been cancelled’ and sent me all the details,” Ms Hilbert told Today. “Then the crew came in and about a 5.45am they said that it’s been cancelled.” Ms Hilbert fought back tears as she told Karl and Sarah the heartbreaking reason why she was so desperate to make her flight. “I’ve actually had my father pass away last night, so I needed to get up there because my brother text me and said that he’s not in a good way.” Ms Hilbert’s husband quickly booked her a flight with the budget airline last night, not realising that as of this morning, services will be “temporarily suspended”. “I’ve never had this problem with them before,” Ms Hilbert said. “It’s only a two-hour flight but now it’s going to take me all day to get up there.” Thankfully for Ms Hilbert, along with thousands of other stranded passengers, Virgin and Jetstar said those who were affected by the cancellation would be assisted to get to their destination. “We are aware of the temporary suspension of Bonza flights,” Virgin posted on X. “We will immediately support any passengers stranded mid-journey by offering complimentary seats on Virgin Australia-operated flights to the airport nearest to their final planned Bonza destination.” While wondering if she would receive a refund for her cancelled flight, Ms Hilbert said she was frustrated with the lack of communication with Bonza, saying, "You can’t talk to anybody, it’s all through emails.” Ms Hilbert said it’s all been “very hard” as she should have been with her mother, brother and other family now. “Oh, sweetheart. Hey, Tracy, we’ll let you go,” Karl quickly responded as Ms Hilbert continued to break down in tears. “Obviously there’s going to be a lot of people who are inconvenienced. You’re inconvenienced in a whole lot more emotional away. And it’s such a big thing for you to be handling right now. And we’re so sorry for your loss.” Karl hit out at the airline saying the very least they can do is communicate with travellers who have been left in the lurch. “It’s not good enough just to say something is cancelled. They might be going through the most, you know, horrible business morning of their lives, but that shouldn’t stop you from communicating with people." “It’s just a basic human necessity. And especially for people like Tracy.” On Tuesday, Bonza CEO Tim Jordan said services will be “temporarily suspended” while discussions surrounding the “viability of the business” take place. Image credits: Today

Travel Trouble

If you have money anxiety, knowing your financial attachment style can help

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/ylva-baeckstrom-1463175">Ylva Baeckstrom</a>, <a href="https://theconversation.com/institutions/kings-college-london-1196">King's College London</a> The number of people struggling with money in Britain is at a <a href="https://www.theguardian.com/money/2024/mar/18/record-numbers-of-uk-people-in-debt-warns-charity">record high</a>. Financial charities say that people are contacting them for help with debt, paying bills and insolvency. The campaign group Debt Justice found in a <a href="https://debtjustice.org.uk/wp-content/uploads/2024/03/WalnutOmnibus-Debt-Justice-Policy-Development-Weighted.xlsx">survey</a> that 29% of 18- to 24-year-olds and 25% of 25- to 34-year-olds had missed three or more bill payments in the last six months. A majority (65%) of people don’t think they can survive on their savings for three months without <a href="https://www.money.co.uk/savings-accounts/savings-statistics">borrowing money</a>. Statistics from the UK’s financial markets regulator show that more than one-third of UK adults have less than £1,000 in savings. And a survey by Money.co.uk found that 30% of Brits aged 25-64 do not save at all <a href="https://www.pensionsage.com/pa/Nearly-one-third-of-Brits-are-not-saving-for-retirement.php">for retirement</a>. With figures like that, is it any wonder that 75% of people in the UK feel <a href="https://www.mentalhealth.org.uk/about-us/news/financial-strain-driving-uks-anxiety#:%7E:text=Almost%20three%2Dquarters%20of%20the,cited%20job%20insecurity%20or%20unemployment">anxious about money</a>? The current state of the economy is particularly scary for young people. Unless you were born with a trust fund (not most people), you are likely part of the first generation to be financially worse off than <a href="https://edition.cnn.com/2020/01/11/politics/millennials-income-stalled-upward-mobility-us/index.html">your parents</a>. Retirement seems like an impossibility, and you’re unlikely to own your own home. Eighty percent of people in their early 20s worry about <a href="https://www.youngminds.org.uk/parent/parents-a-z-mental-health-guide/money-and-mental-health/#Thelinksbetweenmoneyandmentalhealth">not earning enough</a>. It is important to start planning for your financial future early in your career, but you may find it overwhelming. The good news is, there are ways to overcome this. <h2>Finding your financial attachment style</h2> As a psychotherapist and finance researcher, I work with people to help them to increase their financial confidence and find the motivation to start planning. This often starts with understanding what influences their relationship with money. <a href="https://www.cambridge.org/core/journals/behavioral-and-brain-sciences/article/bowlbyainsworth-attachment-theory/6D35C7A344107195D97FD7ADAE06C807">Attachment theory</a> is a psychological concept introduced in the late 1950s. Your attachment style – which can be, for example, secure, anxious or avoidant – explains how you approach creating emotionally intimate relationships with other people. Some people feel secure building relationships, while others are extremely anxious. Some avoid close relationships altogether. Attachment style can also apply to your finances. If you feel confident and safe when it comes to money, you are secure in your relationship to saving and spending. But if the thought of opening an ISA or filling out a tax return, let alone planning for retirement, fills you with dread and panic, you may be anxiously attached. And if you if you push money worries to the back of your mind, you are likely avoidant. Attachment theorists and psychotherapists like me think that attachment styles are shaped by childhood experiences – for example, how well you were looked after by your parents or carers, and how safe and loved you felt. The way money was handled in your family growing up is likely to have set the blueprint for your <a href="https://www.sciencedaily.com/releases/2020/02/200225114410.htm">financial attachment style</a>. Outside influences like education or work experiences may shape this too. Although financial education is part of the <a href="https://maps.org.uk/en/work-with-us/financial-education-in-schools">school curriculum</a> in the UK, 76% of children leave school without sufficient <a href="https://maps.org.uk/en/media-centre/press-releases/2024/hundreds-of-thousands-leaving-school-without-money-skills#:%7E:text=In%20its%20poll%20of%201%2C012,knowledge%20they%20need%20for%20adulthood">financial knowledge</a> to manage their lives. Similarly, financial services like banks have done a poor job helping people establish secure financial relationships. Complex and <a href="https://www.pwmnet.com/private-view-blog-time-for-the-financial-industry-to-jettison-the-jargon">off-putting language</a> has placed a barrier between those who know about money and those who need to learn. If you feel unable to keep up with financial terms, or that you don’t understand money, this is likely to hurt your confidence in your financial planning abilities and fuel a more avoidant attachment style. Identifying your attachment style can help you nurture a better relationship with money. You will be able to understand and predict how and why you react to finances in certain ways. And, it can provide confidence by reminding you that money struggles are not necessarily your fault. <h2>Getting over financial anxiety</h2> Some of the recent financial trends spreading on social media may give an insight into your attachment style. Are you <a href="https://www.cnbc.com/select/what-is-loud-budgeting-trend-can-it-work/">“loud budgeting”</a> (being vocal about why you aren’t spending money)? This could be a sign of financial confidence and that you have secure financial attachment. Or are you “doom spending” (spending money you don’t have instead of creating a <a href="https://www.theguardian.com/lifeandstyle/2024/jan/31/are-you-loud-budgeting-or-doom-spending-finance-according-to-gen-z">nest egg</a> for the future)? You may be avoidant. Healthy relationships with <a href="https://www.nhs.uk/every-mind-matters/lifes-challenges/maintaining-healthy-relationships-and-mental-wellbeing/#:%7E:text=People%20with%20healthy%2C%20positive%20and,such%20as%20stress%20and%20anxiety">people</a> and <a href="https://www.nhs.uk/every-mind-matters/lifes-challenges/money-worries-mental-health/#:%7E:text=Our%20mental%20health%20might%20be,earning%20enough%20or%20currently%20unemployed">money</a> are both critical for our survival and mental health. As an adult, you have the power to improve these relationships. But because attachment patterns were formed early on, they are difficult to change. Therapy and other support can help you adopt healthier habits, as can increasing your financial knowledge. If you want to change your relationship with money, you should try to be mindful of what may be influencing you. While financial advice on social media may be useful and help young people feel more empowered to <a href="https://www.forbes.com/advisor/investing/financial-advisor/adults-financial-advice-social-media/">talk about money</a>, it can also <a href="https://www.mcleanhospital.org/essential/it-or-not-social-medias-affecting-your-mental-health">increase anxiety further</a> and be <a href="https://theconversation.com/if-you-get-your-financial-advice-on-social-media-watch-out-for-misinformation-222196">full of misinformation</a>. A good place to start for accurate and helpful information is the government’s <a href="https://www.moneyhelper.org.uk/en">Money Helper website</a>.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/225243/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ylva-baeckstrom-1463175">Ylva Baeckstrom</a>, Senior Lecturer in Finance, <a href="https://theconversation.com/institutions/kings-college-london-1196">King's College London</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/if-you-have-money-anxiety-knowing-your-financial-attachment-style-can-help-225243">original article</a>. </div>

Money & Banking

Cancer survivor slapped with $15,000 water bill

An Aussie man has been slapped with a $15,645.86 water bill after the Goulburn Mulwaree Council claimed he had used more than 35,000 litres a day over 104 days. Anthony, who lives on his own in the Southern Tablelands, said that his bill is normally around $290 and that he uses about 130 litres of water a day, the average amount a person would use according to Sydney Water. "A 15-and-a-half thousand dollar water bill, they can go and get themselves nicked," he told A Current Affair. "I'm not paying it, no way in the world." The local mechanic is a cancer survivor, but the disease has made it difficult for him to communicate, so he went to a council meeting with his father, Neil, who talked on his behalf. "I couldn't believe it when he showed me the bill," Neil said. "Currently now, we're at this point in stage where we can't get any reasonable common sense from the council. "I said, 'It's got to be the crook meter', and she said, 'We've had a lot of meters tested and they've all come back positive. "And I said, 'What about this meter?' and she said, 'It'll cost you $50 to have it tested but there'll be nothing wrong with it'." Anthony is accused of using more than 3.6million litres of water, which is equivalent to filling two Olympic sized swimming pools - or having five taps running all-day. He has received multiple emails from the local council asking him to prove his claim. The local mechanic also said that he received an overdue bill notice ordering him to pay it immediately. "I got an email saying I can have a payment plan and all the rest of it... like, get real," he said. "I'm not going to pay it." Anthony uses his own water tank to water his lawn, fill his fishpond and wash his car, and only uses town waters to wash up and shower. He has been asked to prepare a detailed letter of his water usage, which will be presented at a council meeting later this month. Image: Nine

Money & Banking

Kochie reveals the simple way to halve your grocery bill

David Koch has revealed the simple trick to help you save big bucks at the supermarket as the cost of living crisis continues to hit hard. Kochie, who is the Compare the Market's economic director, calculated that Aussies can save up to $100 per trip to the grocery shop by making the switch to home brands. According to research of major Australian supermarkets, the average household can save big bucks by choosing not to buy well-known brands, which can lead to a saving of $5,000 per year. "So, when you're doing your supermarket shop, what's in a brand name? Well, let me tell you - plenty," Kochie said in a video posted to the Compare the Market Instagram account. "You are paying plenty more for that loyalty to a brand that you love." <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-permalink="https://www.instagram.com/reel/C57UwVrvSZ5/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/reel/C57UwVrvSZ5/?utm_source=ig_embed&utm_campaign=loading" target="_blank" rel="noopener">A post shared by Compare the Market AU (@comparethemarket_aus)</a> </div> </blockquote> Compare the Market took to a major supermarket and bought 25 items from big name brands, and another 25 similar items from a challenger supermarket selling cheaper home brands. Based on substituting big-brand products for lesser-known labels, grocery bills would fall from $201.19 a week to $103.51, taking the weekly saving up to $97.68. "Now, multiply that weekly shop over a whole year and that's a saving of over $5,000." "Almost three return economy airfares to London." Everyday Aussies are continuing to struggle with the rising cost of groceries, with the price of bread and cereal increasing by 7.3 per cent in the year to March, an official monthly measure of inflation showed. Image credits: Instagram

Money & Banking

Stamp duty is holding us back from moving homes – we’ve worked out how much

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/nick-garvin-1453835">Nick Garvin</a>, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a> If just one state of Australia, New South Wales, scrapped its stamp duty on real-estate transactions, about 100,000 more Australians would move homes each year, according to our <a href="https://e61.in/wp-content/uploads/2024/02/Stamp-duty-effects-on-purchases-and-moves.pdf">best estimates</a>. Stamp duty is an unquestioned part of buying a home in Australia – you put your details in an online mortgage calculator, and stamp duty is automatically deducted from the amount you have to contribute. It’s easy to overlook how much more affordable a home would be without it. That means it’s also easy to overlook how much more Australians would buy and move if stamp duty wasn’t there. The 2010 Henry Tax Review found stamp duty was <a href="https://treasury.gov.au/sites/default/files/2019-10/afts_final_report_part_2_vol_1_consolidated.pdf">inequitable</a>. It taxes most the people who most need to or want to move. The review reported: "Ideally, there would be no role for any stamp duties, including conveyancing stamp duties, in a modern Australian tax system. Recognising the revenue needs of the States, the removal of stamp duty should be achieved through a switch to more efficient taxes, such as those levied on broad consumption or land bases." But does stamp duty actually stop anyone moving? It’s a claim more often made than assessed, which is what our team at the <a href="https://e61.in/wp-content/uploads/2024/02/Stamp-duty-effects-on-purchases-and-moves.pdf">e61 Institute</a> set out to do. We used real-estate transaction data and a natural experiment. <h2>What happened when Queensland hiked stamp duty</h2> In 2011, Queensland hiked stamp duty for most buyers by removing some concessions for owner-occupiers at short notice. For owner-occupiers it increased stamp duty by about one percentage point, lifting the average rate from 1.26% of the purchase price to 2.27%. What we found gives us the best estimate to date of what stamp duty does to home purchases. A one percentage point increase in stamp duty causes the number of home purchases to decline by 7.2%. The number of moves (changes of address) falls by about as much. The effect appears to be indiscriminate. Purchases of houses fell about as much as purchases of apartments, and purchases in cities fell about as much as purchases in regions. Moves between suburbs and moves interstate dropped by similar rates. With NSW stamp duty currently averaging about <a href="https://conveyancing.com.au/need-to-know/stamp-duty-nsw">3.5%</a> of the purchase price, our estimates suggest there would be about 25% more purchases and moves by home owners if it were scrapped completely. That’s 100,000 moves. Victoria’s higher rate of stamp duty, about <a href="https://www.sro.vic.gov.au/rates-taxes-duties-and-levies/general-land-transfer-duty-property-current-rates">4.2%</a>, means if it was scrapped there would be about 30% more purchases. That’s another 90,000 moves. <h2>Even low headline rates have big effects</h2> The big effect from small-looking headline rates ought not to be surprising. When someone buys a home, they typically front up much less cash than the purchase price. While stamp duty seems low as a percentage of the purchase price, it is high as a percentage of the cash the buyer needs to find. Here’s an example. If stamp duty is 4% of the purchase price, and a purchaser pays $800,000 for a property with a mortgage deposit of $160,000, the $32,000 stamp duty adds 20%, not 4%, to what’s needed. If the deposit takes five years to save, stamp duty makes it six. A similar thing happens when an owner-occupier changes address. If the buyer sells a fully owned home for $700,000 and buys a new home for $800,000, the upgrade ought to cost them $100,000. A 4% stamp duty lifts that to $132,000. Averaged across all Australian cities, stamp duty costs about <a href="https://e61.in/wp-content/uploads/2024/02/Stepped-on-by-Stamp-Duty.pdf">five months</a> of after-tax earnings. In Sydney and Melbourne, it’s six. <h2>Stamp duty has bracket creep</h2> This cost has steadily climbed from around <a href="https://e61.in/wp-content/uploads/2024/02/Stepped-on-by-Stamp-Duty.pdf">six weeks</a> of total earnings in the 1990s. It has happened because home prices have climbed faster than incomes and because stamp duty has brackets, meaning more buyers have been pushed into higher ones. Replacing the stamp duty revenue that states have come to rely on would not be easy, but a switch would almost certainly help the economy function better. The more that people are able to move, the more they will move to jobs to which they are better suited, boosting productivity. The more that people downsize when they want to, the more housing will be made available for others. Our findings suggest the costs are far from trivial, making a switch away from stamp duty worthwhile, even if it is disruptive and takes time.<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/225773/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/nick-garvin-1453835">Nick Garvin</a>, Adjunct Fellow, Department of Economics, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/stamp-duty-is-holding-us-back-from-moving-homes-weve-worked-out-how-much-225773">original article</a>. </div>

Money & Banking

As you travel, pause and take a look at airport chapels

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/wendy-cadge-343734">Wendy Cadge</a>, <a href="https://theconversation.com/institutions/brandeis-university-1308">Brandeis University</a> Flying home? It is very likely there is a chapel or meditation room tucked away somewhere in one of the airports you’ll pass through. <a href="http://www.pewresearch.org/fact-tank/2015/07/06/most-of-the-busiest-u-s-airports-have-dedicated-chapels/">Sixteen of the country’s 20 largest airports</a> have chapels, as do many more around the world. I am a <a href="http://www.wendycadge.com/">sociologist</a> of contemporary American religion and have written <a href="http://www.wendycadge.com/publications/airport-chapels-and-chaplains/">two recent articles</a> about airport chaplains and chapels. My interest in airport chapels started as simple curiosity – why do airports have chapels and who uses them? After visiting a few – including the chapel at Logan, my home airport here in Boston – I have concluded that they reflect broader changing norms around American religion. <h2>How airports came to have chapels</h2> The country’s first airport chapels were intended for staff rather than passengers and were established by Catholic leaders in the 1950s and 1960s to make sure their parishioners could attend mass. The first one in the U.S., Our Lady of the Airways, was built by Boston Archbishop Richard J. Cushing at Logan airport in 1951 and it was explicitly meant for people working at the <a href="https://doi.org/10.1093/socrel/srx025">airport</a>. A neon light pointed to the chapel and souvenir cards handed out at the dedication read, “We fly to thy patronage, O Holy Mother of God; despise not our petitions in our necessities, but deliver us away from all dangers, O glorious and blessed virgin.” Our Lady of the Airways inspired the building of the country’s second airport chapel, Our Lady of the Skies at what was then Idlewild – and is today John F. Kennedy airport in New York City. Protestant chapels came later. The first was in New York – again at JFK. It was designed in the shape of a Latin cross and was joined by a Jewish synagogue in the 1960s. These chapels were located at a distance from the terminals: Passengers wishing to visit them had to go outside. They were <a href="https://books.google.com/books/about/Exploring_Interfaith_Space.html?id=on5YNwAACAA">later razed</a> and rebuilt in different area of JFK. In the 1970s and 1980s, Protestant chapels opened in Atlanta, and in several terminals of the Dallas airport in Texas. <h2>Becoming more inclusive</h2> By the 1990s and 2000s, single faith chapels had become a <a href="http://www.tciarchive.org/4534.article">“dying breed.”</a> Most started to welcome people from all religions. And many were transformed into spaces for reflection, or meditation for weary travelers. The chapel at San Francisco International Airport, for example, known as the <a href="https://www.flysfo.com/content/berman-reflection-room-0">Berman Reflection Room</a> for Jewish philanthropist Henry Berman who was a former president of the San Francisco Airport Commission, looks like a quiet waiting room filled with plants and lines of connected chairs. A small enclosed space without any religious symbols or obvious connections to things religious or spiritual is available for services. The scene at the <a href="http://www.atlchapel.org/">Atlanta</a> airport chapel is similar, with only a few chairs and clear glass entrances, to provide space for quiet reflection. Some airports, such as JFK, continue with their “Our Lady” names, indicating their faith-based origins. Others include religious symbols and objects from a range of religious traditions. The chapel in <a href="https://cltairportchapel.org/">Charlotte</a>, North Carolina, for example, has multiple religious texts alongside prayer rugs, rosary beads and artistically rendered quotes from the world’s major religions. Pamphlets on topics ranging from grief to forgiveness are available for visitors to take with them at the Charlotte airport. <h2>Different airports, different rules</h2> As these examples show, <a href="https://doi.org/10.1093/socrel/srx025">no two airports</a> have negotiated chapel space in the same way. What is permissible in one city is often not in another. Often, it is local, historical and demographic factors, including the religious composition of the region, that influence decisions. These could even be based on who started the chapel, or how much interreligious cooperation there is in a city. Certain airports such as Chicago’s <a href="http://www.airportchapels.org/">O'Hare</a> have strict rules regarding impromptu religious gatherings whether inside the chapel or out. Some use their public address systems to announce religious services. Others prohibit such announcements and do not even allow airport chaplains to put out any signs that could indicate a religious space. If they are included in airport maps, chapels tend to be designated by the symbol of a person bent in prayer. But even then, they can be difficult to spot. About half of the existing chapels are on the pre-security side of the airport and the other half accessible only after passengers pass through security. <a href="https://doi.org/10.1093/socrel/srx025">Only four large American airports</a> – Las Vegas, Los Angeles, Philadelphia and New York’s LaGuardia – do not have chapel spaces, although opening such a space is under consideration. In the interim, at LaGuardia, a Catholic chaplain holds mass in a conference room. <h2>What’s the future?</h2> The reasons for these spaces and their variations are idiosyncratic and intensely local. These chapels reveal a range of approaches to contemporary American religion and spirituality. So on your travels, keep an eye out for these chapels. Note their similarities and differences and recognize how important local histories are to how church-state issues are resolved – at airports and beyond.<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/87578/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/wendy-cadge-343734">Wendy Cadge</a>, Professor of Sociology and Women's, Gender and Sexuality Studies, <a href="https://theconversation.com/institutions/brandeis-university-1308">Brandeis University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/as-you-travel-pause-and-take-a-look-at-airport-chapels-87578">original article</a>. </div>

Travel Tips

Our housing system is broken and the poorest Australians are being hardest hit

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a> Just when we think the price of rentals could not get any worse, this week’s <a href="https://www.anglicare.asn.au/publications/2023-rental-affordability-snapshot/">Rental Affordability Snapshot</a> by Anglicare has revealed low-income Australians are facing a housing crisis like never before. In fact, if you rely on the <a href="https://www.servicesaustralia.gov.au/youth-allowance">Youth Allowance</a>, there is not a single rental property across Australia you can afford this week. <h2>How did rental affordability get this bad?</h2> Several post-COVID factors have been blamed, including our preference for <a href="https://www.rba.gov.au/publications/bulletin/2023/jun/new-insights-into-the-rental-market.html">more space, the return of international migrants</a>, and <a href="https://www.corelogic.com.au/news-research/news/2023/could-the-peak-in-interest-rates-signal-an-end-to-rising-rents">rising interest rates</a>. However, the rental affordability crisis pre-dates COVID. Affordability has been steadily declining for decades, as successive governments have failed to make shelter more affordable for low-to-moderate income Australians. <h2>The market is getting squeezed at both ends</h2> At the lower end of the rental sector, the growth in the supply of social housing persistently lags behind demand, trending at under <a href="https://povertyandinequality.acoss.org.au/data/annual-growth-rates-social-housing-stock-and-population-2011-2020/">one-third</a> the rate of population growth. <hr /> <iframe id="OA0cS" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/OA0cS/" width="100%" height="400px" frameborder="0"></iframe> <hr /> This has forced growing numbers of low-income Australians to seek shelter in the private rental sector, where they face intense competition from higher-income renters. At the upper end, more and more aspiring home buyers are getting <a href="https://www.tandfonline.com/doi/full/10.1080/03085147.2021.2003086">locked out</a> of home ownership. A recent <a href="https://www.ahuri.edu.au/sites/default/files/documents/2024-02/AHURI-Final-Report-416-Affordable-private-rental-supply-and-demand-short-term-disruption.pdf">study</a> found more households with higher incomes are now renting. Households earning <a href="https://www.ahuri.edu.au/sites/default/files/documents/2024-02/AHURI-Final-Report-416-Affordable-private-rental-supply-and-demand-short-term-disruption.pdf">$140,000</a> a year or more (in 2021 dollars) accounted for just 8% of private renters in 1996. By 2021, this tripled to 24%. No doubt, this crowds out lower-income households who are now facing a shortage of affordable homes to rent. <h2>Why current policies are not working</h2> Worsening affordability in the private rental sector highlights a housing system that is broken. Current policies just aren’t working. While current policies focus on supply, more work is needed including fixing <a href="https://theconversation.com/governments-are-pouring-money-into-housing-but-materials-land-and-labour-are-still-in-short-supply-205471">labour shortages</a> and providing greater <a href="https://theconversation.com/people-want-and-need-more-housing-choice-its-about-time-governments-stood-up-to-deliver-it-122390">stock diversity</a>. The planning system plays a critical role and <a href="https://theconversation.com/confusing-and-not-delivering-enough-developers-and-councils-want-new-affordable-housing-rules-139762">zoning rules</a> can be reformed to support the supply of more affordable options. However, the housing affordability challenge is not solely a supply problem. There is also a need to respond to the <a href="https://theconversation.com/home-prices-are-climbing-alright-but-not-for-the-reason-you-might-think-158776">super-charged demand</a> in the property market. An overheated market will undoubtedly place intense pressure on the rental sector because aspiring first home buyers are forced to rent for longer, as house prices soar at a rate unmatched by their wages. Yet, governments continue to resist calls for winding back the <a href="https://www.abc.net.au/news/2024-02-15/ken-henry-australias-tax-system-in-worse-position-after-15-years/103465044">generous tax concessions</a> enjoyed by multi-property owners. The main help available to low-income private renters - the Commonwealth Rent Assistance scheme - is <a href="https://theconversation.com/1-billion-per-year-or-less-could-halve-rental-housing-stress-146397">poorly targeted</a> with nearly one in five low-income renters who are in rental stress deemed ineligible, while another one in four receive it despite not being in rental stress. <h2>Can affordable housing occur naturally?</h2> Some commentators support the theory of <a href="https://www.ahuri.edu.au/sites/default/files/documents/2022-09/Executive-Summary-FR387-Filtering-as-a-source-of-low-income-housing-in-Australia-conceptualisation-and-testing.pdf">filtering</a> - a market-based process by which the supply of new dwellings in more expensive segments creates additional supply of dwellings for low-income households as high-income earners vacate their former dwellings. Proponents of filtering argue building more housing anywhere - even in wealthier ends of the property market - will eventually improve affordability across the board because lower priced housing will trickle down to the poorest households. However, the persistent affordability crisis low-income households face and the rise in homelessness are crucial signs filtering <a href="https://cloud.3dissue.com/122325/122578/143598/WhyNewSupplyisnotExpandingHousingOptionsfortheHomeless/html5/index.html?page=1&noflash">does not work well</a> and <a href="https://www.ahuri.edu.au/sites/default/files/documents/2022-09/AHURI-Final-Report-387-Filtering-as-a-source-of-low-income-housing-in-Australia-conceptualisation-and-testing.pdf">cannot be relied upon</a> to produce lower cost housing. <h2>Location, location, location</h2> Location does matter, if we expect building new housing to work for low-income individuals. What is needed is a steady increase of affordable, quality housing in areas offering low-income renters the same access to jobs and amenities as higher-income households. The <a href="https://treasury.gov.au/housing-policy/accord#:%7E:text=The%20Accord%20includes%20an%20initial,5%20years%20from%20mid%E2%80%912024.">National Housing Accord</a> aims to deliver 1.2 million new dwellings over five years from mid-2024. But it must ensure these are “well-located” for people who need affordable housing, as suggested in the accord. Recent <a href="https://www.tandfonline.com/doi/full/10.1080/02673037.2023.229051">modelling</a> shows unaffordable housing and poor neighbourhoods both negatively affect mental health, reinforcing the need to provide both affordable and well-located housing. <h2>The upcoming budget</h2> While the <a href="https://www.dss.gov.au/sites/default/files/documents/05_2023/payments-cra_budget_fact_sheet_fa_0.pdf">15% increase</a> in the maximum rent assistance rate was welcomed in the last budget, the program is long overdue for a major restructure to target those in rental stress. Also, tax concessions on second properties should be wound back to reduce competition for those struggling to buy their first home. This would eventually help ease affordability pressures on low-income renters as more higher-income renters <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/1467-8454.12335">shift into homeownership</a>. The potential negative impacts on rental supply can be mitigated by careful design of tax and other changes that guard against market destabilisation concerns. Overall, housing affordability solutions have to be multi-faceted. The housing system is badly broken and meaningful repair cannot be achieved unless policymakers are willing to confront both supply and demand challenges.<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/228511/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, ARC Future Fellow & Professor of Economics, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/our-housing-system-is-broken-and-the-poorest-australians-are-being-hardest-hit-228511">original article</a>. </div>

Money & Banking

Why don’t Australians talk about their salaries? Pay transparency and fairness go hand-in-hand

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/carol-t-kulik-150471">Carol T Kulik</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> In Australia, it’s not the done thing to know – let alone ask – what our colleagues are paid. Yet, it’s easy to see how pay transparency can make pay systems fairer and more effective. With more information on how much certain tasks and roles are valued, employees can better understand and interpret pay differences, and advocate for themselves. When pay is weakly aligned with employee contributions, pay transparency can be embarrassing for firms. As the government continues to <a href="https://www.smh.com.au/business/workplace/think-your-male-colleagues-earn-more-than-you-soon-you-ll-know-for-sure-20240104-p5ev7i.html">legislate for pay transparency</a>, wise employers should move to identify – and correct – both real and perceived inequities. <h2>The salary taboo</h2> At one extreme, imagine that you work for California-based tech company Buffer, which develops social media tools. Buffer lists the salary of every company employee, in descending order, on its <a href="https://buffer.com/salaries">website</a>. Salaries are non-negotiable and all Buffer employees receive a standard pay raise each year. Prospective job applicants can use Buffer’s online <a href="https://buffer.com/salary-calculator/senior-data-engineer/intermediate">salary calculator</a> to estimate their pay. Does Buffer’s pay system make you cheer – “yay, no uncomfortable salary negotiations!”, or squirm – “what, my salary is on the website?” Most probably, both. There is a persistent social norm researchers call the <a href="https://www.sciencedirect.com/science/article/pii/S0047272723000725">salary taboo</a>. We want to know, but we don’t like to ask, and we definitely don’t want anyone to know that we’re asking. In Norway, an app that enabled users to <a href="https://www.aeaweb.org/articles?id=10.1257/aer.20160256">access neighbors’ tax-reported income</a> was enormously popular – but only while the user could remain anonymous. <h2>The problem with not knowing</h2> Historically, companies have given employees only minimal information about their pay systems, and some have even prohibited them from sharing their own pay information. Such non-transparency creates two big problems. First, managers place <a href="https://sloanreview.mit.edu/article/achieving-meritocracy-in-the-workplace/">too much trust</a> in organisational systems. The more managers become convinced that pay decisions accurately reflect employee contributions, the less diligent they become about monitoring their own personal biases. Without accountability, it’s easy for an organisation’s pay system to drift into inequity. Second, in the absence of comparative information, employees often suspect they are being underpaid – even if they aren’t. In a <a href="https://www.payscale.com/research-and-insights/fair-pay-impact/">survey</a> of over 380,000 employees by data firm Payscale, 57% of employees paid at the market rate and 42% of people paid above the market rate all believed they were being underpaid. However, unfounded it might be, a nagging sense of inequity can drive people out the door. Payscale estimates that people who think they are underpaid are 50% more likely than other employees to seek a new job in the next six months. <h2>Pay transparency is trending</h2> Broadly speaking, pay transparency policies see companies report their pay levels or ranges, explain their pay-setting processes, or encourage their employees to share pay information. Some companies voluntarily share pay information in response to workforce demand, but there’s also a trend toward mandating pay transparency. In Australia, pay secrecy terms are <a href="https://theconversation.com/pay-secrecy-clauses-are-now-banned-in-australia-heres-how-that-could-benefit-you-195814">banned</a> from employment contracts and the Workplace Gender Equality Agency is <a href="https://www.wgea.gov.au/about/our-legislation/publishing-employer-gender-pay-gaps">publishing employers’ gender pay gaps</a>. The European Union’s <a href="https://ec.europa.eu/commission/presscorner/detail/es/ip_22_7739">Pay Transparency Directive</a> already publishes gender pay gaps and requires employers to provide comparative pay data to employees upon request. Several US states and cities now require employers to <a href="https://www.govdocs.com/pay-transparency-laws/">include salary ranges</a> in their recruitment materials. <h2>Pay transparency usually has positive effects</h2> In equitable pay systems, pay differences align with the differential values employees bring to the business. When pay systems are transparent, it’s easy for employees to recognise when they – and their coworkers – are being appropriately rewarded for their contributions. Evidence is building that such transparency is often a good thing. For one, it can increase employee <a href="https://journals.sagepub.com/doi/10.1177/002224377801500204">performance and job satisfaction</a>. People also generally <a href="https://www.journals.uchicago.edu/doi/10.1086/717891">underestimate their bosses’ salaries</a>, so pay transparency can inspire employees to aspire to higher-paid senior positions. And pay transparency identifies staff with unique expertise, so <a href="https://psycnet.apa.org/record/2016-01521-001">employees seek help</a> from the right coworkers. Pay transparency has also been shown to help narrow gender pay gaps. As pay transparency rules spread across public academic institutions in the US, the pay gap between male and female academics <a href="https://www.nature.com/articles/s41562-022-01288-9">dramatically narrowed</a> (in some states, it was even eliminated). In Denmark, where firms are now required to provide pay statistics that compare men and women, the national gender pay gap has <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.13136">declined by 13%</a> relative to the pre-legislation average. <h2>But it can still be risky</h2> Every pay system has pockets of unfairness, where managers have made <a href="https://psycnet.apa.org/record/2001-01537-002">special arrangements</a> to attract or retain talent. Pay transparency exposes these exceptions, so they can be immediately explained or corrected. But if there are too many such pockets, managers need to brace for a productivity downturn. When pay transparency reveals systematic inequities – for example, disparities based on gender – overall organisational <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4341804">productivity declines</a>. Over the long run, pay transparency leads to <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.13136">flatter and narrower</a> pay distributions, but distributions can also be too flat and too narrow. Managers making pay decisions are aware that their decisions will be directly scrutinised and may <a href="https://journals.aom.org/doi/10.5465/amj.2020.1831">become reluctant</a> to assign high wages even for high performance. If pay <a href="https://www.nature.com/articles/s41562-022-01288-9">loses its motivating potential</a>, employees can become disheartened, especially <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/peps.12054">star performers</a>. <h2>Proceed with caution</h2> As stakeholders on this issue demand more transparency, employers would be wise to stay ahead of legislative moves. Independently making the first move is a show of good faith and can unfold in stages. A good first step is to reveal the pay ranges associated with groups of related roles, giving employers time to conduct internal audits, communicate with employees and systematically correct inequities as they surface. In contrast, having to reveal pay data because of a government mandate can publicly expose patterns of inequity and cause permanent damage to a company’s reputation.<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/224067/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/carol-t-kulik-150471">Carol T Kulik</a>, Research Professor, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/why-dont-australians-talk-about-their-salaries-pay-transparency-and-fairness-go-hand-in-hand-224067">original article</a>. </div>

Money & Banking

Family of eight forced to live in tent amid rental crisis

A family of eight have been forced to live in a tent for over six months as they wait to find suitable accommodation after their last rental lease ended. Cameron and Tameka Fletcher and their six children, aged between one and 10, have been living in a tent and have had to move from campsite to campsite since September. The couple claimed that the government can't support them because they have "too many children", and are waiting for public housing, but they might not meet the criteria to be eligible for it. They were reportedly staying in a makeshift tent city in a suburban park north of Brisbane. "We've always had a house, we've never done this," Cameron Fletcher told Nine News. "Everyone here is going through the same thing. But it's the only way to get help." “We can only do what’s best for our kids, to keep a roof over their heads,” his wife added. One of the couple's daughters is due to start school next year, and they have been struggling to enrol her as the family doesn't have a permanent address. The family said they are also struggling with day-to-day activities like finding breakfast, washing their clothes and getting the kids ready for school, and are using solar camping showers purchased from Kmart to clean themselves. According to Nine News, the family would be happy with a three-bedroom home but were told by state housing officials that they can only be offered a five-bedroom home to avoid overcrowding, but there are currently none available. In a statement issued to Yahoo News, a spokesperson for Department of Housing said it “has been working with the family since September last year, including providing accommodation which they chose to leave”. "As we’ve been assisting them to find longer-term options, they have declined further offers of accommodation," the spokesperson said. "With regards to social housing, there are eligibility factors that need to be met, including income thresholds. However, the department continues to work with the family to find a private rental and give any other support they might need." This comes as new <a href="https://www.news.com.au/finance/real-estate/rent-shock-what-youll-be-paying-in-every-australian-suburb-in-2024/news-story/10b67da9ebe170a2e2d37caa7e66bf40" target="_blank" rel="noopener">PropTrack</a> data, released in March, revealed that rent has increased by 17 per cent over the past 12 months, across all the capital cities in Australia. More than half of Queenslanders who have applied for social housing are reportedly homeless and have had to wait for over two years amid a lack of supply and increased demands. Earlier this year, the Queensland government announced it was aiming to build another 53,500 social homes by 2046, with a $3.1 billion funding boost to deliver one million homes. Images: Nine News

Money & Banking

"There's no way": Man receives $52 billion tax bill

An American man has been left confused after receiving a letter from the government claiming he owed $52 billion in unpaid taxes. Barry Tangert got two letters in the mail from the state of Pennsylvania, opening the first to find a refund check from the federal government for over $900. His joy was short-lived though as he opened the second letter to find the income billing notice from the Pennsylvania Department of Revenue claiming that he owed a jaw-dropping $52,950,744,735.28 ($34,576,826,561.47 AUD). “I knew it was an obvious blunder. I don’t even make over $100,000 a year, so there’s no way I could owe anywhere near that,” Barry Tangert told local outlet News 8. The total sum was so large it didn’t even fit on a single line on the document. Tangert immediately knew it was a mistake, with the astonishing number being more than triple the $11 billion America’s richest man Elon Musk says he owed the government in 2022. How the error made it all the way to his doorstep is still a mystery to Tangert. “I don’t know if it was a computer glitch in the transmission or if it was an input error from my tax preparer,” Tangert said, noting that his tax preparer filed an amendment after noticing an error on his 2022 return. He reached out to the Pennsylvania Department of Revenue’s customer service line, which also provided little help to the baffled man. “The first thing he said was, ‘You had a good year.’ And I said, ‘I wish,’” Tangert said. Fortunately, the state department has since resolved the issue, which it chalked up to wrong numbers simply being put into the system. Image credits: WGAL News 8

Money & Banking

Beyond the spin, beyond the handouts, here’s how to get a handle on what’s really happening on budget night

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/peter-martin-682709">Peter Martin</a>, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292">Crawford School of Public Policy, Australian National University</a> Three weeks from now, some of us will be presented with a <a href="https://budget.gov.au/">mountain</a> of budget papers, and just about all of us will get to hear about them on radio, TV or news websites on budget night. The quickest way to find out what the budget is really doing will be to listen to the treasurer’s speech, or to peruse online the aptly-named “<a href="https://treasury.infoservices.com.au/page/budget2023">glossy</a>” – a document that last year was titled “<a href="https://archive.budget.gov.au/2023-24/overview/download/budget_overview.pdf">Stronger foundations for a better future</a>”. <figure class="align-right zoomable"><a href="https://images.theconversation.com/files/589444/original/file-20240422-23-vkinrm.png?ixlib=rb-4.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/589444/original/file-20240422-23-vkinrm.png?ixlib=rb-4.1.0&q=45&auto=format&w=237&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/589444/original/file-20240422-23-vkinrm.png?ixlib=rb-4.1.0&q=45&auto=format&w=600&h=848&fit=crop&dpr=1 600w, https://images.theconversation.com/files/589444/original/file-20240422-23-vkinrm.png?ixlib=rb-4.1.0&q=30&auto=format&w=600&h=848&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/589444/original/file-20240422-23-vkinrm.png?ixlib=rb-4.1.0&q=15&auto=format&w=600&h=848&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/589444/original/file-20240422-23-vkinrm.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&h=1066&fit=crop&dpr=1 754w, https://images.theconversation.com/files/589444/original/file-20240422-23-vkinrm.png?ixlib=rb-4.1.0&q=30&auto=format&w=754&h=1066&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/589444/original/file-20240422-23-vkinrm.png?ixlib=rb-4.1.0&q=15&auto=format&w=754&h=1066&fit=crop&dpr=3 2262w" alt="Cover of 2023 budget glossy" /></a><figcaption>Glossies are used to make each budget attractive. <a class="source" href="https://archive.budget.gov.au/2023-24/overview/download/budget_overview.pdf">Commonwealth Treasury</a></figcaption></figure> But they will tell you exactly what the government wants you to hear, exactly as it wants you to hear it. If you are looking instead for the truth – what the government is actually trying to achieve and what it is holding itself and its officials to, I would suggest something else, tucked away on about page <a href="https://cdn.theconversation.com/static_files/files/3225/8787.pdf">87</a> of the main budget document. It is required by the <a href="https://www.legislation.gov.au/C2004A05333/latest/text">Charter of Budget Honesty Act</a> introduced in 1998 by Peter Costello, the treasurer under Prime Minister John Howard. On taking office in 1996, Costello set up a <a href="https://webarchive.nla.gov.au/awa/20101119021633/http://www.finance.gov.au/archive/archive-of-publications/ncoa/execsum.htm">National Commission of Audit</a> to examine the finances he had inherited from the Hawke and Keating governments, presumably with an eye to discovering they had been mismanaged. But the members of the commission weren’t much interested in that. Instead, they decided to deal with something more fundamental. <h2>Budget as you wish, but explain your strategy</h2> Governments were perfectly entitled to manage money in whatever way they wanted, and they were perfectly entitled to spend more money than they raised (which they usually do, it’s called a <a href="https://www.investopedia.com/terms/d/deficit.asp">budget deficit</a>). What the commission wanted was for governments to make clear what they were doing, and to spell out the strategy behind it. Only part of it was about being upfront with the public. The commission also wanted governments to be upfront with themselves – to actually develop frameworks for what they were doing, rather than doing whatever they felt like. The commission recommended a <a href="https://webarchive.nla.gov.au/awa/20101119021633/http://www.finance.gov.au/archive/archive-of-publications/ncoa/execsum.htm">Charter of Budget Honesty</a>, which among other things requires officials to prepare independent assessments of the finances before each election, requires budget updates six months after each budget, and requires <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BriefingBook45p/TaxExpenditures">tax expenditures</a> (tax breaks) to be accounted for like other expenditures. And it requires the publication and regular updating of a <a href="https://cdn.theconversation.com/static_files/files/3227/CBH_Fiscal_strategy.pdf">fiscal strategy statement</a>. <h2>Where treasurers hold themselves accountable</h2> The <a href="https://cdn.theconversation.com/static_files/files/3225/8787.pdf">fiscal strategy</a> can be thought of as an exam question set by the student who is being examined – something along the lines of “this is what you say you want your budget to achieve, please set out the means by which you plan to achieve it”. It turns out to have been exceptionally effective in getting governments to organise their thoughts, make budgets at least try to achieve something, and let the rest of us know what they are trying to achieve. Every few years, treasurers change the strategy, as is their right. Treasurer Jim Chalmers says he’ll change it again this budget, to de-emphasise the fight against inflation and to more greatly emphasise the need to <a href="https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/transcripts/press-conference-washington-dc-0">support economic growth</a>. His statement will tell us what’s behind his actions in a way the glossy words in his brochure and speech might not. <h2>The strategy that has signposted 26 years</h2> Previous statements have signposted all the important turns in what the budget is trying to do. The first, in <a href="https://images.theconversation.com/files/589686/original/file-20240423-16-rncqg3.PNG">1998</a>, committed Costello and Howard to achieving a budget surplus on average over the economic cycle and whenever “growth prospects remain sound”. Making that commitment more difficult was another “not to introduce new taxes or raise existing taxes over the term of this parliament”. Two years later, after the government had won an election promising a new goods and services tax, that commitment was <a href="https://images.theconversation.com/files/589692/original/file-20240423-18-q843xn.PNG">changed</a> to “no increase in the overall tax burden from its 1996-97 level”, a condition met by calling the GST a state tax. <h2>Hockey and Morrison wound back spending</h2> The Labor budgets from 2008 <a href="https://images.theconversation.com/files/589702/original/file-20240423-18-mikx6f.PNG">loosened</a> the tax target to the average share of GDP below the reference year, which they changed to the higher-tax year of 2007-08. The first Coalition budget under Treasurer Joe Hockey in 2014 changed the target from tax to spending, pledging to bring down the ratio of <a href="https://images.theconversation.com/files/589705/original/file-20240423-16-9spkdy.PNG">payments to GDP</a>, and pledging a surplus of 1% of GDP by 2023-24. Any new spending would be more than offset by cuts elsewhere, and if the budget did receive a burst of unexpected revenue it would be “banked” rather than spent. In 2018 Treasurer Scott Morrison reintroduced tax as a target, that he spelled out precisely. Tax was not to increase beyond <a href="https://images.theconversation.com/files/589706/original/file-20240423-16-b7gj5d.PNG">23.9%</a> of GDP. <h2>During COVID, Frydenberg spent big</h2> In 2020, in the face of a COVID-induced recession and soaring unemployment, Finance Minister Mathias Cormann and Treasurer Josh Frydenberg pushed the old strategy to one side. They would spend big now to keep the economy afloat so they wouldn’t have to spend more bailing it out later, and they wouldn’t return to their old concern about the deficit until the unemployment rate was “<a href="https://cdn.theconversation.com/static_files/files/3228/fs2020.pdf">comfortably below 6%</a>”. So well did they succeed that in 2021 Frydenberg made the momentous decision to keep going, abandoning the promise to return to worrying about the deficit when unemployment fell below 6%. Instead he promised to keep spending big until unemployment was “<a href="https://images.theconversation.com/files/589709/original/file-20240423-16-9pmpaf.PNG">back to pre-crisis levels or lower</a>”. The decision propelled unemployment down to a 50-year low of <a href="https://www.datawrapper.de/_/wPfXO/">3.5%</a>. Along with high iron ore prices, that one change of strategy has probably helped deliver Chalmers two consecutive budget surpluses – the one he announced last year for 2022-23, and the one he is set to announce this year for 2023-24. More of us have been in jobs <a href="https://www.finance.gov.au/publications/commonwealth-monthly-financial-statements/2024/mfs-january">paying tax</a>, and fewer have been out of jobs <a href="https://theconversation.com/half-a-million-more-australians-on-welfare-not-unless-you-double-count-227342">on benefits</a>. It’s a powerful demonstration of the real-world difference budget decisions can make, and the way in which the <a href="https://cdn.theconversation.com/static_files/files/3225/8787.pdf">fiscal strategy</a> tells the story.<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/228387/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/peter-martin-682709">Peter Martin</a>, Visiting Fellow, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292">Crawford School of Public Policy, Australian National University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/beyond-the-spin-beyond-the-handouts-heres-how-to-get-a-handle-on-whats-really-happening-on-budget-night-228387">original article</a>. </div>

Money & Banking

Does hosting the Olympics, the World Cup or other major sports events really pay off?

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/ivan-savin-678930">Ivan Savin</a>, <a href="https://theconversation.com/institutions/escp-business-school-813">ESCP Business School</a> After a long battle, <a href="https://www.france24.com/en/europe/20240213-paris-booksellers-stay-olympics-macron-bouquiniste-france">Paris’s beloved bouquinistes will be staying put</a> this summer. The decision, announced on 13 February by the French government, came after considerable public backlash to the police prefecture’s original plan to move part of the iconic Seine booksellers elsewhere for the inauguration of the Olympics Games on 26 July. Meanwhile, less than six months away from the event, Parisians continue to grumble over a <a href="https://www.ouest-france.fr/jeux-olympiques/cest-aberrant-ce-maire-vient-dapprendre-que-sa-ville-accueillera-les-jeux-de-paris-ab1fa968-cfd1-11ee-89c0-6cefac77e04a">lack of consultations</a> with locals, warnings of <a href="https://www.rfi.fr/en/france/20231130-paris-vehicle-traffic-to-be-heavily-restricted-during-2024-olympic-games">gridlocked traffic</a>, closed metro stations, extensive video surveillance and other grievances. So for host countries, what was the point of the Olympics, again? In academia, the debate about the potential positive and negative effects of large-scale sporting events is ongoing. Although these events are often associated with substantial economic losses, the long-term benefits are the main argument in favour of hosting them. These include the development of material and soft infrastructure such as hotels, restaurants or parks. Big games can also help put the host region on the map as an attractive place for sports and cultural events, and inspire a better entrepreneurial climate. <h2>The pros and the cons of big sporting events?</h2> The cost of these benefits, as the Parisians have realised, is steep. Host countries appear to suffer from increased tax burdens, low returns on public investments, high construction costs, and onerous running cost of facilities after the event. Communities can also be blighted by noise, pollution, and damage to the environment, while increased criminal activity and potential conflicts between locals and visitors can take a toll on their quality of life. As a result, in the recent past several major cities, including Rome and Hamburg, <a href="https://www.dw.com/en/6-cities-that-rejected-the-olympics/a-46289852">withdrew their bids to host the games</a>. A common feature of the economics of large-scale sporting events is that our expectations of them are more optimistic than what we make of them once they have taken place. Typically, expenditure tends to tip over the original budget, while the revenue-side indicators (such as the number of visitors) are rarely achieved. When analysing the effect of hosting large-scale sporting events on tourist visits, it is important to take into consideration both the positive and negative components of the overall effect. While positive effects may be associated with visitors, negative effects may arise when “regular” tourists refuse to visit the location due to the event. This might be because of overloaded infrastructure, sharp increases in accommodation costs, and inconveniences associated with overcrowding or raucous or/and violent visitors. On top of that, reports of poverty or crime in the global media can actually undermine the location’s attractiveness. <h2>When big sporting events crowd out regular tourists</h2> In an <a href="https://doi.org/10.1177/1527002523120639">article published in the Journal of Sports Economics</a> with Igor Drapkin and Ilya Zverev, I assess the effects of hosting large-scale sporting events, such as Winter and Summer Olympics plus FIFA World Cups, on international tourist visits. We utilise a comprehensive dataset on flow of tourists covering the world’s largest destination and origin countries between 1995 and 2019. As a first step, we built an econometric model that effectively predicts the flow of tourists between any pair of countries in our data. Subsequently we compared the predicted tourist inflow in a hypothetical scenario where no large-scale sporting event would have taken place with the actual figures. If the actual figures exceed the predicted ones, we consider the event to have a net positive impact. Otherwise, we consider that it had a “crowding out” effect on “regular” tourists. While conducting this analysis, we distinguished between short-term (i.e., focusing just on the year of the event) and mid-term (year of the event plus three subsequent years). Our results show that the effects of large-scale sporting events vary a lot across host countries: The World Cup in Japan and South Korea 2002 and South Africa 2010 were associated with a distinct increase in tourist arrivals, whereas all other World Cups were either neutral or negative. Among the Summer Olympics, China in 2008 is the only case with a significant positive effect on tourist inflows. The effects of the other four events (Australia 2000, Greece 2004, Great Britain 2012, and Brazil 2016) were found to be negative in the short- and medium-term. As for the Winter Olympics, the only positive case is Russia in 2014. The remaining five events had a negative impact except the one-year neutral effect for Japan 1998. Following large-scale sporting events, host countries are therefore typically less visited by tourists. Out of the 18 hosting countries studied, 11 saw tourist numbers decline over four years, and three did not experience a significant change. <h2>The case for cautious optimism</h2> Our research indicates that the positive effect of hosting large-scale sporting events on tourist inflows is, at best, moderate. While many tourists are attracted by FIFA World Cups and Olympic games, the crowding-out effect of “regular” tourists is strong and often underestimated. This implies that tourists visiting for an event like the Olympics typically dissuade those who would have come for other reasons. Thus, efforts to attract new visitors should be accompanied by efforts to retain the already existing ones. Large-scale sporting events should be considered as part of a long-term policy for promoting a territory to tourists rather than a standalone solution. Revealingly, our results indicate that it is easier to get a net increase in tourist inflows in countries that are less frequent destinations for tourists – for example, those in Asia or Africa. By contrast, the United States and Europe, both of which are traditionally popular with tourists, have no single case of a net positive effect. Put differently, the large-scale sporting events in Asia and Africa helped promote their host countries as tourist destinations, making the case for the initial investment. In the US and Europe, however, those in the last few decades brought little return, at least in terms of tourist inflow.<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/222118/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ivan-savin-678930">Ivan Savin</a>, Associate professor of quantitative analytics, research fellow at ICTA-UAB, <a href="https://theconversation.com/institutions/escp-business-school-813">ESCP Business School</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/does-hosting-the-olympics-the-world-cup-or-other-major-sports-events-really-pay-off-222118">original article</a>. </div>

Travel Tips

Supermarkets accused of pushing "confusing" promo labels

Coles, Woolworths and Aldi have all been accused of saturating their stores with "confusing" promotional labels that offer little to no discount. Research by consumer advocacy group Choice suggests one-in-four shoppers feel "misled" by discount stickers, finding it difficult to discern the promo price from the original price. More than 1,000 customers across the country took part in the <a title="www.choice.com.au" href="https://www.choice.com.au/unclearsupermarketspecials" target="_blank" rel="noopener">research</a>, which surveyed price tags regularly used by Woolworths, Coles and Aldi that featured phrases such as “down down”, “member price” and “prices dropped”. According to the report, which has been passed on to the Australian Competition and Consumer Commission (ACCC) Supermarkets Inquiry, it was Coles that caused the most confusion, with their "while stocks last" stickers proving to be unclear to the average shopper. Coles told <a href="https://www.news.com.au/lifestyle/real-life/news-life/woolworths-coles-and-aldi-accused-of-confusing-promotional-labels/news-story/c2a350bd62dd0a0ba9c4fad04fa69435" target="_blank" rel="noopener">news.com.au</a> its “while stocks last” tickets offer customers the chance to buy items which are only available at Coles for a limited time, and which are unlikely to be restocked once the products are sold out. But according to Choice, one-third of shoppers surveyed believed products tagged with the bright yellow tag were discounted, while another third were unsure of its meaning. Woolworths’ “member price” was also found to cause “considerable confusion”, according to the consumer watchdog. Meanwhile Aldi’s “super savers” label were also found to leave many Aussies confused, with a third of those surveyed unsure if it was a discount, according to the research. “Consumers look for products that are the best value for money but it is becoming increasingly difficult for people to decipher the promotional tags being used by the supermarkets,” Choice said. “Consumers are drawn to promotional tags that make it look like one product is potentially better value or a good deal, compared to other products." However, the labels are “confusing and potentially misleading” and without contextual information or historical pricing data, “consumers have no way of knowing if they are getting a good deal or not." Coles, Woolworths and Aldi have all responded to the report, with Coles saying in a statement, “Customer feedback is important to us. Our goal is to always be as clear as possible and we are taking steps to update this ticket over the coming months.” Choice has called for “transparent pricing” from supermarkets in the report “to ensure that people are able to effectively compare products, recognise genuine discounts and make informed decisions” when buying their groceries. Choice is also calling for strong enforcement action from the ACCC to “send a clear message to the supermarkets that misleading pricing is unacceptable”. Image credits: Choice

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Kochie's thoughtful act for scam victim

Australian churches collectively raise billions of dollars a year – why aren’t they taxed?

Becoming a landlord while still renting? ‘Rentvesting’ promises a foot on the property ladder, but watch your step

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

Julie Goodwin shares her top tips for perfect potatoes every time

Aussie cruising fanatics share their top cruise tips

Battling to make ends meet? Financial planning expert offers 5 tips on how to build your budget

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