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Old grocery receipt highlights extortionate increase at supermarkets

An old Woolworths receipt from 2021 has revealed the grim reality of increased grocery prices, and how inflation has crippled many in just a few short years. A social media user on X, formerly Twitter, shared her receipt from a Melbourne Woolworths as she highlighted how much more common household items cost today. She said it showed how Aussies were shelling out for costs that appear to have moved well past official inflation levels, which rose to 3.8 per cent by the end of June. “We all knew we’re being ripped off! Australians are now paying up to 200% more for basic grocery items than they were a few years ago!” she wrote. “Oh but inflations (sic) currently back at around 3.8% … yeah my ass it is!!” <blockquote class="twitter-tweet"> Found an old Woolworths receipt circa 2021. We all knew we re being ripped off! Australians are now paying up to 200% more for basic grocery items than they were a few years ago! Oh but inflations currently back at around 3.8% … yeh my ass it is!! Pink Lady Apply $2.90kg… <a href="https://t.co/9OPS6SnOqI">pic.twitter.com/9OPS6SnOqI</a> — Miss Madeleine (@MadsMelbourne) <a href="https://twitter.com/MadsMelbourne/status/1832282784431534448?ref_src=twsrc%5Etfw">September 7, 2024</a></blockquote> Her docket shows how everyday items like coffee grounds, potato chips and stain removers have skyrocketed in price. In the receipt items such as a 250g packet of Bega cheese is priced at $4.50 – it’s now $6 for the same item, discounted from $7.50 according to online pricing. Deli fresh Champagne leg ham sold for $2.50 for 100g according to the receipt, while current prices put that at $4.20. Ozkleen prewash power stain remover is now currently listed as $7 for a 500ml bottle, more than 200 per cent higher than the $2.75 it sold for three years ago. The woman also posted another smaller receipt from the same year, in which she bought grapes and a watermelon. In addition to sharing the image, she wrote, "Another one to add! No wonder Australia is having a cost of living crises! Woolworths Receipt circa 2021. Grapes were $3.50kg, now $14.16 = 304% increase. Watermelon was $1.50 now $6.38kg = 325% increase." Grocery prices have come under the spotlight amid the cost-of-living crisis, with the Australian Consumer and Competition Commission tasked with probing the sector. “We know grocery prices have become a major concern for the millions of Australians experiencing cost of living pressures,” ACCC chair Gina Cass-Gottlieb said in January. “When it comes to fresh produce, we understand that many farmers are concerned about weak correlation between the price they receive for their produce and the price consumers pay at the checkout.” Coles and Woolworths have defended the price rises as being pushed by supply chain struggles, while both companies posted profits of more than $1 billion in the last financial year. A spokesperson for Woolworths also released a statement saying "Ongoing economy-wide inflation means it costs more for many supermarket suppliers to manufacture their products than it did a few years ago. "We remain focussed on delivering lower prices where we can, with our average prices coming down in the last six months, and thousands of specials every week. "The price of fruit and vegetables can vary throughout the year due to weather, seasonality, supply and demand. For example, Haas avocados are currently not in season." Image credits: X / Shutterstock

Money & Banking

Surcharges are added to most purchases, but what are the rules behind these extra fees?

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/steve-worthington-138">Steve Worthington</a>, <a href="https://theconversation.com/institutions/swinburne-university-of-technology-767">Swinburne University of Technology</a> You head to the register at the cafe to pay for your lunch, swipe your card and suddenly realise you’ve been hit with an extra small but unexpected charge. It might be listed on your receipt as a service or merchant fee, but either way it’s because you’ve used a credit or debit card. With the pandemic accelerating the use of cards instead of cash – <a href="https://www.rba.gov.au/publications/bulletin/2023/jun/cash-use-and-attitudes-in-australia.html#:%7E:text=Cash%20payments,-The%20CPS%20suggests&text=In%20value%20terms%2C%20the%20cash,cent%20by%20value%20in%202022.">only 13% of Australians use cash</a>, dropping from 27% in the last five years – these extra charges have become mainstream. However, as was highlighted by National Australia Bank chief executive Andrew Irvine during a <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/FinancialAbuse">parliamentary inquiry</a> into bank charges last week, they are often applied, in varying amounts, by businesses for reasons not always in line with their original purpose. Irvine slammed as <a href="https://www.afr.com/companies/financial-services/credit-card-surcharges-should-be-banned-or-regulated-nab-boss-says-20240830-p5k6jm">“outrageous”</a> a 10% surcharge he was forced to pay when he recently bought a cup of coffee at a Sydney cafe. “I don’t like the lack of transparency and lack of consistency,” he said. But most Australians are making these extra payments every day, without question. So how did this end up happening – and what can you do about it? <h2>Card surcharges in Australia</h2> At the start of this century, payments for goods and services were mainly made by cash, paper cheques, credit and debit cards. The first two of these options would eventually be deposited into a bank account by the merchant who ran the business. The latter two would be processed by the bank or financial institution which would charge the business a merchant service fee. For debit cards this might be a fixed fee. But for credit cards it would be proportionate with the value of the goods or services. The Reserve Bank of Australia became concerned the use of credit cards was greater than that of debit cards and <a href="https://www.rba.gov.au/publications/consultations/201106-review-card-surcharging/background.html">introduced surcharging in January 2003</a>. The intention was to lower the cost to the merchant of accepting debit cards and change customer behaviour. This has been achieved, as both the volume and value of paying by debit cards now exceeds the volume and value of paying by credit cards. However, the reality in 2024 is that card surcharges have become commonplace, and in a wide variety of payment situations. <h2>It’s estimated to cost us billions</h2> It is difficult to calculate the total cost of surcharging to Australian consumers since they became legal more than 20 years ago, because the rates charged vary widely. But at last week’s inquiry, Labor MP Jerome Laxale suggested it added up to <a href="https://www.smh.com.au/money/banking/card-surcharges-are-costing-us-billions-but-can-they-be-avoided-20240830-p5k6o8.html">A$4 billion</a> in the last year. Surcharges can be imposed by small to medium enterprises such as your local cafe, doctor’s surgery, your energy supplier, or when you use a card to pay your council rates. As an example, my rates are payable by card, with a surcharge of 1.10% for Mastercard and Visa credit, and 0.55% for eftpos and Mastercard and Visa debit cards. <h2>When surcharges can be applied</h2> Many merchants charge the same rate for all their card payments and some fail to alert customers to the extra fee before accepting the payment at their terminal, which they are required to do. Indeed, even on a receipt for payment, the surcharge can be described by the merchant as a “handling” or “merchant” fee. The Australian Competition and Consumer Commission <a href="https://www.accc.gov.au/consumers/pricing/card-surcharges">(ACCC)</a> regulates surcharging and demands the merchant prove a surcharge is justified. Furthermore, the ACCC says if there is no way for a consumer to pay without paying a surcharge – that is, they can’t pay by cash or cheque – then the business must include the surcharge in <a href="https://www.accc.gov.au/business/pricing/price-displays#toc-display-of-surcharges">the displayed price</a>. <h2>Penalties for misuse</h2> The ACCC can take merchants to court to enforce these regulations and there have been some examples of this in recent history. In July 2021, <a href="https://www.accc.gov.au/media-release/nine-entertainment-pays-penalties-for-alleged-excessive-payment-surcharges#:%7E:text=The%20ACCC%20alleged%20that%20these,Deputy%20Chair%20Mick%20Keogh%20said.">Nine Entertainment paid penalties totalling $159,840</a>, plus $450,000 redressing customers, for charging subscribers and advertisers excessive surcharges. The ACCC specifies that the surcharge must not be more than it costs the merchant to use that payment type. As guidance to the merchants, it also offers <a href="https://www.accc.gov.au/consumers/pricing/card-surcharges">the average costs for different payment types</a>: eftpos less than 0.5%, Mastercard and Visa Debit 0.5%–1% and Mastercard and Visa credit 1%–1.5%. However, despite the ACCC setting guidelines for the amounts that can be charged, many surcharges are above this guidance and in some cases more than 2.0% for all cards. Some merchants do charge different surcharging rates, depending on the cards they accept, be it eftpos, Mastercard or Visa. In theory, the surcharge rate is meant to be determined by the merchant service fee, which is negotiated between the merchant and their bank. Larger merchants, such as the supermarkets, department stores and energy companies, can negotiate low rates (reportedly as low as one cent a transaction). But smaller merchants with less negotiating clout will have higher service fees. The arrival of new payment players, such as <a href="https://www.forbes.com/advisor/business/software/square-vs-stripe/">Square and Stripe</a>, has offered businesses an alternative banker of card payments, which can then use surcharging as part of their merchant service fees. <h2>Surcharging overseas</h2> The <a href="https://europa.eu/youreurope/business/finance-funding/making-receiving-payments/electronic-cash-payments/index_en.htm">European Union</a> already has a long-standing ban on surcharging, while in the United States, surcharging is illegal in some states. Other countries, including the United Kingdom, have tried surcharging on card payments, only to abandon them as it was rorted by some merchants and became an unnecessary expense for consumers. <a href="https://bluenotes.anz.com/posts/2023/07/anz-news-surcharge-steve-worthington-australia#:%7E:text=In%202018%20the%20UK%20Treasury,their%20hard%2Dearned%20money%E2%80%9D.">A statement</a> released by the UK Treasury when it banned the practice in 2018 described surcharges as <blockquote> Hidden charges for paying with a debit or credit card, which will help millions of UK consumers to avoid rip-off fees when spending their hard earned money. </blockquote> <h2>What can you do about it?</h2> Before surcharging was allowed by the Reserve Bank in January 2003, acceptance by merchants of payments was just another cost of doing business. And it seems many consumers have just accepted surcharges as part of their transactions. There are ways to avoid them, the most obvious being to use cash. Using eftpos involves charges, but they are less than those imposed on credit and debit cards. The Reserve Bank is working on implementing a so-called <a href="https://www.rba.gov.au/payments-and-infrastructure/debit-cards/least-cost-routing/#:%7E:text=What%20is%20least%2Dcost%20routing,'merchant%2Dchoice%20routing'.">“least-cost routing”</a> system that defaults to the lowest cost network when processing payments. Unfortunately, this is yet to be widely adopted by businesses.<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/237964/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/steve-worthington-138">Steve Worthington</a>, Adjunct Professor, <a href="https://theconversation.com/institutions/swinburne-university-of-technology-767">Swinburne University of Technology</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/surcharges-are-added-to-most-purchases-but-what-are-the-rules-behind-these-extra-fees-237964">original article</a>. </div>

Money & Banking

Rare coin hidden for decades to fetch eye-watering sum

Three sisters from the US who inherited a dime coin kept it in a bank vault for more than 40 years, and while they know it had some value, they didn't know just how much until a few years ago. The rare coin, struck by the US Mint in San Francisco in 1975, could be worth more than $US500,000 ($748,000), according to Ian Russell, president of GreatCollections, the auction house selling the coin. What makes the coin depicting President Franklin D. Roosevelt so valuable is that it is just one of two coins missing the "S" mint mark for San Francisco. The other dime sold for $US682,000 (over $1 million) at a 2019 auction and then again months later to a private collector. While avid coin collectors have known about the existence of these two extraordinarily rare coins, their whereabouts had remained a mystery since the late 1970s. “They were hidden for decades,” Russell said. “Most major collectors and dealers have never seen one.” The three sisters from Ohio, who want to remain anonymous, inherited one of the two dimes after the recent death of their of their brother, Russell said. They told Russell that their brother and mother bought the first error coin discovered in 1978 for $27,225, which would amount to roughly $135,000 today. Their parents, who ran a dairy farm, saw the coin as a financial safety net, and it was only until last year that one of the sisters saw the coin first-hand. Russell also said that their brother had reached out to him about seven years ago and told him about the coin, but he too kept it a secret. When Russell told one of the sisters about the potential value of the coin, she told him: “is that really possible?”. The coin, known as the “1975 ‘no S’ proof dime,” will be displayed at a coin show beginning on Wednesday in Tampa, Florida, and before <a href="https://www.greatcollections.com/Coin/1655587" target="_blank" rel="noopener">the auction</a> closes late next month, Russell said. The current highest bidder has offered $US250,000 ($374,000). Images: Great Collections/ Professional Coin Grading Services

Money & Banking

Shoppers outraged over Coles bin full of discarded groceries

A shocking photo of a bin filled with discarded groceries at the back of a Coles supermarket has gone viral, outraging many shoppers. The photo, taken behind the Drouin store in West Gippsland, Victoria, shows a skip bin measuring over a metre high overflowing with tens of thousands of dollars worth of food, including meat, ice cream, pasta, pizzas, dips, cheeses, juice and smoked salmon. According to 7News, the products were thrown out after the region was hit with a storm that caused a power outage, and as the store did not have a backup generator, the refrigerated food was spoiled and needed to be thrown out. Coles has explained that items had to be discarded to ensure customer safety, but many shoppers were left shocked and infuriated about the waste, arguing the store should have been ready for the storms with backup generators. “For the 2023/24 financial year, Coles Australia reported a net profit of $1.1 billion and can’t afford back up generators, go figure,” one wrote. Others insisted some of the food could have been saved or donated, as one person said, “Butter that stays on the bench for two weeks (is) fine!” while another insisted, “at least donate it”. A supermarket worker commiserated with the upset shoppers, as they wrote online, “As someone who works for one of the supermarket chains, I have had to partake in this due to a prolonged power outage earlier this year.” “I feel for these staff, there’s nothing worse than having to throw out so much refrigerated stock. Coming from a family who didn’t have much, I get the pain people feel from this incident.” However, one social media user noted that regarding donations, “legally they cannot, if they give someone food poisoning and kill them they are liable”. A Coles spokesperson told <a href="https://www.news.com.au/lifestyle/food/photograph-of-coles-bin-full-of-discarded-items-stuns-shoppers/news-story/871cedeb7daf66422534e4aee55f1ee4" target="_blank" rel="noopener">news.com.au</a> that food safety is a top priority, saying in a statement, “Due to the extreme weather that hit much of Victoria early last week, there were widespread power outages, including in the Drouin and surrounding areas.” “Food safety is paramount at Coles and unfortunately as a result of products being un-refrigerated for an extended period of time, for safety and quality reasons, we needed to dispose of a number of products to ensure customer safety. “Where possible, Coles always donates product that is fit for use and safe for consumption to food rescue organisations.” Image credits: 7News

Money & Banking

What’s a recession – and how can we tell if we’re in one?

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/leonora-risse-405312">Leonora Risse</a>, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Today’s <a href="https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release">economic data</a> shows that, outside of the pandemic, the Australian economy has slowed down to its lowest annual rate of growth since the early-1990s recession. That’s prompting the dreaded question: are we headed for another one? Any mention of the “R” word can trigger anxiety. Recessions bring job losses and financial strain, and put serious pressure on people’s mental health. These impacts can be especially severe for people who are already experiencing disadvantage and vulnerabilities. But what exactly does it mean to be in a recession? What are the different ways we define them? And are these current approaches the best way to measure people’s economic pain? <h2>What’s a recession?</h2> A bit like the waves of the ocean, our economy is characterised by ebbs and flows in overall activity. Spending and business growth can swell during times of confidence, but slow down when optimism deflates or the economy is hit by an unexpected shock such as a pandemic or climate disaster. This pattern is what economists describe as “the business cycle”. Most of the time, our economy is constantly growing, even if the pace varies. Conventionally, we measure this pace by tracking changes in the level of <a href="https://www.rba.gov.au/education/resources/explainers/economic-growth.html">gross domestic product</a> (GDP) – the overall volume of items and services being produced, bought and sold in the economy. The <a href="https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/jun-2024">latest economic growth rates</a> of 0.2% for the June quarter, and 1% over the past year, tell us that the Australian economy is still growing, even if at a slower pace than previous years. Occasionally, the economy slows down to such a grind that economic activity, from one quarter to the next, shrinks. When this happens, the GDP measurements come out negative. When we have two negative measurements of GDP in a row, this is defined as a <a href="https://www.rba.gov.au/education/resources/explainers/recession.html">technical recession</a>. This is what happened to most countries around the globe during the COVID-19 pandemic. Prior to the pandemic, Australia hadn’t experienced a technical recession since 1991. The latest figures tell us Australia is staying afloat for now. But that doesn’t mean it doesn’t feel like a recession to many people. Some other metrics show why. <h2>Other measures of recession</h2> Growth in economic activity is fuelled, in part, by a growing population. Dividing total economic output by the population size, GDP per capita can offer a more accurate picture of people’s economic reality. This population-adjusted measure of economic growth has long fallen into negative territory. Today’s figures tell us that Australia’s GDP per person has been shrinking for 18 months. Our annual per capita growth rate is now -1.5%. <figure class="align-right zoomable"></figure> In the United States, recessions are measured differently again. Recessions are officially declared by the National Bureau of Economic Research (<a href="https://www.nber.org/research/business-cycle-dating">NBER</a>). Unlike technical recessions, these aren’t based on a simple rule. NBER considers a range of measures beyond GDP – including personal income, employment, personal consumption, wholesale and retail sales, and industrial production across multiple sectors – when deciding whether to declare a US recession. <h2>Is Australia heading for a recession?</h2> This is a challenging question to answer because the GDP figures economists conventionally use to diagnose the situation only come to light after a recession hits. Today’s economic figures from the ABS are for the June 2024 quarter – now more than two months old. Measurements of the current economic climate won’t come through in official statistics for some time. If it occurs, by the time a recession is officially diagnosed, we’re usually well and truly in it. A similar limitation applies to the retrospective approach of the <a href="https://www.nber.org/research/business-cycle-dating">NBER</a>, which “waits until it is confident that a recession has occurred”. It’s like a weather forecaster declaring a cyclone has hit only after the wind gusts have blown your roof away. But we can use other metrics to alert ourselves to recession risks before the eye of the storm hits. <h2>Using jobs numbers as a recession alert</h2> One approach is the <a href="https://fred.stlouisfed.org/series/SAHMCURRENT">Sahm Rule</a>, named after its creator, US economist Claudia Sahm. By analysing patterns in the monthly unemployment data that preceded past recessions, Sahm devised a <a href="https://stayathomemacro.substack.com/p/the-sahm-rule-step-by-step">formula</a> to detect when increases in the current unemployment rate were rapid enough to pose a recession risk. The advantage of this approach is that unemployment statistics come out more quickly and frequently than GDP numbers. Many would also argue that monitoring unemployment, rather than GDP, is a more meaningful metric to reflect people’s everyday experiences of the economy and wellbeing. The Sahm approach tracks how quickly the national unemployment rate is currently rising compared to the past year. It’s calculated by comparing the current three-month moving average of the national unemployment rate to this figure’s lowest value in the previous 12 months. This “moving average” approach smooths out the bumpiness of monthly figures. A jump of 0.5% or more signals the economy’s current pattern is on the cusp of recession. While the Sahm formula was developed for the US economy, it does a fairly good job of waving a red flag where recessions previously occurred in the Australian economy, too. Australia’s latest unemployment rate – inching up to 4.2% in July 2024 – pushed the Sahm value up to 0.5%. <iframe id="3d239" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/3d239/5/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> This indicator doesn’t necessarily mean that a recession will occur. But it suggests policymakers should be on high alert. The Sahm indicator also validates the experiences of job seekers who – despite official definitions that the economy is not in recession – are personally feeling the pressures of a slowing economy and shrinking job opportunities. As our approaches to measuring and managing the ups and downs of the economy continue to evolve, these people-centred metrics are an increasingly important part of our toolkit.<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/238199/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/leonora-risse-405312">Leonora Risse</a>, Associate Professor in Economics, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/whats-a-recession-and-how-can-we-tell-if-were-in-one-238199">original article</a>. </div>

Money & Banking

Aussies top global list for biggest gambling losses

A new report has revealed that Australians are the biggest gambling losers in the world, with the average Australian adult gambling away $1635 per year according to the Grattan Institute think tank. That is more than most households pay for power and exceeds the average spend in similar countries like the US and New Zealand. Collectively, Australians lost $24 billion to gambling in 2020-21, with half of that amount lost through poker machines. The rest was lost on sports or race betting, in casinos, and on lotteries and Keno. The report also claims that there are more pokies than post boxes and public toilets across Australia, bringing light to the "lax approach" that has let the industry "run wild". "Gambling products are designed to be addictive, and the consequences can be catastrophic: job loss, bankruptcy, relationship breakdown, family violence, even suicide," the report's authors wrote. People in the Northern Territory and NSW lost the most amount of money, with the two states having the highest concentration of polies in their jurisdiction. The report recommended the federal government ban all gambling advertisements and urged them to cut the number of pokies in each state over time. They also suggested a mandatory pre-commitment system for online gambling and pokies, which would put a limit on daily losses. There are many different ways to get help and information about gambling. Call the National Gambling Helpline on 1800 858 858; use <a href="https://www.gamblinghelponline.org.au/tools-resources/chat-counselling" target="_blank" rel="noopener">online counselling</a>. Images: SNEHIT PHOTO / Shutterstock.com

Money & Banking

How much money is actually thrown into the Trevi Fountain

Around 21 million tourists visit Rome each year, with most of them making a pit stop at the Trevi fountain, one of the most popular and Instagrammable tourist spots in the world. Many take part in the special tradition that has been going on for hundreds of years, that is tossing a coin into the fountain in hopes that their wishes come true. The money is collected twice a week, with signs around the fountain explaining that the change will go to the local not-for-profit organisation Caritas, which is run by the Catholic Church. The money is then used to fund a food bank, soup kitchen and welfare projects in Rome. “The collection and cleaning operations are carried out as quickly as possible to try to reduce the downtime of the fountain,” Francesco Prisco, a manager at regional utility ACEA said. The coins are collected by ACEA workers using long brooms and suction hoses, and according to a 2022 report by Reuters, the church collected 1.4 million euros – about $A2.2 million — from the fountain, with more believed to have been gathered in 2023. The iconic tourist attraction was completed in 1762 and covers one side of Palazzo Poli in central Rome with its statues of Tritons guiding the shell chariot of the god Oceanus. It has since attracted millions of visitors. Image: Shutterstock

International Travel

Readers response: What have you had to cut out of your life to cope with cost of living pressures?

As the cost of living continues to rise, many people have had to cut things out of their day to day spending to cope with the financial struggles. We asked our readers what they have had to cut out of their budgets to cope with cost of living pressures, and the response was overwhelming. Here's what they said. Wendy Oliver - We don’t eat out often at all… I spend too much in the supermarket. Christine Brooks - I've cut out steak, good nutritional foods, TV streaming, entertainment, haircuts, new clothes, pets, pool cleaning, and more. Kerrie Dare - I limit steak meals. I've stopped my haircuts to every 4 months. Internet is getting chopped. I can only afford exercise classes twice a week. I don't eat as much fruit as I used too. I only buy groceries when on special. One bottle of wine per fortnight. One slice of sourdough in the morning, which means the loaf lasts a week. I turn on my washing machine around every 10 days & I have quick showers. No eating out or take away. Maybe one cup of coffee per week with a friend. Movies once every 6 weeks as a social group. No concerts or clubs. I drive only locally, so a tank of petrol lasts 1 month. No weekends away. Jane Dawes - No coffees, beauty treatments, hairdresser, eating out, takeouts etc. The trouble is not affording to spend on certain items has a flow on effect for businesses. Everyone is suffering. Lois E. Fisk - Going out to eat or see movies in the cinema or live plays or new clothes. I shop at the least expensive grocery stores as much as possible, and good cuts of meat rarely happen. Janice Stenning - Don't go to the hairdressers as often and don't buy as many clothes. Debra Dugar - Thinking about dropping my extras cover of my insurance. By the time I pay for it, I can't afford the gap you have to pay. Robyn Lee - Living in my own house. I now live with my family. Rhondda Hughes - Well, petrol is expensive so I have to really think if I can afford to visit anyone. I can’t eat meat much and even vegetables can be expensive. We have three chickens so they give us eggs but good quality eggs and healthy chickens require money too. Fortunately I live in Perth so, in comparison to other states, it isn’t as cold however the cost of heating is a significant consideration and therefore I just tend to go to bed. <div style="font-family: inherit;">Felicity Jill Murphy - Stopped going out to shopping centres. That's where I spend money unnecessarily.</div> <div style="font-family: inherit;">Image credits: Shutterstock </div> <div style="font-family: inherit;"> </div> <div class="x6s0dn4 x3nfvp2" style="font-family: inherit; align-items: center; display: inline-flex; min-width: 584px;"> <ul class="html-ul xe8uvvx xdj266r x4uap5 x18d9i69 xkhd6sd x1n0m28w x78zum5 x1wfe3co xat24cr xsgj6o6 x1o1nzlu xyqdw3p" style="list-style: none; margin: 0px -8px 0px 4px; padding: 3px 0px 0px; display: flex; min-height: 15px; line-height: 12px; caret-color: #1c1e21; color: #1c1e21; font-family: system-ui, -apple-system, BlinkMacSystemFont, '.SFNSText-Regular', sans-serif; font-size: 12.000001px;" aria-hidden="false"> <li class="html-li xdj266r xat24cr xexx8yu x4uap5 x18d9i69 xkhd6sd x1rg5ohu x1emribx x1i64zmx" style="display: inline-block; padding: 0px; margin: 0px 8px;"> </li> </ul> </div>

Money & Banking

Cash boost for millions of Aussies as indexation kicks in

Millions of Australians are set to get a cash boost within weeks as the Services Australia payments are indexed on top of additional increases to Rent Assistance payments, with the changes coming into effect on September 20 The indexation will be applied to a range of pensions and payments including the Age Pension, Disability Support Pension and Carer Payments, Commonwealth Rent Assistance, JobSeeker, and Parenting Payments. The indexation increases of up to $41.50 a fortnight will vary based on the payments. Centrelink JobSeeker recipients will receive an extra $71.20 per fortnight. “Single JobSeeker Payment recipients with an assessed partial capacity to work of 0 to 14 hours per week will move to the higher rate of JobSeeker, receiving $849.50 a fortnight,” the Department of Social Services said. The maximum rates of Commonwealth Rent Assistance will be increased by 10 per cent. For families with one or two children, he Rent Assistance fortnightly payment will increase by $27.02. Single age pensioners will see an increase of $28.10 to their fortnightly payments, and recipients in a couple will receive a combined $42.40 increase to their payments. The same increase will apply to the Disability Support Pension and Carer Payment. Single recipients receiving the fortnightly Parenting Payment will receive a $19.80 increase, while single recipients without children will get a $15.30 boost. Image: Shutterstock

Money & Banking

Jessica Alba surprises dad by buying his childhood home

Jessica Alba has spent the past three years working towards buying her parents a house, but not just any house, she bought her father's childhood home. She took to Instagram to make the announcement, with a teaser video of her special home-renovation project. "Almost three years ago, I started the project of my dreams… I surprised my parents by buying them a house!!" she began. "Now, it wasn't just any house – it was extra sentimental as it was my grandparent's house that my father grew up in," she continued. "After my grandfather passed away, my parents were planning on selling the house in order to pay for my grandmother's medical bills. Well… I pretended like I was going to help them flip it before selling when in reality, I had planned to buy it for them all along." <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-captioned="" data-instgrm-permalink="https://www.instagram.com/reel/C_TWEyhPyy_/?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/C_TWEyhPyy_/?utm_source=ig_embed&utm_campaign=loading" target="_blank" rel="noopener">A post shared by Jessica Alba (@jessicaalba)</a> </div> </blockquote> She published the first part of her renovation series on YouTube and in it explained the sentimental value of the house and how it was a symbol for her father, who was an immigrant from Mexico, that "he had made it". Her family initially planned to sell it to ease some of their financial burden, as her grandmother required "24/7 care" but Alba wanted to keep the house in the family and so her plan began. "Instead of it giving to a stranger, I wanted to keep this home in our family," she said in the YouTube series. The moment Alba surprised her parents was also captured in the video, with her father brought to tears as he was overcome with emotion. "That's so sweet Jessica. That's a big surprise," he said while embracing his daughter. "I'm very proud of you." Images: Instagram

Money & Banking

Doting dad sells everything he owns to develop cure for son's "incurable" condition

A dedicated father has drained his life savings to help find a cure for his son's "incurable" disorder. Terry Pirovolakis, a 44-year-old IT director, was hellbent on finding a cure for his six-year-old son Michael after he was diagnosed with Spastic paraplegia 50 (SPG50): a degenerative neurological condition that affects less than 100 people worldwide. SPG50 affects children's development, leading to cognitive impairment, muscle weakness, and paralysis over the course several years, often ending in death usually before a patient reaches the age of 30. "They said he'd never walk or talk, and would need support for the rest of his life," he recalled of the 2018 diagnosis. "They told us to just go home and love him - and said he would be paralysed from the waist down by age 10, and quadriplegic by age 20," he continued. Determined to save his son, Terry drained his life savings to start researching potential cures rooted in gene therapy, after reading countless journals on the subject and meeting with experts around the world. Terry said, "We then liquidated our life savings, refinanced our home and paid a team at the University of Texas Southwestern Medical Center to create a proof of concept to start Michael's gene therapy." The father soon signed a contract to start a gene therapy program, consisting of injecting cerebral spinal fluid into the patient's back, and after years of lab work, the treatment started to take, and on December 30th 2021, the government <a id="mol-70453400-6948-11ef-9b54-1d20db350cbd" href="https://www.dailymail.co.uk/news/canada/index.html" target="_self"></a>moved it forward. "On March 24, 2022, my son was the first person to ever get treated with gene therapy at SickKids in Toronto," Pirovolakis, a father of three, told Fox News in detailing his medical odyssey. Michael was the first to receive his father's one-time treatment, after Pirovolakis quit his job and started a nonprofit in California to devote himself to the cause. The company, named Elpida Therapeutics, after the Greek word for 'hope', now has five employees and 20 consultants, with Michael now on the mend. Since being treated, the youngster's condition seems to have stabilised, and he is now able to use a device to communicate with his family and caregivers. Another three children who were able to receive the remaining doses from Pirovolakis' first batch, as the drug still costs about $1million to make for each child, are also seeing positive results. "When I heard that no one was going to do anything about it, I had to - I couldn't let them die," Pirovolakis said. "We decided that we had to help other kids." Despite it being approved, big pharmaceutical companies have been slow to manufacture the drug, with several firms rejecting the prospect when proposed, Pirovolakis said "No investor is going to give you money to treat a disease that is not going to make money," he said. "That's the dilemma we're in." Pirovolakis said that when his son was diagnosed, he was told the boy would be paralysed from the waist down by the age of ten and quadriplegic by the age of 20, forcing the father to do everything he can. "We were told he would never speak or walk, and that he will have severe developmental delays. I just couldn't accept that fate for my child," he said. "The technology to cure our children is already here. I hope that someone with immense wealth - and more importantly, the vision and influence - will step in." Image credits: Facebook

Money & Banking

Oasis issue urgent warning after scalpers list tickets for $42,000

Oasis have been forced to issue a warning to music fans who are searching for tickets to their highly-anticipated reunion tour, after resale tickets have been listed for thousands of dollars. Tickets to the UK and Irelands reunion show went on sale on Saturday, with tickets to the 17 shows selling out in a matter of hours. Tickets were originally posted on Ticketmaster with prices ranging from $190 AUD to $500 AUD, before prices were bumped up by the ticket merchant as being "in demand", with the cheapest tickets then priced at $475 AUD. Since all shows were officially sold out, some tickets have since been posted on resale sites such as StubHub and Viagogo, with prices ranging from $1,100 AUD to a whopping $42,000 AUD. After all the tickets were sold, ticket scalpers shared their tickets on the resale websites to turn a profit, with music fans sharing photos of the outrageous prices on social media. <blockquote class="twitter-tweet"> The highest price I've seen so far is £22,045. It's ridiculous. I know no one is likely to pay that, but why are these companies allowing it? <a href="https://t.co/uMSt0TS6K9">pic.twitter.com/uMSt0TS6K9</a> — Jordan (@grahamjordan_) <a href="https://twitter.com/grahamjordan_/status/1829647325901570230?ref_src=twsrc%5Etfw">August 30, 2024</a></blockquote> "And it’s begun," one fan wrote alongside a screenshot of the resale websites. "Viagogo and StubHub all trying to rip off Oasis fans, with the highest priced ticket being on StubHub for £6,347 ($12,323 AUD). Hang your heads in shame." The music fan then added another photo of the $42,000 AUD ticket for sale, writing, "The highest price I've seen so far is £22,045. It's ridiculous. I know no one is likely to pay that, but why are these companies allowing it?" Oasis themselves then stepped in to warn fans about paying the extortionate fees for tickets, saying according to the terms and conditions, tickets could only be resold at face value via Ticketmaster and Twickets. "Tickets sold in breach of terms and conditions will be cancelled by the promoters," they wrote in a post to X. Oasis promoters had previously issued a similar warning, telling fans tickets sold through "unauthorised resale platforms" would be in breach of terms and conditions and "may be cancelled". Image credits: Instagram/Vuk Valcic/ZUMA Press Wire/Shutterstock Editorial

Money & Banking

Readers response: What would you do if you won $1,000,000 in the lottery tomorrow?

Many people, especially those who indulge in weekly lottery tickets, like to fantasise about what they would do if they came into a huge sum of money. For some people, their first purchase would be a house or a once in a lifetime holiday, while others would give the money to family or charity. We asked our reader what they would do if they won $1 million in the lottery tomorrow, and the response was overwhelming. Here's what they said. Anne Hare - I'd find a really good accountant and put him on retainer. I'd tell no one until I'd got my finances in order. Then I'd go nuts! Irene Winters - Give most of it to our children and grandchildren, and keep a bit to pay for our old age. Erica Whitehead - Help my family and do a kitchen and bathroom renovation. Julie Armstrong - 1 million would be perfect for us to buy a house and live out the rest of ours days comfortably and not have to stress over the rent increases. Plus, we could pay off our daughter's mortgage. Darlene Challen - Fix this house up properly, sell it and find my dream little house for myself and my dog, might spend Christmas in NY and/or go on a tropical cruise, then put the rest away for my 9 grandies. Karen Neilson - Give a big chunk to my children and grandchildren, then give some to each of my siblings and Brother in Law. Keep some for myself, just enough to live comfortably for the few years I’m still on this earth! Give some to Cancer Research, The Heart Foundation and the Rescue Chopper. Give some to a couple of friend who do it tough. Marlene Hassett - Buy a new car and a couple of things around my house and the rest to my kids and grandkids. Alex Elson - I would finally, finally take our van out of the shed and go away for a while! Jeannine Litmanowicz - I would open a scholar fund for my grandchildren so they have money for higher education when they grow up. And also, since they are still young, I would treat them to a week travelling around with them and my daughters and husbands to the Balkans. Christine Whyte - Keep myself very comfortable till it was time to distribute to 10 grandkids. Image credits: Shutterstock

Money & Banking

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

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

Money & Banking

Why is it so hard to cancel subscriptions or end ‘free’ trials? Report shows how companies trap you into paying

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/katharine-kemp-402096">Katharine Kemp</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> Many businesses are trapping Australian consumers in paid subscriptions by making them hard to cancel, hiding important details and offering “free” trials that auto-renew with hefty charges. We need law reform to tackle this continuing problem. <a href="https://cprc.org.au/report/let-me-out">A new report</a> shows 75% of Australian consumers have had negative experiences when trying to cancel a subscription, according to the Consumer Policy Research Centre (CPRC). It shows businesses use “<a href="https://www.wired.com/story/how-to-spot-avoid-dark-patterns/">dark patterns</a>”, which are designs that hinder consumers who try to act in their own best interests. Subscription traps are often called “<a href="https://www.ftc.gov/business-guidance/blog/2022/11/checking-out-ftcs-100-million-settlement-vonage">Hotel California</a>” techniques, referring to The Eagles’ famous lyric: “you can check out any time you want, but you can never leave”. In some of these cases, consumers may have remedies under our existing consumer law, including for misleading conduct. But we need law reform to capture other <a href="https://treasury.gov.au/consultation/c2023-430458">unfair practices</a>. In the meantime, the CPRC’s research also gives examples of businesses with fair, consumer-friendly subscription practices. These also benefit the business. <h2>Examples of unfair subscription traps</h2> <a href="https://www.forbes.com/councils/forbesbusinessdevelopmentcouncil/2022/09/12/the-evolution-of-the-subscription-model-and-whats-on-the-horizon/">Subscription business models</a> have become common – many products are now provided in the form of software, an app or access to a website. Some of these would once have been a physical book, newspaper, CD or exercise class. Most people who use online services have experienced the frustration of finding a credit card charge for an unwanted, unused subscription or spending excessive time trying to cancel a subscription. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=45&auto=format&w=600&h=643&fit=crop&dpr=1 600w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=30&auto=format&w=600&h=643&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=15&auto=format&w=600&h=643&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&h=808&fit=crop&dpr=1 754w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=30&auto=format&w=754&h=808&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=15&auto=format&w=754&h=808&fit=crop&dpr=3 2262w" alt="Infographic with a few statistics from the report." /></a><figcaption><a class="source" href="https://cprc.org.au/wp-content/uploads/2024/08/CPRC_LetMeOut_SubsTraps_Report_FINAL.pdf">CPRC, Let me out – Subscription trap practices in Australia, August 2024</a></figcaption></figure> Businesses can make it difficult for consumers to stop paying for unwanted subscriptions. Some do this by allowing consumers to start a subscription with a single click, but creating multiple obstacles if you want to end the subscription. This can include obscuring cancellation options in the app, requiring consumers to phone during business hours or making them navigate through multiple steps and offers before terminating. The report points out many of the last-ditch discounts offered in this process are only short term. One survey respondent said: <blockquote> I wasn’t able to cancel without having to call up and speak to someone. Their business hours meant I had to call up during my work day and it took some time to action. </blockquote> Other businesses badger consumers with frequent emails or messages after they cancel. One respondent said a business made “the cancellation process impossible by making you call and then judging your reason for cancellation”. <h2>What does consumer law say?</h2> Some subscription traps already fall foul of the Australian Consumer Law and warrant investigation by the <a href="https://www.accc.gov.au/media-release/accc-warns-consumers-to-beware-of-subscription-traps">Australian Competition & Consumer Commission</a> (ACCC). Consumers may have remedies where the business has engaged in misleading conduct or imposes an unfair contract term. For example, the ACCC is <a href="https://www.accc.gov.au/media-release/accc-court-action-against-eharmony-for-alleged-misleading-online-dating-membership-statements#:%7E:text=The%20ACCC%20has%20today%20commenced%20proceedings%20in%20the,the%20pricing%2C%20renewal%20and%20duration%20of%20its%20memberships.">suing dating site eHarmony</a> for its allegedly misleading subscription practices. In the United States, the Federal Trade Commission <a href="https://www.ftc.gov/news-events/news/press-releases/2024/06/ftc-takes-action-against-adobe-executives-hiding-fees-preventing-consumers-easily-cancelling">has filed a complaint against software company Adobe</a> for allegedly using dark patterns in its subscription practices. The Federal Trade Commission has alleged that “Adobe pushed consumers toward the ‘annual paid monthly’ subscription without adequately disclosing that cancelling the plan in the first year could cost hundreds of dollars”. Adobe <a href="https://news.adobe.com/news/news-details/2024/Adobes-Recent-Statement-Regarding-Updated-Federal-Trade-Commission-Complaint-/default.aspx">issued a statement</a> arguing the commission’s complaint “mischaracterises” its business. The litigation is ongoing. <h2>We need an unfair practices prohibition</h2> Some subscription traps would fall outside the existing consumer law. This is because they don’t meet the test for misleading conduct or unfair contract terms, but make it practically very difficult to cancel. The <a href="https://www.accc.gov.au/media-release/accc-welcomes-consultation-on-possible-unfair-trading-practices-regulatory-reforms">ACCC has advocated</a> for Australia to follow other countries such as the United Kingdom and the United States to enact an unfair practices prohibition to capture conduct like this. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=45&auto=format&w=600&h=769&fit=crop&dpr=1 600w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=30&auto=format&w=600&h=769&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=15&auto=format&w=600&h=769&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&h=966&fit=crop&dpr=1 754w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=30&auto=format&w=754&h=966&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=15&auto=format&w=754&h=966&fit=crop&dpr=3 2262w" alt="" /></a><figcaption>The shift businesses can make today. <a class="source" href="https://cprc.org.au/wp-content/uploads/2024/08/CPRC_LetMeOut_SubsTraps_Report_FINAL.pdf">CPRC, Let me out – Subscription trap practices in Australia, August 2024</a></figcaption></figure> <h2>Better practices benefit businesses too</h2> The CPRC report also revealed that 90% of Australians would likely purchase from the same organisation if cancelling a subscription process was quick and simple. Businesses focused on a short-sighted cash grab fail to realise that consumers might cancel but later return if treated well. The CPRC highlights businesses that are doing a good job. For instance, the habit change app Atoms (based on James Clear’s book Atomic Habits) has a genuinely free trial. It doesn’t require credit card details, doesn’t auto-renew, and lets consumers know how many trial days remain. The CPRC says the charity World Vision doesn’t auto-renew annual sponsorships, but reminds supporters about when the sponsorship will lapse. Importantly, some businesses – such as Netflix – use their data for good in this context. They notice when users are paying for the service without using it and help them unsubscribe. These practices should be applauded. But we need an unfair practices prohibition for businesses who don’t follow suit and recognise the long-term benefits of treating customers fairly.<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/237236/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/katharine-kemp-402096">Katharine Kemp</a>, Associate Professor, Faculty of Law & Justice; Lead, UNSW Public Interest Law & Tech Initiative, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/why-is-it-so-hard-to-cancel-subscriptions-or-end-free-trials-report-shows-how-companies-trap-you-into-paying-237236">original article</a>. </div>

Money & Banking

The eye-watering cost of Karl Stefanovic's "highly secret" 50th birthday bash

Karl Stefanovic had a "highly secretive" birthday party in Saint-Tropez. France, according to Women's Day. The Today host, who was in Paris to cover the Olympic games earlier this month, reportedly booked out an entire hotel for his 50th birthday bash. A source claimed that his party cost a staggering $200,000, with A-listers James Packer and Anthony Bell among the guests. "He'd be thinking you only turn 50 once so let's do this properly and go big!" the insider claimed. "Much like the $50,000 he dropped for (wife) Jasmine's 40th earlier this year, and the rumoured $10,000 birthday parties they have hosted for their four-year-old daughter Harper," they continued. "And then there was their $700,000 lavish Mexican nuptials - Karl has never done anything half-baked!" The party was allegedly 1970s themed, with Stefanovic's wife also showing off her new designer dresses. This comes after it was initially reported that Stefanovic was set to cancel his planned 50th birthday bash in Paris. Earlier this year, the Today host was reported to have spent a whopping $50,000 on his wife's lavish birthday celebrations in Noosa, according to the publication. Jasmine's entire look alone was worth an eye-watering $5,575, with her gown from Zimmermann costing $1,950. The party reportedly lasted for about two days, with a "recovery shindig" allegedly worth $10,000 also taking place. A close friend of the couple said at the time that "Karl is an old romantic" and was more than happy to treat his wife to a lavish birthday. Images: Instagram

Money & Banking

How fear of missing out can lead to you paying more when buying a home

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/park-thaichon-175182">Park Thaichon</a>, <a href="https://theconversation.com/institutions/university-of-southern-queensland-1069">University of Southern Queensland</a> The property market is a competitive space where finding a nice home, in the area you want, at a price you can afford is a hard ask. With buyers outnumbering available properties, the pressure is even greater causing some would-be buyers to develop <a href="https://health.clevelandclinic.org/understanding-fomo">a fear of missing out</a> (FOMO) and to make irrational decisions. FOMO might make you worry others are finding nicer homes and getting better deals, or that prices will rise to the point where you are priced out of the market altogether. This could cause you to pay too much or to buy a property in an area unsuitable for your needs. Then there is <a href="https://www.psychologytoday.com/au/blog/counseling-keys/202103/overcoming-fear-of-making-mistakes">fear of making a mistake</a> (FOMM), which can also cause problems if you’re a home hunter. You might be reluctant to bid or to negotiate because you are afraid of choosing the wrong property or paying more than it’s worth. <h2>Problems caused by FOMO and FOMM</h2> The principles of contagion theory, crowd psychology and the scarcity principle we identified in <a href="https://onlinelibrary.wiley.com/doi/epdf/10.1111/ijcs.12649?casa_token=271MN72XdP8AAAAA%3AfhYF_2yUJtM7KGv5jvFdXn5UsXQLkMcIM_F6hffYa30QaSdRivjf2mhFX-cr5C7ttCuLl1-e2OFYXBA">our research</a> on panic-buying during the pandemic, can be applied to any purchasing decisions. In this instance we applied them to buying properties in a competitive housing market. <a href="https://www.communicationtheory.org/contagion-theory/">Contagion theory</a> applies when people act irrationally under the influence of a crowd. <a href="https://www.bestvalueschools.com/faq/what-is-crowd-psychology/">Crowd psychology</a> is similar but relates to how a crowd behaves in certain circumstances, while <a href="https://www.indeed.com/career-advice/career-development/scarcity-principle">scarcity principle</a> is the idea if there are fewer items available, their value increases. Each of these can increase the likelihood of several behaviours when purchasing a property. These include: <ul> <li>Underbidding and overbidding</li> </ul> Fearing other buyers might get the house, house hunters might get caught up in a bidding war and end up paying more than planned. Conversely, buyers with FOMM might fear spending too much so bid too low to start with and risk losing the house. <ul> <li>Following the crowd and peer pressure influence</li> </ul> Buyers might feel <a href="https://link.springer.com/article/10.1007/s11403-021-00324-7">pressured to buy</a> in a certain area because it’s popular, even if it is not best fit for them. This can lead to paying more for a house just because others are doing the same. <ul> <li>Delaying decisions</li> </ul> FOMM can lead to <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/ijcs.12990?casa_token=ZhJnLBOwVxUAAAAA%3AW5haHZKSA1rFQsRNdvw0liOoyvdxl0OrFR2phkhGfYC6TnWRv9EsnV-N8w52CmcnAVb8X2yU1obpIjKx">taking too long to decide</a>. This delay can mean missing out on good deals or being forced to rush into a decision and end up overpaying. <ul> <li>Avoiding negotiation</li> </ul> Some buyers might avoid negotiating the price or special conditions such as building and pest inspections and finance approval because they fear the seller will reject their offer. This can result in paying more than they need to if there are problems later. <ul> <li>Excessive inspections and appraisals</li> </ul> While inspections and appraisals are important, too many can suggest indecisiveness driven by fear, resulting in wasted money on unnecessary assessments, and more importantly, wasted time and delayed decisions. <h2>Removing fear from the buying process</h2> Start with thorough research and preparation by learning about different neighbourhoods and house prices. The history of properties and suburbs can be found for free on property websites and is a good place to start. Seek professional guidance from real estate agents or financial advisers to help you through the process. Get insights on market trends from an agent from a selling company or bank to help find homes that meet your criteria. Keep in mind these agents will get some form of incentive from your purchase. All the big banks or loan officers can provide free property reports on specific properties or suburbs. Don’t forget to check council mapping and water authority documents to check for potential future road projects and other developments and for an area’s flood rating. Perform due diligence by thoroughly inspecting properties and reviewing contracts to ensure they meet your needs and are a good investment. For example, it is a good idea to hire a home inspector to check for any hidden issues before making an offer. Another common mistake made by most buyers is not asking their <a href="https://www.qld.gov.au/law/housing-and-neighbours/buying-and-selling-a-property/buying-a-home/before-you-start-looking/appointing-a-solicitor">solicitor</a> to check and give suggestions before signing a contract or offer. A solicitor can check the sale contract before you sign, review the disclosure documents, give advice on your mortgage contract, carry out title searches and explain the results and explain how the purchase may affect your liability for land tax. Do some contingency planning by preparing for unexpected price increases and for the presence of other strong bidders to reduce anxiety about making the wrong decision. Setting aside extra funds could help deal with higher than expected prices or unexpected repairs that need doing. In the end, plan well and make decisions without letting emotions take over. Taking your time to find the right home that fits your budget and goals, rather than rushing into a purchase due to fear of missing out or making a mistake.<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/233197/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/park-thaichon-175182">Park Thaichon</a>, Associate Professor of Marketing, <a href="https://theconversation.com/institutions/university-of-southern-queensland-1069">University of Southern Queensland</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/how-fear-of-missing-out-can-lead-to-you-paying-more-when-buying-a-home-233197">original article</a>. </div>

Money & Banking

World's second largest diamond unearthed

A massive diamond, believed to be the second largest in the world, has been unearthed in Botswana according to a mining company. The huge stone is thought to be the biggest found since the 3106-carat Cullinan Diamond was discovered in South Africa in 1905. Canadian mining company Lucara Diamond Corp. announced that the "exceptional" gem, at 2492-carats, was found intact in its Karowe mine. The company celebrated the find as "one of the largest rough diamonds ever unearthed," calling the discovery "remarkable". William Lamb, president and CEO of Lucara, said in the release: "We are ecstatic about the recovery of this extraordinary 2492 carat diamond." Prior to the latest announcement, the second largest discovery was thought to be the Lesedi La Rona, a 1109-carat stone also found by Lucara at the Karowe mine in 2015. The diamond was sold to luxury jeweller Graff for $53 million USD two years later. Lucara's spokeswoman said the company had found six of the top 10 diamonds ever discovered. Image credits: Lucara Diamond Corp

Money & Banking

Australia’s gender pay gap has hit a record low – but we still have work to do

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/leonora-risse-405312">Leonora Risse</a>, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Australia’s gender pay gap – a key measure of economic inequality between men and women – has fallen to a record low of 11.5%. That’s down from 13% this time last year, the steepest annual fall since 2016. Ten years ago, it was almost 19%. The latest figures are great news for our economy and our society – evidence we’re getting better at recognising and fairly valuing women’s capabilities and contributions. More opportunities are now open to women in the workforce, helping them gain and retire with greater financial independence than in previous decades. But national averages don’t tell the whole story. While gender pay gaps have fallen in some industries, they’ve also been rising in others. Today, August 19, is <a href="https://www.wgea.gov.au/pay-and-gender/equal-pay-day-2024">equal pay day</a>. This marks the 50 extra days past the end of the last financial year that Australian women would need to work for their earnings to match those of their male colleagues. This offers us a timely opportunity to reflect on what exactly has driven this year’s improvement – and where we still have work to do. <h2>Women’s earnings picking up pace</h2> We calculate the gender pay gap by comparing the average weekly ordinary-time, full-time <a href="https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/average-weekly-earnings-australia">earnings</a> for men and women. In dollar terms, women are now earning $231.50, or 11.5%, less than men, on average, in their weekly full-time pay packet. <hr /> <iframe id="HwwJ5" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/HwwJ5/1/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> The recent narrowing is being driven by women’s average earnings growth picking up pace. This contrasts with <a href="https://www.abc.net.au/news/2018-10-02/fact-check-gender-pay-gap/10302358">earlier periods</a> in which the narrowing of the gap tended to be due to a slowdown in the growth of men’s earnings. <hr /> <iframe id="R7uFE" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/R7uFE/1/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> <h2>What’s behind the improvement?</h2> While changes in the gender pay gap reflect a range of economy-wide factors, the Albanese government has been quick to attribute the recent fall to the various <a href="https://www.linkedin.com/feed/update/urn:li:activity:7229747376511447040/">targeted actions</a> it has taken since coming to office. Let’s look at whether and how these actions have played a role. First, the government sought to make wage information more transparent. It <a href="https://theconversation.com/pay-secrecy-clauses-are-now-banned-in-australia-heres-how-that-could-benefit-you-195814">banned pay secrecy clauses</a> and now requires the gender pay gaps of all large companies in Australia to be <a href="https://theconversation.com/qantas-pays-women-37-less-telstra-and-bhp-20-fifty-years-after-equal-pay-laws-we-still-have-a-long-way-to-go-223870">publicly reported</a>. These reforms took effect from 2023, targeting private companies. The gender pay gap in the private sector, though higher to begin with, has fallen more swiftly than that of the public sector, suggesting these actions have had an effect. <hr /> <iframe id="ZKMdm" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/ZKMdm/1/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> Second, the government targeted gender-patterned biases in industrial relations – including the <a href="https://theconversation.com/50-years-after-equal-pay-the-legacy-of-womens-work-remains-118761">legacy effects</a> of past decisions – and instilled gender equity as a new objective of Australia’s Fair Work Act. The Fair Work Commission is now required to take gender equity into account in its wage deliberations, including its <a href="https://www.fwc.gov.au/documents/resources/2024fwcfb3500.pdf">minimum wage decision</a>. The government also introduced multi-employer bargaining in an attempt to strengthen workers’ bargaining capacity in female-concentrated sectors. The effects of these changes will continue to flow across the workforce as the Fair Work Commission undertakes its review of modern awards, prioritising those affecting <a href="https://www.fwc.gov.au/hearings-decisions/major-cases/gender-undervaluation-priority-awards-review">female-concentrated industries</a>. <figure class="align-right zoomable"><figcaption></figcaption></figure> And third, further addressing the historical undervaluation of “women’s work”, the government directly addressed low pay in female-concentrated sectors by supporting a pay rise for <a href="https://www.fairwork.gov.au/newsroom/news/15-per-cent-wage-increase-aged-care-sector">aged care workers</a>. Targeting the low pay and under-valuation of an industry that is about 87% female helped fuel the downward momentum in the overall gender pay gap. The government’s recently announced pay rise for <a href="https://ministers.education.gov.au/anthony-albanese/pay-rise-early-educators-while-keeping-fees-down-families">early childhood education and care workers</a> – a workforce that is around 95% female – will also target gender patterns in low pay once they come into effect. These government actions have been essential for undoing the gender biases embedded in existing systems. And they have complemented other initiatives that have taken effect in the past year, such as the <a href="https://www.respectatwork.gov.au/new-positive-duty-employers-prevent-workplace-sexual-harassment-sex-discrimination-and-victimisation">Respect At Work Act</a>, requiring employers to proactively stamp out sexual harassment. But there is still a way to go to keep closing the gender gaps across all parts of the workforce. <h2>Falling in some industries, rising in others</h2> Breaking down the gender pay gap in earnings by sector paints a more varied picture. In industries like construction, public administration and safety, and retail trade, it has fallen notably over the past two years. <hr /> <iframe id="poLND" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/poLND/1/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> But it remains high in industries like healthcare and social assistance, at over 20%, and finance and insurance at 18%. <hr /> <iframe id="6cLnT" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/6cLnT/2/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> In some industries, the gap has actually increased over the past two years. In arts and recreation services, as well as electricity, gas, waste and water services, it’s been continually rising. <hr /> <iframe id="M8fve" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/M8fve/1/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> <h2>That could reflect a bigger shift</h2> It’s important to interpret these figures carefully. In some instances, a widening of the gender pay gap can reflect a positive shift in an industry’s makeup, if it reflects more women joining a male-dominated sector at entry level, and growing a pipeline of senior women for the future. That’s why the Workplace Gender Equality Agency (WGEA) gives organisations a chance to explain these dynamics in their <a href="https://www.wgea.gov.au/about/our-legislation/publishing-employer-gender-pay-gaps">employer statements</a>, which are published on the WGEA website alongside organisations’ gender pay gaps. Over time, the entry of more women at the junior level can flow through to more gender balance as these women progress to senior and decision-making roles. The real test will be to ensure – by fostering more gender equitable, inclusive and respectful work cultures and systems – that they do.<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/236894/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/leonora-risse-405312">Leonora Risse</a>, Associate Professor in Economics, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/australias-gender-pay-gap-has-hit-a-record-low-but-we-still-have-work-to-do-236894">original article</a>. </div>

Money & Banking

Hero security guard tears up while speaking about girl he saved

Laila Johnson, 11, and her mother Samantha, 34, from Candelo near Bega in regional NSW, were sightseeing in London when the young girl was stabbed in a <a href="https://www.oversixty.com.au/health/caring/11-year-old-australian-girl-identified-as-london-stabbing-victim" target="_blank" rel="noopener">random attack</a> in Leicester Square. Abdullah, a security who was working nearby during the random attack, had jumped into action and saved her life by holding down the alleged attacker, Ioan Pintaru, until police arrived. On Thursday, Laila and her mum talked about the terrifying incident on Sunrise, and spoke about the incredible bond they had formed with the hero security guard. When shown the clip of Laila and her mum on Sunrise the day after, Abdullah was moved to tears by the heartfelt interview. “I will try to be in contact with them all my life,” Abdullah said, wiping away tears from his eyes. “She is just like my little sister now.” Abdullah was hailed as a hero for his bravery, and recognised at the Pakistan High Commission in London as part of their Independence Day celebrations on the 14th of August. Samantha had told Sunrise that Abdullah “is an absolutely gorgeous human”. “He’s just been checking in on Laila and myself and, yeah, we’ve just been keeping in contact,” she said. “He’s quickly taken Laila in as a little sister, and I think that he will continue to check in on her for a very long time." Pintaru — a Romanian citizen with no fixed address — was not asked to enter any pleas and was remanded in custody before his next hearing on September 10. He was charged with attempted murder and possession of a bladed article in a public place. Images: Seven

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World's second largest diamond unearthed

Australia’s gender pay gap has hit a record low – but we still have work to do

Hero security guard tears up while speaking about girl he saved

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Shop

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Newspaper

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Entertainment

Travel

Health

Lifestyle

Finance

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Keep up to date

Search

Old grocery receipt highlights extortionate increase at supermarkets

Surcharges are added to most purchases, but what are the rules behind these extra fees?

Rare coin hidden for decades to fetch eye-watering sum

Shoppers outraged over Coles bin full of discarded groceries

What’s a recession – and how can we tell if we’re in one?

Aussies top global list for biggest gambling losses

How much money is actually thrown into the Trevi Fountain

Readers response: What have you had to cut out of your life to cope with cost of living pressures?

Cash boost for millions of Aussies as indexation kicks in

Jessica Alba surprises dad by buying his childhood home

Doting dad sells everything he owns to develop cure for son's "incurable" condition

Oasis issue urgent warning after scalpers list tickets for $42,000

Readers response: What would you do if you won $1,000,000 in the lottery tomorrow?

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

Why is it so hard to cancel subscriptions or end ‘free’ trials? Report shows how companies trap you into paying

The eye-watering cost of Karl Stefanovic's "highly secret" 50th birthday bash

How fear of missing out can lead to you paying more when buying a home

World's second largest diamond unearthed

Australia’s gender pay gap has hit a record low – but we still have work to do

Hero security guard tears up while speaking about girl he saved

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