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Australia’s largest super fund fined $27 million

Australia's largest superannuation fund has been charged a whopping $27 million for charging duplicate fees to tens of thousands of customers. AustralianSuper was first sued by the Australian Securities and Investments Commission (ASIC) in 2023. During the investigation, it was discovered that more than 48,000 members’ accounts were not merged in their best interests, allowing duplicate fees to eat in to the retirement savings of hard-working Aussies. About 90,000 AustralianSuper members were affected between July 2013 and March 2023, costing them $69 million. Both ASIC and AustralianSuper appeared in the Federal Court at Melbourne on Friday, where Justice Lisa Hespe handed down her decision. AustralianSuper were fined $27 million, and were also ordered to pay ASIC’s legal costs up to $500,000. “By failing to properly remediate that beneficiary, AustralianSuper did not exercise in relation to the interests of that beneficiary the same degree of skill, care and diligence as a prudent superannuation trustee would have exercised,” Justice Lisa Hespe ruled. AustralianSuper apologised to members when the lawsuit began, saying it regretted that its processes to identify and combine multiple accounts did not cover all instances of multiple member accounts. In a statement after the hearing, AustralianSuper chief executive Paul Schroder said they had taken steps to prevent similar mistakes. “We found this mistake, we reported it, we apologised to impacted members, we compensated them, and we’ve improved our processes to prevent this happening again,” he said. Image credits: Shutterstock

Money & Banking

Use it or lose it as historic super cap prepares to expire

Jordan Kennedy is a Partner at accounting and advisory firm Pitcher Partners Sydney. Australians could be sitting on a golden opportunity to spur their super savings this year — but if they don’t act fast, they will miss out. That’s because in July they will lose the entitlement to claim any unused superannuation tax concessions from 2019-20, known as the concessional cap. The concessional cap is the total annual amount that can be contributed into super by a person’s employer, through salary sacrifice or claimed as a tax deduction, before the person is charged at the ordinary taxable rate. In other words, for most Australians there is a gap between what they or their employer contribute each year and the total amount they could contribute, taking advantage of tax concessions. In 2019-20, that capped amount was $25,000, and unless people were making or receiving contributions above the superannuation guarantee, they would have needed to earn about $260,000 to hit the cap. If they didn’t, there may still be ‘available’ cap that has built up over the last five years and can be used to access the 15% tax rate on earnings — until July 1, when the cap expires. While this sounds technical, reviewing past superannuation contributions and checking to see that caps have been maxed out is one of the easiest ways to achieve a tax deduction. Of course, there are a few aspects to this strategy that bear consideration. The concession cap system is a use it or lose it play. Any gap between contributions and cap will expire after five years, so this is the last chance to retrospectively boost your superannuation using the 2019-20 cap. That said, as this is the first year we have seen the cap expire, it might have slipped the minds of many. Even if you have maxed out the cap for that year, you should take the opportunity to look at more recent years as well to see if you have been carrying forward an available pool of tax concessions. The second thing to note is that the vast majority of Australians will have a tax cap opportunity available. For anyone on an average salary, the cap gap can grow by $10,000 or more each year, unless additional contributions are made through salary sacrifice or as a tax deduction. The concession is also available for those who might have stopped work to have children or who are reducing their workload approaching retirement. Check with your accountant or your super fund — you might have tens of thousands of dollars in tax concessions available for use. Thirdly, consider your timing. If you know you will have tax capacity in coming years, try to time your use for those years where you have a significant tax event, such as realising capital gains. This can reduce your tax liability without disrupting your other plans. In this case, seeking strategic advice is extremely important to determine the optimal outcome for your circumstances. And finally, recognise there are exceptions. People whose superannuation balance is already over $500,000 are excluded from taking advantage of the cap rollover, but could still benefit from advice on how they should balance their tax liabilities while maximising their superannuation. Whatever your circumstance, speaking to a qualified, independent advisor is the first step to ensure you are working within the complex rules that govern super and taking best advantage of the tax concessions available. But if there is an opportunity to reduce your tax liability for limited effort, you would be mad not to explore your options. Image credits: Shutterstock

Retirement Income

Aus Post worker jailed after stealing from packages

An Australia Post contractor has been jailed after stealing $400,000 worth of luxury goods from packages. According to the Australian Federal Police, items such as jewellery, luxury watches, alcohol and gift cards were among the “significant number” of goods stolen from packages between November 2021 and May 2023. The 43-year-old man from Bexley in Sydney was sentenced to imprisonment for two years and three months when he faced the Downing Centre District Court on Tuesday. He is able to be released after serving 15 months on the condition he is then of good behaviour for two years. An investigation began into the thief in May 2023 after a report of “a man tampering with postal packages” was filed. A search warrant executed at the man’s Bexley home uncovered $398,000 worth of stolen items and $39,000 in cash which was the “proceeds of crime from the sale of tobacco the man had taken from mail packages,” AFP said. Police found an estimated $138,000 worth of alcohol, $124,000 of luxury watches, $52,000 of gift cards, and $43,000 of jewellery in the man's home. Police also seized 24g of methamphetamine, 17.8g of ketamine and small quantities of cocaine, MDMA and cannabis during their search of the property. The man pleaded guilty to three charges related to the postal theft, drug possession, and proceeds of crime. AFP acting Superintendent Stuart Millen said the man abused his trusted position with Australia Post for his own personal gain. “Criminals are motivated by profit and greed, and the AFP has zero tolerance for those who abuse employment access for their own illegal pursuits,” he said. “This was an opportunistic attempt to use a trusted position within Australia’s mail delivery system to profit, with no regard to its impact on the community." “People with trusted access are critical to the successful operation of Australia’s trade sectors, but the AFP will not hesitate to investigate and prosecute those who abuse this trust." “The AFP works closely with Australia Post to ensure trusted insiders abusing their position for criminal endeavours are dealt with swiftly to ensure public confidence in the Australian postal system.” Image credits: AFP

Legal

Want your loved ones to inherit your super? Here’s why you can’t afford to skip this one step

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/tobias-barkley-1271340">Tobias Barkley</a>, <a href="https://theconversation.com/institutions/la-trobe-university-842">La Trobe University</a> What happens to our super when we die? Most Australians have superannuation accounts but about <a href="https://www.austlii.edu.au/cgi-bin/viewdoc/au/journals/SydLawRw/2024/10.html#Heading24">one in five</a> of us die before we can retire and actually enjoy that money. If we do die early our money is paid out as super “death benefits”. They can be substantial. Even people who die young can have $200,000–$300,000 of death benefits through <a href="https://moneysmart.gov.au/how-life-insurance-works/insurance-through-super">super life insurance</a>. Death benefits have recently been in the news for all the wrong reasons. Last week <a href="https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/mandatory-service-standards-superannuation-industry">the Treasurer Jim Chalmers</a> expressed concern about delays paying out death benefits. <a href="https://lawcouncil.au/resources/submissions/proposed-reform-to-superannuation-death-benefits">The Law Council</a> is concerned people do not have enough control over how death benefits are distributed. <a href="https://www.watoday.com.au/national/western-australia/championing-for-molly-perth-mum-s-milestone-in-her-quest-for-justice-20241206-p5kwiu.html">Others are devastated</a> about death benefits being paid to alleged violent partners. <h2>How can you decide who gets your unspent super?</h2> Our first thought might be writing it in our will. However, super is not covered by our will as it does not become part of our <a href="https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FCA/2001/1535.html">deceased estate</a>. Instead, death benefits are distributed by the trustee of your superannuation fund. Under the law, there are two main mechanisms controlling distribution: <a href="https://www.australiansuper.com/superannuation/access-your-super-early/nominate-a-beneficiary#:%7E:text=A%20binding%20nomination%20instructs%20AustralianSuper,the%20date%20we%20accept%20it.&text=Lapsing%20binding%20nomination%20%E2%80%93%20This%20nomination,date%20you%20sign%20the%20form.">binding nominations</a> and the trustee’s discretion. Every super member has the option to create a binding nomination. It’s like a will for your super that the super trustee is obliged to follow. It also needs two witnesses to execute it. However, there are actually more ways for a binding nomination to fail than for a will to fail. The law only allows you to nominate certain people: your “<a href="https://www.lawsociety.com.au/resources/resources/my-practice-area/elder-law/superannuation-FAQs#collapse_165">dependants</a>” or your estate. If you nominate anyone else your entire nomination stops being binding. Plus, unlike wills, there is no way to fix execution errors. Also, many binding nominations expire after three years. If you don’t have a binding nomination, then the trustee can choose who your death benefit goes to. There are two main mechanisms controlling how the trustee chooses who gets your death benefit. First, <a href="https://treasury.gov.au/sites/default/files/2019-03/c2019-t371937-discussion-paper.pdf">legislation</a> requires the trustee to give the death benefit to your dependants or deceased estate before anyone else. This means that your parents, for example, will only receive something if you have no children, partner or other dependants. Second, decisions made by trustees can be disputed by complaining to the <a href="https://www.afca.org.au/">Australian Financial Complaints Authority (AFCA)</a>. The authority has a rigid approach to who should get death benefits and trustees usually follow this course of action. <a href="https://openjournals.library.sydney.edu.au/SLR/article/view/20199">Research I’ve done with Xia Li</a> of La Trobe University reveals what AFCA does in practice. Most crucially, people’s wishes expressed in non-binding nominations were essentially ignored. Our research found there was no statistically significant association between being nominated in a non-binding nomination and receiving any of the death benefit. This was true even for recent nominations. Other factors the complaints authority ignores are family violence and financial need. In one case, five daughters provided evidence, including a police report, that their deceased mother was a victim of violence perpetrated by her new partner. <a href="https://service02.afca.org.au/CaseFiles/FOSSIC/701195.pdf">In keeping with the Federal Court, AFCA gave the alleged perpetrator</a> everything because he alone would have benefited from the deceased’s finances if she had lived. In another case, <a href="https://service02.afca.org.au/CaseFiles/FOSSIC/874050.pdf">the deceased’s adult son received nothing</a> despite living with disability and “doing it tough”. He had refused financial help so was not financially dependent. AFCA gave everything to the partner. AFCA ignores these factors because of one key issue. It places “<a href="https://service02.afca.org.au/CaseFiles/FOSSIC/832049.pdf">great weight</a>” on whether beneficiaries are financially dependent on the deceased. This means when choosing between a financial dependent – such as a new partner who shares home expenses with the deceased, and non-financial dependants, such as most adult children – AFCA will almost always give everything to the spouse. Relying on financial dependence can be arbitrary. Unlike in family law, a de facto partner <a href="http://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/sia1993473/s10.html#spouse">does not need to be living with you for two years</a> before becoming entitled. For example, <a href="https://service02.afca.org.au/CaseFiles/FOSSIC/753556.pdf">in one case AFCA gave a partner of possibly only seven months</a> (and 41 years younger than the deceased) everything and the deceased’s three children aged 27–33 nothing. Also, AFCA treats any regular payment that supports daily living as financial dependence. For example, <a href="https://service02.afca.org.au/CaseFiles/FOSSIC/714258.pdf">a son paying A$100 a week board to parents means both parents are financially dependent on the son</a>. In another case, payments from the deceased to his brother of $5,000, $7,000 and $5,000 made over a year <a href="https://service02.afca.org.au/CaseFiles/FOSSIC/842323.pdf">was not financial dependence because they were irregular</a>. The whole process is slow. The average time it takes to resolve a death benefit case that goes to AFCA is nearly <a href="https://www.austlii.edu.au/cgi-bin/viewdoc/au/journals/SydLawRw/2024/10.html#Heading248">three years and the longest case I’ve seen took over six</a>. The only thing that you can do that will make a difference is execute a binding nomination; non-binding nominations are worthless. But take care to execute your binding nomination correctly (get legal advice) and leave reminders for yourself to review it every three years.<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/248019/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/tobias-barkley-1271340">Tobias Barkley</a>, Lecturer, <a href="https://theconversation.com/institutions/la-trobe-university-842">La Trobe University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/want-your-loved-ones-to-inherit-your-super-heres-why-you-cant-afford-to-skip-this-one-step-248019">original article</a>. </div>

Money & Banking

Nick Kyrgios makes retirement announcement after Aus Open comeback

Nick Kyrgios has made a candid admission about his participation in future Australian Opens as his comeback ended in tears. The 29-year-old returned to Melbourne after two years from the AO away to nurse an injury, although his return ended in disappointment in a straight-sets loss to Brit Jacob Fearnley. Many spectators were quick to point out that Kyrgios didn't seem like himself as his injury was affecting his serve and his endurance on the court. After looking down and out, he fought to the very end before crashing to the 7-6 (7-3), 6-3, 7-6 (7-2) loss. Speaking after the match, Kyrgios said he was “heartbroken” at being unable to perform at his show-stopping best, but added that he only played on for the packed John Cain Arena crowd cheering him on. “Realistically I can’t see myself playing singles again here,” he said. “It was special (atmosphere), taking that in, it was pretty good. I knew that I have doubles so I kind of was taking everything in tonight, in those moments, it was nuts." “I didn’t want to just throw in the towel and walk off or retire. I was hurting physically but I respect my opponent and the fans that waited hours to come see me play.” He later added: “Honestly, the reason I kept playing, tried to play tonight, was because of the fans. As I said, I don’t know how many times I’m going to be back here again." “That’s why I didn’t have headphones on, I wasn’t listening to music. I walked out there today, wanted to hear the crowd. There were some special moments.” Kyrgios still plans to team up with Thanasi Kokkinakis in the doubles and will continue to play out the season in singles. “It’s hard. When you’re competing for the biggest tournaments in the world and you’re struggling to win sets physically, it’s pretty tough,” he continued. “But I’ve still got a long year ahead. I’m trusting the process that I can still be able to do some cool things this year at some stage.” Despite the immediate devastation, Kyrgios was targeting a deep run at Wimbledon. “Obviously Wimbledon is a big one for me. I still feel like obviously, if I don’t have an abdominal strain, I feel when I sustained that five days before a grand slam, it’s not ideal,” he said. “Hopefully, if my body’s feeling good, I’ll be able to make some noise at Wimbledon.” Image credits: Rachel Bach/Shutterstock Editorial

Retirement Life

Retiring with debt? Experts explain downsizing, using super for your mortgage, and pension eligibility

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/kathleen-walsh-218536">Kathleen Walsh</a>, <a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</a> and <a href="https://theconversation.com/profiles/jemma-briscoe-2234812">Jemma Briscoe</a>, <a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</a> About <a href="https://cepar.edu.au/sites/default/files/cepar-research-brief-housing-ageing-australia.pdf">36%</a> of homeowners still have a mortgage when they retire, up from 23% a decade ago. This increase in mortgage debt is due to soaring property prices, <a href="https://www.mlc.com.au/content/dam/mlc/documents/pdf/retirement/retirement-reports-housing-report.pdf">changes in retirement ages</a> and easy access to <a href="https://www.dss.gov.au/our-responsibilities/seniors/benefits-payments/home-equity-access-scheme">drawdown equity loans</a> (where you use your home as security to get a loan, which can be used to fund travel, medical costs and other expenses). So, what are the options for homeowners who carry debt into retirement? <h2>Option 1: keeping the home and the debt</h2> If you keep the family home in retirement, you get to own a property and can still receive the <a href="https://www.dva.gov.au/get-support/financial-support/income-support/what-changes-your-payments/your-property-or-accommodation/how-owning-home-can-affect-pensions-and-payments">age pension</a>. For example: Jackie has a home worth A$2 million with a $200,000 mortgage. She also has $800,000 in superannuation. She is 67 but is not eligible for the age pension because her <a href="https://moneysmart.gov.au/how-super-works/tax-and-super#:%7E:text=If%20you're%20aged%2060%20or%20over%20and%20withdraw%20a,as%20a%20public%20sector%20fund.">assessable assets</a> – her super – is above the $695,500 cut off. If Jackie takes $200,000 from her super and repays the outstanding mortgage debt, she will save on interest and principal repayments for the next ten years. She will also reduce her assessable assets by $200,000. This makes her eligible for a part pension. So while Jackie has less super, she gets to receive a pension and gets all the subsidies associated with being a pensioner. <h2>Option 2: downsizing to clear the debt</h2> Downsizing can extinguish any remaining debt, and can free up money for holidays, restaurants and the good life in retirement. It also enables a move to a more age-friendly home or apartment. And the government does provide a superannuation incentive via the <a href="https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/downsizer-super-contributions">downsizing contribution</a>. This allows homeowners over 55 who have lived in their home for more than ten years to make a one-off contribution of $300,000 (singles) and $600,000 (couples) to their super, using money from the sale of their home. But when a person reaches pension age, currently 67, any money in super will be included in <a href="https://www.servicesaustralia.gov.au/deeming?context=22526">the government’s assessment</a> of your financial assets and income. It could mean you don’t qualify for a pension or pensioner subsidies. Of the approximately 2.6 million who receive a part or full the age pension, only <a href="https://www.ato.gov.au/about-ato/research-and-statistics/in-detail/super-statistics/downsizer-super-contributions-data">78,000 people</a> have taken up this initiative. That begs the question if this option really does create a true financial downsizing incentive. Think again of Jackie, the woman with the $2 million home and the $200,000 in mortgage debt. Say she decides to sell her home and move to a smaller house close to family and friends. This will incur about $40,000 in selling and marketing fees, and stamp duty of around $62,000 on her new $1.4 million apartment. Downsizing leaves her with $1.1 million in financial assets (after transaction costs), which means that Jackie is not eligible for the pension. While she’ll be able to fund a comfortable lifestyle, this decision to downsize may not be as attractive as keeping the house. The decision to sell and move has cost her an extra $100,000 in transaction costs and her pension. So, people need to think carefully about downsizing. It can allow people to move closer to children, grandchildren, and the services they need – but these must be balanced against the financial implications. <h2>What about renters?</h2> Paying market rent while on a fixed income can be very hard, so renting is a challenge for retirees. According to the <a href="https://www.abs.gov.au/statistics/people/housing/housing-census/latest-release">2021 census</a>, women aged 55-64 and those over 65 are among the fastest-growing groups experiencing homelessness. The good news is many profit and not-for-profit retirement communities provide rental models and discounted entry contributions to residents with limited means (but there are often waiting lists). Retirement village residents may also be eligible for <a href="https://guides.dss.gov.au/social-security-guide/4/6/4/30">rent assistance</a> depending on their circumstances. Rent assistance is an extra $5,751 per year in social security benefits and provides extra financial support to <a href="https://guides.dss.gov.au/social-security-guide/5/1/7/10">eligible age pension recipients</a>. Retirement communities provide vulnerable older Australians a unique opportunity to move into a community under a leasehold or licence agreement. More than 260,000 senior Australians live in about <a href="https://www.propertycouncil.com.au/media-releases/retirement-living-construction-leads-wary-market">2,500 retirement communities</a> across the country. While a retirement village may not be the first option for many retirees, they can provide affordable accommodation. <h2>Making the best choice</h2> Navigating housing decisions as you approach retirement means balancing financial, emotional, and lifestyle considerations. Homeowners retiring with a mortgage face a choice: keep their home or downsize to alleviate debt. Keeping the home and accessing super to pay the outstanding debt improves cash flow and allows you to keep your biggest asset. Downsizing helps eliminate debt and boosts the super balance, but comes with extra transaction costs (and you may end up with less pension, or none at all). Seeking professional <a href="https://moneysmart.gov.au/financial-advice/choosing-a-financial-adviser">financial advice</a> is crucial, and ensure they are a registered <a href="https://moneysmart.gov.au/financial-advice/financial-advisers-register">financial advisor</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/240679/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/kathleen-walsh-218536">Kathleen Walsh</a>, Professor of Finance, <a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</a> and <a href="https://theconversation.com/profiles/jemma-briscoe-2234812">Jemma Briscoe</a>, Adjunct lecturer in finance, <a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology 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/retiring-with-debt-experts-explain-downsizing-using-super-for-your-mortgage-and-pension-eligibility-240679">original article</a>. </div>

Retirement Income

"Apology not accepted!" Steve Price blasts pub's Aus Day boycott

Steve Price has slammed the Aussie pub group responsible for <a href="https://oversixty.com.au/finance/legal/hundreds-of-pubs-cancel-australia-day-celebrations" target="_blank" rel="noopener">cancelling</a> January 26th celebrations in over 200 venues around the country. After copping widespread backlash for the controversial move, Australian Venue Co apologised for causing "concern and confusion" with their decision to cancel any Aus Day celebrations in their venues out of respect for Indigenous Australians. On Monday night's episode of The Project, Steve Price launched into a tirade about the decision, saying, “Apology not accepted!" "When are these finger waving woke corporations going to wake up to the fact we don’t want them to tell us what to do on Australia Day,” he said. “Last year it was Woolworths, ‘oh we won’t sell the flag’, the CEO, Brad Banducci, ended up losing his job. Just shut up and let people throw a lamb chop on the barbecue, have a beer and get on with it." <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/DDEYltQPGhB/?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/DDEYltQPGhB/?utm_source=ig_embed&utm_campaign=loading" target="_blank" rel="noopener">A post shared by The Project (@theprojecttv)</a> </div> </blockquote> “It’s really annoying, they put this out overnight and when they hear the feedback from the public which says ‘shut up’, they go ‘oh we didn’t mean to offend anyone’, well you did offend people!” Sarah Harris went on to question what the ban would look like, asking, "Are they going to ban merch, T-shirts? It doesn’t make any sense.” In a lengthy statement on Monday, Australian Venue Co said it regrets the "concern and confusion" it has caused over comments about celebrating Australia Day. "We sincerely regret that — our purpose is to reinforce community in our venues, not divide it," the statement read. "It is not for us to tell anyone whether or how to celebrate Australia Day. We acknowledge that and we apologise for our comments. It certainly wasn't our intention to offend anyone." "Whether you choose to celebrate Australia Day or not, everyone is welcome in our pubs, always." Image credits: Getty Images / Sky News

Legal

New report reveals huge amount of super needed to retire

Australians will need nearly $600,000 in their superannuation to retire comfortably, according to a new report. The Association of Superannuation Funds (ASFA) Retirement Standard report found that home-owning singles would need $595,000 to retire at 67 with a “comfortable” lifestyle, while a home-owning couple in relatively good health would need $690,000. This means that home-owning couples would need $73,337 per year while home-owning singles would need $52,085 for a comfortable lifestyle. Their analysis also found that for a more modest lifestyle, a superannuation balance of $100,000 is needed for both singles or couples. Both budgets assume the retirees own their homes and are relatively healthy. On Wednesday, financial commentator Betsy Westcott told Sunrise that Aussies needed to start thinking about retirement earlier to make the most of their savings. “The longer that you contribute to super and pay attention it to it, the less you have to do to create that really golden retirement because age is your superpower,” Westcott said. “If you’re not paying attention to your super, which, let’s be honest, most of us aren’t, you could be missing out on some really big gains (to the overall balance).” She added that most people retired closer to 65 than 67 and ended up with a lot less superannuation than the benchmark. While the ASFA retirement standard took into account “everyday spending,” Wescott said it did not factor in expenses like helping children buy a home, or buying into a retirement village. She also stressed that these benchmarks were just a guide saying: "Personal finance is just that, it is personal.” “Your idea of a golden retirement will look different to your neighbour’s, your cousin’s, your best friend’s." Image: Shutterstock

Retirement Life

"Super uncomfortable for everyone": Qantas plays R-rated movie for every passenger

Qantas has issued an apology after an R-rated movie was played for every passenger onboard a flight from Sydney to Tokyo. On Saturday, the flight was delayed by an hour due to problems with the in-flight entertainment system, which resulted in cabin crew only being able to play one film on everyone's individual screens. After requests were taken by passengers, the movie Daddio was chosen. The 2023 drama stars Sean Penn and Dakota Johnson as a taxi driver and his passenger as they discuss their relationships, including an affair Johnson’s character had with a married man. One passenger took to Reddit to share their experience of the flight, saying it was "extremely inappropriate", due to scenes of “graphic nudity and a lot of sexting”. “The kind where you could literally read the texts on screen without needing headphones,” the passenger wrote. “It was super uncomfortable for everyone, especially with families and kids on board.” Another passenger said the airline made the switch to Inside Out 2 followed by a New Zealand nature show after playing “40 minutes of penis and boobs”. “These poor kids and the parents because y’all should’ve heard the audible gasps across the plane,” the passenger said. Cabin crew members attempted to fix the screens of those who didn't want to watch the R-rated film, but when this didn't work, resorted to switching the movie entirely. “The movie was clearly not suitable to play for the whole flight and we sincerely apologise to customers for this experience,” a Qantas spokesperson stated. “All screens were changed to a family-friendly movie for the rest of the flight, which is our standard practice for the rare cases where individual movie selection isn’t possible." “We are reviewing how the movie was selected.” Image credits: Shutterstock

Travel Trouble

ATO urges Aussies to cash in on nearly $18 billion in lost or unclaimed super

The Australian Taxation Office is urging people to check whether they are eligible to cash in on almost $17.8 billion in lost or unclaimed superannuation. Lost super is when your fund has lost touch with you or your account is inactive, and this can occur if you've changed your name, moved homes or changed jobs, without updating your details. The lost super becomes unclaimed when your fund transfers this lost money to the ATO. "Since 2021, the ATO has reunited almost $6.4 billion of unclaimed super with its owners. But there is still more than $17.8 billion waiting to be found," ATO deputy commissioner Emma Rosenzweig said. "If you've changed jobs, moved house or simply forgotten to update your details, you may have lost or unclaimed super. "We're urging Australians to check if some of the $17.8 billion in lost and unclaimed super belongs to them." As of June 30, 2024, super funds and the ATO are holding lost super for over 7.1 million accounts, with retirees among those with lost or unclaimed super. The ATO revealed it was holding $471 million on behalf of those aged over 65. “Superannuation is a key part of your retirement, and we want to make sure Australians are claiming the investment they’ve worked for,” Rosenzweig said. You can check for lost super online through the <a href="https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/keeping-track-of-your-super/super-health-check#ato-Check3Checkforlostandunclaimedsuper" target="_blank" rel="noopener">ATO</a>. For those wanting to search for unclaimed cash, including unclaimed refunds, share dividends, uncashed cheques and more, you can visit <a href="https://asic.gov.au/for-consumers/unclaimed-money/" target="_blank" rel="noopener">federal</a> and state websites to see if you have anything owed to you. Unclaimed money is cash owed to people who can't be located, either due to name or address changes, lost paperwork or just forgot about the cash. Image: Shutterstock

Money & Banking

Super Rugby player dies at just 25

New Zealand rugby player Connor Garden-Bachop has died aged 25. Police were called to the scene of a sudden death in Fendalton, Christchurch just before 6pm on Monday, according to the NZ Herald. “The death is not being treated as suspicious and will be referred to the Coroner,” police said. Garden-Bachop, son of former All Black Stephen Bachop, was part of the Highlanders' Super Rugby squad this season, and they have also confirmed his death in a statement shared on Facebook. “On behalf of the entire rugby community, the Highlanders, Wellington Rugby, New Zealand Rugby, the New Zealand Māori Rugby Board and the New Zealand Rugby Players Association would like to extend our deepest thoughts and love to the Garden-Bachop family,” the statement read. “Connor passed away on Monday following a medical event, and rugby’s collective focus at this time is on supporting his family. "All of rugby walks alongside the Garden-Bachop family at this time and we are collectively united in our grief," the statement continued. “Connor was a fantastic young player, an exciting New Zealand age-grade representative and a proud Māori All Black. Wherever he played, he was a committed and popular teammate with infectious energy and someone who could light up the room. “Most importantly, he was a loving father to his twin girls, a brother, a son and immeasurably loved by all those who knew him. “NZR, the New Zealand Māori Rugby Board, the Highlanders, Wellington Rugby and the Players Association are providing support and we ask that the privacy of the Garden-Bachop family is respected.” Garden-Bachop, an outside back, made his Highlanders debut in 2021. After five seasons with the team, the Highlanders announced on Facebook last week that he would not return to the team next season. The rugby player is survived by his twin daughters. Images: Instagram

Caring

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

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/fernanda-mata-1533222">Fernanda Mata</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a>; <a href="https://theconversation.com/profiles/breanna-wright-267597">Breanna Wright</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a>, and <a href="https://theconversation.com/profiles/liam-smith-5152">Liam Smith</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a> Late last year the federal government announced <a href="https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/government-unveils-comprehensive-financial-advice">measures</a> to make it easier for Australians to access financial advice. As part of this, the government wants super funds to use “nudges” to get members to engage more with their retirement investments and superannuation, especially when they’re starting work and approaching retirement. While the legislation containing the changes is still in the consultation phase, super funds are <a href="https://www.afr.com/companies/financial-services/super-funds-spend-big-ahead-of-advice-reforms-20240418-p5fkx6">upskilling staff</a> and making other changes to improve customer service or risk a government crackdown. Telling funds to use <a href="https://www.behaviourworksaustralia.org/blog/nudging-what-is-it-and-how-can-we-use-it-forgood">nudge theory</a> to advise on super comes as more than five million Australians are heading towards retirement. <h2>What is nudge theory?</h2> Nudging is used to encourage people to pick the “better” option, without taking away their freedom to choose differently. For example, sending regular reminders to members about the benefits of voluntary contributions can get them to increase the amount they put in. This nudge makes it easier for them to contribute more – the better option – while still allowing them to choose not to. Assistant Treasurer Stephen Jones <a href="https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/government-unveils-comprehensive-financial-advice">explained</a> the government’s changes were needed because so-called “fin-fluencers” were providing unregulated financial advice on social media platforms to Australians unable to pay an adviser. <h2>Helping people protect their interests</h2> There are three ways, supported by research, nudges can help Australians engage with their super. 1. Future self visualisation This involves getting young people to think about their <a href="https://www.halhershfield.com/considering-the-future-self">future selves</a> and visualise their life in retirement. This can help them to recognise the long-term benefits of getting actively involved with their super. Showing fund members how they might look when older by using an ageing filter software, for example, can make this visualisation more real for them and <a href="https://journals.sagepub.com/doi/full/10.1177/23794607231190607">enhance understanding of their future selves, leading to higher engagement</a>. 2. Simplification We all know financial products and superannuation can be complicated. The information and choices presented can lead to <a href="https://thedecisionlab.com/biases/choice-overload-bias">decision paralysis</a>, causing people to delay or opt out of making a decision. By simplifying the process, funds can motivate people to get more engaged with their super. To get people to make voluntary contributions, for example, it might be more effective for funds to recommend <a href="https://siepr.stanford.edu/news/how-simple-nudge-can-motivate-workers-save-retirement">a specific percentage of their salary</a> rather than offering several options. Deciding whether to boost contributions by an extra 3%, 4% or 5% can be overwhelming, especially for people with poor <a href="https://theconversation.com/are-you-financially-literate-here-are-7-signs-youre-on-the-right-track-202331">financial literacy</a>. 3. Language and framing The way options are framed and the language super funds use can significantly impact member engagement. Australians may be more likely to make higher voluntary contributions if they are asked how much they want <a href="https://www.bi.team/press-releases/the-small-nudges-that-could-make-young-people-142000-better-off-in-retirement/">to “invest” in their super </a> instead of how much they want to “contribute” or “add”. The word “invest” encourages people to think about future benefits, motivating them to make higher contributions. How options are labelled can also have an impact on <a href="https://www.bi.team/press-releases/the-small-nudges-that-could-make-young-people-142000-better-off-in-retirement/">member engagement</a> and decision making. For example, highlighting concrete benefits of different voluntary payments, such as “a 4% contribution keeps you above the poverty line”, and “a 10% contribution allows for a comfortable retirement according to Australian standards” can increase how much people are willing to contribute. <h2>Ethical use of nudges</h2> The <a href="https://www.superreview.com.au/news/superannuation/industry-body-backs-super-fund-nudges-though-parameters-need-be-set">Financial Services Council</a> backs the government on getting super funds to nudge members about contributions and investments but says there are limits. Parameters around nudging should be set […] to ensure that the language is appropriate and does not ultimately amount to defaulting. For example, letting a customer know that as they approach retirement, they need to make a decision about what retirement product they wish to utilise would be an acceptable nudge, while contacting a customer to let them know that they will be placed in a product when they retire, would not necessarily be acceptable. The council emphasises the importance of super funds recognising <a href="https://www.superreview.com.au/news/superannuation/industry-body-backs-super-fund-nudges-though-parameters-need-be-set">people’s autonomy</a> when delivering a “soft” or “hard” nudge. Soft nudges are gentle prompts and reminders designed to guide people to make good choices without pressuring them, such as sending an email reminder to review their investment options. Hard nudges are more direct in their guidance. These might include recommending specific investment options. Despite these differences, <a href="https://www.behaviourworksaustralia.org/blog/can-we-have-a-quiet-word-about-behavioural-science">ethical use of nudges</a> should encourage engagement while respecting people’s autonomy by making it easy for them to opt out. The use of nudges presents a valuable opportunity to increase superannuation fund members’ engagement. Whether through future self visualisation, simplification or language framing, ethical nudges can motivate members to take action, leading to greater confidence in navigating the retirement transition and achieving retirement goals.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/230404/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/fernanda-mata-1533222">Fernanda Mata</a>, Research Fellow, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a>; <a href="https://theconversation.com/profiles/breanna-wright-267597">Breanna Wright</a>, Research fellow, BehaviourWorks Australia, Monash Sustainable Development Institute, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a>, and <a href="https://theconversation.com/profiles/liam-smith-5152">Liam Smith</a>, Director, BehaviourWorks, Monash Sustainable Development Institute, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/super-funds-are-using-nudges-to-help-you-make-financial-decisions-how-do-they-work-230404">original article</a>. </div>

Money & Banking

REVIEW: Super-intelligent, dog-detecting robot lawn mower

I was recently invited to an onsite demonstration of a brand new line of lawn mowers that were pitched as being not just a lawn mower, but a furry-friend dodging, grass-grooming marvel of modern technology. According to the specs, the <a href="https://au.worx.com/vision-technology/" target="_blank" rel="noopener">WORX LANDROID® Vision</a> is the world’s first advanced AI, "unbox & mow" robot lawn mower. "No wire. No satellite. No beacons. No time between unboxing and mowing." Using a combination of HRD camera, the latest AI smarts and a deeply trained neural network to identify grass to mow and obstacles to avoid, it features the innovative "Cut-to-Edge" function, multi-zone management and adaptive auto-scheduling. Plus an optional LED headlight safe night-mowing (apparently, unlike conventional robots, Vision sees nocturnal animals and stays away from them). But the real test for me was always going to be: how would something like the Vision get along with my dog, Rosie? I was offered the chance to try out one of the mowers for a few weeks, and so I jumped at it. But let's talk about Rosie for a moment. Now, this little ball of fur thinks she's the queen of the backyard. She zooms around like a tiny tornado, and honestly I think she believes the grass is her personal chew toy. So, when I introduced the LANDROID into the mix, I was half expecting chaos and half hoping for a miracle. Lo and behold, this mower is not just a lawn whisperer; it's a puppy ninja. The WORX LANDROID has some sort of superpower in its sensors, allowing it to detect my pup's presence and skilfully manoeuvre around her. It was like watching a graceful dance between technology and canine curiosity. For the duration of the test, Rosie basically appointed herself as the official supervisor of lawn maintenance, proudly watching from a safe distance (and sometimes not so safe) as the LANDROID worked its magic. But let's not forget about the real star of the show: the lawn itself. The LANDROID doesn't just dodge around obstacles; it trims with precision, leaving my yard looking like a freshly coiffed celebrity. It's like having a personal stylist for my grass – one that never sleeps. And the best part? I get to sit back, relax and sip my lemonade while the LANDROID does all the heavy lifting (or should I say, mowing). It's like having a reliable little garden gnome, except this one runs on electricity and has impeccable dodging skills. So if you want a lawn mower that's not only efficient but also entertaining, look no further than the <a href="https://au.worx.com/vision-technology/" target="_blank" rel="noopener">WORX LANDROID Vision</a>. It's the perfect blend of technology, pet sensitivity and grass-grooming prowess. Plus, it's the only mower I know that can outmanoeuvre a puppy – and that is definitely something to bark about. Images: Alex Cracknell

Home & Garden

12 super simple ways to save some cash

Saving money is a lot easier said than done. Whether you’ve got a holiday you’re thinking about taking, or you just want to make day to day life a little less stressful, there is a range of strategies you can employ to put a couple of dimes together. Here are 12 tips to cut costs: 1. Don't buy luxury, sometimes the budget brands are just as good and save you heaps. 2. Read the junk mail and compare offers because you can get a better deal where you didn't think you could. 3. Cut unnecessary expenses and reduce, if possible, the necessary expenses as well. 4. Buy used goods, it's cheaper and you can haggle. 5. See if you can switch power companies. I'm aware of several people who are saving $250 a year. 6. Borrow books and movies from the library or movie store - it's free or low cost compared to buying new and it's fast. 7. Barter with family and friends, it's free and everyone wins. 8. Take advantage of specials, sales and deals including buying in bulk, it can save you more than you realise. 9. Walk, bike or car pool or use other public transport, it's good for the environment and saves you money. 10. Shop around for the best deal, it might be better elsewhere. 11. Follow insurance company advice: Don't smoke, do have alarms and do get multi policies - it protects you and saves cash. 12. Have a savings account with all the savings from this and don't touch it, you will be amazed at what you have saved in a short time. Written by John Murphy. Republished with permission of <a href="http://www.stuff.co.nz/" target="_blank" rel="noopener">Stuff.co.nz</a>. Image credits: Getty Images

Money & Banking

Heroic fan tackles deadly shooter at victory parade

Three people have been taken into custody after a deadly shooting at a Super Bowl victory parade, where one person has died. At least 21 people have suffered injuries, nine of which being children, at the parade in Kansas City, following the Kansas Chiefs victory over the San Francisco 49ers. As one of the shooters opened fire in the crowd, one heroic football fan was captured on video tackling the gunman to the ground. The video also shows panicked crowds fleeing the sounds of the gunfire, as police ran towards the commotion. Kansas City Police Chief Stacey Graves confirmed in a second update to media that one person had died after 22 people had been shot. “We have three persons detained and under investigation,” she said. “We are working to determine if one of the three is the one that was in that video where fans assisted police.” She added that “right now we do not have a motive, but we are asking those who may potentially have any kind of information, a witness or video, to contact police”. At an earlier briefing, Ms Graves said she was “angry at what happened today”. Kansas City Mayor Quinton Lucas said, “The celebration was marred by a shooting. This is absolutely a tragedy.” Witness Kade Collins, who attending the parade with his dad, described the ordeal to local news station Fox 4 KC. “We heard 10 to 12 gunshots, but we thought they were fireworks, so we didn’t really panic at first or get too worked up. But then everyone started screaming and took off running,” Mr Collins said. Mr Collins said his dad saw police tackle a suspect after the crowd saw the gunman. “When we were walking out, there was someone pointing and saying, ‘He’s right there, he’s right there’, and police ran to the guy the crowd was pointing at and tackled him and put him in handcuffs,” he said. “Everyone took off running and screaming.” The Kansas City Chiefs said in a statement that all players, coaches, staff and their families were “safe and accounted for”, while sharing their condolences for those who were impacted by the shooting. “We are truly saddened by the senseless act of violence that occurred outside of Union Station at the conclusion of today’s parade and rally,” the team said. "Our hearts go out to the victims, their families, and all of Kansas City ... We thank the local law enforcement officers and first responders who were on-scene to assist.” Image credits: Getty Images <p style="box-sizing: inherit; margin: 0px 0px 24px; padding: 0px; border: 0px; font-stretch: inherit; line-height: inherit; font-family: 'Helvetica Neue', HelveticaNeue, Helvetica, Arial, sans-serif; font-size-adjust: inherit; font-kerning: inherit; font-variant-alternates: inherit; font-variant-ligatures: inherit; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-variant-position: inherit; font-feature-settings: inherit; font-optical-sizing: inherit; font-variation-settings: inherit; font-size: 18px; vertical-align: baseline;">

Caring

“A beautiful soul”: Teenager killed in Aus Day boat crash identified

The teenager killed in a fatal boat crash on Australia Day has been identified, as her heartbroken family remember her as a “beautiful soul”. Darcy Davey-Sutherland was enjoying a day on the water when two tinnies collided near the Gray’s Point boat ramp in Sydney’s Sutherlandshire, where the 16-year-old was critically injured. Paramedics arrived on the scene and transported Darcy to St George’s Hospital, where she later died. The 16-year-old was wearing a lifejacket at the time of the crash, and it is believed onlookers found her face down in the water and performed CPR on the teenager until paramedics arrived. Her father, Michael Davey-Sutherland, said his daughter was "the beacon of light within our family" in both the UK and Australia. "She was about to embark on the most special part of life as she stepped into adulthood," Michael told <a href="https://www.9news.com.au/national/sydney-darcy-sutherland-killed-in-grays-point-boat-crash/794e7737-9970-4e41-80b0-4324c4d6db5c" target="_blank" rel="noopener">9News</a>. "Words cannot describe the pain we feel at the moment." Darcy, who was the eldest child and was very close to her two younger brothers, was also fondly remembered by her family and friends online. "I will miss you so much Darc, I feel like I've lost a part of me," one person said. "Will forever love you. You will forever be missed, my beautiful angel, I will never forget our time together," another said. "I pray for your family to find the strength to live with their forever broken heart, keeping your memory alive. Rest beautiful girl," a third added. A <a href="https://www.gofundme.com/f/darcy-sutherland">GoFundMe</a> page set up to help the Davey-Sutherland family has already seen more than $40,000 raised in 24 hours. Image credits: 9News / Facebook

News

Woolies boss grilled for scrapping Aus Day merch

Woolworths chief executive Brad Banducci has shared the reason why the retailer chose to drop Australia Day merchandise. The supermarket giant copped some <a href="https://www.oversixty.com.au/finance/money-banking/woolworths-under-fire-for-dropping-australia-day-merch" target="_blank" rel="noopener">backlash </a>after they announced that they would stop selling the merch, with even opposition leader Peter Dutton calling for a <a href="https://www.oversixty.com.au/news/news/peter-dutton-calls-for-woolworths-boycott" target="_blank" rel="noopener">boycott</a> for their decision. They have since issued a full-page advertisement insisting the supermarket giant is not anti-Australia Day, which Banducci was grilled for in his latest appearance on the Today show. “We aren’t trying to ‘cancel’ Australia Day, rather Woolworths is deeply proud of our place in providing the fresh food that brings Australians together every day,” Banducci wrote in the letter. “So you’re not anti Australia today as a company?” Today show host Karl Stefanovic asked in reference to the letter. “Karl, we are a very proud Australian company. We’ve been around for 100 years. "We have 178,000 hard working team members who are going to be in store doing the right thing for our customers on Australia Day, and we’re passionate about this country,” the Woolworths chief executive replied. “But you’re not anti Australia Day?” Stefanovic asked again. Banducci replied saying that the day “means different things to everyone” and that he supports Aussies to commemorate the day in whatever way they wish. He added that while customers won't be able to buy Australia Day merch at their stores, they will decorate their stores across the country in “green and gold” to commemorate the day. “You must have serious regrets about this?” Stefanovic grilled. “I think we could clearly have done a better job of explaining our decision, that’s why I’m here,” Banducci replied. “I do feel anxious about the impact that this is having on our team. They are proud, hard working Australians, and for them to be seen as anti-Australian or woke is fundamentally unfair.” He added that this decision was made 12 months ago when they found that there was “gradual decline” in demand for the merchandise. Images: Today

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“Say it to my face”: Novak Djokovic confronts Aus Open hecklers

Novak Djokovic has confronted rowdy Australian Open audience members, saying the “tough guy” in the crowd “crossed the line” with his unsolicited commentary. The Serbian tennis player was on his way to a victory against Aussie player Alexei Popyrin when he got caught in a verbal altercation with a spectator. The frustrated defending grand slam champion was heard during the match yelling, "Come here and say it to my face" to a fan seated behind him at Rod Laver Arena. "Come here! Come here!" Djokovic could be heard yelling in response to the mouthy spectator. During his post-match press conference after the match win, the world No.1 elaborated on the clash with the spectator, telling the media he won't tolerate such behaviour from disrespectful audience members "I mean, you don't want to know [what he said]. There were a lot of things that were being told to me on the court, particularly from that corner, and the same side the other corner. I was tolerating it for most of the match," Djokovic said. "At one point I had enough, and I asked him whether he wants to come down and tell it to my face. Unfortunately for him, he didn't have the courage to come down. "That's what I was asking him. If you have courage, if you're such a tough man, tough guy, come down and tell it to my face, and let's have a discussion about it.” "He was apologising from far away. That's all it is." "I'm not going to sit and say 'it's all good'. It's not good," he said. "Of course, it upsets me. I'm frustrated. I don't want to be experiencing that, but I have to accept it as it is.” "Sometimes I don't tolerate when somebody crosses the line. That's it." The veteran player declared he would continue to "confront" patrons who attempted to throw him off his game, saying, "I was feeling a lot of mixed emotions today on the court. Not a great atmosphere to play in to be honest for me." Image credits: Getty Images

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It’s not just about accumulating super. Australians need to learn how to spend their retirement savings

<a href="https://theconversation.com/profiles/marc-olynyk-1493791">Marc Olynyk</a>, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin University</a> Australia’s superannuation and retirement income system is complex and difficult to navigate. Retirees need to make decisions on numerous issues where they have less than full information and understanding, both financial and non-financial. They also require access to retirement products to help them manage and balance income needs against longevity risk. Recognising these issues, the government released a <a href="https://treasury.gov.au/consultation/c2023-441613">discussion paper</a> this month seeking views on three key issues: <ol> <li> helping super fund members navigate the retirement income system </li> <li> supporting superannuation funds to deliver better services </li> <li> making retirement income products more accessible. </li> </ol> Australia has one of the largest and most sophisticated pension systems in the world. Valued at more than <a href="https://www.apra.gov.au/quarterly-superannuation-statistics">A$3.5 trillion</a> as at September 2023, and is the <a href="https://www.thinkingaheadinstitute.org/research-papers/global-pension-assets-study-2023/">5th largest pension scheme</a> in terms of asset size. It is also the <a href="https://www.mercer.com/insights/investments/market-outlook-and-trends/mercer-cfa-global-pension-index/">5th most highly rated retirement income system</a> internationally behind the Netherlands, Iceland, Denmark and Israel. <h2>What is wrong with the super system?</h2> But while the super system ranks highly in terms of integrity and sustainability, the numbers are not as flattering when it comes to “adequacy”. Adequacy is the level of income available to retirees depending on their different circumstances. According to a recent <a href="https://www.mercer.com/insights/investments/market-outlook-and-trends/mercer-cfa-global-pension-index/">study</a>, Australia is ranked 20th out of 47 worldwide on the adequacy index. <a href="https://www.investmentmagazine.com.au/2023/02/purpose-of-super-law-to-herald-tax-reform/">Reform</a> in the pre-retirement phase of Australia’s retirement income scheme is ongoing and designed to support accumulating wealth for retirement. These ongoing reforms have been designed to make superannuation easier to understand and to reduce much of the decision making required. They’ve been needed because of an apparent lack of skills, interest and financial literacy among Australians. While the message that we need to save to be comfortable in retirement is getting through, the lack of information about how to manage these savings once we retire means many retirees are left to navigate the complex system as best they can. Given the complexity and volatility of Australia’s financial system, it’s hardly surprising many of the decisions made by retirees don’t produce the best financial results. For example, more than <a href="https://treasury.gov.au/consultation/c2023-441613">84%</a> of retirement savings are held in account-based pensions which, if not properly managed, can run out. This is despite government and community awareness that outliving your savings is a real possibility. About 50% of retirees currently withdraw at the minimum pension rate, which means many people experience a lower standard of living than what would normally be expected with the super they have accumulated. This can result in wealth not being used and instead being passed on to the next generation. <h2>Help is needed now because the retiree sector is booming</h2> Over the next decade there is going to be a big increase in the number of people retiring and transitioning from the accumulation phase of their super to the pension phase. It’s estimated <a href="https://treasury.gov.au/consultation/c2023-441613">2.5 million</a> Australians will move to the retirement phase in this period. Following the 2014 <a href="https://treasury.gov.au/publication/c2014-fsi-final-report">Financial System Inquiry</a>, the government introduced the <a href="http://www5.austlii.edu.au/au/legis/cth/consol_act/sia1993473/s52.html">Retirement Income Covenant</a> in 2022 to force super fund trustees to develop a strategy that would provide better retirement outcomes for their members. The strategy is based on retirees maximising their expected retirement income, managing expected risks to their retirement income and having flexible access to super funds during their retirement. A 2022-23 review conducted by <a href="https://asic.gov.au/regulatory-resources/find-a-document/reports/rep-766-implementation-of-the-retirement-income-covenant-findings-from-the-apra-and-asic-thematic-review/">Australian Prudential Regulation Authority and the Australian Securities and Investments Commission</a> found while trustees were providing more help to retirees, overall there was a lack of progress and urgency among trustees to improve retirement outcomes. <h2>How the system could be improved</h2> Several proposals have been put forward to improve the experiences and decision-making of retirees. These have included: <ul> <li> improved support from and education by superannuation fund trustees </li> <li> changing how people view their super savings from an accumulation of wealth to a system that enables drawdown of retirement savings over time to fund expenses. </li> <li> providing an automatic rollover of retirement savings into an income-stream instead of allowing a lump sum withdrawal on retirement </li> <li> expanding existing income products (that are starting to be offered by several financial institutions) which combine providing investment choice with a pension for life </li> <li> setting up a MyRetire product that would run parallel to <a href="https://treasury.gov.au/programs-and-initiatives-superannuation/mysuper">MySuper</a> and provide a simple and cost-effective retirement income system for less engaged members. MySuper only applies to the accumulation phase. Once a member starts an income stream in retirement, their MySuper account ceases </li> <li> improving access to financial planning advice which is shown to play a significant role in preparing Australians for retirement. </li> </ul> The government, superannuation industry and the community all have a greater role to play in improving the financial outcomes and experiences of retirees. With Australia’s ageing population, the need to better support retirees to achieve a dignified retirement is becoming more urgent. All Australians expect and deserve a financially secure retirement.<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/219217/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/marc-olynyk-1493791">Marc Olynyk</a>, Director of Financial Planning, Deakin Business School, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin 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/its-not-just-about-accumulating-super-australians-need-to-learn-how-to-spend-their-retirement-savings-219217">original article</a>.

Retirement Income

Not all beer and pokies: what Australians did with their super when COVID struck

<a href="https://theconversation.com/profiles/nathan-wang-ly-1380895">Nathan Wang-Ly</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> and <a href="https://theconversation.com/profiles/ben-newell-46">Ben Newell</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> What happens when people withdraw their retirement savings early? We’ve just found out. During the first year of COVID Australians who faced a 20% decline in their working hours (or turnover for sole traders) or were made unemployed or were on benefits were permitted to take out up to <a href="https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawing-and-using-your-super/COVID-19-early-release-of-super-(closed-31-December-2020)/">A$10,000</a> of their super between April and June 2020, and a further $10,000 between July and December. Five million took up the offer. They withdrew <a href="https://www.apra.gov.au/covid-19-early-release-scheme-issue-36">$36 billion</a>. Most of those surveyed by the Institute of Family Studies said they used the money to cover <a href="https://aifs.gov.au/sites/default/files/publication-documents/2108_6_fias_superannuation_0.pdf">immediate expenses</a>. But definitions of “immediate” can vary. Real time transaction card data appeared to show early withdrawers boosted their spending by an average of <a href="https://www.illion.com.au/buy-now-pay-later-winner-of-stimulus/">$3,000</a> in the fortnight after they got the money. <a href="https://www.stptax.com/emergency-super-withdrawal-spent-on-pokies-beer-and-uber-eats/">One interpretation</a> said they spent the money on “beer, wine, pokies, and takeaway food, rather than mortgages, bills, car debts, and clothes”. In order to get a more complete picture, we obtained access to millions of anonymised transaction records of customers of Australia’s largest bank, the <a href="https://www.sciencedirect.com/science/article/pii/S0313592622001060?via%3Dihub#bfn3">Commonwealth Bank</a>. The data included 1.54 million deposits likely to have been money withdrawn through the scheme including 1.04 million we are fairly confident did. <h2>Who dipped into super?</h2> The data provided by the bank allows us to compare circumstances of withdrawers and non-withdrawers including their age, time with the bank, and banking behaviour before COVID. We find withdrawers tended to be younger and in poorer financial circumstances than non-withdrawers before the pandemic. Six in ten of the withdrawers were under the age of 35, a finding consistent with data reported by the <a href="https://www.abc.net.au/news/2020-05-25/coronavirus-early-access-superannuation-young-people/12282546">Australian Taxation Office</a>. Withdrawers tended to earn less than non-withdrawers, even non-withdrawers of the same age. Only 17% of withdrawers for whom we could identify an income earned more than $60,000 compared with 26% of non-withdrawers. And withdrawers had lower median bank balances ($618 versus $986). For those with credit cards and home loans, withdrawers were about twice as likely to be behind on repayments as non-withdrawers (9.7% versus 5.8% for credit cards, and 8.2% versus 3.4% for home loans). These characteristics suggest that, despite concerns of the scheme being exploited due to the application process <a href="https://www.abc.net.au/news/2020-09-03/-are-people-being-allowed-to-access-their-super-without-scrutiny/12618002">not requiring any documentation</a>, most of those using the scheme genuinely needed the money. <h2>Where did the money go?</h2> Compared to non-withdrawers, those who withdrew increased their spending (on both essential and discretionary items), paid back high-interest debts, boosted their savings, and became less likely to miss debt payments. Withdrawers spent an average of $331 more per month on debit cards in the three months after withdrawal, and $126 per month in the following three months. They spent an extra $117 per month on credit cards during the first three months, which shrank to an extra $13 per month in the following three months. The average withdrawer spent 7% more per month on groceries than the average age and income matched non-withdrawer, 12% more on utilities such as gas and electricity, 16% more on discretionary shopping, and 20% more on “entertainment,” a Commonwealth Bank category that includes gambling. <h2>Less debt, less falling behind</h2> In the three months that followed withdrawing, withdrawers also averaged $437 less credit card debt and $431 less personal loan debt than age and income matched non-withdrawers, differences that shrank to $301 and $351 in the following three months. They also became less likely to fall behind on credit card and personal loan payments, a difference that vanished after three months. Our interpretation is that the scheme achieved its intended purpose: it provided many Australians in need with a financial lifeline and helped buoy them during uncertain and turbulent times. <h2>Lessons learned</h2> At the same time, our <a href="https://www.sciencedirect.com/science/article/pii/S0313592622001060?via%3Dihub#bfn3">findings</a> identify areas of concern. The fact that most withdrawals were for the permitted maximum of $10,000 highlights the need to carefully consider the withdrawal limit. While these sums might simply reflect the true amount of money individuals needed to sustain themselves, it might be that many withdrawers were unsure of how much to <a href="https://cepar.edu.au/sites/default/files/Determinants%20of%20Early%20Access%20to%20Retirement%20Savings_Lessons%20from%20the%20COVID19%20Pandemic_BatemanDobrescuLiuNewellThorp_July21.pdf">withdraw</a> – not knowing how long the pandemic would continue. Another consideration is how to best support withdrawers after they have taken out the money. More than half were under the age of 35, and might find themselves with a good deal less super than they would have in retirement. The government has already introduced <a href="https://www.ato.gov.au/super/apra-regulated-funds/in-detail/apra-resources/re-contribution-of-covid-19-early-release-super-amounts/">tax concessions</a> for withdrawers who contribute funds back into their retirement savings accounts. Super funds might also be able to help, by sending targeted messages to those who have withdrawn.<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/190911/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/nathan-wang-ly-1380895">Nathan Wang-Ly</a>, PhD Student, School of Psychology, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> and <a href="https://theconversation.com/profiles/ben-newell-46">Ben Newell</a>, Professor of Cognitive Psychology, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW 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/not-all-beer-and-pokies-what-australians-did-with-their-super-when-covid-struck-190911">original article</a>.

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It’s not just about accumulating super. Australians need to learn how to spend their retirement savings

Not all beer and pokies: what Australians did with their super when COVID struck

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