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Qantas announces major price hike

Qantas customers have been warned that they will see a significant increase in price to the airline’s domestic club lounges from next month. For the first time in seven years, the airline will charge Qantas Club membership holders 17 per cent more to access their lounges, with price changes set to be made from April 18. The increase coincides with Qantas' plans to renovate 24 of their domestic lounges over the next year, with the carrier spending an estimated $100 million on renovations. This means that annual fees for new members will increase from $699 to $828, including the $129 joining fee. For current members looking to renew, their annual fees will rise from $540 to $629. “This is the first time the Qantas Club membership fees have increased in seven years and will help cover cost increases passed on from a range of suppliers over that time. This follows a reduction in the membership fees for several years during the pandemic,” a spokesperson told news.com.au. They added that these changes will not affect Qantas Frequent Flyers members who will continue to receive complimentary access to the Club through Points Club Plus or their Gold, Platinum or Platinum One status. Members can also avoid the price hike if they renew their membership before April 18. Image: Getty

Money & Banking

Shoppers lash out at Aldi for “ridiculous” price hikes

A group of Aldi shoppers have lashed out at the supermarket chain after its series of "ridiculous" price hikes. Aldi, which consistently ranks as Australia's cheapest major supermarket, received some criticism this week after the store's popular skinless salmon fillets was hit with a $4 price increase seemingly overnight. “So explain to me, Aldi Australia, how do you justify a 28.5 per cent overnight increase on fresh salmon?” one outraged customer wrote on the Aldi Australia Facebook page. “This is outrageous. Last week, it was $13.99 for four pieces, this week $17.99. Guess where it stayed? On your shelf, NOT in my trolley.” The post triggered a wave of fury, with many threatening to abandon the German retailer and shop at competitor supermarkets. “Everything is so expensive at Aldi now might as well shop at Coles and Woolies,” one shopper wrote. “Well why did a can of baked beans price rise by nearly 50% and the same with small tins of tuna?? Ripping us off — not happy with the excessive price rises!! I think it my be time to shop elsewhere,” fumed a second. “Not impressed by Aldis price increases, a big frozen box of lasagne was $8.99 now $11.99, cheese was $8.99 now $11.99, whisky $34.99 now $36.99, cooking bacon $5.99 now $6.99. I can justify a small increase, but $3 … time to look around,” commented a third. The supermarket chain has responded to the criticism, acknowledging the price hikes, while insisting that they are committed to providing Aussies with great value products. “Aldi’s entire business model is oriented around saving customers money to ensure that we continue to lead as Australia’s lowest-price supermarket," an Aldi spokesperson said. "We always aim to cut unnecessary costs and pass these savings directly onto customers. “We know that the price of essential goods has never been more important to Australians, so we remain absolutely committed to delivering the best value for our customers while also supporting our supplier partners by maintaining fair pricing at all times," they concluded. Last month, Aldi ranked first as Australia’s favourite supermarket. It is the only brand to rank five stars for overall satisfaction, value for money, freshness of produce, quality of private label products and availability of deals/specials, according to the Canstar Blue survey for its annual Supermarket Satisfaction Ratings. Image: Getty

Money & Banking

Couple’s hiking trip thrown into jeopardy days before take off

When US-based couple Neil Lapetina and Denise Cordero spent $20,000 to explore the world - and one of its most unique locations - they had dreams of a once-in-a-lifetime hike through Lord Howe Island’s stunning scenery. But days before their departure, their excitement turned to horror when the pair learned that a large number of eco-destinations had been suddenly closed off - up to 75 per cent of them. The reason? The Lord Howe Island Board [LHIB] were working to contain an airborne fungus with potentially devastating consequences for the World Heritage-listed destination, and the 241 species of Indigenous plants to which it is home - 47 per cent of which can only be found there. Additionally, those can primarily be found along the island’s numerous hiking trails in the Permanent Park Preserve [PPP], prompting the mass closures for three-quarters of its total area. However, this meant that Neil and Denise - as well as any other traveller with tickets to visit - were in some trouble, as compensation wasn’t being offered to them. “We were told that they knew about this on February 3,” Neil said, “by their own admission, and if they knew about it [then]), then there’s a chance we might have not have paid our non-refundable balance due. “First and foremost, myrtle rust has hit the island hard — our first concern is with the island. We’re confused: if it’s as bad as they say it is, then don’t have people come out.” Myrtle rust has the potential to destroy entire Australian ecosystems, and spreads at rapid pace as its spores can be carried by wind, animals, insects, and humans alike, so it’s no small wonder the LHIB took immediate action to combat the threat. Fellow traveller Ian Freestone - who has visited the island numerous times before - had plans to celebrate his birthday there with 30 guests. After forking out a staggering $60,000 for the trip, they were informed that the trails would not be available to them, with closures to the PPP. Ian told 7News the whole thing was like “going to Luna Park but not [being] allowed on all the rides.” And for those who had been left on the island after the LHIB’s “effective immediately, the PPP is temporarily closed” announcement, the situation was not much better, with some claiming they - and their holiday funds - had been “left in limbo”. And while the island’s initial closure had been sudden - and crucial - it was only 10 days before the LHIB announced that the PPP would be partially reopening. “After extensive monitoring, no new sites of myrtle rust infestation have been located on the island. Importantly, as of yesterday (March 23), there were no active spores at known sites,” they said. But for some, this wasn’t enough, with many noting that they just would have appreciated “a bit of notice”, especially after spending so much to visit in the first place. Neil - and assumedly Denise - were of a similar opinion. Although they value the island’s flora, they pleaded for some compassion from the LHIB in the wake of their snap decision, and its consequences for themselves and the other impacted travellers. “We’re putting $20,000, between the two couples, into this. I’ve worked hard all my life for this, for money - this doesn’t grow on trees,” he said. “We’re nature lovers ... we get it. But communication has been lacking. To hear about this first through word-of-mouth, that’s not the way to do it. “Please, show your visitors some respect.” Images: Facebook

Travel Trouble

Type 1 diabetes sufferers in for price hike

Those suffering from Type 1 diabetes will be hit with a steep hike in prescription costs when a life-changing insulin is removed from the Pharmaceutical Benefits Scheme (PBS) in April 2023. Local Member for Fairfax Ted O’Brien and Shadow Minister for Health and Aged Care Senator Anne Ruston have revealed 15,000 Australian families will be affected when the drug Fiasp becomes less accessible from April 1. Fiasp is a mealtime insulin that is designed to improve blood sugar control in diabetes sufferers at a faster rate than alternative diabetes medications. Mr O’Brien said he was made aware of the issue by the mother of a young high school student on the Sunshine Coast “whose quality of life will now be at risk from the government’s decision”. “Freya Goldston is a 14-year-old, high-performing student in my electorate who will tell anybody about the remarkable impact that this medicine has had on her life,” Mr O’Brien said. “Freya’s family will have her prescription go from around $7 to more than $280 at a time when households are already under serious financial pressure. “The Labor Government needs to provide an immediate solution to support the 15,000 families who will otherwise need to start making decisions about what household expenses they can cut back on to afford this life-changing medicine.” Mr O’Brien shared the former Coalition Government listed Fiasp on the PBS in 2019 to ensure accessible prices to the fast-acting insulin for diabetes patients. “But now, without any consultation or support for the patients impacted, the government’s decision to suddenly remove Fiasp from the PBS is sending the price soaring,” he said. A spokesperson for Health Minister Mark Butler said his office was alerted of the drug manufacturer Novo Nordisk removing Fiasp from the PBS on February 22 2023. “The minister’s office is now working with the department and Novo Nordisk,” the spokesperson said. “We understand the decision by Novo Nordisk to remove Fiasp from the PBS has been concerning for many Australians living with diabetes and their families.” The spokesperson did not comment on whether there was consultation or support for impacted diabetics when Mr Butler was approached about the removal of Fiasp. Nearly 28,000 people have signed a petition online created by Belinda Moore called “Save Fiasp from falling off the PBS”. “The Australian diabetes community will keep advocating until we witness no evidence of inequitable access to diabetes services, clinicians, technology and therapies.” Ms Ruston also said he was disappointed in the government's decision as Australians are already suffering from a cost-of-living crisis, and the removal of Fiasp from the PBS will affect thousands of Australians. “The government must urgently guarantee that they will provide sufficient support to ensure the viability of affordable diabetes medications in Australia,” Ms Ruston said. Image credit: Shutterstock

Caring

“I'm really upset about the schnitty”: Karl tees off on outrageous price hike

Karl Stefanovic has labelled Sydney as “nuts” after hearing a pub is charging $46.70 for a basic chicken schnitzel, chips and salad. Stefanovic was reacting to news from a reporter at Five Dock Bowling Club. “That's why Sydney has lost the plot. It's not even good there... I'm really upset about the schnitty. How many bread crumbs?,” he said. “That's why we stay home and make our own food, parmies, schnitties - $40, that's crazy.” The reporter, Luscie McLead, said the schnitzel without the sides costs $28.90. If you’re after chips, you need to pay an extra $6.90, and adding a salad would cost you an additional $8.90. The bowling club also charges an extra 10 per cent surcharge on weekends and public holidays. McLead said buying all the ingredients from a supermarket to make the same dinner for a family costs almost the same as just one meal from the bowling club. “To put it into perspective, I went to Coles, bought the ingredients, $56. Karl, you could make it home,” she said. Karl agreed, saying, “Just whack it in the air fryer and Bob's your uncle.” A venue just down the road from the bowling club charges $24 for a chicken schnitzel, which includes two sides. Five Dock’s Bowling Club defended its high prices, saying it isn’t a bowling club, it’s a “private restaurant.” “The only thought behind keeping the building name as Five Dock Bowling Club was as a reference for people to know its location and whereabouts, as the site first opened in 1933, not to denote the offering,” owner Pierre Moio told <a href="https://www.dailytelegraph.com.au/entertainment/sydney-confidential/restaurant-at-five-dock-bowling-club-surprises-locals-by-charging-35-for-schnitzel-and-chips/news-story/a0ed949ab1f851a7440866f0f870439c" target="_blank" rel="noopener">Daily Telegraph</a>. “We are not a registered club. We don't have poker machines, we are not subsidised by gambling. We are a private restaurant. “There are enough places offering $15 meals nearby. We made a conscious choice to be different and maybe that attracts a new market.” Recent data from the Consumer Price Index found Australians were paying 9.4 per cent more for food and non-alcoholic in November 2022 when compared to the same time in 2021. Image credit: Getty

Money & Banking

15 hiking tips for beginners

Always be prepared. It’s the motto you should live by if you’re heading off on a trek. To ensure this never happens to you, here are the essential tips that all beginner hikers need to remember. 1. It is always safest to hike with at least two other people. 2. Each hiker should carry a map and compass, and know how to use them. 3. You should tell someone where you are going and an estimated return time. 4. Never “wing it” – study a map beforehand so you know the terrain and routes. 5. Be prepared for sudden changes in weather by wearing layers and carrying wet weather gear. 6. Pace yourself when you first get on the trail. Choose a route that is suitable for the skill and fitness level of all group members – you don’t want to run out of steam half way through the trek. 7. Pack an emergency kit, including a basic first aid supplies, matches, emergency shelter, as well as a whistle or signal mirror in case you need to summon for help. 8. Never hike in brand new shoes. Wear comfortable socks and shoes that are suitable for the terrain. 9. If you are hiking when lightning strikes, never walk above the tree line. 10. Bring a light source, such as a flashlight or a headlight. 11. Don’t dispose of your trash in the wilderness. Bring it back with you. 12. Check the weather report before heading out and adjust accordingly. 13. Wear sunscreen and insect repellent. 14. Keep your backpack as light as possible. 15. Always bring some supplies of water and food, even if it’s meant to be a short trip. Image: Getty

Domestic Travel

Udderly ridiculous: Price of milk next in line for huge hike

With the cost of living soaring, we can now add home-brand milk to the long list of products being hit by significant price hikes. In yet another hit to household budgets, Coles and Woolies will start charging more for the grocery staple, in a move that's being chalked up to rising prices at the farm gate – which in turn are being passed on to consumers. Both supermarkets will charge $1.60 for a litre of homebranded milk, $3.10 for two litres and $4.50 for a family-sized three litre. That's a steep increase of 25c on the one litre, 50c for two litres and a whopping 60c jump on three-litre bottles. Coles will also increase the cost of its long-life UHT milk from $1.35 to $1.60. “The farmgate prices paid to dairy farmers have risen significantly this season, and as a result we’re paying our own brand suppliers more for milk,” a spokesperson for Woolworths said. Coles chief commercial officer Leah Weckert said the company was aware of increased cost of living pressures and remained committed to delivering value to its customers. "Raising prices is never something we do lightly, however, the increased supply chain costs we are seeing, including higher payments to dairy farmers and processors, have necessitated these increases on Coles brand milk products,” she said. Coles started paying its dairy farmers more for their product from the beginning of this month and has also agreed to higher costs asked by processors who source the milk themselves to supply the company. Image: Getty

Money & Banking

Price hike hits Bunnings institution for first time in 15 years

The cost of living crisis is continuing to hit Australians where it hurts - this time targeting a sacred weekend institution. The beloved Bunnings sausage sizzle has been hit with a cost increase for the first time in 15 years, after what the store chain said was extensive feedback from community groups. The humble sausage sizzles have been a staple of a weekend trip to Bunnings for more than 25 years, with not-for-profits, community groups, and charities all using them as an opportunity to fundraise. However, as the cost of groceries continues to rise, these groups say there is a significant downturn in their profits after the barbecue gets turned off. After forking out the extravagant cost of sausages, bread, onions and sauces, these community groups are left struggling to come out on top. And so, from Saturday July 23rd, people lining up for a sausage will have to hand over $3.50 instead of the previous price of $2.50. Onions will still be a cost-free option, and drinks will stay steady at $1.50. All the money raised goes straight to the group running the sizzle, so it's at least for a good cause. "It's been an incredibly difficult couple of years with the lack of fundraising opportunities and the pressure on community group services and support continues to be a growing need in our wider community," Bunnings Group managing director Mike Schneider said. "The sausage sizzle will always be a community led initiative and we have listened and responded in a way we hope allows groups to maximise fundraising efforts, whilst still giving customers a simple way to support their local community." Image credits: Getty Images

Money & Banking

ALDI announces price hike

ALDI supermarket announced up to 20-50 per cent price hike on almost 400 of their products. The German retailer announced that hundreds of products including meat, sausages and butter would be “significantly more expensive”. An ALDI Germany spokesman said the rising costs are due to the Russia and Ukraine war which have caused manufacturing costs to go up. But what does this mean for Australia? An ALDI Australia spokesperson said they will commit to ensuring prices are reasonable if there were a hike. “While we can’t speak to the specific challenges in our European operations, we can confirm that even if prices on products do increase locally we are committed to keeping them as the lowest in the market for our Australian customers,” the spokesperson said. “Every aspect of Aldi in Australia was built to withstand inflationary pressure, from our smaller format stores to our carefully curated private label range of groceries. “It is our unwavering priority to continue to have the lowest prices on high-quality products, no matter what happens in the world around us.” Image: Shutterstock

Money & Banking

Calls mount for health insurers to suspend April price hikes

Calls have mounted for private health insurers to cancel premium increases scheduled for April 1 amidst economic pressure from the new coronavirus pandemic. Consumer advocate CHOICE said health funds should relieve customers from more financial burden by freezing the increases. The demand came as non-urgent elective surgeries such as hip replacements and cataract surgery were postponed indefinitely by the government. “If people can’t use the normal services that would allow them to claim on their private health insurance, then insurers’ costs will be going down,” said CHOICE CEO Alan Kirkland. He said health fund premiums have gone up by 61 per cent over the past decade. “Their justification is that the amount they pay out to cover your treatment is going up. But that doesn’t hold up this year. We don’t think people should be paying full price when they won't be able to access a full service,” he said. “There is no way they can justify increasing premiums in this context. Health funds should scrap their April 1 premium increases.” The first fund in Australia to commit to axe premium rises is Perth-based HBF, which was due to implement a 1.98 per cent increase. HBF’s CEO John Van Der Wielen said many of its one million members were affected by “extraordinary” financial circumstances. “Now more than ever access to the best healthcare is more important than ever,” he said. “We want to do everything we can to keep health insurance affordable for our members.” Other major health funds are yet to follow suit in cancelling the premium increases. The average increase across the industry this year is <a href="https://www1.health.gov.au/internet/main/publishing.nsf/content/privatehealth-average-premium-round">2.92 per cent</a>. Medibank and AHM announced a support package of more than $50 million on Thursday, allowing customers to suspend their policy or access reliefs on their premiums. Members would also receive benefits for coronavirus-related chest, heart, lung and kidney hospital admissions. Bupa also announced an assistance package of more than $50 million to help customers experiencing financial hardship due to the pandemic. The insurer also confirmed all members with any hospital policy would be covered for COVID-19 related claims. GMHBA and HCF have also introduced financial hardship measures, encouraging customers who are struggling to pay premiums to reach out to discuss their options.

Retirement Income

Price hike set to hit Coles and Woolies: How you'll be affected

Supermarket shoppers at Coles and Woolworths are likely to feel the pinch when it comes to their groceries as both supermarkets have announced their store prices have risen over the past quarter. Unfortunately, Coles shoppers were hit the worst and faced a 1.4 per cent rise over the September quarter, which is a hike that it says can’t be avoided due to the impacts of the drought. “The long-term effects of the drought is having an impact which has contributed to price inflation for the quarter,” the supermarket said. Woolworths shoppers faced an increase of 0.3 per cent, with meat, deli and baked goods “directly impacted” by the drought. Retail expert Professor Gary Mortimer at Queensland University of Technology explained to <a rel="noopener" href="https://au.news.yahoo.com/coles-woolworths-prices-rise-due-drought-shoppers-change-015241516.html" target="_blank">Yahoo News Australia </a>that the hike is inevitable. “Australian consumers living on the eastern sea board don’t realise how drought effects them,” he said. “We forget all of our grain, bread, meat, beef, fresh produce and even eggs [come from Australian farmers] “While there’s always products coming through, with an extensive period of drought this is where we’re seeing a decline in crops and fresh produce and in quality. Therefore we’re now starting to see these price increases seep through the markets.” Professor Mortimer said that shoppers might be forced to change their approach to the weekly shop, including forgoing meat or switching from fresh vegetables to frozen. “You can change the types of products you buy [to tackle inflation]. There’s already an increased proportion people turning to vegetarian and veganism due to economic issues,” he said. “Wear the cost increase or change your behaviour.”

Money & Banking

Second price hike this year: Woolies and ALDI increase the cost of milk

ALDI and Woolworths are increasing the retail price of their home brand milk by 10 cents. ALDI raised its price by 10 cents per litre on Wednesday, while Woolworths is set to up the cost of its milk starting today. One-litre milk at the stores will now cost $1.29, while two-litre milk has been brought up to $2.39 and three-litre to $3.59. This is the second price increase for the two supermarkets this year – in March ALDI and Woolworths abolished the $1 per litre pricing on milk along with Coles. Coles has not indicated if it will match the new price hike. Both retailers attributed the rise to the hikes in farm gate milk prices. A Woolworths spokesperson told <a rel="noopener" href="https://au.news.yahoo.com/woolworths-increase-homebrand-milk-10-cents-215352589.html" target="_blank">Yahoo! News</a> that the prices were adjusted following “ongoing whole-of-market cost pressures”. “Since February we have seen farm gate prices increase significantly and they are forecast to continue rising throughout the year,” said the spokesperson. “As a result of these farm gate price movements, we have been paying our suppliers even more for milk and other dairy products across the category over recent months.” ALDI told the <a rel="noopener" href="https://www.abc.net.au/news/2019-07-25/dairy-industry-welcomes-aldi-milk-price-rise/11346188" target="_blank">ABC</a> that the move was a “direct result of the recent increase in the farm gate milk prices agreed between our milk suppliers and the dairy farmers”. Graham Forbes, chairman of industry advocacy group Dairy Connect, said while the announcement is welcome, more could be done to ensure a sustainable national supply chain and avoid foreign milk imports. “I think a lot of people would like to see [the rises] continue and get up around $1.50 a litre where all sectors of the industry could survive and be sustainable,” Forbes told the <a rel="noopener" href="https://www.abc.net.au/news/2019-07-25/dairy-industry-welcomes-aldi-milk-price-rise/11346188" target="_blank">ABC</a>. “We need all three – the farmers, the retailers, and the processors – to be profitable, and we certainly need more movement to allow that to happen properly.”

Money & Banking

The best places to hike in Switzerland

Switzerland is known for snow-capped mountains, glassy lakes, waterfalls, verdant valleys and moors. In between, it all is a dense network of hiking trails – ripe for exploration. More than 1500 Swiss volunteers have ensured that each of the trails is clearly marked with signposts and way-markers and the tracks are pedantically maintained. According to the Swiss Tourism board, about 50 per cent of Australian visitors to Switzerland will embark on at least one hike during their stay. Most people choose to DIY – because it’s so easy. So where should you start? The Via Alpina is the classic among the long-distance hikes in Switzerland. This trail crosses 14 of the most beautiful alpine passes. It meanders through the northern Alps of Switzerland (Vaduz – Montreux, via six cantons). On this trail, you will experience the picture-postcard scenery and fine Swiss hospitality. The Alpine Passes Trail is challenging and wild. It connects Chur with Lake Geneva via some of the most stunning passes in the Graubünden and Valais Alps. This trail is ideal for long-distance hikers. Expect views of 4000m peaks and classic mountain huts. The Jura Crest Trail is the oldest long-distance trail in Switzerland. Relatively unknown to non-Swiss hikers, this gentle, easy graded-trail is a local favourite. The Jura Crest hike connects Zurich and Geneva via the Jura mountains. You’ll walk through an untouched remote landscape with glorious views. Written by Alison Godfrey. Republished with permission of <a href="https://www.mydiscoveries.com.au/stories/switzerland-hikes/">MyDiscoveries</a>.

Travel Tips

The budget’s dirty secret is the hikes in tax rates you’re not meant to know about

As I mentioned a few days ago, Treasurer Josh Frydenberg and Prime Minister Scott Morrison recycled <a href="https://theconversation.com/a-simpler-tax-system-should-spark-joy-sadly-the-one-in-this-budget-doesnt-115370">three pretty big tax ideas</a> in the 2019 budget, each one originally from the 2018 budget but supercharged, and in one case doubled. The ideas were: <ul> <li> eventually eliminating the 37% bracket to make the tax system flatter; </li> <li> upsizing the Low and Middle Income Tax Offset to A$1080; and </li> <li> increasing the value of business investments that may be written off. </li> </ul> Today I’ll deal with the second: the Low and Middle Income Tax Offset, also known as the LMITO or <a href="https://theconversation.com/your-income-tax-questions-answered-in-three-easy-charts-labor-and-coalition-proposals-side-by-side-115450">lamington</a>. In last year’s budget it was to be worth up to $530 per person, but this year the government intends to more than double that to <a href="https://budget.gov.au/2019-20/content/tax.htm">$1,080</a>. And they’d do so retrospectively, so that by the time people put in their 2019 tax returns, many will get a tax cut more than <a href="https://theconversation.com/its-the-budget-cash-splash-that-reaches-back-in-time-114188">twice as big</a> as originally expected. (As it happens, the operative word is “intends”. In budget week Morrison said the Tax Office would be able to make the changes “<a href="https://thenewdaily.com.au/news/election-2019/2019/04/17/tax-cuts-explained/">administratively</a>” without the need for legislation. He didn’t have time to introduce the leglislation and Labor would broadly support it. Last week in its official pre-election overview of the government’s finances, the public service <a href="https://theconversation.com/view-from-the-hill-those-tax-cuts-should-follow-proper-process-officials-tell-government-115665">said no</a>. It would need “the relevant legislation to be passed before the increase to the Low and Middle Income Tax Offset can be provided for the 2018-19 financial year”.) The idea of the lamington But let’s examine the idea of the lamington anyway because it does have bipartisan support and will become law and part of the tax scales. On one hand, it will deliver a welcome boost to taxpayers on middle and low (but not the lowest) incomes. On the other hand, it will push up a key marginal tax rate and kill incentives in a way the Treasurer hasn’t yet acknowledged. The offset is a gift of $530 (soon to be $1080) slipped into the tax returns of everyone who earns between $48,000 and $90,000. People earning more than $90,000 will get less of the offset as their income climbs, up to an income of $125,000 when it the offset will vanish. Low earners will get $200 (soon to be $255), climbing to the maximum of $530 ($1080) as their income climbs from $37,000 to $48,000. People with an income too low to pay tax won’t have any tax to offset, and so will get nothing. Described in dollar terms as I just have, it’s easy to understand. You can work out the tax cut you’ll get, and the Coaltion has helpfully prepared <a href="https://budget.gov.au/2019-20/content/tax.htm">tables to let you see</a>. But it is possible to describe the changes in another way, not in dollar terms, but as a new set of marginal rates. And this is where they get interesting, and unattractive. As a longer-term goal, the Coalition says it wants most taxpayers to pay the same unchanging marginal rate of 30% for all incomes between $45,000 and $200,000. It believes that high marginal rates and frequently changing marginal rates sap incentive. Frydenberg says the lower, flatter scale would incentivise “people to stay in work, to work longer, to work more”. So you would think he wouldn’t want to make it bumpy, or lift the marginal rate, which is exactly what his LMITO does. What will the lamington cost us? Relying on data for the Australian tax system, I find that a 3 percentage point increase in the marginal tax rate results in an average reduction in taxable incomes of around 0.6%. For someone earning $125,000 per year, that amounts to a reduction in taxable income of $750 per year, by any of the means described above or others. If we assume the average affected person earns in the middle of the relevant range, that implies an aggregate reduction in taxable income of almost half a billion dollars a year from the 3 percentage point tax increase. That means around $300 million less in consumption and saving and around $200 million less in income tax revenue, all because of LMITO. That half a billion per year is the real, measurable, and unavoidable cost of targeting the Coalition’s tax break. When economists talk about “distortions” or “deadweight losses” created by tax increases, that’s what they mean. It is the cost of fairness. Whether that cost is worth paying is an open question. The government has evidently decided that it is. And now we can decide at the ballot box, ideally armed with proper information. But it is of concern that the presentation of the policy – while politically attractive – obscures the genuine increases in marginal tax rates the Coalition’s changes will bring about, and thereby their real economic costs. Eliminating most offsets and concessions, as <a href="http://taxreview.treasury.gov.au/content/downloads/final_report_part_1/07_AFTS_final_report_chapter_04.pdf">recommended by the Henry Tax Review in 2010</a>, would do the tax system good. And it do all of us good by making it easier to see what we are being asked to vote for come election time. Written by Steven Hamilton. Republished with permission from <a href="https://theconversation.com/the-budgets-dirty-secret-is-the-hikes-in-tax-rates-youre-not-meant-to-know-about-115457">The Conversation.</a>

Money & Banking

Love the outdoors? The one hike every Aussie needs to do

If you’re a serious and well-prepared walker, trekking around the Overland Track in Tasmania is for you. The 65-kilometre-long track offers amazing views of Tasmania’s Cradle Mountain and Barn Bluff. However, this walk is not for the faint of heart (or faint of breath). Undergoing this track can be a dangerous journey for those who are unprepared. It’s ideal for those who are trekking in groups of three or more in case something goes wrong. As the weather conditions in Tasmania can change at the drop of a hat, it’s important that you’re prepared for every weather condition possible, whether it’s snow, wind or rain. There are huts you’re able to stay in along the track, and logbooks are located inside. If you go missing, these logbooks can be the only way to let the people who are looking for you know that you were on the track to begin with. Many see this track as a way to reconnect with nature or explore the wilderness of Tasmania. Even though that’s true, there’s no shame in turning back if the journey gets too dangerous. <blockquote 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);" class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/BsXj7rlFjJC/?utm_source=ig_embed&utm_medium=loading" data-instgrm-version="12"> <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> <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;" rel="noopener" href="https://www.instagram.com/p/BsXj7rlFjJC/?utm_source=ig_embed&utm_medium=loading" target="_blank">A post shared by Karen Lovell (@feedmechoc)</a> on Jan 8, 2019 at 1:14am PST </div> </blockquote> Being flexible with your itinerary across the walk might also be helpful, as you may want to see Cradle Mountain but trek to it and discover that it’s been hidden by fog. Although the walk can be dangerous if you’re not prepared, many have said that the views located along the track make it all worth it. Have you trekked the Overland Track in Tasmania? Let us know in the comments.

Domestic Travel

Hiking paradise in the Swiss Engadin Valley

The passengers on the train from Chur to Bever thought New Zealanders Justine and Chris Tyerman were crazy… so did those lunching at the top of Muottas Muragl. The Kiwi couple fitted in well however among other outdoor fanatics and aficionados at the trendy, three-star, hyper-modern Bever Lodge, Switzerland’s first hotel built using an innovative modular wooden construction technique. Flabbergasted at the scenery My limited German came in incredibly handy on the day we set out by train from Chur to Bever Lodge in the high Engadine Valley. I recognised the word ‘spät’ which means late, something that seldom happens with Swiss trains. But the ‘drei Minuten zu spät‘ or ‘three minutes late‘ meant we could catch an earlier train to our destination and spend more time in this spectacular mountain region in the canton of Grisons (Graubünden). Joel at the Rhaetian Railway office in Chur had promised the trip, a UNESCO World-heritage-listed section of the world-famous Glacier Express, would be thrilling but I wasn’t prepared to be quite so flabbergasted by the landscape. We never actually sat down in our seats but stayed at the back of the carriage by the door where I could open the windows to take photos without disturbing the other passengers. The countryside flickered past my eyes like the frames of an old-fashioned movie, only in glorious technicolour. <img class="size-full wp-image-9396 no-display lazyloaded appear" src="https://travelmemo-wpengine.netdna-ssl.com/wp-content/uploads/2015/03/Glacier-Express-Logo-Wagen-1024x683.jpg" alt="Glacier Express bar and observation cars" width="500" height="NaN" /> Switzerland’s famous Glacier Express. Image credit: Justine Tyerman We spent the entire two-hour trip leaping from one side of the carriage to the other frantically trying to capture the vertiginously-high viaducts, deep gorges, swirling rivers, turquoise lakes, castle ruins, glorious autumn colours, bright blue skies, majestic mountain peaks and impressive hydro-electric dams. The highlight was the staggering 65m high, 136m long, six-span Landwasser Viaduct between Tiefencastel and Filisur. <img class="size-full wp-image-9392 no-display lazyloaded appear" src="https://travelmemo-wpengine.netdna-ssl.com/wp-content/uploads/2015/03/Glacier-Express.jpg" alt="Glacier Express on the Landwater Viaduct" width="500" height="NaN" /> Our Glacier Express on the Landwasser Viaduct. Image credit: Justine Tyerman There is, however, a serious downside to Swiss train travel. You can't relax, read, sleep, work or even go to the bathroom for fear of missing out another astonishing stretch of countryside. The passengers in the carriage next door thought we were crazy. Lodge conveniently located Bever Lodge is ideally located for those travelling by train or bus – it’s directly across the road from the railway station with a bus stop right out in front. <img class="size-full wp-image-14241 no-display appear lazyloaded" src="https://travelmemo-wpengine.netdna-ssl.com/wp-content/uploads/2017/12/Bever-Lodge.jpg" alt="Bever Lodge" width="500" height="NaN" /> Bever lodge. Image credit: Justine Tyerman Having spent the last few weeks in stately old hotels and resorts with centuries of history, it was refreshing and exciting to stay at this near-new establishment, Switzerland’s first hotel built using an innovative modular wooden construction technique. The components were all prefabricated and then assembled on site. The trendy, three-star hyper-modern lodge opened two years ago and is already a big hit with hikers, bikers and families who are seeking close-to-nature, active, outdoor holidays rather than a life of leisure and luxury. You get a feel for the healthy, sporty vibe of the place as soon as you arrive – there are mountain bikes parked outside, cyclists taking a break in the sunny courtyard or ‘Sunset Lounge’ and hikers with backpacks and walking sticks heading for the mountains. It’s our kind of place. We felt right at home. The location has the added advantage of being just 15 minutes from world-famous St Moritz if you do want a taste of glitz and glam - but without the eye-watering price-tag. <img class="size-full wp-image-14232 no-display appear lazyloaded" src="https://travelmemo-wpengine.netdna-ssl.com/wp-content/uploads/2017/12/St-Moritz-building.jpg" alt="St. Moritz" width="500" height="NaN" /> St. Moritz is the ultimate in elegance with a host of boutique designer shops and grand old heritage buildings. Image credit: Justine Tyerman When we checked in, the very efficient and knowledgeable Andrea at reception gave us excellent instructions about the best hike to do that day and issued us with cards providing free use of all the buses and mountain transport. She also gave us a couple of walking sticks and two tubes of sunblock. Within 10 minutes we had deposited our bags in our lovely, spacious modern suite, changed into our hiking gear and were heading for the mountains with maps and a tourist information app in hand, courtesy of Andrea. With our magical free transport cards, we caught a bus outside the lodge to the Punt Muragl Talstation and enjoyed a thrilling trip up the mountain to Muottas Muragl in the historic 1907 funicular, the oldest in Grisons/Graubünden. Awe-struck… lost for words Sitting in the warm autumn sun at the restaurant having lunch and drinking chilled rosé at 2454 metres surrounded by magnificent mountains, lakes and glaciers brought tears of joy to my eyes and made my heart soar. I was awe-struck . . . lost for words. Our fellow lunchers were bemused at the tears. Perhaps it was altitude sickness. We could see four or five lakes sparkling like a row of sapphires strung on the necklace of the Inn River, and the stunning snow-covered Bernina Massif and the Morteratsch Glacier. Below us, hang gliders were taking off with whoops of excitement and hikers were beaming with joie de vivre on a perfect day in the Swiss alps. <img class="size-full wp-image-14244 no-display appear lazyloaded" src="https://travelmemo-wpengine.netdna-ssl.com/wp-content/uploads/2017/12/Chris-Justine-Tyerman-Muottas-Muragl.jpg" alt="Muottas Muragl" width="500" height="NaN" /> Justine and Chris toast a perfect day at the top of Muottas Muragl. Image credit: Justine Tyerman We didn’t think life could get much better - but then we set off on the 7km Panoramaweg, one of the most beautiful walking tracks on the planet. The path took us around the side of Schafberg mountain, through larch woodlands and across mountain streams beneath the towering peaks of Piz Muralg (3157m) and Piz Languard (3262m). Hikers sitting in the sun outside an alpine hut built of grey stone waved out to us. Their heavy packs suggested they had done a trek far more arduous than ours. Our path was mainly downhill which was a blessing because at this altitude, even the slightest climb had us puffing. We stopped midway for refreshments at the picturesque little Unterer Schafberg mainly for the sheer novelty of coming across a restaurant on a mountain hiking track, a rarity in our home country, New Zealand. <img class="size-full wp-image-14233 no-display appear lazyloaded" src="https://travelmemo-wpengine.netdna-ssl.com/wp-content/uploads/2017/12/Unterer-Schafberg-restaurant.jpg" alt="Unterer Schafberg Restaurant" width="500" height="NaN" /> The picturesque little Unterer Schafberg restaurant. Image credit: Justine Tyerman By the time we reached Alp Languard two and a half hours later, it was late afternoon and the air was starting to chill so we caught a chairlift down to Pontresina and a train back to Bever. So easy, so Swiss . . . and free. Bever Lodge buzzing When we arrived home, Bever Lodge was buzzing with rosy-cheeked guests, fresh from a day in the Great Outdoors. We dined on hearty pumpkin soup with chilli and coconut and tasty Bever Lodge Burgers with country fries and coleslaw - well looked after by charming chef de service Matt. After dinner, we sat by the fire in the cosy lounge before collapsing into our super-comfortable beds. In the morning, refreshed after a deep, restful sleep, we had a closer look at our surroundings. Our spacious, cleverly-designed room was sturdily constructed with pale larch wood-panelled walls and flooring giving it a light, clean, airy, modern look. The lovely tiled bathroom - and one of the best showers I’ve ever experienced - was concealed behind frosted glass decorated with a mountain motif. The floor-to-ceiling windows and doors opened up to allow fresh air to circulate and gave the effect of a balcony but without being outside the room. The view of the Engadine Valley ablaze with autumn colours was mesmerising. In the foreground, stood graceful dwellings with ornately-decorated plaster walls. The grass was clothed in silver from an early frost and the clear sky promised another perfect autumn hiking day. I could hear the tinkling of cow bells in the distance and the rumble of an early train coming down the valley. With plenty of storage space, a flat-screen television, free wifi and an app with all the activities of the area, we lacked for nothing. Practical, well thought-out, aesthetically-pleasing, welcoming and exceptionally comfortable, we felt relaxed and at home in our surroundings. A gym, sauna, massage studio, relaxation and meditation rooms and an all-important well-equipped cycle, ski and snowboard repair workshop were located on the ground floor. The breakfast buffet was varied and extensive with a chef on hand to cook omelettes, scrambled eggs, bacon and tomatoes. The array of fresh fruit, yoghurt, muesli, juices, bread and pastries was mouth-watering. Managing directors and hosts Marco and Johanna Zeller said the lodge was proving very popular with Swiss bikers, hikers and families looking for an active, holiday in one of the country’s most beautiful regions without having to pay a fortune. We were there in late autumn and the 41 rooms were nearly all full. St Moritz the ultimate in elegance Although we were blissfully happy in our own Engadine paradise, a visit to nearby St Moritz was a must – especially when we discovered the card Andrea issued to us on check-in also gave us free use of all the cablecars, buses, funiculars and mountain railways in the world’s ritziest mountain resort. The bus to St Moritz took us along the broad, sunny valley beside the pristine Inn River past the pretty villages of Samedan and Celerina and the historic Cresta toboggan track built in 1884. The town is superbly positioned on the shores of Lake St Moritz and completely encircled by mountains. It’s the ultimate in elegance with a host of boutique designer shops and grand old heritage buildings. Enough said. Volumes have been written about St Moritz. <img class="size-full wp-image-14224 no-display appear lazyloaded" src="https://travelmemo-wpengine.netdna-ssl.com/wp-content/uploads/2017/12/lake.jpg" alt="St. Moritz" width="500" height="NaN" /> Superbly positioned on the shores of lake St. Moritz and completely encircled by mountains. Image credit: Justine Tyerman Reaching the summit of the highest peak, 3057m Piz Nair, was our aim for the day, a feat we achieved effortlessly by riding two funiculars and a giant cablecar. This mode of transport may be commonplace for Swiss folk but for New Zealanders, it was an enormous thrill, especially gliding above the near-vertical start of FIS Alpine World Ski Championships downhill run called ‘Free Fall’. <img class="size-full wp-image-14230 no-display lazyloaded appear" src="https://travelmemo-wpengine.netdna-ssl.com/wp-content/uploads/2017/12/Piz-Nair-cablecar-lakes.jpg" alt="Piz Nair cablecar" width="500" height="NaN" /> The Piz Nair cablecar with St. Moritz and the sapphire lakes Mind-boggling view The panorama from the summit was mind-boggling with a myriad of peaks clamouring for attention. Piz Nair, which towers above St Moritz, was shoulder-to-shoulder with dozens of other imposing peaks, all over 3000 metres. At this height we experienced mild altitude symptoms, a gentle rocking sensation like a small earthquake . . . even before our prosecco with lunch. <img class="size-full wp-image-14235 no-display lazyloaded appear" src="https://travelmemo-wpengine.netdna-ssl.com/wp-content/uploads/2017/12/view-from-Piz-Nair.jpg" alt="View from Piz Nair" width="500" height="NaN" /> The view from the top of Piz Nair. Image credit: Justine Tyerman Fit-looking hikers were setting off in all directions while mountain bikers were launching themselves down precipitous, scary-looking tracks. We lingered at the summit, knowing this was our last day in the alps. I even played in a patch of early snow, the last we would see until the southern winter. After much discussion with locals and consulting of maps, we finally set off towards a lake far below us. The top of the track was rockier, narrower and steeper than it looked from above, and there were patches of snow and ice that kept us well and truly focused for a good 30-40 minutes. But the vista was breath-taking and we made it down safely to the funicular station at Corviglia. Looking back up the mountain, we realised we had crossed an enormous rockfall that covered the entire face of Piz Nair. <img class="size-full wp-image-14225 no-display lazyloaded appear" src="https://travelmemo-wpengine.netdna-ssl.com/wp-content/uploads/2017/12/lake-Piz-Nair.jpg" alt="Piz Nair" width="500" height="NaN" /> A lake on the track down from Piz Nair. Image credit: Justine Tyerman Tranquil Bever We arrived back in Bever in time to explore the idyllic little village with its pretty houses and tall-spired church - so tranquil and peaceful after bustling, self-important St Moritz. Home to 700 people, many of the sturdy four to five-storey dwellings are decorated with exquisite Italian sgraffito art. <img class="size-full wp-image-14239 no-display lazyloaded appear" src="https://travelmemo-wpengine.netdna-ssl.com/wp-content/uploads/2017/12/Bever-building.jpg" alt="Bever" width="500" height="NaN" /> The tranquil little village of Bevers with its pretty houses and tall-spired church The ancient technique involves applying layers of coloured plaster to the walls then scratching patterns in it with iron tools. The designs around the windows and huge arched doorways, built in the old days to accommodate hay-wagons, depicted ibex, deer, elephants, horses and bears. It's a tradition in the Swiss Engadine Valley, borrowed from nearby Italy. The houses were built small windows to limit heat loss and deep sills that funnel the light and sunshine into the rooms. We heard wonderful stories about the Fairytale Path that leads through the middle of the Val Bever to Spinas but the daylight faded before we could explore it. Created by local Engadine authors and sculptors, there are six stations depicting scenes from fairytales. That evening, we lounged in the sauna before feasting on delicious Engadine capuns, pulled pork and Thai curry. Special deals – year round Bever Lodge is the perfect base for summer and winter sports, and Marco and Johanna Zeller, who know every corner of the Engadine, are delighted to share their secret spots with guests. In the winter there’s limitless scope for alpine skiing and snowboarding, snow-shoeing, winter hiking, cross-country skiing and tobogganing, and in the summer there’s a vast network of hiking and biking trails right on the doorstep. The lodge also prides itself on an-house bike coach with personal touring suggestions and insider tips, not to mention a lockable, video-monitored bike room, workshop and spares. And they throw in a free laundry service for biking and hiking clothes. Marathon runners and athletes train here too, taking advantage of the Engadine Valley's 1700m altitude and dry alpine climate with 322 days of sunshine every year. Swiss athletes trained here nearly 50 years ago for the Mexico City Olympics in 1968. The lodge has some great deals for cost-conscious holiday-makers. In winter, if you stay at Bever Lodge longer than one night you can buy the Hotel Ski Pass for 38 Swiss Francs ($56NZ) a day – for instance, if you stay five days, you can book the pass for five days. That’s roughly half the price of the average lift pass in New Zealand . . . and for this you can access 350km of perfectly-groomed pistes, three snow parks, 56 mountain lifts and 34 mountain restaurants. There’s also a free ski bus on the doorstep and a train station across the road. And in spring, summer and autumn, a similar deal applies. Guests who stay at the lodge for two nights or more get free use of public transport, funiculars and cablecars. From 190 Swiss Francs for a double room, ($275 NZ) Bever Lodge is comparable if not cheaper than hotel accommodation on the fringes of New Zealand’s top holiday resorts. Excellent value for money. Who says Switzerland is expensive! Written by Justine Tyerman. * Justine and Chris Tyerman stayed at Bever Lodge in Bever, Switzerland: <a rel="noopener" href="http://www.beverlodge.ch/" target="_blank">www.beverlodge.ch</a> * Switzerland Tourism: <a rel="noopener" href="http://www.myswitzerland.com/" target="_blank">www.MySwitzerland.com</a> * Swiss Travel Pass: <a rel="noopener" href="http://www.myswitzerland.com/rail" target="_blank">www.MySwitzerland.com/rail</a> * Rail Europe: <a rel="noopener" href="http://www.raileurope.com.au/" target="_blank">www.raileurope.com.au</a> / <a rel="noopener" href="http://www.raileurope.co.nz/" target="_blank">www.raileurope.co.nz</a> * Swiss International Air Lines: <a rel="noopener" href="http://www.swiss.com/ch/en" target="_blank">www.swiss.com/ch/en</a> Republished with the permission of <a rel="noopener" href="http://travelmemo.com/" target="_blank">Travelmemo.com</a>

International Travel

Treasurer admits there’s nothing stopping bank fee hikes

After hitting the major banks hard with <a href="http://www.oversixty.com.au/finance/money-banking/2017/05/how-this-federal-budget-will-impact-seniors/">taxes in the 2017 Federal Budget</a>, Treasurer Scott Morrison has conceded that there’s little the Government can do to stop the banks from passing these taxes onto consumers through additional fees. Speaking on ABC’s Insiders program, Mr Morrison said there was every chance the banks would pass the charge on, “In the same way that banks have put up interest rates, even when there hasn’t been a move in the Reserve Bank cash rate. I mean, banks will find any way they can to charge their customers more with fees and charges.” But the Treasurer hit back at suggestions that this was an unfair tax, saying, “To suggest this is somehow the end of financial civilisation as we know it is one of the biggest overreaches in a whinge about a tax I’ve ever seen.” Mr Morrison’s comments come after Australian Bankers’ Association Chief Executive Anna Bligh said banks would have to find a way to pass the additional costs <a href="http://www.oversixty.com.au/finance/money-banking/2017/05/pensioners-to-receive-cash-payment-in-2017-budget/">imposed by the 2017 Federal Budget on</a>, in the same way any other business would. Ms Bligh said, “The major banks are terribly concerned about the risk of major unintended consequences of this new tax, and there is an urgent need for more detailed information so we can properly assess its impacts. “This process is already breaking all the rules and conventions about major taxation implementation, including no prior consultation, no exposure draft legislation for public comment, and an extraordinarily brief timetable before a hastily designed tax is presented to the Parliament. “Disastrous unintended consequences could flow from this rush.” Prime Minister Malcolm Turnbull believes the banks should wear the taxes. In an interview with Sky News, Mr Turnbull said, “They don't need to pass this on, they're very profitable and the ACCC will be watching them very, very carefully indeed. “Banks benefit from the implicit support of the government, they are as they say too big to fail. “It's fair they make a contribution... it helps us bring the budget back into balance.” What’s your take? Was the Government right to push the taxes onto the big banks? Are you concerned the taxes will hit you as a consumer? Image credit: Twitter / Ladywhitepeace‏

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