Search

"No sympathy": 26-year-old roasted over massive tax bill complaint

It’s a classic tale of riches to tax brackets – OnlyFans creator Talia Batiste, 26, has found herself in the fiery depths of an Australian Tax Office reckoning, and the internet has wasted no time serving up a heaping plate of zero sympathy. Batiste, who revealed that she’s been hit with a tax bill totalling $71,008.45 (yes, she included the cents for maximum devastation), took to social media to lament her financial woes. “For everyone that likes to make sure I’m paying my tax. I’m going to go and cry myself to sleep now,” she wrote, presumably while clutching her silk pillow stuffed with $100 bills. The internet’s reaction? Less “thoughts and prayers”, more “play stupid games, win inevitable government-mandated financial responsibilities”. “Absolutely robbery,” one concerned citizen commented, clearly distressed by the idea of anyone having to contribute to society. “To pay that much tax, you earn a sh**load. No sympathy,” another user shot back, presumably while furiously entering their own lacklustre income into a tax return calculator. Some were more pragmatic, offering sage financial wisdom. “I hope you have a good accountant to get you those tax deductions,” someone advised, the unspoken message being: “There’s still hope, young one.” While many scoffed at the idea of crying over a salary that most people only see on TV shows where billionaires buy entire islands for sport, Batiste remained defiant. <a href="https://www.news.com.au/finance/economy/cry-myself-to-sleep-26yearold-in-tears-over-giant-tax-bill/news-story/7adfcb10f0ea62a1749f4dc6c1b65934" target="_blank" rel="noopener">Speaking to news.com.au</a>, she admitted that the bill “wasn’t too bad” compared to the tax nightmares of yesteryear. (Yes, it turns out paying taxes gets easier when you know they’re coming. Who knew?) Batiste revealed that an early accounting blunder had initially classified her as a sole trader rather than a business, making her tax situation about as pleasant as a surprise phone call from the ATO. “So when I make $400,000+ a year, it looks like that is my personal income rather than money going back into a business,” she explained, finally unlocking the ancient wisdom of self-employment taxation. Now, with proper financial advice in place, she says she takes a modest salary while the rest of her earnings go into business expenses – like, presumably, funding the tissue budget for her post-tax breakdowns. Despite her newfound tax strategy, Batiste insists that the process “never gets easier”. (Except for last year, when she owed a whopping $136k, making this year’s bill look like pocket change by comparison.) She also had some words about Australia’s taxation system: “Everybody pays too much tax.” Yes, much like death and bad reality TV spin-offs, taxation is inevitable. But Batiste isn’t letting it get her down – at least, not too much. Even though she says she’s “prepared” for these bills now, that doesn’t mean she enjoys sending her hard-earned money into the great abyss of government spending. “Hitting send on that ATO payment hurts every time,” she said. Meanwhile, taxpayers earning a fraction of her income simply sighed, checked their bank balances, and went back to their regularly scheduled programming: budgeting how to afford avocados and rent in the same month. Images: TikTok

Money & Banking

Replacing stamp duty with a land tax could save home buyers big money. Here’s how

<div class="theconversation-article-body"> Infrastructure Victoria has released a <a href="https://assets.infrastructurevictoria.com.au/assets/Victorias-draft-30-year-infrastructure-strategy.pdf">draft 30-year plan </a> outlining how the state can grow sustainably. It focuses on key areas like transport, housing, energy, and public services to support a growing population and improve liveability. The plan also suggests ways to make the state’s infrastructure and tax system fairer, more efficient and more sustainable. The plan’s recommendations are expected to cost between A$60 billion and $75 billion, mostly spent before 2035. This is around 10% of <a href="https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-state-accounts/2023-24-financial-year#data-downloads">Victoria’s yearly economic output</a> in 2023-24, spread over the next decade. With Victoria already spending record amounts on infrastructure, and <a href="https://pbo.vic.gov.au/document/BudgetUpdateSnapshot2024-25">budget deficits forecast</a> until 2025-26, finding the money to fund social housing, transport and other projects is a key challenge. We estimate the Infrastructure Victoria proposals would add between $4 billion and $5 billion to Victorian government expenditure each year. Yet one of its proposals — replacing stamp duty with an annual land tax — would only cost between $1 million and $5 million to implement, but generate substantial gains for Victorian households. <h2>Why replace stamp duty with land tax?</h2> Stamp duty is one of the biggest barriers to moving house in Victoria and other Australian states. This tax, which people pay when they buy property, adds thousands of dollars to the cost of moving. In 2022-23, Victorians paid about <a href="https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-state-accounts/2023-24-financial-year#data-downloads">$12 billion</a> to move house. Of this, $3 billion went to actual moving costs (like real estate services, and removalists) and $9 billion was <a href="https://www.abs.gov.au/statistics/economy/government/taxation-revenue-australia/latest-release#data-downloads">stamp duty</a>. That’s an effective tax rate of 300% on the true cost of moving, and in 2023 <a href="https://www.e-business.sro.vic.gov.au/calculators/land-transfer-duty">added about</a> $40,000, or 5.3%, to the cost of purchasing the average Victorian home. High stamp duty discourages people from relocating, even when their needs change — whether that’s moving for a new job, finding a bigger home for a growing family or downsizing after retirement. This leads to longer commutes, traffic congestion and a less efficient housing market. Switching from stamp duty to an annual land tax would make moving easier and spread the tax burden more fairly. Instead of a large, one-time tax when buying a home, all landowners would pay a smaller tax each year. This would help fund schools, hospitals, and other infrastructure more sustainably. <h2>What can we learn from Canberra?</h2> Victoria University’s Centre of Policy Studies <a href="https://www.treasury.act.gov.au/__data/assets/pdf_file/0009/1618407/cops-final-report.pdf">studied a similar reform</a> in the Australian Capital Territory, where stamp duty has been gradually phased out since 2012 and replaced with higher general rates (a type of land tax). Each year, the ACT government sets a target for how much money it needs to raise. Landowners then pay a share of that total, based on the value of their land. One of the biggest benefits of this approach is that it raises money more efficiently. Unlike other taxes, land taxes don’t discourage investment or economic activity. The study found removing stamp duty had a big positive impact on the ACT’s economy. Around 80% of the economic boost came from removing stamp duty, while introducing land tax also had benefits. By studying transaction data from the ACT, we showed each 10% reduction stamp duty rates drove a 6% rise in property transactions. <h2>Would it help housing affordability?</h2> One of the main arguments for replacing stamp duty with land tax is its effect on housing prices. Economists widely agree land taxes reduce land values, which makes housing more affordable. However, the impact of removing stamp duty is less predictable. Our previous research found <a href="https://theconversation.com/swapping-stamp-duty-for-land-tax-would-push-down-house-prices-but-push-up-apartment-prices-new-modelling-finds-184381">the effect on house prices</a> depends on how often properties are bought and sold. Apartments, for example, tend to change hands more frequently than houses. Because of this, removing stamp duty tends to push up apartment prices more than house prices. Even so, the overall effect of the reform is a drop in property prices. The challenge is ensuring this price reduction is evenly spread across different types of housing. <h2>A fairer tax system</h2> To make the system fairer, policymakers could adjust how land tax is applied. One option is to introduce a fixed-rate component, as <a href="https://www.revenue.nsw.gov.au/grants-schemes/previous-schemes/first-home-buyer-choice">proposed </a> in New South Wales. Another idea, suggested 15 years ago in the <a href="https://treasury.gov.au/sites/default/files/2019-10/afts_final_report_part_1_consolidated.pdf">Henry Tax Review</a>, is to base the tax on the per-square-metre value of land. Another key factor is housing supply. If planning laws allow more high-density housing in inner suburbs, price changes could be better managed. <h2>We also need short-term solutions</h2> Replacing stamp duty with land tax is a long-term reform that would take years to fully implement. The ACT, for example, planned a 20-year transition. If all state governments implemented this reform, we estimate Australian households would ultimately be <a href="https://www.copsmodels.com/ftp/workpapr/g-337.pdf">better off by about</a> $,1600 per household per year. In the short term, <a href="https://theconversation.com/whats-the-best-way-to-ease-rents-and-improve-housing-affordability-we-modelled-4-of-the-governments-biggest-programs-225446">other policies </a> could help improve housing affordability. These include increasing Commonwealth Rent Assistance and rethinking first-home buyer support. These steps could complement broader tax, infrastructure and housing supply reforms. The Victorian government is <a href="https://engage.vic.gov.au/victorias30yearinfrastructurestrategy">seeking feedback</a> on the draft plan before releasing the final version later this year. This is an opportunity for Victorians to contribute ideas on how to shape the state’s future and ensure its infrastructure and tax system work for everyone.<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/251472/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/jason-nassios-318488">Jason Nassios</a>, Associate Professor, Centre of Policy Studies, <a href="https://theconversation.com/institutions/victoria-university-1175">Victoria University</a> and <a href="https://theconversation.com/profiles/james-giesecke-9853">James Giesecke</a>, Professor, Centre of Policy Studies and the Impact Project, <a href="https://theconversation.com/institutions/victoria-university-1175">Victoria University</a> 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/replacing-stamp-duty-with-a-land-tax-could-save-home-buyers-big-money-heres-how-251472">original article</a>. Image: 7news.com.au </div>

Money & Banking

Millions of Centrelink customers to get cash boost

More than five million Australians on welfare, including pensioners, renters, and job seekers, will have their payments boosted as the indexation changes are due to kick in. The payment increases will be made from March 20, with single pensioners able to take home an extra extra $3913 each year, while couples are set to receive an additional combined $5902. People on JobSeeker payments will get an extra $3374 to $5038, with single parents, mainly women, set to be more than $7500 better off annually. The maximum single rate of pension for those on the Age Pension, Disability Support Pension and Carer Payment will increase by $4.60 to $1149.00 a fortnight. “We’ve spent the past three years strengthening our social security system, so that it helps Australians at whatever age or stage they’re at in life,” Social Services Minister Amanda Rishworth said. “Indexation is a critical part of our social security safety net. For pensioners and other payment recipients receiving this financial boost, this will help ease some pressure.” Image: TK Kurikawa / Shutterstock.com

Money & Banking

Cricket great takes aim at Albo's beer tax freeze

Cricket great David Warner has slammed Prime Minister Anthony Albanese's move to combat soaring beer prices. On Monday, Albanese promised to pause the government's tax hike on beers poured at pubs for the next two years. Albanese announced the policy while enjoying his "first beer of the year" at the Bob Hawke Beer and Leisure Centre in Marrickville. "This will make a difference. It is a positive announcement. As I said, good for beer drinkers, good for pubs and clubs, good for cost of living pressures," he said. Australia's inflation-indexed alcohol tax - which increases twice annually - has long been an issue for breweries, pub owners and customers. This month, there was a 3.5 per cent rise on the price of beer, an additional cost that usually gets passed onto the customer. The Prime Minister said if he is re-elected, the Labor government would freeze the indexation on draught beer excise for 24 months from the next indexation date this coming August. However, Warner believes this move is a "few years too late," slamming the Prime Minister's pledge on social media. Warner, who is an investor and director of Victoria's St Andrews Beach Brewery, has been affected by the rising prices. Shortly after Albanese's announcement, Coalition treasury spokesman Angus Taylor said Peter Dutton, if elected, would also freeze tax. "The government has chosen the eve of an election to promise voters a freeze on a tax that has skyrocketed due to its failure to address inflation at its core," Taylor said. Image: LUKAS COCH/EPA-EFE/ Shutterstock Editorial/ Instagram

Money & Banking

Why physical affection can boost your health

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/viren-swami-241976">Viren Swami</a>, <a href="https://theconversation.com/institutions/anglia-ruskin-university-1887">Anglia Ruskin University</a> In the opening scene of <a href="https://www.youtube.com/watch?v=H9Z3_ifFheQ">Love, Actually</a>, Hugh Grant’s character says how, whenever he gets gloomy with the state of the world, he thinks about the arrivals gate at Heathrow airport. The reason is on screen: we see couples kissing, old friends embracing, children smiling and laughing as they jump into the arms of their parents. Airports are great places to really understand the importance of physical affection – hugging, kissing, cuddling, holding hands, or even just touching. But physical affection is ubiquitous in everyday life, too – and with good reason. Science shows that non-sexual physical affection produces more than just moments of joy – it also <a href="https://www.tandfonline.com/doi/abs/10.1080/03637751.2020.1805480?casa_token=DrsRLnkOANAAAAAA:u8gR6dQFL2Jp99tIr3m1Bcm14hc-EwVrbckdpuDX0HyWEBDrzoUcxNYpkCQzXP5oD_IhHqzYo7Fj">benefits</a> our mental and physical health. <figure><iframe src="https://www.youtube.com/embed/PlyMXYys16U?wmode=transparent&start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe></figure> Physical affection is one of the <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1475-6811.1998.tb00157.x?casa_token=Rq8rCHwvKboAAAAA%3AxmDZvSXM6wTZuZzCCotRMro4nC_xcSbnw6Em8Od29q__XfYEhuwW9Iigpr2c8WlZJ_aMY4ng5m-DM40">most direct</a> and important ways that people communicate intimacy in their romantic relationships. And it seems to occur in romantic relationships all over the <a href="https://journals.sagepub.com/doi/abs/10.1177/0146167220988373?casa_token=2rLs7-9M9bAAAAAA:UduYJMPaWQmLGFZXW0YcLvaBf-Lor1jITDDSIpqVTtTVuznW7YC89p-Jp0WUtebc2UTE8-ikrrxp&casa_token=2_f_mSXK3YYAAAAA:AkLcZq_uAkQ7HyQL9jCDdubu7zuseAslE864obd1OYUMR1JLq7JPDM3C7lLMJTzDHEnQwgs6kQRi">world</a>, despite cross-cultural differences in ideas of love and romance. People in romantic relationships report more <a href="https://link.springer.com/article/10.1007/s10919-018-0281-8">intimate physical affection</a> than singletons. They’re also more comfortable allowing their partners to touch more of their bodies than strangers or friends. For example, most people are comfortable being touched on their <a href="https://www.pnas.org/doi/abs/10.1073/pnas.1519231112">thighs and abdomen</a> by their partner, but not by other people. Even how we touch our partners is different to how we touch other people. When participants in one study were asked to stroke their partner, a friend, a stranger, or an artificial arm, they did so more <a href="https://link.springer.com/article/10.1007/s10919-020-00334-2">slowly</a> with their partner. Slower strokes may may be experienced as more pleasant and <a href="https://academic.oup.com/jsm/article/14/5/645/6973562">erotic</a> than quicker strokes. Even just <a href="https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0203039">thinking</a> about physical affection from a partner evokes pleasant and erotic sensations. There is now strong evidence showing that physical contact is associated with better physical and mental health. One <a href="https://www.nature.com/articles/s41562-024-01841-8">review</a> of “touch interventions” – think massage – in 212 studies involving more than 13,000 participants found that physical touch benefited everything from sleep patterns to blood pressure to fatigue. Touch interventions were especially helpful in reducing pain, depression and anxiety. <h2>Couple’s therapy</h2> Before you rush off to book yourself a massage, you should know that much of the evidence suggests the strongest benefits come from physical affection with romantic partners. Several studies have found that, in couples, physical affection is associated with a range of <a href="https://www.sciencedirect.com/science/article/pii/S0273229711000025?casa_token=ER4aGB-3vusAAAAA:IBMtXZdEpTywjizJ4kwcOPO2HykSwgaK3GS3qYWh5JTYvWJCLW-x1I3IYDYKbzLZ9aX8QIhOLlA">physiological</a> effects, including lower blood pressure and better immune responses. In couples, physical affection is also associated with better psychological <a href="https://journals.sagepub.com/doi/abs/10.1177/0146167213497592?casa_token=_OtVkA13hgkAAAAA%3AU6eWWQLI4CXadtUanBR1PEGBA-Xh8en3plwOayvC4KNF_Ybi8zyzHjheM1m2XWLxjgczoQstUEEbDg&journalCode=pspc">wellbeing</a>. One study found that couples who <a href="https://link.springer.com/article/10.1007/s42761-021-00093-3">sleep-touched</a> – cuddling shortly before or after sleep – felt happier and calmer in the morning, which meant they were more likely to enjoy the company of their partners. Physical affection – including <a href="https://link.springer.com/article/10.1007/s10508-013-0190-1?correlationId=bbd6ba1a-a372-4cae-83b3-6d9ba5704f4e&error=cookies_not_supported&code=dc878548-1748-44ed-bf6b-36dd348ea060">kissing</a> and <a href="https://link.springer.com/article/10.1007/s10508-014-0305-3">affection after sex</a> – is also associated with greater relationship and <a href="https://link.springer.com/article/10.1007/s10508-016-0820-5">sexual satisfaction</a>, and better ratings of one’s relationship overall, which in turn contribute to better psychological wellbeing. And even when conflicts do occur, <a href="https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0203522">hugging</a> seems to reduce levels of negative mood in couples. Cuddle up, because there’s more. Receiving physical affection from a partner makes us feel psychologically stronger. One study found that women showed less activation in parts of the brain that respond to threat when <a href="https://journals.sagepub.com/doi/10.1111/j.1467-9280.2006.01832.x">holding their husband’s hand</a>. Even just imagining touch from a partner can increase one’s willingness to take on <a href="https://www.sciencedirect.com/science/article/abs/pii/S0022103116302013?via%3Dihub">challenging tasks</a>. Another way to look at this is to examine what happens when we lose physical affection. Studies have shown that “<a href="https://onlinelibrary.wiley.com/doi/full/10.1002/ijop.12616">touch deprivation</a>” – the absence of touch – is associated with greater symptoms of depression and anxiety. Indeed, the loss of affection from others during the pandemic <a href="https://esmed.org/MRA/mra/article/view/2204">hit many people hard</a>. Among couples, a <a href="https://www.tandfonline.com/doi/abs/10.1080/10570314.2014.927071?casa_token=D34OY4K-RBIAAAAA:GY-MyGWWcZfOZgOYLmtjYbn3buO5fL1FUiD7whf1fs_aFQPGORTPwOS9Eh0ODdbeRmW32ehtrtntug">lack of physical affection</a> is associated with lower relationship satisfaction, stress, and feelings of loneliness. <figure><iframe src="https://www.youtube.com/embed/ErWfdjdOah8?wmode=transparent&start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe></figure> There are several ways in which physical affection provides these benefits. Affectionate touch is known to activate <a href="https://onlinelibrary.wiley.com/doi/epdf/10.1002/hbm.23679">reward centres</a> of the brain, which boosts our mood and promotes feelings of wellbeing. Touch also stimulates the release of <a href="https://www.sciencedirect.com/science/article/abs/pii/S0163638320301107?casa_token=I6GG0M3UAQEAAAAA:qSsExsEvHY9NHduwUF26okRMUm1Ls-gYHbrVNzaYgMkmS-Ohk2Y5ZvowbF2iWfpa6SO-mw6duuI">oxytocin</a>, which can strengthen social bonds and increase feelings of trust between individuals. It’s for these reasons that oxytocin is sometimes called the “cuddle chemical”. Physical affection also reduces levels of the stress hormone <a href="https://doi.org/10.1016/j.psyneuen.2007.03.011">cortisol</a> and reduces perceived pain, which suppress physiological stress systems. One study found that a ten-minute neck-and-shoulder <a href="https://www.sciencedirect.com/science/article/abs/pii/S0306453007000698?casa_token=2Bzr1YblT_wAAAAA:U9SNg8zkf30IXRI9MHpvdrJHJm6SWSbmnwpMu5pmMVElt5xifUTAkaM8Vp3vvOcas9JTUYHZlwQ">massage</a> from one’s partner helped lower cortisol responses, helping to regulate levels of stress. Psychologically, physical affection in romantic relationships is an important way <a href="https://journals.sagepub.com/doi/abs/10.1177/0146167213497592?casa_token=_OtVkA13hgkAAAAA%3AU6eWWQLI4CXadtUanBR1PEGBA-Xh8en3plwOayvC4KNF_Ybi8zyzHjheM1m2XWLxjgczoQstUEEbDg&journalCode=pspc">to keep our emotions under control</a>. Touching one’s partner in a caring manner helps to improve their mood and makes them feel loved, secure, and safe. As feelings of <a href="https://link.springer.com/article/10.1007/s10508-006-9071-1">connection</a>, trust, and belonging are strengthened through non-sexual physical signs of affection, negative effect is reduced and psychological well-being is improved. However, not everyone likes to be touched, even if it is by their romantic partners. Some people are “<a href="https://link.springer.com/article/10.1007/BF00990960">touch avoidant</a>” – and some people may actually be apprehensive about being touched. For instance, people with avoidant attachment styles – characterised by a discomfort with emotional closeness – often have very <a href="https://doi.org/10.1016/j.paid.2014.05.035">negative views about cuddling</a> and are more <a href="https://journals.sagepub.com/doi/10.1177/0146167295213008">hesitant</a> to touch their partners. Conversely, people with anxious attachment styles – characterised by a fear of abandonment – may desire <a href="https://journals.sagepub.com/doi/10.1177/0146167295213008">more touch</a> than they receive. But when couples have similar touch preferences, it can lead to greater attraction, <a href="https://journals.sagepub.com/doi/abs/10.1177/0265407520910791?casa_token=Q1265G4ynqsAAAAA%3AWuu40ji4ca-_TKKA7P2CeSqeTTFfYH-Bfz1c0pBUCJ6fD0_twBugXqg3Geon-ncaS2VhjfUTdp9HiQ&journalCode=spra">closeness</a>, and commitment to one another. And if you’re looking for a fun way to incorporate non-sexual physical affection into your relationships, consider home massage. One study found that couples who <a href="https://www.mdpi.com/2254-9625/11/2/33">took turns massaging</a> each other at home felt a deeper connection with each other, and felt more relaxed and less stressed.<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/247858/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/viren-swami-241976">Viren Swami</a>, Professor of Social Psychology, <a href="https://theconversation.com/institutions/anglia-ruskin-university-1887">Anglia Ruskin 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/why-physical-affection-can-boost-your-health-247858">original article</a>. </div>

Body

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

Most retirees who rent live in poverty. Here’s how boosting rent assistance could help lift them out of it

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/brendan-coates-154644">Brendan Coates</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>; <a href="https://theconversation.com/profiles/joey-moloney-1334959">Joey Moloney</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>, and <a href="https://theconversation.com/profiles/matthew-bowes-2316740">Matthew Bowes</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> Most Australians can look forward to a comfortable retirement. More than three in four retirees own their own home, most report feeling comfortable financially, and few suffer financial stress. But our new Grattan Institute <a href="https://grattan.edu.au/report/renting-in-retirement-why-rent-assistance-needs-to-rise/">report</a> paints a sobering picture for one group: retirees who rent in the private market. Two-thirds of this group live in poverty, including more than three in four single women who live alone. <hr /> <iframe id="x2VND" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/x2VND/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> Retirees who rent often have little in the way of retirement savings: more than half have less than A$25,000 stashed away. And a growing number of older Australians are at risk of becoming homeless. But our research also shows just how much we’d need to boost Commonwealth Rent Assistance to make housing more affordable and ensure all renters are able to retire with dignity. <h2>Today’s renters, tomorrow’s renting retirees</h2> Home ownership is falling among poorer Australians who are approaching retirement. Between 1981 and 2021, home ownership rates among the poorest 40% of 45–54-year-olds fell from 68% to just 54%. Today’s low-income renters are tomorrow’s renting retirees. Age pensioners need at least $40,000 in savings to afford to spend $350 a week in rent, together with the <a href="https://www.servicesaustralia.gov.au/age-pension">Age Pension</a> and <a href="https://www.servicesaustralia.gov.au/rent-assistance">Rent Assistance</a>. That’s enough to afford the cheapest 25% of one-bedroom homes in capital cities. But Australians who are renting as they approach retirement tend to have little in the way of retirement savings. 40% of renting households aged 55-64 have net financial wealth less than $40,000. <h2>Rent assistance is too low</h2> Our <a href="https://grattan.edu.au/report/renting-in-retirement-why-rent-assistance-needs-to-rise/">research</a> shows that Commonwealth Rent Assistance, which supplements the Age Pension for poorer retirees who rent, is inadequate. The federal government has <a href="https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/speeches/budget-speech-2024-25">lifted the maximum rate of Rent Assistance</a> by 27% – over and above inflation – in the past two budgets. But the payment remains too low. A typical single retiree needs at least $379 per week to afford essential non-housing costs such as food, transport and energy. But we found a single pensioner who relies solely on income support can afford to rent just 4% of one-bedroom homes in Sydney, 13% in Brisbane, and 14% in Melbourne, after covering these basic living expenses. With Rent Assistance indexed to inflation, rather than low-income earners’ housing costs, the maximum rate of the payment has increased by 136% since 2001, while the rents paid by recipients have increased by 193%. <h2>A boost is needed</h2> Our analysis suggests that to solve this problem, the federal government should increase the maximum rate of Rent Assistance by 50% for singles and 40% for couples. The payment should also be indexed to changes in rents for the cheapest 25% of homes in our capital cities. These increases would boost the maximum rate of Rent Assistance by $53 a week ($2,750 a year) for singles, and $40 a week ($2,080 a year) for couples. This would ensure single retirees could afford to spend $350 a week on rent, enough to rent the cheapest 25% of one-bedroom homes across Australian capital cities, while still affording other essentials. Similarly, retired couples would be able to afford to spend $390 a week on rent, enough to rent the cheapest 25% of all one- and two-bedroom homes. <hr /> <iframe id="EZBuw" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/EZBuw/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> <h2>Unlikely to push up rents</h2> One common concern is that increasing Rent Assistance will just lead landlords to hike rents. But we find little evidence that this is the case. International studies suggest that more than five in six dollars of any extra Rent Assistance paid would benefit renters, rather than landlords. <hr /> <iframe id="qGxQE" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/qGxQE/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> In Australia, there’s little evidence that recent increases in Rent Assistance have pushed up rents. Our analysis of NSW rental bond lodgement data suggests areas with higher concentrations of Rent Assistance recipients did not see larger rent increases in the year after the payment was boosted. That’s not surprising. Rent Assistance is paid to tenants, not landlords, which means tenants are likely to spend only a small portion of any extra income on housing. Since rates of financial stress are even higher among younger renters, we propose that any increase to Rent Assistance should also apply to working-age households. Boosting Rent Assistance for all recipients would cost about $2 billion a year, with about $500 million of this going to retirees. These increases could be paid for by further <a href="https://grattan.edu.au/report/super-savings-practical-policies-for-fairer-superannuation-and-a-stronger-budget/">tightening superannuation tax breaks</a>, <a href="https://grattan.edu.au/report/housing-affordability-re-imagining-the-australian-dream/">curbing negative gearing and halving the capital gains tax discount</a>, or counting more of the value of the family home in the Age Pension assets test.<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/249134/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/brendan-coates-154644">Brendan Coates</a>, Program Director, Housing and Economic Security, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>; <a href="https://theconversation.com/profiles/joey-moloney-1334959">Joey Moloney</a>, Deputy Program Director, Housing and Economic Security, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>, and <a href="https://theconversation.com/profiles/matthew-bowes-2316740">Matthew Bowes</a>, Associate, Housing and Economic Security, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</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/most-retirees-who-rent-live-in-poverty-heres-how-boosting-rent-assistance-could-help-lift-them-out-of-it-249134">original article</a>. </div>

Money & Banking

TikTok influencer arrested after sick act to boost followers

A Queensland TikTok influencer has been arrested after being accused of poisoning a one-year-old girl for her own benefit. The 34-year-old Sunshine Coast woman allegedly gave several unauthorised prescription and pharmacy medicines to the young girl, resulting in her falling ill. "While the child was being subject to immense distress and pain, it is alleged the woman filmed and posted videos of the child," police said in a statement. "It is alleged the content produced exploited the child and was used to entice monetary donations and online followers." Detective Inspector Paul Dalton said the little girl was already in hospital with a genuine illness, when medical staff suspected that something was wrong. On January 7, they tested her for unauthorised medicines, and found that the result was positive. Police allege the medicines were given to the one-year-old girl between August 6 and October 15 last year. "There are no words to describe just how repulsive offences of this nature are," Dalton said. "There is no excuse for hurting a child, particularly one so young." The woman is accused of raising around $60,000 through GoFundMe, with Dalton confirming that they are working towards returning the money to those who have donated. "We've been dealing with GoFundMe, I understand through my investigators that they are making attempts to repay that money to the people through the kindness of their heart who have donated that money," Dalton said. "We will be seeking that money back in restitution should she be convicted at a later date," Dalton said. He also confirmed that the young girl and her siblings are "safe" and "the child's going well" but did not reveal who was caring for them. The woman has been charged with five counts of administering poison with intent to harm, three counts of preparation to commit crimes with dangerous things, and one count each of torture, making child exploitation material and fraud. She remains in custody and has been denied bail. Image: Queensland Police

Legal

Millions of Aussies to receive cash boost as welfare payments rise

Millions of Australians who rely on welfare payments will receive a much needed cash boost as of Friday, thanks to an indexation boost. Recipients of the age and disability pensions, rent assistance, carer payments, and JobSeeker payments will all receive the increase. Age pensioners, as well as those on the disability pension and carer payments, will see an increase of $28.10 a fortnight for singles and $42.40 a fortnight for couples. This boost will take the total payment per fortnight, including energy supplement, to $1114.40 for singles and $862.60 for each member of a couple. Maximum rates of Commonwealth rent assistance will also be increased by 10 per cent from today, with indexation applied on top, as single recipients, with no children, renting on their own, and receiving the maximum rate will get an additional $23 per fortnight in rent assistance. For families with one or two children, their payment will increase by $27.02 per fortnight. Single JobSeeker recipients with an assessed partial capacity to work of zero to 14 hours per week will move to the higher rate of JobSeeker, receiving $849.50 a fortnight (including the energy supplement and pharmaceutical allowance). "This indexation will deliver timely boosts to people receiving allowance payments and pensions, ensuring that these vulnerable cohorts have more money in their pockets for everyday expenses," Social Services Minister Amanda Rishworth said. A full breakdown of the payment changes <a title="can be found here" href="http://www.dss.gov.au/about-the-department/benefits-payments/previous-indexation-rates" target="_blank" rel="noopener">can be found here</a>. Image credits: Shutterstock

Money & Banking

The best exercises to boost your brain health after 60

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/neva-beraud-peigne-1418228">Neva Béraud-Peigné</a>, <a href="https://theconversation.com/institutions/universite-paris-saclay-2174">Université Paris-Saclay</a>; <a href="https://theconversation.com/profiles/alexandra-perrot-1531671">Alexandra Perrot</a>, <a href="https://theconversation.com/institutions/universite-paris-saclay-2174">Université Paris-Saclay</a>, and <a href="https://theconversation.com/profiles/pauline-maillot-1167901">Pauline Maillot</a>, <a href="https://theconversation.com/institutions/universite-paris-cite-4263">Université Paris Cité</a> Have you ever thought about why we have a <a href="https://theconversation.com/fr/topics/cerveau-21903">brain</a>? The obvious answer might be “to think”. But scientist Daniel Wolpert came up with a completely different explanation at the <a href="https://www.ted.com/talks/daniel_wolpert_the_real_reason_for_brains">2011 meeting of the Society for Neuroscience</a>: <blockquote> “We have a brain for one reason and one reason only: to produce adaptable and complex movements” </blockquote> <h2>Use your brain to stay efficient</h2> The brain, in other words, is the orchestra conductor which orders the body’s movements. We call the faculties that allow us to interact with our environment cognitive abilities. These include concentrating, learning, reasoning, adapting and communicating with others. Every one of them is key in enabling us to go about our routine and help us maintain a good lifestyle. So, how can we best take care of our brains so that they can stay as efficient as long as possible? Contrary to popular belief, the brain does not deteriorate continuously with age. Instead, it only sees the number of its brain cells drop and connections deteriorate <a href="https://www.bmj.com/content/344/bmj.d7622">from the age of 45 onwards</a> as part of a normal ageing process. But cerebral plasticity, although reduced, is present until the end of life. Each individual will build up a cognitive reserve throughout their lives. The more positive, rich and stimulating the lifestyle, the more powerful and effective the reserve. In other words, it’s possible to moderate the effects of age on cognition. <h2>The benefits of physical activity on cognitive capacity after 60</h2> In fact, much research shows indeed that physical activity improves cognitive capacity, even after the age of 60. From increased memory, better reactivity to greater planning skills, the <a href="https://www.annualreviews.org/content/journals/10.1146/annurev-clinpsy-072720-014213">benefits are endless</a>. Despite this, few older folks engage in <a href="https://theconversation.com/fr/topics/activite-physique-adaptee-apa-146288">physical education</a> adapted to their bodies on a regular basis. Poor motivation and access to these exercises are some of the factors don’t help. With that in mind, many carers might be tempted to offer older people monotonous, routine activities because of their diminishing physical, cognitive and sensory abilities. And indeed, for a long time, the range of sports on offer and research in this field revolved around the same triptych: gentle gymnastics, walking and yoga. However, you’ll reap more benefits by <a href="https://www-sciencedirect-com.ezproxy.u-paris.fr/science/article/abs/pii/B9780444633279000175">combining different training methods</a>. <h2>Three ingredients to train the brains of senior citizens</h2> Researchers are currently attempting to crack the winning formula that would flex older people’s cognitive, as well as physical muscles. It’ll consist of three main ingredients: First ingredient: complex physical and motor stimulation of at least moderate intensity. Moderate cardio workouts not only improve cardiorespiratory health but also make the brain more <a href="https://www.nature.com/articles/22682">efficient</a>. Overall improved cardiofitness, in turn, allows the brain to receive more oxygen and even to generate <a href="https://www.pnas.org/doi/full/10.1073/pnas.1015950108">new neurons in the hippocampus</a>, where memory is lodged. It therefore makes sense for programmes designed to boost cognitive function to include cardio. But it is also <a href="https://journals.sagepub.com/doi/abs/10.1111/1467-9280.t01-1-01430">necessary to combine them with muscle-strengthening, flexibility and balance exercises to achieve greater benefits</a>. In addition, the <a href="https://www.sciencedirect.com/science/article/abs/pii/S0149763413001012">researchers</a> emphasise the importance of adding situations requiring complex motor skills and coordination, as these would have a significant impact on cognitive functions (e.g. memory, attention and mental flexibility), particularly in the elderly. Second ingredient: fire up those brain cells during exercises Incorporating cognitive stimulation, such as remembering information for a period of time and executing it, anticipating actions, or planning a move, is another winning strategy. When cognitive stimulation is combined with physical activity, it can produce <a href="https://www.tandfonline.com/doi/abs/10.1080/13825585.2011.645010">synergistic effects</a> and, as a result, be more effective on cognitive functions. _Third ingredient: group activities that lead to social interaction. _ Working out as part of a group has been shown to help us <a href="https://journals.plos.org/plosmedicine/article?id=10.1371/journal.pmed.1001756">persevere through it</a>. What this winning formula could look like in practice is still being researched. At present, there are two broad types of exercises that have caught our attention that could help older people stay sharp. <h2>Opting for cooperative and oppositional team sports</h2> Team sports offer much more than just physical exercise sessions. What’s particularly great about them is that they don’t only challenge cardiorespiratory balance, but tap into the whole body’s physical skill-set. Take basketball or handball, for example: to move around the court, dribble or score, balance, coordination and flexibility are essential. Muscular strength is also required for passing, recovering the ball and moving around. These team sports can be suitable even after the age of 60, provided they are properly supervised. From a cognitive point of view, these activities create situations that are always new, rich and stimulating. We call this double combination of stimuli <a href="https://www.tandfonline.com/doi/abs/10.1080/13825585.2011.645010">simultaneous training</a>. A number of researchers have highlighted the importance of this cognitive involvement in team sports and encourage their practice, particularly among the elderly. Recent studies, such as <a href="https://linkinghub.elsevier.com/retrieve/pii/S162748302100129X">the one carried out in 2022</a> by French researchers, have shown that participation in team sports improves short-term visuospatial memory (which enables people, for example, to remember the location of certain objects for a limited period of time) and planning skills in the elderly. <h2>Get your body moving with exergames</h2> Another promising avenue are exergames – video games that require players to move around to play. Named after the contraction of “exercise” and “games”, they grew popular in the 2000s thanks to Nintendo’s Wii and Switch and Microsoft’s Kinect. Exogames have been thought out to exercise different fitness skills, such as balance, endurance, strength, and coordination, while simultaneously stimulating cognitive functions. Among older people, <a href="https://psycnet.apa.org/record/2011-27707-001">several research studies</a> show that this type of training helps to improve many physical and cognitive abilities. In 2020, a new generation of exergames emerged, making use of interactive walls to create an even more immersive gaming experience, such as Neo Xperiences’ Neo-One, Sphery’s ExerCube and Lü’s Aire interactive. In these games combining real and virtual worlds, physical objects (such as balls) and digital objects coexist and interact in real time. A <a href="https://link.springer.com/article/10.1007/s11357-023-00952-w">recent study</a> compared an exergame programme assisted by an immersive wall with a walking and muscle-strengthening programme. Its results suggest that this new generation of exergames may be more effective on cognitive abilities than traditional training. Combining physical and cognitive exercises offers the best chance to keep one’s brain health while keeping fit. This is essential for an active and fulfilling life, whatever your age.<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/237162/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/neva-beraud-peigne-1418228">Neva Béraud-Peigné</a>, Doctorante en sciences du mouvement, <a href="https://theconversation.com/institutions/universite-paris-saclay-2174">Université Paris-Saclay</a>; <a href="https://theconversation.com/profiles/alexandra-perrot-1531671">Alexandra Perrot</a>, Maitre de conférences HDR, <a href="https://theconversation.com/institutions/universite-paris-saclay-2174">Université Paris-Saclay</a>, and <a href="https://theconversation.com/profiles/pauline-maillot-1167901">Pauline Maillot</a>, Maître de conférences en STAPS, <a href="https://theconversation.com/institutions/universite-paris-cite-4263">Université Paris Cité</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/the-best-exercises-to-boost-your-brain-health-after-60-237162">original article</a>. </div>

Body

I’m feeling run down. Why am I more likely to get sick? And how can I boost my immune system?

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/sathana-dushyanthen-1169328">Sathana Dushyanthen</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> It has been a long winter, filled with many viruses and cost-of-living pressures, on top of the usual mix of work, study, life admin and caring responsibilities. Stress is an inevitable part of life. In short bursts, our stress response has evolved as a survival mechanism to help us be more alert in <a href="https://theconversation.com/no-you-cant-blame-all-your-health-issues-on-high-cortisol-heres-how-the-hormone-works-203162">fight or flight situations</a>. But when stress is chronic, it weakens the immune system and makes us more vulnerable to illnesses such as the <a href="https://www.healthline.com/health/can-stress-make-you-sick#:%7E:text=The%20common%20cold&text=Inflammation%20has%20been%20linked%20to,to%20the%20cold%2Dcausing%20germs.">common cold</a>, <a href="https://journals.lww.com/psychosomaticmedicine/abstract/1999/03000/psychological_stress,_cytokine_production,_and.9.aspx">flu</a> and <a href="https://onlinelibrary.wiley.com/doi/abs/10.1002/smi.3017">COVID</a>. <h2>Stress makes it harder to fight off viruses</h2> When the immune system starts to break down, a virus that would normally have been under control starts to flourish. Once you begin to feel sick, the <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4465119/">stress response</a> rises, making it harder for the immune system to fight off the disease. You may be sick more often and for longer periods of time, without enough immune cells primed and ready to <a href="https://link.springer.com/chapter/10.1007/978-3-030-16996-1_6">fight</a>. In the 1990s, American psychology professor Sheldon Cohen and his colleagues conducted a number of <a href="https://www.cmu.edu/common-cold-project/">studies</a> where healthy people were exposed to an upper respiratory infection, through drops of virus placed directly into their <a href="https://www.nejm.org/doi/full/10.1056/NEJM199108293250903">nose</a>. These participants were then quarantined in a hotel and monitored closely to determine who became <a href="https://theconversation.com/stress-less-it-might-protect-you-from-covid-153361">ill</a>. One of the most important factors predicting who got sick was prolonged psychological <a href="https://journals.sagepub.com/doi/full/10.1177/1745691620942516">stress</a>. <h2>Cortisol suppresses immunity</h2> “Short-term stress” is stress that lasts for a period of minutes to hours, while “chronic stress” persists for several hours per day for <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5964013/#:%7E:text=Therefore%2C%20a%20major%20distinguishing%20characteristic,weeks%20or%20months%20%5B9%5D.">weeks or months</a>. When faced with a perceived threat, psychological or physical, the hypothalamus region of the brain sets off an alarm system. This signals the release of a surge of hormones, including adrenaline and <a href="https://www.embopress.org/doi/full/10.15252/msb.20209510">cortisol</a>. <figure class="align-center "><img src="https://images.theconversation.com/files/616892/original/file-20240903-18-blrqoz.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/616892/original/file-20240903-18-blrqoz.png?ixlib=rb-4.1.0&q=45&auto=format&w=600&h=472&fit=crop&dpr=1 600w, https://images.theconversation.com/files/616892/original/file-20240903-18-blrqoz.png?ixlib=rb-4.1.0&q=30&auto=format&w=600&h=472&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/616892/original/file-20240903-18-blrqoz.png?ixlib=rb-4.1.0&q=15&auto=format&w=600&h=472&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/616892/original/file-20240903-18-blrqoz.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&h=593&fit=crop&dpr=1 754w, https://images.theconversation.com/files/616892/original/file-20240903-18-blrqoz.png?ixlib=rb-4.1.0&q=30&auto=format&w=754&h=593&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/616892/original/file-20240903-18-blrqoz.png?ixlib=rb-4.1.0&q=15&auto=format&w=754&h=593&fit=crop&dpr=3 2262w" alt="Human brain illustration" /><figcaption>The hypothalamus sets off an alarm system in response to a real or perceived threat. <a class="source" href="https://www.shutterstock.com/image-illustration/hypothalamus-causes-vasoconstriction-illustration-medical-brain-435142264">stefan3andrei/Shutterstock</a></figcaption></figure> In a typical stress response, <a href="https://www.sciencedirect.com/science/article/abs/pii/S147149060300173X">cortisol levels</a> quickly increase when stress occurs, and then rapidly drop back to normal once the stress has subsided. In the short term, cortisol suppresses inflammation, to ensure the body has enough energy available to respond to an <a href="https://www.frontiersin.org/journals/immunology/articles/10.3389/fimmu.2019.00245/full">immediate threat</a>. But in the longer term, chronic stress can be harmful. A Harvard University study <a href="https://jamanetwork.com/journals/jamapsychiatry/fullarticle/2796097">from 2022</a> showed that people suffering from psychological distress in the lead up to their COVID infection had a greater chance of experiencing long COVID. They <a href="https://jamanetwork.com/journals/jamapsychiatry/fullarticle/2796097">classified</a> this distress as depression, probable anxiety, perceived stress, worry about COVID and loneliness. Those suffering distress had close to a <a href="https://jamanetwork.com/journals/jamapsychiatry/fullarticle/2796097">50% greater risk</a> of long COVID compared to other <a href="https://theconversation.com/being-stressed-out-before-you-get-covid-increases-your-chances-of-long-covid-heres-why-190649">participants</a>. Cortisol has been shown to be high in the most severe cases of <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7102614/">COVID</a>. <h2>Stress causes inflammation</h2> <a href="https://stories.uq.edu.au/imb/the-edge/inflammation/what-is-inflammation/index.html">Inflammation</a> is a short-term reaction to an injury or infection. It is responsible for trafficking immune cells in your body so the right cells are present in the right locations at the right times and at the right <a href="https://link.springer.com/article/10.1007/s12026-014-8517-0">levels</a>. The immune cells also store a memory of that threat to respond faster and more effectively the next <a href="https://theconversation.com/being-stressed-out-before-you-get-covid-increases-your-chances-of-long-covid-heres-why-190649">time</a>. Initially, circulating immune cells detect and flock to the site of <a href="https://www.nature.com/articles/ni1275">infection</a>. Messenger proteins, known as pro-inflammatory cytokines, are released by immune cells, to signal the danger and recruit help, and our immune system responds to neutralise the <a href="https://stories.uq.edu.au/imb/the-edge/inflammation/what-is-inflammation/index.html">threat</a>. During this response to the infection, if the immune system produces too much of these inflammatory chemicals, it can trigger symptoms such as nasal congestion and runny <a href="https://journals.sagepub.com/doi/full/10.1177/1745691620942516">nose</a>. <h2>What about chronic stress?</h2> Chronic stress causes persistently high cortisol secretion, which remains high even in the absence of an immediate <a href="https://theconversation.com/no-you-cant-blame-all-your-health-issues-on-high-cortisol-heres-how-the-hormone-works-203162">stressor</a>. The immune system becomes desensitised and unresponsive to this <a href="https://www.sciencedirect.com/science/article/abs/pii/S1043661816307435">cortisol suppression</a>, increasing low-grade “silent” inflammation and the production of pro-inflammatory cytokines (the messenger proteins). Immune cells become exhausted and start to <a href="https://www.fxmedicine.com.au/blog-post/adrenal-immune-connection">malfunction</a>. The body loses the ability to turn down the inflammatory <a href="https://journals.sagepub.com/doi/full/10.1177/1745691620942516">response</a>. Over time, the immune system changes the way it responds by reprogramming to a “<a href="https://www.unimelb.edu.au/newsroom/news/2021/april/how-stress-can-stop-immune-cells-in-their-tracks">low surveillance mode</a>”. The immune system misses early opportunities to destroy threats, and the process of recovery can take <a href="https://theconversation.com/being-stressed-out-before-you-get-covid-increases-your-chances-of-long-covid-heres-why-190649">longer</a>. <h2>So how can you manage your stress?</h2> We can actively strengthen our immunity and natural defences by managing our <a href="https://theconversation.com/stuck-in-fight-or-flight-mode-5-ways-to-complete-the-stress-cycle-and-avoid-burnout-or-depression-218599">stress levels</a>. Rather than letting stress build up, try to address it early and frequently by: 1) Getting enough sleep Getting enough sleep reduces <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3132857/">cortisol levels</a> and inflammation. During sleep, the immune system <a href="https://link.springer.com/chapter/10.1007/978-1-4939-6578-6_12">releases</a> <a href="https://theconversation.com/sleep-wont-cure-the-coronavirus-but-it-can-help-our-bodies-fight-it-134674">cytokines</a>, which help fight infections and inflammation. 2) Taking regular exercise Exercising helps the lymphatic system (which balances bodily fluids as part of the immune system) circulate and allows immune cells to monitor for threats, while sweating flushes <a href="https://www.healthline.com/nutrition/does-exercise-boost-immune-system">toxins</a>. Physical activity also lowers stress hormone levels through the release of positive brain <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7387807/">signals</a>. 3) Eating a healthy diet Ensuring your diet contains enough nutrients – such as the B vitamins, and the full breadth of minerals like magnesium, iron and zinc – during times of stress has a positive impact on overall stress <a href="https://www.ncbi.nlm.nih.gov/pubmed/22782571">levels</a>. Staying hydrated helps the body to flush out <a href="https://theconversation.com/a-strong-immune-system-helps-ward-off-colds-and-flus-but-its-not-the-only-factor-99512">toxins</a>. 4) Socialising and practising meditation or mindfulness These activities increase endorphins and serotonin, which improve mood and have <a href="https://www.sciencedirect.com/science/article/pii/S2949834123000351">anti-inflammatory effects</a>. Breathing exercises and meditation stimulate the parasympathetic nervous system, which calms down our stress responses so we can “reset” and reduce <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4940234/">cortisol levels</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/237456/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/sathana-dushyanthen-1169328">Sathana Dushyanthen</a>, Academic Specialist & Lecturer in Cancer Sciences & Digital Health| Superstar of STEM| Science Communicator, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</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/im-feeling-run-down-why-am-i-more-likely-to-get-sick-and-how-can-i-boost-my-immune-system-237456">original article</a>. </div>

Body

Cash boost for millions of Aussies as indexation kicks in

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

Money & Banking

It’s tax time and scammers are targeting your myGov account. Here’s how to stay safe

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/cassandra-cross-122865">Cassandra Cross</a>, <a href="https://theconversation.com/institutions/queensland-university-of-technology-847">Queensland University of Technology</a> For many, tax time is an exciting part of the year – there’s the potential for a refund. However, it’s also an attractive time for fraudsters looking for ways to get money and deceive unsuspecting victims. Each year Australians lose large amounts of money to scams. In 2023, Australians reported <a href="https://www.accc.gov.au/media-release/scam-losses-decline-but-more-work-to-do-as-australians-lose-27-billion">losses of more than A$2.7 billion</a>. While this is a slight reduction from the $3.1 billion in 2022, there are still millions of victims who’ve suffered at the hands of scammers. Impersonation scams are one common approach. Scamwatch reports that in 2023, <a href="https://www.scamwatch.gov.au/news-alerts/shopping-for-online-bargains-this-black-friday-weekend-make-sure-its-the-real-deal">70% of reports to them</a> involved impersonation. A large number of these were linked to the Australian Taxation Office (ATO) and myGov. <h2>What is an impersonation scam?</h2> Impersonation scams are what they sound like: when an offender pretends to be someone or something they are not. Offenders may pretend to be family members or friends in our contact lists. In many cases, they will say they’re from an organisation such as a bank or a well-known retailer, or a government department – like the ATO. Offenders take on the identity of a known and trusted organisation to increase the chances of success. While we may ignore communications from unknown entities and strangers, we’re more likely to engage with what’s familiar. Additionally, the ATO has a powerful status as a government agency, and we are unlikely to ignore its messages – especially at tax time. <h2>What are they trying to get out of my myGov account?</h2> myGov is the gateway to a range of government services, including Medicare, Centrelink, My Health Record, the National Disability Insurance Scheme, and of course, the ATO. Being able to log in to myGov gives offenders access to a wide range of your personal details. This can help them build a fuller profile of you to potentially commit identity theft (such as opening new accounts in your name). There’s also the potential for direct fraud. With access to myGov, offenders can change your bank account details and redirect any refunds into their accounts, whether from the ATO or other linked services. They can even submit false tax returns, medical claims or other forms to obtain fraudulent funds. As the legitimate owner of the account, you may not immediately notice this. <h2>What does a myGov scam look like?</h2> In most instances, a myGov scam will look like one of the many phishing attempts we all receive on a daily basis. While each approach can be worded differently, their desired outcome is the same: to acquire your personal information. Fraudsters are sending text messages and emails pretending to be from the ATO, advising you there’s a refund available if you click the provided link. Another approach is to flag a “problem” with your tax return or bank account, and direct you to take immediate action via a link. Creating a sense of urgency can trick users into acting in the moment, without thinking through the request. The text or email may also be very neutral, simply stating there’s a new message waiting – with a link to where you can read it. Regardless of what the message says, the goal is to direct you to a website that looks genuine, but is fake. If you enter your myGov details into such a fake site, the offender can capture your login details and use them to log into your actual myGov account. <h2>What to do if you’ve been a victim?</h2> If you have clicked on a scam link and provided your personal details, there are steps you can take. Change your password and review your account settings if you still have access to your myGov account. Check your bank accounts, to see what, if anything, has been lost. Contact your bank or financial institution immediately if you notice any withdrawals or suspicious transactions. Contact any other organisation linked to your myGov account to see if any unauthorised actions have been taken. For anyone who has lost personal information and experienced identity crime, <a href="https://www.idcare.org/">IDCARE is the national support centre</a> for identity crime victims. They will be able to assist with a personalised response plan to your specific situation. <h2>How do I keep my account safe?</h2> Never click on links in text messages or emails that direct you to log in to your accounts. Always access your accounts independently, through details you have found independently of any text or email. Review your security settings. There have been recent reports of people’s myGov accounts being targeted <a href="https://www.theguardian.com/australia-news/article/2024/aug/01/ato-mygov-tax-return-refund-scam">with repeated login attempts</a>. Using your unique eight-digit myGov username for logging in can be safer than <a href="https://my.gov.au/en/about/help/mygov-website/help-using-your-account/manage-sign-in-details#updatingyourusername">using your email address</a>. Enable <a href="https://theconversation.com/what-is-multi-factor-authentication-and-how-should-i-be-using-it-191591">multi-factor authentication</a> where possible. myGov uses two-factor authentication in the form of a text message in addition to an online login. While this is not foolproof, it offers an additional layer of protection and can stop offenders accessing your account with only partial pieces of your information. Be vigilant on all communications. Always keep in mind that all may not be what it seems and the person you are communicating with may not be who they say they are. It is okay to be sceptical and do your own checks to verify details of what is presented to you. Remember, fraudsters thrive on the silence and shame of those who respond or fall victim to their scams. We need to communicate openly about these schemes and talk to family and friends, to increase everyone’s knowledge and awareness.<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/235785/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/cassandra-cross-122865">Cassandra Cross</a>, Associate Dean (Learning & Teaching) Faculty of Creative Industries, Education and Social Justice, <a href="https://theconversation.com/institutions/queensland-university-of-technology-847">Queensland University of Technology</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/its-tax-time-and-scammers-are-targeting-your-mygov-account-heres-how-to-stay-safe-235785">original article</a>. </div>

Money & Banking

7 health investments that are tax deductible

When someone says “investment”, we tend to think of money and wealth creation: property, shares, superannuation, savings accounts and so on. However, an investment is the contribution of something you value towards the anticipation of growing that value. That contribution could be money or it could be in the form of time, skills, knowledge, or labour. Similarly, the anticipated growth in value could be in monetary terms or towards growth in business, education, research, or even health – both your own and others’. Just like money matters and tax affairs require a wholistic view, so too does health. Which is why when it comes to getting the most out of health investments, it’s crucial to consider physical, mental and financial health. Many, such as those listed below, happen to be tax deductible too: <ol> <li>Safety equipment and education</li> </ol> Workplace safety is perhaps the most crucial of all health investments. What form that takes can differ enormously between professions. Yet if it is important for doing your job safely, then generally it will be tax deductible. This may be protective clothing for tradespeople, medical workers, and industrial machinists, or advanced driving/road safety training courses for taxi drivers and couriers. Sun protection for jobs that take place largely or exclusively outdoors is also generally deductible – but use those sunglasses or sunscreen at home as well, and you’ll only be able to claim the work-related portion of the cost. <ol start="2"> <li>Insurances</li> </ol> Certain insurance premiums are typically tax deductible. Professional indemnity insurance is a legitimate (and often essential) business expense in many jobs, such as for doctors and journalists. Income protection insurance against severe illness or injury may also be deductible. Plus, having private health insurance also delivers a tax benefit when lodging your tax return. <ol start="3"> <li>Professional coaching</li> </ol> Professional coaching can be useful for mental health and clarity, both over existing work situations and career progression or transition planning. Provided this coaching is strictly professional and relates to your ability to earn an income, it may be tax deductible. <ol start="4"> <li>Accounting and financial advice </li> </ol> Good financial health goes hand in hand with good advice about money matters. Most Aussies know that the cost of managing their tax affairs is deductible. Less well known, though, is that financial advice expenses are also generally deductible. Busy accountants can forget to ask if you incurred these costs when going through your expenses at tax time, so be sure to flag it with them. <ol start="5"> <li>Industry-specific deductions</li> </ol> In some instances, health-related expenses may be tax deductible because they are required within a particular job. For instance, models, athletes and fitness instructors may be able to claim gym memberships and nutritionist visits; dieticians and chefs may be able to claim healthy eating books and subscriptions. Check the <a href="https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/occupation-and-industry-specific-guides">ATO’s Occupation and industry-specific guides</a> to see relevant deductions in your line of work. <ol start="6"> <li>Medical checks</li> </ol> If you require compulsory medical assessments and check-ups as part of your job, these may be tax deductible. Examples include health screenings for pilots, miners, and emergency workers. COVID-19 tests to determine whether you can attend your workplace may also be deductible. Vaccinations, however, are deemed by the ATO to be private expenses. <ol start="7"> <li>Donations</li> </ol> Many health organisations are registered charities and not-for-profits, making donations to them deductible. Often, people donate to health charities because of personal experience, either as a patient/survivor themselves or having known someone who was. So not only are you investing in critical research and future patient support as a means of giving back, but you can also claim a tax deduction as a reward for donations over $2. Proof of purchase is key For any expense to be tax deductible, it must be necessary for work purposes and have come out of your own pocket, not been paid for or reimbursed by your employer. Don’t forget to claim depreciation of work-related equipment over subsequent years. These are extra dollars in your pocket to offset the cost of their eventual replacement. And be sure to keep copies of receipts for your purchases to prove your expenses – both now and in the future. Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a> Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754. Image credits: Shutterstock

Money & Banking

"Dignified retirement": Aussies set for $21k cash boost

The average Australian is set to receive a $21,000 cash boost following a change to superannuation contributions. From July the superannuation guarantee increased from 11 to 11.5 per cent, meaning that the compulsory superannuation payments made by employers have risen. This means that an average worker earning around $72,000 would pocket an extra $21,000 at retirement as a result of the permanent increase, according to an analysis by the Treasury Department. “Wages growth and tax cuts are putting cash in people’s pockets now, and our increase to the super guarantee will put cash in people’s pockets for the future,” Treasurer Jim Chalmers said. “This will make a meaningful difference for millions of Australians who deserve a dignified retirement. “The superannuation guarantee has increased three times under our government.” The government has been progressively increasing the super guarantee rate until it hits 12 per cent, which will come into effect from July 2025. The concessional super contributions cap - the amount that you can invest into your super each year without copping extra tax and includes employer payments - also increased on July 1, up from $27,500 to $30,000 per year. In addition to this, the after-tax super or non-concessional super contributions cap has also been increased from $110,000 to $120,000. Image: Shutterstock

Retirement Income

Tastes from our past can spark memories, trigger pain or boost wellbeing. Here’s how to embrace food nostalgia

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/megan-lee-490875">Megan Lee</a>, <a href="https://theconversation.com/institutions/bond-university-863">Bond University</a>; <a href="https://theconversation.com/profiles/doug-angus-1542552">Doug Angus</a>, <a href="https://theconversation.com/institutions/bond-university-863">Bond University</a>, and <a href="https://theconversation.com/profiles/kate-simpson-1542551">Kate Simpson</a>, <a href="https://theconversation.com/institutions/bond-university-863">Bond University</a> Have you ever tried to bring back fond memories by eating or drinking something unique to that time and place? It could be a Pina Colada that recalls an island holiday? Or a steaming bowl of pho just like the one you had in Vietnam? Perhaps eating a favourite dish reminds you of a lost loved one – like the sticky date pudding Nanna used to make? If you have, you have tapped into <a href="https://www.tandfonline.com/doi/full/10.1080/02699931.2022.2142525">food-evoked nostalgia</a>. As researchers, we are exploring how eating and drinking certain things from your past may be important for your mood and mental health. <h2>Bittersweet longing</h2> First named in 1688 by Swiss medical student, <a href="https://www.jstor.org/stable/44437799">Johannes Hoffer</a>, <a href="https://compass.onlinelibrary.wiley.com/doi/10.1111/spc3.12070">nostalgia</a> is that bittersweet, sentimental longing for the past. It is experienced <a href="https://journals.sagepub.com/doi/10.1111/j.1467-8721.2008.00595.x">universally</a> across different cultures and lifespans from childhood into older age. But nostalgia does not just involve positive or happy memories – we can also experience nostalgia for <a href="https://psycnet.apa.org/doiLanding?doi=10.1037%2F0022-3514.91.5.975">sad and unhappy moments</a> in our lives. In the <a href="https://psycnet.apa.org/doiLanding?doi=10.1037%2Femo0000817">short and long term</a>, nostalgia can positively impact our health by improving <a href="https://psycnet.apa.org/doiLanding?doi=10.1037%2Fa0025167">mood</a> and <a href="https://psycnet.apa.org/doiLanding?doi=10.1037%2Femo0000817">wellbeing</a>, fostering <a href="https://psycnet.apa.org/doiLanding?doi=10.1037%2Fa0017597">social connection</a> and increasing quality of life. It can also trigger feelings of <a href="https://psycnet.apa.org/doiLanding?doi=10.1037%2Femo0000817">loneliness or meaninglessness</a>. We can use nostalgia to <a href="https://psycnet.apa.org/doiLanding?doi=10.1037%2Fa0025167">turn around a negative mood</a> or enhance our sense of <a href="https://psycnet.apa.org/doiLanding?doi=10.1037%2Femo0000817">self, meaning and positivity</a>. Research suggests nostalgia alters activity in the <a href="https://academic.oup.com/scan/article/17/12/1131/6585517">brain regions associated with reward processing</a> – the same areas involved when we seek and receive things we like. This could explain the <a href="https://www.sciencedirect.com/science/article/abs/pii/S2352250X22002445?via%3Dihub">positive feelings</a> it can bring. Nostalgia can also increase feelings of loneliness and sadness, particularly if the memories highlight dissatisfaction, grieving, loss, or wistful feelings for the past. This is likely due to activation of <a href="https://www.sciencedirect.com/science/article/pii/S2352250X22002445?casa_token=V31ORDWcsx4AAAAA:Vef9hiwUz9506f5PYGsXH-JxCcnsptQnVPNaAGares2xTU5JbKSHakwGpLxSRO2dNckrdFGubA">brain areas</a> such as the amygdala, responsible for processing emotions and the prefrontal cortex that helps us integrate feelings and memories and regulate emotion. <h2>How to get back there</h2> There are several ways we can <a href="https://psycnet.apa.org/fulltext/2006-20034-013.html">trigger</a> or tap into nostalgia. Conversations with family and friends who have shared experiences, unique objects like photos, and smells can <a href="https://www.sciencedirect.com/science/article/abs/pii/S2352250X23000076">transport us back</a> to old times or places. So can a favourite song or old TV show, reunions with former classmates, even social media <a href="https://www.theverge.com/2015/3/24/8284703/facebook-on-this-day-nostalgia-recap">posts and anniversaries</a>. What we eat and drink can trigger <a href="https://www.emerald.com/insight/content/doi/10.1108/QMR-06-2012-0027/full/html">food-evoked nostalgia</a>. For instance, when we think of something as “<a href="https://theconversation.com/health-check-why-do-we-crave-comfort-food-in-winter-118776">comfort food</a>”, there are likely elements of nostalgia at play. Foods you found comforting as a child can evoke memories of being cared for and nurtured by loved ones. The form of these foods and the stories we tell about them may have been handed down through generations. Food-evoked nostalgia can be very powerful because it engages multiple senses: taste, smell, texture, sight and sound. The sense of <a href="https://www.tandfonline.com/doi/full/10.1080/09658211.2013.876048?casa_token=wqShWbRXJaYAAAAA%3AqJabgHtEbPtEQp7qHnl7wOb527bpGxzIJ_JwQX8eAyq1IrM_HQFIng8ELAMyuoFoeZyiX1zeJTPf">smell</a> is closely linked to the limbic system in the brain responsible for emotion and memory making food-related memories particularly vivid and emotionally charged. But, food-evoked nostalgia can also give rise to <a href="https://onlinelibrary.wiley.com/doi/full/10.1002/hpja.873">negative memories</a>, such as of being forced to eat a certain vegetable you disliked as a child, or a food eaten during a sad moment like a loved ones funeral. Understanding why these foods <a href="https://www.tandfonline.com/doi/full/10.1080/02699931.2022.2142525?casa_token=16kAPHUQTukAAAAA%3A9IDvre8yUT8UsuiR_ltsG-3qgE2sdkIFgcrdH3T5EYbVEP9JZwPcsbmsPLT6Kch5EFFs9RPsMTNn">evoke negative memories</a> could help us process and overcome some of our adult food aversions. Encountering these foods in a positive light may help us reframe the memory associated with them. <h2>What people told us about food and nostalgia</h2> Recently <a href="https://onlinelibrary.wiley.com/doi/full/10.1002/hpja.873">we interviewed eight Australians</a> and asked them about their experiences with food-evoked nostalgia and the influence on their mood. We wanted to find out whether they experienced food-evoked nostalgia and if so, what foods triggered pleasant and unpleasant memories and feelings for them. They reported they could use foods that were linked to times in their past to manipulate and influence their mood. Common foods they described as particularly nostalgia triggering were homemade meals, foods from school camp, cultural and ethnic foods, childhood favourites, comfort foods, special treats and snacks they were allowed as children, and holiday or celebration foods. One participant commented: <blockquote> I guess part of this nostalgia is maybe […] The healing qualities that food has in mental wellbeing. I think food heals for us. </blockquote> Another explained <blockquote> I feel really happy, and I guess fortunate to have these kinds of foods that I can turn to, and they have these memories, and I love the feeling of nostalgia and reminiscing and things that remind me of good times. </blockquote> Understanding food-evoked nostalgia is valuable because it provides us with an insight into how our sensory experiences and emotions intertwine with our memories and identity. While we know a lot about how food triggers nostalgic memories, there is still much to learn about the specific brain areas involved and the differences in food-evoked nostalgia in different cultures. In the future we may be able to use the science behind food-evoked nostalgia to help people experiencing dementia to tap into lost memories or in psychological therapy to help people reframe negative experiences. So, if you are ever feeling a little down and want to improve your mood, consider turning to one of your favourite comfort foods that remind you of home, your loved ones or a holiday long ago. Transporting yourself back to those times could help turn things around.<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/232826/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/megan-lee-490875">Megan Lee</a>, Senior Teaching Fellow, Psychology, <a href="https://theconversation.com/institutions/bond-university-863">Bond University</a>; <a href="https://theconversation.com/profiles/doug-angus-1542552">Doug Angus</a>, Assistant Professor of Psychology, <a href="https://theconversation.com/institutions/bond-university-863">Bond University</a>, and <a href="https://theconversation.com/profiles/kate-simpson-1542551">Kate Simpson</a>, Sessional academic, <a href="https://theconversation.com/institutions/bond-university-863">Bond 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/tastes-from-our-past-can-spark-memories-trigger-pain-or-boost-wellbeing-heres-how-to-embrace-food-nostalgia-232826">original article</a>. </div>

Mind

10 ways to make those stage 3 tax cuts count

You’re already used to living without these extra dollars. So, you won’t miss them by continuing to do so. Consider the various options available and which best suits your circumstances, then devise a plan of action to put that money to work. <ol> <li>Check tax brackets</li> </ol> Not only are some income tax rates falling, but the thresholds for others are increasing - potentially pushing you into a lower tax bracket. For example, Alice currently earns $130,000 and this tips her into marginal tax rate of 37 per cent. The Stage 3 changes will increase the 37 per cent tax threshold to $135,001. As such, Alice drops to a lower tax bracket. Not only this, her new tax bracket will have its marginal tax rate reduced from 32.5 per cent to 30 per cent. It’s a double win for Alice! This shouldn’t change your money habits but is still good to know. <ol start="2"> <li>Update your plan</li> </ol> Check <a href="https://www.ato.gov.au/about-ato/new-legislation/in-detail/individuals/individual-income-tax-rates-and-threshold-changes">what your new tax rate will be</a> to calculate your new take-home pay (or simply look at your first full pay cycle in the new financial year). Plot your new income into your household spending and investment plan. Now you know what you have to play with. <ol start="3"> <li>Check your pay</li> </ol> Most employers use digital payroll systems which automatically update tax rates. But not all do. And even then, mistakes can happen. From July, double check that your pay is adjusted correctly. If you notice a mistake, speak up – not only will you and your colleagues benefit, but you could save your employer from costly penalties for an innocent mistake. <ol start="4"> <li>Monitor expenses</li> </ol> Don’t let ballooning expenses wipe out any tax cut gains. Avoid pre-spending those gains too. The additional income is spaced out over each pay; it’s not a lump sum you can blow on a spending spree. <ol start="5"> <li>Automatic redirects</li> </ol> Consider setting up an automated redirect of the difference in your pay as soon as it hits your account. The money could be diverted into a high-interest savings account or used to top up your emergency fund. <ol start="6"> <li>Super contributions</li> </ol> Tax cut cash can be used in combination with super contribution rules to supercharge retirement earnings. Low income earners may be eligible for <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/government-super-contributions/super-co-contribution">government co-contributions</a> while <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/spouse-super-contributions">spouse contributions</a> can offer further tax benefits. This may be particularly useful for anyone <a href="https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap#ato-Carryforwardunusedcontributioncapamounts">trying to catch-up</a> after time out of the workforce (e.g., raising kids or caring for relatives) or repaying <a href="https://www.ato.gov.au/about-ato/research-and-statistics/in-detail/super-statistics/early-release/covid-19-early-release-of-super">early withdrawals during COVID</a>. <ol start="7"> <li>Pay down debt</li> </ol> Every extra dollar spent paying off debt will save on future interest and clear it faster. Prioritise higher interest debts (like credit cards). Consider consolidating multiple debts into one with a lower rate (e.g., your mortgage) to reduce total interest and simplify repayments. <ol start="8"> <li>Invest in yourself</li> </ol> The old saying goes “you’ve got to spend money to make money”. Nowhere are the returns typically better than from self improvement. That could be undertaking new qualifications or additional training, enabling you to secure pay rises or transition to a higher-paying industry. Or it may be investing in your health and wellbeing, to reduce medical expenses, improve job prospects and productivity, and enhance your decision-making abilities (including about money matters). <ol start="9"> <li>Lodge returns promptly</li> </ol> This applies to every tax year: the sooner you lodge your tax return, the sooner you access your tax refund. Even if you’re facing a tax bill, getting it done sooner means less interest accruing and no late payment penalties. <ol start="10"> <li>Revisit strategies</li> </ol> While making changes to incorporate these tax cuts, take the opportunity to re-evaluate your overall finances. Revisit investment strategies to ensure they are delivering optimal returns. Check superannuation thresholds and performance. Scrutinise total tax liabilities (for instance, lower tax rates may mean you won’t qualify for the same level of tax deductions). Make updates where necessary. Keeping on top of your finances will mean better bang for your buck now while streamlining your affairs in future years. Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a> Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754. Image credits: Shutterstock

Money & Banking

"Tax the boomers": Outrage over elderly couple's complaint after $1m Lotto win

A "greedy" elderly couple have been rinsed online after complaining about losing their age pension payments after they won the Lotto. The couple, aged 73 and 67, wrote into <a href="https://www.smh.com.au/money/super-and-retirement/we-won-the-lottery-but-lost-our-pension-could-we-have-prevented-this-20240702-p5jqga.html" target="_blank" rel="noopener">Sydney Morning Herald</a>'s financial advice column with Noel Whittaker to ask how they could've prevented losing the government funds and still kept hold of their million-dollar winnings. The couple's submission read, "We are a couple... both retired and receiving the full aged pension. We recently won $1,000,000 in the lottery and have placed that money in a basic interest-bearing savings account with our bank." "We intend to use that money to buy a new house and sell our existing one but may just renovate. The windfall has stopped our pension completely until we spend the money, which is all good and well. But could we have prevented the pension loss in any way?" Whittaker responded that the couple should consider themselves extremely fortunate and enjoy the money, saying they "could have a far better lifestyle living off capital instead of relying on welfare". He also urged the couple not "spend to get a pension". The boomers' questions quickly drew attention online, with many flocking to Facebook comments to slam the couple for their "greed". One person wrote, "If you won the lotto, why would you want the pension?", while another added, "Ah yes, the call of the boomers everywhere, 'I have millions but where's my pension money?'" Others said the Lotto winners should consider themselves lucky they are now able to provide for themselves, with one person writing, "Pension is a support system to allow you to survive without/reduced work in retirement. If you are a multimillionaire then you don't need it." Another person echoed the sentiment, saying, "Wow, what entitlement. The pension is a safety net, if you don’t qualify for it think yourself lucky." Other social media users simply shared their outrage towards the boomer generation, as one frustrated person wrote, "Won a million and whinging they can't scam the taxpayers, what self-centered arrogance", while another added, "Tax the boomers! No more handouts." Image credits: Shutterstock <div class="x6s0dn4 x3nfvp2" style="font-family: inherit; align-items: center; display: inline-flex; min-width: 604px;"> <ul class="html-ul xe8uvvx xdj266r x4uap5 x18d9i69 xkhd6sd x1n0m28w x78zum5 x1wfe3co xat24cr xsgj6o6 x1o1nzlu xyqdw3p" style="list-style: none; margin: 0px -8px 0px 4px; padding: 3px 0px 0px; display: flex; min-height: 15px; line-height: 12px; caret-color: #1c1e21; color: #1c1e21; font-family: system-ui, -apple-system, BlinkMacSystemFont, '.SFNSText-Regular', sans-serif; font-size: 12.000001px;" aria-hidden="false"> <li class="html-li xe8uvvx xdj266r xat24cr xexx8yu x4uap5 x18d9i69 xkhd6sd x1rg5ohu x1emribx x1i64zmx" style="list-style: none; display: inline-block; padding: 0px; margin: 0px 8px;"> </li> </ul> </div>

Retirement Income

Why you should expect to pay more tourist taxes – even though the evidence for them is unclear

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/rhys-ap-gwilym-1531623">Rhys ap Gwilym</a>, <a href="https://theconversation.com/institutions/bangor-university-1221">Bangor University</a> and <a href="https://theconversation.com/profiles/linda-osti-1431286">Linda Osti</a>, <a href="https://theconversation.com/institutions/bangor-university-1221">Bangor University</a> In April 2024, Venice began its controversial experiment to <a href="https://www.timeout.com/news/venice-will-charge-tourists-5-to-enter-the-city-from-next-year-090823">charge day trippers</a> €5 (£4.30) to visit the city on some of the busiest days of the year. But it’s not just the lagoon city, with its <a href="https://www.bbc.co.uk/travel/article/20230928-venices-new-5-entry-fee-explained#:%7E:text=Over%20the%20past%20three%20decades%2C%20Venice%20has%20become,thirds%20of%20visitors%20come%20just%20for%20the%20day.">30 million visitors</a> a year which is interested in trying out new tourism taxes. In the UK, a council in the county of Kent <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Ftheconversationuk.cmail20.com%2Ft%2Fr-l-tiuhhult-iukktlluuk-o%2F&data=05%7C02%7Cr.a.gwilym%40bangor.ac.uk%7C39ac5db833674c1a026508dc63a24fa7%7Cc6474c55a9234d2a9bd4ece37148dbb2%7C0%7C0%7C638494795990617858%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=D6oVizx3pFoiwRaTcKaakQ079%2FIQx86jcbFpj2%2FS0RQ%3D&reserved=0">has recommended</a> introducing a tourism tax on overnight stays in the county. In Scotland, it seems likely that <a href="https://edinburgh.org/planning/local-information/visitor-levy-for-edinburgh/#:%7E:text=The%20Edinburgh%20Visitor%20Levy%2C%20otherwise%20referred%20to%20as,would%20then%20be%20invested%20back%20into%20the%20city.">visitors to Edinburgh</a> will be paying a fee by 2026, and the Welsh government <a href="https://www.walesonline.co.uk/news/wales-news/welsh-government-announces-tourists-pay-26591498">plans to introduce</a> similar legislation later this year. Such taxes may seem new to the UK, but there are more than 60 destinations around the world where this type of tax is already in place. These vary from a nationwide tax in Iceland to various towns across the US. Some have been in place for a long time (France was the <a href="https://www.impots.gouv.fr/taxe-de-sejour">first in 1910</a>), but most were introduced during the last decade or two. Before the pandemic really struck (and tourism was put on hold), 2020 was described by one newspaper as the <a href="https://www.telegraph.co.uk/travel/news/tourist-tax-amsterdam-venice/">“year of the tourist tax”</a>, as Amsterdam joined an ever-growing list of destinations, which includes Paris, Malta and Cancun, to charge visitors for simply visiting. Introducing these tourist taxes has often been controversial, with industry bodies <a href="https://www.bbc.co.uk/news/uk-wales-62707152">voicing concerns</a> about the potential impacts on the tourist trade. And it appears that the link between such levies and visitor numbers is not simple, with several studies reaching different conclusions. For example, some have suggested that tourism levies have hindered <a href="https://www-sciencedirect-com.bangor.idm.oclc.org/science/article/pii/S0261517704000238">international tourism in the Balearics</a> and <a href="https://journals-sagepub-com.bangor.idm.oclc.org/doi/pdf/10.1177/00472875211053658">the Maldives</a>, and that they may dissuade people from participating in <a href="https://eprints.bournemouth.ac.uk/35087/1/ADEDOYIN%2C%20Festus%20Fatai_Ph.D._2020.pdf">domestic tourism</a>. Yet in one of the world’s most popular tourism spots with a levy, Barcelona, visitor numbers have <a href="https://groupnao.com/wp-content/uploads/2020/11/TOURISM-TAXES-BY-DESIGN-NOV12-2020_rettet-compressed-2.pdf">consistently risen</a>, with hotel guests increasing from 7.1 million in 2013 to 9.5 million in 2019. In fact, the relationship between a visitor levy and tourist flow is so complex that there is no unified view, even within the same country. Italy has been one of the most studied, and results <a href="https://crenos.unica.it/crenosterritorio/sites/default/files/allegati-pubblicazioni-tes/Indagine_Villasimius_Quaderno_Crenos_ISBN.pdf">are inconsistent</a> <a href="https://onlinelibrary.wiley.com/doi/abs/10.1002/jtr.2123">there too</a>. Another study, looking at three neighbouring Italian seaside spots finds that only in one destination has the visitor levy <a href="https://www.rivisteweb.it/doi/10.1429/77318">reduced tourist flow</a>. And a study on the Italian cities of Rome, Florence and Padua shows that these cities <a href="https://link-springer-com.bangor.idm.oclc.org/chapter/10.1007/978-3-030-61274-0_23">have not experienced any negative effects</a> either in terms of domestic or international demand. So the impact of tourism taxes on visitor numbers is inconclusive. But what about other effects, such as the potential benefits of spending the revenues raised? As part of an ongoing research project, we looked at seven different destinations in which tourist taxes are levied to look at how the money raised is then spent. For most places, tourism tax revenues were being used to fund marketing and branding – so invested directly into promoting more tourism. The income was also commonly used to fund tourism infrastructure, from public toilets and walking or cycling paths to a multi-billion dollar <a href="https://www.occc.net/About-Us-Media-Relations-Press-Releases/ArticleID/569/Orange%20County%20Board%20Votes%20to%20Approve%20Convention%20Center%20Completion%20with%20Tourist%20Development%20Tax%20Revenues">convention centre</a> in Orange County, Florida. In <a href="https://www.caib.es/sites/impostturisme/en/l/projects/?mcont=95762">the Balearics</a>, revenues tend to go to projects that mitigate the negative impacts of tourism on the environment, culture and society of the islands. These include waste management, conserving natural habitats and historical monuments, and social housing. But in general, tourism taxes have been implemented successfully across the destinations we looked at, and there is little evidence of tourists being put off from visiting. Research also suggests that when tourists are told what the levy is used for – and when it relates directly to <a href="https://www.mdpi.com/2227-7099/5/2/21">improving their experience</a> or <a href="https://ejtr.vumk.eu/index.php/about/article/view/2813/605">enhancing sustainable tourism</a> – <a href="https://www-sciencedirect-com.bangor.idm.oclc.org/science/article/pii/S2212571X20301621?casa_token=HcD-yQh65XcAAAAA:GhVRo4vX9JY1E3Lcx5ZPaTr5ZHArMGNrmK_2ASJCtMPjVpdCQLdun25BmFEYquGgz8-1riOWdg">tourists are willing to accept and pay</a> the levy. <h2>Day trippers</h2> For many tourism destinations, the major problem is not overnight tourists, but rather <a href="https://www.mirror.co.uk/news/uk-news/fuming-snowdonia-visitors-demand-self-30203642">day visitors</a> who use local resources while making little in the way of a financial contribution. For these reasons, taxes might also be used to deter day visits and instead encourage longer stays. <a href="https://www.economist.com/why-venice-is-starting-to-charge-tourists-to-enter?utm_medium=cpc.adword.pd&utm_source=google&ppccampaignID=18156330227&ppcadID=&utm_campaign=a.22brand_pmax&utm_content=conversion.direct-response.anonymous&gad_source=1&gclid=Cj0KCQjw_qexBhCoARIsAFgBleshST3IQMYR8hONLSLnA_loj9dukAqxURhdVCn1RmGeD5iOQzw_r2caAsqrEALw_wcB&gclsrc=aw.ds">Venice is at the forefront</a> of this shift. And in April 2024, after long discussions between the local authority, residents and business owners, Venice started a <a href="https://cdamedia.veneziaunica.it/en/video/it-is-difficult-to-book-a-visit-to-venice/">trial</a> of a day visitor tax (a so-called <a href="https://cda.veneziaunica.it/en">“access fee”</a>). Back in Kent, it may take longer for any such radical plans to come to fruition. In contrast to Scotland and Wales, there are currently no national plans to <a href="http://www.parliament.uk/written-questions-answers-statements/written-question/commons/2023-09-13/199425">introduce tourist taxes</a> in England. This might be considered shortsighted, given the dire need of many destinations in England to improve local infrastructure that tourists rely on, including <a href="https://www.reading.ac.uk/news/2024/Research-News/Swimming-in-sewage-Bathing-forecasts-not-keeping-people-safe">clean bathing water</a> and <a href="https://www.lancs.live/news/cumbria-news/lake-district-warning-parking-issues-27173650">public transport</a>. In <a href="https://www.accountingweb.co.uk/business/finance-strategy/manchester-acts-as-trailblazer-for-tourist-tax">Manchester</a> and <a href="https://www.ft.com/content/0e0385e6-29ec-4302-9903-6fbf63d8854a">Liverpool</a>, businesses have implemented voluntary overnight charges on visitors, in the absence of the statutory basis to implement compulsory levies. Many other English towns and cities will probably follow their lead. Tourism taxes are something we might all have to consider budgeting for in our future travel plans, wherever we choose to visit.<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/229134/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/rhys-ap-gwilym-1531623">Rhys ap Gwilym</a>, Senior Lecturer in Economics, <a href="https://theconversation.com/institutions/bangor-university-1221">Bangor University</a> and <a href="https://theconversation.com/profiles/linda-osti-1431286">Linda Osti</a>, Senior Lecturer in Tourism Management, <a href="https://theconversation.com/institutions/bangor-university-1221">Bangor 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/why-you-should-expect-to-pay-more-tourist-taxes-even-though-the-evidence-for-them-is-unclear-229134">original article</a>. </div>

Travel Trouble

Australia’s tax system is being weaponised against victims of domestic abuse. Here’s how

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/ann-kayis-kumar-466422">Ann Kayis-Kumar</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> When women seeking financial help from the government-funded UNSW <a href="https://www.unsw.edu.au/business/our-schools/accounting-auditing-taxation/about-us/unsw-clinic">Tax and Business Advisory Clinic</a> are asked whether they have ever been affected by family or domestic violence, most say they have. In the past year this number has grown from <a href="https://cdn.theconversation.com/static_files/files/3339/sub009.pdf?1718777706">65%</a> to over 80%. And about <a href="https://ssrn.com/abstract=4746954">14%</a> of the clinic’s clients say their tax debts are a result of intimate partner violence. These debts often arise from business debts, bankruptcy, corporate directorships and director penalty notices. We know that economic abuse is a red flag for other forms of domestic violence. Economic abuse occurs in nearly all Australian domestic and family violence cases, affecting more than <a href="https://www.abs.gov.au/statistics/people/crime-and-justice/personal-safety-australia/latest-release">2.4 million Australians</a> and costing the economy an estimated <a href="https://www.commbank.com.au/content/dam/caas/newsroom/docs/Cost%20of%20financial%20abuse%20in%20Australia.pdf">A$10.9 billion</a> a year. Unfortunately, existing laws fall well short of protecting abuse victim-survivors from financial loss. <h2>How violent partners weaponise tax</h2> The perpetrators of violence can effectively weaponise the tax system by placing tax debts solely in the names of former partners, often because they have made them directors of companies or through family businesses operating through partnerships or trusts. There is a policy assumption that family members benefit from family partnerships. But this does not always hold in practice and can be problematic when there is economic abuse because Australian tax law requires victims report and pay tax on their “share” of the family partnership’s income. The average tax debt at the tax clinic is about $90,000. This can result in debilitating financial burdens, exhausted savings, insecure housing and prolonged economic instability, well after abusive relationships end. <h2>Change is needed</h2> Australia has no specific strategy for relief of tax debts caused by financial abuse. There are “serious hardship” provisions in Australian taxation law, but these are outdated and in need of <a href="https://theconversation.com/sometimes-people-can-do-with-a-break-3-ways-tax-debt-relief-rules-are-too-tough-156948">reform</a>. Usually people do not have the funds up front so the only way the Australian Taxation Office can collect debts from the abused partner is through (generally two-year) payment plans, offsetting future tax refunds, engaging external debt collectors and initiating bankruptcy proceedings. To that end, the decision announced in this year’s budget to give the Tax Commissioner discretion <a href="https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/changes-to-offsetting-debts-on-hold">not to offset</a> against tax returns debts previously placed “on hold” is welcome. It will provide short-term relief by enabling abuse victims to get their refunds instead of having it used by the Tax Office to reduce their debt. Colleagues Christine Speidel, Leslie Book and I want this power extended to all <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4746954">forms of tax debts</a> not just for tax debts that have been placed “on hold” especially where the taxpayer is known to have experienced financial abuse. But this wouldn’t go far enough – the victim-survivors would still have the perpetrator’s tax debt hanging over them. Where this happens, financial instability can <a href="https://www.commbank.com.au/content/dam/commbank-assets/support/2021-01/unsw-report-key-findings.pdf">drive women back</a> into abusive relationships. <h2>The US shows what can be done</h2> Legislative reform to shift tax liability from abuse survivors to perpetrators is the key to helping solve the problem. <figure class="align-right zoomable"></figure> The United States has offered some form of “<a href="https://www.irs.gov/individuals/innocent-spouse-relief">innocent spouse relief</a>” since 1971. In 2011 it widened eligibility and <a href="https://www.irs.gov/pub/irs-news/ir-11-080.pdf">removed a two-year time limit</a> for requesting relief. It is important to understand the US provisions apply because the country offers jointly filed “married” tax returns. In Australia tax returns are filed by individuals. Australia’s laws would need to change to ensure abused women do not find themselves jointly liable. Any changes should also include debts incurred in the name of partnerships and company directors. The US is the first and only country to do this, largely because of the advocacy of US low-income tax clinics over decades. Australia now has such clinics, funded as part of the Tax Office <a href="https://www.ato.gov.au/individuals-and-families/financial-difficulties-and-disasters/support-to-lodge-and-pay/national-tax-clinic-program">National Tax Clinic Program</a>. Australia’s adoption of US-style rules could provide a model for other jurisdictions, increase tax debt collection (as perpetrators are likely to have better capacity to pay than victims) and foster greater confidence in the Tax Office. Most importantly, it would acknowledge that victim-survivors with tax debts should not bear responsibility for debts incurred by perpetrators. <hr /> For information and advice about family and intimate partner violence contact 1800 RESPECT (<a href="https://www.1800respect.org.au/">1800 737 732</a>). If you or someone you know is in immediate danger, contact 000. The Men’s Referral Service (<a href="https://ntv.org.au/get-help/">1300 766 491)</a> offers advice and counselling to men looking to change their behaviour.<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/232609/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ann-kayis-kumar-466422">Ann Kayis-Kumar</a>, Founding Director of UNSW Tax and Business Advisory Clinic, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/australias-tax-system-is-being-weaponised-against-victims-of-domestic-abuse-heres-how-232609">original article</a>. </div>

Money & Banking

News

Shop

Catalogues

Contests

Entertainment

Travel

Health

Lifestyle

Finance

Property

Games

Information

Keep up to date

Search

"No sympathy": 26-year-old roasted over massive tax bill complaint

Replacing stamp duty with a land tax could save home buyers big money. Here’s how

Millions of Centrelink customers to get cash boost

Cricket great takes aim at Albo's beer tax freeze

Why physical affection can boost your health

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

Most retirees who rent live in poverty. Here’s how boosting rent assistance could help lift them out of it

TikTok influencer arrested after sick act to boost followers

Millions of Aussies to receive cash boost as welfare payments rise

The best exercises to boost your brain health after 60

I’m feeling run down. Why am I more likely to get sick? And how can I boost my immune system?

Cash boost for millions of Aussies as indexation kicks in

It’s tax time and scammers are targeting your myGov account. Here’s how to stay safe

7 health investments that are tax deductible

"Dignified retirement": Aussies set for $21k cash boost

Tastes from our past can spark memories, trigger pain or boost wellbeing. Here’s how to embrace food nostalgia

10 ways to make those stage 3 tax cuts count

"Tax the boomers": Outrage over elderly couple's complaint after $1m Lotto win

Why you should expect to pay more tourist taxes – even though the evidence for them is unclear

Australia’s tax system is being weaponised against victims of domestic abuse. Here’s how

Our Partners