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A tax on sugary drinks can make us healthier. It’s time for Australia to introduce one

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/peter-breadon-1348098">Peter Breadon</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> and <a href="https://theconversation.com/profiles/jessica-geraghty-1530733">Jessica Geraghty</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> Sugary drinks cause weight gain and <a href="https://www.nature.com/articles/s41574-021-00627-6">increase the risk</a> of a range of diseases, including diabetes. The <a href="https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2792842">evidence shows</a> that well-designed taxes can reduce sugary drink sales, cause people to choose healthier options and get manufacturers to reduce the sugar in their drinks. And although these taxes haven’t been around long, there are already signs that they are making people healthier. It’s time for Australia to catch up to the rest of the world and introduce a tax on sugary drinks. As our new Grattan Institute <a href="https://grattan.edu.au/report/sickly-sweet/">report</a> shows, doing so could mean the average Australian drinks almost 700 grams less sugar each year. <h2>Sugary drinks are making us sick</h2> The share of adults in Australia who are obese has tripled since 1980, from <a href="https://theconversation.com/mapping-australias-collective-weight-gain-7816">10%</a> to more than <a href="https://www.abs.gov.au/statistics/health/health-conditions-and-risks/waist-circumference-and-bmi/latest-release">30%</a>, and diabetes is our <a href="https://www.diabetesaustralia.com.au/about-diabetes/diabetes-in-australia/">fastest-growing</a> chronic condition. The costs for the health system and economy are measured in the billions of dollars each year. But the biggest costs are borne by individuals and their families in the form of illness, suffering and early death. Sugary drinks are a big part of the problem. The more of them we drink, the greater our risk of <a href="https://www.nature.com/articles/s41574-021-00627-6">gaining weight</a>, <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2963518/">developing type 2 diabetes</a>, and suffering <a href="https://academic.oup.com/eurpub/article/31/1/122/5896049?login=false">poor oral health</a>. These drinks have no real nutrients, but they do have a lot of sugar. The average Australian consumes <a href="https://www.abs.gov.au/statistics/health/health-conditions-and-risks/apparent-consumption-selected-foodstuffs-australia/latest-release">1.3</a> times the maximum recommended amount of sugar each day. Sugary drinks are responsible for more than one-quarter of our daily sugar intake, more than any other major type of food. You might be shocked by how much sugar you’re drinking. Many 375ml cans of soft drink contain eight to 12 teaspoons of sugar, nearly the entire daily recommended limit for an adult. Many 600ml bottles blow our entire daily sugar budget, and then some. The picture is even worse for disadvantaged Australians, who are more likely to have <a href="https://www.abs.gov.au/statistics/health/health-conditions-and-risks/diabetes/latest-release">diabetes</a> and <a href="https://www.abs.gov.au/statistics/health/health-conditions-and-risks/waist-circumference-and-bmi/latest-release">obesity</a>, and who also consume the most sugary drinks. <h2>Sugary drink taxes work</h2> Fortunately, there’s a proven way to reduce the damage sugary drinks cause. More than <a href="https://ssbtax.worldbank.org/">100 countries</a> have a sugary drinks tax, covering most of the world’s population. <a href="https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2792842">Research</a> shows these taxes lead to higher prices and fewer purchases. Some taxes are specifically designed to encourage manufacturers to change their recipes and cut the sugar in their drinks. Under these “tiered taxes”, there is no tax on drinks with a small amount of sugar, but the tax steps up two or three times as the amount of sugar rises. That gives manufacturers a strong incentive to add less sugar, so they reduce their exposure to the tax or avoid paying it altogether. This is the best result from a sugary drinks tax. It means drinks get healthier, while the tax is kept to a minimum. In countries with tiered taxes, manufacturers have slashed the sugar in their drinks. In the United Kingdom, the share of products above the tax threshold <a href="https://journals.plos.org/plosmedicine/article?id=10.1371/journal.pmed.1003025">decreased dramatically</a>. In 2015, more than half (52%) of products in the UK were above the tax threshold of 5 grams of sugar per 100ml. Four years later, when the tax was in place, that share had plunged to 15%. The number of products with the most sugar – more than 8 grams per 100ml – declined the most, falling from 38% to just 7%. The Australian drinks market today looks similar to the UK’s before the tax was introduced. Health benefits take longer to appear, but there are already promising signs that the taxes are working. Obesity among primary school-age girls has fallen in <a href="https://journals.plos.org/plosmedicine/article?id=10.1371/journal.pmed.1004160">the UK</a> and <a href="https://jamanetwork.com/journals/jamapediatrics/fullarticle/2786784">Mexico</a>. Oral health has also improved, with studies reporting fewer children going to hospital to get their teeth removed in <a href="https://nutrition.bmj.com/content/6/2/243">the UK</a>, and reduced dental decay <a href="https://pubmed.ncbi.nlm.nih.gov/33853058/">in Mexico</a> and <a href="https://www.ajpmonline.org/article/S0749-3797(23)00069-7/abstract">Philadelphia</a>. One <a href="https://www.ajpmonline.org/article/S0749-3797(23)00158-7/fulltext">study from the United States</a> found big reductions in gestational diabetes in cities with a sugary drinks tax. <h2>The tax Australia should introduce</h2> Like successful taxes overseas, Australia should introduce a sugary drink tax that targets drinks with the most sugar: <ul> <li>drinks with 8 grams or more of sugar per 100ml should face a $0.60 per litre tax</li> <li>drinks with 5–8 grams should be taxed at $0.40 per litre</li> <li>drinks with less than 5 grams of sugar should be tax-free.</li> </ul> This means a 250ml Coke, which has nearly 11 grams of sugar per 100ml, would cost $0.15 more. But of course consumers could avoid the tax by choosing a sugar-free soft drink, or a bottle of water. Grattan Institute <a href="https://grattan.edu.au/report/sickly-sweet/">modelling</a> shows that under this tiered tax, Australians would drink about 275 million litres fewer sugary drinks each year, or the volume of 110 Olympic swimming pools. The tax is about health, but government budgets also benefit. If it was introduced today, it would raise about half a billion dollars in the first year. Vested interests such as the beverages industry have fiercely resisted sugary drink taxes around the world, issuing disingenuous warnings about the risks to poor people, the sugar industry and drinks manufacturers. But our new report shows sugary drink taxes have been introduced smoothly overseas, and none of these concerns should hold Australia back. We certainly can’t rely on industry pledges to voluntarily reduce sugar. They have been <a href="https://www.cambridge.org/core/journals/public-health-nutrition/article/trends-in-sugar-content-of-nonalcoholic-beverages-in-australia-between-2015-and-2019-during-the-operation-of-a-voluntary-industry-pledge-to-reduce-sugar-content/EE662DE7552670ED532F6650C9D56939">weak</a> and misleading, and <a href="https://www.theguardian.com/australia-news/2024/apr/10/sugar-increase-in-fanta-and-sprite-prompts-calls-for-new-tax-on-australia-food-and-drinks-industry">failed to stick</a>. It will take many policies and interventions to turn back the tide of obesity and chronic disease in Australia, but a sugary drinks tax should be part of the solution. It’s a policy that works, it’s easy to implement, and most Australians <a href="https://bmjopen.bmj.com/content/9/6/e027962">support it</a>. The federal government should show it’s serious about tackling Australia’s biggest health problems and take this small step towards a healthier future.<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/228906/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/peter-breadon-1348098">Peter Breadon</a>, Program Director, Health and Aged Care, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> and <a href="https://theconversation.com/profiles/jessica-geraghty-1530733">Jessica Geraghty</a>, Senior Associate, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/a-tax-on-sugary-drinks-can-make-us-healthier-its-time-for-australia-to-introduce-one-228906">original article</a>. </div>

Food & Wine

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

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/dale-boccabella-15706">Dale Boccabella</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> and <a href="https://theconversation.com/profiles/ranjana-gupta-1207482">Ranjana Gupta</a>, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a> There’s a good reason your local volunteer-run netball club doesn’t pay tax. In Australia, various nonprofit organisations are exempt from paying income tax, including those that do charitable work, such as churches. These exemptions or concessions can also extend to other taxes, including fringe benefits tax, state and local government property taxes and payroll taxes. The traditional justification for granting these concessions is that charitable activities benefit society. They contribute to the wellbeing of the community in a variety of non-religious ways. For example, charities offer welfare, health care and education services that the government would generally otherwise provide due to their obvious public benefits. The tax exemption, which allows a charity to retain all the funds it raises, provides the financial support required to relieve the government of this burden. The nonprofit sector is often called the third sector of society, the other two being government and for-profit businesses. But in Australia, this third sector is quite large. Some grassroots organisations have only a tiny footprint, but other nonprofits are very large. And many of these bigger entities – including some “megachurches” – run huge commercial enterprises. These are often indistinguishable from comparable business activities in the for-profit sector. So why doesn’t this revenue get taxed? And should we really give all nonprofits the same tax exemptions? <h2>Why don’t churches pay tax?</h2> The primary aim of a church is to advance or promote its religion. This itself counts as a charitable purpose under the <a href="https://www.legislation.gov.au/C2013A00100/asmade/text">2013 Charities Act</a>. However, section five of that act requires a church to have only charitable purposes – any other purposes must be incidental to or in aid of these. Viewed alone, the conduct of a church with an extensive commercial enterprise – which could include selling merchandise, or holding concerts and conferences – is not a charitable purpose. But Australian case law and <a href="https://www.acnc.gov.au/for-charities/start-charity/role-acnc-deciding-charity-status/legal-meaning-charity#:%7E:text=Taxation%20Ruling%20(TR)%202011%2F,set%20out%20in%20taxation%20rulings.">an ATO ruling</a> both support the idea that carrying on business-like activities can be incidental to or in aid of a charitable purpose. This could be the case, for example, if a large church’s commercial activities were to help give effect to its charitable purposes. Because of this, under Australia’s current income tax law, a church that is running a large commercial enterprise is able to retain its exemption from income tax on the profits from these activities. There are various public policy concerns with this. First, the lost tax revenue is likely to be significant, although the government’s annual tax expenditure statement does not currently provide an estimate of the amount of tax revenue lost. And second, the tax exemption may give rise to unfairness. A for-profit business competing with a church in a relevant industry may be at a competitive disadvantage – despite similar business activities, the for-profit entity pays income tax but the church does not. This competitive disadvantage may be reflected in lower prices for customers of the church business. <h2>What about taxing their employees?</h2> Churches that run extensive enterprises are likely to have many employees. Generally, all the normal Australian tax rules apply to the way these employees are paid – for example, employees pay income tax on these wages. Distributing profits to members would go against the usual rules of the church, and this prohibition is <a href="https://www.legislation.gov.au/C2013A00100/asmade/text">required</a> anyway for an organisation to qualify as a charity. Some churches may be criticised for paying their founders or leaders “excessive” wages, but these are still taxed in the same way as normal salaries. It’s important to consider fringe benefit tax – which employers have to pay on certain benefits they provide to employees. Aside from some qualifications, all the usual <a href="https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/how-fringe-benefits-tax-works">fringe benefit tax rules</a> apply to non-wage benefits provided to employees of a church. Just like their commercial (and taxable) counterparts, the payment for “luxury” travel and accommodation for church leaders and employees when on church business will not generate a fringe benefits taxable amount for the church. One qualification, though, is that a church is likely to be a <a href="https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/fbt-concessions-for-not-for-profit-organisations/fbt-rebatable-employers">rebatable employer</a> under the fringe benefit tax regime. This means it can obtain some tax relief on benefits provided to each employee, up to a cap. <h2>We may need to rethink blanket tax exemptions for charities</h2> Back in an age where nonprofits were mainly small and focused on addressing the needs of people failed by the market, the income tax exemption for such charities appeared appropriate. But in the modern era, some charities – including some churches – operate huge business enterprises and collect rent on extensive property holdings. Many are now questioning whether we should continue offering them an uncapped exemption from income tax, especially where there are questions surrounding how appropriately these profits are used. Debates about solutions to the problem have focused on various arguments. However, more data may be needed on the way charities apply their profits to a charitable purpose, particularly those involved in substantial commercial activities. An all-or-nothing rule exempting the whole charitable sector may no longer be fit for purpose if it fails to take into account the very different circumstances of different nonprofits.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/228901/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/dale-boccabella-15706">Dale Boccabella</a>, Associate Professor of Taxation Law, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> and <a href="https://theconversation.com/profiles/ranjana-gupta-1207482">Ranjana Gupta</a>, Senior Lecturer Taxation, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/australian-churches-collectively-raise-billions-of-dollars-a-year-why-arent-they-taxed-228901">original article</a>. </div>

Money & Banking

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

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/nick-garvin-1453835">Nick Garvin</a>, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a> If just one state of Australia, New South Wales, scrapped its stamp duty on real-estate transactions, about 100,000 more Australians would move homes each year, according to our <a href="https://e61.in/wp-content/uploads/2024/02/Stamp-duty-effects-on-purchases-and-moves.pdf">best estimates</a>. Stamp duty is an unquestioned part of buying a home in Australia – you put your details in an online mortgage calculator, and stamp duty is automatically deducted from the amount you have to contribute. It’s easy to overlook how much more affordable a home would be without it. That means it’s also easy to overlook how much more Australians would buy and move if stamp duty wasn’t there. The 2010 Henry Tax Review found stamp duty was <a href="https://treasury.gov.au/sites/default/files/2019-10/afts_final_report_part_2_vol_1_consolidated.pdf">inequitable</a>. It taxes most the people who most need to or want to move. The review reported: "Ideally, there would be no role for any stamp duties, including conveyancing stamp duties, in a modern Australian tax system. Recognising the revenue needs of the States, the removal of stamp duty should be achieved through a switch to more efficient taxes, such as those levied on broad consumption or land bases." But does stamp duty actually stop anyone moving? It’s a claim more often made than assessed, which is what our team at the <a href="https://e61.in/wp-content/uploads/2024/02/Stamp-duty-effects-on-purchases-and-moves.pdf">e61 Institute</a> set out to do. We used real-estate transaction data and a natural experiment. <h2>What happened when Queensland hiked stamp duty</h2> In 2011, Queensland hiked stamp duty for most buyers by removing some concessions for owner-occupiers at short notice. For owner-occupiers it increased stamp duty by about one percentage point, lifting the average rate from 1.26% of the purchase price to 2.27%. What we found gives us the best estimate to date of what stamp duty does to home purchases. A one percentage point increase in stamp duty causes the number of home purchases to decline by 7.2%. The number of moves (changes of address) falls by about as much. The effect appears to be indiscriminate. Purchases of houses fell about as much as purchases of apartments, and purchases in cities fell about as much as purchases in regions. Moves between suburbs and moves interstate dropped by similar rates. With NSW stamp duty currently averaging about <a href="https://conveyancing.com.au/need-to-know/stamp-duty-nsw">3.5%</a> of the purchase price, our estimates suggest there would be about 25% more purchases and moves by home owners if it were scrapped completely. That’s 100,000 moves. Victoria’s higher rate of stamp duty, about <a href="https://www.sro.vic.gov.au/rates-taxes-duties-and-levies/general-land-transfer-duty-property-current-rates">4.2%</a>, means if it was scrapped there would be about 30% more purchases. That’s another 90,000 moves. <h2>Even low headline rates have big effects</h2> The big effect from small-looking headline rates ought not to be surprising. When someone buys a home, they typically front up much less cash than the purchase price. While stamp duty seems low as a percentage of the purchase price, it is high as a percentage of the cash the buyer needs to find. Here’s an example. If stamp duty is 4% of the purchase price, and a purchaser pays $800,000 for a property with a mortgage deposit of $160,000, the $32,000 stamp duty adds 20%, not 4%, to what’s needed. If the deposit takes five years to save, stamp duty makes it six. A similar thing happens when an owner-occupier changes address. If the buyer sells a fully owned home for $700,000 and buys a new home for $800,000, the upgrade ought to cost them $100,000. A 4% stamp duty lifts that to $132,000. Averaged across all Australian cities, stamp duty costs about <a href="https://e61.in/wp-content/uploads/2024/02/Stepped-on-by-Stamp-Duty.pdf">five months</a> of after-tax earnings. In Sydney and Melbourne, it’s six. <h2>Stamp duty has bracket creep</h2> This cost has steadily climbed from around <a href="https://e61.in/wp-content/uploads/2024/02/Stepped-on-by-Stamp-Duty.pdf">six weeks</a> of total earnings in the 1990s. It has happened because home prices have climbed faster than incomes and because stamp duty has brackets, meaning more buyers have been pushed into higher ones. Replacing the stamp duty revenue that states have come to rely on would not be easy, but a switch would almost certainly help the economy function better. The more that people are able to move, the more they will move to jobs to which they are better suited, boosting productivity. The more that people downsize when they want to, the more housing will be made available for others. Our findings suggest the costs are far from trivial, making a switch away from stamp duty worthwhile, even if it is disruptive and takes time.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/225773/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/nick-garvin-1453835">Nick Garvin</a>, Adjunct Fellow, Department of Economics, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/stamp-duty-is-holding-us-back-from-moving-homes-weve-worked-out-how-much-225773">original article</a>. </div>

Money & Banking

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

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

Money & Banking

What to expect from the federal budget

There's just three weeks left until Treasurer Jim Chalmers unveils the federal budget. With the cost of living crisis still a major issue across the country, we can expect to see some policies aimed at alleviating the pressure. Some policies, have already been announced and here are a few others that we can expect to hear from Chalmers on May 14. Stage 3 cuts announced in January, will form a key part of this year's budget, which will direct more benefit towards low- and middle-income earners – although Australians on high salaries will still receive a tax cut. The decision was made to alleviate the cost-of-living pressures and partly address the bracket creep. The cuts lower the threshold for the lowest two brackets (so they pay less tax on that income), and raise the threshold for the highest two brackets (so they need to earn more to be taxed at a higher rate). This means that someone with average income of around $73,000 will get $1504, but how much you actually receive will depend on your income. The new version of the stage 3 cuts will come into effect on July 1. Superannuation will be paid on government-funded parental leave, with the change due to kick in for parents with babies born after July 1, 2025. They will receive a 12 per cent superannuation on top of their government-funded parental leave, with around 180,000 families expected to benefit from it. The figures will be included in the May 14 budget. Although nothing has been officially announced, there will likely be HECS-HELP debt relief for current and former students. "I think there's a range of areas where we need to do much better with the younger generation, and HECS is one of them," Prime Minister Anthony Albanese said on radio on April 18. "We've received a review of that... and what that has said is that the system can be made simpler and be made fairer. "We're examining the recommendations and we'll be making announcements pretty soon on that. We, of course, have a budget coming up." There have also been some hints from the government that energy bill relief will continue in this year's budget. "Our government understands that for small business – as for Australian families – energy bills remain a source of financial pressure," Albanese said, citing the existing policy that gives eligible families up to $500 off their power bills and eligible small businesses up to $650. "Our government understands that for small business – as for Australian families – energy bills remain a source of financial pressure," he said. "That's why the energy bill relief package I negotiated with the states and territories delivered up to $650 in savings for around 1 million small businesses, along with 5 million families. "And as we put together next month's budget, small businesses and families will again be front and centre in our thinking." Energy bills are also set to go down, or remain stable for the most part from July 1. Image: Getty

Money & Banking

Survey unveils Aussies thoughts on tourism tax

Earlier this year, Bali launched a controversial tourism tax, which meant that every traveller entering the island would have to pay a $15 fee, which the Indonesian province have said will be used for environmental and cultural projects. Now, Aussies have shared their thoughts on introducing a similar system here, and survey results have revealed that many are keen for the tourism tax to be introduced here. Travel provider InsureandGo conducted the survey and found that 60 per cent of Australians would support the government introducing a tax to combat the rising environmental toll of tourism. "Tourist taxes are a relatively new concept, but as travel demand swells, we are seeing more countries adopt the levy," InsureandGo Chief Commercial Officer Jonathan Etkind said. "What's heartening is that only a minority of 37 per cent of respondents don't support tourism taxes, demonstrating just how many Australians support the concept of sustainable travel." The response comes amid increased sustainability concerns on our flora and fauna, which are being threatened by over-tourism. The tax is particularly supported by younger Aussies aged between 18 to 30, with 73 per cent of them saying yes to tourism taxes. Etkind said that this may be because younger Aussies are typically more aware of the environmental impacts of travel compared to the older generation, who may be less accustomed to the tax. Along with Bali, other cities and countries have started introducing similar fees to combat overtourism, with Venice set to charge day-trippers a fee of 5 Euros ($8.20) per visit. Amsterdam, Netherlands has the highest tourism tax in Europe, with the former 7 per cent hotel tourist levy rising to 12.5 per cent this year. New Zealand also charges international visitors excluding Aussie citizens and permanent residents $25 levy ($32.64 AUD) to address the challenges created by tourism in its conservation areas. Image: Getty

International Travel

Tax boost announced for 1.2 million people

Low-income earners will receive a tax boost with the Medicare levy threshold set to rise. The income threshold at which taxpayers will have to pay a two per cent Medicare levy will increase by 7.1 per cent, in line with inflation. Currently single people who earn below $24,276 do not have to pay the levy. Under the changes, the two per cent levy only has to be paid by anyone earning over $26,000 The Medicare levy threshold for seniors and pensioners will increase to $41,089, up from the initial benchmark of $38,365. For families, this threshold has increased to $43,486 up from the previous $40,939. Treasurer Jim Chalmers said that the increase was part of the broader measures taken to relieve the increase in cost-of-living. “This will ensure people on lower incomes continue to pay less or are exempt from the Medicare levy,” he said on Tuesday. “It means 1.2 million Australians get to keep a bit more of what they earn.” The boost in the Medicare levy threshold was announced alongside changes to income tax cuts, with those earning under $150,000 set to receive greater benefits. “This is about doing what we responsibly can to ease some of the pressure being felt by Australians right around the country, but especially for people on lower incomes, young people, seniors and women,” Chalmers said. This comes just days after Medicare celebrated it's 40th anniversary, with an exhibition launched at Parliament House. Image: Getty

Money & Banking

Stage 3 stacks up: the rejigged tax cuts help fight bracket creep and boost middle and upper-middle households

<a href="https://theconversation.com/profiles/ben-phillips-98866">Ben Phillips</a>, <a href="https://theconversation.com/institutions/australian-national-university-877">Australian National University</a> The winners and losers from the Albanese government’s <a href="https://treasury.gov.au/sites/default/files/2024-01/tax-cuts-government-fact-sheet.pdf">rejig</a> of this year’s Stage 3 tax cuts have already been well documented. From July 1 every taxpayer will get a tax cut. Most, the 11 million taxpayers earning up to A$146,486, will also pay less tax than they would have under the earlier version of Stage 3, some getting a tax cut <a href="https://theconversation.com/albanese-tax-plan-will-give-average-earner-1500-tax-cut-more-than-double-morrisons-stage-3-221875">twice as big</a>. A much smaller number, 1.8 million, will get a smaller tax cut than they would have under the original scheme, although their cuts will still be big. The highest earners will get cuts of $4,529 instead of $9,075. But many of us live in households where income is shared and many households don’t pay tax because the people in them don’t earn enough or are on benefits. The Australian National University’s <a href="https://csrm.cass.anu.edu.au/research/policymod">PolicyMod</a> model is able to work out the impacts at the household level, including the impact on households in which members are on benefits or don’t earn enough to pay tax. <h2>More winners than losers in every broad income group</h2> We’ve divided Australian households into five equal-size groups ranked by income, from lowest to lower-middle to middle to upper-middle to high. Our modelling finds that, just as is the case for individuals, many more households will be better off with the changes to Stage 3 than would have been better off with Stage 3 as it was, although the difference isn’t as extreme. Overall, 58% of households will be better off with the reworked Stage 3 than they would have under the original and 11% will be worse off. Importantly, there remain 31% who will be neither better off nor worse off, because they don’t pay personal income tax. <hr /> <iframe id="0CWXE" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/0CWXE/4/" width="100%" height="400px" frameborder="0"></iframe> <hr /> But it is different for different types of households. In the lowest-earning fifth of households, far more are better off (13.5%) than worse off (0.2%) with the overwhelming bulk neither better nor worse off (86.3%). <hr /> <iframe id="KC5zy" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/KC5zy/3/" width="100%" height="400px" frameborder="0"></iframe> <hr /> In the highest-earning fifth of households, while more than half are better off (54.4%), a very substantial proportion are worse off (42.3%). Very few (only 3.1%) are neither better nor worse off. <hr /> <iframe id="WSkSL" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/WSkSL/3/" width="100%" height="400px" frameborder="0"></iframe> <hr /> <h2>But high-earning households go backwards on average</h2> In dollar terms, the top-earning fifth of households loses money while every group gains. That’s because although there are more winners than losers among the highest-earning fifth of households, the losers lose more money. The biggest dollar gains go to middle and upper-middle income households with middle-income households ahead, on average, by $988 per year and upper-middle income households by $1,102. The highest-income households are worse off by an average of $837 per year. As a percentage of income, middle-income households gain the most with a 1% increase in disposable income. Lowest income households gain very little, while the highest-income households go backwards by 0.3%. <hr /> <iframe id="kAPmC" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/kAPmC/3/" width="100%" height="400px" frameborder="0"></iframe> <hr /> <h2>The rejig does a better job of fighting bracket creep</h2> And we’ve found something else. The original version of the Stage 3 tax cuts was advertised as a measure to overcome <a href="https://theconversation.com/the-2-main-arguments-against-redesigning-the-stage-3-tax-cuts-are-wrong-heres-why-221975">bracket creep</a>, which is what happens when a greater proportion of taxpayers’ income gets pushed into higher tax brackets as incomes climb. We have found it wouldn’t have done it for most of the income groups, leaving all but the highest-earning group paying more tax after the change in mid-2024 than it used to in 2018. The rejigged version of Stage 3 should compensate for bracket creep better, leaving the top two groups paying less than they did in 2018 and compensating the bottom three better than the original Stage 3. <hr /> <iframe id="YG0cT" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/YG0cT/1/" width="100%" height="400px" frameborder="0"></iframe> <hr /> Not too much should be made of the increase in tax rates in the lowest income group between 2018 ad 2024 because some of it reflects stronger income growth. We find that overall, the redesigned Stage 3 does a better job of offsetting bracket creep than the original. It is also better targeted to middle and upper-middle income households. Having said that, the average benefit in dollar terms isn’t big. At about $1,000 per year for middle and upper-middle income households and costing the budget about what the original Stage 3 tax cuts would have cost, its inflationary impact compared to the original looks modest.<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/221851/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ben-phillips-98866">Ben Phillips</a>, Associate Professor, Centre for Social Research and Methods, Director, Centre for Economic Policy Research (CEPR), <a href="https://theconversation.com/institutions/australian-national-university-877">Australian National 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/stage-3-stacks-up-the-rejigged-tax-cuts-help-fight-bracket-creep-and-boost-middle-and-upper-middle-households-221851">original article</a>.

Money & Banking

"Proud to pay more": The billionaires who want to pay more tax

Over 250 millionaires and billionaires have issued an <a href="https://proudtopaymore.org/" target="_blank" rel="noopener">open letter</a> to global leaders encouraging them to implement wealth taxes to combat the cost-of-living crisis. This comes just as a report by the <a href="https://www.oversixty.com.au/finance/money-banking/shocking-amount-australia-s-richest-people-earn-per-hour" target="_blank" rel="noopener">Oxfam Charity</a> revealed that the global wealth of billionaires have only grown in the last three years despite inflation. The open letter, signed by super-rich individuals from 17 countries, includes signatories like Abigail Disney, the grand-niece of Walt Disney, Succession actor Brian Cox, and American philanthropist and Rockefeller family heir Valerie Rockefeller. They said that they would be "proud to pay more taxes" in order to address the inequality. "Elected leaders must tax us, the super rich," the letter read. "This will not fundamentally alter our standard of living, nor deprive our children, nor harm our nations' economic growth. "But it will turn extreme and unproductive private wealth into an investment for our common democratic future." Austrian heir Marlene Engelhorn is also among the voices demanding that they pay more in taxes. "I've inherited a fortune and therefore power, without having done anything for it. And the state doesn't even want taxes on it," Engelhorn, who inherited millions from her family who founded chemical giant BASF, said. The letter was released just as global leaders gather in Davos, Switzerland for the World Economic Forum. Abigail Disney, whose net-worth is measured at more than $100 million, said that lawmakers need to come together to make a meaningful economic and social change. "There's too much at stake for us all to wait for the ultra rich to grow a conscience and voluntarily change their ways," she said. "For that reason, lawmakers must step in and tax extreme wealth, along with the variety of environmentally destructive habits of the world's richest." A recent <a href="https://static1.squarespace.com/static/63fe48c7e864f3729e4f9287/t/6596bfb943707b56d11f1296/1704378297933/G20+Survey+of+those+with+More+than+%241+million+on+Attitudes+to+Extreme+Wealth+and+Taxing+the+Super+Rich.pdf" target="_blank" rel="noopener">survey</a> of almost 2400 millionaires found that 74 per cent of them supported the introduction of a wealth tax to fund improved public services and deal with the cost-of-living crisis. The open letter also said that one-off donations and philanthropy "cannot redress the current colossal imbalance" of societal wealth. "We need our governments and our leaders to lead," the letter said. "The true measure of a society can be found, not just in how it treats its most vulnerable, but in what it asks of its wealthiest members." Images: Getty

Money & Banking

Shocking amount Australia's richest people earn per hour

Three of Australia's richest people — Gina Rinehart, Andrew Forrest and Harry Triguboff — have more than doubled their wealth since 2020, according to the charity Oxfam. A report from the charity published on Monday, found that the fortune of Australia's richest people doubled at a staggering rate of $1.5 million per hour. The report also found that the total wealth of the country’s billionaires increased by $120 billion in that same period, which is over 70 per cent. Tech tycoons Elon Musk, Mark Zuckerberg and Jeff Bezos, are among the top five richest men worldwide, with the report finding that it would take them 476 years to spend all of their wealth if they spent $1.5 million daily. The global wealth of billionaires grew three times faster than the inflation rate, and they are $4.9 trillion richer today than they were in 2020, despite nearly five billion people worldwide growing poorer. According to the Australian Council of Social Services, one in eight adults are living in poverty, earning half of the median household income which ranges from $489 a week for a single adult to $1,027 for a couple with two kids. The report was released to raise concern over the growing global inequality, as they urge the federal government to reduce the wealth gap by scrapping the stage three tax cuts coming into effect on July 1. The tax cuts will lower marginal tax rates for high-earning Australians. Oxfam Australia chief executive Lyn Morgain has urged governments to step up. “We cannot accept a society that promotes the gross accumulation of wealth alongside widespread global poverty,” she said. “One of the best mechanisms we have to address this is progressive taxation. “The shame of our woeful global response to catastrophic disasters, displacement, famine and the climate crisis cannot be attributed to a scarcity of resources, it is distribution — and that’s a problem all governments, including the Australian government, need to tackle urgently.” Oxfam have also called for a wealth tax on the world's millionaires and billionaires that it claims could bring in $2.7 trillion each year. The report also called to cap CEO pay and break up private monopolies, which have gained significant power thanks to surging stock prices. Images: Getty

Money & Banking

Unlocking the wealth in your home for a better retirement

In an era where the cost of living continues to rise, Australian retirees are facing unique financial challenges. Many find themselves in a situation where the bulk of their wealth is tied up in their family homes, leaving them with limited options to fund their retirement comfortably. That’s where <a href="https://householdcapital.com.au/" target="_blank" rel="noopener">Household Capital</a> steps in. As a specialist retirement funding provider, Household Capital offers a solution that empowers retirees to make the most of their home’s value. Through a helpful and enlightening Q&A session with Household Capital, we explore how their innovative approach allows retirees aged 60 and above to access their home wealth responsibly, providing flexible options such as regular income streams, lump sum payments, and even assistance for those still paying off mortgages! Whether you're looking to beat the cost-of-living crisis, help your children enter the property market, or simply secure a more comfortable retirement, Household Capital offers a pathway to a brighter financial future. Here’s how: <h3>Q: What does Household Capital do?</h3> A: Household Capital is a specialist retirement funding provider that provides responsible long-term access to your home wealth. Our approach aims to provide you with the best of both worlds – to continue living in your family home with the confidence to enjoy the retirement lifestyle you deserve. <h3>Q: How does Household Capital help retired Australians?</h3> A: If you’re like most Australian retirees, the majority of your wealth is probably tied up in your family home. This wealth is a valuable resource that could be used to improve your retirement funding and enhance your retirement lifestyle. Our Household Loan helps Australian homeowners aged 60 plus to unlock that wealth and put you in control of your retirement. Your home wealth can be drawn as a regular income, a lump sum payment to renovate your home, buy a new car or cover medical expenses, or both! Importantly, it provides flexibility and choice, so you can look to the future with confidence. <h3>Q: How can Household Capital help me beat the cost-of-living crisis?</h3> A: Many Australians are grappling with the rising cost of living. Food, medical costs, insurance premiums, petrol prices – it seems never ending. How do retired Australians manage this on a fixed income? In many cases, they don’t. Some give up doing things they love – other forgo necessities. Unlocking the wealth in your home can provide a regular income to supplement that received from your superannuation or government pension. You don’t have to go without. You can enjoy the lifestyle you deserve. <h3>Q: I’m over 60 and still paying a mortgage – can you help me?</h3> A: You may be one of the millions of Australians aged over 60 still paying off their home loan. Those principal and interest repayments can really stress budgets, especially as the interest rate for ‘old loans’ may be much higher than current rates for younger borrowers. For some over 60s, it means they can’t retire when they want to. For others, it’s having to find that monthly repayment from a fixed income that’s already been stretched by increasing rates and inflation. There is a better way. Many of our customers use a Household Loan to refinance their bank loan. Because a Household Loan does not require regular repayments, your retirement income is freed up. Notably, there is no risk of foreclosure if you miss repayments – because regular repayments are not required. You can stay in your home as long as you want with guaranteed lifetime occupancy and retain 100 percent ownership, meaning you benefit fully from any growth in your home’s value. <h3>Q: How can I help my kids get onto the property ladder?</h3> A: Did you know the ‘bank of mum and dad’ is consistently ranked among Australia’s top ten lenders? Typically, funds are drawn from retirement savings, which can have a detrimental impact on the ‘bank’ over the longer term. If your retirement funding needs are in hand, you can use your home wealth to contribute to a first home buyers deposit or help children with mortgage expenses. This enables you to help children and grandchildren when they need it most and use your home wealth to help the next generation build theirs. <h3>Q: How much home wealth could I unlock?</h3> A: The amount of home wealth you could unlock is dependent on the Loan to Value ratio (LVR). The calculation takes multiple factors into account including the age of the youngest borrower and the value of your property. The LVR for a Household Loan starts at 20 percent of the agreed property value for those aged 60 and increases one percent per year thereafter. To see how much home wealth you could unlock, check out Household Capital’s <a href="https://householdcapital.com.au/home-equity-calculators/" target="_blank" rel="noopener">online calculator</a> or call and speak to one of their Australian-based retirement specialists on 1300 734 720. Applications for credit are subject to eligibility and lending criteria. Fees and charges are payable, and terms and conditions apply (available upon request). Household Capital Pty Limited ACN 618 068 214, Australian Credit Licence 545906, is the Servicer for the credit provider Household Capital Services Pty Limited ACN 625 860 764 Image: Supplied. This is a sponsored article produced in partnership with Household Capital.

Retirement Income

Kyle Sandilands' toddler's jaw-dropping wealth

Kyle Sandilands has revealed the shocking bank balance his one-year-old son Otto has, an amount that most dream of having. The radio shock jock revealed his son's staggering wealth on the The Kyle & Jackie O Show on Thursday morning, confessing that Otto's wealth will one day eclipse his. “Otto's already been loaded up by his great-grandfather,” he said, revealing that his wife Tegan’s “wealthy” grandfather had set up a bank account for Otto on his first birthday. "My child's already a millionaire. He's already got $1,000,000 in his bank." The radio host told co-star Jackie O that he was jealous of his son. “He’s not even one, what an a**hole. I'm jealous of my own kid.” Although Sandilands himself has a reported net worth of $40 million, making a rumoured $40,000 every morning on The Kyle & Jackie O Show, he has hinted that his wife is wealthier. This comes just one month after the radio host revealed that the couple splurged $25,000 on their son's<a href="https://www.oversixty.com.au/lifestyle/family-pets/inside-kyle-sandilands-son-otto-s-first-birthday-party" target="_blank" rel="noopener"> first birthday</a>. The pair are known for their lavish way of living, after they tied the knot in a $1 million <a href="https://www.oversixty.com.au/lifestyle/relationships/kyle-sandilands-lets-slip-insane-cost-of-wedding-so-far" target="_blank" rel="noopener">wedding</a> earlier this year, followed by a $500,000 <a href="https://www.oversixty.com.au/finance/money-banking/the-astronomical-price-of-kyle-sandilands-honeymoon-revealed" target="_blank" rel="noopener">honeymoon</a>. Image: Instagram

Family & Pets

7 simple wealth creation ideas for over 60s

In today's world of rising costs and economic uncertainties, building wealth after the age of 60 might seem like a daunting task. However, it's essential to remember that it's never too late to take control of your financial future and explore innovative ways to boost your income and savings. The latest Retirement Standard from the super industry body ASFA reveals that singles aged 65-84 need an annual income of approximately $50,207 for a 'comfortable lifestyle' in retirement, while couples require a combined income of $70,806 per year. With the full age pension often falling short of these numbers, many seniors are seeking alternative ways to supplement their income during retirement. Let’s delve into some practical and achievable wealth creation ideas tailored to older Australians who are looking to secure their financial well-being in their golden years. <ol> <li>Intentional Spending</li> </ol> Cutting down on non-essential spending is a powerful way to save money. Review your discretionary expenses and identify areas where you can make reductions. For instance, consider cooking at home instead of dining out, exploring free or low-cost local activities for entertainment, and delaying the purchase of luxury items. Prioritise experiences that provide value without straining your budget. <ol start="2"> <li>Pressure Test Your Retirement Strategy</li> </ol> It's essential to regularly review your retirement plan, taking into account the evolving financial landscape, legislative changes, and opportunities to minimise costs. By doing so, you can maximise the funds under your control and make informed decisions that align with your retirement goals. Keep in mind that the financial world is dynamic, and staying proactive in managing your retirement assets can lead to a more secure and comfortable retirement. <ol start="3"> <li>Get rid of things you don't need by selling online</li> </ol> Embrace the digital age and leverage online marketplaces to turn your unneeded possessions into cash. If you're not tech-savvy, don't hesitate to enlist the help of your grandchildren or any trusted youngster who can guide you through the process. Selling items online not only declutters your living space but also opens up opportunities to supplement your retirement income. Embracing technology can be empowering and profitable at any age! <ol start="4"> <li>Part-Time Job Opportunities in the Gig Economy</li> </ol> Embrace the gig economy by exploring part-time job opportunities. Various platforms offer flexible work arrangements suitable for seniors, such as rideshare driving or food delivery services. These roles allow you to set your own hours and supplement your retirement income. <ol start="5"> <li>Freelancing or Consulting</li> </ol> Your years of experience and expertise are valuable assets. Consider venturing into part-time freelancing or consulting opportunities within your field. Many businesses are eager to hire experienced professionals for specific projects or advisory roles, providing an opportunity to boost your income without a full-time commitment. <ol start="6"> <li>Renting Out a Spare Room</li> </ol> If you have extra space in your home, consider renting out a spare room to short-term guests. Websites like Airbnb make it easy to find renters, providing a consistent source of income and helping to cover housing costs. <ol start="7"> <li>Compare and Save</li> </ol> Once you've reviewed your spending habits, identify areas where you can potentially save money by shopping around and obtaining comparison quotes. Renegotiating bills and subscriptions can also yield significant savings. Don't forget to review your insurance policies, adjusting the coverage and excess to potentially reduce premiums. Creating wealth in your golden years may seem challenging, but with the right approach and determination, it's entirely achievable. By exploring these simple and practical ideas, older Australians can take steps toward securing their financial future and enjoying a comfortable retirement. Remember that every financial decision should align with your individual circumstances and objectives. However, it's crucial to note that earning extra income during retirement can impact age pension payments. It can be worth seeking financial advice about the best way to increase income during retirement without compromising any other entitlements, so consider seeking professional guidance to make informed choices on your path to financial security, ensuring a comfortable and worry-free retirement. Amanda Thompson, author of Financially Fit Women, is a sought-after speaker and qualified financial adviser. As the founder of Endurance Financial, Amanda is driven to renew personal and confidence by providing the financial knowledge and guidance to have a great relationship with money allowing you to become your own CFO (Confident, Focussed & On top of your Finances). For more information visit <a href="http://www.endurancefinancial.com.au">www.endurancefinancial.com.au</a> Image credits: Getty Images

Retirement Income

Jackie O's candid admission about her wealth

Jackie O Henderson, who is one of the most well-paid women in Australia's entertainment industry, has opened up about how "embarrassed" she feels by the reports of her wealth, and how daunting it is to earn so much. The radio star made the candid admission on Stellar’s Something To Talk About podcast, where she shared the “scary” reality of being a self-made female millionaire. “I do sometimes get embarrassed to talk about money. I hate showing off wealth. I’ve always been like that … I want a nice bag, car and house, but I don’t want to flaunt it,” she said. The breakfast host and her co-star Kyle Sandilands were rumoured to earn around $7-8 million each per year, when they renewed their contract for The Kyle and Jackie O show with ARN in 2019. “But [at the same time] I shouldn’t be embarrassed about it, so I am trying to take more ownership of that," she added. Henderson shared her own struggles of navigating conversations around wealth. “And as a man, they’d absolutely be owning that, and as a female, when you’re single, it’s quite scary to earn a lot of money, because a lot of men can be intimidated by that. “And so your instinct is to downplay it for that reason.” She added that although she is grateful for such a successful career, she preferred the "chase" over the destination. “I am grateful for it, I am, but sometimes I think … I wish I was just back in my 20s and trying to buy my first apartment,” she added. “Isn’t that weird? It’s only a thought I had a couple of weeks ago … I don’t know. I keep asking myself why I’m thinking that way. “All I’ll say is, as women, we just need to be proud a little more.” Images: Instagram / Stellar Magazine

Money & Banking

myTax is fast and free – so why do 2 in 3 Australians still pay to lodge a tax return?

<a href="https://theconversation.com/profiles/jawad-harb-1441668">Jawad Harb</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> and <a href="https://theconversation.com/profiles/elizabeth-morton-1218408">Elizabeth Morton</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Ten years ago, the Australian Taxation Office (ATO) created the “myTax” portal, an easy way to lodge your tax return online. There was an “e-Tax” filing option before the 2015-16 tax year, but this was quite complicated and barely better than filling out a form online. In comparison, myTax <a href="https://resources.taxinstitute.com.au/tiausttaxforum/acceptance-of-mytax-in-australia">is simpler</a> and more automated. It’s available 24 hours a day, is free to use, and you will typically get your refund within <a href="https://www.ato.gov.au/Individuals/Your-tax-return/How-to-lodge-your-tax-return/Lodge-your-tax-return-online-with-myTax/">two weeks</a>. But the chances are you won’t be using it. In fact, slightly less than <a href="https://www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/Taxation-statistics/Taxation-statistics-2020-21/?anchor=IndividualsStatistics#IndividualsStatistics">36%</a> of Australia’s 15 million taxpayers used the myTax portal in 2020-21 – the most recent tax year for which the tax office has published data. About <a href="https://www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/Taxation-statistics/Taxation-statistics-2020-21/?anchor=IndividualsStatistics#IndividualsStatistics">64% of tax returns</a> were lodged through tax agents. This is one of the highest rates among 38 <a href="https://www.oecd.org/about/">Organisation for Economic Co-operation and Development</a> nations. Meanwhile, just 0.6% of Australians still used the paper-based form. <hr /> <iframe id="5Kdz0" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/5Kdz0/3/" width="100%" height="400px" frameborder="0"></iframe> <hr /> So why have Australians – who have quickly embraced the internet for everything from shopping to dating – been so slow to embrace myTax? For some, particularly older people, it’s about being intimidated by the technology. Others may be concerned with cybersecurity risk. But for most it’s about the perceived complexity of the tax system and the process, regardless of the technology. They see using a tax agent as easier and the way to maximise their tax refund. While in some cases this may be true, in many instances it’s simply a perception – but one the tax office will need to address if it wants to promote use of myTax. <h2>Reasons for the low uptake of myTax</h2> <a href="https://resources.taxinstitute.com.au/tiausttaxforum/acceptance-of-mytax-in-australia">Our research</a> suggests most people who have used the myTax portal think it is easy to use. We surveyed 193 taxpayers who have used the system. About three-quarters agreed the system was clear and understandable, and said they would keep using it. But of course these are people who have chosen to use the system, so their responses don’t shed much light on the reasons people don’t use myTax. Answers to that come from other published research, in particular from the <a href="https://www.igt.gov.au/">Inspector-General of Taxation</a> (the independent office investigating complaints about the tax system) as well as the House of Representatives’ Standing Committee on Tax and Revenue. Evidence submitted to these bodies indicate that Australians prefer tax agents to avoid errors in claiming deductions. The parliamentary committee’s <a href="https://parlinfo.aph.gov.au/parlInfo/download/committees/reportrep/024169/toc_pdf/TaxpayerEngagementwiththeTaxSystem.pdf;fileType=application%2Fpdf">2018 inquiry</a> into the tax system was told the use of tax agents ballooned from about 20% in the 1980s, peaking at about 74% of all taxpayers: "The Tax Commissioner considered that the size of the TaxPack had probably contributed to that rise, driving many people with simple tax affairs to a tax agent because it looked daunting." In short, habits are hard to break. Having come to rely on tax agents, most Australians keep using them, despite the system being vastly improved. For example, the myTax system now simplifies the process by <a href="https://www.ato.gov.au/Individuals/Your-tax-return/How-to-lodge-your-tax-return/Lodge-your-tax-return-online-with-myTax/Pre-fill-availability/?=redirected_myGov_prefill">pre-filling</a> data from government agencies, health funds, financial institutions and your own employer. About 80% of our survey respondents said this was helpful. <h2>Taking care of the digital divide</h2> This suggests the main barrier to increasing use of the myTax system is mostly habit and the perception the tax system is too complicated to navigate without an expert. There is also a small percentage of people who feel uncomfortable with computers. This is reflected in the minority of respondents in our study who said they were unlikely to use myTax again, as well as the tax office’s data showing some people continue to stick with paper lodgement. Those more likely to find the system daunting are the elderly, those with low English skills, people with disabilities and those with low educational attainment. These people’s needs should not be forgotten as the Australian <a href="https://www.dta.gov.au/digital-government-strategy">Digital Government Strategy</a> aims to making Australia a “world-leading” digital government by 2025, delivering “simple, secure and connected public services”. Even with the greatest online system in the world, it’s unlikely there will ever be a complete transition.<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/207305/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/jawad-harb-1441668">Jawad Harb</a>, PhD Candidate, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> and <a href="https://theconversation.com/profiles/elizabeth-morton-1218408">Elizabeth Morton</a>, Research Fellow of the RMIT Blockchain Innovation Hub, Lecturer Taxation, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT 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/mytax-is-fast-and-free-so-why-do-2-in-3-australians-still-pay-to-lodge-a-tax-return-207305">original article</a>.

Money & Banking

Bees have appeared on coins for millennia, hinting at an age-old link between sweetness and value

<a href="https://theconversation.com/profiles/adrian-dyer-387798">Adrian Dyer</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a> In 2022, the Royal Australian Mint issued a $2 coin decorated with honeybees. Around 2,400 years earlier, a mint in the kingdom of Macedon had the same idea, creating a silver obol coin with a bee stamped on one side. Over the centuries between these two events, currency demonstrating a symbolic link between honey and money is surprisingly common. In a recent study in <a href="https://s3.ap-southeast-2.amazonaws.com/assets.mmxgroup.com.au/ACR/Bee+Article.pdf">Australian Coin Review</a>, I trace the bee through numismatic history – and suggest a scientific reason why our brains might naturally draw a connection between the melliferous insects and the abstract idea of value. <figure class="align-center "><img src="https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&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/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=600&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=600&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=600&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=754&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=754&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=754&fit=crop&dpr=3 2262w" alt="" /><figcaption>A Royal Australian Mint 2022 two-dollar coin representing 200 years since the introduction of the honeybee to Australia.</figcaption></figure> <h2>What is currency and why is it important?</h2> Money is a store of value, and can act as a medium of exchange for goods or services. Currency is a physical manifestation of money, so coins are a durable representation of value. Coins have had central role in many communities to enable efficient trade since ancient times. Their durability makes them important time capsules. Ancient Malta was famous for its honey. The modern 3 Mils coin (<a href="https://en.numista.com/catalogue/pieces1775.html">1972-81</a>) celebrates this history with images of a bee and honeycomb. According to the information card issued with the coin set, <blockquote> A bee and honeycomb are shown on the 3 Mils coin, symbolising the fact that honey was used as currency in Ancient Malta. </blockquote> <figure class="align-center "><img src="https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&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/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=582&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=582&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=582&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=732&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=732&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=732&fit=crop&dpr=3 2262w" alt="" /><figcaption>A circulating 3 Mils coin from Malta showing a honeybee on honeycomb.</figcaption></figure> In ancient Greece, bees were used on some of the earliest coins made in Europe. A silver Greek obol coin minted in Macedon between 412 BCE and 350 BCE, now housed in the British Museum, shows a bee on one side of the coin. <figure class="align-center "><img src="https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&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/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=293&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=293&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=293&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=368&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=368&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=368&fit=crop&dpr=3 2262w" alt="" /><figcaption>An ancient obol from Macedon, dated between 412 BCE and 350 BCE, shows a bee one side.</figcaption></figure> Bees also feature on coins minted elsewhere in the ancient Greek world, such as a bronze coin minted in Ephesus dated between 202 BCE and 133 BCE. <figure class="align-center "><img src="https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&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/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=546&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=546&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=546&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=686&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=686&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=686&fit=crop&dpr=3 2262w" alt="" /><figcaption>A bronze coin minted in Ephesus, dated between 202BCE and 133BCE, featuring a honeybee.</figcaption></figure> The use of bees on ancient coins extended for many centuries including widely circulated bronze coins, and new varieties <a href="https://coinweek.com/bee-all-that-you-can-bee-honeybees-on-ancient-coins/">continue to be discovered</a>. <h2>Why we might like bees on coins</h2> Why have bees appeared so often on coins? One approach to this question comes from the field of neuro-aesthetics, which seeks to understand our tastes by understanding the basic brain processes that underpin aesthetic appreciation. From this perspective, it seems likely the sweet taste of honey – which indicates the large amount of sugar it delivers – promotes positive neural activity <a href="https://brill.com/view/journals/artp/10/1/article-p1_2.xml">associated with bees and honey</a>. Indeed, primatologist Jane Goodall once proposed that obtaining high-calorie nutrition from bee honey may have been <a href="https://www.sciencedirect.com/science/article/abs/pii/S0066185668800032">an important step</a> in the cognitive development of primates. Our brain may thus be pre-adapted to liking bees due to their association with the sweet taste of honey. Early usage of bees on coins may have been a functional illustration of the link between a known value (honey) and a new form of currency: coins as money. <h2>The bee on modern coins</h2> <figure class="align-center "><img src="https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&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/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=588&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=588&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=588&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=738&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=738&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=738&fit=crop&dpr=3 2262w" alt="" /><figcaption>A 1920 Italian bronze ten-centesimi coin featuring featuring an Italian honeybee on a flower.</figcaption></figure> The use of bees as a design feature has persisted from ancient to modern times. A honeybee visiting a flower is shown on a series of ten-centesimi bronze coins issued in Italy from <a href="https://en.numista.com/catalogue/pieces1960.html">1919 to 1937</a>. (As an aside, the world’s last stock of pure Italian honeybees is found in Australia, on Kangaroo Island, which was declared a sanctuary for Ligurian bees by an <a href="https://www.legislation.sa.gov.au/home/historical-numbered-as-made-acts/1885/0342-Lingurian-Bees-Act-No-342-of-48-and-49-Vic,-1885.pdf">act of parliament</a> in 1885.) <figure class="align-center "><img src="https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&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/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=586&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=586&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=586&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=737&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=737&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=737&fit=crop&dpr=3 2262w" alt="" /><figcaption>A coin from Tonga showing 20 honeybees emerging from a hive.</figcaption></figure> More recently, a 20-seniti coin from the Pacific nation of Tonga shows 20 honeybees flying out of a hive. This coin was part of a series initiated by the Food and Agriculture Organization of the United Nations to promote sustainable agricultural and cultural development around the world. Bees are relevant here because their pollinating efforts contribute to about one-third of the food required to feed the world, with a value in excess of <a href="https://zenodo.org/record/2616458">US$200 billion per year</a>, and they are threatened by climate change and other environmental factors. <h2>Bees on coins, today and tomorrow</h2> Public awareness of bees and environmental sustainability may well be factors in the current interest in bee coins. The diversity of countries using bees as a design feature over the entire history of coins suggests people have valued the relationship with bees as essential to our own prosperity for a long time. In Australia, the 2022 honeybee $2 coin is part of a series developed by the <a href="https://www.ramint.gov.au/about-mint">Royal Australian Mint</a>. In 2019, the Perth Mint in Western Australia also released coins and stamps celebrating native bees. <figure class="align-center "><img src="https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&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/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=373&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=373&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=373&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=469&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=469&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=469&fit=crop&dpr=3 2262w" alt="" /><figcaption>Australian native bee coin and stamps released in 2019 by the Perth Mint.</figcaption></figure> Despite the decline of cash, bee coins still appear to be going strong. The buzzing companions of human society are likely to be an important subject for coin design for as long as coins continue to be used.<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/208912/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/adrian-dyer-387798">Adrian Dyer</a>, Associate Professor, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a> Image credits: Australian Royal Mint / NZ Post Collectables 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/bees-have-appeared-on-coins-for-millennia-hinting-at-an-age-old-link-between-sweetness-and-value-208912">original article</a>.

Money & Banking

Can you lend a paw this tax time to help cats in need?

With a proud reputation of caring for cats for more than 60 years, the Cat Protection Society of NSW runs Sydney’s only no-kill shelter just for cats, as well as providing feline welfare programs to help cats and the people who love them. Cat Protection began in 1958 as a small group of people dedicated to reducing the number of street cats and while our organisation has grown over the years, our vision remains the same; that every cat deserves a loving and responsible home. Over the years, Cat Protection has helped literally hundreds of thousands of cats, kittens, and people. We’ve led the way in setting the standards for best-practice feline sheltering, and our health and welfare services extend far beyond our adoption centre. And while technology means we can offer a great range of free cat care resources online, we’ve never lost our human touch and we still help thousands of people every year with advice and tips on cat care by phone or in-person, at no cost. Our subsidised desexing, vaccination and microchipping programs promote cat health and welfare in the community and our newest program, Adopt-a-Stray, offers a complete and affordable package for those who wish to fully welcome a street cat into their heart and home. What sets us apart from many other animal shelters is our holistic approach to each individual cat or human client. Cats are not given a time limit, although most are adopted within days or weeks. Every cat is individually assessed and provided with a care plan to meet their unique needs. If they need complex surgery, allergy trials or behavioural interventions our highly qualified team will work with veterinarians and specialists to ensure the cat gets everything they need to set them on the path to living their best life. A kind person found Snake, a four-week-old sickly orphaned kitten. In addition to cat flu, our vets identified corneal scarring in his right eye, a blocked tear duct, and an adhesion on his eyelid restricting the normal movement of his third eyelid. Treatment resolved the flu and improved his eye, but Snake will live with limited vision in that eye. This has not dampened his playfulness or zest for life. As well as poor physical health, orphaned kittens miss out on the important lessons of being a cat from their mum and siblings, and this can lead to behavioural issues. Where we can, we will make sure such kittens get to join a stepfamily, but in cases such as Snake’s, illness means that isn’t always possible. It is then up to our human team to work with these little ones to help them learn to navigate the world with good manners! In contrast, Banjo had all the behavioural benefits of his brother but alas at seven weeks of age Banjo weighed only 560 grams while his brother Clancy weighed 900 grams! Banjo was diagnosed with a rare form of congenital hypothyroidism. Because his condition was diagnosed early, his prognosis is very good. He was started on a medication called Thyroxine and went back into foster care so that we could monitor his progress and adjust the dose of his medication as necessary with follow-up blood tests. After six weeks in foster care, Banjo graduated to the adoption centre. He will need to be on Thyroxine for the rest of his life, but that didn’t daunt his new family who’ve told us Banjo is now thriving in his loving forever home. From individualised TLC and veterinary care for every cat and kitten, to helping human clients resolve cat challenges (from furniture scratching to strata bans) and strategic research and advocacy on behalf of people and cats, Cat Protection’s impact is so much greater than our budget. As an independent registered charity for cats, we’re dependent on donations and bequests to do our work. We are compliant, open and transparent; on our website you can see our audited annual reports for details of what we do and what it costs. We have a strict “no harassment” fundraising policy which means under no circumstances will your information be sold on, and we do not employ pressure-tactics or door-to-door solicitations. We don’t spend money paying fundraising companies to ring you at dinner time asking for money or send you five-page long letters insisting you give more. And we never will. Donations are invested in helping our feline friends and nurturing the unique bond between cats and people. Your generosity will mean that we can continue to help thousands of cats and people each year. If you can lend a paw, please <a href="https://www.givenow.com.au/catprotectionsocietynsw" target="_blank" rel="noopener">make your tax-deductible donation here</a>! For general advice on cat care and everything feline, call the Cat Protection Society of NSW on 02 9557 4818 or visit <a href="https://catprotection.org.au/" target="_blank" rel="noopener">catprotection.org.au</a> Images: Supplied. This is a sponsored article produced in partnership with the Cat Protection Society of NSW.

Family & Pets

Australia's top earners revealed – and it might be you

A new report has found Australians are the third most wealthy citizens in the world, with a surprising way to make the cut as one of the richest. A six figure salary will qualify an Aussie to be among the top 10 per cent richest in the world, while homeowners in Sydney are included among the global elite. The top 10 per cent of earners in Australia make $122,664 or more, with some of the highest paid incomes in the country including miners who earn $124,550 on average, school principals who rake in $130,142 and dentists that receive $131,773. Prestige property company Frank Knight’s report revealed anyone with $1.5 million in assets was classified as a “high-net-worth individual”, which would qualify plenty of Sydney homeowners. Meanwhile, the net worth required to be in the top one per cent of Australia’s rich was the third highest figure globally, behind Monaco and Switzerland. However, to be considered in Australia’s highest percentage of wealth, you must have a total net worth of an eye-watering US%5.5 million ($A8.26 million). Its annual Wealth Populations report as part of its Wealth Report Series found that wealth levels across every country analysed had seen an increase since 2021, despite experiencing a “dip” the following year. Australia has almost doubled its 2021 wealth figure, revealing that the rich got richer during the pandemic. In 2021, Australia was number seven, with $US2.8 million as the baseline. Monaco reportedly has the world’s “densest population of super-rich individuals” which saw it at the top of the list out of 25 countries analysed. To be considered one of the top earners in Monaco, people must have income and assets that equate to US$12.4 million in overall net worth. Switzerland calls for just half of Monacos, coming in at $US6.6 million. New Zealand earned a spot right behind their neighbour at number four, with a $US5.2 million net worth qualifying an individual to be in the country’s top percentile. The US rounded out the top five, at US$5.1 million. Ireland, Singapore, France, Hong Kong and the UK made it into the top 10 on the “One per cent club” respectively. China was number 15 on the list, with US$960,000 marking out the number its top one per cent exceeds. In a staggering comparison, having a net worth of more than US$20,000 in Kenya would make you one of the richest in the African nation, which saw itself last on the list. Despite the remarkable wealth of the people detailed in the report, the authors pointed out that every country still fell “well short” of an “ultra high net individual”. The elite must have a net worth that exceeds US$30 million to earn the title. After a tumultuous financial year, the filthy rich remained unaffected with their number increasing by 2 per cent to almost 70 million nationwide. The report’s authors said the Middle East was “the standout region” regarding adding mega rich individuals to their list, with a 16.9 per cent growth. However, during that time, the number of billionaires dropped by five per cent to 2,629. It is expected over the next five years that another 750,000 people will join the exclusive club of remarkably high net worth individuals. Image credit: Shutterstock

Money & Banking

ATO cracks down on landlords submitting dodgy tax returns

The Australian Taxation Office (ATM) has plans to crack down on landlords submitting dodgy tax returns after an interview found nine in 10 made mistakes and wrongfully claimed expenses. Those working at home, including those who run home-based businesses and people who earn via short-term rental sites like Airbnb or Stayz, will also be under the thumb this year to file returns correctly, in a new bid to eliminate tax fraud. The review comes in the wake of a major funding boost to the ATO, announced in the 2023 federal budget, which saw an $89.6 million injection. The ATO claims there was a tax gap of $9 billion in the 2019-2020 financial year. Taxpayers paid 94.4 per cent of the whole amount theoretically owed to the Commonwealth, with deductions for rental expenses, including those incorrectly claiming negative gearing deductions, contributing $1.4 billion to the gap. Australian Tax Commissioner Tim Loh said the ATO will be taking action in 2023. "We encourage rental property owners and their registered tax agents to take extra care this tax time and review their records before lodging their return," Loh reportedly told The Age. "You can only claim interest on a loan used to purchase a rental property to earn rental income – don't forget, if your loan also includes a private expense, such as for a new car or a trip to Bali, you can only claim an interest deduction for the portion relating to producing your rental income.” Loh warned Australians who work from home and advised against the “copy and paste" tax return method. He said, ” We know a lot of people are working back in the office more compared to last year”, and the method the ATO uses to calculate working from home expenses has now changed. Image credit: Shutterstock

Money & Banking

Check your rates: Couple's warning after being overcharged for more than a decade

A disgruntled couple from the NSW south coast town of Kiama have slammed their local council after discovering they have been overcharged by around $8,000 for a rubbish bin they weren’t even using. The couple, Kim and Geoff Oppert reached out to A Current Affair to warn other ratepayers to carefully check the fine print on their bills. The pair had made the decision to downsize their red-lid general waste bin after their daughter moved out of the family home, which ideally would have lowered their rates. Due to a mistake on their bills - clouded by legal jargon - the couple were paying twice as much for their red-lid garbage bin. This meant Kiama Council had been charging them for TWO bins for the past 12 years. "Look at your rates notice and check you're paying for just one bin," Mr Oppert told A Current Affair. "Over 12 years we paid $16,000 in garbage waste disposal and it really should have been half that," he said. "Our rate notice doesn't clearly say how many bins we have. It's bureaucratic speak no one could understand." When the couple finally realised the mistake they went straight to the council. "But they would only give us a refund for two years and quoted some tax act as the reason why," Mr Oppert explained. "It is so unfair and just not right," Mrs Oppert added. "It was their mistake not ours, and they admitted it.” Mr Oppert seeks to warn all Australians paying a council for a bin service, "Check your rates notice and make sure you're not getting ripped off.” Kiama Council were made aware of the situation and gave a partial refund to the couple. "When this matter was brought to our attention, Kiama Council acted quickly to rectify the situation, in accordance with the law, as outlined below.”, a Kiama Municipal Council spokesperson said in a statement. “We refunded the amounts of $805.72 for 2021-22 and $818.61 for 2022-23. The couple have not received a full refund due to tax laws. "The Office of Local Government has advised that, where charges go back more than 1 year, the Recovery of Imposts Tax Act 1963 applies as follows", the spokesperson continued. <img src="https://oversixtydev.blob.core.windows.net/media/2023/03/BINS-PIC.jpg" alt="" width="1280" height="720" /> "In addition, Kiama Council is now working on an audit of all our urban and residential waste services to ensure our charges are correct. "Council reminds all ratepayers to check their bills and if anything is unclear, please get in touch with us to discuss, we are always happy to help." Image credit: A Current Affair/Kiama Municipal Council

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