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Text messages reveal accused mushroom killer’s “horrible upbringing”

<p>Texts that alleged triple murderer Erin Patterson sent to a friend have emerged revealing her "horrible upbringing".</p> <p>The texts were sent shortly after the death of Patterson's mum Heather Scutter in 2019, where she described her mother as "cold" and "weird". </p> <p>“My mum was ultra weird her whole life,” she wrote.</p> <p>“We had a horrible upbringing. Mum was essentially a cold robot. It was like being brought up in a Russian orphanage where they don’t touch babies.</p> <p>"That's what my psych reckons. She said she wishes she could have studied my mum lol."</p> <p>The messages, obtained by the <em>Herald Sun, </em>also revealed Patterson's lack of connection with her late father Eitan Scutter, who she called "a doormat." </p> <p>“Dad wanted to be warm and loving to us but mum wouldn’t let him because it would spoil us so he did as he was told,” she said. </p> <p>“She would shout at him if he did the wrong thing so he became very meek and compliant.</p> <p>“My sister and I would hide in our room most of the time so we couldn’t do anything wrong.”</p> <p>These texts have emerged after a former colleague of Patterson described her as “eccentric” and “abrasive”, during her time as an air traffic controller in the early 2000s. </p> <p>The former colleague also told the <em>Herald Sun </em>that Patterson was highly intelligent and capable as she was able to graduate from the challenging training course and work independently in the field. </p> <p>“She was rated in the field and was actually responsible for running airspace for a while,” the former colleague told the publication. </p> <p>“She’s very bright and much brighter than people might think. She managed to get guys wrapped around her little finger although she was very unkempt … and she was abrasive.”</p> <p>A spokesperson from Airservices Australia had also confirmed that Patterson was employed as an air traffic controller from 12 February 2001 until 28 November 2002. </p> <p>Patterson has been <a href="https://www.oversixty.com.au/finance/legal/erin-patterson-charged-with-eight-counts-of-murder-and-attempted-murder" target="_blank" rel="noopener">charged</a> with three counts of murder and four counts of attempted murder, after being accused of serving up a beef Wellington pie that contained death cap mushrooms which resulted in the tragic deaths of Heather Wilkinson, Gail Patterson and Don Patterson. </p> <p>The attempted murder charges relate to her estranged husband Simon Patterson, and Heather's husband and Baptist church pastor, Ian Wilkinson who miraculously survived but was hospitalised in critical conditions for nearly two months. </p> <p>Patterson's two children were also in attendance, but did not consume the same meal.</p> <p>Ian has since been released and attended his wife's memorial in October. </p> <p><em>Image: News.com.au </em><em style="box-sizing: inherit; margin: 0px; padding: 0px; border: 0px; font-size: 16px; vertical-align: baseline; color: #323338; font-family: Figtree, Roboto, 'Noto Sans Hebrew', 'Noto Kufi Arabic', 'Noto Sans JP', sans-serif; background-color: #ffffff; outline: none !important;">/ A Current Affair</em></p>

Legal

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Accused mushroom killer puts home up for sale

<p>Erin Patterson, the woman charged with <a href="https://www.oversixty.com.au/finance/legal/erin-patterson-charged-with-eight-counts-of-murder-and-attempted-murder" target="_blank" rel="noopener">eight counts of murder and attempted murder</a>, after allegedly lacing meals with death cap mushrooms, has put her Melbourne property up for sale. </p> <p>In a case that has gripped the nation, Patterson is facing these charges following the tragic incident that occurred on July 29, as well as historic incidents involving her former husband.</p> <p>The major incident involved a mushroom lunch hosted in Patterson's home in Leongatha, where her former parents-in-law Don and Gail Patterson, both 70, and Gail’s sister, Heather Wilkinson, 66, died shortly after allegedly consuming a beef wellington.</p> <p>Heather's husband and Baptist church pastor, Ian Wilkinson, who also had the meal, miraculously survived, but was hospitalised in critical condition for nearly two months before being released in September. </p> <p>Patterson is also charged with four counts of attempted murder of her former partner, Simon Patterson, in separate incidences between between November 2021 and September 2022 and on the day of the lunch. </p> <p>She has consistently denied any wrongdoing. </p> <p>Now, her $1 million townhouse in Melbourne's east at the suburb of Mount Waverley has hit the market. </p> <p>She first bought the three-bedroom, three-bathroom property in 2019, and has infrequently visited it. </p> <p>It is not the house where the fatal mushroom incident took place. </p> <p>The 249-square-metre townhouse, will go to auction at 11am on Saturday and is expected to sell for around $960,000 to $1,050,000. </p> <p>Real estate agency Ray White has pitched the home to downsizers and families that want to send their children to a good school. </p> <p>“Desired for its defined dimensions and convenient placement in the Mount Waverley Secondary Catchment (STSA), this easy-care townhouse is equally suited to those starting out or downsizing as it is for families and investors,’’ the agents said.</p> <p>They also provided a description of the townhouse, which read: “Quietly tucked at the rear of only two, the residence takes great care in providing a comfortable lifestyle with the lounge room enriched with large windows, while the dining zone is accompanied by a well-equipped kitchen complete with a Bosch dishwasher.”</p> <p><em>Images: Realestate.com.au / A Current Affair</em></p>

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"Immense relief": Death cap mushroom survivor released from hospital

<p>Ian Wilkinson, the survivor of a suspected mushroom poisoning incident, has been discharged from Melbourne's Austin Hospital after spending two months in critical condition following a family gathering.</p> <p>Wilkinson, a Baptist pastor residing in the quaint South Gippsland town of Korrumburra, was among four individuals who fell seriously ill after consuming a beef Wellington dish suspected to have been contaminated with death cap mushrooms.</p> <p>Tragically, Wilkinson's wife, Heather, lost her life in the aftermath, as did Heather's sister, Gail Patterson, and her husband, Don.</p> <p>Ian managed to pull through, and his release from the hospital marked a significant milestone in his recovery. The Wilkinson family expressed their profound gratitude towards the hospital staff for their relentless dedication and exceptional care during this challenging period.</p> <p>"We are pleased to announce that Ian Wilkinson has made significant progress in his recovery and was released from Austin Hospital on Friday," the family said in a statement. "This milestone marks a moment of immense relief and gratitude for Ian and the entire Wilkinson family.</p> <p>"The Wilkinson family would like to extend their heartfelt thanks to the Leongatha, Dandenong and Austin Hospitals for their unwavering dedication and exceptional care that played a pivotal role in Ian's recovery.</p> <p>"The medical team's expertise and compassion have been a source of comfort and hope throughout this journey.</p> <p>"Additionally, the family is profoundly grateful for the outpouring of support, prayers, and well-wishes from the Korumburra community, church, friends, family, and colleagues.</p> <p>"This collective kindness has been a pillar of strength for Ian and the family, reinforcing the sense of unity and compassion that defines our community.</p> <p>"As Ian continues his journey towards full recovery, the Wilkinson family kindly requests that their privacy be respected."</p> <p>Meanwhile, the woman responsible for preparing the ill-fated meal, Erin Patterson, <a href="https://www.oversixty.com.au/finance/legal/details-of-erin-patterson-s-police-statement-around-fatal-mushroom-meal-revealed" target="_blank" rel="noopener">remains a suspect</a> as police homicide detectives continue their investigation into the three tragic deaths. She vehemently denies any wrongdoing.</p> <p><em>Image: Facebook</em></p>

Caring

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Son of death cap mushroom victim reveals mother's last message

<p>Simon Patterson, the son of Don and Gail Patterson, who tragically fell victim to a mushroom-related incident in Victoria, has spoken emotionally at a public memorial in Korumburra. This marked Simon's first public address since the unfortunate incident.</p> <p>Don and Gail Patterson, along with Gail's sister, Heather Wilkinson, tragically passed away after consuming a mushroom-infused meal at Erin Patterson's residence in Leongatha, Victoria. </p> <p>At the Korumburra Recreation Centre, Simon emotionally shared, “Mum and dad were very much a team working at life together. The fact they died on consecutive days is fitting in some ways, as it reflects their togetherness as a couple that they always worked so hard to grow.”</p> <p>Simon also disclosed the remarkable resilience of his father, who, despite being in his 70s, managed to survive an emergency liver transplant after the toxic meal. Sadly, his overall health deteriorated rapidly thereafter. Simon recounted the final message his mother sent to their family group chat before her hospitalisation, expressing gratitude for the love they shared.</p> <p>“It was no fluke that mum’s final text message as she lay in Dandenong Hospital was: ‘Lots of love to you all’.</p> <p>"As Mum and Dad lay in comas in the hospital in their final days and each day, we were unsure if they would recover or not, it was comforting to know that when we said: ‘See you later,’ we knew it was true.</p> <p>“The only thing we didn’t know was when. In the meantime, we’ll miss them.” </p> <p>Simon acknowledged his parents' strong Christian faith and emphasised that they were open-minded believers who respected diverse perspectives. He reflected on their perspective on death as an inevitable part of life but not the ultimate end.</p> <p>In a gesture of gratitude, Simon thanked the medical staff at Austin and Dandenong hospitals for their care, particularly noting the compassionate act that allowed Gail to see Don one last time before his transfer to the ICU.</p> <p>Heather Wilkinson's situation remains critical, and her husband, Ian Wilkinson, a church pastor, is recovering in the hospital after consuming the same meal. Reverend Fran Grimes expressed support for Ian's recovery during the memorial service.</p> <p>Detectives are collaborating with the Department of Health to further investigate the incident.</p> <p><em>Images: 7 News / Twitter (X)</em></p>

Family & Pets

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Touching update on death cap mushroom victims

<p>A public memorial will be held for Don and Gail Patterson after an outpouring of support from the local community. </p> <p>The couple died on July 29 after having lunch that was cooked by their former daughter-in-law, Erin Patterson, which was presumed to have contained death cap mushrooms. </p> <p>Gail's sister Heather Wilkinson  also passed away after having the meal, and her husband Ian remains in hospital in a <a href="https://www.oversixty.com.au/health/caring/update-from-survivor-of-deadly-mushroom-meal" target="_blank" rel="noopener">critical but stable condition. </a></p> <p>The Patterson family released a statement on Tuesday announcing the public memorial service and have invited members of the community to attend, according to the <em>South Gippsland Sentinel Times.</em></p> <p>“The family of Don and Gail Patterson wishes to extend an invitation to the community for a public memorial service to celebrate and remember the lives of Don and Gail,” the statement read. </p> <p>“Both were cherished members of the community, known for their humility and the positive impact they had on those around them.</p> <p>“The Patterson family has expressed their deep gratitude for the outpouring of love, support, and understanding during this challenging time.</p> <p>“They have been touched by the many memories and stories shared by friends, acquaintances, and even strangers who were touched by Don and Gail's kindness and generosity," they added. </p> <p>A private funeral was held earlier in the week to allow the family to grieve and put the victims to rest, but now the family wanted to give the public a chance to pay tribute to the couple.</p> <p>“In keeping with Don and Gail's wishes and character, the family has chosen to commemorate their lives in a manner that reflects their values and the love they shared with their community.</p> <p>“A private burial was held earlier this week, attended by close family members.</p> <p>“The upcoming public memorial will be an opportunity for all who knew Don and Gail to come together, share memories, and celebrate the lasting legacy they have left behind," the statement concluded.  </p> <p>Victoria Police continue to investigate the deaths, but have not laid any charges. </p> <p>Erin Patterson has <a href="https://www.oversixty.com.au/finance/legal/details-of-erin-patterson-s-police-statement-around-fatal-mushroom-meal-revealed" target="_blank" rel="noopener">spoken up about  the tragic incident </a>and continues to assist the police in their investigation. </p> <p><em style="box-sizing: inherit; margin: 0px; padding: 0px; border: 0px; font-size: 16px; vertical-align: baseline; color: #323338; font-family: Figtree, Roboto, Rubik, 'Noto Kufi Arabic', 'Noto Sans JP', sans-serif; background-color: #ffffff; outline: none !important;">Images: News.com.au</em></p>

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The rental housing crisis is hurting our most vulnerable and demands a range of solutions (but capping rents isn’t one of them)

<p><em><a href="https://theconversation.com/profiles/andrew-beer-111469">Andrew Beer</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> and <a href="https://theconversation.com/profiles/emma-baker-172081">Emma Baker</a>, <a href="https://theconversation.com/institutions/university-of-adelaide-1119">University of Adelaide</a></em></p> <p>Roughly <a href="https://www.abs.gov.au/statistics/people/housing/housing-occupancy-and-costs/2019-20">one in three Australians</a> rent their homes. It’s Australia’s fastest-growing tenure, but renting is increasingly unaffordable. From 2020 to 2022, our <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4253168">research</a> found a large increase in the proportion of renters who said their housing was unaffordable.</p> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=217&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=217&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=217&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=273&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=273&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/542737/original/file-20230815-25187-p7vxqo.png?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=273&amp;fit=crop&amp;dpr=3 2262w" alt="horizontal bar chart showing changes in Australian renters' assessments of affordability form 2020 to 2022" /></a><figcaption><span class="caption">Change in Australian renters’ assessments of affordability from 2020 to 2022.</span> <span class="attribution"><span class="source">Baker, Daniel, Beer, et al, forthcoming, The Australian Housing Conditions Dataset, doi:10.26193/SLCU9J, ADA Dataverse</span></span></figcaption></figure> <p>Australians are concerned about the <a href="https://www.theguardian.com/australia-news/2023/jul/05/rents-rise-again-across-australia-with-sydney-seeing-fastest-rise-in-20-years">pace</a> of <a href="https://www.sbs.com.au/news/article/how-much-has-rent-increased-around-australia/8ljlnf0zm">rent rises</a>. Prime Minister Anthony Albanese <a href="https://www.pm.gov.au/media/national-cabinet-meeting">says</a> increasing housing supply and affordability is the “key priority” for tomorrow’s national cabinet meeting.</p> <p>The crisis has impacts well beyond affordability. The rental sector is where the worst housing accommodates the poorest Australians with the worst health.</p> <h2>The unhealthy state of rental housing</h2> <p>Forthcoming data from the <a href="https://dataverse.ada.edu.au/dataverse/ahcdi">Australian Housing Conditions Dataset</a> highlight some of these parallel challenges:</p> <ul> <li> <p>it’s often insecure – the average lease is less than 12 months, and less than a third of formal rental agreements extend beyond 12 months</p> </li> <li> <p>rental housing quality is often very poor – 45% of renters rate the condition of their dwelling as “average, poor, or very poor”</p> </li> <li> <p>poor housing conditions put the health of renters at risk – 43% report problems with damp or mould, and 35% have difficulty keeping their homes warm in winter or cool in summer</p> </li> <li> <p>compounding these health risks, people with poorer health are over-represented in the rental sector. Renters are almost twice as likely as mortgage holders to have poorer general health.</p> </li> </ul> <p>Measures that potentially restrict the supply of lower-cost rental housing – such as rent caps – will <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4253168">worsen these impacts</a>. More households will be left searching in a shrinking pool of affordable housing.</p> <h2>It’s all about supply</h2> <p>Fixing the rental crisis needs more than a single focus on private rental housing. The movement between households over time between renting and buying homes means the best solutions are those that boost the supply of affordable housing generally. No one policy can provide all the answers.</p> <p>Governments should be looking at multiple actions, including:</p> <ul> <li> <p>requiring local councils to adopt affordable housing strategies as well as mandating <a href="https://www.ahuri.edu.au/analysis/brief/understanding-inclusionary-zoning">inclusionary zoning</a>, which requires developments to include a proportion of affordable homes</p> </li> <li> <p>improving land supply through better forecasting at the national, state and local levels</p> </li> <li> <p>giving housing and planning ministers the power to deliver affordable housing targets by providing support for demonstration projects, subsidised land to social housing providers and access to surplus land</p> </li> <li> <p>boosting the recruitment and retention of skilled construction workers from both domestic and international sources.</p> </li> </ul> <h2>The biggest landlord subsidy isn’t helping</h2> <p>More than <a href="https://data.gov.au/data/dataset/taxation-statistics-2020-21/resource/ebbd32e3-4556-41e1-a8b9-33387457d518">1 million Australians</a> claim a net rent loss (negative gearing) each year. Even though negative gearing is focused on rental investment losses, it is not strictly a housing policy as it applies to many types of investment.</p> <p>The impact of negative gearing on the housing system is untargeted and largely uncontrolled. As a result, it’s driving outcomes that are sometimes at odds with the need to supply well-located affordable housing.</p> <p>The most impactful action the Australian government could take to deliver more affordable rental housing nationwide would involve refining negative-gearing arrangements to boost the supply of low-income rentals. These measures may involve</p> <ul> <li>limiting negative gearing to dwellings less than ten years old</li> <li>introducing a low-income tax credit scheme similar to the one in the United States.</li> </ul> <p>We can learn much from the US, where the Low-Income Housing Tax Credit (<a href="https://www.huduser.gov/portal/datasets/lihtc.html">LIHTC</a>) scheme subsidises the acquisition, construction and renovation of affordable rental housing for tenants on low to moderate incomes. Since the mid-1990s, the program has supported the construction or renovation of about 110,000 affordable rental units each year. That adds up to over <a href="https://www.taxpolicycenter.org/briefing-book/what-low-income-housing-tax-credit-and-how-does-it-work">2 million units</a> at an estimated annual cost of US$9billion (A$13.8billion).</p> <p>This scheme is much less expensive per unit of affordable housing delivered than Australia’s system of negative gearing.</p> <p>Closer to home, the previous National Rental Affordability Scheme showed the value of targeted financial incentives in encouraging affordable housing. This scheme, available to private and disproved investors, generated positive outcomes for tenants. The benefits included better health for low-income tenants who were able to moved into quality new housing.</p> <p>A <a href="https://cityfutures.ada.unsw.edu.au/documents/81/Next_moves_report.pdf">raft</a> of <a href="https://apo.org.au/node/260431">evaluations</a> have <a href="https://www.ahuri.edu.au/research/final-reports/267">demonstrated</a> the achievements of this scheme.</p> <h2>Crisis calls for lasting solutions</h2> <p>Short-term measures such as rent caps or eviction bans will not provide a solution in the near future or even the medium or long term. Instead, these are likely to worsen both the housing costs and health of low-income tenants.</p> <p>Reform focused on ongoing needs is called for. Solutions that can be implemented quickly include the tighter targeting of negative gearing and the introduction of a low-income housing tax credit.</p> <p>Talking about change, as the national cabinet is doing, will begin that process of transformation, but it must be backed up by a range of measures to boost the supply of affordable housing. This, in turn, will improve the housing market overall as affordable options become more widely available.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><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/211275/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/andrew-beer-111469">Andrew Beer</a>, Executive Dean, UniSA Business, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> and <a href="https://theconversation.com/profiles/emma-baker-172081">Emma Baker</a>, Professor of Housing Research, <a href="https://theconversation.com/institutions/university-of-adelaide-1119">University of Adelaide</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-rental-housing-crisis-is-hurting-our-most-vulnerable-and-demands-a-range-of-solutions-but-capping-rents-isnt-one-of-them-211275">original article</a>.</em></p>

Real Estate

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“I really thought it was the end”: Death cap mushroom survivor breaks silence

<p dir="ltr">The man who survived the poisoning effects of eating a death cap mushroom has spoken out, after consuming the deadly ingredients in a dish of spaghetti bolognese prepared by his wife.</p> <p dir="ltr">The same toxic mushroom is now linked to a suspected poisoning in Victoria that has claimed the lives of three people. </p> <p dir="ltr">The shocking incident occurred in 1998, when Simon Claringbold was a robust and athletic 39-year-old, who had an active lifestyle and regularly ran marathons. </p> <p dir="ltr">Mr Claringbold told ABC’s <em>7.30</em> program that he picked the mushrooms in his backyard in Canberra earlier in the day, thinking they were field mushrooms, before discovering they were actually death caps. </p> <p dir="ltr">His wife then cooked them into a spaghetti bolognese, and just 18 hours after eating the contaminated meal, his health took a turn for the worst. </p> <p dir="ltr">Mr Claringbold was rushed to hospital after he became violently ill and started rapidly deteriorating, triggering an arduous battle for his life. </p> <p dir="ltr">The toxic mushrooms Mr Claringbold ingested are understood to be the same variety in the recent poisoning, however, Mr Claringbold’s survival from the ordeal is believed to be sheer luck.</p> <p dir="ltr">Medical experts have explained that death cap mushrooms can vary significantly in their toxicity, making it a game of chance for those who inadvertently ingest them. </p> <p dir="ltr">“Their toxin levels aren’t going to be consistent; it’s not like taking a pill out of a bottle,” Mr Claringbold emphasised to <em>7.30</em>, highlighting the unpredictable nature of the poison.</p> <p dir="ltr">After presenting to the hospital with intense vomiting and diarrhoea, Mr Claringbold gave the hospital a sample of the mushroom to healthcare professionals, who tested the toxin. </p> <p dir="ltr">His health continued to spiral as he encountered hallucinations, moments of blackout and major stress on his liver. </p> <p dir="ltr">“I was preparing for the end, I really thought it was the end. The lights were starting to go out,” he recounted.</p> <p dir="ltr">Remarkably, Mr Claringbold defied the odds, emerging from the ordeal after an 11-day hospitalisation.</p> <p dir="ltr">Mr Claringbold’s story has come in the wake of the <a href="https://oversixty.com.au/finance/legal/new-details-emerge-in-fatal-mushroom-poisoning-incident">death of his parents</a>, Gail and Don Patterson, and Gail’s sister-in-law Heather Wilkinson, who died after ingesting the same variety of mushroom. </p> <p dir="ltr">Erin Patterson, the 48-year-old ex-wife of Simon Claringbold, allegedly prepared the meal, and had reportedly invited the family over for lunch to negotiate a reconciliation.</p> <p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 18pt;"><em>Image credits: ABC - 7.30</em><span id="docs-internal-guid-e2f95f73-7fff-9efa-8aa8-e6222db6a2c9"></span></p>

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Why capping food prices won’t work – and will actually make things worse

<p>Australian shoppers are facing a crisis in the fresh-food aisles.</p> <p>Iceberg lettuces that cost $2.80 a year ago have doubled, or <a href="https://www.abc.net.au/news/rural/2022-06-08/lettuce-shortage-continues-and-fruit-and-vegetable-prices-rise/101133906" target="_blank" rel="noopener">tripled</a>, in price. Brussel sprouts that cost <a href="https://www.sydneymarkets.com.au/recipes-and-produce/market-report/28-june-4-july-2021.html" target="_blank" rel="noopener">$4 to $6 a kilogram</a> are now <a href="https://www.sydneymarkets.com.au/recipes-and-produce/market-report/6-12-june-2022.html" target="_blank" rel="noopener">$7 to $14</a>. Beans that cost <a href="https://www.sydneymarkets.com.au/recipes-and-produce/market-report/28-june-4-july-2021.html" target="_blank" rel="noopener">$5 to $6 a kilogram</a> are now more than double – and <a href="https://www.abc.net.au/news/2022-06-13/fresh-produce-too-expensive-remote-living-cost-of-living-crisis/101057668" target="_blank" rel="noopener">five times as much</a> in remote areas.</p> <p>That’s if you can even find such produce. Supermarket shelves for leafy greens are often bare.</p> <p>This is a strong hint as to why prices have risen so much. As well as growers facing higher input costs – in line with pressures pushing up food prices globally – these price hikes are being driven by lack of supply – with crops and <a href="https://www.theguardian.com/australia-news/2022/mar/04/weve-run-out-of-lettuce-supermarkets-and-restaurants-face-fresh-food-shortage-after-nsw-and-queensland-floods" target="_blank" rel="noopener">stores</a> wiped out by rain and floods in eastern Australia.</p> <p>The price hikes have led to calls for supermarkets to impose <a href="https://www.abc.net.au/news/rural/2022-06-17/call-supermarket-cap-price-fresh-produce/101156252" target="_blank" rel="noopener">price caps</a> to ensure shoppers can still afford to feed their families healthy food.</p> <p>But price ceilings on goods or services rarely, if ever, work. Prices play an important role in allocating resources efficiently. They send a signal to both customers and suppliers. To arbitrarily reduce prices would only increase shortages – both now and in the longer term.</p> <h2>Supply, demand and market equilibrium</h2> <p>The laws of supply and demand are fundamental concepts in economics. The law of demand says buyers will demand less of an economic good the higher its price. The law of supply says sellers will supply more of a good the higher the price. There are some rare exceptions, but generally these laws describe all markets.</p> <p>British economist Alfred Marshall was the first to illustrate the interaction of these two laws graphically, in his 1890 book <a href="https://opentextbc.ca/principlesofeconomics/" target="_blank" rel="noopener">Principles of Economics</a>. Market equilibrium (balance) occurs at the price and quantity where demand equals supply.</p> <p>If the quantity supplied falls, the market response is for prices to rise, achieving a new equilibrium. If the quantity supplied falls but prices remain the same, demand will outstrip supply, leading to shortages.</p> <p>Fresh fruit and vegetables are particularly prone to significant price fluctuations because they are perishable and cannot be easily stored for a long time. This why seasonal price fluctuations are common.</p> <p>Higher prices provide a signal both to consumers and producers. They tell consumers to buy less and switch to alternatives. They provide an incentive for producers to grow more – though this process is fairly slow given the time needed to grow and harvest fruit and vegetables.</p> <p>But eventually, if the market is left to its own devices, prices will eventually return to “normal”, consistent with historical prices.</p> <p>Capping the price, on the other hand, will benefit those lucky enough to grab supplies when they available. But it will likely reduce supply even further, by affecting the decision of producers unwilling to supply at below-market prices.</p> <p>It could also lead to a “black market”, with some customers sourcing supplies by other means at higher uncapped prices.</p> <h2>Evidence from rent controls</h2> <p>The economic theory of price caps is well supported by empirical evidence. The best-known involve rent controls, which are used in US cities such as New York City and Los Angeles, and <a href="https://www.jonesday.com/en/insights/2020/10/mapping-out-rental-controls-across-europe" target="_blank" rel="noopener">in European cities</a> such as Stockholm, Berlin and Dublin.</p> <p>Rent controls mean some are lucky enough to find an affordable apartment. Many others miss out – or engage in “deals” with landlords to get around the controls. The most disadvantaged tend to lose out most since landlords can discriminate in favour of what they consider the “more desirable” tenants.</p> <p>As Stanford University economist Rebecca Diamond <a href="https://www.brookings.edu/research/what-does-economic-evidence-tell-us-about-the-effects-of-rent-control/" target="_blank" rel="noopener">has written</a>:</p> <blockquote> <p>While rent control appears to help current tenants in the short run, in the long run it decreases affordability, fuels gentrification, and creates negative spillovers on the surrounding neighborhood.</p> </blockquote> <p>As with housing, so too with broccoli and cabbage.</p> <h2>We’ve seen this all before</h2> <p>So generally price caps are to be avoided.</p> <p>If there are suspicions of wholesalers or retailers exploiting shortages, this is best handled by the Australian Consumer and Competition Commission. Though “price gouging” <a href="https://www.accc.gov.au/media-release/accc-response-to-covid-19-pandemic" target="_blank" rel="noopener">is generally not illegal</a>, the consumer watchdog can prosecute companies for makes misleading claims about the reasons for price increases and for unconscionable conduct (in the case of extreme gouging for an essential good).</p> <p>What else can be done? Only what consumers have always done, which is to substitute relatively cheaper goods for those becoming more expensive.</p> <p>We’ve seen this before. Queensland’s floods in 2011 destroyed vast crops of bananas and watermelons, causing prices to skyrocket. Shoppers switched to other fruits. Banana farmers recovered. Prices dropped.</p> <p>These high prices for lettuce and such now may be a shock, but they are not a sign of market failure requiring intervention. If we let the market do its thing, shortages will end and prices return to “normal” – at least until the next natural disaster.</p> <p><em><strong><span id="docs-internal-guid-872c756f-7fff-bbdc-6911-4ed4a37e0bfb">This article originally appeared on <a href="https://theconversation.com/why-capping-food-prices-wont-work-and-will-actually-make-things-worse-185492" target="_blank" rel="noopener">The Conversation</a>.</span></strong></em></p> <p><em>Image: Shutterstock</em></p>

Money & Banking

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Death cap mushroom warning issued after record number of poisonings

<p>An urgent warning has been issued for Melbourne and regional Victoria after the number of mushroom poisoning incidents doubled across the state.</p> <p>On Wednesday, the health department said a combination of recent rain and "ideal growing conditions" have caused the deadly mushrooms to sprout across the state, particularly the toxic Deathcap and the Yellow Stainer.</p> <p>Multiple poisoning cases required people to be treated in intensive care.</p> <p>Victoria's Poisons Information Centre saw an influx of calls in 2020, due to the combination of the COVID-19 pandemic.</p> <p>There were 426 calls, which was more than double from the last two years.</p> <p>Previously, the mushrooms have sprouted in a number of public areas in the city, including the Domain Gardens and the Botanic Gardens.</p> <p>“Symptoms of poisoning can include violent stomach pains, nausea, vomiting and diarrhoea,” Victoria’s Deputy Chief Health Officer Dr Angie Bone said in a statement on Wednesday.</p> <p>“Symptoms may subside after a day or two - but this doesn’t necessarily mean recovery in the case of Death Cap poisoning.</p> <p>“Death can follow within 48 hours from serious liver damage. The Death Cap is extremely toxic and responsible for 90 per cent of all mushroom poisoning deaths.”</p> <p>Both the Deatchcap and Yellow Stainer mushrooms look almost identical to edible mushrooms found at supermarkets.</p> <p>In May 2020, Dr Bone said one elderly person died in hospital after consuming deadly mushrooms.</p> <p>Around eight people were also “severely poisoned” in the space of just a few days.</p>

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Shocking Commonwealth Bank statement shows why credit card limits must be capped

<p>A whopping 1.9 million Australians are struggling with credit card debt, a recent report by the Australian Securities and Investments Commission has found.</p> <p>It remains the number one issue facing callers to the National Debt Helpline, with the problem so huge that in February this year, ASIC was tasked with setting up a cap on credit card limits, based on an amount that can be “affordably repaid” within a set period.</p> <p>In a joint submission to ASIC’s credit card <span style="text-decoration: underline;"><strong><a href="https://asic.gov.au/regulatory-resources/find-a-document/consultation-papers/cp-303-credit-cards-responsible-lending-assessments/">responsible lending consultation paper</a>,</strong></span> the Consumer Action Law Centre, Choice, Financial Counselling Australia and the Financial Rights Legal Centre called for the cap to be limited to two years.</p> <p>“A two-year assessment period would ensure that Australians are not trapped in long term, expensive credit card debt,” the submission said. “We consider that this proposal would significantly reduce the consumer harm being caused by inappropriate credit card product design and lending practices.”</p> <p>Take Mary’s story contained in the submission; she’s a 79-year-old age pensioner who has been struggling to pay off a $1500 credit card debt for 15 years, because of the accumulating interest.</p> <p>Or Assam’s story, a 58-year-old disability support pensioner, who has been unable to work since 2003 due to ill health. His bank CommBank has given him no fewer than five credit cards and jacked up his limit on his CommBank Mastercard from $2000 to $44,600 in 2015.</p> <p>His credit card statement from January 2018 reads: “If you make only the minimum repayment each month, you will pay off the closing balance shown on this statement in about 146 years, five months. And you will end up paying estimated total interest charges of $340,604.78.”</p> <p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://cdn.newsapi.com.au/image/v1/33ea379623497e971a82a88c0ad627ea" alt="Assam’s CommBank credit card statement." width="650" height="366" /></p> <p>Consumer Action Law Centre senior policy officer Katherine Temple told <strong><u><a href="https://www.news.com.au/finance/business/banking/you-will-pay-off-your-balance-in-146-years-five-months-cbas-centuryandahalf-debt-trap/news-story/9cb48ba1668ae4a47d9498ea4de2e927">news.com.au</a></u></strong>: “People who are in persistent credit card debt are actually very profitable to the banks.</p> <p>“People who are struggling to make ends meet tend to be the ones that pay the most in interest and fees, so trapping people in a cycle of credit card debt is often in the banks’ interests.”</p> <p>She added: “Banks have designed and marketed credit cards in a way they are setting many people up to fail. What we see is people often don’t get to the point of default, they are constantly just making the minimum repayments but not really getting ahead in terms of the principal amount owed.</p> <p>“In the industry they call them ‘revolvers’ and ‘transactors’. The intention is to keep people revolving, always having a balance that’s accruing, rather than transacting where you pay the balance off every month.”</p> <p>Although credit cards have always been subject to responsible lending obligations, the assessment has been based on people’s ability to repay the minimum amount, which means people could be left paying off the same debt for decades.</p> <p>The new ASIC rules, which will apply to all new cards issued after January 1, 2019, has been welcomed by consumer groups who have long argued credit cards have “been designed to trap many people in long-term, expensive debt”.</p> <p>Ms Temple said it was “just another example of the banks designing their products in the way that makes them the most money rather than in a way that helps people’s financial wellbeing”.</p> <p>“If they were serious about doing the right thing they would be promoting savings more and selling us products that suit our needs, rather than trying to trap us in decades of debt,” she said.</p>

Money & Banking

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Changes to credit card fees to affect frequent flyer points

<p>Last year, the Reserve Bank of Australia announced it will enforce a cap on the interchange fees on credit cards</p> <p>This change will be effective from July 1 and it will mean most banks will be reducing the customers’ points-earning power.</p> <p>Interchange fees are the money that credit card companies pay the bank each time a customer uses their card. The new regulations will cap the fees at 0.8 per cent, while the current system has seen some fees go up to three per cent.</p> <p>"Every time you use your credit card to buy something, your bank makes money by collecting an ‘interchange fee’ from the business that processed your payment, and uses this money to help buy the frequent flyer points you’re earning from the airlines,” said Chris Chamberlin credit card guru at <em><strong><span style="text-decoration: underline;"><a href="http://www.ausbt.com.au/" target="_blank">Australian Business Traveller</a></span></strong></em>.</p> <p>“For example, for every $1,000 you spend on your credit card, you bank could currently be earning around $30 in interchange fees on high-level American Express cards (at a three per cent fee) or even $10 on Visas and MasterCards (at a 1 per cent fee) — but once the new cap takes place in July, revenue would be capped at just $8 on the same spend (0.8 per cent), and with less money available to spend on points, banks can’t afford to buy as many of them for their customers and so are reducing earn rates.”</p> <p>This change will impact Visa, MasterCard and American Express card holders.</p> <p>ANZ bank has responded to these caps by announcing that it will discontinue its AMEX card and they have already stopped issuing these cards.</p> <p>This change will affect all bank-issued American Express cards, however, the cap doesn’t apply to credit cards issued directly by American Express as they have their own payment network that doesn’t rely on an interchange fee system.</p> <p>“That means American Express is now becoming the go-to option for credit cards that earn frequent flyer points, with its top-level cards churning out up to three frequent flyer points per dollar spent on selected transactions and its other Black- and Platinum-level products doling out a solid 1.5 airline frequent flyer points per dollar spent on most transactions, uncapped,” says Chamberlin.</p> <p>Steven Hui from <span style="text-decoration: underline;"><strong><a href="http://iflyflat.com.au/" target="_blank">iFLYflat.com.au</a></strong></span><span> </span>encourages all credit card holders to research how their card will be impacted by the changes so they are not caught off guard.</p> <p>“My advice to everyone with a credit card to review and be aware of what is changing, as nearly every credit card will have some change on July 1. The worst outcome is for cardholders that continue using their old card thinking they are getting A, but find out 12 months later they are getting B (which is significantly less than expected – as points lost cannot be recovered).”</p>

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Gold Opal daily cap could rise and self-funded retirees could lose cards

<p>The daily cap of Gold Opal cards could be set to rise and self-funded retirees stripped of their cards if the proposals of the Independent Pricing and Regulatory Tribunal are taken up.</p> <p>The Tribunal has recommended an increase in the daily cap for the Gold Opal from $2.50 to $3.60, noting that the cap on all-day for seniors and pensioners had not increased in 10 years, whereas the average fares for public transport had increase by 30 per cent. They’ve also suggested Gold Opal cardholders receive no extra discounts for weekend travel, arguing the card’s "discount is already considerable".</p> <p>It has also proposed tightening the criteria for the Gold Opal smartcard to "achieve fairer fares" by means-testing access. That would mean the daily cap on fares for self-funded retirees would triple.</p> <p>The Gold Opal card is one of the state’s few universal concessions based on age. Irrespective of income, any resident 60 and older, and not working more than 20 hours a week, is entitled to a senior’s card. There are more than 1.4 million people in NSW that hold seniors cards.</p> <p>Seniors groups have come out against both changes.</p> <p>Ian Day, Council on the Ageing NSW's chief executive, said the changes would discourage seniors from taking public transport, risking further isolation of the older demographic.</p> <p>"Saving a bit of money and isolating a lot of people doesn't make a lot of sense," he said.</p> <p><strong>Related links: </strong></p> <p><span style="text-decoration: underline;"><em><a href="/travel/daily-transport/2015/04/arrange-travel-online/"><strong>Save time by arranging public transport online</strong></a></em></span></p> <p><span style="text-decoration: underline;"><em><a href="/travel/daily-transport/2015/05/5-reasons-to-get-an-opal-card/"><strong>5 reasons why you should get an Opal card</strong></a></em></span></p> <p><span style="text-decoration: underline;"><em><a href="/travel/daily-transport/2015/05/5-reasons-to-get-an-opal-card/"></a></em></span></p> <p><span style="text-decoration: underline;"><em><a href="/travel/daily-transport/2015/05/how-to-use-opal-card/"><strong>Where can I use my Opal (and other states' smartcards)?</strong></a></em></span></p>

News

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The problem with the government’s superannuation cap

<p>Last November, it was revealed that government was considering implementing a lifetime cap to the amount of voluntary super contributions someone could make, as part of the government’s tax reform package. As with any issue related to retirement income the reasons are complex.</p> <p>Basically, the government is currently losing a significant amount of money from high income earners who voluntarily contribute large amount of money into their super just before retirement, with a view to take advantage of the various tax concessions available when they withdraw it after retiring.</p> <p>The government is reportedly favouring the idea of a lifetime cap to voluntary contributions, mainly because it would potentially mean that the $2 trillion dollars in super that has already been saved up by millions of Australians will not be affected by a sudden change to the rules.</p> <p>Currently, there is an annual cap of $180,000 on non-concessional super contributions and while people under the age of 65 are allowed to bring forward future contributions, they cannot contribute more than $540,000 over three years. Modelling commissioned by The Greens from the Parliamentary Budget Office (PBO), suggest that if a lifetime superannuation cap of $500,000 was created then it would improve the budget by approximately $2.5 billion over the next decade.</p> <p>Interestingly though, any cap that goes higher than $540,000 end up costing the budget money over the long term, due to costs administering the contributions.</p> <p>But not everyone is a fan of the idea. John Daley from the Grattan Institute warns of the problems in fairness that would be associated by the government administering a lifetime super cap, “We only really have very good records back to about 2003, so anyone who has put any money in before 2003 will probably get a free pass. And superannuation which has of course already delivered phenomenally large tax breaks to an older generation will effectively deliver even more.”</p> <p>The results of the reforms remains to be see, and whether placing caps on voluntary super contributions is an effective means of achieving income for the government is somewhat debatable but as Greens MP Adam Bandt points out, “It’s getting next to impossible to have a sensible debate about how to raise money in this country, because the government says everything is on the table but they’re keeping the table in a closed room behind locked doors.”</p> <p><strong>Related links:</strong></p> <p><em><span style="text-decoration: underline;"><strong><a href="/finance/retirement-income/2015/12/common-mistakes-first-time-investors/">5 common mistakes first time investors make</a></strong></span></em></p> <p><em><span style="text-decoration: underline;"><strong><a href="/finance/retirement-income/2015/12/driving-in-retirement/">Do I need a car in retirement?</a></strong></span></em></p> <p><em><span style="text-decoration: underline;"><strong><a href="/finance/retirement-income/2015/12/8-tips-to-help-downsize-in-retirement/">8 tips that will help you downsize in retirement</a></strong></span></em></p>

Retirement Income

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The snow-capped mountain metropolis people never want to leave

<p>If you think of a ski resort as a pretty mountain village with snow-capped peaks soaring above, some glamorous people promenading the pathways and tanned sporty types hurtling down the slopes, then Whistler has all that.</p> <p>But is has so much more; it has gone way beyond being a resort, it's a metropolis with mountains attached; a location with a lifestyle, and despite its size and popularity, there is still some heart and soul.</p> <p>"Some people come here for a gap year," says one local on a ski-lift, "and they end up staying for a gap life."</p> <p><img width="497" height="330" src="https://oversixtydev.blob.core.windows.net/media/11413/canada_497x330.jpg" alt="Canada" style="display: block; margin-left: auto; margin-right: auto;"/></p> <p>She's right, and they've given the place its character – total enthusiasm for outdoor pursuits and a total appreciation of the mountain environment and culture.</p> <p>Summer here is almost as busy as winter, with mountain hikers and bikers exploring the terrain, people paddling on the rivers and lakes and some still skiing on the glaciers way up high.</p> <p>The permanent population is 10,000, there are 30,000 visitor beds and on a big day – Vancouver is an easy drive away and Seattle not so far either – the Whistler area can be hosting 70,000 people.</p> <p>So the mountain can get crowded – there's enough room on the slopes, but the lift queues can be lengthy.</p> <p>That makes it all the more appealing to take a ski or snowboard lesson, or a clinic, which comes with lift priority: you get to cut to the front of the queue.</p> <p>We are to ski for a day with Extremely Canadian, a Whistler-born tuition and guiding service that shows skiers and boarders how to handle this vast area's steeper terrain.</p> <p><img width="497" height="330" src="https://oversixtydev.blob.core.windows.net/media/11414/canada-two_497x330.jpg" alt="Canada Two" style="display: block; margin-left: auto; margin-right: auto;"/></p> <p>Our coach Wendy Brookbank, from nearby Pemberton, spent time on the ski competition circuit, was in the world's first televised extreme skiing event (1991, Juneau, Alaska) and now applies her considerable skills as a skier and talents as a teacher to people who want to improve their angles.</p> <p>There's a lot of skiing and just the right amount of theory passed on: "You can't cloud people's minds with too much detail, especially in challenging terrain where they might be more nervous," Wendy says.</p> <p>We position ourselves for the drop at the top of Whistler Bowl; there's the lip of a cornice to deal with first and while it won't make the movies, there's still the risk of a tricky tumble into the terrain below. The bowl opens up nicely, but if you miss the entry from the cornice, you'll be sliding down that slope for an uncomfortable while before you pull yourself up.</p> <p>That allows some time for thinking about all the things that could go wrong ... Wendy keeps it simple: "Keep a defensive hand below you, hold that downhill pole straight out from your body, that'll help your stance but will also be there if you need it.</p> <p>"Keep your chin up and your eyes and head still, not moving, and pointing down the hill in the direction of the turn."</p> <p><img width="500" height="334" src="https://oversixtydev.blob.core.windows.net/media/11415/canada-three_500x334.jpg" alt="Canada Three" style="display: block; margin-left: auto; margin-right: auto;"/></p> <p>The snow is hard-packed and she points out that "it'll go ka-thunk, ka-thunk, ka-thunk". "Just absorb it," she says.</p> <p>It does and we do – and after the tricky entrance, the turns on the steep terrain are a sweet return. Once you have your rhythm and confidence, it's like free-falling.</p> <p>We cover a lot of ground. There are two huge mountains – Whistler and Blackcomb – both with glaciers at their higher reaches and long, entertaining runs moving down from the open slopes and into the forests.</p> <p>It gives the mix of terrain North American resorts are so well known for – some steeps for the challenge, but plenty of the long, scenic cruising runs that most people prefer to ride.</p> <p>To connect the two mountains, before it hosted the skiing events of the 2010 Vancouver Olympics, Whistler built the Peak to Peak gondola and for fans of the engineering brilliance of ski lifts, it takes some beating.</p> <p>It travels 4.4 kilometres and at its longest stretch has a 3.03-kilometre span between towers. At its highest point it is 463 metres above the ground. Look away now if you get vertigo: it even has some cars with glass floors so you can get the full viewing experience.</p> <p>We use it to cross from Whistler Mountain to Blackcomb then ride its lifts up to Blackcomb Glacier. There we climb up a ridge on a stretch called Spanky's Ladder to ski gems of bowls known as Diamond and Sapphire.</p> <p>I peer over the edge, neck out like a stork to find the friendliest way in. "Hey there Hugo," says Wendy, as a tall, athletic skier climbs the last few steps to the lip, clicks into his skis and replies with a "how's it going, Wendy", before leaping into Diamond Bowl and making it shine.</p> <p>There goes Hugo Harrison. He is to big mountain skiing – judged descents on steep terrain with speed, style and creativity – what Roger Federer is to tennis.</p> <p>They're the kind of people you keep bumping into around here, the Hugos and the Wendys – devoted skiers and snowboarders who either grew up on these slopes or arrived here along some fortuitous path and just never saw the reason to leave.</p> <p>It's difficult to argue with their reasoning.</p> <p>Written by Jim Darby. First appeared on <a href="http://www.Stuff.co.nz" target="_blank"><span style="text-decoration: underline;"><strong>Stuff.co.nz</strong></span></a>. </p> <p><em><strong>No matter where you’re travelling to, making sure you know how to access your cash while away – and in the most affordable way – is very important. Easy to use and with countless benefits, the Over60 Cash Passport allows you to securely access your cash in the same way you use an ATM or credit card­.<a href="https://oversixty.cashpassport.com.au"><span style="text-decoration: underline;"> To find out how you can apply for a card today, click here.</span></a></strong></em></p> <p><em><strong>Have you arranged your travel insurance yet? Tailor your cover to your needs and save money by not paying for things you don’t need. <a href="https://elevate.agatravelinsurance.com.au/oversixty?utm_source=over60&amp;utm_medium=content&amp;utm_content=link1&amp;utm_campaign=travel-insurance"><span style="text-decoration: underline;">Click here</span></a> to read more about Over60 Travel Insurance.</strong></em></p> <p><em><strong>For more information about Over60 Travel Insurance, call 1800 622 966.</strong></em></p> <p><em>Hero image credit: SurangaSL / Shutterstock</em></p>

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