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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

The art of ‘getting lost’: how re-discovering your city can be an antidote to capitalism

<a href="https://theconversation.com/profiles/stephen-dobson-1093706">Stephen Dobson</a>, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a> Do you remember what it was like to discover the magic of a city for the first time? Do you remember the noises, smells, flashing lights and pulsating crowds? Or do you mostly remember cities through the screen of your phone? In 1967, French philosopher and filmmaker Guy Debord <a href="https://files.libcom.org/files/The%20Society%20of%20the%20Spectacle%20Annotated%20Edition.pdf">publicised the need</a> to move away from living our lives as bystanders continually tempted by the power of images. Today, we might see this in a young person flicking from one TikTok to the next – echoing the hold images have on us. But adults aren’t adverse to this window-shopping experience, either. Debord notes we have a tendency to observe rather than engage. And this is to our detriment. Continually topping-up our image consumption leaves no space for the unplanned – the reveries to break the pattern of an ordered life. Debord was a member of a group called the <a href="https://www.britannica.com/topic/Situationist-International">Situationist International</a>, dedicated to new ways we could reflect upon and experience our cities. Active for about 15 years, they believed we should experience our cities as an act of resistance, in direct opposition to the (profit-motivated) capitalistic structures that demand our attention and productivity every waking hour. More than 50 years since the group dissolved, the Situationists’ philosophy points us to a continued need to attune ourselves – through our thoughts and senses – to the world we live in. We might consider them as early eco-warriors. And through better understanding their philosophy, we can develop a new relationship with our cities today. <h2>Understanding the ‘situation’</h2> The Situationist International movement was <a href="https://www.jstor.org/stable/j.ctt183p61x">formed</a> in 1957 in Cosio di Arroscia, Italy, and became active in several European countries. It brought together radical artists inspired by spontaneity, experimentalism, intellectualism, protest and hedonism. Central figures included Danish artist <a href="https://museumjorn.dk/en/">Asger Jorn</a>, French novelist <a href="https://mitpress.mit.edu/author/michele-bernstein-10219/">Michèle Bernstein</a> and Italian musician and composer <a href="https://en.wikipedia.org/wiki/Walter_Olmo">Walter Olmo</a>. The Situationists were driven by a <a href="https://encyclopedia.pub/entry/34141">libertarian form of Marxism</a> that resisted mass consumerism. One of the group’s early terms was “unitary urbanism”, which sought to join avant-garde art with the critique of mass production and technology. They rejected “urbanism’s” conventional emphasis on function, and instead thought about art and the environment as inexorably interrelated. By rebelling against the invasiveness of consumption, the Situationists proposed a turn towards artistically-inspired individuality and creativity. <h2>Think on your own two feet</h2> According to the 1960 <a href="https://hts3.files.wordpress.com/2010/12/situationist-international-manifesto.pdf">Situationist Manifesto</a> we are all to be artists of our own “situations”, crafting independent identities as we stand on our own two feet. They believed this could be achieved, in part, through “<a href="https://www.tate.org.uk/art/art-terms/p/psychogeography#:%7E:text=Psychogeography%20describes%20the%20effect%20of,emotions%20and%20behaviour%20of%20individuals">psychogeography</a>”: the idea that geographical locations exert a unique psychological effect on us. For instance, when you walk down a street, the architecture around you may be deliberately designed to encourage a certain kind of experience. Crossing a vibrant city square on a sunny morning evokes joy and a feeling of connection with others. There’s also usually a public event taking place. The Situationists valued drift, or dérive in French. This alludes to unplanned movement through a landscape during journeys on foot. By drifting aimlessly, we unintentionally redefine the traditional rules imposed by private or public land owners and property developers. We make ourselves open to the new unexpected and, in doing so, are liberated from the shackles of everyday routine. In <a href="https://link.springer.com/book/10.1007/978-981-10-8100-2">our research</a>, my colleagues and I consider cities as places in which “getting lost” means exposing yourself to discovering the new and taken-for-granted. <h2>Forge your own path</h2> By understanding the Situationists – by looking away from our phones and allowing ourselves to get lost – we can rediscover our cities. We can see them for what they are beneath the blankets of posters, billboards and advertisements. How might we take back the image and make it work for us? The practise of geo-tagging images on social media, and sharing our location with others, could be considered close to the spirit of the Situationists. Although it’s often met with claims of <a href="https://www.nationalgeographic.com/travel/article/when-why-not-to-use-geotagging-overtourism-security">over-fuelling tourism</a> (especially regarding idyllic or otherwise protected sites), geo-tagging could <a href="https://www.melaninbasecamp.com/trip-reports/2019/5/1/five-reasons-why-you-should-keep-geotagging">inspire us</a> to actively seek out new places through visiting the source of an image. This could lead to culturally respectful engagement, and new-found respect for the rights of traditional custodians as we experience their lands in real life, rather than just through images on our phones. Then there are uniquely personal and anarchistic forms of resistance, wherein we can learn about the world around us by interweaving ourselves with our histories. In doing so we offer a new meaning to a historical message, and a new purpose. The Situationists called this process <a href="https://www.theartstory.org/movement/situationist-international/">détournement</a>, or hijacking. For instance, from my grandfather I inherited a biscuit tin of black and white photographs I believe were taken in the 1960s. They showed images of parks and wildlife, perhaps even of the same park, and cityscapes of London with people, streets and buildings. I have spent many hours wandering the London streets tracking down the exact places these images were snapped. I was juxtaposing past with present, and experiencing both continuity and change in the dialogues I had with my grandfather. In this way, I used images to augment (rather than replace) my lived experience of the material world. Urban art installations can also be examples of detournment as they make us re-think everyday conceptions. <a href="https://www.cityartsydney.com.au/artwork/forgotten-songs/">Forgotten Songs</a> by Michael Hill is one such example. A canopy of empty birdcages commemorates the songs of 50 different birds once heard in central Sydney, but which are now lost due to habitat removal as a result of urban development. There are also a number of groups, often with a strong environmental or civic rights focus, that partake in detournment. <a href="https://popularresistance.org/dancing-revolution-how-90s-protests-used-rave-culture-to-reclaim-the-streets/">Reclaim the Streets</a> is a movement with a long history in Australia. The group advocates for communities having ownership of and agency within public spaces. They may, for instance, “invade” a highway to throw a “<a href="https://pasttenseblog.files.wordpress.com/2022/02/road-rave.pdf">road rave</a>” as an act of reclamation. <figure><iframe src="https://www.youtube.com/embed/bUL0C_T-Sqk?wmode=transparent&start=999" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe></figure> As French avant-garde philosopher <a href="https://www.themarginalian.org/2014/07/24/the-poetics-of-reverie-gaston-bachelard/">Gaston Bachelard</a> might have put it, when we’re bombarded by images there is no space left to daydream. We lose the opportunity to explore and question the world capitalism serves us through images. Perhaps now is a good time to set down the phone and follow in the Situationists’ footsteps. <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/221606/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/stephen-dobson-1093706">Stephen Dobson</a>, Professor and Dean of Education and the Arts, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</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/the-art-of-getting-lost-how-re-discovering-your-city-can-be-an-antidote-to-capitalism-221606">original article</a>.

Travel Tips

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

5 ways to avoid weight gain and save money on food this Christmas

<a href="https://theconversation.com/profiles/nick-fuller-219993">Nick Fuller</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> As Christmas approaches, so does the challenge of healthy eating and maintaining weight-related goals. The season’s many social gatherings can easily tempt us to indulge in calorie-rich food and celebratory drinks. It’s why we typically <a href="https://www.nejm.org/doi/full/10.1056/NEJMc1602012">gain weight</a> over Christmas and then struggle to take it off for the <a href="https://www.sciencedirect.com/science/article/pii/S0031938414001528">remainder of the year</a>. Christmas 2023 is also exacerbating cost-of-living pressures, prompting some to rethink their food choices. Throughout the year, <a href="https://dvh1deh6tagwk.cloudfront.net/finder-au/wp-uploads/2023/03/Cost-of-Living-Report-2023.pdf">71% of Australians</a> – or 14.2 million people – <a href="https://retailworldmagazine.com.au/rising-cost-of-living-forces-aussies-to-change-diets/">adapted</a> their eating behaviour in response to rising costs. Fortunately, there are some simple, science-backed hacks for the festive season to help you celebrate with the food traditions you love without impacting your healthy eating habits, weight, or hip pocket. <h2>1. Fill up on healthy pre-party snacks before heading out</h2> If your festive season is filled with end-of-year parties likely to tempt you to fill up on finger foods and meals high in fat, salt, and sugar and low in nutritional value, have a healthy pre-event snack before you head out. <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5015032/#sec-a.g.atitle">Research</a> shows carefully selected snack foods can impact satiety (feelings of fullness after eating), potentially reducing the calories you eat later. High-protein, high-fibre snack foods have the strongest effect: because they take longer to digest, our hunger is satisfied for longer. So enjoy a handful of nuts, a tub of yoghurt, or a serving of hummus with veggie sticks before you head out to help keep your healthy eating plan on track. <h2>2. Skip the low-carb drinks and enjoy your favourites in moderation</h2> Despite the marketing promises, low-carb alcoholic drinks <a href="https://onlinelibrary.wiley.com/doi/10.1002/hpja.531">aren’t better for our health or waistlines</a>. Many low-carb options have a similar amount of carbohydrates as regular options but lull us into thinking they’re better, so we drink more. A <a href="https://www.vichealth.vic.gov.au/sites/default/files/K-013_Low-carb-beer_FactSheet_FINAL.pdf">survey</a> found 15% of low-carb beer drinkers drank more beer than they usually would because they believed it was healthier for them. A typical lager or ale will contain less than 1.5 grams of carbohydrate per 100 ml while the “lower-carb” variety can range anywhere from 0.5 grams to 2.0 grams. The calories in drinks come from the alcohol itself, not the carbohydrate content. Next time you go to order, think about the quantity of alcohol you’re drinking rather than the carbs. Make sure you sip lots of water in between drinks to stay hydrated, too. <h2>3. Don’t skimp on healthy food for Christmas Day – it’s actually cheaper</h2> There’s a perception that healthy eating is more expensive. But studies show this is a misconception. A <a href="https://southwesthealthcare.com.au/swh-study-finds-eating-a-healthier-diet-is-actually-cheaper-at-the-checkout/#:%7E:text=A%20recent%20study%20from%20the,does%20not%20meet%20the%20guidelines">recent analysis</a> in Victoria, for example, found following the Australian Dietary Guidelines cost the average family A$156 less a fortnight than the cost of the average diet, which incorporates packaged processed foods and alcohol. So when you’re planning your Christmas Day meal, give the pre-prepared, processed food a miss and swap in healthier ingredients: <ul> <li> swap the heavy, salted ham for leaner and lighter meats such as fresh seafood. Some seafood, such as prawns, is also tipped to be cheaper this year thanks to <a href="https://www.smh.com.au/goodfood/lobsters-up-prawns-stable-a-buying-guide-to-seafood-this-christmas-20231208-p5eq3m.html">favourable weather conditions</a> boosting local supplies </li> <li> for side dishes, opt for fresh salads incorporating seasonal ingredients such as mango, watermelon, peach, cucumber and tomatoes. This will save you money and ensure you’re eating foods when they’re freshest and most flavoursome </li> </ul> <ul> <li> if you’re roasting veggies, use healthier cooking oils like olive as opposed to vegetable oil, and use flavourful herbs instead of salt </li> <li> if there’s an out-of-season vegetable you want to include, look for frozen and canned substitutes. They’re cheaper, and <a href="https://www.sciencedirect.com/science/article/pii/S0889157517300418">just as nutritious</a> and tasty because the produce is usually frozen or canned at its best. Watch the sodium content of canned foods, though, and give them a quick rinse to remove any salty water </li> <li> give store-bought sauces and dressings a miss, making your own from scratch using fresh ingredients. </li> </ul> <h2>4. Plan your Christmas food shop with military precision</h2> Before heading to the supermarket to shop for your Christmas Day meal, create a detailed meal plan and shopping list, and don’t forget to check your pantry and fridge for things you already have. <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4586574/">Eating beforehand</a> and shopping with a plan in hand means you’ll only buy what you need and <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8206473/">avoid impulse purchasing</a>. When you’re shopping, price check everything. Comparing the cost per 100 grams is the most effective way to save money and get the best value. Check prices on products sold in different ways and places, too, such as nuts you scoop yourself versus prepacked options. <h2>5. Don’t skip breakfast on Christmas Day</h2> We’ve all been tempted to skip or have a small breakfast on Christmas morning to “save” the calories for later. But this plan will fail when you sit down at lunch hungry and find yourself eating far more calories than you’d “saved” for. <a href="https://pubmed.ncbi.nlm.nih.gov/32073608/">Research</a> shows a low-calorie or small breakfast leads to increased feelings of hunger, specifically appetite for sweets, across the course of the day. What you eat for breakfast on Christmas morning is just as important too – choosing the right foods will <a href="https://theconversation.com/im-trying-to-lose-weight-and-eat-healthily-why-do-i-feel-so-hungry-all-the-time-what-can-i-do-about-it-215808">help you manage your appetite</a> and avoid the temptation to overindulge later in the day. <a href="https://pubmed.ncbi.nlm.nih.gov/24703415/">Studies</a> show a breakfast containing protein-rich foods, such as eggs, will leave us feeling fuller for longer. So before you head out to the Christmas lunch, have a large, nutritionally balanced breakfast, such as eggs on wholegrain toast with avocado. At the Boden Group, Charles Perkins Centre, we are studying the science of obesity and running clinical trials for weight loss. You can <a href="https://redcap.sydney.edu.au/surveys/?s=RKTXPPPHKY">register here</a> to express your interest. <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/219114/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/nick-fuller-219993">Nick Fuller</a>, Charles Perkins Centre Research Program Leader, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/5-ways-to-avoid-weight-gain-and-save-money-on-food-this-christmas-219114">original article</a>.

Food & Wine

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

Can coffee help you avoid weight gain? Here’s what the science says

<a href="https://theconversation.com/profiles/lauren-ball-14718">Lauren Ball</a>, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> and <a href="https://theconversation.com/profiles/emily-burch-438717">Emily Burch</a>, <a href="https://theconversation.com/institutions/southern-cross-university-1160">Southern Cross University</a> Coffee is well recognised as having a positive impact on long-term health. Drinking the equivalent of three to four cups of instant coffee a day <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5696634/">reduces the risk</a> of many health conditions including heart disease, type 2 diabetes and some cancers. Most people gain <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4984841/">small amounts of weight</a> each year as they age. But can coffee help prevent this gradual weight gain? A group of researchers examined whether drinking an extra cup of coffee a day – or adding sugar, cream or a non-dairy alternative – resulted in more or less weight gain than those who didn’t adjust their intake. Their <a href="https://www.sciencedirect.com/science/article/abs/pii/S0002916523661702">research</a> (currently a pre-proof, which means it has been peer reviewed but is yet to undergo the final formatting and copyediting) found a modest link between coffee and gaining less weight than expected. People who drank an extra cup of coffee a day gained 0.12 kg less weight than expected over four years. Adding sugar resulted in a fraction more (0.09 kg) weight gain than expected over four years. <h2>How was the study conducted? What did it find?</h2> Researchers combined data from three large studies from the United States: two <a href="https://nurseshealthstudy.org">Nurses’ Health Studies</a> from 1986 to 2010, and from 1991 to 2015, and a <a href="https://www.hsph.harvard.edu/hpfs/about-the-study/">Health Professional Follow-up study</a> from 1991 to 2014. The Nurses’ Health Studies are two of the largest cohort studies, with more 230,000 participants, and investigates chronic disease risks for women. The Health Professional Follow-up study involves more than 50,000 male health professionals and investigates the relationship between diet and health outcomes. Participants in all three studies completed a baseline questionnaire, and another questionnaire every four years to assess their food and drink intake. Using the combined datasets, researchers analysed changes in coffee intake and changes in the participants’ self-reported weight at four-year intervals. The average four year weight-gains for the nurses’ studies were 1.2kg and 1.7kg, while participants in the health professionals study gained an average of 0.8kg. The researchers found that increasing unsweetened caffeinated or decaffeinated coffee intake by one cup a day was associated with a weight gain that was 0.12 kg less than expected over four years. Adding creamer (milk) or a non-dairy alternative did not significantly affect this weight change. However, adding sugar (one teaspoon) to coffee was associated with a weight gain that was 0.09 kg more than expected over four years. These associations were stronger in participants who were younger and had a higher body mass index at the beginning of the studies. <h2>What are the pros and cons of the study?</h2> This study is unique in two ways. It had a very large sample size and followed participants for many years. This adds confidence that the associations were real and can likely be applied to other populations. However, there are three reasons to be cautious. First, the findings represent an association, not causation. This means the study does not prove that coffee intake is the true reason for the weight change. Rather, it shows the two changes were observed together over time. Second, the findings around weight were very modest. The average four-year weight gain averted, based on one cup of coffee, was 0.12 kilograms, which is about 30 grams per year. This amount may not be a meaningful change for most people looking to manage weight. Finally, this analysis did not consider the variability in the amount of caffeine in coffee (which we <a href="https://pubmed.ncbi.nlm.nih.gov/17412475/">know can be high</a>), it just assumed a standard amount of caffeine per cup. <h2>How could coffee help with weight management?</h2> Caffeine is a natural stimulant which has been <a href="https://www.sciencedirect.com/science/article/pii/S0149763416300690">shown to</a> temporarily reduce appetite and increase alertness. This may help to feel less hungry for a short period, potentially leading to reduced energy intake. Some people consume coffee before exercise as a stimulant to <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7777221/">improve their workout performance</a> – if a workout is more effective, more energy may be expended. However, the benefit is largely thought to be short-lived, rather than long-term. Caffeine has also been <a href="https://www.sciencedirect.com/science/article/pii/S0271531720304449">shown to</a> speed up our metabolism, causing more energy to be burned while resting. However, this effect is relatively small and is not a suitable substitute for regular physical activity and a healthy diet. Finally, coffee has a <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4725310/">mild diuretic effect</a>, which can lead to temporary water weight loss. This is water loss, not fat loss, and the weight is quickly regained when you re-hydrate. <h2>Is it worth trying coffee for weight loss?</h2> Losing weight can be influenced by various factors, so don’t get too enthusiastic about the coffee-weight link highlighted in this new study, or increase your coffee intake to unreasonable levels. Most adults can safely consume around <a href="https://www.healthdirect.gov.au/caffeine">400mg</a> of caffeine a day. That’s the equivalent of two espressos or four cups of instant coffee or eight cups of tea. If you are pregnant or breastfeeding, it is important to talk to your doctor before increasing your caffeine intake, because caffeine can be passed through to your growing baby. If you need individualised weight guidance, talk to your GP or visit an <a href="https://member.dietitiansaustralia.org.au/Portal/Portal/Search-Directories/Find-a-Dietitian.aspx">accredited practising dietitian</a>. <img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/214954/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/lauren-ball-14718">Lauren Ball</a>, Professor of Community Health and Wellbeing, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> and <a href="https://theconversation.com/profiles/emily-burch-438717">Emily Burch</a>, Dietitian, Researcher & Lecturer, <a href="https://theconversation.com/institutions/southern-cross-university-1160">Southern Cross 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/can-coffee-help-you-avoid-weight-gain-heres-what-the-science-says-214954">original article</a>.

Body

Why did Hamas attack, and why now? What does it hope to gain?

<a href="https://theconversation.com/profiles/ian-parmeter-932739">Ian Parmeter</a>, <a href="https://theconversation.com/institutions/australian-national-university-877">Australian National University</a> In hindsight, the drivers of Hamas’s startlingly well-planned, land-sea-air attack on Israel on Saturday were in plain sight. The operation reflects a pattern of four wars and regular outbreaks of violence between Israel and Hamas militants in Gaza since 2005, when Israel withdrew its military posts and <a href="https://www.cfr.org/backgrounder/middle-east-gaza-withdrawal">forcibly removed</a> 9,000 Israeli settlers from the territory. Each time Hamas has launched rockets at Israel or engaged in similar provocations, it has drawn heavy retaliation from Israel in the form of major bombings on the Gaza Strip. Hamas, however, seems to regard this as a cost of doing business. An important factor motivating Hamas towards violence is that it has to watch its flanks. Other smaller, but increasingly extremist groups, are contesting its authority in Gaza, notably Palestinian Islamic Jihad. These groups have, at times, independently launched rocket attacks on Israel, which bring retribution on the whole territory. On top of this, the Israeli government formed by Prime Minister Benjamin Netanyahu last December is the most right wing in Israeli history. This government has made no secret of its desire to <a href="https://www.theguardian.com/world/2022/dec/28/benjamin-netanyahu-government-makes-west-bank-settlement-expansion-its-priority">annex</a> the West Bank and has permitted significant expansion of Jewish settlements in the territory, which are illegal under <a href="https://press.un.org/en/2016/sc12657.doc.htm">international law</a>. That has led to conflict between settlers and young West Bank Palestinians, who in the past year have formed a loose grouping known as the “<a href="https://www.economist.com/1843/2023/07/07/inside-the-lions-den-the-west-banks-gen-z-fighters">Lions’ Den</a>”. This grouping, comprising independent militants with apparently no central control, has scant regard for the Palestinian Authority, which governs the West Bank and is led by the octogenarian Mahmoud Abbas. The Palestinian Authority has little real administrative, security or moral authority in the territory. The “Lions’ Den” also vies with Gaza militant groups for influence among Palestinian youth – both in Gaza and the West Bank. Added to this, a minister in Netanyahu’s coalition, <a href="https://edition.cnn.com/2023/07/27/europe/ben-gvir-visit-israel-jerusalem-intl/index.html">Itamar Ben-Gvir</a>, has visited the Temple Mount, the site of the Al-Aqsa Mosque, one of the holiest shrines in Islam. This was considered a provocation by all Palestinians – both in the West Bank and Gaza. Further angering Palestinians, Israeli tourists also <a href="https://apnews.com/article/christians-jerusalem-old-city-spitting-524b3b8e92beb4c947b3b8b49e80cc45">travelled</a> to the site over the recent Sukkot holiday. A <a href="https://www.thenation.com/article/archive/september-28-2000-ariel-sharon-visits-the-temple-mount-sparking-the-second-intifada/">visit</a> to the Temple Mount by Ariel Sharon in 2000, then the leader of the opposition in Israel’s government, is generally regarded as the spark that ignited the Second Intifada from 2000-2005. Under an agreement predating Israel’s foundation, Jordan has <a href="https://www.middleeastmonitor.com/20231004-jordan-sends-memo-of-protest-to-israel-over-al-aqsa-settler-incursions/">custodianship</a> of the Al-Aqsa religious complex. Israel aimed to respect Jordan’s role when it signed the Israeli-Jordanian peace treaty in 1994. But Palestinians see the visits by Israeli ministers and non-Muslim tourists as disrespectful of the sanctity of the site and counter to this undertaking. Hamas has also claimed these visits have led to the desecration of the Al-Aqsa site, an argument obviously aimed at winning support from Muslims throughout the Arab and wider Islamic world. <h2>Why attack now?</h2> Significantly, Hamas has named its action “<a href="https://www.aljazeera.com/opinions/2023/10/8/there-is-nothing-surprising-about-hamass-operation">Operation Al-Aqsa Flood</a>”. This provides some clues to the primary reason for striking at this time, which emphasises what Hamas sees as Israeli acts of desecration of a holy Islamic site. However, an additional motivating factor was likely the increasing tendency of Arab states to make peace agreements with Israel, as evidenced by the <a href="https://www.state.gov/the-abraham-accords/">2020 Abraham Accords</a>, involving the United Arab Emirates, Bahrain, Sudan and Morocco. There has recently been strong speculation that Saudi Arabia is about to make its own agreement with Israel. This is of great concern to all Palestinians, not just those in the West Bank, as it further reduces pressure on Israel to reach a settlement with them. Netanyahu has made clear in his public statements that he prioritises peace with Arab states over eventual peace with the Palestinians. Hamas does not recognise Israel, but has said it would <a href="https://www.nbcnews.com/id/wbna24235665">observe a truce</a> if Israel withdrew to its 1967 borders. Israel would be unlikely to take Hamas’s word on this and withdraw as demanded. But there would be even less chance of that condition ever being realised if Saudi Arabia were to conclude its own deal with Israel. Another aspect of the timing is that it coincides almost precisely with the 50th anniversary of the start of the Yom Kippur or Ramadan War in October 1973, when Egypt and Syria attacked Israel together. The significance of a Palestinian entity being able to surprise Israel in the same way would not be lost on Hamas. So there were several objectives for Hamas to launch an attack at this time – and possibly a combination of them. Hamas is likely to gain much sympathy from the wider Arab world, but little in the way of material assistance. Hamas’s military operation will likely cause Saudi Arabia to hold back from normalising relations with Israel for now. That said, it’s unlikely any of the Arab states that have signed the Abraham Accords will withdraw from them now in protest over Israeli retaliation against Gaza. <h2>Where the conflict is headed?</h2> Where the conflict is headed is unclear. The Hezbollah militant group in Lebanon has already fired on positions in Israel’s north. But the extent to which it will become seriously involved will depend on its sponsor, Iran. Tehran has generally been seen to want to keep Hezbollah’s considerable rocket and missile strength in reserve in case of an Israeli strike on Iranian nuclear facilities. There is also the question of whether “Lions’ Den” militants in the West Bank will launch their own attacks, effectively creating a third front against Israel. And a possible fourth front could come from attacks on Jewish Israelis by Arab Israelis living in Israel. US President Joe Biden has <a href="https://www.bbc.com/news/world-us-canada-67049196">already promised</a> support for Israel, so there can be little doubt Israel will eventually get on top of these challenges. Netanyahu has warned of a long war, but it may prove reasonably short if Israel goes all out in its retaliation. The main constraint on Israeli action against Gaza will be the fact that an unknown number of Israeli citizens have been kidnapped by Hamas militants and taken to the strip. Indiscriminate Israeli bombing would certainly put those lives at risk. Israel will also be reluctant to put its defence forces in Gaza because of the risk of heavy casualties. However, it may send special forces if it gains intelligence on the whereabouts of its kidnapped citizens. A further risk for Israel in its retaliation is that too brutal an assault on Gaza could turn Western opinion against it. So far, however, Western governments are strongly supportive of Israel and unsympathetic towards Hamas. The overall lesson for Israel is that it has to develop a policy for managing the Palestinians living in the areas it controls. The current situation, in which hardline militants are contained in Gaza, while Israeli forces curtail the actions of Palestinians living in Israel and the West Bank, has suited the Israeli government for many years. It has been able to ignore Arab and international pressure to negotiate a two-state solution or to acquiesce in a <a href="https://theconversation.com/israels-new-government-doesnt-give-palestinians-much-hope-it-could-be-time-for-a-radical-approach-162077">one-state solution</a>. The real significance of Hamas’s operation is that such a non-policy can no longer continue.<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/215248/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ian-parmeter-932739">Ian Parmeter</a>, Research Scholar, Centre for Arab and Islamic Studies, <a href="https://theconversation.com/institutions/australian-national-university-877">Australian National University</a> Image credits: CNN / X (Twitter) This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/why-did-hamas-attack-and-why-now-what-does-it-hope-to-gain-215248">original article</a>.

Legal

Going up! The rising cost of living

You don’t need to watch the news to know the cost of living is rising – and for many products and services, well above the headline inflation rate. The evidence is there every time you walk down a supermarket aisle, fill your car with petrol and open an energy bill. It’s at the doctor’s surgery and the pharmacy, the butcher and the baker. It seems that inflation’s appetite for your retirement income is insatiable. Then there’s the other unknown that affects your retirement income – the number of years you need to fund. None of us know how long we have to budget our retirement savings for. When your income is fixed at a rate to make it last across many years of retirement, something has to give. And for many people, the first things to go are those they enjoy most. A restaurant meal, trips to the cinema, exercise classes at the local gym. For others, more critical things may fall by the wayside – heating in winter, nourishing food, critical repairs to the home or car. If you’re worried that your retirement income won’t stretch to cover the rising cost of living over an unknown number of years, there are ways to boost it. Despite a recent dip in home values, strong growth over many years has seen the value of retirees’ home equity skyrocket. And now, you can unlock the wealth accumulated in your home to <a href="https://householdcapital.com.au/" target="_blank" rel="noopener">improve your retirement funding</a>. This wealth in your home can be used to fund a monthly or fortnightly income stream, to top up pension payments received from your super fund or the government. It can also be drawn as a lump sum – or a mix of capital and income. Access to capital is important – you can use it to repair or renovate your home, buy a new car or enjoy a holiday. Unlocking the wealth in your home enables you to live the retirement lifestyle you deserve in the home you love…without watching every dollar you spend or foregoing the important things that make you happy. About Household Capital <a href="https://householdcapital.com.au/" target="_blank" rel="noopener">Household Capital</a> is a specialist retirement funding provider that provides responsible long-term access to home equity to meet the needs of an ageing population. We work with you to improve your retirement lifestyle: by enhancing retirement income, providing access to capital and improving retirement housing. 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. In providing access to your <a href="https://householdcapital.com.au/household-loan/" target="_blank" rel="noopener">home equity</a>, we offer you the choice and flexibility to use the wealth in your home in a variety of ways that suit you, today and in the future. These might include: <ul> <li>Providing <a href="https://householdcapital.com.au/testimonials/bill/" target="_blank" rel="noopener">a regular income stream</a> through a regular drawdown facility, so the rising cost of living doesn’t mean going without</li> <li>Paying off <a href="https://householdcapital.com.au/testimonials/dennis/" target="_blank" rel="noopener">an existing mortgage</a> or other debt to free up your cashflow</li> <li>Setting up <a href="https://householdcapital.com.au/testimonials/john/" target="_blank" rel="noopener">a contingency fund</a> for those unexpected expenses, which can be drawn on as you need</li> <li>Covering the costs of in-home or residential aged care.</li> </ul> Our customers – Lynne, Raylene and Suzanne <iframe title="YouTube video player" src="https://www.youtube.com/embed/8Czho7sfH8I?si=Ih6vH8COkfvGR3xK" width="770" height="433" frameborder="0" data-mce-fragment="1"></iframe> Lynne, Raylene and Suzanne have been friends for more than 30 years and although they no longer live in neighbouring suburbs, they get together at least weekly to laugh, to talk and to sew. The three of them sew quilts to donate to aged care facilities, where they are gratefully received by the residents. Lynne was the first to approach Household Capital. She needed a reliable car – but as a widow in her 70s, banks would not lend to her. Instead, Lynne unlocked her home wealth to purchase her new car and to set up a contingency fund to draw on in the event of unexpected expenses. She told her friends Raylene and Suzanne about Household Capital, as both were struggling to make ends meet. Raylene and Suzanne have now used their home wealth to each establish a regular income stream and a contingency fund, giving them confidence in their future and the flexibility to meet their financial needs. Despite the rising cost of living, you can take control of your retirement and Live Well At HomeTM – and it’s Household Capital’s mission to facilitate that. After all, home can be both the best place to live and the right way to fund your retirement. To find out more about the retirement wealth source that most Australian retirees aren’t using, and see how much wealth you can unlock visit <a href="https://householdcapital.com.au/" target="_blank" rel="noopener">householdcapital.com.au</a> or call us 1300 734 720 to have an obligation free chat with one of our Australian based retirement funding specialists. 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 Life

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

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

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

Real Estate

Ping, your pizza is on its way. Ping, please rate the driver. Yes, constant notifications really do tax your brain

A ping from the pizza company. A couple of pings from your socials. Ping, ping, ping from your family WhatsApp group trying to organise a weekend barbecue. With all those smartphone notifications, it’s no wonder you lose focus on what you’re trying to do do. Your phone doesn’t even need to ping to distract you. There’s <a href="https://psycnet.apa.org/record/2015-28923-001">pretty good</a><a href="https://www.journals.uchicago.edu/doi/full/10.1086/691462">evidence</a> the mere presence of your phone, silent or not, is enough to divert your attention. So what’s going on? More importantly, how can you reclaim your focus, without missing the important stuff? <h2>Is it really such a big deal?</h2> When you look at the big picture, those pings can really add up. Although estimates vary, the average person checks their phone <a href="https://irep.ntu.ac.uk/id/eprint/30085/1/PubSub7601_Andrews.PDF">around 85 times</a><a href="https://www.theage.com.au/national/victoria/trapped-in-the-net-are-we-all-addicted-to-our-smartphones-20190531-p51t44.html">a day</a>, roughly once every 15 minutes. In other words, every 15 minutes or so, your attention is likely to wander from what you’re doing. The trouble is, it can take <a href="https://lifehacker.com/how-long-it-takes-to-get-back-on-track-after-a-distract-1720708353">several minutes</a> to regain your concentration fully after being <a href="https://www.ics.uci.edu/%7Egmark/chi08-mark.pdf">interrupted</a> by your phone. If you’re just watching TV, distractions (and refocusing) are no big deal. But if you’re driving a car, trying to study, at work, or spending time with your loved ones, it could lead to some fairly substantial problems. <h2>Two types of interference</h2> The pings from your phone are “exogenous interruptions”. In other words, something external, around you, has caused the interruption. We can <a href="https://link.springer.com/chapter/10.1007/978-3-319-46276-9_21">become conditioned</a> to feeling excited when we hear our phones ping. This is the <a href="https://onlinelibrary.wiley.com/doi/full/10.1046/j.1360-0443.2002.00015.x">same pleasurable feeling</a> people who gamble can quickly become conditioned to at the sight or sound of a poker machine. What if your phone is on silent? Doesn’t that solve the ping problem? Well, no. That’s another type of interruption, an internal (or endogenous) interruption. Think of every time you were working on a task but your attention drifted to your phone. You may have fought the urge to pick it up and see what was happening online, but you probably checked anyway. In this situation, we can become so strongly conditioned to expect a reward each time we look at our phone we don’t need to wait for a ping to trigger the effect. These impulses are powerful. Just reading this article about checking your phone may make you feel like … checking your phone. <h2>Give your brain a break</h2> What do all these interruptions mean for cognition and wellbeing? There’s increasing evidence push notifications are associated with <a href="https://www.sciencedirect.com/science/article/pii/S2352853217300159">decreased productivity</a>, <a href="https://www.sciencedirect.com/science/article/pii/S2451958820300051">poorer concentration</a> and <a href="https://www.sciencedirect.com/science/article/abs/pii/S0927537116300136">increased distraction</a> at work and school. But is there any evidence our brain is working harder to manage the frequent switches in attention? One study of people’s brain waves <a href="https://www.hindawi.com/journals/cin/2016/5718580/">found</a> those who describe themselves as heavy smartphone users were more sensitive to push notifications than ones who said they were light users. After hearing a push notification, heavy users were significantly worse at recovering their concentration on a task than lighter users. Although push notification interrupted concentration for both groups, the heavy users took much longer to regain focus. Frequent interruptions from your phone can also leave you <a href="https://www.sciencedirect.com/science/article/abs/pii/S0747563219302596">feeling stressed</a> by a need to respond. Frequent smartphone interruptions are also associated with <a href="https://www.sciencedirect.com/science/article/pii/S0360131519301319">increased FOMO</a> (fear of missing out). If you get distracted by your phone after responding to a notification, any subsequent <a href="https://journals.sagepub.com/doi/pdf/10.1177/2050157921993896">procrastination</a> in returning to a task can also leave you feeling guilty or frustrated. There’s <a href="https://www.sciencedirect.com/science/article/pii/S0747563219300883">certainly evidence</a> suggesting the longer you spend using your phone in unproductive ways, the lower you tend to rate your wellbeing. <h2>How can I stop?</h2> We know switching your phone to silent isn’t going to magically fix the problem, especially if you’re already a frequent checker. What’s needed is behaviour change, and that’s hard. It can take several attempts to see lasting change. If you have ever tried to quit smoking, lose weight, or start an exercise program you’ll know what I mean. Start by turning off all non-essential notifications. Then here are some things to try if you want to reduce the number of times you check your phone: <ul> <li> charge your phone overnight in a different room to your bedroom. Notifications can prevent you falling asleep and can repeatedly rouse you from essential sleep throughout the night </li> <li> interrupt the urge to check and actively decide if it’s going to benefit you, in that moment. For example, as you turn to reach for your phone, stop and ask yourself if this action serves a purpose other than distraction </li> <li> try the <a href="https://www.themuse.com/advice/take-it-from-someone-who-hates-productivity-hacksthe-pomodoro-technique-actually-works#:%7E:text=The%20Pomodoro%20Technique%20is%20a,are%20referred%20to%20as%20pomodoros">Pomodoro method</a> to stay focused on a task. This involves breaking your concentration time up into manageable chunks (for example, 25 minutes) then rewarding yourself with a short break (for instance, to check your phone) between chunks. Gradually increase the length of time between rewards. Gradually re-learning to sustain your attention on any task can take a while if you’re a high-volume checker. </li> </ul> Image credits: Getty Images This article originally appeared on <a href="https://theconversation.com/ping-your-pizza-is-on-its-way-ping-please-rate-the-driver-yes-constant-notifications-really-do-tax-your-brain-193952" target="_blank" rel="noopener">The Conversation</a>.

Technology

Chokepoint Capitalism: why we’ll all lose unless we stop Amazon, Spotify and other platforms squeezing cash from creators

In 2020, the independent authors and small publishers whose audiobooks reach their readers via Audible’s <a href="https://www.acx.com/">ACX platform</a> smelled a rat. Audiobooks were booming, but sales of their own books – produced at great expense and well-reviewed – were plummeting. Some of their royalty statements reported negative sales, as readers returned more books than they bought. This was hard to make sense of, because Audible only reported net sales, refusing to reveal the sales and refunds that made them up. Perth-based writer <a href="https://www.susanmaywriter.net/single-post/audiblegate-the-incredible-story-of-missing-sales">Susan May</a> wondered whether those returns might be the reason for her dwindling net sales. She pressed Audible to tell her how many of her sales were being negated by returns, but the company stonewalled. Then, in October 2020, a glitch caused three weeks of returns data to be reported in a single day, and authors discovered that hundreds (and even thousands) of their sales had been wiped out by returns. Suddenly, the scam came into focus: the Amazon-owned Audible had been offering an extraordinarily generous returns policy, encouraging subscribers to return books they’d had on their devices for months, even if they had listened to them the whole way through, even if they had loved them – no questions asked. Encouraged by the policy, some subscribers had been treating the service like a library – returning books for fresh credits they could swap for new ones. Few would have realised that Audible clawed back the royalties from the book’s authors every time a book was returned. Good for Amazon, bad for authors It was good for Amazon – it helped Audible gain and hold onto subscribers – but bad for the authors and the performers who created the audiobooks, who barely got paid. Understanding Amazon’s motivation helps us understand a phenomenon we call <a href="https://scribepublications.com.au/books-authors/books/chokepoint-capitalism-9781761380075">chokepoint capitalism</a>, a modern plague on creative industries and many other industries too. Orthodox economics tells us not to worry about corporations dominating markets because that will attract competitors, who will put things back in balance. But many of today’s big corporations and billionaire investors have perfected ways to make those supposedly-temporary advantages permanent. Warren Buffett salivates over businesses with “<a href="https://markets.businessinsider.com/news/stocks/warren-buffett-moat-etf-simple-explanation-for-how-he-invests-and-its-easy-to-replicate-2017-10-1005613232">wide, sustainable moats</a>”. Peter Thiel scoffs that “<a href="https://www.wsj.com/articles/peter-thiel-competition-is-for-losers-1410535536">competition is for losers</a>”. Business schools teach students ways to lock in customers and suppliers and eliminate competition, so they can shake down the people who make what they supply and buy what they sell. Locking in customers and creators Amazon is the poster child for chokepoint capitalism. It boasts of its “<a href="https://feedvisor.com/resources/amazon-trends/amazon-flywheel-explained/">flywheel</a>” – a self-described “<a href="https://fourweekmba.com/amazon-flywheel/">virtuous cycle</a>” where its lower cost leads to lower prices and a better customer experience, which leads to more traffic, which leads to more sellers, and a better selection – which further propels the flywheel. <hr /> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?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/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=379&fit=crop&dpr=1 600w, https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=379&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=379&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=477&fit=crop&dpr=1 754w, https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=477&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/494907/original/file-20221111-21-lnbmh1.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=477&fit=crop&dpr=3 2262w" alt="" /></a><figcaption></figcaption></figure> <hr /> But the way the cycle works isn’t virtuous – it’s vicious and anti-competitive. Amazon openly admits to doing everything it can to lock in its customers. That’s why Audible encourages book returns: its generous offer only applies to ongoing subscribers. Audible wants the money from monthly subscribers and wants the fact that they are subscribed to prevent them from shopping elsewhere. Paying the people who actually made the product it sells a fair share of earnings isn’t Amazon’s priority. Because Amazon founder Jeff Bezos’ famous maxim is “<a href="https://www.marketplacepulse.com/articles/the-cost-of-your-margin-is-my-opportunity">your margin is my opportunity</a>”, the executive who figured out how to make authors foot the bill for retaining subscribers probably got a bonus. Another way Audible locks customers in is by ensuring the books it sells are protected by <a href="https://www.fortinet.com/resources/cyberglossary/digital-rights-management-drm">digital rights management</a> (DRM) which means they are encrypted, and can only be read by software with the decryption key. Amazon claims DRM stops listeners from stealing from creators by pirating their books. But tools to strip away those locks are freely available online, and it’s easy for readers who can’t or won’t pay for books to find illegal versions. While DRM doesn’t prevent infringement, it does prevent competition. Startups that want to challenge Audible’s dominance – including those that would pay fairly – have to persuade potential customers to give up their Audible titles or to inconveniently maintain separate libraries. In this way, laws that were intended to protect against infringement of copyright have become tools to protect against infringement of corporate dominance. Once customers are locked in, suppliers (authors and publishers) are locked in too. It’s incredibly difficult to reach audiobook buyers unless you’re on Audible. When the suppliers are locked in, they can be shaken down for an ever-greater share of what the buyers hand over. <hr /> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?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/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=377&fit=crop&dpr=1 600w, https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=377&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=377&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=474&fit=crop&dpr=1 754w, https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=474&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/494908/original/file-20221111-16-pua9cp.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=474&fit=crop&dpr=3 2262w" alt="" /></a><figcaption></figcaption></figure> <hr /> How a few big buyers can control whole markets The problem isn’t with middlemen as such: book shops, record labels, book and music publishers, agents and myriad others provide valuable services that help keep creative wheels turning. The problem arises when these middlemen grow powerful enough to bend markets into hourglass shapes, with audiences at one end, masses of creators at the other, and themselves operating as a chokepoint in the middle. Since everyone has to go through them, they’re able to control the terms on which creative goods and services are exchanged - and extract more than their fair share of value. The corporations who create these chokepoints are trying to “monopsonise” their markets. “Monopsony” isn’t a pretty word, but it’s one we are going to have to get familiar with to understand why so many of us are feeling squeezed. <a href="https://www.wallstreetmojo.com/monopoly">Monopoly</a> (or near-monopoly) is where there is only one big seller, leaving buyers with few other places to turn. <a href="https://www.wallstreetmojo.com/monopsony/">Monopsony</a> is where there is only one big buyer, leaving sellers with few other places to turn. In our book, we quote William Deresiewicz, a former professor of English at Yale University, who points out in his book <a href="https://www.chicagoreview.org/william-deresiewicz-the-death-of-the-artist/">The Death of the Artist</a> that “if you can only sell your product to a single entity, it’s not your customer; it’s your boss”. Increasingly, it is how the creative industries are structured. There’s Audible for audiobooks, Amazon for physical and digital versions, YouTube for video, Google and Facebook for online news advertising, the <a href="https://www.liveabout.com/big-three-record-labels-2460743">Big Three record labels</a> (who own the big three music publishers) for recorded music, <a href="https://pluralistic.net/2022/09/12/streaming-doesnt-pay/">Spotify</a> for streaming, Live Nation for live music and ticketing – and that’s just the start. But as corporate concentration increases across the board, monopsony is becoming a problem for the rest of us. For a glimpse into what happens to labour markets when buyers become too powerful, just think about how monopsonistic supermarkets bully food manufacturers and farmers. <figure class="align-right "><img src="https://images.theconversation.com/files/494912/original/file-20221112-11-u879gw.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/494912/original/file-20221112-11-u879gw.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=966&fit=crop&dpr=1 600w, https://images.theconversation.com/files/494912/original/file-20221112-11-u879gw.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=966&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/494912/original/file-20221112-11-u879gw.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=966&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/494912/original/file-20221112-11-u879gw.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1214&fit=crop&dpr=1 754w, https://images.theconversation.com/files/494912/original/file-20221112-11-u879gw.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1214&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/494912/original/file-20221112-11-u879gw.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1214&fit=crop&dpr=3 2262w" alt="" /><figcaption><a class="source" href="https://scribepublications.com.au/books-authors/books/chokepoint-capitalism-9781761380075">Scribe Publications</a></figcaption></figure> A fairer deal for consumers and creators The good news is that we don’t have to put up with it. <a href="https://scribepublications.com.au/books-authors/books/chokepoint-capitalism-9781761380075">Chokepoint Capitalism</a> isn’t one of those “Chapter 11 books” – ten chapters about how terrible everything is, plus a conclusion with some vague suggestions about what can be done. The whole second half is devoted to detailed proposals for widening these chokepoints out – such as transparency rights, among others. Audible’s sly trick only finally came to light because of the glitch that let authors see the scope of returns. That glitch enabled writers, led by Susan May, to organise a campaign that eventually forced Audible to reform some of its more egregious practices. But we need more light in dark corners. And we need reforms to contract law to level the playing field in negotiations, interoperability rights to prevent lock-in to platforms, copyrights being better secured to creators rather than publishers, and minimum wages for creative work. These and the other things we suggest would do much to empower artists and get them paid. And they would provide inspiration for the increasing rest of us who are supplying our goods or our labour to increasingly powerful corporations that can’t seem to keep their hands out of our pockets. <hr /> Chokepoint Capitalism: how big tech and big content captured creative labour markets, and how we’ll win them back is published on <a href="https://scribepublications.com.au/books-authors/books/chokepoint-capitalism-9781761380075">Tuesday November 15</a> by Scribe.<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/194069/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> Writen by Rebecca Giblin and Cory Doctorow. Republished with permission from <a href="https://theconversation.com/chokepoint-capitalism-why-well-all-lose-unless-we-stop-amazon-spotify-and-other-platforms-squeezing-cash-from-creators-194069" target="_blank" rel="noopener">The Conversation</a>. Image: Getty Images

Money & Banking

Five expensive (but avoidable) financial mistakes

The road to financial freedom can have many potholes but knowing how to avoid them is simple if you know what to do. Here’s some tips on what to look out for. When it comes to your retirement, planning is crucial. The first step, however, is understanding how to make the most of your financial position by avoiding the mistakes many people make when it comes to planning for the future. Here’s a few tips from wealth management firm BT Financial Group on how to avoid the speed bumps you may find along your financial journey. Too little too late The government has deliberately set up the superannuation system to favour those who start early and stay on track. Those who leave it to the last minute often do so at their own peril. Start as soon as possible and map out your road to financial freedom. Pay unnecessary taxes There are many simple, legal ways to make sure you’re not paying more tax than you need. Check with your financial planner or accountant if you’re making the most of the tax incentives offered by the government. Fall for investment fads This probably poses the greatest single danger to your prosperity. Technology stocks in the late 1990s and speculative miners in the late 2000s were very tempting when they were rising fast. Your best weapon against this temptation is to develop a disciplined investment plan and stick with it. It won’t happen to me Wealth management is just as much about protecting your assets as it is about building wealth. Make sure you have a “Plan B” to pay off your house and look after your family if you were to die or be permanently unable to work. Your ability to earn money is actually your most valuable asset, so it’s vital to protect that asset with income protection insurance. Fail to plan As the old adage goes, “if you fail to plan, you plan to fail”. If you can articulate your goals and visualise what achieving those goals looks like, you are well on your way to achieving them. Write down your three most important goals and keep them in a safe place to review at least once a year.

Money & Banking

Climate change: the fairest way to tax carbon is to make air travel more expensive

Despite the fact that poorer people generally <a href="https://doi.org/10.1017/sus.2020.12">have lower emissions</a>, taxes on the carbon dioxide (CO₂) our activities emit tend to affect people on low incomes <a href="https://iopscience.iop.org/article/10.1088/1748-9326/ac2cb1">more</a> than richer people. Having less money means you can ill afford a switch to an untaxed alternative, like an electric car, or pay for carbon-saving measures like home insulation. You are also more likely to struggle to use less of an essential good like petrol or gas for heating, even if the price goes up. Carbon taxes on energy that people use in their homes – for heating, cooking or watching TV – charge consumers for the emissions per kilowatt-hour (kWh) of electricity, gas or oil used. Economists would say that these kinds of carbon taxes are <a href="https://doi.org/10.1088/1748-9326/ac2cb1">regressive</a>, because using energy to heat and power your home is a necessity and poorer people will use a much higher share of their income to pay for these things – and the taxes – than richer people. While total emissions have been <a href="https://www.nature.com/articles/s41558-019-0419-7">falling</a> in several rich countries over the last few years, emissions from cars and other means of transport are <a href="https://doi.org/10.1088/1748-9326/abee4e">growing</a>. The rise in air travel emissions has been especially rapid: a roughly <a href="https://doi.org/10.1016/j.atmosenv.2020.117834">sevenfold increase</a> between 1960 and 2018 globally. What’s more, the fuels for heating and powering homes or driving cars are taxed, but the fuel airlines use is exempt due to <a href="https://theconversation.com/how-a-1940s-treaty-set-airlines-on-a-path-to-high-emissions-and-low-regulation-148818">an international agreement</a> from 1944. And although Europeans generally <a href="https://www.sciencedirect.com/science/article/pii/S095937801831238X?via%3Dihub">disapprove</a> of carbon taxes, <a href="https://www.tandfonline.com/doi/full/10.1080/09669582.2022.2115050">our study</a> has revealed one type which could prove popular. In the first analysis of its kind to consider the effect on different income bands, we found that carbon taxes on air travel – what we describe as luxury emissions – nearly always affect the rich more. <h2>Tax burdens from air travel</h2> Our research examined how the burden from four different taxes on air travel would fall across income groups in the UK. It shows that all of these taxes are progressive: they burden richer people more than poorer people as a proportion of income. This is because people on higher incomes are <a href="https://doi.org/10.1016/j.tbs.2021.05.008">much more likely to fly</a>, and fly more often. Air travel taxes that apply to passengers could be levied on the emissions of each passenger per flight. People could also be taxed according to the distance they travel, or their seat class. An aeroplane’s economy class occupies the least space per person, while business- and first-class passengers take up more room and so are responsible for more emissions than the average passenger. A person could also be taxed for the number of flights they take. A <a href="https://afreeride.org/">frequent flyer levy</a> would exempt the first return flight a person takes in a year, but would tax subsequent flights at an increasing rate. We found that taxes that take both flight emissions and the number of flights per passenger into account distribute the tax burden fairest. The reason for this is that frequent air travel (all flights after the first return flight) is even more unequally distributed in society: the top 10% of emitters are responsible for 60.8% of flight emissions but for 83.7% of emissions from frequent flights. Who else except the wealthy is likely to be affected by taxes on air travel? We found that, in the UK, university graduates, employed people, young and middle-aged adults, residents of London, as well as first- and second-generation migrants are also more likely to fly than their counterparts, regardless of income. Our results showed that recent migrants with friends and family abroad are relatively likely to fly often, even when on a low income. So allowances or extra support for recent migrants could make the design of such taxes fairer. Overall, taxes on air travel are far more socially just than taxes on necessities such as home energy use and could curb luxury emissions in a way that nurtures broad support for more sweeping decarbonisation measures such as those designed to limit car travel, like <a href="https://www.nature.com/articles/s41560-022-01057-y">expanding bus and cycling lanes</a>. So why do politicians and others claim, as former UK treasury minister Robert Jenrick did in 2019, that air travel taxes <a href="https://www.thesun.co.uk/news/8128492/labour-holiday-tax-family-break/">disproportionately hit the poor</a>? It’s possible that they underestimate how little people in low-income groups actually fly, perhaps due to their typically middle- and upper-class backgrounds. A less charitable interpretation is that they have ulterior motives for opposing such taxes. Social scientists claim that exaggerating or misrepresenting the social justice consequences of environmental policy is one of the most common <a href="https://theconversation.com/climate-denial-hasnt-gone-away-heres-how-to-spot-arguments-for-delaying-climate-action-141991">arguments </a>used to stall vital action on climate change. Image credits: Getty Images This article originally appeared on <a href="https://theconversation.com/climate-change-the-fairest-way-to-tax-carbon-is-to-make-air-travel-more-expensive-191632" target="_blank" rel="noopener">The Conversation</a>.

Travel Tips

Last chance for Aussies to claim the $1500 tax break

This might be your last chance to get $1500 back on your tax. Over 10 million Aussies will have to act quickly if they haven’t already done so. The $1500 tax offset will be available for the last time for low to middle income earners - this includes those who earn between $48,000 to $90,000. If you fall into this category simply submit your tax return before October 31 to receive the refund. “You only receive the low and middle income tax offset when you lodge this year’s return,” H&R Block’s Mark Chapman said. “Quite an incentive to get your tax return done and lodged!” The offset scheme, which has been extended twice during the pandemic, has been increased by $420 to the maximum of $1500 for those in the magic $48,000 to $90,000 bracket for the 2021-22 financial year. “For those who earn less than $37,000, the offset is $675,” Chapman said. “If you earn between $37,000 and $48,000 the offset will increase up to a maximum of $1500.” But for those who earn over $90,000, the offset is gradually phased out. If your earnings go over $126,000 you won’t get any offset on your tax at all. However, the Australian Taxation Office has emphasised that the offset - also known as the LMITO - is not a cash refund. “The offset can only reduce the amount of tax you need to pay to $0, and if there is any offset remaining you will not receive that amount as a cash refund.” If you want to read more about it, head to the<a href="https://www.ato.gov.au/Individuals/Your-tax-return/Before-you-prepare-your-tax-return/What-s-new-for-individuals/" target="_blank" rel="noopener"> ATO website</a>. Image: Getty

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Ping, your pizza is on its way. Ping, please rate the driver. Yes, constant notifications really do tax your brain

Chokepoint Capitalism: why we’ll all lose unless we stop Amazon, Spotify and other platforms squeezing cash from creators

Five expensive (but avoidable) financial mistakes

Climate change: the fairest way to tax carbon is to make air travel more expensive

Last chance for Aussies to claim the $1500 tax break

Our Partners

News

Shop

Catalogues

Newspaper

Contests

Entertainment

Travel

Health

Lifestyle

Finance

Property

Compare

Games

Information

Keep up to date

Search

What to expect from the federal budget

Survey unveils Aussies thoughts on tourism tax

The art of ‘getting lost’: how re-discovering your city can be an antidote to capitalism

Tax boost announced for 1.2 million people

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

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

5 ways to avoid weight gain and save money on food this Christmas

Unlocking the wealth in your home for a better retirement

Can coffee help you avoid weight gain? Here’s what the science says

Why did Hamas attack, and why now? What does it hope to gain?

Going up! The rising cost of living

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

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

ATO cracks down on landlords submitting dodgy tax returns

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

Ping, your pizza is on its way. Ping, please rate the driver. Yes, constant notifications really do tax your brain

Chokepoint Capitalism: why we’ll all lose unless we stop Amazon, Spotify and other platforms squeezing cash from creators

Five expensive (but avoidable) financial mistakes

Climate change: the fairest way to tax carbon is to make air travel more expensive

Last chance for Aussies to claim the $1500 tax break

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