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Our housing system is broken and the poorest Australians are being hardest hit

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a> Just when we think the price of rentals could not get any worse, this week’s <a href="https://www.anglicare.asn.au/publications/2023-rental-affordability-snapshot/">Rental Affordability Snapshot</a> by Anglicare has revealed low-income Australians are facing a housing crisis like never before. In fact, if you rely on the <a href="https://www.servicesaustralia.gov.au/youth-allowance">Youth Allowance</a>, there is not a single rental property across Australia you can afford this week. <h2>How did rental affordability get this bad?</h2> Several post-COVID factors have been blamed, including our preference for <a href="https://www.rba.gov.au/publications/bulletin/2023/jun/new-insights-into-the-rental-market.html">more space, the return of international migrants</a>, and <a href="https://www.corelogic.com.au/news-research/news/2023/could-the-peak-in-interest-rates-signal-an-end-to-rising-rents">rising interest rates</a>. However, the rental affordability crisis pre-dates COVID. Affordability has been steadily declining for decades, as successive governments have failed to make shelter more affordable for low-to-moderate income Australians. <h2>The market is getting squeezed at both ends</h2> At the lower end of the rental sector, the growth in the supply of social housing persistently lags behind demand, trending at under <a href="https://povertyandinequality.acoss.org.au/data/annual-growth-rates-social-housing-stock-and-population-2011-2020/">one-third</a> the rate of population growth. <hr /> <iframe id="OA0cS" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/OA0cS/" width="100%" height="400px" frameborder="0"></iframe> <hr /> This has forced growing numbers of low-income Australians to seek shelter in the private rental sector, where they face intense competition from higher-income renters. At the upper end, more and more aspiring home buyers are getting <a href="https://www.tandfonline.com/doi/full/10.1080/03085147.2021.2003086">locked out</a> of home ownership. A recent <a href="https://www.ahuri.edu.au/sites/default/files/documents/2024-02/AHURI-Final-Report-416-Affordable-private-rental-supply-and-demand-short-term-disruption.pdf">study</a> found more households with higher incomes are now renting. Households earning <a href="https://www.ahuri.edu.au/sites/default/files/documents/2024-02/AHURI-Final-Report-416-Affordable-private-rental-supply-and-demand-short-term-disruption.pdf">$140,000</a> a year or more (in 2021 dollars) accounted for just 8% of private renters in 1996. By 2021, this tripled to 24%. No doubt, this crowds out lower-income households who are now facing a shortage of affordable homes to rent. <h2>Why current policies are not working</h2> Worsening affordability in the private rental sector highlights a housing system that is broken. Current policies just aren’t working. While current policies focus on supply, more work is needed including fixing <a href="https://theconversation.com/governments-are-pouring-money-into-housing-but-materials-land-and-labour-are-still-in-short-supply-205471">labour shortages</a> and providing greater <a href="https://theconversation.com/people-want-and-need-more-housing-choice-its-about-time-governments-stood-up-to-deliver-it-122390">stock diversity</a>. The planning system plays a critical role and <a href="https://theconversation.com/confusing-and-not-delivering-enough-developers-and-councils-want-new-affordable-housing-rules-139762">zoning rules</a> can be reformed to support the supply of more affordable options. However, the housing affordability challenge is not solely a supply problem. There is also a need to respond to the <a href="https://theconversation.com/home-prices-are-climbing-alright-but-not-for-the-reason-you-might-think-158776">super-charged demand</a> in the property market. An overheated market will undoubtedly place intense pressure on the rental sector because aspiring first home buyers are forced to rent for longer, as house prices soar at a rate unmatched by their wages. Yet, governments continue to resist calls for winding back the <a href="https://www.abc.net.au/news/2024-02-15/ken-henry-australias-tax-system-in-worse-position-after-15-years/103465044">generous tax concessions</a> enjoyed by multi-property owners. The main help available to low-income private renters - the Commonwealth Rent Assistance scheme - is <a href="https://theconversation.com/1-billion-per-year-or-less-could-halve-rental-housing-stress-146397">poorly targeted</a> with nearly one in five low-income renters who are in rental stress deemed ineligible, while another one in four receive it despite not being in rental stress. <h2>Can affordable housing occur naturally?</h2> Some commentators support the theory of <a href="https://www.ahuri.edu.au/sites/default/files/documents/2022-09/Executive-Summary-FR387-Filtering-as-a-source-of-low-income-housing-in-Australia-conceptualisation-and-testing.pdf">filtering</a> - a market-based process by which the supply of new dwellings in more expensive segments creates additional supply of dwellings for low-income households as high-income earners vacate their former dwellings. Proponents of filtering argue building more housing anywhere - even in wealthier ends of the property market - will eventually improve affordability across the board because lower priced housing will trickle down to the poorest households. However, the persistent affordability crisis low-income households face and the rise in homelessness are crucial signs filtering <a href="https://cloud.3dissue.com/122325/122578/143598/WhyNewSupplyisnotExpandingHousingOptionsfortheHomeless/html5/index.html?page=1&noflash">does not work well</a> and <a href="https://www.ahuri.edu.au/sites/default/files/documents/2022-09/AHURI-Final-Report-387-Filtering-as-a-source-of-low-income-housing-in-Australia-conceptualisation-and-testing.pdf">cannot be relied upon</a> to produce lower cost housing. <h2>Location, location, location</h2> Location does matter, if we expect building new housing to work for low-income individuals. What is needed is a steady increase of affordable, quality housing in areas offering low-income renters the same access to jobs and amenities as higher-income households. The <a href="https://treasury.gov.au/housing-policy/accord#:%7E:text=The%20Accord%20includes%20an%20initial,5%20years%20from%20mid%E2%80%912024.">National Housing Accord</a> aims to deliver 1.2 million new dwellings over five years from mid-2024. But it must ensure these are “well-located” for people who need affordable housing, as suggested in the accord. Recent <a href="https://www.tandfonline.com/doi/full/10.1080/02673037.2023.229051">modelling</a> shows unaffordable housing and poor neighbourhoods both negatively affect mental health, reinforcing the need to provide both affordable and well-located housing. <h2>The upcoming budget</h2> While the <a href="https://www.dss.gov.au/sites/default/files/documents/05_2023/payments-cra_budget_fact_sheet_fa_0.pdf">15% increase</a> in the maximum rent assistance rate was welcomed in the last budget, the program is long overdue for a major restructure to target those in rental stress. Also, tax concessions on second properties should be wound back to reduce competition for those struggling to buy their first home. This would eventually help ease affordability pressures on low-income renters as more higher-income renters <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/1467-8454.12335">shift into homeownership</a>. The potential negative impacts on rental supply can be mitigated by careful design of tax and other changes that guard against market destabilisation concerns. Overall, housing affordability solutions have to be multi-faceted. The housing system is badly broken and meaningful repair cannot be achieved unless policymakers are willing to confront both supply and demand challenges.<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/228511/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, ARC Future Fellow & Professor of Economics, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin 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/our-housing-system-is-broken-and-the-poorest-australians-are-being-hardest-hit-228511">original article</a>. </div>

Money & Banking

Why don’t Australians talk about their salaries? Pay transparency and fairness go hand-in-hand

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/carol-t-kulik-150471">Carol T Kulik</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> In Australia, it’s not the done thing to know – let alone ask – what our colleagues are paid. Yet, it’s easy to see how pay transparency can make pay systems fairer and more effective. With more information on how much certain tasks and roles are valued, employees can better understand and interpret pay differences, and advocate for themselves. When pay is weakly aligned with employee contributions, pay transparency can be embarrassing for firms. As the government continues to <a href="https://www.smh.com.au/business/workplace/think-your-male-colleagues-earn-more-than-you-soon-you-ll-know-for-sure-20240104-p5ev7i.html">legislate for pay transparency</a>, wise employers should move to identify – and correct – both real and perceived inequities. <h2>The salary taboo</h2> At one extreme, imagine that you work for California-based tech company Buffer, which develops social media tools. Buffer lists the salary of every company employee, in descending order, on its <a href="https://buffer.com/salaries">website</a>. Salaries are non-negotiable and all Buffer employees receive a standard pay raise each year. Prospective job applicants can use Buffer’s online <a href="https://buffer.com/salary-calculator/senior-data-engineer/intermediate">salary calculator</a> to estimate their pay. Does Buffer’s pay system make you cheer – “yay, no uncomfortable salary negotiations!”, or squirm – “what, my salary is on the website?” Most probably, both. There is a persistent social norm researchers call the <a href="https://www.sciencedirect.com/science/article/pii/S0047272723000725">salary taboo</a>. We want to know, but we don’t like to ask, and we definitely don’t want anyone to know that we’re asking. In Norway, an app that enabled users to <a href="https://www.aeaweb.org/articles?id=10.1257/aer.20160256">access neighbors’ tax-reported income</a> was enormously popular – but only while the user could remain anonymous. <h2>The problem with not knowing</h2> Historically, companies have given employees only minimal information about their pay systems, and some have even prohibited them from sharing their own pay information. Such non-transparency creates two big problems. First, managers place <a href="https://sloanreview.mit.edu/article/achieving-meritocracy-in-the-workplace/">too much trust</a> in organisational systems. The more managers become convinced that pay decisions accurately reflect employee contributions, the less diligent they become about monitoring their own personal biases. Without accountability, it’s easy for an organisation’s pay system to drift into inequity. Second, in the absence of comparative information, employees often suspect they are being underpaid – even if they aren’t. In a <a href="https://www.payscale.com/research-and-insights/fair-pay-impact/">survey</a> of over 380,000 employees by data firm Payscale, 57% of employees paid at the market rate and 42% of people paid above the market rate all believed they were being underpaid. However, unfounded it might be, a nagging sense of inequity can drive people out the door. Payscale estimates that people who think they are underpaid are 50% more likely than other employees to seek a new job in the next six months. <h2>Pay transparency is trending</h2> Broadly speaking, pay transparency policies see companies report their pay levels or ranges, explain their pay-setting processes, or encourage their employees to share pay information. Some companies voluntarily share pay information in response to workforce demand, but there’s also a trend toward mandating pay transparency. In Australia, pay secrecy terms are <a href="https://theconversation.com/pay-secrecy-clauses-are-now-banned-in-australia-heres-how-that-could-benefit-you-195814">banned</a> from employment contracts and the Workplace Gender Equality Agency is <a href="https://www.wgea.gov.au/about/our-legislation/publishing-employer-gender-pay-gaps">publishing employers’ gender pay gaps</a>. The European Union’s <a href="https://ec.europa.eu/commission/presscorner/detail/es/ip_22_7739">Pay Transparency Directive</a> already publishes gender pay gaps and requires employers to provide comparative pay data to employees upon request. Several US states and cities now require employers to <a href="https://www.govdocs.com/pay-transparency-laws/">include salary ranges</a> in their recruitment materials. <h2>Pay transparency usually has positive effects</h2> In equitable pay systems, pay differences align with the differential values employees bring to the business. When pay systems are transparent, it’s easy for employees to recognise when they – and their coworkers – are being appropriately rewarded for their contributions. Evidence is building that such transparency is often a good thing. For one, it can increase employee <a href="https://journals.sagepub.com/doi/10.1177/002224377801500204">performance and job satisfaction</a>. People also generally <a href="https://www.journals.uchicago.edu/doi/10.1086/717891">underestimate their bosses’ salaries</a>, so pay transparency can inspire employees to aspire to higher-paid senior positions. And pay transparency identifies staff with unique expertise, so <a href="https://psycnet.apa.org/record/2016-01521-001">employees seek help</a> from the right coworkers. Pay transparency has also been shown to help narrow gender pay gaps. As pay transparency rules spread across public academic institutions in the US, the pay gap between male and female academics <a href="https://www.nature.com/articles/s41562-022-01288-9">dramatically narrowed</a> (in some states, it was even eliminated). In Denmark, where firms are now required to provide pay statistics that compare men and women, the national gender pay gap has <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.13136">declined by 13%</a> relative to the pre-legislation average. <h2>But it can still be risky</h2> Every pay system has pockets of unfairness, where managers have made <a href="https://psycnet.apa.org/record/2001-01537-002">special arrangements</a> to attract or retain talent. Pay transparency exposes these exceptions, so they can be immediately explained or corrected. But if there are too many such pockets, managers need to brace for a productivity downturn. When pay transparency reveals systematic inequities – for example, disparities based on gender – overall organisational <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4341804">productivity declines</a>. Over the long run, pay transparency leads to <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.13136">flatter and narrower</a> pay distributions, but distributions can also be too flat and too narrow. Managers making pay decisions are aware that their decisions will be directly scrutinised and may <a href="https://journals.aom.org/doi/10.5465/amj.2020.1831">become reluctant</a> to assign high wages even for high performance. If pay <a href="https://www.nature.com/articles/s41562-022-01288-9">loses its motivating potential</a>, employees can become disheartened, especially <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/peps.12054">star performers</a>. <h2>Proceed with caution</h2> As stakeholders on this issue demand more transparency, employers would be wise to stay ahead of legislative moves. Independently making the first move is a show of good faith and can unfold in stages. A good first step is to reveal the pay ranges associated with groups of related roles, giving employers time to conduct internal audits, communicate with employees and systematically correct inequities as they surface. In contrast, having to reveal pay data because of a government mandate can publicly expose patterns of inequity and cause permanent damage to a company’s reputation.<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/224067/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/carol-t-kulik-150471">Carol T Kulik</a>, Research Professor, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South 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/why-dont-australians-talk-about-their-salaries-pay-transparency-and-fairness-go-hand-in-hand-224067">original article</a>. </div>

Money & Banking

Family of eight forced to live in tent amid rental crisis

A family of eight have been forced to live in a tent for over six months as they wait to find suitable accommodation after their last rental lease ended. Cameron and Tameka Fletcher and their six children, aged between one and 10, have been living in a tent and have had to move from campsite to campsite since September. The couple claimed that the government can't support them because they have "too many children", and are waiting for public housing, but they might not meet the criteria to be eligible for it. They were reportedly staying in a makeshift tent city in a suburban park north of Brisbane. "We've always had a house, we've never done this," Cameron Fletcher told Nine News. "Everyone here is going through the same thing. But it's the only way to get help." “We can only do what’s best for our kids, to keep a roof over their heads,” his wife added. One of the couple's daughters is due to start school next year, and they have been struggling to enrol her as the family doesn't have a permanent address. The family said they are also struggling with day-to-day activities like finding breakfast, washing their clothes and getting the kids ready for school, and are using solar camping showers purchased from Kmart to clean themselves. According to Nine News, the family would be happy with a three-bedroom home but were told by state housing officials that they can only be offered a five-bedroom home to avoid overcrowding, but there are currently none available. In a statement issued to Yahoo News, a spokesperson for Department of Housing said it “has been working with the family since September last year, including providing accommodation which they chose to leave”. "As we’ve been assisting them to find longer-term options, they have declined further offers of accommodation," the spokesperson said. "With regards to social housing, there are eligibility factors that need to be met, including income thresholds. However, the department continues to work with the family to find a private rental and give any other support they might need." This comes as new <a href="https://www.news.com.au/finance/real-estate/rent-shock-what-youll-be-paying-in-every-australian-suburb-in-2024/news-story/10b67da9ebe170a2e2d37caa7e66bf40" target="_blank" rel="noopener">PropTrack</a> data, released in March, revealed that rent has increased by 17 per cent over the past 12 months, across all the capital cities in Australia. More than half of Queenslanders who have applied for social housing are reportedly homeless and have had to wait for over two years amid a lack of supply and increased demands. Earlier this year, the Queensland government announced it was aiming to build another 53,500 social homes by 2046, with a $3.1 billion funding boost to deliver one million homes. Images: Nine News

Money & Banking

"Out-of-touch" Project stars slammed over clash with renter advocate

Social media users have slammed The Project hosts, following their recent interview with a renter advocate who encourages Aussies struggling with the housing crisis to squat in empty homes. Jordan van den Berg, founder of the S*** Rentals website shared a video over the weekend outside a rundown house in Chadstone, Melbourne, saying: “Are you sick of rich people hoarding empty houses during a housing crisis? I know I am." “Here’s how you can do something about it.” He then encouraged people to submit information on empty homes in their suburbs via a form on his website, which he plans to promote on his socials so those struggling to find a home could squat in them. “Fun fact – squatting in Australia is not necessarily illegal, which is the best type of legal, especially if the front door doesn’t actually lock," he said. On Monday, he appeared on The Project to talk about his controversial plans, and was grilled by the show's hosts. “I know we’re in a pretty serious housing crisis, but do you really think encouraging people to squat in private properties is the way to fix it?" asked co-host Sarah Harris. “Let me answer your question by asking you a question. Do you think it’s right we have thousands of vacant, abandoned homes while we have people living on the street?” van de Berg replied. Harris said she didn’t and asked whether the solving the housing crisis should be focused on policy instead. Later in the interview, panellist Steve Price casted his doubts on whether there actually were a lot of vacant homes, but van de Berg replied that he'd received over 300 submissions from Aussies about empty homes in their suburbs. van de Berg also said that desperate people are even squatting in abandoned properties, and added: “If someone needs a house, they can reach out to me and I’ll send them [details about] an empty home." Harris was shocked that people would “basically camp out in abandoned houses with no power" which van den Berg argued that “camping out inside” was likely better than sleeping on the streets or in a park. Co-host Waleed Aly then asked whether van de Berg was encouraging people to break the law, but he pointed out that squatting – done properly – isn’t technically illegal. The interview has been slammed on social media, with Writer and comedian John Delmenico posting on X: “Watching the rich out-of-touch panel on the Project realise in real time that not everyone is rich is so bizarre. "Especially the part where Pingers has to explain that being in a house is safer than sleeping on the street. How do they host the news with no connection to reality?” Others agreed mocking the panellists’ shock that “shelter without electricity is better than no shelter with no electricity”. “She was laughing at the fact that ppl would camp out in abandoned houses with no power/water, until he put her in her place by reminding her they’re better off camping under shelter than outside. Mic drop moment," one wrote. “Homelessness exists … it’s quite a big problem actually," another added. However, a few others agreed with the Project hosts. “Encouraging people to squat, who does he think he is?" one wrote. “He thinks he’s doing a good thing, but he’s given absolutely no critical thought to the implications of encouraging people to take over ‘empty homes’," another added. Leo Patterson Ross, chief executive of the Tenants Union of NSW, said that van den Berg was “drawing attention to issues that government should be acting on”. “In the middle of a housing crisis with growing levels of homelessness, we should be looking to ensure homes are not left vacant,” Patterson Ross said. “If a person leaves a property unattended and empty for 12 years, then I think many of us would agree it seems fair that the community can reclaim usage to provide a home, whether that be individuals or government.” Image: The Project

Legal

Qantas announces major price hike

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

Money & Banking

Millions of Aussies set for power bill relief

Millions of Aussies are set for some financial relief, with electricity costs set to drop by up to 7 per cent in the coming months. The Australian Energy Regulator (AER) and Victoria's Essential Services Commission (ESC) both released their draft default market offers - the maximum energy retailers are allowed to charge customers - for the 2024-25 financial year. Under the AER draft, residents in Sydney, Newcastle and the Hunter on the default offer will pay between 3 and 3.4 per cent less for electricity starting from July 1. The biggest drop is set for Victoria, with the ESC proposing a 6.4 per cent decrease. Those in Western Sydney, the Illawarra, and South Coast, will see their electricity bills decrease by 1.9 to 7.1 per cent. South Australians will receive a drop between 0.5 and 2.5 per cent. A number of small business customers will also benefit from lower power bill costs with 9.7 per cent for Sydney, Newcastle and the Hunter; 4.4 per cent for Western Sydney and the South Coast; 0.3 per cent for South-East Queensland; 8.2 per cent for South Australia; and 7 per cent for Victoria. Energy Minister Chris Bowen welcomed the news of lower power bill costs, but acknowledged that it will continue to play a part in the cost of living challenges faced by many Australians. "This is encouraging news," he said. "Encouraging for those small businesses and families who will receive lower energy bills as a result. "But nobody should suggest that there aren't real cost of living pressures around the world and in Australia, and energy prices are of course part of that and will continue to be." Not everyone will see a drop, with customers in the rest of regional NSW to get a small increase of 0.9 per cent, while the default offer for South East Queensland will increase by up to 2.7 per cent. While not all households are on the default offer, Bowen said that the AER's decision will also affect those not on the offer. "This either impacts directly or indirectly your energy bill," he said. "Directly for those on the default market offer. For those who aren't on the direct market offer, indirectly - the energy companies have to benchmark themselves against this, tell their consumers how they compare to this, and it provides very real pressure on them to match it. "If they don't, consumers will know about it and will make choices accordingly. "It's partly about those on the default market offer, but it actually impacts on all our bills indirectly." AER chair Clare Savage said that the cost of living crisis was the main contributor for their draft decision. "We know that economic conditions have put pressure on many Australians and the increases in electricity prices over the last two years has made energy less affordable for many households," she said. "In light of this, the AER has, in this decision, placed increased weight on protecting consumers." The draft decision is not final, with both the AER and ESC to receive consultation and feedback from stakeholders before confirming their default market offers in May. Image: Getty

Money & Banking

What is negative gearing and what is it doing to housing affordability?

<a href="https://theconversation.com/profiles/michelle-cull-340911">Michelle Cull</a>, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney University</a> Australia’s housing crisis is putting the <a href="https://www.mortgagechoice.com.au/guides/what-is-the-great-australian-dream/">Australian dream</a> to own one’s home out of reach for many. But it’s not just <a href="https://www.aihw.gov.au/reports/australias-welfare/home-ownership-and-housing-tenure">home ownership</a> that has been affected. Rental affordability has also become a serious issue. This has reignited the debate about negative gearing; whether or not it is fair and whether it holds the key to fixing the housing crisis. <h2>What is negative gearing?</h2> <a href="https://treasury.gov.au/review/tax-white-paper/negative-gearing">Negative gearing</a> refers to using borrowed money to invest in an asset so it results in a loss which can be claimed as a tax deduction against other income. For example, a property investment is negatively geared if the net rental income received is lower than the mortgage interest. The loss is then offset against other income, such as wages and salaries, which reduces the amount of income tax payable. Negative gearing is commonly used for property investments but also applies to other investments (such as shares). Investments can also be positively geared when net income from the investment is more than the interest on borrowings. The attractiveness of negative gearing in Australia is mainly due to its ability to reduce the amount of income tax. For this reason, it can be more beneficial to individuals who are on higher marginal tax rates. However, capital gains tax must be paid on any gain when the asset is sold. <h2>How does negative gearing work?</h2> Let’s look at a simple example of negative gearing. Say an investment property was rented to tenants at A$500 a week ($26,000 a year), and associated expenses (such as agent fees, rates, mortgage interest, maintenance) were $40,000 for the year. This leaves a shortfall of $14,000. The property owner can deduct the $14,000 from their taxable income to reduce their liability. For example if they received $100,000 from wages, they would pay tax on only $86,000 (saving $4,550 in income tax). Individuals on higher incomes and therefore higher marginal tax rates would receive larger tax deductions (for example, someone earning over $180,001 would pay $6,300 less tax). While negative gearing an investment property can reduce tax while it is being rented, it can also result in a large <a href="https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/what-is-capital-gains-tax">capital gains tax</a> bill once the property is sold (even though capital gains tax is halved for assets held for more than 12 months). For example, if the cost base for a property purchased ten years ago was $400,000 and it sells for $900,000 today, capital gains tax would be calculated on half of the $500,000 difference. At a marginal rate of 45%, the tax bill would be $112,500. <h2>How widespread is it in Australia?</h2> According to the <a href="https://data.gov.au/data/dataset/taxation-statistics-2020-21">Australian Taxation Office</a>, about 2.25 million individual tax payers (21% of all individual tax payers) claimed deductions against rental income for a total 3.25 million properties in 2020-21 financial year. Of these, 47% negatively geared their properties, claiming a net rental loss. This is equivalent to just less than 10% of all taxpayers. Investors with fewer properties were more likely to be using negative gearing with over 71% of property investors having only one investment property. <hr /> <iframe id="Wv9lV" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/Wv9lV/" width="100%" height="400px" frameborder="0"></iframe> <hr /> The largest group of property investors (524,220) had one investment property and a total annual taxable income between $50,001 and $100,000. The chart above shows the proportion of property investors by age group. From 2016-2017 to 2020-2021, the total net rental income on property investments in Australia went from a loss of $3.3 billion to a gain of $3.1 billion (as you can see from the chart below). For the same period, the proportion of investors negatively gearing their properties dropped from 58% to 47%, as lower interest rates reduced losses. <hr /> <iframe id="fXnoe" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/fXnoe/" width="100%" height="400px" frameborder="0"></iframe> <hr /> Negative gearing is also becoming less attractive with the government’s recent changes to <a href="https://treasury.gov.au/tax-cuts">tax brackets and marginal tax rates</a>. According to a study conducted by <a href="https://www.pexa.com.au/staticly-media/2023/03/Whitepaper-2-Private-renting-in-Australia-a-broken-system_compressed-sm-1679450145.pdf">LongView and PEXA</a>, 60% of property investors would be financially better off if they instead put their money into a superannuation fund. <h2>When was it introduced?</h2> Negative gearing has been allowed under tax laws since 1936. It was thought it would encourage investment in housing and increase supply. However, debate around its impact on housing affordability led the government to partially abolish it in 1985 by not allowing rental property losses to reduce tax on other sources of income. There was a shortage of housing and rents rose during the two years it was abolished. As a result, in 1987, negative gearing was reinstated and capital gains tax legislation was introduced. <h2>Is it used in other countries?</h2> Canada, Germany, Japan and Norway use negative gearing. In Finland, France and the United States, rental losses can offset future rental income only. In the US, <a href="https://www.irs.gov/publications/p936#en_US_2023_publink1000229891">home owners are entitled</a> to claim a tax deduction for mortgage interest on their own home. The use and benefit of negative gearing depends upon all aspects of a country’s tax system. So although it may be attractive in countries with high marginal tax rates, other taxes such as capital gains tax, land tax and stamp duties may reduce its appeal. <h2>Negative gearing’s impact on housing affordability</h2> Many factors affect the cost of housing, including interest rates, inflation, employment, the overall taxation system and population growth, making housing affordability a complex issue. <a href="https://www.smh.com.au/politics/federal/nz-kills-tax-loophole-on-property-to-slow-soaring-house-prices-20210323-p57d9s.html">In New Zealand, negative gearing is being phased out</a> due to its impact on housing prices. However, unlike Australia, New Zealand does not have capital gains tax, making negative gearing more popular and more likely to impact housing prices. In addition to phasing out negative gearing, the New Zealand government <a href="https://www.hud.govt.nz/our-work/public-housing-plan/">increased the supply of public housing</a> and <a href="https://www.abc.net.au/news/2023-09-25/nz-auckland-house-supply-experiment-results-in-dramatic-change/102846126">relaxed zoning regulations</a> to provide more affordable housing. In Australia, however, there are concerns abolishing negative gearing will cause rents to rise, as they did in the 1980s. More innovative approaches to housing affordability are needed to ensure ample supply of property for first home buyers and tenants. Some consideration could be given to allowing first home buyers to claim a tax deduction for mortgage interest, increasing capital gains tax, limiting the number or type of investment properties held, capping rent increases, or more infrastructure investment from the government for first home buyers and social housing. One or more of these measures would be a step in the right direction. Negative gearing on its own is not the answer to housing affordability. The whole system needs an overhaul, with a combination of measures needed to adequately address affordability, for now and for future generations. Taking no action will put home ownership out of reach for even more Australians.<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/223823/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/michelle-cull-340911">Michelle Cull</a>, Associate professor, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney 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/what-is-negative-gearing-and-what-is-it-doing-to-housing-affordability-223823">original article</a>.

Money & Banking

Restaurant sparks outrage for "ridiculous" fee

As inflation rates continue to rise it is not surprising that restaurants are charging extra fees, but one disgruntled customer was particularly shocked to see this "ridiculous" fee on their bill. The customer, who dined at restaurant and cocktail bar in Georgia, USA shamed the restaurant for charging their customers a $20 fee for “live band entertainment”. They shared their complaints on Reddit with a copy of their receipt and an unexpected fee at the bottom which read: “Two Live Band Entertainment Fee — $20”. Most people in the comments were equally annoyed and called the fee "ridiculous". “This is one of those leave money on the table, hand the waiter a tip and leave, sorry but if I didn’t order it, I’m not paying for it,” one wrote. “Great way to not have repeat customers,” said another. “This will backfire for them, just be honest and upfront," a third added. Other commenters were less sympathetic and did not understand why the customer was complaining when it looked like they could afford it. “When you’re paying seven dollars for a bottle of water, you really don’t get to complain about ‘unexpected costs.’ You knew what you signed up for," one commenter wrote. “Imagine a live band getting paid, huh,” another added. “They’re buying $7 bottles of water, they can probably afford it,” added a third. Image: Getty/ Reddit

Money & Banking

We talked to dozens of people about their experience of grief. Here’s what we learned (and how it’s different from what you might think)

<a href="https://theconversation.com/profiles/michelle-peterie-564209">Michelle Peterie</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> and <a href="https://theconversation.com/profiles/alex-broom-121063">Alex Broom</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> Have you ever felt a sudden pang of sadness? A bird seems to stop and look you in the eye. A photo drops out of a messy drawer from long ago, in the mundanity of a weekend spring clean. Your day is immediately derailed, unsettled. You are pulled into something you thought was past. And yet, in being pulled back, you are grateful, reconnected, and grief-stricken all over again. “You’ll get over it”. “Give it time”. “You need time to move on”. These are common cultural refrains in the face of loss. But what if grief doesn’t play by the rules? What if grief is a different thing altogether? We talked to 95 people about their experiences of grief surrounding the loss of a loved one, and <a href="https://journals.sagepub.com/doi/10.1177/00380261241228412">their stories</a> provided a fundamentally different account of grief to the one often presented to us culturally. <h2>Disordered grief?</h2> Grief is often imagined as a time-bound period in which one processes the pain of loss – that is, adjusts to absence and works toward “moving on”. The bereaved are expected to process their pain within the confines of what society deems “normal”. The <a href="https://theconversation.com/explainer-what-is-the-dsm-and-how-are-mental-disorders-diagnosed-9568">DSM-5 psychiatric manual</a> says if grief drags on too long, in fact, it becomes a pathology (a condition with a medical diagnosis). “Prolonged grief disorder” is the name given to “persistent difficulties associated with bereavement that exceeded expected social, cultural, or religious expectations”. While there can be <a href="https://theconversation.com/why-prolonged-grief-should-be-listed-as-a-mental-disorder-4262">value</a> in clinical diagnostic categories such as this, the danger is they put artificial boundaries around emotions. The pathologisation of grief can be deeply alienating to those experiencing it, for whom the pressure to “move on” can be hurtful and counterproductive. The stories we gathered in our research were raw, complex and often fraught. They did not sit comfortably with commonsense understandings of how grief “should” progress. As bereaved daughter Barbara told us: "Grief is not in the little box, it doesn’t even come close to a little box." <h2>Grief starts early</h2> The tendency is to think of grief as something that happens post death. The person we love dies, we have a funeral, and the grief sets in. Then it slowly subsides with the steady march of time. In fact, grief often begins earlier, often in a clinical consultation where the words “terminal” or “nothing more we can do” are used. Or when a loved one is told “go home and get your life in order”. Grief can begin months or even years before bereavement. As the people we interviewed experienced it, loss was also cumulative. The gradual deterioration of a loved one’s health in the years or months before their death imposed other painful losses: the loss of chosen lifestyles, the loss of longstanding relational rhythms, the loss of shared hopes and anticipated futures. Many participants felt their loved ones – and, indeed, the lives they shared with them – slipping away long before their physical deaths. <h2>Living with the dead</h2> Yet the dead do not simply leave us. They remain with us, in memories, rituals and cultural events. From <a href="https://theconversation.com/what-ancient-cultures-teach-us-about-grief-mourning-and-continuity-of-life-86199">Mexico’s Dia de los Muertos</a> to <a href="https://theconversation.com/japans-obon-festival-how-family-commemoration-and-ancestral-worship-shapes-daily-life-179890">Japan’s Opon</a>, festivals of the dead play a key role in cultures around the world. In that way, remembering the dead remains a critical aspect of living. So too does <a href="https://theconversation.com/theres-not-always-closure-in-the-never-ending-story-of-grief-3096">the ongoing experience of grief</a>. Events of this kind are not merely celebratory. They are critical forms through which life and death, joy and grief, are brought together and integrated. The absence of remembering can hold its own trouble, as our participants’ accounts revealed. As bereaved wife Anna explained: "I just find it really frustrating and I do get quite angry and upset sometimes. I know that life goes on. I’d be talking to girlfriends and stuff like that and it’s like they’ve forgotten that I’ve lost my husband. They haven’t, but nothing really changed in their life. But for me, and my family, it has." Part of the problem, here, is the ambivalent role grief plays in advanced industrialised societies like ours. Many of our participants felt pressure to perform resilience or (in clinical terms) to <a href="https://journals.sagepub.com/doi/full/10.1177/1363459317724854">“recover” quickly after loss</a>. But whose interests does a swift recovery serve? An employer’s? Friends who just want to get on with a death-free life? And, even more importantly, mightn’t ongoing connections with the dead enable better living? Might bringing the dead along with us actually make for better deaths and better lives? Many of our participants felt their loved ones remained with them, and experienced their “absent presence” as a source of comfort. Grieving, in this context, involved spending time “with” the dead. Anna described her practice as follows: "I had a diary, so I just write stuff in it about how I’m feeling or something happened and I’ll say to [my deceased husband], it’s all to [my deceased husband], “Do you remember, blah, blah, blah.” I’ll just talk about that memory that I have of that particular time and I find that that helps." <h2>Caring for those who grieve</h2> Grief does not begin at death, but neither do relationships end there. To rush the bereaved through grief – to usher them towards “recovery” and the more comfortable territories of happiness and productivity – is to do them a disservice. And, perhaps more critically, ridding our lives of the dead and grief may, in the end, make for more limited and muted emotional lives.<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/223848/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/michelle-peterie-564209">Michelle Peterie</a>, Research Fellow, Sydney Centre for Healthy Societies, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> and <a href="https://theconversation.com/profiles/alex-broom-121063">Alex Broom</a>, Professor of Sociology & Director, Sydney Centre for Healthy Societies, <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/we-talked-to-dozens-of-people-about-their-experience-of-grief-heres-what-we-learned-and-how-its-different-from-what-you-might-think-223848">original article</a>.

Caring

Mothers’ dieting habits and self-talk have profound impact on daughters − 2 psychologists explain how to cultivate healthy behaviors and body image

<a href="https://theconversation.com/profiles/janet-j-boseovski-451496">Janet J. Boseovski</a>, <a href="https://theconversation.com/institutions/university-of-north-carolina-greensboro-2069">University of North Carolina – Greensboro</a> and <a href="https://theconversation.com/profiles/ashleigh-gallagher-1505989">Ashleigh Gallagher</a>, <a href="https://theconversation.com/institutions/university-of-north-carolina-greensboro-2069">University of North Carolina – Greensboro</a> Weight loss is one of the most common health and appearance-related goals. Women and <a href="https://www.cdc.gov/nchs/products/databriefs/db340.htm">teen girls</a> are <a href="https://www.cdc.gov/nchs/products/databriefs/db313.htm">especially likely to pursue dieting</a> to achieve weight loss goals even though a great deal of research shows that <a href="https://theconversation.com/what-thin-people-dont-understand-about-dieting-86604">dieting doesn’t work over the long term</a>. We are a <a href="https://www.duck-lab.com/people">developmental psychologist</a> and a <a href="https://psy.uncg.edu/directory/ashleigh-gallagher/">social psychologist</a> who together wrote a forthcoming book, “Beyond Body Positive: A Mother’s Evidence-Based Guide for Helping Girls Build a Healthy Body Image.” In the book, we address topics such as the effects of maternal dieting behaviors on daughters’ health and well-being. We provide information on how to build a foundation for healthy body image beginning in girlhood. <h2>Culturally defined body ideals</h2> Given the strong influence of social media and other cultural influences on body ideals, it’s understandable that so many people pursue diets aimed at weight loss. <a href="https://communityhealth.mayoclinic.org/featured-stories/tiktok-diets">TikTok</a>, YouTube, Instagram and celebrity websites feature slim influencers and “how-tos” for achieving those same results in no time. For example, women and teens are engaging in rigid and extreme forms of exercise such as 54D, a program to <a href="https://54d.com/">achieve body transformation in 54 days</a>, or the <a href="https://health.clevelandclinic.org/75-hard-challenge-and-rules">75 Hard Challenge</a>, which is to follow five strict rules for 75 days. For teens, these pursuits are likely fueled by trendy body preoccupations such as the desire for “<a href="https://www.nytimes.com/2024/02/06/well/move/tiktok-legging-legs-eating-disorders.html">legging legs</a>.” Women and teens have also been been inundated with recent messaging around <a href="https://theconversation.com/drugs-that-melt-away-pounds-still-present-more-questions-than-answers-but-ozempic-wegovy-and-mounjaro-could-be-key-tools-in-reducing-the-obesity-epidemic-205549">quick-fix weight loss drugs</a>, which come with a lot of caveats. Dieting and weight loss goals are highly individual, and when people are intensely self-focused, it is <a href="https://doi.org/10.1521/jscp.2000.19.1.70">possible to lose sight of the bigger picture</a>. Although women might wonder what the harm is in trying the latest diet, science shows that dieting behavior doesn’t just affect the dieter. In particular, for women who are mothers or who have other girls in their lives, these behaviors affect girls’ emerging body image and their health and well-being. <h2>The profound effect of maternal role models</h2> Research shows that mothers and maternal figures <a href="https://doi.org/10.1016/j.brat.2017.11.001">have a profound influence on their daughters’ body image</a>. The opportunity to influence girls’ body image comes far earlier than adolescence. In fact, research shows that these influences on body image <a href="https://www.teenvogue.com/story/how-toxic-diet-culture-is-passed-from-moms-to-daughters">begin very early in life</a> – <a href="https://doi.org/10.1016/bs.acdb.2016.10.006">during the preschool years</a>. Mothers may feel that they are being discreet about their dieting behavior, but little girls are watching and listening, and they are far more observant of us than many might think. For example, one study revealed that compared with daughters of nondieting women, 5-year-old girls whose mothers dieted <a href="https://doi.org/10.1016/S0002-8223(00)00339-4">were aware of the connection between dieting and thinness</a>. Mothers’ eating behavior does not just affect girls’ ideas about dieting, but also their daughters’ eating behavior. The amount of food that mothers eat <a href="https://doi.org/10.1016/j.appet.2018.04.018">predicts how much their daughters will eat</a>. In addition, daughters whose mothers are dieters are <a href="https://doi.org/10.1016/j.appet.2018.04.018">more likely to become dieters themselves</a> and are also <a href="https://doi.org/10.1016/j.eatbeh.2007.03.001">more likely to have a negative body image</a>. Negative body image is <a href="https://theconversation.com/mounting-research-documents-the-harmful-effects-of-social-media-use-on-mental-health-including-body-image-and-development-of-eating-disorders-206170">not a trivial matter</a>. It affects girls’ and women’s mental and physical well-being in a <a href="https://doi.org/10.1177/1359105317710815">host of ways</a> and <a href="https://doi.org/10.1016/j.brat.2011.06.009">can predict the emergence of eating disorders</a>. <h2>Avoiding ‘fat talk’</h2> What can moms do, then, to serve their daughters’ and their own health? They can focus on small steps. And although it is best to begin these efforts early in life – in girlhood – it is never too late to do so. For example, mothers can consider how they think about and talk about themselves around their daughters. Engaging in “fat talk” may inadvertently send their daughters the message that larger bodies are bad, <a href="https://doi.org/10.1016/j.bodyim.2020.07.004">contributing to weight bias</a> and negative self-image. Mothers’ fat talk also <a href="https://doi.org/10.1080/15267431.2021.1908294">predicts later body dissatisfaction in daughters</a>. And negative self-talk isn’t good for mothers, either; it is associated with <a href="https://doi.org/10.1177/1359105318781943">lower motivation and unhealthful eating</a>. Mothers can instead practice and model self-compassion, which involves treating oneself the way <a href="https://doi.org/10.1016/j.bodyim.2016.03.003">a loving friend might treat you</a>. In discussions about food and eating behavior, it is important to avoid moralizing certain kinds of food by labeling them as “good” or “bad,” as girls may extend these labels to their personal worth. For example, a young girl may feel that she is being “bad” if she eats dessert, if that is what she has learned from observing the women around her. In contrast, she may feel that she has to eat a salad to be “good.” Moms and other female role models can make sure that the dinner plate sends a healthy message to their daughters by showing instead that all foods can fit into a balanced diet when the time is right. Intuitive eating, which emphasizes paying attention to hunger and satiety and allows flexibility in eating behavior, is associated with <a href="https://doi.org/10.1007/s40519-020-00852-4">better physical and mental health in adolescence</a>. Another way that women and especially moms can buffer girls’ body image is by helping their daughters <a href="https://doi.org/10.1016/j.bodyim.2021.12.009">to develop media literacy</a> and to think critically about the nature and purpose of media. For example, moms can discuss the misrepresentation and distortion of bodies, such as the use of filters to enhance physical appearance, on social media. <h2>Focusing on healthful behaviors</h2> One way to begin to focus on health behaviors rather than dieting behaviors is to develop respect for the body and to <a href="https://theconversation.com/body-neutrality-what-it-is-and-how-it-can-help-lead-to-more-positive-body-image-191799">consider body neutrality</a>. In other words, prize body function rather than appearance and spend less time thinking about your body’s appearance. Accept that there are times when you may not feel great about your body, and that this is OK. To feel and look their best, mothers can aim to stick to a <a href="https://theconversation.com/whats-the-best-diet-for-healthy-sleep-a-nutritional-epidemiologist-explains-what-food-choices-will-help-you-get-more-restful-zs-219955">healthy sleep schedule</a>, manage their stress levels, <a href="https://theconversation.com/fiber-is-your-bodys-natural-guide-to-weight-management-rather-than-cutting-carbs-out-of-your-diet-eat-them-in-their-original-fiber-packaging-instead-205159">eat a varied diet</a> that includes all of the foods that they enjoy, and <a href="https://theconversation.com/the-runners-high-may-result-from-molecules-called-cannabinoids-the-bodys-own-version-of-thc-and-cbd-170796">move and exercise their bodies regularly</a> as lifelong practices, rather than engaging in quick-fix trends. Although many of these tips sound familiar, and perhaps even simple, they become effective when we recognize their importance and begin acting on them. Mothers can work toward modeling these behaviors and tailor each of them to their daughter’s developmental level. It’s never too early to start. <h2>Promoting healthy body image</h2> Science shows that several personal characteristics are associated with body image concerns among women. For example, research shows that women who are <a href="https://doi.org/10.1016/j.bodyim.2020.02.001">higher in neuroticism</a> <a href="https://doi.org/10.1186/2050-2974-1-2">and perfectionism</a>, <a href="https://doi.org/10.3389/fpsyg.2022.983534">lower in self-compassion</a> or <a href="https://doi.org/10.1016/j.bodyim.2013.08.001">lower in self-efficacy</a> are all more likely to struggle with negative body image. Personality is frequently defined as a person’s characteristic pattern of thoughts, feelings and behaviors. But if they wish, <a href="https://doi.org/10.1002/per.1945">mothers can change personality characteristics</a> that they feel aren’t serving them well. For example, perfectionist tendencies – such as setting unrealistic, inflexible goals – can be examined, challenged and replaced with more rational thoughts and behaviors. A woman who believes she must work out every day can practice being more flexible in her thinking. One who thinks of dessert as “cheating” can practice resisting moral judgments about food. Changing habitual ways of thinking, feeling and behaving certainly takes effort and time, but it is far more likely than diet trends to bring about sustainable, long-term change. And taking the first steps to modify even a few of these habits can positively affect daughters. In spite of all the noise from media and other cultural influences, mothers can feel empowered knowing that they have a significant influence on their daughters’ feelings about, and treatment of, their bodies. In this way, mothers’ modeling of healthier attitudes and behaviors is a sound investment – for both their own body image and that of the girls they love.<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/221968/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/janet-j-boseovski-451496">Janet J. Boseovski</a>, Professor of Psychology, <a href="https://theconversation.com/institutions/university-of-north-carolina-greensboro-2069">University of North Carolina – Greensboro</a> and <a href="https://theconversation.com/profiles/ashleigh-gallagher-1505989">Ashleigh Gallagher</a>, Senior Lecturer, <a href="https://theconversation.com/institutions/university-of-north-carolina-greensboro-2069">University of North Carolina – Greensboro</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/mothers-dieting-habits-and-self-talk-have-profound-impact-on-daughters-2-psychologists-explain-how-to-cultivate-healthy-behaviors-and-body-image-221968">original article</a>.

Mind

How baby boomers are benefiting from Australia's "worst financial mistake"

A financial expert has explained how baby boomers have remained largely unscathed by the ongoing housing crisis in Australia. ABC finance guru Alan Kohler described the crisis as Australia's "worst financial mistake", as Adelaide has now become the country's second least affordable city. The South Australian capital, which has long been known as one of the more affordable places in the country to live, has skyrocketed in price, as the median price for houses and units in Adelaide was $721,376 in January, which is 7.9 times higher than the state's average full-time salary of $91,026. "There are a couple of things that might surprise you: Adelaide became the second, least affordable Australian city last year," Mr Kohler explained. "Adelaide has just taken over from Hobart in second place." "What's going on: put simply, incomes in Adelaide, Hobart and Brisbane are not keeping up with house prices, which are being pushed up by fast-rising population and by first-home buyers." Mr Kohler, a baby boomer, noted that when he and his wife bought their first home in Melbourne for $40,000 in 1980, he was earning $11,500 as a journalist, meaning his home cost just 3.5 times his income before a mortgage deposit. "When my wife and I bought our first house in 1980, the average house price was 3.5 times average income," he said. "Now, it's 7.5 times and rising." "That didn't have to happen: it's Australia's worst, economic mistake." Mr Kohler said parents were increasingly propping up the mortgage deposits of first-home buyers, as first-home buyer subsidies from the federal government only pushed up property prices. "Despite rising prices and crushing interest rates, first-home buyers were the fastest-growing type of borrower," he said. "The Bank of Mum and Dad coughing up early inheritances and politicians showering them with grants and concessions, desperate to appear to be doing something about affordability while actually making it worse." Image credits: Shutterstock / ABC

Money & Banking

Restaurant's kind act for struggling Aussies

As Aussies continue to adapt to the rising cost-of-living, one restaurant owner took it upon herself to give back to the "struggling" community. Aleeya Hamidan the owner of Manoosh & Co in Eagle Vale, southwest of Sydney, realised that a lot of people in the community are struggling to afford food. "Prices are going up in rent, and there are a lot of large families that live here as well. They don't have much spare money to go out and eat with their kids after school," she told Yahoo News Australia. So, she decided to implement a system where customers in need can get a free meal that has been paid for by other customers. The text: "Please take one if [you're] in need!! Already paid for from our beautiful customers" is written on a whiteboard, with six receipts containing various orders valued at around $10-$12 attached to it. Hamidan was the first to put up an order on the board a few weeks ago to encourage other customers to do the same, and the system has grown in popularity since. "One man came in a few weeks ago and took one of the free meals, but the following week when he did have money, he purchased one for someone else," she said. "We just didn't want it to be intimidating for people who can't afford our products. "It was just something we started doing for a little but have now continued to do. We've had such amazing feedback on it." The restaurant owner's kind deed was praised after local woman Amanda Mauga posted a picture of the board on social media. "If you are having a hard time and need a meal or coffee, go down to Manoosh Eagle Vale," she shared in a community Facebook page. "People buy food for people who need it. So if you're in need head down there, I have left you a coffee. Enjoy." Mauga said that she "felt inspired to help" after seeing the thoughtful gesture, and wanted to help those who were homeless and struggling in their community "in some small way". The post racked up thousands of likes and comments from people impressed by the "great initiative". "What a great idea! We need more like this. So many people are struggling, bravo," one wrote. "Well done folks... nice there are caring people around," another commented "What an amazing shop for even doing this," a third commented. Images: Manoosh & Co

Domestic Travel

Finding joy at age 100: Talking to centenarians about living their best life at any age

<a href="https://theconversation.com/profiles/heather-joyce-nelson-1440914">Heather Joyce Nelson</a>, <a href="https://theconversation.com/institutions/university-of-regina-3498">University of Regina</a>; <a href="https://theconversation.com/profiles/beverlee-ziefflie-1445320">Beverlee Ziefflie</a>, <a href="https://theconversation.com/institutions/saskatchewan-polytechnic-5681">Saskatchewan Polytechnic</a>, and <a href="https://theconversation.com/profiles/paula-mayer-1445321">Paula Mayer</a>, <a href="https://theconversation.com/institutions/saskatchewan-polytechnic-5681">Saskatchewan Polytechnic</a> Aging is seen as a period of loss, and there are unhelpful <a href="https://www.nia.nih.gov/health/10-myths-about-aging">myths about older adults</a>. Myths lead to treatable conditions being considered normal parts of aging, including cognitive decline, dementia, depression and loneliness. Some even consider exercise dangerous in older adults. At the same time, mainstream media promotes the message that <a href="https://doi.org/10.4236/jss.2017.58015">being young is central to a person’s value</a>. These ideas lead to ageism and older adults being seen as lesser. After spending time with six female centenarians in assisted living facilities, our research team — which included four nursing researchers and a documentary filmmaker — learned there is plenty still worth living for. Centenarians are a small but growing segment of the population with <a href="https://www150.statcan.gc.ca/n1/en/daily-quotidien/220928/dq220928c-eng.pdf?st=LrkfjZE_">13,844 centenarians in Canada</a>, and our findings debunk myths about the experience of aging. We asked the centenarians questions about what brings them joy and how they plan for the future because we wanted to learn how the very elderly plan for and find ways to live their best lives. The results of this study were <a href="https://vimeo.com/showcase/looking-forward-at-100">turned into a 32-minute documentary</a> that captures participants’ long and interesting lives and offers insight into continued meaning experienced by centenarians in their daily lives. Three of the centenarians died shortly after the interviews took place. <h2>Long and interesting lives</h2> The participants were born between the years 1919 and 1922. They were children during the Great Depression and young adults during the Second World War. One of the women helped build bullet casings and worked on the <a href="https://www.britannica.com/technology/Lancaster-airplane">Lancaster bomber</a>. Another woman helped her husband protect the blueprints of the ill-fated <a href="https://www.thecanadianencyclopedia.ca/en/article/avro-arrow">Avro Arrow aircraft</a> when he brought them home from work. Two women lost their husbands when their children were small and had to go to work to support their families. They all experienced love and adventure. Our team was fascinated by their stories and wanted to further explore what their lives look like today. Betty, 101, saw happiness as a choice. “I don’t know what’s really to complain about. I went through life staying happy,” she said. <h2>Joy and challenges</h2> This study used a research method called <a href="https://www.scribd.com/doc/151684840/Braun-Clarke-2006-Using-Thematic-Analysis">thematic analysis</a> to find four themes: Finding Joy, Act your Age, Looking Forward and Putting Challenges into Perspective. The centenarians found joy each day and enjoyed the little things such as activities, visits and treats. Betty enjoyed cheating at solitaire and Jean, 100, played the piano. Clementina, 101, had fun gambling and Joyce, 100, continued to write stories and watch her grandchildren in music concerts. Family was central to their lives and they enjoyed spending time with their children, grandchildren and great-grandchildren. Two of the women stated that raising their children was the biggest accomplishment in their lives. The centenarians also found great joy in reminiscing about their interesting lives. However, one of the challenges was that there was no one left alive who had the same shared experiences. <h2>Limitations</h2> The centenarians were constrained by the limitations of society, their bodies and their self-perceptions. “You have to act your age,” said Clementina. She physically described this phenomenon by clasping her hands together in her lap and sitting still. Some participants found life to be boring at 100 compared to their lives as younger adults. They had limited opportunities to do what they would like. “We had homes,” said Joyce, 100, describing how they had known better lives, which made it hard to accept the constraints of their current existence. In spite of these feelings, many of the participants continued to be busy and live life fully despite limitations. Jean, despite needing a wheelchair for mobility, continues to do people’s taxes for a volunteer organization, plays piano for church services and leads choirs within her facility. “I am constantly rebelling against my situation physically,” she said. The other women in this study also continued to challenge norms of what their age and disabilities meant. Joyce writes and submits short stories for publication, and has a poem in the war archives in Ottawa. Assisted living facilities often prioritize resident safety, but this can come at a cost to personal freedom. Some residents only leave their facility accompanied by a facility employee or a family member. Clementina rebelled against this restriction and at the age of 97, snuck out of her assisted living facility in a cab to go to the casino, pretending that she was going to meet her son. All of the participants put their life challenges into perspective. They all had lost spouses, friends and some had lost their children. “I was broken,” Clementina said about losing her husband. Christine, 102, was asked how she managed after losing her husband when her children were still small. “I am still here,” she said. <h2>The future</h2> Most of the centenarians had few plans for themselves for the future and were more interested in leading their day-to-day lives. Betty jokingly described the inevitability of her death and that she was “looking for the bucket.” Most described being prepared to die except for Jean, who laughed and said she didn’t have time to die. “I have too many plans.” The centenarians looked to the future of their families and the larger community and entrusted the next generation to make good choices. Participants in this study had long and interesting lives and continued to find meaning each day. This study supports the idea that older adults continue to lead engaging lives and that we need to support older adults to live their best lives at any age. This article was also co-authored by journalist and filmmaker Kelly-Anne Riess and retired nursing instructor Susan Page.<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/206852/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/heather-joyce-nelson-1440914">Heather Joyce Nelson</a>, Assistant Professor of Nursing, <a href="https://theconversation.com/institutions/university-of-regina-3498">University of Regina</a>; <a href="https://theconversation.com/profiles/beverlee-ziefflie-1445320">Beverlee Ziefflie</a>, Instructor, Nursing, <a href="https://theconversation.com/institutions/saskatchewan-polytechnic-5681">Saskatchewan Polytechnic</a>, and <a href="https://theconversation.com/profiles/paula-mayer-1445321">Paula Mayer</a>, Associate Research Scientist, Nursing, <a href="https://theconversation.com/institutions/saskatchewan-polytechnic-5681">Saskatchewan Polytechnic</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/finding-joy-at-age-100-talking-to-centenarians-about-living-their-best-life-at-any-age-206852">original article</a>.

Caring

Real estate agency slammed for "greedy" rental increase

Real estate agency Nelson Alexander has come under fire after increasing the weekly rent to one of their vacant properties on the day of the viewing. The property, located in the inner suburbs of Melbourne, had a scheduled viewing on Thursday and many hopeful tenants were keen to check it out. Unfortunately, their interest came at a cost, as the agency sent out a text just hours beforehand saying that they were increasing the weekly rent from $600 to $650 due to "overwhelming" demand. Journalist Jacqueline Felgate shared the text on social media, and many branded the agency's move as "greedy" and "disgraceful" and even accused them of perpetuating the rental crisis. The exact location of the property and the number of bedrooms it has is unknown, and after receiving all the backlash, the ad has since been pulled. The real estate agency also apologised and said that they "do not solicit or encourage any form of rental bidding". "Whilst the current issue at hand is not a breach of legislation, it fell short of our commitment to fair and transparent practices," the statement read. "We are deeply aware of the moral and social responsibility we have to our community during these challenging times." They also added that they are currently reviewing their processes to "ensure this doesn't ever happen again". It is unclear whether the property has been put back on the market and for what price. <em style="box-sizing: inherit; margin: 0px; padding: 0px; border: 0px; font-size: 16px; vertical-align: baseline; color: #323338; font-family: Figtree, Roboto, 'Noto Sans Hebrew', 'Noto Kufi Arabic', 'Noto Sans JP', sans-serif; background-color: #ffffff; outline: none !important;">Images: Instagram

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

Coles shopper admits to stealing to feed her family amid cost of living crisis

A woman has made a desperate plea to Prime Minister Anthony Albanese after overhearing a teary Coles shopper admit to shoplifting to feed her family. The woman was shopping in her local Coles supermarket when she overheard another shopper confess the desperate act to her friend, as the cost of living crisis continues to impact struggling Aussies. Australia’s cost of living crisis is continuing to see millions struggle with soaring interest rates and rent prices, high energy bills and rising supermarket costs, with many being forced to take drastic measures to survive. Sharing on Facebook, the woman said she was feeling “let down” and “hoodwinked” by the Albanese government after listening to the Coles customer’s heartbreaking story. “Anthony Albanese, I am so deeply saddened to hear someone shopping at Coles admit to her friend in tears that sometimes she now steals food because she simply can’t put food on the table any other way,” she wrote. “Of course there is food relief et al (but those services are also at breaking point). It’s disheartening to witness firsthand the desperation that leads someone to resort to theft just to put food on the table." “While I have you, I am feeling let down and somewhat hoodwinked by you. Your sentiment around truly understanding hardship because of your upbringing seems to have been just talk." “What I heard today made me realise that not enough is being done that was promised to make a positive impact on the lives of those struggling with adversity.” Many commented on the post saying not enough was being done to help battling Aussies, and urging the government to do more. “The line at ReachOut (food pantry) was around the corner and down the street this afternoon,” one said. Another added, “Food costs are beyond ridiculous right now. I fear that the horse has bolted and once it’s out ... it’s not coming back for pats. “And sorry to say but Albo is just another politician. Hope he sees this and listens but I’m not holding my breath. Sad state of affairs.” Image credits: Shutterstock

Money & Banking

Kochie's brutal message to Baby Boomers

David Koch has shared his brutal thoughts on the housing crisis and rising interest rates, claiming millennials have been dealt the "short end of the stick", while boomers have been spared. The former Sunrise host, who is now the Economic Director at Compare the Market, said young borrowers are copping the brunt of rising interest rates and soaring inflations. “If you bought your home in early 2022 under the pretence that interest rates would stay low for longer, you’ve now been lumped with the short end of the stick,” Mr Koch said. He went on to say young people had difficulty generating any decent savings due to record rental prices and cost-of-living, and those that can scrape together a deposit on a home now face onerous interest charges. Recent data from Compare the Market found homeowners who bought their homes at the peak of the market in early 2022 were far worse off compared to those who bought three years earlier. Those who also bought property before the Covid lockdown have also benefited from a rise in their equity, as property prices have significantly increased over the past four years. Kochie said the repayment hike as a result of rising interest rates was a "tough pill" for young Aussies who had no time to accrue a strong savings buffer. Given these factors, Kochie said many Aussie baby boomers have been spared the pain of rising interest rates. "Meanwhile, a lot of mature Australians have missed this pain altogether after selling their properties at the peak and having reaped the benefits over more equity for years," he said. "A lot of mature Australians have been shielded from the rate rises, and it's already widely believed that their spending drove inflation." A recent report from CommBank iQ found that baby boomers spending on luxuries appears to be further fuelling Australia's inflation crisis as millennials are forced to cut back on essentials. This goes a long way to explaining why the current cycle of interest rate rises are not dampening inflation as expected, as the new big spenders are older people who own properties outright and are therefore unaffected by rate rises. Boomers are are going on holidays and dining out more often, while millennials, battling higher rents and mortgage repayments, rare being forced to reduce their spending to cope with the worst cost of living crisis in a generation. Koch said, "It's time policy-makers should be asking: how could the pressure be more evenly spread?" Aussie baby boomers have long claimed that they had to make the same sacrifices when they were buying their first homes, given the home loan rate in 1989 to 1990 was at 17 per cent, compared to today's six per cent variable rates. However, Kochie debunked this claim, saying current house prices are far higher when measured against average salaries, and that level was only accelerating, far outpacing wages growth. "Back in the 80s, the average cost of an Aussie house was $70,000, now it's $700,000 - ten times more expensive," he said. The financial guru explained how in the 1980s the average salary was $19,000, compared with $94,000 in 2023. "So in the 80s, the price of a house was four times the average person's income," he said. "In 2023, it's eight times the average Aussie salary." Kochie urged mortgage holders hit with higher repayments to call their banks and explore whether refinancing to a lower-rate loan is possible. "We urge people in mortgage pain to reduce the interest on their repayments as much as possible by shopping around for a better deal," Koch said. "When every dollar counts, 2024 should be the year of the new lender." Image credits: Compare the Market

Money & Banking

The cost-of-living crisis is hitting hard. Here are 3 ways to soften the blow

<a href="https://theconversation.com/profiles/ama-samarasinghe-1386754">Ama Samarasinghe</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> As our wallets feel the strain from the cost-of-living crisis, many of us are looking for ways to soften the blow. While everyone’s circumstances are different, and ideally you should seek help from an accredited financial adviser, there are some tried and true ways to work out where all your money is going and why. Here are three practical tips to reduce the impact of the cost-of-living increases, and stretch every hard-earned dollar. <h2>1. Hunt for a better loan rate</h2> For many households, the biggest hit comes from the mortgage, so start there. Even a modest 0.5% reduction can translate into substantial savings. Call your bank today and just ask for rate reduction. If the answer is no, consider shopping around for a different lender. Your loyalty to your current lender might be costing you more than you realise. Banks often reserve their most attractive rates for new customers, leaving long-time customers paying higher-than-necessary interest. Even if your bank does agree to a rate reduction, explore the market anyway. There is a range of free rate-comparison websites, or you can directly check individual bank websites. If you find a lender offering a better rate, you might consider calling the competing bank to ask about switching your mortgage to them. Or, you might seek assistance from a mortgage broker, who can guide you through the process of securing a better deal (just remember they often take <a href="https://www.canstar.com.au/home-loans/mortgage-brokers-fees/">commissions</a> from lenders). Tread carefully and factor in any exit fees or charges from your current lender. Refinancing isn’t without risk, so a thorough cost-benefit analysis is important before making the switch. Also consider the value of features such as <a href="https://moneysmart.gov.au/glossary/offset-account">offset accounts</a>. An offset account, linked to your home loan, allows you to deposit money such as your salary and savings. This money is then “<a href="https://www.rba.gov.au/publications/smp/2015/aug/box-e-offset-account-balances-and-housing-credit.html">offset</a>” against your home loan balance. That means you only pay interest on the outstanding amount (the loan minus whatever salary and savings you put in the offset). This can accelerate loan repayment and reduce interest costs. Keep in mind that offset accounts are typically only available with variable interest rates. Offset accounts work best if you have considerable savings to put into the offset account that outweigh the additional fees and charges attached to offset accounts. <h2>2. Trim your expenses and uncover hidden savings</h2> It’s time to become a budget detective, identifying and cutting down on non-essential costs that might be quietly draining your wallet. Take a close look at those recurring memberships and subscriptions. How often do you actually use that gym membership or streaming service? Many banking apps have handy spending tracking features to help you set realistic budget goals for each spending category. According to the <a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/selected-living-cost-indexes-australia/latest-release">Australian Bureau of Statistics</a>, insurance and financial services are among the top risers in living cost indexes (which measure the price change of goods and services and its effect on living expenses). So search comparison websites for better insurance premiums. Australia’s insurance market is competitive, and you can often get discounts by bundling your insurances together (for example, having your home and contents insurance with the same company that also provides your car insurance). However, don’t shy away from exploring different insurers for potentially better value. Don’t overlook energy costs, either. Use comparison websites like <a href="https://www.energymadeeasy.gov.au/">Energy Made Easy</a> (or, if you’re in Victoria, the <a href="https://compare.energy.vic.gov.au/">Victorian Energy Compare</a> site) to find more cost-effective energy plans. Stay updated on rebates and concessions via the federal government’s <a href="https://energy.gov.au">Energy.gov.au</a> site, to ensure you’re maximising your entitlements. Use less energy, if you can. Small adjustments can make a significant dent in your bills. And for fuel costs, find websites and applications that allow you to lock in the lowest prices in your area. If you’re renting, ask yourself whether moving to a cheaper suburb or a cheaper home is an option. Many people use cashback sites like Cashrewards and ShopBack to accrue cashback incentives. <h2>3. Maximise returns and tackle high-interest debts</h2> While rising interest rates might make your mortgage climb, it also means high interest on your savings. Consider exploring high-yield savings accounts; with current interest rates, you could potentially earn around 5.5% with a bank savings account. Many people set up recurring transfers to help them stick to savings goals, increase deposits and maximise interest earnings. For those wrestling with high-interest debts such as credit cards or personal loans, prioritise settling outstanding balances to minimise interest payments. It can be hard to escape the long-term repercussions (such as a <a href="https://theconversation.com/payday-lending-trap-requires-a-credit-supply-rethink-39311">poor credit score</a>) of defaulting on <a href="https://www.sydney.edu.au/news-opinion/news/2022/09/21/researchers-uncover--pecking-order-of-defaults--as-belts-tighten.html">high-interest loans</a>. And approach buy-now, pay-later services with extreme caution. They may seem tempting but the <a href="https://onlinelibrary.wiley.com/doi/10.1111/acfi.13100">debts can quickly add up</a>. And if you need more help, contact the government’s free National Debt Helpline on 1800 007 007.<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/218118/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ama-samarasinghe-1386754">Ama Samarasinghe</a>, Lecturer, Financial Planning and Tax, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT 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/the-cost-of-living-crisis-is-hitting-hard-here-are-3-ways-to-soften-the-blow-218118">original article</a>.

Money & Banking

Women forced to do shocking act for $100 rent reduction

Two women in Queensland have claimed that they were forced to use a makeshift "temporary shower" outdoors, while renovations are being carried out in the property's only bathroom. The pair, who were expecting a porta-loo style shower to use during the four-to-six weeks renovation, were horrified when they found out the makeshift shower was just a blue tarpaulin attached to the side of the house. Electrical cords and plumbing pipes can be spotted hanging down in front of the open cubicle, and has no curtain for privacy or a lock, raising questions for their privacy and safety. To make matters worse, the women revealed on Facebook that they initially tried negotiating for a rental discount of $200 per week during the renovations, but their landlord said "no way" offering only a $50 discount, "then $100 as final offer". Dr Chris Martin, Senior Research Fellow in the University of NSW's City Futures Research Centre, slammed the landlord for "a bunch of possible breaches". "There is a big question about whether the temporary arrangement meets the minimum standards that apply to rented premises in Queensland under the Residential Tenancies and Rooming Accommodation Act," he told Yahoo News. "Those minimum standards include that the bathroom and toilet facilities must provide privacy and that a premise must be weatherproof and structurally sound, and there's a standard about security," he added. He also claimed that "there's a bunch of possible breaches of the minimum standards of this temporary arrangement," as intruders could also potentially get in. The Senior Research Fellow also slammed the $100-a-week reduction in rent, calling it "grossly insufficient". "What a professional landlord who takes a bit of pride in themselves as a reputable housing provider would have done, is hire one of those portable bathrooms that come on a little trailer with a little heater and hook it up, and also do a rent reduction for the hassle of having to trot out to the trailer to shower," he said. "That would be the appropriate response." He encouraged the tenants to speak to Tenants Queensland or a local tenants advice service about what to do, adding that they could say that the current temporary arrangements could be deemed "unlivable or uninhabitable". "I suggest they should also be telling the landlord that this arrangement may place the landlord in a further breach of the agreement and for the liability for an even bigger rent reduction and the prospect of compensation if they don't do this better," Dr Martin told the publication. Images: Facebook

Money & Banking

"Is this legal?" Residents outraged over demanding aircon letter

Residents in a Sydney unit complex were left outraged after they were asked to turn off their air conditioners overnight. A letter placed inside the elevator of the 18-floor apartment building states that the utility can only be used “during the following times." “Weekdays 7am to 10pm, weekends and public holidays 8am to 10pm,” the letter said. “At other times than this, please turn off your air conditioners, especially after 10:00 PM every day.” The letter, which was posted on Facebook, received a lot of backlash from other residents and renters One resident who lived in the 1960s building for a decade said it was the first time she had heard of such a request. “Can anyone please let me know if this is legal? Can they actually force people to not run their own AC units?” the person asked. Many other renters expressed their annoyance, with one joking that they'd have to pry the aircon off their dead hands. “Anyone else feel like we are in a Nanny State?” one wrote. “To be honest with 30°c nights they can pry my aircon from my cold dead heads,” another quipped. One Facebook user also commented that building developers might be to blame. “I think the strata builders got a bit cheap and installed less expensive aircons and therefore they are too loud. Bet if they had decent ones, the tenants wouldn’t have to suffer hot nights because of the noise,” they said. A few others commented that it might not just be a request from strata, but local councils that are enforcing new noise pollution restrictions which affect aircons. City of Sydney, Inner West, and Penrith councils, are a few of the local governments which require the airconditioners to be turned off 10pm to 7am during the week and until 8am on the weekend, the same time requested on the laters. The local governments also recommend that residents and developers purchase high-quality airconditioners that won't cause noise pollution or disturb neighbours. “Even if you’ve been told that it complies with noise requirements, it doesn’t mean it’s going to suit every location all the time,” the Inner West Council website read. The letter comes as Sydney battles its second heatwave in the span of a week. Images: Facebook/ Getty

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