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Pop star discovered tragically dead at 33 in the wake of scandal

South Korean pop star Choi Sung-bong, who was caught running a notorious cancer scam has passed away at age 33. The Korean Times reported that Choi was found by police at his Seoul home on the morning of June 20. He was pronounced dead soon after. Authorities have reportedly ruled the singer’s cause of death as a suicide. According to the Hollywood Reporter, after years of online fame stemming from a 2011 performance on Korea’s Got Talent, Choi confessed he had tricked his fans into donating money to him after claiming he needed funds for cancer treatment. Choi had claimed he had been battling multiple forms of cancer to obtain the donations, however, his claims were later exposed as a hoax. He also claimed he had returned all donated funds from a false fundraiser. Choi later issued a grovelling apology and vowed to return all of the donations sent by his fans. One day before his alleged suicide, Choi posted a note on his YouTube channel apologising for “foolish mistakes” in the past, according to The Mirror. The chilling letter said he needed to "repay for his sins with his life” and showed the address of where his body would be after taking his life. “My body can be found at [his home location]. I don’t know how to write a final message, so I will just write it in my own style. Even though my breath may have stopped now, I have no regrets about the brilliant journey of my life. I have lived my life to the fullest and made efforts to find happiness every day. Age thirty-four," (as per Korean age system), he said. Choi was best known for competing in Korea’s Got Talent in 2011, coming in at second place. <a href="https://www.youtube.com/watch?v=vIy99OT2BAQ" target="_blank" rel="noopener"><iframe src="https://www.youtube.com/embed/vIy99OT2BAQ"></iframe></a> A clip of him singing a cover of Nella Fantasia by Ennio Morricone quickly went viral online, thrusting him into the spotlight – with singing sensation Justin Bieber even acknowledging his talent. Image credit: YouTube

Caring

Pizza chain's delightfully devilish scheme lets you pay when you die

A delightfully devilish pizza chain is taking the 'buy now, pay later' scheme to the next level, giving customers the chance to pay for their pizza when they die. HELL Pizza is inviting pizza fans to apply for the trial scheme, which involves amending their wills to have their total cost included. The chain has one store in Brisbane, with the rest of its stores located around New Zealand, with customers from both countries able to apply for the scheme, which involves no late fees or penalties. The restaurant will select 666 applicants from each country, who will be invited to sign a real amendment to their wills allowing the cost of their pizza to be collected upon death. According to HELL Pizza CEO Ben Cumming, pizza is one of the simple joys of life, and AfterLife Pay means diners can get their fix without having to dip into the bank account immediately. The scheme emerged after the business was approached by popular 'buy now, pay later' providers who wanted HELL Pizza to offer the service to its customers. The pizza chain's unique AfterLife Pay came as a direct response to this proposal, as a statement against “schemes trapping a growing number of Aussies in spirals of debt”, Cumming said. “We’re seeing a growing number of people using the schemes to buy essential items like food, and we think it’s taking it a step too far when you’ve got quick service restaurants like ours being asked to offer BNPL for what is considered a treat,” he said. “Especially when you consider people are falling behind in their payments and 10.5 percent of loans are in arrears." “AfterLife Pay is a light-hearted campaign that reinforces HELL’s stance on BNPL schemes - you can have your pizza and eat it too without any pesky late fees or penalties.” Applicants can apply for the scheme <a href="https://afterlife.hellpizza.au/" target="_blank" rel="noopener">online</a>, with the chain's restaurant assuring that you will you won't pay anything for your order until "you're resting six feet under". Image credits: HELL Pizza

Food & Wine

Get-rich-quick schemes, pyramids and ponzis: five signs you’re being scammed

<a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> and <a href="https://theconversation.com/profiles/abdul-latif-alhassan-1390159">Abdul Latif Alhassan</a>, <a href="https://theconversation.com/institutions/university-of-cape-town-691">University of Cape Town</a> Consumers are under a lot of financial strain. The <a href="https://www.weforum.org/agenda/2022/09/cost-of-living-crisis-global-impact/">World Economic Forum</a> reports that the cost-of-living crisis is affecting people across the globe. With food and fuel prices rising, it’s becoming increasingly difficult to keep financially afloat. On top of that, salaries <a href="https://www.wsj.com/articles/workers-pay-globally-hasnt-kept-up-with-inflation-e6df92d">aren’t keeping up with inflation</a>, making it more difficult to save and build wealth. It’s during such times of economic difficulty and uncertainty that fraudsters lure unsuspecting consumers into “<a href="https://www.sabric.co.za/">get-rich-quick</a>” schemes, offering <a href="https://www.sabric.co.za/stay-safe/ponzi-pyramid-schemes/">an avenue to make easy money</a> by investing in a “lucrative” financial opportunity. Nothing beats the prospect of making easy money, and every now and again there seems to be a “get-rich-quick” scheme circulating on WhatsApp or on social media that seems legitimate. But it’s not. Our research interests centre on financial systems in emerging economies, and we advocate for financial inclusion and empowering marginalised communities through financial literacy and financial planning. We use our academic platform to share our expertise on finance, including common financial traps people should steer clear of. “Get-rich-quick” schemes are one such trap. They’re also sometimes called ponzi or pyramid schemes. The schemes are a form of <a href="https://www.lawinsider.com/dictionary/financial-fraud">financial fraud</a>. The people running them take money through deception: the misrepresentation of information and identity. They promise financial benefits that don’t exist. You should avoid them because, more often than not, they are bogus and fraudulent business ventures. There have been some massive fraud schemes over the past 30 years. In the early 1990s, <a href="https://www.independent.co.uk/news/world/africa/mmm-global-russian-ponzi-scheme-from-1990s-reborn-and-now-spreading-like-wildfire-in-africa-a7333366.html">MMM Global</a> - one of the world’s largest and most notorious ponzi schemes - defrauded up to 40 million people, who lost an estimated $10 billion. Ponzi schemes have since resurfaced in different forms in <a href="https://www.iol.co.za/weekend-argus/news/ponzi-scheme-investigated-as-some-victims-lost-as-much-as-r200-000-c3c3633c-2abb-4dd4-b668-a5ea608deb41">South Africa</a>, <a href="https://guardian.ng/business-services/nigerians-lose-over-n911b-to-ponzi-schemes-related-fraud-in-23-years/">Nigeria</a>, <a href="https://www.voazimbabwe.com/a/zimbabwe-money-pyramids-ponzi-schemes/6305100.html">Zimbabwe</a>, <a href="https://allafrica.com/stories/202105170964.html">Kenya</a>, <a href="https://doi.org/10.1108/JFC-09-2020-0177">Ghana</a> and several other African countries. There are five tell-tale signs of a “get-rich-quick” scheme. Watch out for them. <h2>The five tell-tale signs</h2> Firstly, they offer exaggerated and above-market returns within a short period of time, with the promise of little to no risk. There are two golden rules when it comes to investing. The first is that it takes time to make money. Amassing a small fortune within a short space of time should raise questions about the scheme. The second rule is: the higher the risk, the higher the return. In other words, no investment is risk free or can guarantee significant returns. There is always some risk involved. An investment that promises substantial returns tends to be quite risky, which repels most people with a low appetite for risk. Secondly, new members are constantly recruited to join the scheme. Typically, such schemes are sustained by relying on the investments of new members to pay existing members. Once the number of existing members exceeds new members, the scheme goes “belly-up”. At best you lose out on the returns you were promised. At worst you lose all the money you’ve invested. When the scheme collapses, it is almost impossible to recover the money you’ve lost because you’ve technically given it to a stranger (remember, the definition of financial fraud encompasses the misrepresentation of identity). Thirdly, there is urgency to join the scheme and no clarity on how the scheme works. This is a classic characteristic of a “get-rich-quick” scheme. There is usually no clear answer about the nature of the scheme, what it invests in, how it generates its returns or the credentials of the organisation. Legitimate investments are transparent and can provide investors with all the information they need to help them decide whether to invest. Unsurprisingly, a proper check of “get-rich-quick” schemes will unmask their fraudulent nature. This is why there’s always the urgency and coercion to make an immediate financial commitment under the guise of missing a once-in-a-lifetime opportunity to get rich. Fourthly, the scheme is not registered with or regulated by any recognised authority. Regulatory authorities are important because they monitor the conduct of financial service providers and protect consumers by keeping their best interests in mind. The protection provided by financial regulators also instils confidence in financial systems. “Get-rich-quick” schemes are not registered and operate outside the framework of regulatory bodies. This makes investors more vulnerable to loss and makes it more difficult to seek legal recourse when the loss occurs. Legitimate investments in South Africa are offered by authorised financial service providers and regulated by the <a href="https://www.fsca.co.za/Pages/Default.aspx">Financial Sector Conduct Authority</a>. You can search for any authorised financial service provider on the authority’s <a href="https://www.fsca.co.za/Fais/Search_FSP.htm">website</a>. Fifthly, they use the testimonies from existing members who’ve earned big bucks to promote the scheme. At the initial stages, the scheme tends to pay out to those who have invested early, and these members are encouraged to share the news of their wealth (which travels fast and far) to promote the scheme. But this is a tactic used to create the impression that you too can earn returns in the double digits. These schemes are both unsustainable and unethical as one person gets wealthy through someone else being deceived. <h2>Too good to be true</h2> It’s worth repeating that if it sounds too good to be true, then it probably is. Wealth comes from a sound investment strategy and decisions made over time. Any promise to “get rich quick” should be treated with the cynicism it deserves. It will ultimately reveal its fraudulent nature. Recognising the signs of “get-rich-quick” schemes can save you from unnecessary financial distress. It’s always a good idea to do your own investigation before committing your finances into any investment. You can find more information on the various types of scams through the <a href="https://www.sabric.co.za/">South African Banking Risk Information Centre</a>’s website and report them to the <a href="https://www.safps.org.za/Home/Contact">South African Fraud Prevention Service</a>.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/205798/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, Assistant Professor in Finance and Financial Planning, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> and <a href="https://theconversation.com/profiles/abdul-latif-alhassan-1390159">Abdul Latif Alhassan</a>, Associate Professor in Development Finance & Insurance, <a href="https://theconversation.com/institutions/university-of-cape-town-691">University of Cape Town</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/get-rich-quick-schemes-pyramids-and-ponzis-five-signs-youre-being-scammed-205798">original article</a>.

Money & Banking

Super has become a taxpayer-funded inheritance scheme for the rich. Here’s how to fix it – and save billions

Australia’s A$3.3 trillion superannuation system is supposed to boost people’s retirement incomes. The government says as much in its <a href="https://treasury.gov.au/sites/default/files/2023-02/c2023-361383.pdf">proposed leglislated objective</a> for superannuation. The system is supported by billions of dollars of tax breaks each year, ostensibly to that end. But there’s just one problem – increasingly, much of what is saved is never spent. Our new report, <a href="https://grattan.edu.au/report/super-savings-practical-policies-for-fairer-superannuation-and-a-stronger-budget">Super savings: Practical policies for fairer superannuation and a stronger budget</a>, points out that without an overhaul, super tax breaks are set to do little more than boost the inheritances of Australians with well-off parents. Super contributions and super earnings are both taxed more lightly than other income. These tax breaks cost the budget about $45 billion (2% of Australia’s gross domestic product, or GDP) each year. Treasury predicts that figure will hit 3% of GDP by 2060, and that the cost of super tax breaks will overtake the cost of the age pension by as soon as 2036. Super tax breaks are also unfair: about two-thirds go to the top 20% of earners. This means the tax breaks provide the biggest boost to the super accounts of high earners, who will almost all have a comfortable retirement regardless, and who tend to save the same regardless of the tax rate imposed. The wealthiest 10% of Australians get a bigger boost to their retirement savings from super tax breaks than poorer Australians get from the age pension. But much of what is saved for retirement never actually gets spent in retirement. Earlier research by <a href="https://grattan.edu.au/news/balancing-act/">Grattan Institute</a> and the <a href="https://treasury.gov.au/sites/default/files/2021-02/p2020-100554-udcomplete-report.pdf">2020 Retirement Income Review</a> found that, for a variety of reasons, spending falls substantially during retirement. Retirees often end up leaving much of their nest egg untouched, bequeathing it to their children. This means billions of dollars in super tax breaks simply end up boosting the inheritances received by the children of well-off parents. It makes super a taxpayer-funded inheritance scheme. This problem is set to get worse. With the rate of compulsory superannuation legislated to rise from 10.5% of wages to 12% by 2025, future generations of retirees are set to retire with even larger nest eggs that they will never spend. Treasury projects that by 2059, one in every three dollars paid out of the super system will be a bequest, up from one in every five today. Big inheritances boost the jackpot from the birth lottery. They help richer children get richer. Among the Australians who received an inheritance over the past decade, the wealthiest fifth received on average <a href="https://grattan.edu.au/news/the-great-australian-nightmare/">three times</a> as much as the poorest fifth. To help reverse this, the government needs to rein in the super tax breaks. <h2>How to make super fairer</h2> The government’s policy, <a href="https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/superannuation-tax-breaks">announced in February</a>, of taxing the earnings on balances bigger than $3 million at 30%, instead of 15%, will help. But the threshold ought to be lowered to $2 million. Balances between $2 million and $3 million are very unlikely to be spent in retirement, so winding back tax breaks on earnings on balances bigger than $2 million would further wind back taxpayer-funded bequests. And there’s more. Currently, many wealthier Australians receive a larger tax break per dollar contributed to super than many low income earners. Yet low earners have more to be compensated for. Putting money into their super cuts their age pension in retirement, and they live shorter lives, meaning less time to enjoy their super in retirement. The pre-tax contributions of people earning more than $220,000 a year should be taxed at 35%, instead of the 30% charged to those earning more than $250,000 currently. That would still offer a 10% tax break on super contributions for high earners (given the top marginal rate of 45%) and at least a 15% break on the contributions of low and middle earners. And the annual pre-tax contributions cap should be lowered from $27,500 to $20,000. Contributions above this level tend to be made by people close to retirement with already-high balances. <h2>Tax earnings in retirement the same as while working</h2> On the earnings side, the tax-free earnings enjoyed by retirees on their first $1.7 million ($1.9 million from 1 July this year) of their super should go. Superannuation earnings in retirement should be taxed at 15%, the same as superannuation earnings before retirement. This would save the budget at least $5.3 billion a year, and much more in future, and make taxing super more simple. More than 70% of this revenue would come from the top 20% of retirees. The top 10% would pay an extra $7,000 to $7,500 a year on average, whereas the poorest half would no more than $200 more each. Both sides of politics say they agree that super shouldn’t be a taxpayer-funded inheritance scheme. But there’s a long way to go before that vision is reality. Image credits: Getty Images This article originally appeared on <a href="https://theconversation.com/super-has-become-a-taxpayer-funded-inheritance-scheme-for-the-rich-heres-how-to-fix-it-and-save-billions-202948" target="_blank" rel="noopener">The Conversation</a>.

Retirement Income

Small detail in Coles BYO container scheme sparks confusion

A new sustainability scheme has left shoppers at Coles scratching their heads due to one seemingly counterintuitive detail. The retailer’s Together to Zero campaign has seen a handful of stores begin trialling a “bring your own packaging” scheme allowing customers to use reusable containers for items purchased from the deli counter. However, many are puzzled by one requirement of the scheme - the containers must be plastic. A sign displayed in a trial store in Blackwood, South Australia, which asked shoppers to “help reduce packaging” by bringing their own containers for deli workers to fill was shared on Facebook earlier this week by a shopper encouraging others to take part in the scheme. The sign also included requirements that the containers were “clean and intact”, had a “reusable lid”, and weren’t made of “glass or ceramic”. With the banning of single-use bags and plastic tableware, some questioned the sustainability project’s reliance on plastic over more sustainable options. “Shame there’s no glass containers allowed, but still a good move,” one person commented. “I only have glass so it’s completely useless for me,” another shared. “More crap to take to the store,” a third pointed out. Others shared concerns over the condition of containers that people would bring in, as well as the risk of food poisoning. “As much as I love the reusable option. I have fears about this. People will be bringing in manky containers that have sat in their cars for two days to refill,” one concerned person wrote. “How does this cover them for food poisoning?” another asked. Despite the concerns, some were more optimistic about the trial, with one person describing it as a “good start” and another sharing that they would “make a special trip or two” to take part. The trial of BYO containers will be taking place across several South Australian Coles supermarkets, including those in Burnside, Blackwood, Unley, Bridgewater, Mount Barker and Murray Bridge, as well as a store in Kew, Victoria. During the trial, the BYO containers aren’t allowed to be used for deli salads, frozen prawns, barbecue items, hot food, deli express products, or self-serve cheese or platters. A Coles spokesperson said the company was closely monitoring feedback of the trial, telling <a href="https://www.news.com.au/finance/business/retail/coles-byo-containers-program-lashed-over-one-detail-with-customers-confused-over-rules/news-story/69032894b46e7174e79e203384850cd0" target="_blank" rel="noopener">news.com.au</a> that it will inform whether the scheme is rolled out to additional stores across the country. “As part of our Together to Zero Waste ambition, Coles is always looking for ways to reduce reliance on unnecessary single-use plastic, while giving customers sustainable options to help them complete their shop,” the spokesperson said. “We are trialling bring-your-own containers at a handful of Coles supermarket delis in South Australia, to understand how best to provide this option to customers while continuing to meet stringent food safety standards. “We will be looking closely at how our South Australian customers respond, and the feedback and insights will inform our consideration for potentially rolling this out to more stores in South Australia, or around Australia.” Image: Facebook

Food & Wine

PM launches probe into "unlawful" robodebt scheme

Anthony Albanese has shared the details of a royal commission into the Centrelink robodebt scheme, which he committed to during the election. Robodebt was rolled out by the Coalition government between 2015 and 2019, which was an automated debt recovery program that was fraught with errors. The scheme used an automated system to match data from Centrelink and the ATO to raise debts against welfare recipients for money the then-government claimed was overpaid. During the election campaign, the Prime Minister described the ordeal as a “human tragedy, wrought by (the Coalition) government." “Against all evidence, and all the outcry, the government insisted on using algorithms instead of people to pursue debt recovery against Australians who in many cases had no debt to pay,” Albanese said. The program, which was found to be unlawful in 2019, raised over $1billion in debts against 443,000 Australians. In total, $751million was wrongly collected from 381,000 people. A $1.8billion settlement between victims and the federal government was reached in 2020 after a class-action lawsuit. Despite Albanese's determination to dive into what went wrong during the scheme, the Coalition had argued there was no need for an inquiry given the settlement. Scott Morrison, who was social services minister when the unlawful scheme was conceived, has repeatedly denied he was personally responsible for the program. Image credits: Getty Images

Money & Banking

Melissa Caddick’s husband claims millions in jewels, cars, homes and assets

Melissa Caddick’s husband, Anthony Koletti, has lodged a claim indicating that he is entitled to a significant share of the multi-million dollars worth of cars, houses, artworks and jewellery left by the missing Sydney woman. After it was <a href="https://www.oversixty.com.au/finance/money-banking/melissa-caddick-s-hidden-millions" target="_blank" rel="noopener">revealed</a> that Caddick had misappropriated $25 million of investors' funds in a Ponzi scheme via her company Maliver Pty Ltd, court proceedings were begun in November 2020 by the corporate watchdog in order to return the vast amounts of swindled money to investors. These proceedings remain underway. Mr Koletti has now filed a statement in Federal Court as an interested party, claiming that he is entitled to matrimonial property including $2 million of clothes and jewellery, $7 million worth of shares, proceeds from $360,000 of cars that have been sold, as well as two homes in the multi-million dollar price range. Mr Koletti also claims entitlement to personal property that includes five valuable John Olsen paintings, a Louis Vuitton watch, a Gucci wedding dress and several more pricey items of white-gold jewellery – including a $33,960 diamond ring set by Sydney fine jewellery designer Canturi and his own $26,500 wedding band. According to court documents, Mr Koletti’s claim was based on his “financial and non-financial contributions” to the relationship since his December 2013 marriage to Caddick. Mr Koletti’s basis for the claims rest with the fact that he used up almost all of his income and assets to support Caddick and her son during their marriage, and that furthermore that since Caddick’s disappearance he has personally paid around $500 a week to care for her child. The claim went on to state that “due to the extensive media coverage relating to the Defendant’s disappearance, the time taken by legal proceedings and Mr Koletti’s grief, he has not been able to secure gainful employment in his usual trade other than casual hairdressing services and some income from <a href="https://www.oversixty.com.au/entertainment/music/melissa-caddick-s-husband-releases-album-about-her-disappearance" target="_blank" rel="noopener">his music</a>.” Mr Koletti’s court filing comes ahead of an inquest set for September, which will further probe the <a href="https://www.oversixty.com.au/finance/legal/wild-theories-over-melissa-caddick-disappearance" target="_blank" rel="noopener">mysterious disappearance</a> of Caddick. Image: Supplied

News

Actor cops 20 years for biggest Ponzi scheme in Hollywood history

Small-time actor Zachary Horwitz has admitted to operating a multimillion-dollar Ponzi scheme. He has been sentenced to 20 years in federal prison.The United States Department of Justice said in a news release that Horowitz "raised at least US$650 million [aprox. $910 million] with bogus claims that investor money would be used to acquire licensing rights to films that HBO and Netflix purportedly had agreed to distribute abroad."In October, Horowitz pleaed guilty to a United States federal securities fraud charge and admitted to running the Ponzi scheme. He was originally arrested in April 2021.He received a 20 year sentence, and must pay more than US$230 million (approx. $322 million) in restitution.Prosecutors said it was the biggest Ponzi scheme in Hollywood history.The 35-year-old actor was accused of putting some of the money in his personal accounts and using the money for purchasing a personal residence for approximately US$5.7 million (approx. $8 million) in cash, taking trips to Las Vegas and flying on chartered jets, according to a complaint filed by the United States Securities and Exchange Commission.Horwitz is better known by his stage name "Zach Avery," and has spent the past decade acting in around a dozen mostly low-budget films.Image: Getty

Legal

That reverse mortgage scheme the government is about to re-announce, how does it work?

Many Australians have never heard of the <a href="https://www.servicesaustralia.gov.au/pension-loans-scheme">Pension Loans Scheme</a>, and many more assume it’s just for pensioners, which is understandable given its name. That’s why the government is poised to rename it the Home Equity Access Scheme and make the interest rate it charges more reasonable, in the mid-year budget update on Thursday. The soon to be renamed scheme is best thought of as a <a href="https://www.investopedia.com/mortgage/reverse-mortgage/">reverse mortgage</a> where instead of paying down a home loan each month, the homeowner borrows more against the home each month, paying off what’s borrowed when the home is eventually sold. Although reverse mortgages have been provided commercially for some time, the number of providers has shrunk as large banks have <a href="https://download.asic.gov.au/media/4851420/rep-586-published-28-august-2018.pdf">left the field</a> in the face of increased scrutiny and compliance costs. The government version is misleadingly named the Pension Loans Scheme (PLS), even though it is available to all retirees with homes and not just pensioners. It was introduced by the Hawke government in <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/FlagPost/2015/February/The_Pension_Loans_Scheme">1985</a>. The maximum amount that can be made available under the scheme and the age pension combined is <a href="https://www.servicesaustralia.gov.au/how-much-you-can-get-under-pension-loans-scheme?context=22546">150% of the full pension.</a> This means a retiree who is on the pension can get extra fortnightly payments from the scheme to bring their total payment up to 150% of the full pension. If the retiree is not on the pension they can get the entire amount of 150% of the pension via the PLS. The payments stop when the loan balance reaches a <a href="https://www.servicesaustralia.gov.au/maximum-loan-amount-under-pension-loans-scheme?context=22546">ceiling</a> which climbs each year the retiree gets older and climbs with increases in the value of the home. The ceiling for a 70-year old with a home worth $1,000,000 is $308,000. The key difference between the PLS and commercial reverse mortgages is that the size of its lump sum payments is limited. Payments under the PLS have no impact on the pension, whereas commercial reverse mortgages can trigger the means test. <a href="https://images.theconversation.com/files/437703/original/file-20211215-13-kxrv2s.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/437703/original/file-20211215-13-kxrv2s.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="" /></a> Colin Zhang, Macquarie Business School As attractive as the PLS might appear, hardly any of the four million or so Australians aged 65 and over have taken it up, perhaps as few as <a href="https://newsroom.unsw.edu.au/news/business-law/budget-changes-make-pension-loans-scheme-more-attractive-senior-homeowners">5,000</a> – one in every 800. So in this year’s May budget the government announced two changes to make it more attractive. One was a “<a href="https://cdn.theconversation.com/static_files/files/1902/PLS_2021-22-budget-16_%281%29.pdf">no negative equity guarantee</a>”. Users would never be asked repay more than the value of their property, even if the property fell in value. The other was the ability to take out up to <a href="https://cdn.theconversation.com/static_files/files/1902/PLS_2021-22-budget-16_%281%29.pdf">two lump sums per year</a> totalling up to 50% of the full pension in addition to fortnightly payments. Total government payments would remain capped at 150% of the pension. <h2>New brand, same scheme</h2> That second change won’t begin until July 1, 2022 and is likely to be re-announced in Thursday’s mid-year budget update. Also announced in the budget was a decision to raise awareness of the scheme “through improved public messaging and branding” something which is also likely to be re-announced on Thursday along with the new name. The other change expected on Thursday is a lower interest rate charged on the sums borrowed. In January 2020, the rate was cut from 5.25% to 4.5% in accordance with cuts in other rates. From January next year it should reduce further to <a href="https://www.theaustralian.com.au/nation/politics/scott-morrison-opens-up-mortgage-loan-scheme-to-help-elderly-fund-their-own-retirements/news-story/9f8c56fbba899f6b76c72ce51ceb9331">3.95%</a>. <h2>Attractive, but not riskless</h2> There remain risks associated with taking advantage of the scheme. One is that if you live long enough you are likely to eventually hit the ceiling and be unable to take out any more money, suffering a loss of income. If you chose to sell your home and move to an aged care service, you need to use a big part of your sale proceedings to pay what’s owed. Other risks are that neither the interest rate nor home prices are fixed. Just as the government has cut the rate charged in line with cuts to lower general interest rates, it might well lift it when interest rates climb. And home prices can go down as well as up, meaning that, at worst, all of the value of your home (although no more) can be gobbled up in repayments.<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; text-shadow: none !important;" src="https://counter.theconversation.com/content/171671/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/colin-zhang-1234147">Colin Zhang</a>, Lecturer, Department of Actuarial Studies and Business Analytics, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a> and <a href="https://theconversation.com/profiles/ning-wang-1297929">Ning Wang</a>, Associate Research Fellow, <a href="https://theconversation.com/institutions/university-of-wollongong-711">University of Wollongong</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/that-reverse-mortgage-scheme-the-government-is-about-to-re-announce-how-does-it-work-171671">original article</a>. Image: Shutterstock

Real Estate

Calls for “life-changing” drug to be added to the PBS

Cystic Fibrosis sufferers are calling for a “life-changing” drug to be added to the Pharmaceutical Benefits Scheme (PBS) so more of the 3500 affected Australians can access the treatment. Trikafta, produced by Vertex, currently costs Aussies $300,000 a year, meaning it is out of reach for most, including Ella Sawyer’s daughter, Evie. Diagnosed with the condition six weeks after she was born, Evie is now 12 and manages her condition with various medications, supplements, and twice-daily breathing exercises that help clear her chest. She is prone to long-lasting infections, takes enzymes with every meal and has increased calorie needs. Though Trikafta is already available and reimbursed in 17 countries, the decision to recommend its listing on the PBS has been deferred while experts on the Pharmaceutical Benefits Advisory Committee engage further with Vertex. In the meantime, the drug is available free of charge to critically ill patients with no other medicinal options, subject to specific eligibility criteria and on request by their doctor. Evie isn’t one of the 200 Australians who currently qualify, so she and her family are waiting for change. “It’s really, really frustrating that if you’re born with CF [cystic fibrosis], your access to the best treatment can be limited depending on where you are in the world,” her mother Ella Sawyer said. “If Ellie were to get the flu or another infection, she could have a big loss of lung function quite quickly whilst we wait for price negotiations to go on,” she added. “It’s just very frustrating when the quality of someone’s life comes down to a price.” The lack of access to Trikafta is putting lives at risk, according to Cystic Fibrosis Australia chief executive Nettie Burke. “We talk about having one of the greatest health systems here in the world,” Ms Burke said. “I think we do, but we can’t profess that when we can’t get drugs that have been in America for two years.” Better quality of life Ms Burke said recent trials of Trikafta have shown it to be a “life-changing” treatment. “People’s lives have definitely been extended, but their quality of life has been increased dramatically as well,” Ms Burke said. “One of the wonderful things we’ve seen from people overseas, or from those on trials, is that there’s a whole lot of babies being born. “Before, that wasn’t necessarily going to be the case because people were too unwell to have a family, but we’ve seen a big increase in babies. “So we know that Trikafta is working …. It’s incredible.” While negotiations continue between the PBAC and Vertex, Ms Burke and families of people with cystic fibrosis are calling for compassionate access to Trikafta to be given to all eligible patients. “We could save lives by getting access immediately,” Ms Burke said. The next update from the PBAC is due in August. Image: Nettie Burke / Twitter

Body

Migraine patients set to save hundreds after costly drug revision

The addition of migraine-preventing medication to the Pharmaceutical Benefits Scheme (PBS) has been hailed as a step in the right direction by advocacy groups. Emgality is used to prevent migraines in adults and is injected once a month by the patient. It can cost up to $1000 a month, but from June 1 eligible individuals will pay just $41.30 a script or $6.60 if they are a concession holder. Raphaella Crosby, the founding member of patient advocacy group Migraine Australia said the addition of the treatment to the PBS is a step in the right direction but that there’s still more work to do. “It does kind of pave the way because now that we’ve got one of these new medications on the PBS, there’s not much argument for listing the other ones,” Ms Crosby said. However, Ms Crosby said the number of people eligible for treatment would be limited by strict criteria. To be eligible, a person must meet the definition of suffering from chronic migraines, be under the care of a neurologist, have tried three older medications that failed, and not have received botox (a common treatment for migraines) under the PBS. “The line between episodic and chronic migraine is nonsense, it’s an arbitrary line that somebody drew at some point. It has no clinical meaning,” Ms Crosby said. According to research by Deloitte Access Economics in 2018, 4.9 million Australians live with migraines. Migraines disproportionately affect women as well, with 45 percent of women aged between 25 and 45 living with very active migraines that affect their ability to work, Ms Crosby said. “When the government talks about getting women back to work, to deny these drugs to women who aren’t completely debilitated by them is a bit counterproductive,” she said. “Because essentially what the restrictions are saying is ‘you need to be completely debilitated by your migraine before we’ll give you something that works’.” Emgality, made by pharmaceutical company Eli Lilly, belongs to a group of medications that block a particular protein associated with migraines, called calcitonin-gene-related peptide (CGRP).

Body

4 reasons to avoid MLM schemes

Whether you’re looking for an income boost or are strapped for cash, you’re likely to come across multi-level marketing (MLM) while figuring out your options. Multi-level marketing, also known as direct selling, is a form of direct sales where salespeople who aren’t employees of the company and don’t receive a salary or wage are used to distribute products or services. These companies often sell wellness and cosmetic products - such as essential oils, supplements, and skincare products. Recruiters of MLMs often target vulnerable people with promises of flexible working hours, getting to be your own boss, and being able to “get rich quick”. In situations where money is tight, it’s easy and understandable to be susceptible to that kind of temptation. To combat the stigma and dispel the myths around MLMs, here are four reasons why they may not be the solution. #1 You have a 99.7 percent chance of losing money Though some MLM recruits say their income allows them to travel the world and buy new cars, the representative body for direct selling, Direct Selling Australia, says otherwise. “Direct selling isn’t about buying boats or bigger houses … [rather] earning additional income that contributes to school fees, weekly groceries, saving for a holiday and bills.” But even that is a reach for most members. Gerard Brody, CEO of Consumer Action Law Centre, said more than 99 percent of recruits will lose money, going against the wealthy lifestyle MLMs claim to fund. Professor David Wishart, who has researched the dangers that come with MLMs, said it’s important to remember these companies “don’t operate within the social contract that business has with society”. “If you are in business, yes you look after your own needs, but there are limits and morality - everyone is supposed to have that,” Professor Wishart said. “[MLM recruits] operate outside of that. “People down the end are simply ripped off. It’s a bad taste capitalism.” #2 It could cost you your friendships Members of MLMs often rely on their existing relationships with friends and family, but it can come at a cost. “Many people become frustrated with friends attempting to ‘commodify’ their emotional connection,” said Marie O Sullivan, a lecturer in marketing at the Cork Institute of Technology who has studied MLMs from a feminist perspective. Dr O Sullivan also said some of these companies encourage members to cut ties with those who don’t support them. “Participants are encouraged to cut out anyone who expresses doubt as this negativity will prevent them from achieving their full potential.” #3 You’re blamed for failing, despite working hard With many MLMs pushing the idea that the harder you work, the more you earn, many are left feeling shame when they don’t make it in direct selling, Dr O Sullivan explained. Sara Balanuik, who had sold weight-loss products for a MLM in the past, recalled: “I hustled hard but was still not a successful boss babe, as was promised.” She was told by her “upline” that she wasn’t seeing the results promised because she wasn’t working hard enough. This kind of business model sets people up to fail, according to Anna Jenkins, a senior lecturer in entrepreneurship at the University of Queensland. “It’s very, very important for all potential sellers to make themselves aware of the statistics around MLMs,” she said. #4 It can be an ethical conundrum While MLMs aren’t strictly illegal - unlike pyramid schemes - they can be ethically dubious. Many MLMs use a business model that focuses on recruiting “downline” - meaning they get new distributors to buy the product - rather than selling products to actual customers, making them similar to pyramid schemes. “While there are many genuine underlying economic activities involved in these schemes, they commonly operate to benefit those at the top. And disadvantage those at lower levels,” Mr Brody said. Professor Wishart recommended doing your due diligence on the company before deciding to join their ranks. “Read what you’re in for. Work out what the terms are. “Look at the product and the sales commission you get on it. Compare the product with what else is on the market. Nobody buys Tupperware anymore as there is stuff that is just as good.”

Retirement Income

Government prepared to hand out restaurant vouchers to families

The NSW government may hand out restaurant vouchers to families in a bid to boost the economy. <a rel="noopener" href="https://www.theaustralian.com.au/nation/politics/coronavirus-mealticket-plan-to-get-economy-cooking/news-story/9806e3f5f422b7a4e188d7bd8b8a1e1f" target="_blank">The Australian</a> first reported the scheme, claiming it would be a part of the state’s budget plan. Treasurer Dominic Perrottet is reportedly considering the plan and a decision will be made in the coming weeks. The proposal is set to cost about $500 million and vouchers would only be given to residents older than 18. Families will receive the full voucher amount and single person households will receive $50. Speaking to 2GB’s Ben Fordham, Gladys Berejiklian said she could not confirm or deny whether the voucher scheme will go ahead. “We are still putting finishing touches on the budget,” she said on Friday morning. “But I want (people) to be assured of one thing … we get how tough it is for a lot of people at the moment. “We’re hoping to take care of everybody who’s going through those difficult times,” the Premier added in reference to the NSW budget. The measure has reportedly already been signed off by the government’s Expenditure Review Committee, which is chaired by Mr Perrottet. However the decision is yet to be put to cabinet, the publication reported. The state’s COVID-19 budget will be handed down on November 17.

Food & Wine

Why one man's bulk buying hand sanitiser scheme failed

A man in America, Noah Colvin, bought 17,700 bottles of hand sanitiser with the intention of reselling them on Amazon for a profit, but the tech giant has put a stop to that immediately. Amazon has cracked down on pandemic price gouging, which resulted in the company suspending Colvin’s account. He drove over 2,000 kilometres across Tennessee, stocking up on hand sanitiser and sanitary wipes but is now unable to get rid of the excess of goods. He’s not the first account to be suspended, with Amazon removing hundreds of thousands of listing of people trying to price gouge items others are looking for, including respiratory masks. Colvin said to <a rel="noopener noreferrer" href="https://www.nytimes.com/2020/03/15/technology/matt-colvin-hand-sanitizer-donation.html" target="_blank">The New York Times</a> that the whole experience has been a “huge amount of whiplash”, as he was able to sell 300 bottles at a markup before the company suspended his account. However, Colvin has since donated all of the supplies on Sunday just as the Tennessee attorney general’s office began investigating him for price gouging. He helped volunteers from a local church load two-thirds of the stockpile of hand sanitiser and antibacterial wipes into a box truck that will distribute the goods across the state to those who need them. “I’ve been buying and selling things for 10 years now. There’s been hot product after hot product. But the thing is, there’s always another one on the shelf,” he said. “When we did this trip, I had no idea that these stores wouldn’t be able to get replenished.” After receiving hate mail and death threats after <a rel="noopener noreferrer" href="https://www.nytimes.com/2020/03/14/technology/coronavirus-purell-wipes-amazon-sellers.html" target="_blank">The New York Times</a> published an article about him, Colvin has since expressed remorse for his actions. “It was never my intention to keep necessary medical supplies out of the hands of people who needed them,” he said, crying. “That’s not who I am as a person. And all I’ve been told for the last 48 hours is how much of that person I am.” Tennessee’s price gouging laws are strict and prohibit charging “grossly excessive” prices for a range of items, including medical supplies. People can be fined up to $1,000 per violation, and the attorney general’s office sent Colvin a cease-and-desist letter as well as opening up an investigation. “We will not tolerate price gouging in this time of exceptional need, and we will take aggressive action to stop it,” Attorney General Herbert H. Slatery III of Tennessee said in a news release.

Money & Banking

Why seniors need to think carefully before leaping into the Pension Loans Scheme

At first glance, it seems like a good idea – supercharge an existing Australian Government scheme to make it easier for retirees to turn the equity in their home into regular cash payments. The expanded <a rel="noopener" href="https://www.humanservices.gov.au/individuals/services/centrelink/pension-loans-scheme/who-can-get-it" target="_blank">Pensions Loans Scheme</a>, which came into effect on 1 July 2019, allows retirees to access a fortnightly amount representing 150 per cent of the maximum pension payment, via a government loan secured against their home. A 5.25 per cent interest rate will apply to the loan, which will need to be paid back to the government when the home is eventually sold. The government expanded the scheme by making it available to self-funded retirees as well as pension recipients and increasing the amount which could be borrowed from 100 per cent to 150 per cent of the maximum fortnightly pension rate. The scheme does look particularly attractive in a low interest rate environment, where retirees are struggling to create a strong and safe income stream from their savings. However, retirees will need to think carefully before they sign up to the scheme, as it does have a number of potential pitfalls. We’ve laid them out for you here: Doesn’t promote ‘fit for purpose’ housing for seniors Many pensioners are living in older-style homes, which were designed for active and young families. These homes are less suitable for elderly people, often because they contain stairs, trip hazards and don’t cater for people with reduced mobility. This government scheme will encourage pensioners to stay in these unsuitable homes, when it is perhaps preferable to be providing incentives for them to move to newer, safer and more comfortable housing stock. For instance, many newer homes are built to <a rel="noopener" href="http://www.livablehousingaustralia.org.au/" target="_blank">Livable Housing Australia</a> standards, which includes requirements for level pathways to the front door, easy-access shower cubicles, slip-resistant flooring and electrical powerpoints elevated from the skirting board. This scheme won’t help with housing affordability Across Australia, there are estimated to be <a rel="noopener" href="https://www.downsizing.com.au/news/347/Empty-bedrooms-in-the-homes-of-over-50s-could-help-solve-Australias-affordable-housing-crisis" target="_blank">millions of empty bedrooms</a>, largely due to ‘empty nesters’ living in homes well after the children have left home. These bedrooms are going to waste when they could be providing housing for those who need it. <a rel="noopener" href="https://www.downsizing.com.au/news/347/Empty-bedrooms-in-the-homes-of-over-50s-could-help-solve-Australias-affordable-housing-crisis" target="_blank">A survey by Downsizing.com.au and LJ Hooker in 2017</a> revealed the extent of the problem. Just under 90% of survey respondents said they had a spare bedroom available in their current home which no-one regularly occupies. Incredibly, one in five respondents said they had three spare bedrooms and four out of ten said they had two spare bedrooms. Encouraging pensioners to stay in their home will continue and exacerbate this national empty bedrooms problem, by locking up older, larger homes which could be better occupied by younger and growing families. It could lead to loneliness Like many other developed countries, Australia has an acute loneliness problem. <a rel="noopener" href="https://theconversation.com/one-in-four-australians-are-lonely-which-affects-their-physical-and-mental-health-106231" target="_blank">A major study released last year </a>found one in two (50.5%) Australians feel lonely for at least one day in a week, while more than one in four (27.6%) feel lonely for three or more days. The UK Government has even launched its own <a rel="noopener" href="https://www.gov.uk/government/news/pm-launches-governments-first-loneliness-strategy" target="_blank">Loneliness Strategy</a>, arguing that it is one of the greatest public health challenges of our time. As mentioned above, there are millions of empty bedrooms in homes occupied by elderly people across Australia. These bedrooms are empty for a very good reason – the family (and sometimes also a partner) are no longer living there. This can be a very lonely experience and also not a safe one during times of ill-health. Retirees may be better moving into retirement communities, where they can be part of a vibrant and supportive community, rather than utilising the Pension Loans Scheme and staying alone in their homes. Scheme doesn’t help people with large mortgages This scheme also may not help the increasing numbers of seniors who are arriving into retirement with a large mortgage and are struggling with repayments. The<a rel="noopener" href="https://www.pc.gov.au/research/completed/housing-decisions-older-australians" target="_blank"> Housing Decisions of Older Australians</a> report by the Productivity Commission, shows that around 30 per cent of Australians aged more than 55 in 2011 had an outstanding mortgage on their home, compared to around 15 per cent in 2001. Recent economic data has shown this <a rel="noopener" href="https://www.downsizing.com.au/news/566/How-downsizing-is-a-growing-mortgage-busting-option-in-retirement" target="_blank">problem has worsened since 2011</a>. Although it is possible to utilise the Pension Loans Scheme when there is an existing mortgage on the property, this may not be the best solution. This is particularly the case if the ongoing mortgage payments eat up the increased income which will come from the scheme. The best way to deal with this problem <a rel="noopener" href="https://www.downsizing.com.au/news/566/How-downsizing-is-a-growing-mortgage-busting-option-in-retirement" target="_blank">may be to sell the property to allow the mortgage to be removed, or to find other ways to get rid of the mortgage debt</a>. Using the scheme for a long period could cut into your home value The Pension Loans Scheme is based on a 5.25 per cent interest rate, that compounds fortnightly on the outstanding loan balance. <a rel="noopener" href="https://www.humanservices.gov.au/individuals/services/centrelink/pension-loans-scheme/how-much-you-can-get/interest-rate" target="_blank">As the government’s website explains</a>, this means that if you use the loan to get a fortnightly payment of $750, after 15 years you will have a total loan balance of $445,000 (of which some $152,000 represents interest). That sort of amount is likely to represent a pretty big whack on any inheritance which goes to the children. As <a rel="noopener" href="https://corporate.amp.com.au/newsroom/2019/june/changes-to-pensioners-loan-scheme-set-to-boost-retiree-bank-bala" target="_blank">AMP Technical Strategy Manager John Perri</a> explains: “When the family home is sold, the amount owed will be deducted from the sale price of the home.” “For retirees the Pensioners Loan Scheme provides an opportunity to free up some equity that they have in their home. This may help bridge the funding gap while looking to secure aged care or while they await an <a rel="noopener" href="https://www.myagedcare.gov.au/assessment/prepare-your-assessment" target="_blank">ACAT assessment</a>. “The downside is that their estate often will be left to pay the outstanding loan, potentially leaving less inheritance to the kids. Retirees should carefully consider their personal situation to work out if this is a viable option for them.” Conclusion There is no question that government intervention is required to help support ‘asset rich cash poor’ retirees to fund living expenses in later years. The government’s reverse mortgage scheme may offer a helpful temporary solution for some people. This could be after a sudden financial change, ill-health or the death of a partner, or while pensioners are transitioning into alternative accommodation. But in the longer-term, it may not be the best solution. In fact, it could encourage people to stay in large unsuitable homes and be increasingly housebound, lonely and socially isolated, while at the same time being in a scheme which may eat into the inheritance they want to give their children or doesn’t help them remove an unwanted mortgage. The early evidence is that seniors are not convinced about the scheme. <a rel="noopener" href="https://issuu.com/yourlifechoices/docs/retirement_affordability_index_june?fr=xKAEwAT3_NTU1" target="_blank">A recent survey by website YourLifeChoices</a> found that 87 per cent of seniors would not borrow through the Pension Loans Scheme, compared to 13 per cent who would. To this end, it would be helpful if the Federal and State Governments offered incentives for retirees to unlock equity by selling the family home and downsizing into a more suitable property. This would help retirees to access funds from their property, and at the same time enjoy the many benefits of downsizing. These incentives could include changes to the pensions asset test, increasing housing supply for retirees and stamp duty reductions or waivers. <div class="body-container"> <div> Written by Mark Skelsey. Republished with permission of <a rel="noopener" href="https://www.downsizing.com.au/news/573/Why-seniors-need-to-think-carefully-before-leaping-into-the-Pension-Loans-Scheme" target="_blank">Downsizing.com.au</a>. </div> </div>

Retirement Income

“Ridiculous”: Coles new scheme outrages shoppers

A Coles shopper has sparked a debate on social media after she shared a photo of pre-packaged meat with a security tag attached to it. The man from Griffith, NSW took to Facebook to post a photo of $30 lamb cutlets featuring a lock symbol on the top left-hand side of a packaging. “Not a mark down but the things retailers have to do to stop theft and protect profit.” The post garnered close to 500 comments from baffled consumers. “Well if it wasn’t so expensive it wouldn’t be a target,” wrote one user. “I’m not really surprised at $30 for 12 bites of meat … it’s bloody ridiculous …” said another. “No wonder they put alarms on them at $30 pkt. They are almost same as a packet of ciggies.” The tags are designed to set off an alarm if they are removed from the premises, but despite the outrage, there are still people who are defending the supermarket. “Seriously though, I wouldn’t be advertising that my product has an anti-theft warning. Let the thief be caught and dealt with,” wrote one user. <iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fpaulette.pearce.52%2Fposts%2F705884563134541&width=500" width="500" height="594" style="border: none; overflow: hidden;" scrolling="no" frameborder="0" allowtransparency="true" allow="encrypted-media"></iframe> “It’s ridiculously expensive but there is NO excuse for stealing! There are heaps of charities running grocery shops. Some people are too lazy to look for bargains/markdowns and don’t know how to budget,” said another. “It wouldn’t be so expensive if we had rain all across the country and the farmers had grass and water for their stock. Guess you haven’t been in the outback to see how the animals are struggling to live,” wrote a Facebook user in response to the tags. A spokesperson for Coles told <a rel="noopener" href="https://www.news.com.au/lifestyle/food/eat/coles-puts-security-tags-on-high-quality-cut-meats-to-prevent-thefts/news-story/d608e7c5fa0ff89bd5c0f09c59168b1e" target="_blank">news.com.au</a> that while most customers do the right thing, “it’s not fair that a small number of people get away with doing the wrong thing”. “Like a number of retailers, we work with police to reduce shoplifting. There are also trained covert security officers in our store nationally and they’re catching hundreds of thieves every week and reporting them to the police. According to the spokesperson, the security tags is a small step to help prevent theft.

Money & Banking

Hold on to your ALDI bags! The supermarket has just announced a bold new scheme

ALDI, the retail giant, has been encouraging users to use their recyclable shopping bags for years in order to cut back on plastic. However, due to an ambitious new plan announced on Tuesday, it is taking it one step further. ALDI is planning to cut at least 25 per cent of all its plastic packaging from its product range by 2025, which is one of many sustainability targets announced by the company. It also has a plan to phase out single use plastics, which include cotton buds, plastic plates and straws from its stores by the end of 2020. Another target the company wants to reach includes cutting down the amount of plastic packaging used in its fresh food range, with plans to use more sustainable options instead. The retail giant also wants to include 30 per cent of recycled materials in its plastic packaging by the end of 2025. ALDI has committed to publicly reporting on these goals from 2020 so it is held accountable. Managing director of buying, Oliver Bongardt, said that it is their “ambition” to reduce the amount of plastic in the stores. He told <a rel="noopener" href="https://www.aldiunpacked.com.au/Article/June-2019/ALDI-Announces-Commitments-to-Reduce-Plastics-and-" target="_blank">ALDI Unpacked</a>: “It is our ambition to reduce the amount of plastics in our stores, while in parallel stimulating Australia’s circular economy, ensuring that our business partners have commercially viable packaging options to reduce their reliance on virgin materials. “Despite our desire, and that of our customers, to remove plastics immediately, this process will take years not weeks. Today’s announcement is to clearly demonstrate that we are completely invested in the important journey of reducing waste and we stand committed to quantify our progress over the coming years.” ALDI’s sustainable goals include: <ul> <li>Aim to reduce plastic packaging by 25 per cent in 2025.</li> <li>Actively reduce the amount of plastic packaging in its fresh produce range and transition to more sustainable alternatives.</li> <li>Phase out “problematic and unnecessary” single-use plastics by the end of 2020.</li> <li>Prioritise the reduction or replacement of difficult to recycle black plastic packaging.</li> <li>The packaging of exclusive ALDI brands will be reformulated to be 100 per cent recyclable.</li> <li>All paper and pulp-based packaging in ALDI’s every day range will be FSC, PEFC or 70 per cent recycled.</li> <li>It aims to include 30 per cent recycled materials in its plastic packaging by the end of 2025.</li> <li>Publicly report on goals from 2020.</li> <li>Use the Australasian Recycling Label (ARL) on ALDI branded products by the end of 2022. </li> </ul>

Money & Banking

Warning: Have you heard of the latest pyramid scheme luring Aussies?

There are new warnings of an international scam making its way throughout Australia called the “loom” scheme. Participants are targeted through social media and can lead to them “scamming” their friends and family to purchase products that they are selling. The victims can then be left hundreds out of pocket as they run out of friends and family to recruit, but still need to purchase a base amount of stock. How it works Users are initially asked to invest $300, with the promise that they will make eight times that amount once they recruit their friends and family. Facebook user Luke MacDonald explained the experience to the <a href="https://www.abc.net.au/news/2019-04-12/loom-pyramid-scheme-social-media/10994448">ABC</a>. His friend had claimed that they had made up to $5,000 through the scheme. "It was just a link to a chat in a WhatsApp group … I asked what it was and he said it was a Loom group and that he had cashed out twice," Mr MacDonald said. Mr MacDonald was aware of what it was, but thought most people involved had not known what they were doing. "This particular person is a really nice guy, but he wouldn't think about things that deeply," he said. "His response was; 'it doesn't matter to me, I've made $5,000 in two days'. People have this concept that it's just making money out of nothing, but it's not. "Essentially you're scamming your family and friends because it's your immediate circle that you're pushing it onto — it's just transferring money around to different people and then eventually the people at the bottom get screwed,” MacDonald explained. It’s against the law in Australia to not only promote a pyramid scheme, but to participate in one. What to look out for Queensland University of Technology fraud expert Dr Cassandra Cross explained how the Loom was so successful in Australia and how it’s similar to a pyramid scheme. "There are a lot of similar characteristics of a pyramid scheme … but this is a circle one where people get pushed into the middle," Dr Cross said. As the Loom is built via social media, it can be a bit more deceptive as you see your friends and family participate in it. "If you're committing to it and then asking your friends and family to do so, it takes away some of the warning signs," Dr Cross said. "You have to give out your bank details in order for money to go into an account, and you also send money to someone else's account. "That just raises suspicions about money laundering, and around not necessarily knowing who you're sending money too, or having your bank account details that are out there." However, Dr Cross warned that people will be left out of pocket once they run out of people to recruit. "It will certainly get to a point, as many of these schemes do, where there's no new investors and no new people coming into it and once that happens all of the promised returns never eventuate and it all falls over," she said.

Technology

“Let's just calm down”: Barnaby Joyce at the centre of heated and “shouty” interview

Barnaby Joyce has been at the centre of a heated and “shouty” interview with ABC’s Patricia Karvelas. The Nationals backbencher was asked to address the controversial $80 million deal conducted by the government during his time as water minister, which has caused a major uproar on an otherwise smooth election campaign by the Coalition. The 20-minute long radio interview saw Joyce refuse to answer questions over the incident and whether he had determined where the profits of the taxpayer-funded water buyback would ultimately end up. Growing increasingly frustrated, Joyce began to raise his voice and proceeded to give the same response to each question, saying the questions should be forwarded to his Labor counterparts Tony Burke and Penny Wong. One of his answers to Karvelas’ questions was “Labor, Labor, Labor, Labor, Labor.” After having enough of Joyce’s behaviour, Karvelas requested: “Let’s just calm down.” “Let’s just do this respectfully,” she said, saying she wanted to avoid a “shouty interview”. Joyce defended the multimillion-dollar buyback, saying, “These are the people who were offering water for us to buy.” But he then repeated the same words uttered by Prime Minister Scott Morrison, saying that the deal took place at “arm's length” of himself and other ministers. “Are you taking me to confessional or do you want the water? The Labor Party bought water off these people, we bought water off these people … people at arm's length to me made the decision to buy this water,” he said. Joyce then declined to answer whether the buyback scheme was a wrong decision, forcing Karvelas to tell him that her listeners were “frustrated”. “I’m trying to be very patient,” she said. The former Deputy Prime Minister then accused the Radio National host of “ducking and weaving” as she asked about the people who profited off the scheme. “You’re ducking and weaving, go on, spit it out,” said Joyce. “Let me finish my question, you keep talking over me,” Karvelas responded. “I do need to finish and complete sentences.” Joyce, who claimed questions about government beneficiaries of the scheme were about Angus Taylor, said: “I wouldn’t know him if he stood up in my cornflakes”. Karvelas has been applauded for her handling of the situation, with listeners praising the host on Twitter. Joyce on the other hand, didn’t put on his best show.

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Government’s disability scheme slammed as “heartless” after man's claim rejected

The National Disability Insurance Scheme (NDIS) has been lambasted as “heartless” after it rejected the claim of a South Australian man with a damaged hand. Martin Barclay told <a href="https://au.news.yahoo.com/cried-two-days-man-told-hes-not-disabled-enough-disability-support-102124576.html">7News</a> that he struggles to shower and cook on his own, yet the NDIS does not find him disabled enough. Barclay, 48, has been living with the severe impairment on his hand for almost two decades. The hand, which was already weakened after a motorbike crash in his youth, was further damaged in a workplace accident in 2002, causing it to clench and spasm. To clean the impaired hand, Barclay has to visit Clare Hospital every six weeks to be sedated while doctors perform the task. <blockquote class="twitter-tweet" data-lang="en"> EXCLUSIVE: The NDIS is being slammed as heartless after the claim of a disabled Mid-North pensioner was rejected. Martin Barclay's hand is so damaged he struggles to shower and cook for himself, but he says he wasn't disabled enough for the NDIS. <a href="https://twitter.com/hashtag/auspol?src=hash&ref_src=twsrc%5Etfw">#auspol</a> <a href="https://twitter.com/AndreaLNicolas?ref_src=twsrc%5Etfw">@andrealnicolas</a> <a href="https://twitter.com/hashtag/7NEWS?src=hash&ref_src=twsrc%5Etfw">#7NEWS</a> <a href="https://t.co/UZ6aQoJAvC">pic.twitter.com/UZ6aQoJAvC</a> — 7NEWS Adelaide (@7NewsAdelaide) <a href="https://twitter.com/7NewsAdelaide/status/1110083322011541504?ref_src=twsrc%5Etfw">March 25, 2019</a></blockquote> However, when his doctor lodged a claim for support with the federal government’s disability scheme in February, it was rejected with a letter implying that Barclay’s condition is not permanent. “When I got that letter, I just cried for two days virtually,” said Barclay. “I find it absolutely appalling, you know, this poor disabled person, just being pushed to the side.” The NDIS said it will review Barclay’s disability claim. This is not the first time that NDIS’ rejection has been questioned. Last year, New South Wales man Jeremy Hawkes – who was featured on the scheme’s nationwide ad campaign – got his application rejected, as his Parkinsonism and chronic pain were found not to substantially reduce his ability to care for himself. The NDIS is required by law to provide “reasonable and necessary supports” for Australians with “permanent and significant disability”. As of December 31, 2018, more than 244,000 Australians have joined the scheme. However, the program has been riddled with issues, with the <a rel="noopener" href="https://www.themercury.com.au/news/opinion/time-to-fix-a-failing-system/news-story/b6140daaed3b9450be6a2d958539a4ab" target="_blank">Mercury</a>’s editorial describing it as “a failing system”. According to disability advocate lawyer Dona Graham, many find the application and review process long and complex. “When you're wanting to apply to the NDIS, there's actually nobody on your side,” Graham told the <a rel="noopener" href="https://www.abc.net.au/news/2018-07-25/ndis-poster-boy-has-own-application-rejected/10034228" target="_blank">ABC</a>. “You're actually not being supported. It's incredibly complex and financially it's out of most people's purview.” Those who have been found eligible by the NDIS also face problems. According to <a rel="noopener" href="https://www.adelaidenow.com.au/news/south-australia/just-59-per-cent-of-south-australians-with-ndis-funding-are-spending-the-money/news-story/4c7fde87d65a70496b64ea6a35a849ea" target="_blank">The Advertiser</a>, only three out of five (59 per cent) South Australians with NDIS packages are actually spending their money on services due to the “confusing” system.

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“Let's just calm down”: Barnaby Joyce at the centre of heated and “shouty” interview

Government’s disability scheme slammed as “heartless” after man's claim rejected

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