12 money tips for Christmas

February 12, 2020
Money and Life
(Financial Planning Association of Australia)
You don’t have to pay yourself super, but when you retire, you might be glad you did.
You can make regular or lump sum payments, can usually claim a tax deduction on contributions, and may be able to save tax.
Why pay yourself super
There are advantages to contributing to super:
You save for your retirement.
You can claim a tax deduction for super contributions.
Super contributions are taxed at 15%, so you may save tax depending on your situation.
Super investments usually get better returns than bank savings accounts, so your savings will grow faster.
Use our super calculator
Work out how much you can save for your retirement.
How to pay yourself super
If you already have a super fund, check that you can make contributions when you’re self employed. You’ll need to give your fund your tax file number (TFN) so they can accept contributions.
If you don’t have a fund, see choosing a super fund.
Transfer a regular amount or a lump sum
There are two ways to contribute, depending on how you pay yourself. If you receive:
A wage — set up a regular transfer into super from your before-tax income.
Income from business revenue — transfer a lump sum when you have enough cash flow.
Tax deductions for super contributions
You can claim a tax deduction for contributions you make from your pre-tax income (known as concessional contributions). You benefit because you reduce your taxable income.
To claim a tax deduction, you need to send a ‘Notice of intent to claim’ form to your super fund before the end of the financial year. Contact your fund to find out how much time you need to allow for processing.
See claiming deductions for personal super contributions on the Australian Taxation Office (ATO) website for detailed information.
Always confirm the details of any super contributions with your accountant or tax agent.
How much to contribute to super
As a guide, employers contribute at least 9.5% of an employee’s earnings to super.
There are limits to how much you can contribute each financial year:
up to $25,000 in concessional contributions (from your pre-tax income, for which you can claim a deduction), and
up to $100,000 in non-concessional contributions (from your after-tax income)
If you’re on a low income, you may be eligible for government super contributions, see super contributions.

January 22, 2020
Money Smart
(ASIC)
One account, two names
Opening a joint account with your partner is a huge commitment and one of the biggest decisions you will make in your relationship. Only do it if you completely trust them to responsibly access the money, in good times and in bad.
Here are some tips to work out whether a joint account is right for you.
Risks of joint accounts
It’s not a good idea to open a joint account with someone you have just met as you are giving them access to your money. Joint accounts are only suitable for people who trust each other deeply, like a family member or your long-term partner.
Case study: Costa’s girlfriend takes him for a ride
Young man who has had his money taken from a joint account by his partner
Costa works interstate a lot. He decided to open a joint account with his girlfriend, Jenny. The joint account meant he wouldn’t have to worry about paying his bills when he was away as she would arrange it for him.
A few weeks later, Costa checked his account to make sure his boss had paid him that week. He was shocked to find there was no money in the account. Costa tried to contact Jenny but she would not return his calls. He rang his bank and found she had withdrawn all his money. She could do this as it was a joint account that did not need his permission for withdrawals.
After this bad experience, Costa got a separate bank account and decided to set up direct debits for his bills. It would be a long time before he trusted anyone with his money again.
Be very wary of anyone pressuring you to open a joint account. People do have money troubles and may see you as a way to help solve their financial problems.
If you open a joint account which offers credit, and one account holder racks up a large amount of debt they can’t pay back, you both risk having a bad entry on your credit report. You are also legally responsible for paying off the debt.
Benefits of joint accounts
People often open a joint account because they pay fewer fees with one account than two. It can also make joint payments like mortgage, rent and other bills easier to manage.
Joint accounts work well for people who spend money in a similar way. Both people should agree how and when they will deposit and withdraw money, to meet the same goals.
If you are thinking about opening a joint account, ask yourself:
Do I trust the other person completely even if times get tough?
Do we communicate well about money matters?
Do we have similar goals for our money and similar spending habits?
What is our objective in opening a joint account? Is there a better way to achieve this objective?
A shared account for shared bills
One way to make things more convenient for you and your partner would be to keep your money in separate accounts but open one shared account for your shared bills. Discuss with your partner what bills you will pay with your shared account and how much you each will contribute.
Types of joint accounts
There are two types of joint accounts.
Both to sign
This type of account only allows transactions to be made when both parties sign. For example, if you don’t agree that your partner should spend money from the account on a new motorbike, they wouldn’t be able to access the money without your agreement. If you are worried about security, this may be a good option for you.
Either to sign
This account allows both parties to transact independently of each other. This is a less secure option because one person can withdraw and use the money without the approval or knowledge of the other.
Case study: Missy’s ex-husband empties their bank account
Unhappy woman who has had a joint account drained by her ex-husband
Missy was married for 5 years before she and her husband decided to separate. They had over $10,000 in a joint account that they used to pay bills and save for their children’s education. A couple of weeks after the separation, Missy’s card was declined in the supermarket. There was no money left in the account and she couldn’t pay for her groceries.
Missy rang her bank to complain only to find out that her husband had emptied the joint account. Their account allowed either to sign, so her husband hadn’t done anything illegal by emptying the account. Missy talked to a lawyer who told her she would have to fight to get her money back, which could take years.
Additional credit cards on your account
Your credit card provider may offer you the option of having additional cards for family members. These are not strictly joint accounts and the primary credit card holder is usually solely liable for the debt. For more information see secondary credit cards.
Closing a joint account
There is more to closing a joint account than just cutting up the card. Follow the steps below to close the joint account properly.
Both owners need to agree – Before you start closing a joint account, both owners need to agree that the account should be closed. Agreeing on this will help avoid any delays when it comes to arranging the closure. If you cannot agree, contact your bank to advise them of a dispute between the joint account holders. They may be able to freeze or put a temporary stop on your account until you are able to resolve this, or they may require both of you to authorise transactions on the account. Make sure you have another account to use for your pay and to pay bills.
Sort out direct debits and credits – Ask your bank for a 13-month list of any direct credits and direct debits for your joint account. Contact your employer and anyone else who regularly puts money into your account, including Centrelink, to tell them of your new account. Cancel all direct debits from your joint account and make alternative arrangements to pay these bills.
Zero balance – Pay off any overdrawn amount and work out with your former partner how you will divide the remaining account balance. Your balance must be zero before you can close the account.
Call your bank – Tell them you would like to close the account. They will need to verify both owners’ identities. Take note of the date and time you called, and the name of the customer service officer you spoke to.
Put it in writing – Follow up your call with a letter confirming you want to close the account. Include your joint account details, both signatures, and details of your phone call. Ask for written confirmation that the account has been closed. Keep a copy of your letter in case there are any issues later.
Confirmation – You should receive confirmation from your bank once the joint account has been closed. This could be a letter or a final statement. If it does not arrive, follow up with the bank.
Think very carefully before opening a joint account. Communicate openly with the other person to make sure you both have the same financial goals. Don’t be pressured into opening a joint account as you could lose your money.

Money and Life
(Financial Planning Association of Australia)
Proposed bag bans from supermarket giants Coles and Woolworths, together with the ABC’s popular War on Waste TV series have put the spotlight on the single-use plastics problem here in Australia. Find out how to swap disposable plastics for reusable alternatives and make it add up for your household budget.
Wherever you live and wherever you shop, chances are you’ve become aware of the perils of single-use plastics. And there’s no doubt that getting free, disposable plastics products – from shopping bags to straws – seems like the convenient, budget-friendly option. But ditching single-use plastics could end up being easier on your pocket, as well as the environment.
Here are five ways to make the transition away from single-use plastics. You might be surprised at the savings you’ll make by investing in a few items that make sustainable living more affordable.
Drink up
Think the cup you’re drinking takeaway coffee in is recyclable because it’s cardboard? Most takeaway cups are lined with a thin plastic film so they can’t be recycled along with other paper and cardboard waste. And that means our national caffeine habit is making a huge contribution to landfill – around one billion disposable cups a year according to a 2016 feature from ABC news.
Thanks to the first series of ABC’s War on Waste TV show, this issue has received a lot of publicity, which has sent reusable coffee cup sales through the roof. One of the most popular on the market is the Keep Cup, available in three sizes in glass and plastic. There are many alternative versions now available in major supermarkets and independent stores, so look for one to suit your budget and colour preference.
But where’s the dollar saving if you’re buying a cup instead of getting free disposable ones? Many vendors are now offering discounts on takeaway coffees if you bring your own cup. A handy interactive map from Responsible Cafes can help you find one of 4,400 cafes across Australia who will sell you coffee for less when you bring a cup with you. Get your daily brew from these baristas and you’re likely to recover the cost of your reusable cup in a matter of weeks.
Buy in bulk
While some food packaging can be recycled, much of it still ends up in landfill. Although it might seem like something that’s hard to avoid, the rise of bulk food shopping is increasing families budget savings on groceries, as well as reducing waste. Reusable jars, plastic containers and bags can all be suitable for buying and storing dry goods, such as pasta, rice and cereals as well as spices, oils, sauces and more. And there are now many household cleaning and laundry products available in bulk too.
Investing in as many airtight jars as you need can be a significant cost, but you can reuse old jars instead of buying them. It’s often the case that products from bulk stores are cheaper by weight and volume than the supermarket equivalent. So you should find your weekly shop costing you less than it did before.
Cool containers
Having some plastic in your home needn’t be a bad thing, especially if it’s built to last. Tupperware have been in the business of making durable plastic containers and household items since 1946. Their modern creations come at a high price, but there’s a retro chic appeal in old Tupperware tubs that have seen them flying off the shelves at op shops. So if you’re looking for something sustainable and stylish to keep food fresh, pay a visit to your local Salvos and St Vincent De Paul store and see what you find in the way of vintage Tupperware for your home.
Be bag smart
After Coles and Woolworths stopped handing out free plastic bags to customers in July 2018, Coles have changed their position again. They are now offering complementary plastic bags to customers again. While these bags are designed to be used more than once, they’re not as robust as reusable bags customers pay for. Woolworths on the other hand are charging their customers 15c for similar bags.
Wherever you choose to do your grocery shopping, reusable bags can definitely save you from contributing to plastic pollution. And if you shop at Woolies, then you’ll also be saving yourself 15c a pop on your plastic bag bill. Struggle to remember to bring bags with you every time? Many stores, including some IGA shops, have started offering Boomerang Bags to customers. You borrow one or more to carry your shopping home and return them next time.
Straws for days
Right up there with takeaway cups and disposable grocery bags, single use plastic straws are high on the list of public enemies for plastic pollution in our oceans. While the actual figure for plastic straw waste is uncertain, its fair to say most of us will have used and discarded them during our many visits to a pub, café, bar, restaurant or takeaway, as well as having them for our drinking comfort at home.
While straws made from paper are a compostable alternative, reusable straws are an even better option. Available in glass, stainless steel or bamboo, it could be a few years before you’ll save enough on your plastic straw bill to have made these a worthwhile purchase. But if it’s a case of a $10 outlay to save your household throwing away perhaps hundreds of straws, it’s a small price to pay to do your bit for limiting the plastics clogging up our landscape and oceans.
Spending more on more significant items like clothing, furniture and appliances can also be better for your budget in the long run. Find out more.

January 2, 2020
Money Smart
(ASIC)
Find your lost super and get back on track
Your super is your retirement savings, so it’s important to know what super accounts you have and how much is in them. Here we explain how to track down lost super, how to consolidate them and how to work out if you have enough super.
How to search for lost super
Have you kept track of all your super? If you’ve ever changed your name, address, job, or done casual or part-time work, you may have lost track of some of your super.
Smart tip
Look after your super because it needs to look after you in retirement.
You can check your super by registering for the Australian Taxation Office’s online services via myGov. This will allow you to:
see details of all your super accounts, including any you may have lost or forgotten about.
find ATO-held super, held on your behalf when your super fund, your employer or the government couldn’t find an account to deposit your super to.
consolidate your super into a single fund.
If you have recently opened a super account, it may take up to 6 months to appear on your MyGov account.
You can still consolidate your super by completing a balance transfer form for each super account you want to transfer from and mailing it to your new super fund. See consolidating super funds for more information.
Case study: Christian finds his lost super
Man On Computer
Christian had just started his first full-time job after finishing university. He had worked a few casual jobs while studying, but hadn’t thought much about his super. His new boss suggested he do a search to find any super he might have lost. Christian had already set up a MyGov account to do his tax return online but hadn’t realised he could use the account to track his super.
When he logged on to his MyGov account he could see that he already had two active super funds with a combined balance of $2,500. He was really surprised that he had accumulated this much super from two casual jobs.
When Christian looked into each super fund, he found he was paying fees on both and also had insurance premiums being deducted from each account. He decided to consolidate his super into one account and chose the fund with the better overall long-term investment returns and lower fees. He used the super consolidation tool on the MyGov website to combine them into one fund and then told his employer to pay his super into his chosen fund.
Christian’s retirement is a long way off but he knows that getting on top of his super now will put him much further ahead when he eventually retires
How to check your super statement
When you receive your annual super statement, review the information to ensure it’s still correct. See checking your super statement for the things to look for.
Find out if you have enough super
We explain how much is enough super but we also have a range of super calculators to help you crunch the numbers:
Superannuation calculator – check if your super is on track and how fees can affect your super balance.
Employer contributions calculator – find out how much super your employer should pay into your super account.
Super and pension age calculator – check when you can access your super and the Age Pension.
Retirement planner – work out how you can boost your retirement income by taking action.
If you want more money to spend in the future, you need to keep track of your super today. Finding lost super and bringing it all together will save money on fees and make your super easier to manage.

December 11, 2019
Michael Mehr
(Australian Associated Press)
Consumer confidence increased at the weekend, with an ANZ survey suggesting people are more optimistic about the Australian economy but less sure about the financial prospects for themselves and their families.
The ANZ-Roy Morgan Australian Consumer Confidence index rose 0.8 per cent from the previous week, with respondents’ positive views of the economy over the next 12 months gaining 3.9 per cent – rebuilding after the prior week’s 4.1 per cent slump to a four-year low – and sentiment about the next five years gaining 2.7 per cent.
The weekly measure of consumer mood, which is based on about 1,000 face-to-face interviews conducted on Saturdays and Sundays, also registered a 1.6 per cent increase in people who felt they were better off now compared with a year ago.
But there was a 3.9 per cent drop regarding the prospects for their own financial situation during the next 12 months.
“It is encouraging to see a second week of positive momentum in consumer confidence,” ANZ economist David Plank said.
“Especially given the slew of negative news over the past week: weaker than expected GDP, soft retail sales, bushfires and the smoke haze in Sydney and much of New South Wales.”
The survey’s “time to buy a major household item” metric was up 1.9 per cent, according to the poll results released on Tuesday, adding onto the previous week’s jump of 5.3 per cent when shoppers had access to Black Friday and Cyber Monday discounts.

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December 11, 2019
Daniel McCulloch and Paul Osborne
(Australian Associated Press)
Australia has called for rules around global carbon markets to be finalised at the UN climate summit in Madrid and urged technological solutions to cut emissions.
Emissions Reduction Minister Angus Taylor told the summit on Tuesday Australia was committed to the Paris agreement and on track to meet and beat its target set for 2030.
But he also urged action on shoring up the legitimacy of the global carbon trading market, which some say is undermined by corruption.
“Here in Madrid, we need to finalise arrangements for Paris agreement carbon markets that give us confidence traded carbon units represent genuine emissions reductions,” Mr Taylor said.
As well, he used the speech to announce Australia would take part in a new initiative known as the Leadership Group for Industry Transition, aimed at cleaning up the world’s heaviest greenhouse gas emitting industries such as steel, cement, aluminium, aviation and shipping.
Mr Taylor said strong messages and targets alone would not address climate change, no matter how ambitious.
“The world needs action to reduce emissions and Australia believes technology will be a key driver of the global transition to lower emissions,” he said.
Australia’s focus was on working with industry, researchers and international partners on “priority technology” such as hydrogen.
A national hydrogen strategy was launched last month, outlining the benefits not only in terms of emissions, but the domestic economy and exports.
Last year $14.1 billion was invested in clean energy in Australia, with renewables now making up over 25 per cent of the national electricity market.
And Australia has the world’s highest uptake of residential solar panels, with one in five households now using them.
Earlier at the summit, Fijian clergyman and climate advocate James Bhagwan seized on an infamous image of Prime Minister Scott Morrison brandishing a lump of coal in parliament.
“As much as I love him as a Christian brother, each lump of coal represents a nail in our coffins and to our crosses,” Reverend Bhaghwan said.
Mr Taylor said Australia was providing an extra $500 million over five years from 2020 to help Pacific nations invest in clean energy and climate and disaster resilience.
And an Asia Pacific disaster risk reduction summit would be held in Brisbane in June.
Mr Morrison, who was in Sydney on Tuesday, said he respected the views of all members of the “Pacific family”.
“No government has done more to engage the Pacific than our government.”
Australia has pledged to reduce emissions by 26 per cent below 2005 levels by 2030 as part of the Paris agreement.
However government projections show more than half that target will be achieved through carryover credits from achieving goals of the Kyoto protocol.
Opposition Leader Anthony Albanese said the government was trying to “fiddle with the figures” to meet international climate commitments.
“Well, it’s no wonder the world is pushing back on that,” Mr Albanese told reporters in Queensland.
“The government’s position on climate change and energy is embarrassing.”
Mr Albanese said the government needed to reduce domestic carbon emissions and become more involved in global action to address climate change.

December 12, 2019
Money and Life
(Financial Planning Association of Australia)
Could it be better for your finances, and family, to hit the road or head to distant shores for Christmas? Find out how a festive overseas escape stacks up against a roadtrip for your celebrations.
With the cost of Christmas festivities rising from year to year, it can be a jolly expensive time of year. According to figures from Finder, our collective spend on Christmas in 2018 was more than $25 billion, with the average Australian forking out $1325. While roughly $1 billion of that total goes on decorations, a hefty chunk will be for gifts for our nearest and dearest. In our recent research into giving gifts in Australia, we calculated that, on average, we spend $93 on a significant Christmas gift.
This goes to show just how much money can end up being spent on the traditional way of celebrating the holidays – at home, opening gifts under a tree laden with tinsel, followed by an extravagant feast. What if all that money was put towards a holiday instead? For some families, the big gatherings over Christmas can also become stressful and tiring, with so much effort going into cleaning and catering for the big day. Or you may be in a situation where a family celebration means dividing your day up between meals and festivities in multiple locations, leaving everyone feeling sick of driving around and too much eating in-between.
If you’re coming around to the idea of getting away from it all this Christmas with a domestic or international escape here are a few things to keep in mind before you book:
Escaping in your own back yard
1. The traffic factor
The Christmas road trip may be something you already do in your family, either to escape to a well loved holiday destination or visit your own parents, siblings or in-laws. Because our festive season coincides with the longest holiday for schools, and many businesses too, roads can quickly reach capacity, leading to frustrating delays and many extra hours of travel.
This year, the NRMA anticipates peak traffic on the roads on 18 December when schools finish for the year, on 23 December and Boxing Day. The 4 and 5 January are also likely to be extra busy as many return home after the festive fun is over. If you can avoid these days, you could save yourself from getting stuck in holiday traffic. Just in case you do encounter delays on the roads, be sure to pack plenty of snacks and extra entertainment to make the time more bearable for hungry, impatient kids (and their parents!).
2. High rates for hotels and holiday homes
Holiday accommodation in Australia is always in high demand when school terms are over and this is even more the case in summertime. According to Finder, places to stay in our most popular holiday destinations can be at their most expensive around Christmas time. Their figures show that travelling to the Gold Coast, for example, can cost up to 63% more for the Christmas period, taking into account higher rates for hotels, flights and car rentals.
3. Last minute deals
If you can afford to be flexible about where and when you travel, a last minute deal could be the perfect way to get away on a budget for Christmas. In the week before 25 December, any remaining rooms are likely to be discounted to maximise occupancy. So if you’re prepared to be open to less popular destinations and even travel on Christmas day itself, you could snap up your holiday at a much more reasonable rate.
An international Christmas experience
1. The Christmas travel tax
Paying a premium for holidaying during the festive season can also be a problem if you venture overseas. Finder has run the numbers on this ‘Christmas travel tax’ and named Bali, Phuket and Goa as the destinations you’ll pay much more for if you choose them for your Christmas escape. Travelling to the UK, on the other hand, can be quite affordable. Flights are slightly more expensive – an 11% increase according to Finder, but this is offset by cheaper hotel rates.
As with domestic holidays, if you’re prepared to be flexible in where and when you travel, you can get away without being stung with seasonal price rises.
2. Steer clear of crowds
Just like the roads, airports can also become exceptionally busy for key travel dates around Christmas time. In 2018, Sydney airport saw its busiest day ever on Saturday 22 December, so you can expect a similar peak in airport crowds this year on and around Saturday 21 December. If you need to travel from any airport in Australia on these dates, make sure you arrive early for your flight and pre-book parking or transfers to avoid any unexpected delays in your journey.
3. Seasonal opening hours
So you’ve bagged your bargain holiday, made it to the airport in time and you’re all set to have a Christmas with a difference in a far-flung land. Your plan for enjoying some local hospitality in cafes and restaurants, not to mention shopping, might be ruined if everything is closed for the holidays! Some countries and cities will have a business as usual approach to their opening hours, but others may not, so it’s worth finding out what to expect in your chosen location. Even if everything is closed for a few days, you can still enjoy your time, as long as you pack accordingly and book a hotel with room service!

December 11, 2019
Paul Osborne
(Australian Associated Press)
A report looking into the potential for nuclear power in Australia is expected to be released later this week.
The parliamentary environment and energy committee was tasked by Energy Minister Angus Taylor in August to examine the potential for nuclear power.
Mr Taylor told the committee the moratorium on nuclear energy would remain, but he wanted some “sensible” advice on economic, environmental and safety implications.
The inquiry received evidence on the potential for micro-reactors – some as small as five megawatts – and even floating nuclear power stations which are being developed in Russia.
Former federal minister and now Queensland Resources Council boss Ian Macfarlane told the committee the existing ban on mining uranium was purely “ideological”, and ignored the fact it could be a $10 billion industry for the state.
He said nuclear power could lower emissions from the electricity sector without detracting from economic growth, however it needed national policy.
Environment groups said there were huge health, environmental and financial risks from a nuclear industry, which would also need massive taxpayer subsidies.
They warned suggestions of small modular reactors were a pipedream and the nuclear waste storage problem had not yet been solved.
Previous studies have identified at least 19 sites in Queensland, NSW, Victoria and South Australia which could be suitable for nuclear power plants, including Bundaberg, Port Stephens, South Gippsland and Port Adelaide.
It is understood the committee is aiming to table the report in parliament by the end of the week, but no formal release date has been set.