Big banks forced to refund $28 million in fees
By Nicola Field
Major banks to refund $28 million to low-income customers, new report slams Sydney's $2.5 billion toll charges, and the big change coming to Perth's rental market. Here are five things you may have missed this week.
Big banks forced to refund $28 million in fees
Four of Australia's leading banks will refund more than $28 million to low-income earners following an investigation that found customers who could least afford it were being slugged over-the-top fees.
Money watchdog ASIC says ANZ, Commonwealth Bank, Westpac and Bendigo and Adelaide Bank, kept at least two million Australians, many of whom rely on Centrelink for income support, in high-fee accounts often by creating barriers that prevented regional and remote customers getting a better deal.
ASIC Commissioner Alan Kirkland, says, "Banks knew that many of these customers on low incomes were in inappropriate high-fee accounts, and it has taken ASIC's intervention to force them to act."
He notes that before ASIC's review, most banks only provided their customers with difficult 'opt-in' processes for switching to low-fee accounts, including forcing some consumers to travel hundreds of kilometres to their nearest bank branch.
The banks have since migrated more than 200,000 customers into low-fee accounts.
Toll review report slams Sydney's $2.5 billion annual toll take
This week saw the Independent Toll Review handed to the NSW state government.
The report exposes the full impact of toll road privatisation, describing Sydney's toll road network as a poorly-functioning patchwork of different price structures that is expected to cost motorists $195 billion in tolls over the next 35 years, with residents of Western Sydney likely to be bear the brunt of tolls.
The report offers a range of recommendations including tolls being charged on a per kilometre rate where the rate falls over greater distances.
As it stands, Sydney is the most tolled city in the world, with motorists currently paying $2.5 billion in tolls annually.
NSW Roads Minister John Graham, says, "Toll reform is critical for Sydney and this is a once in a generation chance to address this issue."
The NSW state government will now consider the report, so it's a case of 'watch this space' for possible toll relief.
The big change WA renters will love
Changes to rental laws will go live in Western Australia on July 29, and while tenants are likely to love them, chances are landlords will be less impressed.
From July 29, landlords will only be able to raise rents in WA once every 12 months instead of every six months at present.
The new rule will give WA renters valuable breathing space, especially in Perth, where rents have soared 15.3% over the past year. Unit rents are up by almost one-fifth.
It's a change that brings WA into line with many eastern states. The Northern Territory is now one of the few remaining markets where rents can be hiked every six months.
Free help with your tax return
Get it wrong with your tax return and you could cop a substantial fine. Speaking with a tax agent is a way to get it right, but it comes at an extra cost, and right now, that's something plenty of Aussies are trying to avoid.
The good news is that if you earn less than $60,000 you could be eligible for the free Tax Help program run by the Australian Taxation Office (ATO).
ATO Assistant Commissioner Rob Thomson says Tax Help is available from July through to October. To get started, you'll need to create a myGov account and link it to the ATO. From there, make an appointment by phoning the ATO on 13 28 61.
If you're not eligible for Tax Help, support may be available through the National Tax Clinic program, run by TAFES and universities. It's open to small businesses as well as individuals. Head to the ATO website for details of a National Tax Clinic provider near you.
The ATO also has an Indigenous Helpline for Aboriginal and Torres Strait Islander peoples. The Helpline is available on 13 10 30, Monday-Friday, 8am to 6pm.
Fear of rejection prevents one in five Aussies applying for finance
A Finder survey shows 19% of Australians have avoided applying for a credit card, personal loan or home loan in the past year because they are worried about being knocked back.
It's not the rejection itself that's holding would-be borrowers back. Rather, Finder's Sarah Megginson, says many people are worried about the impact of a knock back on their credit rating.
"As money has gotten more expensive to borrow, many lenders have become more scrupulous about who they'll lend it to and it's making people nervous," says Megginson.
That may be the case, but concerns over a rejection dragging down personal credit scores may be unfounded.
According to industry-owned CreditSmart, the results of a loan application (approved or denied) don't even appear on our personal credit files.
The thing that's more likely to affect our credit rating is submitting a loan application.
The moral of the story is to keep loan applications to a minimum rather than casting your net wide.
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