As we head towards the end of the financial year, now is the time to take steps to get your tax affairs in order and look at any last-minute planning to maximise your return.

From getting your documents in order, to disposing of your underperforming shares or even making a personal superannuation contribution - there's plenty to do.

So read on for some useful tips to ensure that your tax time ends up being a fruitful one this year.

1. Get your tax records in order

If you want to make a claim for work-related expenses, you need to follow the three golden rules:

• The expense must relate to your work
• You mustn't have been reimbursed by your employer
• You must be able to prove that you spent the money. That means that you must keep receipts, invoices or statements to demonstrate that you actually incurred the expense.

My tip is to keep electronic copies of all documentation relating to expenses.

Paper receipts get lost or fade, so keeping everything together on your phone or computer will save time and effort when you come to complete your tax return.

Take some time out to gather all the information you will need to help you prepare your tax return, including invoices and receipts for work-related expenses and any bank/credit card statements that contain items of work-related expenses that you no longer have (or never had) receipts or invoices for.

If you're not sure if it's claimable, collect the receipt or invoice anyway and discuss it with your tax agent.

If you don't have the paperwork, you can't claim a deduction, so it makes sense to set aside this time in advance of the end of the financial year to spare yourself a stressful document hunt while you're in the process of getting your return prepared!

In addition, if you're claiming any expenses that have a work-related element and a private element (such as for the use of a personal mobile phone) set some time aside to work out what a reasonable apportionment is for the work-related bit.

2. Claim last-minute tax deductions before June 30

As we've not yet reached the end of the financial year, it's not too late to generate some additional tax deductions this tax year. Here are some quick wins:

• If you have any professional subscriptions or union fees due, pay them by June 30 and you can claim the deduction for the whole amount this year.
• Charitable donations are tax deductible - anything over $2, with a receipt, paid to a charity registered as a deductible gift recipient (which covers most major charities) will be deductible.
• If you use a bag to carry work-related items such as a laptop, tools or paperwork, you may be able to claim the work-related portion of the cost.

Beyond those, if you have some spare cash you could look at making a personal contribution into your super fund.

Provided the total amount of your contributions (including the contributions made on your behalf by your employer) does not exceed $30,000, this can be a great way to boost your retirement savings and claim a tax deduction for the personal contribution.

The payment must be made by June 30, and you need to advise your super fund that you've made the payment by the time you lodge your return (your super fund or accountant can give you guidance on how to complete the form and there's a standard form on the ATO website.

3. Consider selling losing investments

If you've disposed of shares or any other form of investment and you know you've made a capital gain, you may also want to take a look at your investment portfolio and consider disposing of any assets which you know are sitting at a loss.

The resulting capital losses can be offset against the capital gain.

Be careful if you sell shares sitting at a loss and then buy them back in the new tax year though.

The ATO takes a hard line against so-called "wash sales", where assets are sold and then substantially identical assets are repurchased shortly afterwards.

The ATO regard the purchase and sale as effectively the same asset and have issued a Tax Ruling which states that they can apply the anti-avoidance provisions to cancel any tax benefits and apply penalties.

4. Use a tax agent to maximise your refund

There's a reason 70% of Australians use a tax accountant to prepare their tax return: tax is complicated.

Get your tax return wrong and the comeback is on you, either in the form of a lower refund or a penalty from the ATO.

Many people find it less stressful to pass on their information to a tax accountant and leave it to the accountant to complete their return, safe in the knowledge that the return will be accurate and complete.

An experienced agent will usually be good at sniffing out those obscure tax deductions you didn't know you could claim so they can often pay for themselves several times over.

Best of all, the tax agent's fee is also tax-deductible.

10 ways to maximise your tax refund

• Gather receipts
• Claim work-from-home expenses
• Update your car logbook
• Track mobile phone use
• Donate to charity
• Prepay deductible expenses
• Claim work bags
• Make super contributions
• Offset capital gains
• Speak to a tax agent

1. Gather receipts and records for tax deductions

Take some time out to gather together all the information you will need to help you prepare your tax return.

This includes invoices and receipts for work-related expenses and any bank/credit card statements that contain items of work-related expenses that you no longer have (or never had) receipts or invoices for.

If you're not sure if it's claimable, collect together the receipt or invoice anyway and discuss it with your tax agent.

If you don't have the paperwork, you can't claim a deduction so it makes sense to set aside this time in advance of the end of the financial year to spare yourself a stressful document hunt while you're actually in the process of getting your return prepared!

In addition, if you're claiming any expenses that have a work-related element and a private element (such as for the use of a personal mobile phone) set some time aside to work out what a reasonable apportionment is for the work-related bit.

Did you know?

A new $1000 instant tax deduction is on the way, allowing millions of workers to claim a $1000 deduction without keeping receipts for work-related expenses. Most Australians are expected to save about $205. It will first be available when lodging a 2026-27 tax return in 2027.

2. Claim working from home expenses and office equipment

If you are in employment but work from home, either occasionally or all the time, you are entitled to deductions for costs arising from working at home.

The expenses that you can claim include:

• Heating, cooling and lighting
• Cleaning costs
• Decline in value (depreciation) of home office furniture and fittings, office equipment and computers (for items over $300)
• Computer consumables, stationery, telephone and internet costs
• Items of capital equipment (such as furniture, computers and associated hardware and software) which cost less than $300 can be written off in full immediately

With many retailers running end of financial year specials, any purchases you make now can be deducted in this year's tax return so from a cash flow point of view, you can minimise the time between purchase and tax deduction.

Make your claim using the work-related portion of actual costs or the ATO's 70 cents per hour fixed rate - you need to have a record (for example, timesheets, rosters or a diary) of your work from home hours for the entire year using this method.

3. Update your log book

If you use the log-book method, now is the time to check that your log-book is up to date and that you have all the receipts, invoices and records of journeys which you will need to calculate and substantiate your claim.

If you use the cents per kilometre method, you will still need a record of all work-related journeys during the year.

The ATO continues to scrutinise work-related car expense claims and taxpayers should ensure they have appropriate records to support any deduction.

4. Keep a mobile phone log

If you used your personal mobile phone for work purposes, you can claim a deduction for the business-related use.

Make sure you have your phone bills collected together and have kept a log of your business/personal use over a four-week period.

That percentage can then be applied to the whole year.

Remember, you can't claim for mobile phones if you have made a claim for working from home expenses using the 70 cents per hour rate; included in that rate is an element that recognises mobile phone use and therefore a separate claim is "double dipping", which is firmly on the ATO's radar!

5. Donate to charity

Make a last-minute charitable donation.

You can claim a deduction for donations of more than $2 to a registered charity provided you have a receipt for the donation.

6. Prepay some expenses

You can claim a tax deduction this year for expenses which wholly or partly relate to next year.

So, if you have some spare cash, consider paying things like union fees, professional subscriptions and annual insurance premiums in advance in order to accelerate the deduction.

7. Claim a tax deduction for work bags and briefcases

If you use a bag to carry work-related items such as a laptop, tools or paperwork, you may be able to claim the work-related portion of the cost.

8. Make a tax-deductible super contribution

If you have some spare cash, look at making a personal contribution into your super fund.

Provided the total amount of your contributions (including the contributions made on your behalf by your employer) does not exceed $30,000, this can be a great way to boost your retirement savings and claim a tax deduction for the personal contribution.

Some people with a total super balance below the relevant threshold may also be eligible to use unused concessional contribution caps from previous years.

The payment must be made by June 30 and you need to advise your super fund that you've made the payment by the time you lodge your tax return (your super fund or accountant can give you guidance on how to complete the form and there's a standard form on the ATO website.

9. Offset capital gains against capital losses

If you've disposed of shares or any other form of investment and you know you've made a capital gain, take a look at your investment portfolio and consider disposing of any assets which you own which you know are sitting at a loss.

The resulting capital losses can be offset against the capital gain.

Be careful, though, if you sell shares sitting at a loss and then buy them back in the new tax year.

The ATO takes a hard line against so-called "wash sales".

This refers to the sale of an asset before the year-end and the purchase of a substantially identical asset immediately after the year-end.

The ATO regard the purchase and the sale as effectively the same asset and have issued a Tax Ruling which states that they can apply the anti-avoidance provisions to cancel any tax benefits and apply penalties.

10. Seek expert help

Speak to a tax agent.

They can identify exactly what you need to do to get into shape for the next tax season and maximise your deductions.

Reader question

My name is Qi and I'm a long-time reader of Money. My life - and my financial situation - is unconventional and I would value your advice.

I'm 37 and a few years ago I transitioned from a career as a lawyer to fine pastry making. My goal is to be a master craftsperson, like my grandfather.

Financially, things look stable on paper.

No debt aside from HECS.

A paid-off apartment valued at about $800,000.

Super of $198,000, with a $300 contribution per fortnight.

Cash savings of $64,440 in Australia and £56,000 ($105,000) in a UK account.

ETF investments of $8000, with $500 invested per fortnight.

However, my lifestyle means I often spend two to three months at a time with little to no income.

My biggest concern isn't for myself, but for my mum who is in her mid-60s. She liquidated her savings and super to give to my dad, who 'invested' it all in a pyramid scheme. They are separated now and I want to ensure I can support her, if needed.

I'm unsure how best to plan for that, given my lifestyle.

So how should someone like me, who values learning and mobility over stable income, structure their finances? What would you suggest I do with my savings? How do I balance long-term security with a non-linear career?

I do hope to start my own business, but for now my focus remains on developing mastery in my craft. I want to have lived a rich life, but also be able to later on financially support my mum. - Qi

Paul's response

Goodness, Qi.

I think that at the age of 37 you have already lived a very rich life.

What a good call on your part to build investments and pay off your apartment, rather than focusing on paying off an interest-free student loan (HECS).

Who knows, as a master craftsperson, you may well end up with a chain of profitable stores, in which case your student debt would soon disappear anyway.

As I am sure you have calculated, with money you control what you can.

Where you have saved me many words is that you have used your logical lawyer's mind to build a financial plan as good as I could produce, and probably better.

Buying and paying off an apartment was so important. Living your dreams is one thing, but if things go wrong later in life through health or misfortune, living in a car is not fun.

I am sure you knew this before you made your call to become an apprentice fine pastry maker.

Your apartment gives you security for your lifetime accommodation. It will grow in value over time and, of course, can be rented if you are overseas for longer periods, generating valuable cashflow.

Then you have your super of $198,000 and, very sensibly, you are adding $300 a month. If you follow this strategy, based on very long-term investment returns, you'll have about $1.5 million at age 65.

You also have cash of $64,440. With the recent rate rise that should be earning about 4.8% and, with your long periods of low or no income, it's a sensible cash reserve.

There is also your £56,000 ($105,000).

Looking at your ETF investments with your extra $500 a fortnight, if you keep doing that, without indexing the $500 a fortnight, history indicates that your ETF investment would grow to about $1 million in today's money.

Frankly, all you need to do is keep doing what you are doing and you not only have a creative career, but a clear path to financial security.

All this assumes your career as a craftsperson. Continuing with lifetime learning does not generate much additional income.

I appreciate that you have gone down a somewhat unconventional path, but it sounds like a lot of fun.

I often hear from people who are living their passion, but few are as well organised as you are.

I could suggest investing some of the cash you have here and in the UK, but in those times when you earn very little, I'd prefer you kept up your regular contributions to super and ETFs.

Let's talk about your mum.

I am devastated that she gave her savings and super to your father.

I am assuming she owns a home and, with no savings, at her likely qualification age of 67 she will draw a full Age Pension, with pensioner health benefits. This would come to about $31,000 a year.

An option for her when she receives her pension is to apply for the Home Equity Access Scheme.

This is a terrific product, providing a pensioner clearly understands how it works.

The government currently charges a modest 3.95% p.a. on the amount borrowed, secured against her home, which can be up to a maximum of 150% of her pension.

Obviously, the amount a pensioner draws, plus the 3.95% interest, must be repaid. This is usually done on the sale of the home or from the estate.

Here your training will be very valuable to your mum.

I would doubt a pensioner would need to borrow another 150% of the pension. But let's say she borrowed about 50% of her pension, an additional $15,000 a year. This would make a huge difference to her lifestyle.

I don't see you needing to inherit her home. Your financial path looks solid.

But you may have siblings who need this money in years to come. Those personal matters I will leave to you, but the Home Equity Access Scheme is worth a look.

Another path is that based on your projected assets at age 65, you could provide her with an extra $13,000 a year, which I appreciate is a number I just made up, by pausing your $500 a fortnight into ETFs.

This $500 a fortnight will be important to you in decades to come.

You're a lawyer, you could document this and treat it as a reverse mortgage supplied by you and repayable from the estate.

But I think the first port of call is the Home Equity Access Scheme.

Qi, I have much enjoyed pondering your question.

But most of all, I admire you quitting a powerful job with high financial rewards to follow a life as a master craftsperson, particularly in pastry.

I do love pastry, and my very best wishes to you and your mum.

What to read next

• How much super do you need for a comfortable retirement?
• Ask Paul: Should I pay off HECS or save for a home?
• How does a reverse mortgage work in Australia?
• Why family finances work differently for migrants
• Four questions you need to ask yourself before changing jobs

The Australian government is backing a Greens' policy to put a stop on self-managed superannuation funds (SMSFs) from purchasing residential properties with any capital assistance, arguing the sector is currently gating nearly two million properties from first homebuyers.

What is changing for SMSF property investors?

The Greens are backing amendments that would ban self-managed super funds from using limited recourse borrowing arrangements (LRBAs) to purchase residential property.

An LRBA protects the SMSF as a whole by safeguarding other assets held by the SMSF from the lender if the loan defaults.

Aiming to pass the bill in the coming fortnight, it described the act as an exploitation of a "loophole" where investors use SMSFs to buy up tax-advantaged properties and proposed to remove ministerial discretion that would allow a minister to wind back these reforms.

However, the Greens argue grandfathering existing arrangements will allow investors to continue benefiting from tax concessions and leave around 1.7 million properties in investor hands rather than making them available to prospective first-home buyers.

Greens say reform will help first-home buyers

Greens leader Larissa Waters criticised Labor's "low ambition" to fixing the housing crisis.

"... by grandfathering in wealthy property investor tax perks Labor has once again chosen to put the 1% over the millions of people trying to buy their first home," Waters says.

"Backing this bill puts an end date on these tax breaks - but Labor's low ambition means that inequality and the housing crisis will be worse for longer. This enduring housing crisis will now be squarely of Labor's design.

"We are glad that the government has listened to some of the concerns raised through the inquiry process by the Greens and experts, but Labor has again ignored young people and renters."

Meanwhile, Greens senator Nick McKim added while the government is making small steps in the right direction, it has missed a "generational opportunity" to fix the burgeoning housing pressure.

"After four years in government and multiple failures to act, Australia's housing crisis is now Labor's housing crisis," McKim says.

"Labor has chosen to skew this package to benefit wealthy property investors in every way they can. They have delayed relief for renters, pulled up the ladder on first homebuyers, and let the 1% keep $33bn in tax breaks."

In response, SMSF Association chief executive Peter Burgess was disappointed in the decision, claiming that LRBAs pose "no material risk" to the super system under appropriate circumstances.

"Banning LRBAs for residential property represents a clear departure from nearly two decades of settled policy. If property spruikers and high-pressure sales tactics are the issue, the answer is to target that conduct directly and not trade away LRBAs investing in residential property just to secure passage of their Federal Budget tax measures," Burgess says.

"LRBAs are a legitimate investment tool that, when used appropriately and under existing regulatory safeguards, allow individuals to invest in assets through their self-managed superannuation fund that they may not otherwise be able to do.

"The problem is not the borrowing structure itself, but the conduct of those who aggressively market unsuitable property investments and make unrealistic claims about returns and retirement outcomes."

Burgess also highlighted a consultation on the reforms should be launched, and a grandfathering provision should be on offer as many investors and SMSFs have planned their investments based on the existing rules.

"Many investors and SMSF trustees have made legitimate financial commitments based on the existing rules. Any changes to LRBA rules should include appropriate consultation and grandfathering provisions or a substantially longer implementation period to ensure investors are not left high and dry midway through a significant financial commitment," Burgess added.

Will existing SMSF property investments be affected?

Meanwhile, SMSF Alliance managing director David Busoli echoed Burgess' concerns, stating the change represents another "broken promise" from the government.

"The Greens have been implacably opposed to SMSFs generally and limited recourse borrowing in particular, even though the use of LRBAs has been, in the main, appropriate and a legitimate vehicle for superannuation members, including younger members, to save for their retirement," Busoli says.

"Also, demonstrably, the effect on the availability of homes for new home buyers has been negligible.

"The change will not be retrospective and will not affect existing contracts or, presumably, those entered into before the measure becomes law though details are yet to clarified."

This article first appeared on Financial Standard

As consumers, we have the right to buy whatever is on the shelves that meets our needs.

That raises two questions: 'What is the right purchase for us?' and, more fundamentally, 'Do we really need the purchase at all?'

For example, many of us are tempted to buy more clothing than we really need.

As a result, globally, we bought 60% more garments in 2014 than in 2000 and kept the clothes for only half as long.

The environmental impact of the clothes we use or don't use, keeps piling up.

The fashion industry is second only to agriculture in its use of water and is responsible for 2% to 8% of global carbon emissions. Six out of every seven tonnes of the textiles it uses goes to landfill in the same year. Washing synthetic clothing sends microplastics to the ocean.

Similarly, while an estimated 733 million people are still going hungry, about 27% of all food produced is lost as wastage through the supply chain, and another 50% of what's left is lost after it reaches retail shelves.

Food waste in landfills alone contributes 8% to 10% of agricultural carbon emissions.

Obviously, we need clothes and food, but we might reconsider those needs from time to time and how they are fulfilled. We might decide that the carbon footprint of red meat or petrol cars is just too high.

Or, that a sustainably sourced and sold T-shirt is worth a little more than a T-shirt whose cotton comes at a heavy ecological cost and whose tailoring comes at a heavy human cost.

Or, that we can fully use what we buy and not let it rot at the back of the fridge or cupboard.

Ignorance may be bliss, but if you're reading this it's unlikely to be enough. How can we find out what's going on without losing our weekends and without losing optimism?

The main questions seem to be:

What everyday items might you avoid or reduce buying? 

When you go into the facts, there's plenty of downside to farmed salmon, very cheap clothing and disposable coffee cups.

We'll need them from time to time, but we would argue against making them an indispensable part of your world.

Are your go-to retail brands part of the problem or part of the solution?

We give a large slice of our weekly budgets to grocery stores, banks, energy companies, phone companies and the like.

Similarly, we put a large slice of our income to expensive one-off purchases like a car or refrigerator. S

ome of these companies are making an effort to reduce their social and environmental impact, others less so.

How can you check who does what?

What can you do to help level the playing field for companies that are seeking solutions?

At the moment, companies that responsibly bear the real cost of their business are undercut at the checkout by those who do not.

We argue that the best companies will win in the end, but a lot of harm is being done by their competitors in the meantime.

Letting companies know what you think may be one thing, but in the end only regulation can set a level playing field.

However, that regulation may just be the lowest bar the government believes it can set at the time, and not necessarily the standard needed to address the issues.

A shortcut may be to do an ESG 'stocktake' every year or so.

Look up the ESG ratings of the companies you buy from, or might consider, and see which of them are leading or improving, which means they are taking sustainability seriously, and looking to minimise avoidable harm where possible.

Make choices based on either their total ESG rating, or if you prefer the social, environmental or governance rating, depending which means the most to you. Stick with your choices for the year, and then take a look again next year.

Alternatively, you could see whether your company is certified by B-Corp. B-Corp Certification of a business indicates that it meets performance, accountability and transparency standards on all sorts of ESG factors, from employee benefits and charitable giving, to supply chain practices and input materials.

Seeing through greenwashing

If a company claims that its product is 'sustainable', then that claim must be substantiated by someone else whose word can be trusted. In most industries, there are frameworks for third-party certification that the product is being made or grown in a reasonably sustainable way.

If there is no such verification, then ignore the claim, and treat the product and the company that makes it with a little more suspicion.

Then there are the advertising campaigns by whole industries who want to keep things the way they are - profits for them, and losses (of natural, social, human or financial capital) for others. They are 'externalising' the costs - imposing them on others, while 'internalising' the profits.

Or, as the saying goes, 'private gain and public pain'.

The examples of dishonest campaigns since consumerism really kicked in after World War II are legionary and legendary.

In 1946, in response to an epidemic of lung cancer, the R. J. Reynolds Tobacco Company advertised through newspapers and medical journals that "More doctors smoke Camels than any other cigarette".

While asbestosis was formally identified in the 1930s, asbestos was advertised as the 'magic material' to protect farms and homes well into the 1970s.

In 2011, the industry peak body Clubs Australia fought back against any form of restrictions on poker machines on the basis that it was 'un-Australian'.

That may be true given that Australians then (as now) comfortably led the world in gambling losses per capita, but we're not sure that's what the campaign meant.

Those campaigns are now being reined in, on some platforms.

In 2021, Google announced that it will "prohibit ads for, and monetisation of, content that contradicts well-established scientific consensus around the existence and causes of climate change".

Your responsibility, not ours

There's another industry sleight of hand it is worth keeping an eye on. Rather than an industry taking responsibility for the public losses it may cause, it blames you - in the nicest possible way, of course.

Consider what all the following campaigns have in common.

Support from the fast-food industry for a personal fitness campaign 'Life. Be in it'.

A campaign by BP for us to all measure a new thing called our 'carbon footprint'.

A campaign by plastics companies to 'Do the Right Thing' when it comes to putting our garbage in the bin.

A campaign by the gambling industry to 'gamble responsibly'.

A campaign by the global alcohol industry to 'drink responsibly'.

What they have in common is that a complex public challenge is reduced to personal responsibility.

These industries seem to be saying 'If you are worried about what climate change/obesity/plastic pollution/gambling/alcohol is doing to your society or environment, watch your carbon/sugar/plastics/gambling/drinking manners. We'll just focus on what we do best: selling carbon/sugar/plastics/odds/drinks.

And, while we're doing that, we'll push back hard against any attempt to regulate our industries.

Avoiding harm 

All is not lost, however. There are some simple choices that do nothing to affect one's quality of life but help reduce social or environmental harm.

On the environmental front, we can all think twice before using single-use plastics, cheap gadgets, 'disposable' clothing, styrofoam and other non-recyclable plastics, single-use batteries, chemical-laden cleaning products, paper towels, non-recyclable coffee pods and air fresheners.

A quick web search will offer any number of lists.

As we noted earlier, throwaway clothing may be the most problematic item.

We'd also like to make mention salmon. It may seem an environmentally friendly protein alternative to red meats, but unfortunately that is unlikely to be the case.

In his ground-breaking book Toxic, author Richard Flanagan sets out the grim existence of retail salmon that is factory produced in marine pens.

Their nitrogen-rich diet is defecated by the tonne, obliterating all sea life around them. Lacking open sea nutrition, the fish are limp grey when harvested, and dyed pink to the retailer's order.

On the social front, we can think twice about cheap gadgets and the sources of our electronics, food, footwear, jewellery, toys and furniture. All these industries have several examples of child or slave labour being used to make the products.

Slavery is not a thing of the past.

The non-profit organisation Walk Free estimates that 50 million people were working in slavery in 2004 including 28 million people in forced labour and 22 million in forced marriage.

About one in five were in working under conditions of forced commercial sexual exploitation, and about one in 10 were children. Alternatively, people are working in wealthier countries like the US, the UK and Australia under conditions of modern slavery: they may not have full working visas, and work to survive without any union or regulatory support.

Checking out your brands

At the time of writing (late 2024), the brand identity of Tesla was hitting some road bumps.

Tesla cars led the world in performance electric motoring, and in home batteries to store electricity generated from rooftop solar. Now, the very people who are most likely to buy those things - wealthier people who are concerned about climate change but appreciate good design - are embarrassed that their expensive and much-loved cars bear the brand of Elon Musk.

Musk's political values appear far from those he had when founding the company, and far from those of his customers.

Re-branding stickers are selling like hotcakes, declaring 'I bought this before Elon went crazy', or 'Anti-Elon Tesla Club', 'Elon eats my cats', or simply 'I regret this purchase'.

Tesla, it must be remembered, was at one point in 2021 valued at more than the rest of the global auto industry put together.

et even then there were signs all was not well with the company.

Despite very high environmental ratings, its overall ESG ratings were very low - below even that of Chevron, a major fossil fuel company.

This upset Musk, who decried ESG as 'the devil incarnate'.

But Tesla's low performance on governance issues (too much power in the hands of the chief executive) and social issues (worker disputes and conditions) were perhaps a sign of things to come.

It's rare that such a major brand has been dropped so quickly and completely by its own customers.

In the same industry, Volkswagen (VW) lost customer support when it was found to have cheated on its emissions testing.

In 2015, VW admitted to the US Environmental Protection Agency (EPA) that it had used 'defeat devices' in its diesel cars to disguise actual emissions data, enabling it to meet emission targets and regulatory standards. The actual emissions were up to 40 times more than that recorded by the cars' software and in testing.

When the EPA notified markets that it was halting certification of VW's 2016 models, VW's global share price fell 38.2%, and its earnings per share fell 382% (that is, a previous profit turned into a loss 2.82 times as great).

Nudging change

Companies do respond to customers.

It may not be immediate, or exactly what you're looking for, but your voice adds up.

An NGO may be running a campaign against a government and/or industry on the issue that concerns you.

Joining campaigns in whatever works for you is another way of nudging for change.

Governments respond too, hard as that may be to believe at times. So, if you want something done, you may need to get in touch or even get involved.

This is an edited extract from Chapter 15, 'Buying things without harming others', from ESG Unlocked: How successful companies and investors can build our natural, social, human and financial capital. (De Gruyter, $45). Enter now for your chance to win a free copy.

Whether you're reading a payslip, comparing super funds, investing, or making a complaint, this regularly-updated guide breaks down common and complex financial language so you can understand what really matters.

Bookmark this page (last reviewed June 2026) and use it as your go-to guide to decoding the language of money.

Most searched financial terms

A

Account-based pension (ABP)

An account-based pension is a regular income stream purchased with superannuation savings, typically after retirement. It allows retirees to draw down their super while benefiting from investment earnings.

Accrued interest

Accrued interest is the interest that has accumulated on a loan or investment but has not yet been paid or received. It is commonly used in bonds and savings accounts to reflect earnings over time.

Administrative Review Tribunal (ART)

The Administrative Review Tribunal (ART) independently reviews decisions made by Australian government departments, agencies and ministers. It replaces the Administrative Appeals Tribunal (AAT).

Afterpay

Afterpay is a buy-now-pay-later (BNPL) service that allows consumers to purchase items and pay for them in instalments over time. Other BNPL services include Zip, Klarna and Humm.

Amortisation

Amortisation refers to the gradual repayment of a loan over time through regular payments that cover both principal and interest. It also applies to the depreciation of intangible assets over their useful life.

Annual leave loading

Annual leave loading is an additional payment (usually 17.5%) made to eligible employees when they take annual leave. It compensates for the loss of potential overtime or penalty rates during leave.

Asset allocation

Asset allocation is the strategy of dividing investments among different asset categories, such as stocks, bonds, and cash. It aims to balance risk and reward based on an investor's goals and risk tolerance.

Automatic teller machine (ATM)

An automatic teller machine (ATM) is an electronic banking outlet that allows customers to perform basic transactions without the need for a branch representative. Common functions include cash withdrawals, deposits, and balance inquiries.

Australian Banking Association (ABA)

The Australian Banking Association (ABA), formerly the Australian Bankers' Association, is the trade association for the banking industry.

Australian Bureau of Statistics (ABS)

The Australian Bureau of Statistics (ABS) is Australia's national statistical agency, providing data on key aspects of the economy, society and environment.

Aged Care Assessment Team (ACAT)

The Aged Care Assessment Team (ACAT) assesses older Australians to determine eligibility for government-funded aged care services.

Australian Competition and Consumer Commission (ACCC)

The Australian Competition and Consumer Commission (ACCC) is the Australian government's chief competition regulator.

Australian Chamber of Commerce and Industry (ACCI)

The Australian Chamber of Commerce and Industry (ACCI) is the national voice for Australian businesses and commerce.

Australian Consumer Law (ACL)

Australian Consumer Law (ACL) prohibits certain business practices and creates various enforceable rights for consumers to ensure they are protected when they buy goods and services.

Australian Charities and Not-for-profits Commission (ACNC)

The Australian Charities and Not-for-profits Commission (ACNC) is the national regulator of charities.

Australian Council of Social Service (ACOSS)

The Australian Council of Social Service (ACOSS) is a national advocate supporting people affected by poverty, disadvantage and inequality, and the peak council for community services nationally.

Authorised credit representatives (ACR)

Authorised credit representatives (ACRs) are individuals authorised to engage in specified credit activities on behalf of a credit licensee.

Australian Council of Trade Unions (ACTU)

The Australian Council of Trade Unions (ACTU) is the largest peak body representing workers in Australia. It is a national trade union centre comprising 46 affiliated unions and eight trades and labour councils.

Authorised deposit-taking institution (ADI)

Authorised deposit-taking institutions (ADIs) are financial institutions, such as banks and credit unions, that are licensed to accept deposits from the public.

Australian Financial Complaints Authority (AFCA)

The Australian Financial Complaints Authority (AFCA) is a free and independent ombudsman service that resolves complaints by consumers and small businesses about financial firms.

Australian Financial Counselling and Credit Reform Association (AFCCRA)

The Australian Financial Counselling and Credit Reform Association (AFCCRA) was an organisation advocating for financial counselling and credit reform in Australia. AFCCRA changed its name to Financial Counselling Australia (FCA) in 2011.

Australian Financial Markets Association (AFMA)

The Australian Financial Markets Association (AFMA) is the industry body representing participants in Australia's financial markets and providers of wholesale banking services.

Australian Financial Services Licence (AFSL)

An Australian Financial Services Licence (AFSL) is a licence given by ASIC that allows people or companies to legally carry on a financial services business. This includes selling, advising or dealing in financial products.

Attorney-General's Department (AGD)

The Attorney-General's Department (AGD) provides legal services and policy advice to the Australian Government.

Australian Government Disaster Recovery Payment (AGDRP)

The Australian Government Disaster Recovery Payment (AGDRP) is a one-off financial assistance payment for people affected by major disasters.

Annual general meeting (AGM)

Annual general meetings (AGMs) of shareholders are required by law where directors inform shareholders of company performance and future prospects. Shareholders vote on board elections and significant company issues.

Anti-money laundering/counter-terrorism financing (AML/CTF)

Anti-money laundering/counter-terrorism financing (AML/CTF) refers to regulations aimed at preventing money laundering and terrorism-financing activities.

Aggregate market value (AMV)

Aggregate market value (AMV) is the total value of all outstanding equity shares, according to the market's evaluation.

Australian National Audit Office (ANAO)

The Australian National Audit Office (ANAO) audits government agencies to ensure accountability and transparency.

Annual percentage rate (APR)

Annual percentage rate (APR) represents the yearly interest rate charged on loans or earned on investments.

Australian Prudential Regulation Authority (APRA)

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry.

Australian real estate investment trust (A-REIT)

An Australian real estate investment trust (A-REIT) is an unlisted Australian wholesale property fund which allows investors to invest in large commercial property assets

Australian Small Business and Family Enterprise Ombudsman (ASBFEO)

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) is an independent advocate for small business owners.

Association of Superannuation Funds of Australia (ASFA)

The Association of Superannuation Funds of Australia (ASFA) is the peak policy, research and advocacy body for Australia's superannuation industry.

Australian Securities and Investments Commission (ASIC)

The Australian Securities and Investments Commission (ASIC) is Australia's corporate, markets and financial services regulator.

Australian Securities Exchange (ASX)

The Australian Securities Exchange (ASX) is an integrated securities exchange which acts as a market operator, clearing house and payments system facilitator.

Asset-test exempt (ATE)

Asset-test exempt (ATE) refers to specific assets that are excluded from means tests used to determine eligibility for government benefits, usually through Centrelink.

Australian Taxation Office

The Australian Taxation Office (ATO) is the principal revenue collection agency of the Australian Government. It is responsible for administering and enforcing tax laws, managing the superannuation system, and overseeing the Australian Business Register. The ATO ensures that taxes are collected fairly and efficiently, which helps fund essential public services like healthcare and infrastructure. Most Australians deal with the ATO when lodging their tax return or managing their super.

Australian Transaction Reports and Analysis Centre (AUSTRAC)

The Australian Transaction Reports and Analysis Centre (AUSTRAC) is the Australian Government agency responsible for detecting, deterring and disrupting criminal abuse of the financial system to protect the community from serious and organised crime.

Australian Trade and Investment Commission (Austrade)

The Australian Trade and Investment Commission (Austrade) is a government agency that helps Australian businesses export products and services and attract international investment to Australia.

Australian Workplace Equality Index (AWEI)

The Australian Workplace Equality Index (AWEI) is the national benchmark for LGBTQ+ workplace inclusion in Australia that surveys employees to gauge the overall impact of inclusion initiatives.

B

Balance sheet

A balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time. It provides a snapshot of financial health and is used to assess liquidity and solvency.

Basis point (BPS)

A basis point is one-hundredth of a percent (0.01%). It's used to show small changes in interest rates or investment returns.

Bear market

A bear market is when share prices fall 20% or more from recent highs. It often signals a downturn or negative investor sentiment.

Beneficiary

A beneficiary is a person or entity entitled to receive benefits from a financial product, such as a superannuation fund, insurance policy, or will. They are designated by the account holder or policy owner.

Blue-chip stocks

Blue-chip stocks are shares in large, reputable companies with a history of stable earnings and reliable performance. They are considered lower-risk investments and often pay regular dividends.

Budget deficit

A budget deficit happens when spending is higher than income. Governments often run deficits when expenses exceed tax revenue.

Bond

A bond is a fixed-income investment where an investor lends money to an entity (typically government or corporate) for a defined period at a fixed interest rate. Bonds are used to raise capital and are considered relatively stable investments.

Break-even point

The break-even point is the level of sales or revenue at which total costs equal total income, resulting in neither profit nor loss. It's a key metric in business planning and financial analysis.

Broker

A broker is an individual or firm that acts as an intermediary between buyers and sellers in financial markets. Brokers may offer advice and execute trades in exchange for a commission.

Business Activity Statement (BAS)

A Business Activity Statement (BAS) is a form submitted to the ATO to report tax obligations.

Business Council of Australia (BCA)

The Business Council of Australia (BCA) is an industry association that comprises the chief executives of more than 100 of Australia's biggest corporations.

Buy now, pay later (BNPL)

Buy now, pay later (BNPL) payment services such as Afterpay allow customers to pay in instalments over time, instead of paying the full amount upfront.

C

Chartered Accountants Australia and New Zealand (CA ANZ)

Chartered Accountants Australia and New Zealand (CA ANZ) is a professional accounting body with more than 130,000 members in Australia, New Zealand and overseas.

Compound Annual Growth Rate (CAGR)

Compound Annual Growth Rate (CAGR) measures the mean annual growth rate of an investment over time.

Compound interest

Compound interest is interest earned on the initial deposit and the interest already earned (whereas simple interest is only on the principal). For a loan, this means you pay interest on the original loan amount plus any interest that has already been added to your balance.

Comprehensive Credit Reporting (CCR)

Comprehensive Credit Reporting (CCR) provides detailed credit information to lenders for better risk assessment.

Child care subsidy (CCS)

The Child Care Subsidy (CCS) is a government payment that helps families with the cost of approved childcare services.

Cashless debit card (CDC)

The cashless debit card (CDC) was a government program that restricted spending on welfare payments, preventing purchases of alcohol, gambling services and cash withdrawals.

Consumer Data Right (CDR)

The Consumer Data Right (CDR) gives individuals greater control over their personal data, allowing them to share it with trusted service providers, particularly in the banking sector.

Committee for Economic Development of Australia (CEDA)

The Committee for Economic Development of Australia (CEDA) is an independent organisation that promotes economic and social policy reforms to drive Australia's growth and development.

Chief executive officer (CEO)

A chief executive officer (CEO) is the highest-ranking role within an organisation, charged with managing the direction of the company. A CEO is often the public face of the company.

Chief financial officer (CFO)

A chief financial officer (CFO) is the person responsible for managing a company's financial operations and strategy.

Capital gains tax (CGT)

Capital gains tax (CGT) is the tax you pay on profits from disposing of assets including investments, such as property, shares and cryptocurrency.

Clearing House Electronic Sub-Register System (CHESS)

The Clearing House Electronic Sub-Register System (CHESS) is ASX's settlement system and central register for electronic transfer of share ownership and associated cash payments.

Chief information officer (CIO)

A chief information officer (CIO) is the executive responsible for overseeing information technology strategy and implementation.

Chief operating officer (COO)

A chief operating officer (COO) is the executive responsible for overseeing the daily operations of a business. A COO is considered to be second in the chain of command after the CEO.

Certified practising accountant (CPA)

A certified practising accountant (CPA) is a finance, accounting and business professional with a specific qualification. All CPAs are accountants, however not all accountants are CPAs.

Consumer Price Index (CPI)

The Consumer Price Index (CPI) measures household inflation and includes statistics about price changes for categories of household expenditure.

Child Support Agency (CSA)

The Child Support Agency (CSA), which currently operates within Services Australia, helps separated parents manage and receive child support payments for the benefit of their children.

Commonwealth Superannuation Corporation (CSC)

The Commonwealth Superannuation Corporation (CSC) manages superannuation funds for Australian government employees.

Compensation Scheme of Last Resort (CSLR)

The Compensation Scheme of Last Resort (CSLR) provides compensation to eligible victims of financial misconduct who have not been paid, typically because the financial institution involved in the misconduct has become insolvent.

Commonwealth supported place (CSP)

A Commonwealth supported place (CSP) is a subsidised place at an Australian university or approved higher education provider where part of a student's fees are paid by the government.

Chief technical officer (CTO)

A chief technical officer (CTO) is the executive in charge of an organisation's technical operations, opportunities and challenges.

D

Daily accommodation payment (DAP)

Daily accommodation payment (DAP) is an ongoing, non-refundable payment option for aged care residents, covering accommodation costs on a per-day basis.

Defined Benefit Division (DBD)

A defined benefit division is a superannuation plan where benefits are calculated based on salary and service.

Defined Contribution (DC)

A defined contribution is a superannuation plan where contributions are defined but benefits depend on investment performance.

Dollar cost averaging (DCA)

Dollar cost averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of market ups and downs.

Diversity, equity and inclusion (DEI)

Diversity, equity and Inclusion (DEI) refers to workplace policies and practices that promote representation, fairness and a sense of belonging for all employees.

Defence Housing Australia (DHA)

Defence Housing Australia (DHA) provides housing services to Australian Defence Force personnel, managing and leasing properties across Australia.

Disability Support Pension (DSP)

The Disability Support Pension (DSP) is a financial support payment for people with a permanent physical, intellectual or psychiatric condition that prevents them from working.

Department of Veterans' Affairs (DVA)

The Department of Veterans' Affairs (DVA) is a government agency that provides services, support and financial assistance to Australian veterans and their families.

E

Employee assistance program (EAP)

An employee assistance program (EAP) provides employees with confidential counselling, support and services to address personal and work-related issues.

Earnings before interest, taxes, depreciation and amortisation (EBITDA)

Earnings before interest, taxes, depreciation and amortisation (EBITDA) measures the company's overall financial performance. It is an alternative way of measuring profitability to net income.

External dispute resolution (EDR)

An external dispute resolution (EDR) is a free, independent service for resolving disputes between consumers and financial firms. AFCA is an EDR scheme.

Electronic funds transfer at point of sale (EFTPOS)

Electronic funds transfer at point of sale (EFTPOS) is the electronic payment system that lets customers make a purchase using a credit or debit card or mobile wallet on their phone or a wearable device.

End of financial year (EOFY)

The end of the financial year (EOFY) is June 30, which marks the end of the 12-month fiscal year for business and tax purposes.

Earnings per share (EPS)

Earnings per share (EPS) is a measure of earnings attributed to each equivalent ordinary share over a 12 month period. It is calculated by dividing the company's earnings by the number of shares on issue.

Environmental, social and governance (ESG)

Environmental, social and governance (ESG) criteria are used to evaluate the impact of a company's operations on sustainability, social responsibility and corporate governance.

Exchange traded commodity (ETC)

Exchange traded commodities (ETCs) are exchange traded funds (ETFs) that invest in and track the performance of a commodity such as silver or gold rather than an equity index.

Exchange traded fund (ETF)

Exchange traded funds (ETFs) are investment funds designed to track the performance of an asset such as a share price index.

F

Financial Advice Association of Australia (FAAA)

The Financial Advice Association of Australia (FAAA) is the nation's largest professional association for financial planners.

Financial Claims Scheme (FCS)

The Financial Claims Scheme (FCS) is an Australian Government initiative that protects depositors by guaranteeing up to $250,000 per person per authorised deposit-taking institution (ADI) in the event the institution fails. It also provides limited protection for policyholders of general insurance companies, ensuring quick access to funds during financial distress.

Fringe Benefits Tax (FBT)

Fringe Benefits Tax (FBT) is a tax on non-salary benefits provided to employees.

First Home Guarantee (FHBG)

The First Home Guarantee (FHBG) is a part of the Home Guarantee Scheme that allows eligible first-home buyers to purchase a home with as little as a 5% deposit, without needing to pay for lenders mortgage insurance.

Family Home Guarantee (FHG)

The Family Home Guarantee (FHG) assists eligible single parents to purchase a home with a deposit as low as 2%, even if they have previously owned a home, under the Home Guarantee Scheme.

Fly in, fly out (FIFO)

Fly-in, fly-out (FIFO) refers to a work arrangement where employees travel to a remote job site for a set period before returning home, typically used in the mining industry in Australia.

Financial technology (fintech)

Financial technology (fintech) refers to innovative technologies used to improve and automate the delivery and use of financial services.

FOMO (fear of missing out)

FOMO or the fear of missing out is a feeling of anxiety stemming from the perception that others are experiencing better things than you.

Foreign Investment Review Board (FIRB)

The Foreign Investment Review Board (FIRB) advises the government on foreign investment policy and proposals.

Financial independence, early retirement (FIRE)

Financial independence, early retirement (FIRE) is a lifestyle and investing movement with the goal of gaining financial independence and retiring early.

Financial Services Council (FSC)

The Financial Services Council (FSC) represents Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks, licensed trustee companies and public trustees.

Family Tax Benefit (FTB)

The Family Tax Benefit (FTB) is a government payment designed to help families with the costs of raising children.

Funds Under Management (FUM)

Funds Under Management (FUM) is the total value of assets managed by an investment firm.

Foreign exchange (FX)

Foreign exchange (FX) refers to the global market for trading currencies, where the exchange rates between different currencies are determined.

G

Generally Accepted Accounting Principles (GAAP)

Generally Accepted Accounting Principles (GAAP) is a standard framework of accounting rules and procedures.

Gross domestic product (GDP)

Gross domestic product (GDP) is the total value of goods and services produced in a country over a specific period, used as an indicator of economic performance.

Global financial crisis (GFC)

The global financial crisis (GFC) refers to the period of extreme stress in global financial markets and banking systems between mid 2007 and early 2009.

General Insurance Code Governance Committee (GICGC)

The General Insurance Code Governance Committee (GICGC) is the independent body that monitors and enforces insurers' compliance with the General Insurance Code of Practice.

Goods and services tax (GST)

The goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.

H

Higher Education Contribution Scheme-Higher Education Loan Program (HECS-HELP)

Higher Education Contribution Scheme-Higher Education Loan Program (HECS-HELP) is a loan from the Australian Government that can be used to pay a student's contribution towards their tertiary studies.

Home Guarantee Scheme (HGS)

The Home Guarantee Scheme (HGS) is an Australian government initiative that helps eligible home buyers purchase a home with a smaller deposit, by providing a guarantee on part of the loan.

Holder identification number (HIN)

I

A holder identification number (HIN) is the unique number issued by the Australian Securities Exchange (ASX) that identifies you as a CHESS-sponsored shareholder with a broker.

Industry superannuation fund

Industry super funds are not-for-profit and return profits to members, generally offering lower fees. Originally for specific sectors, most are now open to everyone.

Insurance Brokers Code Compliance Committee (IBCCC)

The Insurance Brokers Code Compliance Committee (IBCCC) monitors adherence to the Insurance Brokers Code of Practice to help insurance brokers deliver high-quality service standards to consumers.

Insurance Council of Australia (ICA)

The Insurance Council of Australia (ICA) is the representative body for the general insurance industry.

International Energy Agency (IEA)

The International Energy Agency (IEA) is an international organisation currently consisting of 31 countries and 13 association countries, which provides policy advice and promotes energy security.

International Monetary Fund (IMF)

The International Monetary Fund (IMF) is an international organisation that promotes global financial stability and provides financial assistance to countries facing economic difficulties.

Interest-only loan (IO)

An interest-only loan (IO) allows the borrower to pay only the interest on the loan for a specified period, after which they must start repaying the principal along with the interest.

International Organisation of Securities Commissions (IOSCO)

The International Organisation of Securities Commissions Global (IOSCO) is the body of securities regulators promoting market integrity.

Initial public offering (IPO)

An initial public offering (IPO) is the process by which a private company offers shares to the public for the first time, allowing them to become publicly traded.

K

Key performance indicator (KPI)

A key performance indicator (KPI) is a metric used to evaluate success in achieving objectives.

Know your customer (KYC)

Know your customer (KYC) refers to the process by which businesses verify the identity of their clients to prevent fraud, money laundering and other financial crimes.

L

Least-cost routing (LCR)

Least-cost routing (LCR) is a payment processing method that allows businesses to process transactions through the network that charges the lowest fee.

Low exercise price options (LEPO)

Low exercise price options (LEPOs) are European-style options with a strike price of 1 cent, in the case of stock LEPOs, or 1 point, in the case of index LEPOs.

Listed investment company (LIC)

Listed investment companies (LICs) provide exposure to a basket of underlying securities, often shares, although increasingly there are funds providing exposure to other asset classes, such as fixed income.

Lenders mortgage insurance (LMI)

Lenders mortgage insurance (LMI) is a type of insurance paid by the borrower that protects the lender if the loan defaults.

Loan-to-value ratio (LVR)

The loan-to-value ratio (LVR) is a measure used by lenders to assess the risk of a loan, calculated by dividing the loan amount by the appraised value of the property, expressed as a percentage.

M

Market darling

A market darling is a stock or company that is highly favored by investors and analysts, often due to strong performance, growth potential, or positive sentiment.

Medicare levy surcharge (MLS)

The Medicare levy surcharge (MLS) is an additional tax for high-income earners in Australia who do not have private hospital cover.

Memorandum of understanding (MOU)

A memorandum of understanding (MOU) is a type of agreement between two or more parties.

N

Net asset value (NAV)

Net asset value (NAV) is the book value of a company's assets divided by the number of shares on issue.

National Credit Code (NCC)

The National Credit Code (NCC) is a national consumer protection regime that offers protections to individuals borrowing money from institutional lenders for non-business purposes.

National Debt Helpline (NDH)

The National Debt Helpline (NDH) is a free, independent and confidential financial counselling service.

National Disability Insurance Scheme (NDIS)

The National Disability Insurance Scheme (NDIS) provides funding and support to Australians with a permanent disability to help them live independently.

Negative gearing

Negative gearing is when your investment property costs more to run than it earns in rent, creating a taxable loss. You can usually offset that loss against your other income, reducing your overall tax bill.

Net flows

Net flows are the total money moving into or out of an investment fund over a period. Positive net flows mean more money is coming in than going out; negative means the opposite.

Non-fungible token (NFT)

Non-fungible tokens (NFTs) are a type of digital cryptoasset. They are digital certificates that authenticate a claim of ownership to an asset, and allow it to be transferred or sold.

No interest loans (NILS)

No interest loans (NILs) are safe and affordable interest-free loans that Australians at risk can use to pay for essentials such as appliances or rental bonds.

Net tangible assets (NTA)

Net tangible assets (NTAs) are calculated as the total assets of a company, minus intangible assets such as goodwill and less all liabilities.

O

Organisation for Economic Co-operation and Development (OECD)

The Organisation for Economic Co-operation and Development (OECD) is an international organisation, currently with 38 member countries, that aims to promote policies to improve the economic and social well-being of people worldwide.

Owner-occupied (OO)

Owner-occupied (OO) refers to a property that is the primary residence of the borrower, as opposed to an investment property.

Open Training and Education Network (OTEN)

The Open Training and Education Network (OTEN) is a provider of online and distance education and training across a variety of industries and fields offered by TAFE NSW.

Open Universities Australia (OUA)

Open Universities Australia (OUA), previously called the Open Learning Agency of Australia, offers online courses from a range of Australian universities, providing flexible education options for students.

P

Principal and interest loan (P&I)

A principal and interest loan (P&I) requires the borrower to make payments on both the loan principal and the interest charged on the outstanding balance over the term of the loan.

Pay As You Go (PAYG)

Pay As You Go (PAYG) is a system for paying income tax in installments throughout the year.

Product disclosure statement (PDS)

A product disclosure statement (PDS) is a document that financial service providers must provide to you when they recommend or offer a financial product.

Price-to-earnings ratio (PE)

Price-to-earnings ratio (PE) is the number of times the price covers the earnings per security over a 12-month period. Investors commonly use this ratio to measure the attractiveness of particular shares and to compare shares in one company with those in another.

Property Exchange Australia Limited (PEXA)

Property Exchange Australia Limited (PEXA) is a digital property settlement platform that allows for the online completion of property transfers and settlements.

Payment reference number (PRN)

A payment reference number (PRN) is a unique set of numbers and letters applied to a financial transaction such as a bank transfer, direct debit, a standing order or a payment made using a debit or credit card.

R

Real estate investment trust (REIT)

Real estate investment trusts (REITs) provide exposure to the value and rental income from properties owned by the trust.

Refundable accommodation deposit (RAD)

The refundable accommodation deposit (RAD) is a lump sum payment for accommodation in an aged care facility, which is refunded when the resident leaves or dies.

Regional First Home Buyer Guarantee (RFHBG)

The Regional First Home Buyer Guarantee (RFHBG) helps first-time home buyers purchase a home in regional areas of Australia with a reduced deposit, as part of the Home Guarantee Scheme.

Reserve Bank of Australia (RBA)

The Reserve Bank of Australia (RBA) is Australia's central bank and banknote-issuing authority.

Retail superannuation fund

Retail super funds are run by financial institutions for profit, often with a wide range of investment options. They typically charge higher fees and may include adviser commissions.

Return on Equity (ROE)

Return on Equity (ROE) is a measure of financial performance calculated as net income divided by equity.

Return on Investment (ROI)

Return on Investment (ROI) is a performance measure used to evaluate efficiency of an investment.

S

Salary sacrifice

Salary sacrifice is an arrangement where you ask your employer to direct part of your before-tax salary into your super account. This reduces your taxable income and increases your concessional super contributions.

Software as a service (SAAS)

Software as a service (SaaS) is a distribution model used to license and deliver software applications over the internet.

Superannuation guarantee (SG)

The super guarantee (SG) is the minimum amount of super employers must pay to their employees. The SG rate is 12% as of July 1, 2025.

Small and medium-sized enterprise (SME)

Small and medium-sized enterprises (SMEs) are businesses with a relatively small numbers of employees and lower revenue compared with large corporations.

Self-managed super fund (SMSF)

A self-managed super fund (SMSF) is a private financial structure for saving for retirement.

Society for Worldwide Interbank Financial Telecommunication (SWIFT)

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a global messaging network used by banks and financial institutions to securely send and receive information about financial transactions.

T

Target market determination

A target market determination (TMD) is a document that clearly outlines which group of people a specific financial product is best suited for, based on their goals, financial situation, and needs. It also explains how the product should be marketed and sold, and when it will be reviewed to ensure it remains appropriate.

Tax file number (TFN)

A tax file number (TFN) is a unique number issued by the Australian Taxation Office (ATO) to individuals and organisations.

Term account

For an investor, a term account generally refers to a structured investment in a loan or credit facility with a fixed maturity date, where the investor provides capital to a borrower (usually a private company) and earns returns over a defined period. Private credit term accounts are not guaranteed under the Australian Government's Financial Claims Scheme (FCS).

Term deposit (TD)

A term deposit is a type of savings account offered by banks and financial institutions where you deposit a fixed amount of money for a set period of time (the "term") at a predetermined interest rate. Term deposits are guaranteed under the Australian Government's Financial Claims Scheme (FCS), provided they are held with an Authorised Deposit-taking Institution (ADI).

Ten-bagger

A ten-bagger stock is an investment that grows to be worth ten times the price you paid for it. It's investor-speak for a rare, home-run stock that delivers massive long-term returns.

Total and permanent disability (TPD)

Total and permanent disability (TPD) insurance cover pays a lump sum if you become totally and permanently disabled.

Transition to Retirement (TTR)

Transition to Retirement (TTR) is a strategy allowing access to super while still working.

V

Vocational education and training (VET)

Vocational education and training (VET) provides workplace skills, technical knowledge and qualifications for rewarding jobs and careers.

W

Work health and safety (WHS)

Work health and safety (WHS) refers to regulations, policies and practices that ensure the health, safety and welfare of employees in the workplace.

Wage price index (WPI)

The wage price index (WPI) measures changes in the cost of wages and salaries over time in Australia.

Why this glossary matters

What is the purpose of this financial terms glossary?

This glossary helps readers decode common financial terms and jargon used in banking, investing, superannuation, insurance, and financial media. It's designed to make financial literacy more accessible to everyone.

Who should use this glossary?

Anyone looking to better understand financial terms - whether you're a student, investor, professional, or simply trying to make sense of your bank statements or super fund reports.

How often is the glossary updated?

The Moneymag.com.au team updates this glossary regularly to reflect changes in financial regulations, emerging industry terms, and reader feedback.

Where can I learn more about personal finance topics?

Visit Moneymag.com.au for expert articles, guides, and news on budgeting, investing, superannuation, tax, and more.

Can I suggest a financial term to be added?

Yes! If you notice a missing acronym or term, you can contact the editorial team via the website's contact form.

Is this glossary suitable for beginners?

Absolutely. Each acronym is explained in plain English, making it easy for beginners to understand complex financial concepts.

Why is understanding financial terms important?

Finance terms are everywhere - from your payslip to your investment portfolio. Knowing what they mean helps you make informed decisions and avoid costly mistakes.

The space economy is expanding quickly beyond rockets into defence, energy infrastructure and data services which are underpinning commercial enterprises.

The popularity of the SpaceX initial public offering (IPO) illustrates the attraction for investors, including Australia's richest person, Gina Rinehart, who has backed Elon Musk's IPO with more than US$1 billion.

The big news in markets this month wasn't just the SpaceX IPO, but the phenomenal demand for it, including from Gina Rinehart, who hit the headlines in The Wall Street Journal when the paper revealed Australia's richest person had invested over US$1 billion in the SpaceX IPO.

That news was the most read story in The Wall Street Journal the day it was published.

Such is the desire to know how the rich are investing.

Rinehart is betting on founder Elon Musk's vision to transform the space economy into a profitable commercial enterprise.

Her stake in SpaceX is the single largest investment outside of iron ore made by her private company, Hancock Prospecting.

Like many others, Rinehart is betting that investing in space isn't just about launching rockets, but an expected growth in the space economy.

The forces driving the space economy boom

Space companies are benefitting from a combination of several factors including rising commercial demand for communications services and increased government spending, including rising defence investment in early warning, counterspace systems and secure satellite communications.

Global government space spending, for example, reached US$137.4 billion in 2025, and for the first time, defence-driven space spending accounted for 54% (US$73.5 billion) of that total, officially outpacing civilian space budgets, such as NASA's.

The modern space age today is also being defined by commercial demand and economic infrastructure.

Commercial activity now accounts for roughly 70% of global orbital launches, up from 25% a decade ago, as satellite launch costs fall.

Over the past 60 years, the cost of reaching Low Earth Orbit has fallen approximately 200 times, to roughly US$1000 per kilogram today from US$400,000 per kilogram.

This collapse in launch economics is the single biggest structural change in the industry encouraging commercial enterprise.

Internet connectivity, for example, is burgeoning as a business enterprise.

Active satellites in orbit, for example, have grown from around 1000 in 2010 to over 12,000 in 2025, with estimates approaching 100,000 by 2030 as broadband constellations such as Starlink and Amazon Leo deploy satellites to keep us connected.

From Starlink and satellite internet to defence: Where the money is being made

Increasingly, satellites are where the space economy generates revenue, with over half of today's space market tied to satellites providing infrastructure and connectivity.

Falling launch costs and reusable rocket technology have enabled the rapid deployment of satellites that deliver broadband, navigation, Earth observation, and secure communications at scale.

This is helping push the growth of the global space economy, which is projected to surpass US$1 trillion by 2034.

Apart from satellite broadband, defence modernisation and emerging applications such as orbital computing are underpinning commercial opportunities.

The satellite broadband market alone is forecast to grow from US$22 billion in 2025 to US$100 billion by 2035, driven by household connectivity, enterprise backhaul, mobility, and military applications.

Government spending too is rising.

The US Space Force budget request for FY27, for example, is approximately US$71 billion, more than double the FY25 budget, with proposed programs such as Golden Dome adding a long duration government spending which provides a durable demand floor for the sector.

How everyday investors can access the space economy

With SpaceX raising the profile of the space economy, it's not just Gina Rinehart that is keen.

Investors are increasingly seeking access to companies leading reusable launch technology, satellite networks, mission-critical components, including space exploration.

Australian investors can invest in these ground-breaking companies directly, such as many did in the SpaceX IPO, or diversify their investments though a space technology ETF listed on the ASX such as the Global X Space Tech ETF (MOON).

For investors who missed the SpaceX IPO or were priced out by high minimums and limited share availability, an ETF offers a more practical entry point, spreading exposure across the broader space economy rather than concentrating a bet on a single name.

The ETF tracks the performance of companies driving growth and commercialisation of the global space economy.

MOON holds a diversified mix of companies across the space value chain, including satellite operators, launch technology providers, defence-linked space contractors, and the manufacturers of mission-critical components that make it all work.

Since its ASX listing on June 11, 2026, MOON attracted over A$5 million in flows within its first five trading days, reflecting strong early investor appetite for dedicated space economy exposure.

Much like railroads in the 19th century, the internet in the 1990s, and AI in the 2020s, space infrastructure could define the 2030s as a foundation for the next phase of the global economy and investors who get in earlier could see the greatest rewards.

As with all investments, this fund has risks - see the PDS for more information.

This fund may expose investors to currency risk, sector risk, concentration risk, and/or market risk.

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Greg Elias, senior private client adviser at UniSuper.

They discuss the steps you can take before June 30 and the upcoming super changes worth knowing about.

Episode timestamps

00:00 Introduction

01:44 Making a concessional contribution

05:35 Contribution caps explained

06:18 The benefits of salary sacrificing

09:00 Division 296: who it affects and what to know

12:01 What are the payday super changes?

15:03 Market volatility and superannuation

18:40 Common EOFY mistakes

20:38 Conclusion

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Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

Where can I listen to the podcast?

You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

Is the podcast suitable for beginners?

Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.

What topics does the podcast cover?

The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.

How often are new episodes released?

New episodes are released weekly, so you can stay up to date with the latest financial tips and trends.

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Yes, full episodes with closed captions are available on YouTube.

Why subscribe to the Friends With Money podcast?

Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

Subscribe to the Friends With Money podcast today and start learning when it suits you.

Almost everyone has done it.

In an effort to save money, we've bought something cheap that didn't last, stocked up on things we didn't need, or turned leftovers into a meal nobody would eat.

Sometimes being frugal works brilliantly. Sometimes it backfires.

From damaging your car with the wrong fuel to filling your home with "free" clutter, here are seven money-saving habits that ended up costing more in the long run.

1. The driving trick that no longer saves fuel

In my twenties, I was travelling in the mountainous province of Lanzhou in Northern China, and the bus driver turned his engine off most of the way down.

Scared? I was terrified.

Some drivers still shift into neutral on downhill stretches to save fuel.

But experts warn the trick no longer delivers meaningful savings and could increase wear on your vehicle.

According to motoring expert Toby Hagon, shifting into neutral is a classic false economy.

"Years ago, you could have saved money switching to neutral," he said.

"But modern engines are designed not to use any petrol at all when not in use. Further, every time you switch in out and of gears, you put pressure on your gearbox - and that will eventually mean you will need to get it serviced sooner."

2. Why cheap petrol isn't always cheaper

Choosing the cheapest fuel can save money at the pump, but using the wrong fuel for your vehicle could lead to costly repairs and even affect your warranty.

According to Hagon, studies show that cars generally get more mileage out of more expensive petrol, but if the higher-end petrol is too expensive, there is no way to recoup the expense.

To work out the most cost-effective fuel for your vehicle, he advises drivers to fill up with 3-4 litres of a particular type of petrol, monitor the mileage, calculate the cost, then fill up and repeat with other types of petrol.

But Hagon cautions it is false economy to fill up with cheaper fuel if your car requires premium unleaded.

"Many European models specify premium unleaded, and this is because Australia's lower-priced fuels often have a higher sulphur content than the engines are designed for," he said.

"You could damage your motor and void your warranty by filling up with cheaper fuel."

3. The cleaning hack that can damage your home

I'm a huge fan of using affordable, natural cleaners, including vinegar and bicarbonate of soda.

On their own, they are powerful, but when combined the acid and alkaline properties creates a chemical reaction that can clear blocked drains, remove stubborn stains and save burnt pans.

Unfortunately, there are times when these ingredients are unsuitable for cleaning.

You should avoid using vinegar, for instance, when cleaning French polished furniture, wooden flooring or granite and marble surfaces.

Experts also advise not to use vinegar as a rinse aid in your dishwasher as it can break down the rubber gaskets and hoses.

Always follow your manufacturer's instructions and use appropriate products.

And as for bicarbonate of soda, let's just say that my oven has never recovered since I cleaned it with bicarb.

In theory, bicarb is great at removing baked-on grease.

But despite the many TikTok clips proclaiming the virtues of using bicarb for cleaning ovens, my oven walls are covered in powdery, white streaks.

4. When homemade cleaners become an expensive mistake

I love innovating and experimenting, and that includes making homemade cleaning products. I've featured several in my book, and I have a Household Hacks section on my website.

Many of them save me hundreds of dollars a year. But that doesn't mean I get it right all the time.

My frugal and eco-friendly homemade dishwashing powder was an epic fail (still hoping to nail it one day).

It didn't dissolve fat and grime properly, the pipes in the dishwashing machine blocked, and the shelves went orange and mouldy.

Meanwhile, friends have reported making homemade washing powder that doesn't work for them.

My good friend, Trish, made several kilos from a recipe (not mine) that made her skin itch so severely she had to throw the lot out.

5. The leftover meal that ended up in the bin

I am committed to reducing food waste and like to find creative uses for leftovers.

Recently, I converted some beyond best-before cream into ice-cream.

The result wasn't a money-saving win. It tasted sour, nobody would eat it, and I ended up wasting not only the cream but all the extra ingredients that went into the recipe.

I invested cream in this recipe and sugar, vanilla, evaporated milk and chocolate syrup, all of which I will throw out unless I can convince hubby to eat it.

In this case, my kitchen creativity was a little off. But you can also get serious food poisoning from eating food that has gone bad.

While I dislike wasting food, if you are unsure how long something has been lurking in the fridge, it is best to turf it. When in doubt, throw it out.

6. The hidden cost of op-shopping

I have a fortnightly allowance just for op-shopping.

I love a good op shop, and find it difficult to go past a store without walking in.

I love the fact that I am contributing to community-based organisations, encouraging sustainability - and getting bargains.

Can you have too much of a good thing? Absolutely.

There are only so many clothes, retro pieces of cookware, china trios and books that you need.

The problem with op-shopping (and I hate to admit this) is that most of the time, purchases are wants rather than needs.  And if I don't really need it to start with, it is never a bargain.

7. Why free stuff can end up costing you

Free isn't always free. Many people end up spending time, fuel and storage space collecting items they never use.

I love my Buy Nothing community so much I'm now an admin.

The sharing economy is great for saving money, and I save hundreds of dollars each year from things that people have given me.

The problem is that it is super easy to comment on items that I don't need, and then when chosen (oh, the joy!), feel obliged to go and collect - even if it is going to become a dust gatherer.

I still have things collected more than five years ago that I haven't used - like an unusual square red glass bowl (I think it's an ashtray - don't smoke), a miniature pan and brush (lost under the sink).

Nothing is ever truly free; you need to invest time and effort to pick items up, store them and dispose of them when you no longer need them.

The moral is that it's fine not to save things from being thrown out. If you don't need it, then you don't need it - even if it's free.

8. Buying in bulk and throwing half of it away

Buying in bulk is often held up as one of the easiest ways to save money.

Larger pack sizes usually work out cheaper per unit, and warehouse stores can offer significant discounts.

The catch? You only save money if you actually use what you buy.

I've lost count of the number of times I've stocked up on a "bargain" only to discover months later that half of it had expired in the pantry or freezer.

From family-sized packs of snacks to bulk cleaning products and giant bags of produce, it's easy to overestimate what you'll realistically use.

The same applies to sales. Buying three of something because it's half-price isn't a saving if you only needed one.

A good rule of thumb is to ask yourself: would I still buy this quantity if it wasn't on special? If the answer is no, it may not be a bargain after all.

9. Choosing the cheapest option every time

There's a difference between getting value for money and simply buying the cheapest product available.

I've learned this lesson the hard way with everything from kitchen gadgets to shoes.

A low upfront price can be appealing, but if the item breaks quickly, performs poorly or needs replacing sooner, you may end up spending more in the long run.

The same principle applies to services.

Choosing the cheapest tradesperson, appliance or insurance policy can sometimes mean paying for repairs, replacements or unexpected costs later.

That doesn't mean the most expensive option is always the best.

But before you buy, it is worth looking beyond the price tag and considering durability, quality and ongoing costs.

Sometimes paying a little more today can save you a lot tomorrow.

Bottom line

Frugality isn't about spending the least amount possible.

It's about getting the best value from every dollar.

Before you buy the cheapest option, rescue a freebie or try a money-saving shortcut, ask yourself one simple question: will this genuinely save money, or will it cost me more later?

That's often the difference between being frugal and falling into a false economy.

Why you should buy A O Smith shares? 

A O Smith (NYSE:AOS) is the clear market leader in the stable, oligopolistic US water heater industry, where the top three players control over 90% of both residential and commercial markets and AOS holds the #1 position in each (36% residential, 52% commercial).

Crucially, around 85% of demand is non-discretionary replacement of old units on about a 15 year cycle, giving the business a durable, recurring revenue base that is far less cyclical than its construction exposed peers.

The company converts close to 100% of earnings into free cash flow, carries no debt on its balance sheet, generates about a 34% return on invested capital, and is a dividend Aristocrat that has consistently returned the bulk of its cash to shareholders through dividends and buybacks.

The appeal today is that you can buy this quality franchise at a depressed price.

The weakness driving this is cyclical, not structural. US water heater volumes have had their slowest start to a year since COVID, but AOS has held onto its market share throughout. That leaves it well placed to benefit once volumes start to recover.

What does A O Smith (NYSE:AOS) do?

Founded in 1874 in Milwaukee, Wisconsin, AOS is a manufacturer of both residential and commercial water heaters and boilers.

It also supplies water treatment and purification products in the Asian market. The company employs approximately 11,500 people at operations in the United States, Europe and Asia.

Growth outlook for A O Smith shares

The investment case rests on the cyclical US water heater slowdown reversing, with a long replacement cycle and steady share underpinning a return to low-single-digit organic sales growth.

Near-term headwinds are well flagged: weaker US residential volumes and higher steel and energy costs, which management is offsetting with a 4-7% price hike from mid-May, supporting a recovery in the second half of the year.

The struggling China business is now less than 10% of group earnings (down from 25% in 2019) and management is exploring strategic options, including a likely exit, which should remove a long standing drag and a key risk to the story.

We expect the disciplined capital allocation to continue, with approximately 100% cash conversion and most free cash flow returned via dividends and buybacks.

Returns

At the current price of $57 AOS trades on roughly 15x FY26 earnings, which is close to its 10-year trough of 14x.

Applying a 14x EV/EBIT  (enterprise value/earnings before interest and taxes) multiple (broadly in line with the long-term average) points to a fair value of around $73 per share, implying meaningful upside from here.

Even with no re-rate or growth, the current earnings yield of about 7%, which gets consistently returned to shareholders, is a strong base.

In a downside scenario applying the COVID low EV/Sales multiple, the implied value sits in the high $40s, leaving the risk/reward skewed favourably at today's depressed price.

ATO letters are landing in mailboxes across Australia, warning hundreds of thousands of taxpayers that the tax office already has access to a growing amount of financial data.

The warning has sparked concern online, with many Australians questioning whether the correspondence is genuine. Tax experts say it is, and that it reflects the ATO's increasingly sophisticated data-matching capabilities.

While receiving a letter doesn't mean you've done anything wrong, it serves as a timely reminder that mistakes, omissions and unusual claims can quickly attract attention.

Here are some of the red flags that can put your tax return on the ATO's radar this tax season.

The ATO receives data from a range of third-party sources and can compare that against your tax return.

Before you lodge your tax return, it's worth understanding what information the ATO already has access to and the mistakes most likely to attract scrutiny.

Most Australians will never face an ATO audit. But that doesn't mean the tax office isn't keeping an eye on your return.

Using sophisticated data matching and risk assessment tools, the ATO compares information from employers, banks, government agencies and other sources to identify returns that may warrant closer scrutiny.

Large deduction claims, cryptocurrency transactions, unreported income and significant capital gains can all attract attention. Here are some of the most common red flags that can put you on the tax office's radar.

The ATO doesn't need proof you've done anything wrong to take a closer look.

Often, it is unusual patterns, inconsistencies or transactions that stand out from the norm that trigger a review.

A review doesn't necessarily mean you've done anything wrong. In many cases, the ATO simply wants more information.

But understanding the red flags that attract scrutiny can help taxpayers avoid common mistakes and keep better records at tax time.

The tax return red flags the ATO is watching this year

At its simplest, the ATO will look for risk factors like these:

Reporting and compliance issues

• Failure to lodge tax returns or other required documents on time
• Failure to pay outstanding tax debts
• Incomplete or inaccurate information in tax returns
• Declining or erratic tax performance over several years

Income and deduction mismatches

• Inconsistencies between tax returns and third-party data
• Unusual or high-risk refund claims
• Lifestyle not supported by reported after-tax income
• Results outside ATO benchmarks for similar taxpayers or businesses

Business and investment red flags

• Capital gains transactions, including property, shares and cryptocurrency
• Unexplained losses
• Private use of business assets
• Large, one-off or unusual transactions
• Loans to associates or related parties

Structures and tax planning arrangements

• Complex group structures
• Unexplained flows of funds between related entities
• International or offshore dealings
• A history of aggressive tax planning
• Tax outcomes that appear inconsistent with the intent of the law

This is by no means complete but it gives a flavour of the types of factors which the tax office takes into account.

Broadly speaking, the more risk factors a taxpayer triggers, the more likely they are to be reviewed/audited.

The transactions attracting the most ATO scrutiny

There are certain issues which consistently deliver results for the ATO, either because the law is complex and poorly understood or because the nature of the transaction is particularly prone to non-disclosure, partial disclosure or incorrect disclosure.

If you fall into any of these areas, make sure you are satisfied that the transactions have been correctly disclosed, that your understanding of the law is right or at least reasonably arguable and that you have appropriate records and supporting documentation:

• Capital gains and losses, including profits from shares, investment properties and cryptocurrency sales
• Work-related deductions such as car expenses, home office costs, uniforms and self-education claims
• Whether a profit or loss is of a revenue character or capital in nature
• International transactions
• Trusts, including distributions and loss provisions
• Taking money out of a private company by way of a loan
• Small business benchmarks

What's the difference between a review and an audit?

Review

Because a review can feel (to both the taxpayer and the tax agent) like an audit, this is often mistaken for an audit, but it isn't.

A review is designed to firm up the ATO's initial view of the risk so it is important to note that at this point, the ATO is still approaching the taxpayer (in theory at least) with an open mind and you need to convince the auditor that the risk does not exist in order to avoid an audit.

At this point, the Tax Office will contact you (or your tax agent) and will ask for information in relation to the risk areas they have identified.

They may ask for:

• copies of records, invoices, contracts
• diaries
• records of meetings and conversations
• explanations surrounding the commercial and/or taxation drivers around the suspect transactions

They may provide a bespoke questionnaire, and they may also request formal or informal interviews.

Requests for documents and other information are likely to be informal but if satisfactory and timely responses are not forthcoming, they may use formal access powers.

A review will take on average about six months.

If the auditor is satisfied that the risk does not exist, is not provable or if ATO resourcing does not permit, compliance action may be terminated at this point.

If the risk is established as likely to be real (and if the tax at stake is also significant), the matter will be approved by ATO management to progress to audit.

Audit

This is the place where you do not want to be.

The ATO will write to you to advise that an audit is commencing.

This letter will provide the taxpayer with an opportunity to voluntarily disclose.

This may be the last opportunity to do so whilst suffering the lowest penalty rates.

Before an audit commences, penalties can be remitted by up to 80%.

From this point on, higher penalty rates are likely to apply and the maximum remission available will be 20%.

The ATO will request further documentation, interviews and technical opinions to back up the legality of the transactions undertaken. This may be done informally or using formal powers.

The audit may look at the specific issues first identified in the review (above).

If further issues have been identified at those stages, or if further issues come to light during the audit itself, the audit may open out into a comprehensive audit of the taxpayer's whole situation.

An audit can last up to two years.

What to do if you get audited

• Understand where you are in the process and what product you are dealing with (review or audit)
• Make contact with the ATO auditors. Obtain their names and contact details and give them yours
• Determine the technical issues in dispute
• Determine whether the ATO is still in time to issue assessments (an audit can only commence within two years of the date of lodgement of the tax return, for individuals and some small businesses)
• Quantify the amount of tax/penalties at stake
• Consider making voluntary disclosures if there is something you want to get off your chest!
• Consider whether to settle or argue

How to manage your relationship with the ATO

• Don't wait
• Be perceived as low risk
• Bring in experts if required
• Open clear communication lines
• Build a constructive relationship
• Make sure documentation is in order
• Be proactive. Don't delay and don't tolerate delay from the ATO
• Understand ATO guidelines and policies
• Respond to all communications
• Don't be afraid to escalate to higher levels within the ATO

What happens if the ATO audits you?

Generally speaking, an ATO audit will follow a set series of steps:

• Commencement of the audit, involving notification
• Information gathering
• The issue of a facts/position paper
• The taxpayers response
• The issue of assessments
• Objections
• Settlement and/or alternative dispute resolution (this stage may be reached earlier)

What if you owe an ATO debt

Many taxpayers are convinced that they have done nothing wrong and baulk at paying any assessments which the ATO may raise during an audit.

Nevertheless, by failing to pay, taxpayers leave themselves open to being pursued by ATO debt collectors, who increasingly these days are actually third-party debt collectors acting on behalf of the ATO.

Even though debts are disputed, the ATO will still look to enforce them.

Given the need to collect revenue on behalf of a cash-strapped government, the ATO is likely to be more assiduous in pursuit of such debts than ever.

For taxpayers, the stress of being under audit can be bad enough.

Being pursued by debt collectors can be a step too far.

You should consider offering to pay the tax whilst the amount is in dispute, if not all of it then some of it.

The ATO is open to 50:50 arrangements whereby half the tax in dispute is paid and the other half unpaid.

The ATO will formally accept such arrangements and will not generally pursue the unpaid amount.

Even if you are unable to pay 50%, speak to the ATO debt staff and come to some arrangement with them such that you pay something.

Failure to pay (even where the amount is disputed) or failure to come to an arrangement may lead to formal debt collection action including garnishee notices on bank accounts, prosecution and bankruptcy proceedings.

Penalties

The relevant penalty percentages and penalty units and the types of taxpayer conduct to which they relate are set out below:

If a taxpayer makes a voluntary disclosure before an audit commences, the ATO may reduce tax penalties by 80%.

Even once an audit commences, it is still possible to persuade auditors to apply the 80% penalty remission if the matter being disclosed is either not the subject of the audit or has not been 'discovered' by the auditor.

Once the audit commences (subject to the above comments), the amount of penalty remission will be capped at 20% where a voluntary disclosure is made.

The overall extent of penalties before remission is determined by the behaviour of the taxpayer and their advisers.

Culpable behaviour may lead to penalties being increased by 20%, which may include:

• Taking steps to prevent or obstruct the ATO from finding out about the tax shortfall
• Failing to correct a statement made to the ATO about a shortfall within a reasonable time
• Having a previous shortfall amount

It can affect your tax return, Medicare levy surcharge, government benefits and even how much capital gains tax you pay when selling property. Here are the key tax rules couples should know before lodging this year.

How does marriage affect your tax return?

Four marriage tax rules that could affect your refund

Lodge your tax return separately from your spouse

You don't have to lodge a combined tax return if you're married (as happens in some other countries).

Joint income is recorded separately in each spouse's tax return.

Disclose your spouse and their income 

You need to show on your tax return that you now have a spouse, and disclose his or her taxable income each year.

Prepare for your combined income to be assessed

Your combined income is used to assess whether you pay the Medicare levy surcharge.

For 2025-26, couples earning more than $202,000 without eligible private hospital cover may pay an extra 1% to 1.5% in tax, and it can also affect eligibility for some benefits such as family tax benefits.

Notify the ATO of your new name

If you elect to change your name, the details will need to be updated before your tax return is lodged.

The easiest way to do that is online or you can do it by phone. You'll need to verify your identity with the ATO when you do it, so you'll need documents such as your birth certificate or marriage certificate.

You cannot notify the tax office simply by noting it on the front cover of your next return as used to be the case.

The costly CGT rule many couples don't know about

For homeowners, the biggest tax surprise often comes when both partners own property.

Many couples don't realise getting married or entering a de facto relationship can affect their capital gains tax position.

Normally, you can sell your main residence without CGT.

However, spouses are only entitled to one CGT main residence exemption between them. (This applies once you're treated as spouses for tax purposes, not just legally married.)

If both members of a couple each own a main residence they must either:

• select one residence for the exemption
• apportion the CGT exemption between the two residences.

Provided the homes meet the requirements for the main residence exemption, they will both be wholly exempt from CGT for the period prior to the couple being treated as spouses.

In some cases, the exemption can be split between both properties, but this can reduce how much of the gain is tax-free.

How the CGT rule works in practice

Susan bought a house in 2004.

She lived in it until she married Roger in 2020 at which point they moved into his house, which he had owned since 2010.

Roger's house became their main residence for CGT purposes.

If she chooses to sell her house, Susan will be subject to CGT on her house for any growth in value from 2020 but she will not have to pay CGT on any capital growth in the period before she married Roger.

Can wedding gifts be tax-deductible?

For most couples, property and Medicare levy rules have a much bigger financial impact than wedding gifts.

If your guests choose to make gifts to a charity of your choice as a wedding gift, they can claim a tax deduction for the gift provided it's to a charity registered as a Deductible Gift Recipient.

Tax rules for married, de facto and same-sex couples

The definition of spouse includes both de facto relationships and registered relationships.

Your spouse is another person (whether of the same sex or opposite sex) who:

• is in a relationship with you and is registered under a prescribed state or territory law
• although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple.

That means that people living in same-sex relationships are now treated in the same way as heterosexual couples for tax purposes.

They now fall under the same rules in areas such as these:

• Medicare levy reduction or exemption
• Medicare levy surcharge
• Main residence exemption for capital gains tax.

From suggesting tax deductions to explaining tax rules, AI is increasingly being used as a digital tax assistant.

But the Australian Taxation Office warns that AI-generated information can be inaccurate, outdated or based on overseas tax laws, leaving taxpayers responsible for any mistakes.

With one in two Australians open to using AI at tax time, the big question is whether the technology can boost your refund, or land you in hot water with the ATO.

"As Australians prepare their tax returns for the 2025-26 financial year, many are navigating a much more complicated income environment shaped by hybrid work, side hustles, digital platforms and AI-driven work opportunities," says Angel Zhong, a professor of finance at RMIT University.

A 2024 Compare Club survey found that one in two Australians would consider using artificial intelligence to help prepare their tax return.

So can AI help boost your tax refund, or is it a shortcut that could land you in trouble with the ATO?

How Australians are using ChatGPT and AI for tax returns

There are at least two different ways that taxpayers are harnessing artificial intelligence to help with their returns: through generative AI tools or via AI-powered tax apps.

For instance, Zhong says that more Australians are using generative AI tools - like ChatGPT and Claude - to provide them with tax deductions related to their role or specific expenses.

There are also a number of dedicated tax apps boasting AI-powered functions such as the ability to search through bank account statements or receipts to find applicable deductions.

When AI can help with your tax return

Rather than dismissing it outright, Mark Chapman, director of tax communications at H&R Block, says that AI can be useful for people wanting to organise their information and get to grips with tax concepts.

"AI can help taxpayers create checklists of documents they need before lodging, explain common deductions in plain English, summarise ATO guidance, or help categorise expenses.

"Someone working from home might ask an AI tool what records they should keep to support a work-from-home claim, while a rental property owner could use it to understand the difference between repairs and capital improvements.

"AI can also be useful for prompting taxpayers to think about deductions or income sources they may otherwise overlook."

It may also help taxpayers organise receipts, understand ATO terminology and prepare questions for a tax agent.

Chapman emphasises that while AI can work well as a research and educational tool, taxpayers shouldn't see it as a substitute for professional advice or as a definitive source of tax law though.

Despite growing interest in AI at tax time, many Australians remain cautious about relying on the technology.

ATO warning about AI-generated tax advice

The biggest risk with AI-generated tax advice is that it can sound convincing while still being wrong.

"AI can be helpful, but it often draws from a broad and inconsistent range of sources, which can lead to inaccurate advice," says Anita Challen, assistant commissioner at the Australian Taxation Office (ATO).

"For example, it could be drawing content about tax obligations or laws from outside of Australia or outdated sources."

The same risk can apply to deductions, with the potential for AI to either make them up entirely or suggest deductions that may not be relevant to an individual.

"A taxpayer might ask whether they can claim a particular expense and receive a general response suggesting it is deductible," Chapman explains.

"However, the AI may not explain that the expense must be directly connected to earning assessable income, that private use must be excluded, or that specific substantiation requirements apply.

"Rental properties are another area where mistakes can occur. AI may correctly identify that certain expenses are deductible but fail to distinguish between an immediately deductible repair and a capital improvement that must be claimed over time."

Can AI mistakes cost you money?

Using incorrect advice or information when preparing a tax return may sound like a harmless mistake, but it can have real consequences.

For example, claiming a deduction you aren't entitled to, or incorrectly categorising a rental property expense, could result in the ATO adjusting your return, reducing your refund or requiring you to repay money.

If the ATO finds out, it could result in a delayed refund - or worse, a financial penalty.

"Tax misinformation often sounds convincing, but dodgy tax advice doesn't just mislead - it can also lead to significant penalties," Challen says.

"Taxpayers remain accountable for ensuring the information they or their agents provide to the ATO is accurate - whether the advice came from a friend, online sources or if AI tools were used in its preparation."

Listen: Friends With Money: Tax time 2026

Is it safe to upload tax information to ChatGPT?

Even if the tax advice is accurate, experts say Australians should think carefully before uploading sensitive financial information to AI platforms.

This is not an unknown risk. A survey conducted last year by Adobe found that the biggest impediment to consumers using AI for tax purposes was data and privacy concerns.

"People should think carefully before entering personal information into an AI platform," says Chapman.

"Tax file numbers, bank account details, salary information and other sensitive financial data should not be uploaded into public AI tools unless the user fully understands how that information will be stored and used."

Should you use ChatGPT for your tax return?

While AI can be a useful tool for understanding tax concepts and getting organised, experts warn it should not be relied on as a source of definitive tax advice. Ultimately, taxpayers remain responsible for the accuracy of their returns, regardless of whether the information came from a tax agent, a website or ChatGPT.

When in doubt, check the ATO website or seek advice from a registered tax professional.

The ATO says taxpayers should wait until late July, when income statements are marked "tax ready" and pre-fill data has been loaded into returns.

In 2024, 142,000 Australians who lodged in the first two weeks of July had to amend their return or had it adjusted by the ATO because information was missing or incorrect.

With many households counting on a tax refund to boost stretched budgets, here's why the ATO says late July is often the best time to lodge.

Tax return deadlines every Australian should know

If you're preparing your own tax return, you have until October 31 to get it into the Australian Taxation Office (ATO).

Lodge after this date, and penalties or interest charges can apply if you owe a tax debt.

Tax agents have far longer deadlines.

As long as you are on a tax agent's books by October 31, you can usually lodge your return much later, which is handy if you're likely to owe money on tax.

Why lodging your tax return too early can backfire

Eager beavers take note: Just because you can lodge your 2025-26 tax return in early July doesn't mean you should.

The ATO is warning taxpayers not to lodge their tax returns until their income statement is marked as 'tax ready' and data has been pre-filled by the ATO.

ATO Assistant Commissioner Rob Thomson explains, "We pre-fill information from your employer, banks, government agencies and health funds into your tax return to help you get it right the first time - regardless of whether you use a registered tax agent or lodge yourself."

It takes time for all these organisations to pull together accurate data and send it to the ATO.

When should you lodge your tax return?

Thomson says waiting until late July allows for the ATO to prefill all the information in your tax return.

"We know doing your tax return is something to tick off your to-do list each year, but there's no need to rush," explains Thomson.

"The best time to lodge is from late July once everything is ready."

If you wait until then, all you need to do is check your information, add anything that's missing and include any deductions or offsets you're eligible for.

How to check if your tax return is 'tax ready'

You can check if the ATO has received all your pre-fill information by starting your tax return in myTax or speaking with a registered tax agent.

Sure, the wait can be frustrating.

But use the time to get all your ducks in a row.

Thomson recommends making sure you:

• Have all the necessary records
• Ensure your personal information and bank details are up to date with the ATO, and
• Check the ATO's online occupation guides to see the work-related deductions you may be able to claim.

Made a mistake on your tax return? Here's what to do

Rushing your tax return can make errors more likely.

While making a mistake isn't the end of the world - as long as you aim to correct it, it can delay your tax refund.

If you know you've made a mistake, or forgotten to include something, or your circumstances have changed, you will need to make an amendment.

The ATO advises waiting until you receive notice that your original tax return has been processed.

This will help reduce future processing delays.

Don't leave it too long. In most cases, you have two years from the date of your notice of assessment to amend a tax return.

If the issue at stake is complex, it could pay to speak with a registered tax agent.

From sunscreen and sunglasses to handbags, conferences and overtime meals, some work-related expenses can be surprisingly easy to overlook.

Whether you're a tradie, teacher, healthcare worker, retailer or office worker, knowing what you can and can't claim could make a meaningful difference to your tax refund this year.

Here are some of the tax deductions available for five professions, plus the records you'll need to support your claim.

Tax deductions tradies can claim in 2026

Tools worth more than $300: You can claim the cost of any tools or other work-related equipment that you're required to buy for your job. You can claim an immediate deduction for tools costing up to $300. Anything more expensive than that generally needs to be depreciated over the life of the asset.

Tool insurance and finance costs: You can claim a tax deduction for the cost of insuring tools and interest charged on finance taken out to buy tools and equipment.

Uniforms: You may be able to deduct expenses for buying and maintaining your uniform if you're required to wear one and it has your employer's logo on it. Ordinary clothing, such as a plain khaki shirt that could be worn outside work, is generally not deductible. A shirt bearing your employer's branding may qualify.

Protective clothing and sunscreen: The cost of protective items such as helmets, ear muffs, safety goggles, sunglasses, sun hats and sunscreen can also be claimed.

Trade union fees: Trade union fees can be deducted.

Licences and registrations: The cost of renewing professional licences, registrations and subscriptions is generally claimable.

Self-education: The cost of self-education courses run by a university or TAFE, such as an apprenticeship course, may be deductible if the course relates directly to your current job.

Overtime meal expenses: You may be able to claim overtime meal expenses up to the amount actually spent where you have received a genuine overtime meal allowance under an industrial law, award or agreement.

What other professions can claim on tax

Healthcare worker tax deductions you may be missing

Uniforms: If you're required to wear a uniform as part of your role, the cost may be deductible.

Protective clothing: You may also be able to claim clothing used to protect your ordinary clothes from damage or soiling, such as laboratory coats and aprons. Protective footwear such as non-slip shoes may also qualify.

Conferences: Conference expenses may be deductible. This can include registration costs, travel, meals and accommodation. If part of the trip is private, you'll need to apportion the expenses accordingly.

Professional memberships: Professional subscriptions, whether paid to a professional body such as the AMA or to a trade union, may be deductible.

Overtime meals: If you're required to work overtime and receive an overtime meal allowance, you may be able to claim the cost of meals.

Agency fees: If you obtain work through an agency, those agency costs may be claimable.

Car expenses: Many healthcare workers use their own vehicle for work purposes. Travel between medical facilities, transporting patients or travelling between patients' homes may be claimable.

Tax claims retail workers should know about

Uniforms: If you're required to wear a uniform at work, the cost may be deductible. Conventional clothing isn't deductible, even if you're required to wear items sold by the retailer you work for.

Training and courses: You may be able to claim the cost of work-related training, including first aid, workplace health and safety courses, management training and relevant retail qualifications.

Travel between stores: Travel from one work location to another may be deductible, including trips between stores and temporary work assignments at other locations.

Tax deductions for office, admin and professional workers

Handbags and briefcases: The cost of a handbag or briefcase may be claimable if it's used for work purposes, such as carrying paperwork or a laptop.

Work clothing: Occupation-specific clothing such as barristers' robes may qualify. Conventional clothing worn at work, including suits and business attire, isn't generally deductible.

Practising certificates: Annual practising certificates and similar professional registrations may be deductible.

Working from home: If you work from home, you may be able to claim a proportion of your home running costs using either actual expenses or the ATO's fixed-rate method.

Work travel: If you travel as part of your job, such as visiting clients or suppliers, you may be able to claim eligible travel expenses. Parking, tolls and public transport costs may also be deductible in some cases.

Client entertainment: The cost of entertaining clients generally isn't tax deductible.

Club memberships: Membership fees for social, sporting or recreational clubs generally can't be claimed, even if networking is involved.

Professional indemnity insurance: Professional indemnity insurance premiums may be deductible.

Teacher tax deductions and work expenses you can claim

Registration fees: Annual teacher registration fees are generally deductible.

Reference books and professional libraries: The cost of reference books and professional resources related to your teaching area may be claimable.

Classroom supplies: Stationery, art materials, stopwatches and computer consumables such as printer ink and toner cartridges can generally be claimed.

Laptops, tablets and phones: Computers, laptops, tablets, mobile phones and printers used for work may be deductible. Higher-cost items may need to be depreciated over time.

Teaching aids: Many teaching aids and classroom resources may qualify as work-related expenses.

Professional development: Conferences, training and professional development courses related to your teaching duties may be claimable, along with associated costs such as textbooks and travel.

Working from home: If you prepare lessons, mark homework or perform other duties at home, you may be able to claim eligible home office expenses.

School excursions: If you pay for excursions, camps or sporting trips out of your own pocket and aren't reimbursed, those costs may be deductible.

Why you need to keep receipts for tax time

Keep records. It doesn't matter what you've spent, if you can't prove that you spent it, you can't claim it. So, gather together all those receipts and invoices. If you've lost a receipt, try to get a copy from the retailer.

If that fails, a bank or credit card statement might do if you can clearly identify the item.

Don't try to claim if you don't have the paperwork. You're leaving yourself open to an ATO review. The best way to ensure your return is correct and that you're maximising the deductions you're entitled to is to visit a tax agent.

Best of all, if you get a tax agent to help you lodge your return, the cost is itself tax deductible.

The bottom line

Missing even a few legitimate deductions could mean leaving money on the table at tax time.

Before lodging your return, review the work-related expenses that apply to your occupation, gather your records and ensure any claims meet ATO requirements.

If you're unsure, a registered tax agent can help identify deductions you may have overlooked and ensure your return is compliant.

Yet many people who finally catch up discover they're actually owed money and have been missing out on tax refunds worth hundreds or even thousands of dollars.

Tax experts say fear of tax debts, penalties and ATO scrutiny often causes one missed tax return to snowball into years of unlodged returns.

Here's what happens if you haven't lodged a tax return, and how to get back on track.

Why do people avoid lodging tax returns?

Missing a tax return doesn't mean the problem will go away.

But in many cases, taxpayers who have fallen behind can get back on track, avoid harsher consequences and even uncover refunds they didn't realise they were owed.

"People miss a tax return for various reasons, including money troubles, personal difficulties and ill health," says Mark Chapman, director of tax communications at H&R Block.

"It isn't unknown for a client to come into our offices with a 20-year backlog of outstanding tax returns," he says.

"Often they become scared to interact with the system because they can't afford to pay the unpaid tax or the potential penalties for late lodgement, which leads to them missing the next year's return and the next year's and so on."

While there are plenty of downsides that come with not filing one or more tax returns, the good news is that it's never too late to make amends.

Before tackling overdue returns, it's important to understand who is actually required to lodge one in the first place.

Who needs to file a tax return in Australia?

Most Australians need to lodge a tax return because they earned taxable income during the financial year.

However, you may also need to lodge if tax was withheld from your pay or other income, or if you want to claim deductions and access any refund you're entitled to.

Foreign residents may also need to file a return if they earn income in Australia (with a few exceptions), or if they received a study or training support loan during the year.

While it may be a chore or even a source of anxiety, submitting a tax return is important for a number of reasons. Avoiding penalties is one of them (more on that below), but as Chapman notes, a lot of the time people may be actually missing out on a refund owed to them.

"Many of the people who don't lodge don't actually realise that they don't owe any tax - they are actually due for a refund," he says.

"This means that as well as missing out on the refund, which is actually their money, not the ATO's, they aren't liable for a late lodgement fine because the ATO only penalises late lodgers where there is tax owing."

What are the penalties for lodging a late tax return?

It's entirely possible that someone might be able to avoid the tax office for a few years, but if the ATO is owed money, it's likely that they'll eventually come calling.

"The ATO have now taken a firmer approach with taxpayers who don't engage with them and have outstanding obligations," says Gavan Ord, spokesperson for CPA Australia.

"Getting your tax return right is your responsibility. This means declaring all your income and claiming the appropriate expenses. Failure to properly declare your income increases your chances of being audited by the ATO."

So what could non-lodgers be looking at in the way of fines?

The penalty approach from the ATO is based on a sliding scale which also differs depending on the size of the entity in question.

"There are penalties for non-lodgement of a tax return which means that you are likely to be penalised by $330 for each 28 days that the return is late, up to a maximum of $1650," explains Chapman.

"If that doesn't get you to lodge, the ATO can issue you with a default assessment - which is an estimate of what the ATO thinks you owe, based on their third party data - which is likely to be excessive because it won't include any deductions you are entitled to."

Failing that, the ATO may go down the prosecution route as a last resort.

Can you lodge a tax return years late?

The good news for taxpayers is that outstanding tax returns can generally still be lodged years after the original deadline.

In some cases, people discover they are entitled to refunds. Others may find they owe tax, but can work with the ATO on a payment arrangement.

However, delays can increase the risk of penalties, interest charges and compliance action, so it's generally better to act sooner rather than later.

Tax agents can often help reconstruct records and identify information already held by the ATO, which can make it easier to bring multiple outstanding returns up to date.

What should you do if you've missed several tax returns?

Whether it's a matter of a couple of weeks or a couple of years, Chapman suggests that it's always better to be proactive about rectifying an overdue lodgement rather than sticking your head in the sand.

"Telling the ATO of any difficulties you are in and explaining the situation almost always produces a better outcome, in terms of penalties, than ignoring the issue and hoping that it goes away - it doesn't, it simply means greater consequences down the track."

When should you speak to a tax agent?

Both Chapman and Ord also recommend that those looking for additional help about their options and obligations consider seeking advice from a tax agent.

"If you have lodgements outstanding from previous years, your tax agent will be able to bring you up to date. The sooner you get in touch, the better," Ord says.

"The more complex an individual's earning activities and finances, the more they should consider expert advice.

"For instance, if you're receiving rental income, hold shares in multiple companies, or have bought and sold cryptocurrency, you should consider speaking to a tax agent."

People experiencing financial difficulty who owe money to the ATO may also be eligible for a payment plan in order to break down the balance owed into smaller instalments.

The bottom line

The key message from tax professionals is simple: don't let one missed tax return turn into several.

Whether you're one year behind or 20, taking action now can help minimise penalties, reduce stress and could even uncover a refund you didn't know you were owed.

Every week, the Money team pulls timely tips, trends and trivia from our newsletters to create a fun, fast way for you to test your personal finance knowledge and stay up to date with the latest money news.

Whether you're brushing up on budgeting, investing, superannuation, tax or saving hacks, the weekly Money Quiz helps you build confidence and learn something new in just a few minutes.

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Around 2.7 million Australian businesses are set to avoid the toughest impacts of Labor's planned capital gains tax (CGT) overhaul after Treasurer Jim Chalmers announced significant carveouts for small businesses, founders and investors.

The biggest change is an increase in the turnover threshold for the small business 50% active asset CGT reduction, from $2 million to $10 million. Treasury estimates the move will cover about 98% of Australian businesses.

The concessions follow widespread criticism of Labor's Budget proposal to replace the long-standing 50% CGT discount with inflation indexation and a 30% minimum tax.

Alongside the higher business threshold, Treasury will introduce a new Innovative Business CGT Concession (IBCC), allowing eligible start-ups and their investors to retain access to the existing 50% CGT discount.

"These measures build on the over $3.5 billion in new measures to support business risk-taking and investment in the Budget, including two-year loss carry back, loss refundability for start-ups, expanded venture capital incentives, and making the instant asset write-off permanent," Chalmers says.

Start-ups keep access to 50% CGT discount

Under the new IBCC, start-ups must have annual turnover of less than $50 million, be operating for less than 10 years and be undertaking genuine innovative activity.

Shareholders must have held their shares for at least five years to access the concession.

The concession will apply to founders, early-stage investors and employees who hold shares through employee share schemes and share option plans.

Eligible shareholders will be able to calculate their CGT liability using the existing 50% discount without a minimum tax, or choose cost-base indexation and the proposed 30% minimum tax when they realise a capital gain.

Transitional arrangements will apply to shares issued by innovative start-ups before July 1, 2027. Investors who hold eligible shares on June 30, 2027, will be able to access the concessional treatment on future gains from July 1, 2027.

For the minority of small businesses that operate through discretionary trusts, a new 30% minimum tax will apply.

Chalmers says more than 90% of Australia's 2.7 million active small businesses would not be affected in a typical year.

"Small businesses will be supported if they choose to restructure, primary production income (such as farming) is exempt, and other trusts (like fixed trusts) are also exempt."

Government says threshold increase is final

The consultation period on the proposals closes on July 10.

Chalmers says the changes were designed to provide "more certainty for investors, more support for small businesses and more incentives for innovation".

"We've said for some weeks that we're engaged with the small business community to make sure that we get that turnover threshold right," he says.

Asked whether the revised turnover threshold could change again, Chalmers says the government considered the matter settled.

"We'll seek to legislate that in the parliament in the next couple of weeks and it means, as I've said, 100% of active small businesses and 98% of all active businesses will get concessions and carve-outs, so we consider that to be a finished piece of work," he says.

On Budget night, Labor proposed replacing the existing 50% CGT discount with inflation-adjusted indexation, effectively returning parts of the system to a pre-1999 model.

The broader reforms are due to begin on July 1, 2027, and will apply to individuals, trusts and partnerships.

Negative gearing reforms are also scheduled to commence on the same date, with tax deductions for residential property generally limited to new housing that adds to supply.

Industry groups welcome concessions

Business Council chief executive Bran Black says the changes would ease some concerns for small businesses.

"The changes take some sting out of the tax bite for small businesses but the overall pain will remain for the broader economy when investment takes a hit," he says, describing the $10 million threshold as "a common sense and practical step".

Tech Council of Australia chief executive Kate Cornick says the start-up concession showed the government had listened to industry concerns.

"Successful startups and scaleups create jobs and build the industries that underpin future prosperity for all Australians. To grow more innovative companies here, productive risk-taking must be rewarded."

This article first appeared on Financial Standard

In a landmark Federal Court ruling, Justice Bennett found the bank's breaches of the ePayments Code were "widespread and systemic", with ASIC saying the judgement sends a clear warning to banks about their responsibility to protect customers from scams.

Of the $23 million lost, almost $16 million disappeared in just six months between October 2023 and March 2024.

Many victims were deceived by scammers impersonating HSBC staff and gaining access to their accounts.

The bank took 144 days on average to investigate the issues.

The regulator launched legal proceedings in late 2024, alleging the bank failed to have suitable controls in place to prevent and detect unauthorised payments and did not investigate suspicious transactions. These took place between January 2020 and August 2024.

Justice Bennett found HSBC's breaches to be serious, noting that while some scam controls were implemented, critical safeguards were not applied to the bank's internal payment system, where the majority of customer losses occurred.

ASIC chair Sarah Court says, "Banks have been well on notice about the risks of scams for some time. They have now been given a clear message to have adequate controls and ensure their interactions with scam victims help - not hinder."

HSBC admitted it failed its obligations under the ePayments Code and did not apply rules in the code for determining when customers or the bank should bear the losses from scams. It also admitted it did not have adequate systems in place to help customers get back into their banking after they had been scammed.

Upon ASIC's investigation, HSBC established a remediation program that has paid some $21.5 million in compensation to date.

More remediation is expected before the end of July. The bank has since recovered and returned $6.5 million to customers.

"We apologise to our customers who were impacted by these events. We are pleased to have reached an agreement to resolve the proceedings with ASIC, which recognises our customer redress program and the significant enhancements made to our fraud and scam prevention, detection and response," an HSBC spokesperson said.

This article first appeared on Financial Standard

Health and tax authorities say some medical practitioners are using social media to promote early access to super for procedures including dental work, IVF and bariatric surgery, despite concerns patients may be sacrificing tens of thousands of dollars in future retirement savings.

In 2024/25, a significant portion of the $1.4 billion released from super on compassionate grounds was used to pay for medical treatment.

Last financial year, the Australian Taxation Office (ATO) received 47,630 applications for early release of super to fund dental treatment, totalling $817.6 million.

That's up from 2023/24, when the ATO received 31,780 applications for dental treatment and approved 22,520 of them, releasing $526.4 million from super accounts.

A $20,000 withdrawal could cost you $80,000

The ATO warns that accessing super early can have a significant long-term impact on retirement savings.

According to the regulator, withdrawing between $10,000 and $20,000 today could reduce retirement savings by between $40,000 and $80,000 because of lost compound returns.

Early withdrawal may also reduce any insurance cover linked to a super account.

Dodgy ads on the rise

Regulators attribute the growing number of applications to access super early to advertising from some dental and medical practitioners actively encouraging patients to use retirement savings to pay medical bills that may otherwise be funded through payment plans or other means.

Despite updated guidelines on the early release of super being announced last year, some medical and dental practitioners continue to ignore the rules.

A quick Google search uncovers multiple dental and medical providers offering information about accessing super to cover treatment costs.

The guidelines state that two dental or medical practitioners must confirm treatment is necessary to alleviate acute or chronic pain, treat a life-threatening illness or injury, or alleviate acute or chronic mental illness.

But regulators say some practitioners have been caught helping patients access super for expensive cosmetic treatments that may not meet the criteria.

Some dentists have also been found charging fees to assist patients with preparing ATO documents despite not being registered tax agents.

Between 2019 and 2025, AHPRA received 95 complaints about medical and dental practitioners involved in the compassionate release of super process.

ATO Deputy Commissioner Ben Kelly said some practitioners have even been caught asking patients for their myGov sign-in passwords so applications could be lodged on their behalf.

"It is unacceptable for anyone to pressure Australians into accessing their superannuation savings early to pay for overpriced or unnecessary treatments," Kelly says.

"Superannuation is a long-term investment designed to be used during retirement. Accessing your super early carries long-term financial risks and can cut into your retirement savings."

The ATO has also uncovered examples of practitioners making inaccurate statements in medical reports, referring two doctors to a tribunal for allegedly providing false documentation. Another doctor has been formally cautioned, while a dentist has had conditions imposed on their registration.

The red flags patients should watch for

The Australian Dental Association (ADA) has also expressed concern, reminding consumers that dentists cannot provide financial advice about the consequences of withdrawing super.

The ADA recommends dentists avoid advertising the compassionate release of super altogether.

"We are also stressing that, as well as reports, patients need a quote from the practitioner about the cost of treatment necessary to treat the acute condition, as well as an indication of future treatment and maintenance costs. That way there's complete transparency for both sides," ADA president Dr Chris Sanzaro says.

The amount of super you can withdraw on compassionate grounds is not capped, but approval is required from the ATO.

Early release attracts tax of between 17% and 22% if you are under 60 years of age.

The ATO says compassionate release is only available in limited circumstances and should generally be considered a last resort.

It also warns that it relies on medical and dental professionals to provide accurate information and act in patients' best interests when preparing reports.

Before accessing super, Australians should consider not only the immediate cost of treatment, but also what those savings could have grown to by retirement. For some people, a $20,000 withdrawal today could mean giving up as much as $80,000 in future retirement savings.

While the political debate will focus on immigration, culture and social issues, investors may be looking at something entirely different.

Their superannuation balances.

Most Australians don't realise that some of the largest holdings inside their super funds are mining and energy companies.

Giants like BHP and Rio Tinto feature heavily across the industry, meaning the fortunes of millions of Australians are directly linked to the performance of the resources sector whether they actively invest or not.

That is what makes Hanson's economic message so interesting.

Her argument is that Australia has spent too long increasing regulation and focusing on redistribution while productivity growth has stalled.

Instead, she wants to make it easier for companies to invest, build projects, employ workers and develop Australia's vast natural resources.

That is one reason Hanson has developed a close relationship with mining billionaire Gina Rinehart, whom she has publicly acknowledged as a source of policy ideas.

The bigger issue, however, is productivity.

Australia's productivity growth has been weak for years, yet productivity remains one of the most important drivers of rising wages, company profits and long-term living standards.

Hanson is tapping into a growing belief that Australia needs to focus less on dividing wealth and more on creating it by producing more, building more and extracting greater value from the resources it already owns.

For investors, the question is simple.

What happens if governments become more supportive of the industries that generate some of Australia's largest profits? Historically, the answer has been higher share prices.

The reality is that markets don't care whether a policy is popular.

They care whether it increases profits and if a more mining-friendly and business-friendly Australia leads to higher earnings for some of the country's largest companies, investors will likely reward them accordingly and because those same companies are major holdings in Australia's superannuation system, the benefits could extend far beyond shareholders and into the retirement savings of millions of Australians.

What are the best and worst-performing sectors this week?   

The best-performing sectors include Materials, up more than 3%, followed by Financials, up more than 1.5% and Healthcare, up under 1.5%.

The worst-performing sectors include Energy, down more than 7%, followed by Utilities, down more than 2% and Communication Services, down more than 1%.

The best-performing stocks in the ASX top 100 include Regis Resources, up more than 21%, followed by Genesis Minerals and Greatland Resources, both up more than 16%.

The worst-performing stocks include Santos Limited, down more than 9%, followed by Whitehaven Coal and Ampol, both down more than 8%.

What's next for the Australian stock market?

The All-Ordinaries Index delivered a strong performance this week, rising almost 1.5% by Thursday's close and putting the market firmly back on the front foot.

More importantly, buyers have once again pushed the index towards the critical 9200 level, a barrier that has repeatedly capped rallies over the past year.

With momentum continuing to build, there is growing evidence that this latest attempt may be different.

The recovery was driven by the market's two most influential sectors, Financials and Materials, both of which bounced strongly and provided the foundation for the broader rally.

Equally encouraging was the continued strength in Real Estate.

After spending much of the past year lagging behind, the sector has quietly become one of the market's standout performers over the past month despite generally weak conditions across the wider market.

If interest rate expectations continue to move lower, Real Estate could become a key driver of the next rise.

Investor sentiment was also supported by ceasefire developments in the Middle East.

As tensions eased, oil prices fell sharply, leading the Energy sector to decline more than 7% for the week.

While this hurt energy stocks, lower oil prices are generally welcomed by the broader market as they reduce inflation pressures, lower business costs and improve the outlook for interest rates.

In the United States, the Federal Reserve left interest rates unchanged.

However, markets interpreted comments from the Fed Chair as relatively hawkish, suggesting rate cuts may not arrive as quickly as investors had hoped.

This weighed on US markets and tempered expectations for near-term monetary easing.

Australia appears to be on a different path.

Inflation pressures continue to ease, economic growth remains subdued and expectations are building that the RBA could begin lowering rates later this year or early next year.

If that scenario unfolds, it will provide a meaningful tailwind for both businesses and investors.

For much of the past year, the Australian market has played second fiddle to its global counterparts.

However, with a potential rate-cutting cycle approaching and commodity markets showing renewed momentum, don't be surprised if Australia emerges as one of the strongest-performing major markets over the year ahead.

In reality, some of the most common assumptions about separation are wrong, and getting them wrong can be costly.

Family lawyer Hayder Shkara, director of Melbourne Family Lawyers and Collective Family Law Group, answers 10 questions that every Australian should understand before a relationship breaks down.

1. When a relationship ends, what does Australian family law take into account when dividing assets and debts?

Australian family law doesn't simply split assets down the middle.

The court considers the financial and non-financial contributions each person made and looks at their future needs.

Contributions can include factors such as how much money you made and whether you came into the relationship with property or superannuation, but it also includes raising children and running the household.

Then the court will decide whether one person will have more of a need for future funds.

For instance, they may have a lower earning capacity or be the primary carer of a child.

The courts will work out how much each person will receive as an overall percentage of the asset pool.

2. What are the best legal tools for protecting personal assets before a relationship or marriage breaks down?

Get a prenup! In Australia we call this a binding financial agreement.

These agreements allow couples to decide in advance how assets, debts and, sometimes, spousal maintenance will be handled if they separate in the future.

When properly drafted and executed, they can remove the uncertainty of litigation later.

3. Do prenups or binding financial agreements really work in Australia? Who should consider getting one?

Binding financial agreements absolutely can work in Australia, but they need to be done properly.

The legislation sets out strict requirements, including that both parties receive independent legal advice.

They can be helpful for couples who simply want certainty.

The key point is that they are a risk-management tool, like buying insurance.

4. What financial mistakes do people make before or during separation that end up costing them later?

One common mistake I see is when one party has very little insight into the financial affairs of their relationship.

They don't know what bank accounts they have, who their accountant is, or understand the bank loans and mortgages they have signed.

When relationships break down, access to documents can quickly become difficult.

Bank records, superannuation statements, loan documents and tax returns are incredibly important later.

5. Will you keep assets you brought into the relationship?

No. There is absolutely no guarantee that you will keep them, in fact, it is more likely to be the opposite.

Over time the significance of those initial contributions can diminish.

If both parties build a life together, raise children and combine finances, the court may view the relationship as a joint enterprise.

The longer the relationship and the more intertwined finances become, the less decisive those starting positions tend to be.

6. Can joint debts follow you after separation?

Debts are treated as part of the asset pool, just like assets.

An important point to understand is that a court order does not change the contract with the lender.

If both names are on a loan or on a credit card, that creditor can pursue both parties.

And they will.

This is why refinancing or restructuring debts as part of settlement is often necessary to truly separate financial ties.

7. What can someone do if they discover debts have been taken out in their name without their knowledge?

The court can consider whether a debt should properly be attributed to one party rather than the other.

If a partner incurred debt secretly and for their own purposes, the court may adjust the property settlement to account for that.

The sooner the issue is identified and addressed, the better.

8. What if you think your partner is hiding money?

If there is a risk that assets are being moved or spent, the court has the power to make urgent orders to preserve the asset pool.

In extreme cases that can include freezing bank accounts or preventing the sale of property.

The key is to act early and get legal advice before the situation escalates.

9. Can your ex empty a joint bank account?

Technically, if both parties have access to a joint account, either of them can withdraw funds.

If this happens, the person who withdrew the money may effectively have it counted against their share.

To avoid this mess, it is best to ensure that upon separation, joint accounts require dual signatures.

10. What happens to the family home if, during separation, one person wants to sell and the other does not?

If the parties cannot agree, the court has the power to order that the family home be sold.

In some situations one party may instead refinance the property and buy out the other's interest.

The court ultimately focuses on what is practical and fair, in particular where children are involved and housing stability becomes a key consideration.

The bottom line

Separation can be emotionally and financially challenging, but understanding your rights and obligations early can help prevent costly mistakes.

Shkara says gathering financial documents, understanding your asset position and seeking legal advice early can put you in a much stronger position if a relationship breaks down.

Australia's top earners aren't CEOs

New ATO data reveals the jobs earning more than $500,000 a year

Surgeons have been crowned Australia's top income earners, with an average taxable income of $519,998 in 2023/24 according to newly released figures from the Tax Office.

Anaesthetists took second place with average earnings of $475,455, followed by internal medicine specialists with income averaging $362,120.

Only financial dealers broke the dominance of medical professionals, taking out fourth place with average taxable income of $347,375.

Finance, legal and mining jobs also rank highly, each with average incomes in excess of $200,000.

By comparison, Aussie workers pocketed average taxable income of a more modest $78,127 in 2023-24.

​​​​

Grill'd sued over burger donation claims

Only about 4% of Tuesday burgers qualified for a donation

Popular burger chain Grill'd is being sued by the Australian Competition and Consumer Commission (ACCC)  over alleged false claims about eco-friendly donations.

Grill'd ran a promotional campaign called Tree Day Tuesday for several years between January 2021 and April 2024.

The idea was that Grill'd would donate $1 from every burger purchased on a Tuesday towards the planting of trees.

However, some very fine print applied.

Burger purchases needed to meet seven conditions to qualify for a donation. Among them, buyers had to be a member of Grill'd's Relish loyalty program, and the purchase needed to be dine-in only.

As a result, the ACCC alleges that of more than 5 million burgers purchased on a Tuesday, only around 4% qualified for a donation.

ACCC Chair Gina Cass-Gottlieb alleges the promotion was a form of greenwashing, with Grill'd's advertising overstating the circumstances in which donations would be made.

The news follows years of legal action and public backlash after staff were allegedly underpaid thanks to traineeship loopholes.

A new wage agreement was signed in December 2026, but a class action lawsuit is before the Federal Court.

The sneaky EOFY sales tricks to watch for

Consumer advocates warn of fake discounts and pressure tactics

Three million Australians plan to skip EOFY sales this year, while consumer advocates warn shoppers to watch for fake discounts, fake urgency and unnecessary warranties.

While under-35s and over-50s are each expected to spend around $1900 in the June sales, shoppers aged in their 30s and 40s - the 'mortgage belt' years - are likely to spend a more modest $1400.

The Australian Retail Council says 3 million Australians who scored discounts last year, plan to give the current sales a miss altogether.

Meanwhile, consumer group CHOICE is cautioning consumers to think before they click this sale season.

CHOICE's Mark Serrels says, "It's important to know the tricks and traps to avoid getting ripped off."

CHOICE recommends watching for:

1. Discounted duds - products that are poor performers can attract big discounts during the sales.
2. Fake urgency - messaging like 'must buy, sale ends soon!' or 'only 2 left in stock' encourages panic buying. Take the time to  check if you're really landing a bargain.
3. Unnecessary extended warranties - these are usually nothing more than a sneaky sales tactic to get you to spend more, and may offer no more protection than you already have under Australian Consumer Law.

The passwords hackers hope you're using

'Admin', 'password' and '123456' remain top choices

The end of the financial year sees plenty of us moving money around to get our affairs in order.

And, according to ANZ Bank, that makes the run-up to June 30 a peak time for cyber criminals to strike.

Having secure passwords for online accounts can be your first line of defence.

Remarkably though, plenty of Australians stick to a short list of preferred passwords.

Nordpass says the three most common passwords are: 'admin', 'password' and '123456' - each used by tens of thousands of Aussies.

Surprisingly, the fourth most common password is 'jollyjol', used by around 25,000 accounts.

The crazy thing is, '123456' and 'admin' are also the top two passwords globally - both used by more than 21 million people.

Nordpass found the password habits of an 18-year-old are strikingly similar to those of an 80-year-old, with "12345" and "123456" still emerging as the top password choice across every age group.

Nordpass offers tech password tips:

• Use strong passwords and passphrases
• Keep all your passwords unique, and
• Switch on multi-factor authentication where available.

The super knowledge gaps costing Australians

New research reveals major gaps in super knowledge

New research by Super Consumers Australia shows Australians are paying more attention to their super, but knowledge gaps remain across generations.

As a guide, seven in 10 working Australians monitor their super balance, up from 64% in 2022. But only six in 10 read communications from their super fund.

There are also big gaps in our understanding of how super works:

• One in five don't know they can put extra money into their super
• More than one in four (28%) are unaware they can change how their super is invested after joining a fund, and
• More than one in two Australians don't realise employer super contributions are taxed at just 15%.

Despite the knowledge gaps, Xavier O'Halloran, CEO of Super Consumers Australia, says, "There are things you can do right now with your super to set yourself up for the future."

Super Consumers suggests the following steps for each generation:

• Gen Z: Log in! Sign into your superannuation account and check you're being paid.
• Millennials: Check the insurance in your super meets your family's needs.
• Gen X: Calculate your retirement target to know how much you'll need. (The Moneysmart website has handy resources for this.)
• Boomers: Choose what happens to your super if something happens to you (your death benefit nomination).

In my street, it's visible every fortnight. An elderly man moves silently between bins at night, collecting containers worth 10 cents each.

Down at my local beach at 6.30am, a middle-aged couple in their athletic wear tilt the recycling bins, efficiently sorting bottles and cans into bags that they will later feed into a machine in a car park.

Cashing in on the 10 cents a can or bottle container deposit scheme is widespread where I live.

Those bottles and cans can relieve the stress and anxiety about cost-of-living pressures. One thousand items will earn $100.

Queensland now accepts wine and spirit bottles, but most other states are still rolling this out over the next few years.

The rise of second jobs in Australia

When Australians embark on a side hustle to supplement their earnings from their main job, recycling tops the list for many people, according to a 2024 survey by Finder.

Recycling tops the list of side hustles, with about 36% of Australians collecting bottles and cans in one Finder survey.

Living costs have continued to rise, up between about 2.3% and 4.2% over the past year depending on the household.

Many Australians have long used up their savings, run down the extra in their offset accounts, cut costs such as streaming services, switched to cheaper products, and put off renovations and holiday travels.

Taking on a second or third job to earn an income can be the only way to deal with financial stress and hold onto their home or pay their rent and everyday bills.

Around 973,000 Australians, about 6.5% of the workforce, now have more than one job, according to the latest ABS data.

Some 7.6% of women have a second job compared with 5.6% of men.

Workers aged 20-24 are the most likely to juggle multiple jobs, at about 8% to 9%.

People working in healthcare, social assistance, retail, the arts, recreation services and administration have the highest rate of multiple jobs.

Some seasonal industries, such as fishing, agriculture and forestry, lend themselves to many jobs.

The most popular ways to earn extra money

According to Finder, people prefer earning money through things they enjoy or a job where they can be their own boss and don't have to leave the house.

Providing services and goods through an online marketplace such as Etsy, Uber or Airtasker can make a second job easy to manage and fit around a full-time main job.

Around 27% make and sell things online, while 22% are paid for a hobby.

Why flexibility is driving the shift

Flexibility is key for a second job, with 16% working as food delivery drivers and 15% as tutors.

Both jobs allow people to determine their own hours. Eight per cent work as rideshare drivers.

Using a home as a cashbox is popular for those reaping a second income, with 9% of Australians renting out a room or the whole house. Close to 5% rent out their garage.

The appeal of holding a second or third job is mainly financial, but it can also allow people to try out a second career.

You could run a small business on the side - such as a market stall selling food or clothes - to see how it goes.

Buoyed by a strong labour market, there are a number of companies, such as Australia Post, offering short shifts that can be lucrative.

The hidden costs of a second job

But you need to weigh up the pros and cons before you sign up for a second job.

How can you monetise your skills? For example, a teacher, scientist or engineer may be able to tutor.

When you take on two jobs, expertly managing your time is key.

I have known people to work a second job at night all their working lives, but it requires sacrificing time with family and friends. Exercise regimens often fall away.

While a second job can boost your earnings, it is always a good idea to invest in your full-time job.

Focus on learning more and specialising in your area. Hopefully your reputation as a knowledgeable and hard-working employee will lead to promotions and more income.

If your workplace is toxic, the second job could be a place to shine.

While a second job might boost your home deposit, you need to be disciplined about saving hard.

It is tempting to pamper yourself to boost your spirits by spending money, but this defeats the purpose of a second job.

Do you come clean about a second job with your boss and work colleagues? How would they feel about you working a second job?

Some people with a second job believe what they do in their own time is their own business, so long as it's not interfering with their work and doesn't conflict with the employer's interests - for example, if you are working for a competitor.

Just how long you hold down a second job before you burn out is worth weighing up.

Burnout and fatigue can lead to decreasing productivity, not to mention the potential to make mistakes.

A second job might put you into a higher tax bracket, but this shouldn't be enough to put you off.

If you were to read most job descriptions, you would be forgiven for thinking modern work is still largely about tasks. Deliverables.

As though the day unfolds in a calm, linear fashion and all that is required is a functioning brain and a reasonably reliable wi-fi connection.

This is, of course, nonsense. What most jobs demand is not just competence, but emotional endurance.

The ability to think clearly while context switching between seven priorities across multiple projects, navigate politics, manage workflow and expectations and not flip out at the disengaged, unhelpful or incompetent.

You might start the morning analysing data, move quickly into a team meeting where you need to read the room, manage a difficult conversation just before lunch, respond to a passive-aggressive email mid-afternoon and finish the day presenting confidently to a group while quietly wondering if your earlier decision was the right one.

Each of those moments carries a different emotional requirement.

Focus. Patience. Diplomacy.

Resilience. Confidence. Doubt management.

The modern worker isn't just switching tasks. They're switching emotional states. Constantly. And that switching comes with a price.

Why uncertainty is making you anxious

Each time you shift, a small recalibration of your internal system takes place.

You suppress one reaction, generate another and attempt to remain coherent in the process. Do this enough times in a day and you do not just feel busy.

You feel depleted.

This is not burnout in the traditional sense, but a kind of low-grade emotional fatigue.

The feeling of having been 'on' all day in ways that are difficult to measure, but very real.

Layer on top of this the second major shift in modern work. Ambiguity.

Roles are less defined. Career paths are less linear.

Decisions are made with incomplete information, under time pressure and often without a clear right answer.

In previous generations, work was more predictable, more structured, expectations were clearer and, therefore, emotional demand was lower.

Today, uncertainty is the norm.

Humans are remarkably good at solving problems when the parameters are known.

We are far less comfortable when the rules are unclear and the outcome is uncertain.

This is where anxiety creeps in.

Not because people are incapable, but because their nervous system is trying to make sense of a situation that does not resolve neatly.

Emotional skills are now essential, not optional

Unfortunately, many still treat emotional skills as 'soft'. Nice to have.

This is outdated thinking.

In a world defined by constant change, complexity and human interaction, emotional skills are no longer decorative. They are load-bearing.

The ability to regulate frustration, sit with uncertainty, read emotional cues and respond proportionately is not separate from performance.

It is performance. Without it, even highly intelligent individuals struggle to execute consistently. Decisions become reactive. Communication deteriorates. Relationships strain. Energy drains.

And very few workplaces train for emotional capacity.

We invest heavily in technical skills, strategy and systems, while assuming that people will somehow figure out the emotional side on their own.

Occasionally we run a workshop, perhaps mention 'wellbeing', then return to business as usual.

The result is predictable.

Capable people, operating in emotionally demanding environments, without the tools to manage the load effectively.

This is also where the generational conversation becomes more nuanced than it is often presented.

So what can you actually do about it?

How to handle the pressure at work

Younger generations have grown up in a world where emotional language is more accessible.

They are more willing to name stress, question purpose and push back on environments that feel unsustainable.

Older generations have often developed resilience through necessity, learning to tolerate discomfort without necessarily addressing it.

Neither approach is inherently superior.

One risks over-sensitivity without sufficient coping strategies.

The other risks endurance without reflection. What modern work requires is something different again. Not just awareness. Not just endurance. But emotional agency.

The ability to understand what you are feeling, regulate your response and use that emotional information deliberately.

It is the difference between being overwhelmed by a difficult conversation and navigating it with intent.

Between reacting to uncertainty and working with it. Between carrying emotional load unconsciously and managing it as part of the job.

This is not about becoming calmer, nicer or endlessly patient.

It is about becoming more precise. Recognising when your frustration is useful and when it is not.

When your anxiety is signalling a genuine risk and when it is simply responding to ambiguity. When to push, when to pause and when to let something go.

The demands of work are unlikely to become simpler any time soon.

Technology will continue to accelerate pace.

Roles will continue to blur. Expectations will continue to evolve. The cognitive demands will remain high, but the emotional demands will increase.

The question is whether we can build the capacity to meet them.

And that, increasingly, is what separates people who are merely coping from those who are genuinely effective.

Not just what they know or can do, but how well they can think, decide and act when the emotional load is high.

Which, it turns out, is most of the time.

Reader question

Hi Paul,

I put $25,000 into ETFs and quickly lost up to $2000. Did I panic too soon or make a big mistake?

I am 44 years old, own my own unit outright with a market value of about $800,000. I have no dependants and no debts.

I work four days a week, have pre-tax salary of $95,000 per year and $220,000 in super.

I salary sacrifice an additional $400 fortnightly and have $140,000 in high-interest savings accounts.

I hope to continue low-risk investment strategies to build my savings for a comfortable, not extravagant, and early if possible, retirement. Low confidence has stopped me investing in the sharemarket.

I have attended a number of ETF seminars, and, in September 2025, built the courage to invest $25,000 in ETFs using the online trading platform Moomoo.

I have invested 80%-90% in what I understand are two well-known large cap ETFs and 5% in two small cap ETFs for diversification.

I am hopeful of average returns over the next 20 years, understanding there will be ups and downs.

But what little confidence I had when first investing has quickly evaporated as my portfolio is $1500-$2000 down on my initial investment.

What am I doing wrong? Am I over-reacting? Should I continue investing as per my current plan? I would appreciate your advice. - Tania

Paul's response

First up, Tania, congratulations on buying and paying off your unit. That has been a critical decision and sets you up for life. Once paid off, as you know, you can top up super and build savings.

I get your point about shares.

Most of the problem is that we can see their value daily. If our properties were listed, we'd have a minor heart attack seeing our homes bounce up and down in value every day.

It is something I like about property. We don't really know the value of our homes month to month or even year to year. We just look back after a decade or so and, in most cases, say, 'wow, that was a good idea'.

Your super will hold substantial exposure to shares, but I doubt any of us look at the unit price of our super too often; mostly it is a once-a-year look when our annual statement turns up.

Our super also disguises times of poor share or property performance. You are having compulsory contributions going in, plus your $5200 a year top-ups, so almost every year, good or bad, our account value goes up.

With your ETFs you are doing nothing wrong. You've bought two well-diversified funds and added some smaller cap ETFs, giving you exposure to smaller companies.

This makes sense.

I'm sure you have seen many long-term sharemarket graphs. You have told me you are nervous about shares, but remember you will own a far greater dollar value in shares in super than you hold in ETFs.

I suggest you do with your ETFs exactly what you do with your unit and with your super.

Relax and let a key rule of money work for you. It is not market timing that matters, it is time in the market.

What to read next

• The tax traps when you invest in shares, ETFs and crypto
• Build a set-and-forget ETF portfolio in 2026
• How to choose investments that fit your life
• Five things Aussies should check before investing in an ETF
• The pros and cons of micro-investing

Hyperscalers are ramping up power use at pace, with Goldman Sachs forecasting data centre electricity demand to grow 32% a year to 2030.

This, including economies of scale in token production, will drive up electricity demand from data centres by a compound annual growth rate (CAGR) of 32% over the same period, a sharp increase in energy demand that is transforming the growth outlook in several essential infrastructure sectors.

AI is delivering a dual benefit to utility infrastructure.

On the revenue side, surging AI-driven energy demand is filling capacity and lifting volumes through existing networks; on the cost side, AI-enabled optimisation is improving operational efficiency and reducing waste.

Together, we believe these trends may support stronger cash flow growth and improve returns on invested capital - a combination that is rare in a sector historically valued for stability rather than growth.

Why NextEra is in the sweet spot

NextEra (NYSE: NEE), the US electric utility that sits at the intersection of power demand growth and renewable build-out, offers an excellent example.

NextEra, the largest renewable energy producer in the US, is among the most direct beneficiaries of the AI hyperscaler build-out.

Its subsidiary Florida Power and Light already has over 20GW of large load enquiries in Florida, with 9GW of additional data centre demand at an advanced stage of development.

At the portfolio level, NextEra has announced plans to develop multiple data centre campuses totalling 15GW by 2035, with an upside case of 30GW.

Big tech partnerships are accelerating growth

Beyond the demand uplift, NextEra has entered a strategic partnership with Google to deploy AI tools - including REWIRE - to modernise FPL's grid operations, improve reliability, and reduce costs.

NextEra has also agreed with Google to recommission the recently retired Duane Arnold nuclear plant in Iowa under a 25-year contract, underwriting the economics of the restart and supporting Google's cloud and AI infrastructure in the region.

The combination of surging demand, long-duration contracted revenue, and AI-driven operational improvement positions NextEra as a textbook example of the dual-benefit thesis - and its leadership in renewable energy places it at the forefront of the clean power sourcing that hyperscalers are increasingly required to demonstrate.

On May 18, NextEra Energy announced that it will acquire Dominion Energy in an approximately US$67 billion merger, creating the world's largest regulated electric utility company with a customer base of approximately 10 million.

If approved, the combined entity would also become the third-largest energy company in the US, behind only ExxonMobil and Chevron.

For Essential Infrastructure investors, this transaction underscores the scale of capital and operational capability required to meet the multi-decade electricity demand buildout, and the premium that strategic acquirers are willing to pay for high-quality regulated utility assets positioned at the centre of that theme.

Pick up the July issue of Money for Tom Watson's deep dive into data centres, from investment opportunities to the environmental cost.

This week on the Friends With Money podcast, Money's editor-in-chief Michelle Baltazar speaks with Justin Blaess, principal and portfolio manager at REIT specialist Quay Global Investors, to explain real estate investment trusts (REITs) and how investors can earn investment income through them.

They discuss REITs as listed businesses that own buildings and collect rent, how the sector has evolved since the late 1990s and the GFC, and new opportunities beyond traditional retail, office and industrial property.

Episode timestamps

01:05 What Is a REIT?

01:48 How REIT investing evolved

03:29 Investment hotspots: data centres, storage and senior living

05:59 Expected returns basics

09:34 Interest rates myth

12:43 How to start investing

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Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

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Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

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Australian investors are once again being reminded that the global equity market is evolving faster than many local portfolios.

While debates in Australia continue to centre on interest rates, dividends and cost-of-living pressures, the biggest story in global markets has been the rapid rise of semiconductor champions.

And few embody that shift more clearly than Samsung Electronics.

Now firmly among the world's largest companies, Samsung has recently moved into the top tier of global market capitalisation rankings, even briefly surpassing Meta.

It is an extraordinary turnaround for a business that, not long ago, was trading at levels many investors would have considered deeply undervalued.

The shift most portfolios are missing

This is not simply a story about one company outperforming.

It reflects a deeper structural change in the global economy, one being driven by artificial intelligence, data infrastructure and the sustained demand for advanced memory and computing power.

Samsung sits at the centre of that transformation.

The company is one of the world's largest producers of memory chips, including DRAM and NAND, which are essential to AI workloads, cloud infrastructure and high-performance computing.

As AI adoption accelerates, demand for these components has surged, tightening supply and driving a powerful earnings recovery for semiconductor manufacturers.

In turn, investors have re-rated these companies, recognising their strategic importance in what is quickly becoming a new industrial revolution.

In our view this is a structural shift in demand rather than another turn of the memory cycle, and that distinction is what justifies the re-rating.

Samsung's scale, diversification and technological leadership make it one of the most significant of these players.

Its ability to straddle both memory and logic chips, combined with its vertical integration across consumer electronics, provides a level of resilience and optionality that few competitors can match.

The stock investors ignored, then chased

What makes Samsung's story even more compelling, however, is how recently the market seemed to underappreciate it.

Legendary investor Michael Burry (of The Big Short fame) recently captured this dynamic succinctly.

He wrote: "Some stocks are backed by businesses so good that the time to buy is defined by a simple, recurring rule. Samsung Electronics is the belle of the ball these days.

"Just last year, however, it traded extensively at tangible book value. When Samsung Electronics stock hits tangible book value per share, buy it. Period. No more analysis needed."

This observation speaks to a broader truth about markets.

Even companies with world-class assets and dominant market positions can become mispriced, particularly in sectors perceived as cyclical.

Semiconductor stocks, including Samsung, have historically been subject to sharp swings in sentiment tied to inventory cycles and pricing pressure.

Why this boom could last longer

Yet the AI-driven demand cycle appears fundamentally different.

Unlike previous upcycles, which were often driven by consumer electronics or PC refreshes, today's demand is anchored in structural investment.

Hyperscale data centres, AI training clusters and sovereign digital infrastructure projects require vast and sustained volumes of high-performance memory.

This creates a more durable and visible demand profile, which in turn supports higher valuations over time.

Global indices have been propelled by companies at the forefront of AI and digital infrastructure, while the ASX has struggled to keep pace.

This is not due to a lack of quality among Australian companies, but rather the composition of the market itself. Australia simply does not have a listed semiconductor ecosystem comparable to those overseas.

Avoid missing the next boom

As a result, investors with a strong home bias risk missing out on one of the most powerful wealth-creation cycles of our time.

Samsung's ascent into the world's top echelon of companies underscores this point. It is not just a corporate success story.

It's a signal. Capital is increasingly rewarding businesses that enable and scale the digital economy. Those that sit outside this ecosystem, no matter how stable or income-generating, may struggle to deliver comparable growth.

This does not mean investors should abandon domestic equities. Rather, it highlights the importance of diversification and global exposure.

Accessing sectors such as semiconductors, AI infrastructure and advanced computing is becoming essential for portfolios aiming to capture long-term capital growth.

How to position for the next wave

Importantly, the opportunity is still evolving.

AI adoption remains in its early stages, and the buildout of supporting infrastructure is likely to continue for years.

Supply constraints, technological complexity and rising demand all suggest that companies like Samsung could remain at the centre of this growth cycle for some time.

The lesson from Samsung's rise is clear.

Markets can change quickly, and leadership can shift in unexpected ways. Investors who focus too narrowly on traditional sectors risk overlooking the businesses shaping the future.

The question is no longer whether companies like Samsung deserve their place among the world's largest.

The real question is whether investors are adequately positioned to benefit from what comes next.

For investors seeking exposure to this theme, the Global X Artificial Intelligence ETF (GXAI), which includes Samsung, provides a diversified way to access the companies underpinning the AI ecosystem.

It is no coincidence that global capital has flowed aggressively into this segment of the market.

Semiconductor firms are no longer viewed as purely cyclical manufacturers.

They are increasingly seen as foundational infrastructure providers, the picks and shovels of the digital economy.

The RBA has held the cash rate at 4.35%, but Aussie homeowners may still be able to cut their mortgage repayments by negotiating a lower home loan rate or refinancing to a cheaper lender.

The decision, announced at the June board meeting in Sydney, marks the first pause this year after earlier rate hikes in February, March and May, leaving interest rates at their highest level since November 2011.

While there's no immediate relief from the Reserve Bank, borrowers don't have to wait. Many households are still paying above current market rates and could reduce their interest rate and monthly repayments by asking their lender for a better deal or switching loans.

How much could a lower rate save you?

Homeowners can still cut their own rates

Even without a fresh hike, many mortgage holders are already paying significantly more than they were at the start of 2026.

On an average home loan of $736,000, monthly repayments have jumped by about $342 following earlier increases, according to Compare the Market.

"That's in after-tax dollars, meaning you need to earn roughly $6000 more a year to cover it," says David Koch.

The upside is borrowers don't have to wait for the RBA to move. Many can reduce repayments right now by negotiating with their lender or refinancing to a cheaper deal.

How to land a lower rate

Two key options can help borrowers claw back savings:

1. Ask your lender for a discount

"Everyone should be calling their bank or broker," Koch says.

"We still see borrowers paying above 7%, even though rates in the high 5% and low 6% range are available."

Even small cuts can make a difference, potentially saving hundreds each month and thousands over time.

Competition remains fierce, with refinancing activity up 18.7% over the past year, giving borrowers leverage.

Successful negotiations can deliver cuts of 0.10% to 0.50%, or more for strong borrowers.

2. Consider refinancing

If your lender won't move, switching can unlock sharper rates and better features.

Borrowers often only get serious retention offers when they are about to leave, but banks typically match competitor rates rather than beat them.

Looking beyond the major banks, some lenders are offering rates below 5.9%, with the sharpest deals around 5.84%.

Refinancing does come with costs, including exit fees and government charges, so weigh up the total benefit.

Who is most likely to get a better deal?

Borrowers with lower loan-to-value ratios are in the strongest position to negotiate or refinance.

For example, some lenders are offering sub-6% rates to borrowers with LVRs below 50% to 60%.

Traps to avoid

Focus on the comparison rate, not just the headline rate.

Be careful refinancing doesn't reset your loan term back to 30 years, which could increase total interest paid. If you're five years in, request a 25-year term.

Will rates fall in 2026?

For now, most forecasts suggest borrowers shouldn't expect relief anytime soon.

RBA governor Michele Bullock said a further rate rise remains on the table.

"If we need to increase again, we will," she says.

A Finder survey found 37% of economists expect the cash rate to rise further to 4.60% by year end, while 30% expect it to stay at 4.35%.

Major banks including CBA and NAB expect rates to hold through 2026 before cuts in 2027, although Westpac still predicts hikes later this year.

For borrowers, that means taking action now may be the fastest way to get relief.

In Australia, most properties are sold through real estate agents who charge the seller a commission for their services.

Fair enough. It's that agent's job to find a buyer at the maximum possible price.

But if you are a buyer, that job is in direct conflict with what you want.

While the real estate agent selling the property may seem helpful and friendly, they are not acting in your best interests. In fact, it would be a breach of their obligations to the seller if they were.

Buyers, in the main, go through the demanding process of acquiring a property on their own, with assistance from a conveyancer only after the purchase has been made.

Does this sound like an uneven playing field?

That's where buyers agents come in.

They are licensed agents who are employed by the buyer rather than the seller.

While only about 3% of properties bought in Australia involve a buyers agent, their use is increasing.

How a buyers agent can save you thousands

Apart from having someone in your corner, a good buyers agent can do much more to ensure your purchase is successful.

For starters, they should have a good idea of what properties are worth in a particular market.

A good buyers agent can work with you to identify what you want, set your budget and identify properties that fit your requirements.

They can assess the property so that you don't have to waste your valuable weekends inspecting places that sound good but don't fit your needs.

They can help with the due diligence on a property - coordinating building inspections, and survey and engineering reports.

They can also research potential issues such as zoning, nearby developments or other matters that could affect the property.

Increasingly, Australian investors are prepared to look outside their own area, investing interstate or in a different part of their State.

Using a local buyers agent who understands that market can ensure you are getting good local information.

As real estate laws are State-based and may be different from what you're used to, buyers agents can help help you avoid costly mistakes.

They can also have relationships with developers and real estate agents, which may give them early access to suitable properties or off-market opportunities.

Buyers agents can negotiate on your behalf or bid at auction if you are unsure of doing it yourself.

They can also work with you to ensure that you have everything lined up before purchasing, so you don't risk losing the right property when it comes along.

What you'll pay - and whether it's worth it

As with agents acting for sellers, fees can vary.

According to the Real Estate Buyers Agents Association of Australia (REBAA), for the full service - searching for a suitable property, inspection, due diligence and negotiation - the industry average fee is between 2% and 3% of the purchase price, plus GST and an engagement fee to get started.

Some can charge a flat fee based on the purchase price and an engagement fee.

If you only want to use the buyers agent for specific tasks, such as negotiating on a property you have found yourself or attending an auction on your behalf, the fees can be tailored to suit.

Red flags that could cost you

Because real estate legislation is State based, any buyers agent you use should be licensed to operate in the domain that you're looking to buy in.

Some buyers agents are national but still need to be licensed by the relevant State.

You can check that they are licensed and have insurance through the State's fair trading office (or equivalent).

According to the REBAA, you should also make sure the agent is acting for you and not getting a kickback from developers or other agents.

It says its members are exclusive buyers agents, which means they only act for the buyer.

It recommends you look at a prospective buyers agent's website to see if they sell real estate and question them about possible commissions.

It's also worth paying close attention to fees.

There is an argument that a commission-based fee, while common, isn't in your best interest because it creates a disincentive for the agent to negotiate the lowest possible price.

Some agents will cap the final amount as a percentage of the lower end of your budget.

Or you may agree on a fixed fee.

The REBAA says it has also seen a rise in 'volume-based' buyers agents who are more interested in collecting upfront payments from clients than genuinely trying to fulfil their brief.

"I heard of a sales agent who received a 'shopping list' from a volume buyers agent, which simply outlined the types of properties they needed to satisfy the dozens of clients they were supposedly representing," says REBAA president Melinda Jennison.

"Buyers probably have no idea that the person they have already potentially given thousands of dollars to is doing very little work on their behalf and is often just approaching sales agents to see what listings they have on their books."

She says one of the most important questions to ask is how many buyers the agent currently represents. They should work with a limited number of clients.

"[And] working with clients who have the same briefs is unethical, because how on earth would they determine which buyer deserves which property - unless it was influenced by who has paid the highest fee or who is prepared to make the quickest decision," she says.

"Consumers should also ask how a buyers agent sources properties for their clients, with a big, red flag being those who say it's always 'off market'.

This is not only highly unlikely, but those properties often require a premium to be paid."

Did you know?

In the US, sellers have typically paid two commissions - one for selling the property and another for dealing with the buyer.

Changes will now require buyers to pay their own commissions.

Best-case: what you gain

In many ways, having someone squarely on your side in a property transaction can have benefits - whether it's convenience, negotiating experience, property appraisal or just guiding you through this major investment.

Worst-case: when it backfires

The potential downside is that the wrong buyers agent could end up costing you more for little or no benefit.

What is the wild card?

Demand for buyers agents depends to some extent on the state of the property market.

They are more likely to be used in a heated market when finding and securing a desirable property is harder.

The average Australian wedding now costs $38,252, up 8% in a year, as cost-of-living pressures force couples to rethink how they commit.

Instead of splurging on one day, more couples are moving in together, pooling money toward property or everyday expenses.

But in Australia, that decision can come with many of the same legal and financial consequences as getting married.

So where does a binding financial agreement (BFA) comes in?

Why more couples are ditching the aisle

Weddings are blowing out by 23%, forcing couples to rethink the cost of 'I do'.

The latest Australian Wedding Industry Report shows couples are spending 23% more than planned on average, driven by higher supplier costs, rising expectations and personalised celebrations.

For some, that's enough to skip the aisle altogether.

South Australia's Katharine Crane says a wedding never made financial sense.

After 17 years with her partner and a child together, she sees little reason to formalise it.

"We joke about going somewhere to get married, but does a piece of paper really change anything?" she says.

"Yes, it's a lovely big party. But at the same time, it costs a lot."

Crane says even a modest wedding could cost up to $15,000 - money she'd rather put towards an investment property.

"From a legal perspective, getting married wouldn't change anything either."

When moving in together triggers de factor legal status

Living together can give your partner the same rights as a spouse under Australian law.

If you live together for two years, or have a child, you're generally considered de facto. That means assets can be split if the relationship breaks down.

Skipping the wedding doesn't mean skipping the risk.

ABS data shows 120,844 marriages were registered in 2024, slightly up from 118,439 the year prior.

But couples don't need to marry to fall under the Family Law Act. De facto relationships apply when two people live together on a genuine domestic basis.

Asset division: What happens if a de factor couple splits?

If a relationship ends, courts will assess whether a de facto relationship existed before dividing assets.

They consider factors such as how long you lived together, shared finances, children, and how the relationship was presented publicly.

Legal experts warn that many couples underestimate the financial consequences.

Key upcoming change: From July 1, 2026, Legal Aid NSW has also cut grants across a range of family law matters following Federal Budget changes. That means many separating couples may need to cover legal costs themselves.

How to protect yourself

Research from the Australian Institute of Family Studies shows many Australians don't fully understand how the law treats their relationships.

De facto relationships have surged, rising from 6% of couples in 1986 to 20% today. More than 80% of couples now live together before marriage.

Money habits are also shifting. While 78% of couples have a joint account, 47% keep separate finances.

Experts recommend documenting financial contributions and say couples should consider a BFA before moving in.

Also known as a prenup or cohabitation agreement, it sets out how assets will be divided if the relationship ends.

Both partners must get independent legal advice for it to be binding.

The $6000 wedding alternative

Southern Highlands PR executive Allie Cracknell took a different approach, keeping her wedding to just $6000.

After having a baby, the 32-year-old opted for a simple, intimate ceremony instead of a traditional wedding.

"It didn't make sense to spend tens of thousands on one day when we had a child to raise and bills to pay," she says.

She held a small ceremony at home with close friends and family.

"It was small, intimate, meaningful and affordable."

Online communities are also shaping decisions, with forums like Reddit's r/AusWeddingPlanning drawing millions of views from couples sharing real costs.

The community received 108 million views in the last 12 months as couples turn to real, unfiltered communities to navigate the pressure, expectations and rising costs that come with planning a wedding in 2026.

While Allie admits she loves big weddings, it wasn't the right choice for her.

"The house was small and the budget was tight. In many cases, big weddings aren't really for the bride and groom. They're for everyone else.

"Because honestly, if it were entirely up to me, I would have run down to that registry office in a heartbeat."

For many, the shift is simple: less about the big day, more about long-term financial security.

My annual income averages out to approximately $45,000.

The few thousand dollars I have in savings is always stored and calculated carefully and I am always on a budget.

There is a very clear reason why I'm in this financial position: endometriosis and the resulting chronic pelvic pain that has left me disabled.

For me, those numbers aren't abstract, they shape every financial decision I make.

The hidden cost of endometriosis

While the physical symptoms of endometriosis are becoming more widely known - and, thankfully, are starting to be diagnosed earlier - what is less commonly discussed is the economic impact the condition carries.

Endometriosis - a chronic pain condition that can cause infertility and organ dysfunction - causes tissue similar to the uterine lining to grow outside of the uterus.

According to Endometriosis Australia, it affects more than 830,000 Australian people during their lifetime (approximately 11% of the population assigned female at birth).

Endometriosis Australia cites an Australian government study showing endometriosis costs Australia $9.7 billion per year - $2.5 billion coming from direct healthcare costs, the remaining assigned to loss of productivity.

How a $30,000-a-year illness breaks budgets

At the personal level, a study published in PLOS ONE found that the average cost to those diagnosed is close to $30,000 per annum.

It's a figure that doesn't surprise me given I'm affected by both the direct and indirect costs of the condition every day.

When your career shrinks with your health

Prior to a rapid decline in my health in 2017, I was working full-time in a high-stress job.

My annual income was $65,000 with pathways to grow my role both in scope and pay.

I was incredibly fortunate to have a sympathetic employer who paid out my contracted entitlements (both sick leave and annual leave) so that I could remain financially afloat while I recovered from a stint in hospital, and then redesigned my role so that I was able to return to work part-time.

Freelancing gives flexibility, but no safety net

Four years later, I now work in a freelance capacity.

This allows me to work from home, which is not only easier on my body but also helps to protect my compromised immune system.

With this decision, however, means a relinquishing of key protections such as sick leave.

If the work dries up or if I fail to get government grants for certain projects, I am immediately vulnerable to sliding into poverty and homelessness.

For many of us not yet eligible for the Disability Support Pension, JobSeeker often falls short for disabled and chronically ill people who are unable to maintain consistent work.

The stress of this precariousness sits with me on a daily basis and contributes to the mental costs of living with disability and chronic illness.

The bills that never stop

Then there are the direct health costs.

I need to see a GP who specialises in women's health, so I'm unable to access doctors who bulk bill. The gap in standard appointments is $41.05; for longer appointments it is $68.95.

I see her roughly every six weeks.

I see a specialised psychologist who is trained in health and pain management, as well as trauma. This is a key combination of skills that is essential to my ongoing health and welfare.

I can only see her as a private patient, so each appointment covered by Medicare's mental health care plan carries a gap of $120.

During COVID-19, the number of subsidised psychology sessions temporarily increased from 10 to 20 per year.

That has since been rolled back to 10, meaning I still have appointments where I pay the full rate of $200.

Costs that are incurred with less regularity yet are still essential include appointments with my gynaecologist (the gap ranging from $93.45 to $192.25), pelvic ultrasounds (a gap of $249) and pain medications -the cost and rebate of pain medications vary greatly and not all fit within the PBS.

Why private health isn't optional

Finally, a key cost that is non-negotiable for many with endometriosis is private health insurance .

My policy carries a gap of $150.18 per month. Despite my low income this is something that I must prioritise - without it I face lengthy wait times in public hospitals due to surgery for endometriosis deemed to be elective.

Increasingly, more patients are being forced to "self-insure" by paying the full cost of the surgery (after Medicare rebates) to avoid the current wait times, which can stretch from months to years, depending on the public system and urgency.

Medibank quotes a laparoscopy as costing from $5546, which, even with private health cover, requires $785 from the patient (combining the excess with the out-of-pocket cost) and does not include the cost of the anaesthetists.

This also does not take into account more complex cases or complications.

The cost no one can see

The economic costs of endometriosis are of course only one facet of the disease - there are also the social and mental costs that I value more than the missed professional development opportunities and promotions.

Endometriosis hasn't just affected my health, it has taken away my financial safety net. And that's the cost I fear most.

First published April 2021. Last updated June 2026.

After one of its sharpest falls in recent years, about half of Bitcoin holders are sitting on a loss.

Millions who were told crypto was the future are now watching their investment trade below what they paid. That is easy to accept when prices are rising, much harder when they are not.

If enough investors start questioning the story, confidence can quickly turn to panic. And if that happens, the risk of a broader sell-off rises.

A sell-off without a scandal

Last week, Bitcoin recorded its worst weekly decline since the collapse of FTX in 2022. This time, there was no major fraud, no exchange failure and no obvious trigger. The market simply sold off.

That alone should give investors pause.

For years, crypto advocates pitched Bitcoin as digital gold, a hedge when inflation rises or uncertainty hits. But during the latest bout of geopolitical tension, gold moved higher while Bitcoin fell sharply.

Even believers are pulling back

Billionaire investor Mark Cuban, once one of Bitcoin's strongest backers, says he has sold most of his holdings. His reasoning is simple.

When the pressure came, Bitcoin did not behave the way it was meant to.

That raises a bigger question. If it does not rise with inflation or hold up in times of stress, what role does it actually play?

The new money magnet: AI

There is another force at work. Capital that once flowed into crypto is now shifting to artificial intelligence.

Investors can back listed companies building AI software, data centres and semiconductors.

The momentum and excitement that once powered crypto is now being redirected. Money tends to chase the next big story and right now, that story is AI.

So what now?

Bitcoin has survived sharp downturns before and recovered each time. Long-term believers will say this is just another volatile chapter.

But the debate is changing. Investors are no longer just asking how high Bitcoin can go. They are asking whether the original story still holds.

Best and worst-performing sectors this week

Consumer staples led the market, up more than 6%. Consumer discretionary followed, up more than 5%, with healthcare up more than 3%.

Technology was the weakest sector, down more than 4%. Materials fell more than 3%, while financials slipped just under 0.5%.

In the ASX 100, Steadfast Group jumped more than 30%, followed by CSL, up more than 9%, and Coles, up more than 8%.

At the other end, Greatland Resources fell more than 12%, Capricorn Metals dropped more than 11% and Newmont declined more than 10%.

What's next for the Australian sharemarket?

The All Ordinaries Index showed resilience this week, despite worsening global conditions linked to the US-Iran conflict.

By Thursday's close, the index was down just over 0.2%. Over the same period, the S&P 500 fell almost 2.5%. That divergence matters.

Investors stepped in again around 8700, a level that also held during the sell-off in late May.

This now looks like the market's line in the sand. As long as the index holds above 8700, the bullish view remains intact.

A clear break below could open the door to 8600 or lower.

Defensive shift underway

Sector moves are also telling a story. Consumer staples, discretionary, healthcare and real estate led gains. These are typically more defensive areas.

At the same time, technology and materials lagged. That is notable given both sectors have rallied strongly in recent weeks.

When money rotates into defensive sectors, it often signals rising caution.

For investors who have benefited from the recent rally, the focus may need to shift. It is not just about buying well. It is about knowing when to sell.

"I was sitting in a meeting with a client talking about how we could get people to spend more money buying things they didn't really need," recalls 58-year-old Kim McDonnell.

"And I had a bit of a moment: is this really how I want to be remembered for the rest of my life and is this really the role model I want to be for my kids?"

The answer was no, and she decided to use the skills she'd acquired after a quarter of a century in the advertising and marketing business to try to prompt people to do "a little bit of good in the world".

That led her to set up Thankful, a for-good company trying to draw on the power of gratitude as a motivator for people to do good.

After being unable to find funding for the new venture in Australia, she and her husband, Mike Chuter, sold up in Melbourne and moved to New York. This led to McDonnell's latest venture, Saveful, a for-purpose enterprise that helps households tackle food waste and save money.

The $20 billion problem hiding in Aussie kitchens

Food waste is a significant problem in Australia, where every week each household on average bins two-thirds of a loaf of bread, more than half a litre of dairy products, fruit and vegetables, and 700g of meat.

In 2018-19, Australia produced about 7.6 million tonnes of food waste, or 312kg per person, and nearly three-quarters of that was edible, according to the government-commissioned National Food Waste Strategy Feasibility Study.

This equated to $19.8 billion of food wasted by households, at a cost of $2000 to $2500 each. The latest reliable data is from 2018-19 and since then inflation has undoubtedly pushed the cost significantly higher.

Singles and couples wasted less overall, but their per-person loss is much higher.

How one app could save you up to $4000 a year

Launched at the end of 2023, Saveful aims to educate householders and help them use food they would otherwise throw out.

It's an app that flips the recipe book on its head. Rather than starting with a recipe, which often requires home cooks to go out and buy ingredients, it starts with an ingredient.

Householders can enter a food item they have in their fridge or pantry and Saveful will provide them with recipes to use it up rather than throw it out.

And if they don't have one of the ingredients, the app will give them substitutes so they can use what they have instead of buying more.

Mayonnaise, for instance, can be used in place of eggs in a chocolate cake. Greek yoghurt can replace sour cream, mayonnaise or cream. Mashed banana or applesauce can replace sugar.

The app is also designed to educate users about what's in season and abundant, because these foods are usually less expensive.

Saveful says that the average Australian household could save between $2290 and $4352 a year by rethinking how they use food.

Why most Australians don't think they waste food

McDonnell and Chuter drew on their work in data-driven advertising to prompt change.

"We spent about two years researching to understand behaviour within our homes and understood what the key motivators were and what behaviour we had to overcome," says McDonnell.

"And that's when we identified that a technology tool, an app, could be a powerful way of helping people to save food at home as well as to save money and time."

They found that money is the main motivator for people to act, so they avoid talking to users directly about food waste.

"There's a reason the app is called Saveful and not Wasteful."

Most Australians don't consider themselves to be food wasters and believe that food waste occurs on the farm, at supermarkets and restaurants. In fact, 61% of wasted food is generated in the home.

The simple habit that could cut your carbon footprint

There is a strong environmental element to Saveful as well.

The numbers are striking. Food waste produces 8% of global greenhouse gas emissions.

If food waste was a country, it would be the third largest greenhouse gas emitter, behind the US and China.

About 2600 gigalitres of water is used to grow food that isn't used, equivalent to five Sydney Harbours.

Throwing away a loaf of bread wastes about the same amount of water as a 60-minute shower.

"Another bit of research told us that if we talk about climate change again, that's also not going to resonate. There will be a lot of shoulder shrugging and eye rolling because everyone thinks the problem is so large that our individual actions won't make a difference," says McDonnell.

"In fact, saving food at home is the single easiest and most impactful thing we can all do in the fight against climate change."

The new features designed to save you even more

Saveful introduced a more advanced paid version to sit alongside its free model in late April.

It includes a virtual fridge and pantry feature, where people can enter what they have at home and the app will tell them when and how they need to store it.

There is also a dynamic shopping list that integrates with supermarket shopping list apps, along with several other features.

In April, the app also launched Saveful for Business, a subscription-based platform for restaurants and catering companies.

They can list their surplus food on the app and charities can arrange to pick it up.

It provides businesses with traceability of the quantity and volume of food they have diverted from landfill, and Saveful can convert that into saved carbon dioxide emissions that the business can use in its sustainability and ESG reporting.

Businesses are charged to use the software-as-a-service application according to their size, while it is free for charities.

From small-town roots to a global mission

McDonnell grew up in the remote Queensland mining town of Mt Isa, where her father was a mine security guard and first aid officer.

"My parents were working class. They both worked incredibly hard and everything that we had was a result of their hard work. So if there was one lesson they imposed on me it was hard work and nothing comes easy," she says.

Keen to see life beyond Mt Isa, the then 17-year-old McDonnell moved to Melbourne to study economics but found it boring, so switched to history but didn't finish her degree.

She started work in publishing, then "stumbled" her way into advertising, which led to her own business, to New York and, ultimately, Saveful.

Why she redefined what wealth really means

After watching drought, fire and flood ravage Australian farmers from the other side of the world in 2019, McDonnell and Chuter decided to come home and see how they could use the power of gratitude to help them.

They discovered that while farmers were grateful for the help, they didn't want sympathy but instead wanted their efforts in producing food to be appreciated.

It was in thinking about how farmers' labours could be appreciated that the pair came up with the idea for Saveful.

McDonnell says that her attitude towards money has changed since she sold her advertising business.

"If you looked at it as an outsider, you would think life was pretty good," she says of her days with her own business, holiday home and overseas trips.

"But I felt incredibly unfulfilled by all of that, and in a world that defines success often as excess and where so often our self-worth is defined by our net worth, I think I've learned over the years that my wealth is not what I have in the bank."

The money lessons she lives by today

These days McDonnell is frugal with money, buying only what she needs and, now that she's launched Saveful, practising what she preaches.

Her smartest investment, she says, was in her children's education, which has helped them become "very good, decent human beings", all of whom are working in the service professions.

Their oldest daughter is a teacher of children with learning difficulties in a low socioeconomic area.

Her son works as a nurse in regional Victoria. Her youngest daughter is about to finish a Master's degree in counterterrorism and join the police force.

"The dumbest thing I've ever done with money is probably not always prioritising our needs before the business.

"Anything that we earn gets reinvested back in the business, which some might argue is not always the smartest thing."

But it's not something she regrets.

Running Saveful and Thankful, McDonnell enjoys the creativity and freedom to think about solutions to some of the world's biggest problems in an entrepreneurial way.

Most of all she likes hearing about the impact her work is having on people, like the Queensland mother of five who said that without Saveful, she couldn't afford to put food on the table.

She buys food when it's on special, a cabbage for instance, and uses the app to help her cook it in a way that will mean her children will want to eat it.

"Hearing those stories and hearing the impact that it has, it gives you the inspiration and the motivation to keep going," says McDonnell.

The 2026 FIFA World Cup has kicked off, and the money headlines are staggering.

Hosted by Canada, Mexico and the United States, the 2026 World Cup will feature an expanded lineup of 48 teams, including debutants Cape Verde, Curaçao, Jordan and Uzbekistan.

Whichever way you look at it, the scale of football's crown jewel is immense.

Consider the audience, for one. FIFA estimates that five billion people engaged with the 2022 Qatar World Cup across various media forms, with 1.42 billion tuning in to the final.

So what about the money? With massive audiences, lucrative broadcast and advertising deals and some of the world's richest athletes on show, the World Cup is full of staggering figures.

So, before the action on the pitch really ramps up, here are some financial facts to impress your football-watching friends during the tournament.

Note: All figures have been converted into Australian dollars unless otherwise indicated.

How much are 2026 World Cup tickets?

Unsurprisingly, the World Cup has created controversy well in advance of the tournament itself, with ticket prices being one of the biggest grievances for fans.

Despite the tournament kicking off tomorrow, there are still plenty of unsold tickets. Given that, fans might think that they'll be able to score a last-minute bargain, but that's not the case.

Take Australia's first game against Türkiye this weekend. The cheapest seats available on the FIFA website are going for US$380 ($543.16) while the most expensive are US$1170 ($1672).

That's just for a group stage game. Tickets for the semi-final being held in Dallas next month will set fans back between US$2705 ($3866) and $US11,130 ($15,910).

How much money will FIFA make from the 2026 World Cup?

Given the huge audience it attracts, it's not surprising that the World Cup is a significant revenue generator for world football's governing body.

The sale of rights for the 2022 World Cup in Qatar generated roughly $9 billion for FIFA, with broadcasting and marketing deals making up the largest share of revenue.

Given the expanded nature of the 2026 World Cup - which will feature an additional 40 matches - that figure is set to be smashed.

While the final figure won't be confirmed until after the tournament, FIFA is projecting revenue of US$8.9 billion ($12.7 billion) for 2026 alone - the bulk of which will come from the World Cup.

Who are the highest paid players at the 2026 World Cup?

While there's likely to be plenty of ultra-wealthy individuals in the stands, Forbes reports that, for the first time, two billionaires are set to take the field at the World Cup.

These, of course, are two of the greatest - and now wealthiest - players to play the game: Portugal's Cristiano Ronaldo and Argentina's Lionel Messi.

Despite being in the twilight of their careers, both are also at the top of the high-earners list for players appearing at the World Cup.

Forbes estimates that Ronaldo pulled in US$300 million ($428 million) in on-field and off-field earnings over the last year, while Messi made US$140 million ($200 million).

Among the other mega-earners are France and Real Madrid superstar Kylian Mbappé ($135 million), Norway and Man City forward Erling Haaland ($114 million) and 18-year-old Spain and Barcelona prodigy Lamine Yamal ($61 million).

Which 2026 World Cup teams are worth the most?

The financial side of football isn't just about wages though - for fans, it's also about what players are worth on the transfer market.

So, which national sides at the World Cup are among the most valuable? France tops the list, according to football database Transfermarket.

Boasting players like Mbappé, Bayern Munich winger Michael Olise and Paris Saint-Germain forward Ousmane Dembélé, Transfermarket estimates that the combined market value of Les Bleus is €1.52 billion ($2.5 billion).

England ($2.2 billion) and Spain ($2 billion) are not far behind, while Portugal ($1.7 billion) and Germany ($1.6 billion) round out the top five.

With an estimated market value of around $128 million, the Socceroos squad will be the 35^th most valuable squad at the tournament.

How much is winning the World Cup worth?

Like athletes at the Olympics, most footballers playing at the World Cup will be focused on winning rather than financial incentives. That doesn't mean that there isn't prize money though.

FIFA is set to pay out roughly $936 million to the national associations of teams competing at the World Cup. $71 million will go to the winner and $47 million to the runner-up, while each nation is guaranteed at least $15 million.

That won't necessarily all go to the teams though. Australian players will reportedly receive 50% of any World Cup prize money under their current collective bargaining agreement.

So, if half of that $15 million figure was split with the 26 members of the Socceroos squad, each player would receive $288,395.

Chances are, you've heard about 'private credit'.

That's not surprising. Globally, the private credit market is worth $US3.5 trillion ($4.87 trillion). The Australian market is valued at around $200 billion and growing fast.

And we all know what a mortgage is: A loan secured against real estate, provided either by a bank or a non-bank lender.

And that brings us to real estate private credit.  It's increasingly familiar to most Australians.  But what is it, and how can you get involved? Let's take a look.

What is real estate private credit?

Just like any home loan, the underlying property acts as collateral against the loan.

In real estate private credit, your money is pooled with other investors and then used by the lender to provide mortgages to eligible borrowers.  And those loans are secured by a mortgage over real estate.

In much the same way that banks make money on home loans, investors in mortgage credit can expect to receive regular income earned from the interest charged on the loans.

This can make mortgage credit especially attractive to those looking for dependable income such as retirees. But it can also play a role for investors who simply want above-inflation returns, regular cash flow, low capital volatility, and a chance to add extra diversity to their portfolio.

Why has mortgage credit become so popular?

Real estate private credit has existed in various forms for decades. La Trobe Financial, for example, has been giving investors opportunities to diversify into mortgage credit for more than 70 years.

However, the market has seen substantial growth in the last decade.

In any competitive environment, competition serves to meet the needs of a wide range of borrowers.  Quality borrowers whose employment is contract-based, other self-employed borrowers, people looking to borrow via their SMSF, and even people undertaking smaller construction projects, can all benefit from a competitive non-bank sector.

It benefits investors, too.

Aussie investors have been long-term supporters of mortgage credit.

It's not just about the regular, attractive returns and lower volatility. Mortgage credit is an investment backed by property - an asset that Australians understand deeply and feel comfortable with.

How has real estate private credit performed?

As with all investments, the returns you can expect to earn will depend on the quality of the underlying assets and the expertise and experience of the manager.

For more than two decades, La Trobe Financial's 12 Month Investment Account has delivered consistent outcomes: 100% return of capital, and all income paid at the advertised rate.*

Manager selection matters

The rising popularity of private credit has driven an increase in the number of providers that investors can select from.

It pays to choose carefully.

Not all private credit funds are the same. They have different underlying assets, different approaches to lending and borrower assessment, and importantly, varying degrees of transparency.

At La Trobe Financial, our lengthy track record has been built on a conservative approach to lending, a commitment to providing stability for our investors across all economic cycles, and a philosophy of openness and transparency.

All Australians - whether they are a current investor or not - can visit the La Trobe Financial website and look at our monthly portfolio reports detailing how investor funds are being put to work.

The bottom line

Investing across Real Estate Private Credit can deliver reliable income, above-inflation returns, and low volatility.

Partner with a manager such as La Trobe Financial, with a proven record for disciplined, long-term investing, and mortgage credit can be a useful tool to build a resilient portfolio that is responsive to changes in inflation.

Disclaimers: *Past Performance is not a reliable indicator of future performance.

La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 Australian Credit Licence No. 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321. It is important that you consider the Product Disclosure Statement (PDS) when deciding whether to invest or continue to invest in the fund. The PDS and Target Market Determination is available on our website. To find out more about La Trobe Financial, contact the Investor Centre on 1800 818 818 or visit latrobefinancial.com.au.

Any advice is general and does not consider your personal circumstances.

JB Hi-Fi refunds customers after 'fake discount' claims

Why the ACCC says shoppers were misled

JB Hi-Fi is refunding more than $250,000 after shoppers were misled by "fake discounts".

It follows investigations by the Australian Competition and Consumer Commission (ACCC) that the electronics giant may have misled consumers with dodgy 'was/now' pricing claims for a range of products last year.

The ACCC alleges the products were promoted as being discounted even though some were never offered for sale at the higher price, or were only available at a higher price for a brief period.

ACCC Commissioner Luke Woodward says some customers may have decided against buying the products if they had known the claimed discount was not genuine.

JB Hi-Fi has already provided some refunds, and contacted other affected customers directly to arrange a refund.

Customers do not need to contact JB Hi-Fi to get their money back.

It comes less than a month after Coles was found guilty of misleading discounts by temporarily raising prices by at least 15%, before placing items on a 'Down Down' promotion where the discounted price was the same as, if not higher than, the original price.

The costly catch for Barbeques Galore gift cards

The rule that forces you to spend more

Barbeques Galore is closing, and gift card holders face a costly catch.

An icon of the Aussie lifestyle since the 1970s, the chain's closure will leave 500 employees looking for new jobs.

Signs of trouble emerged in February, when Barbeques Galore, which has 89 stores nationally, went into voluntary administration, with hopes of finding a buyer to solve its liquidity woes.

With no buyer found, that plan has been abandoned, and stores will begin shutting from June 16.

Barbeques Galore gift cards can still be used before June 30, 2026, but there's a catch .

For every $1 of gift card credit, you must spend an extra $2.

To redeem a $50 gift card, you need to spend $150, with an extra $100 from your own pocket.

It's far from a sizzling deal.

Cardholders are being urged to use their gift cards promptly.

After June 30, unredeemed cards will join the pool of unsecured creditors.

The part of Australia scrapping stamp duty

How much first home buyers could save

First home buyers in the ACT could save up to $50,000 as stamp duty is scrapped from July 1.

First home buyers in the nation's capital will no longer have to pay stamp duty, regardless of property value or income.

It makes the ACT the first jurisdiction in Australia to fully abolish stamp duty for first-time buyers .

Currently, only homes under $1 million are exempt, with income thresholds applying.

The change means buyers spending $1.2 million could save around $50,000.

The median house value in Canberra is $1,040,041.

The ACT government is also expanding stamp duty exemptions to pensioners, eligible NDIS participants, and buyers who have not owned property in the past five years.

Stamp duty is also being removed for new unit-titled properties purchased by owner-occupiers, supporting Canberrans, including downsizers , to move into terraces and townhouses.

The new ETF betting on the $1 trillion space boom

What the 'MOON' ETF actually invests in

Global X has launched a new exchange traded fund, with the ASX ticker 'MOON' .

The launch coincides with the US listing of Elon Musk's company SpaceX , as investor interest grows in the rapidly expanding space economy.

Global X CEO Alex Zaika says MOON offers Australian investors a way to access the sector's growth.

"Falling launch costs and advances in satellite technology are reshaping the investment landscape," he says.

He adds the space economy is expected to surpass $US1 trillion ($1.43 trillion) over the coming decade.

MOON includes 28 companies such as Planet Labs, Rocket Lab and Globalstar.

The annual management fee is 0.5%.

The job perk Australians now want more than working from home

One in two workers would take paid health cover over flexible work

Working from home is no longer the preferred job perk of Aussie workers.

One in two Australians would rather their employer pay for private health insurance over flexible work arrangements.

These are the findings of research commissioned by Members Health Fund Alliance.

Cost-of-living pressures have pushed health cover ahead of remote work, salary sacrificing and childcare support.

Only around one in two Australians have health insurance, with cost a major barrier.

Monthly premiums range from about $234 for a single to more than $550 for a family.

With costs this high, it's easy to see why demand is shifting.

Working from home is also becoming more common, and may soon be a formal entitlement.

In Victoria, the Allan Government plans to introduce legislation in July giving eligible workers the right to work from home two days a week.

As living costs rise, flexibility alone is no longer enough to win over workers.

That's the situation that's played out so far this year, thanks to three hikes from the RBA which has pushed the cash rate up 75 basis points to 4.35%.

Richard Whitten, senior money editor at Finder, says that these increases - which banks have largely passed on - have left savers in one of their strongest positions in years.

"The cash rate is now back to where it was two years ago, and that's as high as it's been since 2011.

"We haven't cracked the 6.00% p.a. interest rate mark for savings accounts just yet - but we're getting pretty close."

Where can you get the best savings rates in 2026?

For savers looking for the best return on their cash, accounts with short-term introductory rates are the most competitive at present.

"These accounts tend to offer your classic four-month introductory rate which reverts to a lower rate after that," Whitten explains.

"The top right now is the High Interest Savings Account from Rabobank which will give savers 5.90% p.a. for four months. Then Ubank and ING are both offering 5.85% p.a. for four months as well."

Not far behind these are savings accounts with high, ongoing bonus rates.

Unlike intro rates, savers will earn the bonus rate each month if they meet any conditions attached to the account.

That could be depositing a certain amount, making a minimum number of transactions with a linked card or refraining from withdrawing money.

"Ongoing rates are a touch lower than introductory rates at the moment, with Move Bank offering the highest rate of 5.65% p.a. on its Growth Saver account," says Whitten.

Are the big four banks falling behind on savings rates?

While the top end of savings account rate leaderboard is congested with banks jostling for position and customers, are ANZ, Commonwealth Bank, NAB and Westpac are notable absentees.

"The big four are a fair bit lower, which is interesting," Whitten says.

"ANZ is the best among them, offering 5.10% p.a. with its Plus Flex Saver and Plus Growth Saver accounts."

Westpac's Life account is an outlier, offering a rate of 5.75% on balances up to $150,000. However, it's only for people aged between 18 and 40.

Bonus rate trap: are you earning less than you should?

Even if their money is parked in a savings account with a competitive interest rate, the reality is that many savers will only be earning a fraction of the interest they could be.

How is that possible? They're not activating their bonus rate. More than two in three savings accounts with a bonus rate didn't receive it each month according to a 2023 ACCC report.

Whitten says that the situation has been made trickier for savers in recent years by the number of conditions banks have attached to bonus rates.

"A good example is ING's Savings Maximizer which is a popular account with one of the best ongoing rates on the market at 5.50% p.a.

"But to get that top rate, you have to deposit $1000 each month, make five transactions with a linked debit card and grow your balance. If you don't meet those, the base rate is only 0.01%."

One strategy that may help savers meet their deposit requirement is automating the process. But in some situations, Whitten says that people may be better suited to account with no strings attached.

"Try setting up an automatic transfer each month between the account your pay goes into and your savings account. That way the money will be in your savings before you have a chance to spend it.

"But if you're consistently not meeting the requirements for the bonus rate and only getting a rate closer to zero, moving to an account with a base rate of 3% or 4% could be worthwhile."

Australia's retirement story is changing quickly and testing the foundations of our retirement system.

In the year 2000, the average retirement age in Australia was 61 for men and 59 for women. Two decades on, and it has shifted later and narrowed to 65 for men and 64 for women.

Our life expectancy has increased, and the number of years we spend in retirement is getting longer, 20 years for men and 25 years for women.

We are working longer and living longer, a pattern seen across the developed world.

However, one thing has remained stubbornly constant over this time: for people nearing retirement, there is significant uncertainty about how many years of retirement their superannuation will need to fund.

Retirement, after all, is personal; you don't look at averages when it comes to your life and your needs. And when you layer in the current global economic and market volatility, these concerns are heightened.

The latest Challenger Retirement Happiness Index research found cost of living (57%), financial security (54%), and running out of money in retirement (46%) were the top concerns for Australians aged 60 and over.

Today's retirees are the first generation to have built significant superannuation savings.

Yet half of Australians aged 60+ still say they feel financially insecure. After decades of focusing on saving, when we retire the challenge changes from how much we have saved and accumulated to how much income those savings will need to deliver to last for the rest of our lives, however long that may be.

With retirement now spanning decades, small miscalculations compound.

Underestimate your how long you'll live, ignore inflation, or misjudge market returns, and the consequences can be significant.

Indeed, in March 2021, the RBA forecast inflation to lead to a 9% increase in prices; in fact, we've actually experienced a 21% increase. That translates to a stark choice for an average retiree: either draw down more income or live a life less full.

It's not all gloomy, though; our research also shows that those retirees who have a plan have greater confidence.

The plan doesn't need to be perfect; it just needs to provide some lights to guide the way and to allow people to avoid being overwhelmed when inevitable changes occur.

Working longer is not the solution

One interpretation of rising retirement age is that Australians are solving the problem by simply working longer.

To a degree, this is true. Extended workforce participation can strengthen savings, reduce drawdown years, and boost overall retirement resilience.

Staying in the workforce can also extend the ability to remain connected and to retain a sense of purpose, two areas that have a major positive impact on retirement wellbeing.

But working longer is not universally available. Health constraints, caregiving responsibilities, industry dynamics, and age discrimination limit choice. Many don't choose when to retire; it is thrust upon them.

Retiring at 65 still leaves, on average, two decades of income to fund. The bigger structural point is this: retirement planning remains framed around accumulation, not decumulation.

Around 780 Australians retire every day, however, the vast majority are not transitioning to solutions designed for this stage of life.

We know nearly four in five Australians aged 60+ (76%) would be much happier if they had a guaranteed income for life in retirement.

Yet, more than half of all Australians 60+ (59%) do not know about, or haven't heard of, lifetime income streams as a financial strategy for retirement.

Australia's compulsory superannuation system has been a global success in building retirement savings pools.

But behavioural biases and legacy product designs make converting those pools of retirement savings into sustainable lifetime income an ongoing challenge.

The next evolution of the system can move from a focus on raising balances, to a critical focus on managing longevity and income certainty.

Redesigning retirement

After decades of savings, we are asking retirees to do something that feels completely counter-intuitive - to start spending. A clear knowledge gap persists that needs to be overcome.

First, we must reframe conversations around longevity explicitly. Australians understand market volatility. They feel inflation.

But many still underestimate how long retirement lasts - and how to safely spend across decades.

Second, retirement strategies need to become more tailored and accessible. Blended solutions that include guaranteed income components are likely to play an increasingly important role.

Third, advice matters more than ever. Happiness in retirement correlates strongly with those who have received advice.

Yet advice accessibility remains uneven. If nearly half of Australians feel unprepared, ensuring greater access to advice or some form of guidance - whether digital, hybrid, or traditional - becomes critical.

Finally, behavioural challenges need to be acknowledged and addressed. Almost half of those surveyed expect an income shortfall.

However, research by the Grattan Institute found 65% of retirees super balances in Account Based Pensions remained unspent by the average life expectancy. Expectation shapes retirement behaviour - often towards underspending, over-caution, leading to a reduced quality of life.

A defining decade

Australia stands at an inflection point.

The first generation to retire with substantial super balances is transitioning from savings to spending. Their experience will shape expectations for those who follow.

If nearly half anticipate an income gap, and close to half feel unprepared, we should assume accumulation success will not automatically translate into retirement confidence.

We have built one of the most effective accumulation frameworks in the world. But adequacy at retirement is only the beginning.

The real test is can those balances be converted into reliable, sustainable income for 20 to 25 years or more, through inflation cycles, market downturns, and rising health and living costs, and the resulting increase in retirement confidence.

The next decade will determine whether Australia simply produces retirees with large balances or if we deliver Australians a retirement they can enjoy confidently and happily.

It's become the go-to advice in times of crisis: "Why don't you set up a GoFundMe page?"

Whether it's illness, natural disaster or falling on hard times, even contributions to holiday and wedding funds in some cases, asking for donations has taken on a life of its own in the form of crowdfunding. And GoFundMe is making it all possible.

The popular American social fundraising platform has taken the shame out of asking for money.

In fact, it has normalised it to the extent that even celebrities have jumped on the bandwagon, most recently American actor James Van Der Beek, who in the late '90s was one of Hollywood's most recognisable faces. At age 20, Van Der Beek shot to fame playing Dawson Leery on US series Dawson's Creek.

When celebrity grief turns into crowdfunding

In recent years, Van Der Beek had mostly eased out of Hollywood. There was a steady stream of work, voice acting, recurring sitcom roles, reality TV, but nothing like Dawson's Creek.

Then, in 2024, he made a public announcement, he'd been diagnosed with stage three colorectal cancer.

His battle with the illness was short and, in early February 2026, Van Der Beek's wife, Kimberly, announced his death in an Instagram post. The actor was only 48 years old and left behind six children.

Within a few days, a GoFundMe page had been set up to support his family. The response was immediate, donations poured in.

"The costs of James's medical care and the extended fight against cancer have left the family out of funds," the page said.

"They are working hard to stay in their home and to ensure the children can continue their education and maintain some stability during this incredibly difficult time."

But what does 'out of funds' mean when you're the family of a Hollywood star?

There were no further details.

That didn't stop the donations. At time of writing, more than US$2.8 million has been raised for Van Der Beek's family on GoFundMe.

The fundraiser is still open, with donations as recent as June 10, but speculation about Van Der Beek's financial situation intensified.

It was eventually reported that, just a month before his passing, Van Der Beek and his wife bought the Texas ranch they'd been renting. The property settled for $4.76 million.

Van Der Beek's representatives later reported that the down payment for the property was secured "with the help of friends through a trust so they could shift from rent to mortgage".

'I feel totally duped'

Unsurprisingly, there was a public backlash.

"Does anyone know how I can get a refund on the go fund me?!? I donated hundreds of dollars and I feel totally duped," one person wrote on Kimberly Van Der Beek's Instagram page.

Discourse on Reddit forums was particularly unforgiving.

"The reality is all of us are living within our means, and yeah, we're going to side-eye the celebrity asking for donations to maintain a celebrity standard of living," wrote one person.

This was a sentiment repeated many times across the internet.

Another star, another GoFundMe

Just days after Van Der Beek's death, another Hollywood heartthrob passed away.

Eric Dane, best known for playing Dr Mark Sloan in Grey's Anatomy, died from the degenerative disease ALS.

A GoFundMe page was immediately set up.

"Any contribution, no matter the size, will help provide stability during this incredibly difficult time... for Eric's wonderful daughters," the fundraiser said.

More than 4400 people donated almost half a million dollars.

People who donate to GoFundMe campaigns can also leave public messages. One note, written by a woman calling herself "Cristina J", stood out.

Alongside a $5 donation, she wrote:

"I have Stage 4 cancer and am living on social security so I couldn't donate more, sorry. I have a young daughter myself so I know how awful it can be having a terminal illness and leaving behind a child."

Some estimates valued Dane's estate at about US$7 million at the time of his passing.

But an exact valuation isn't possible, which highlights a bigger question: should celebrities and their families disclose more financial information before asking the public for donations?

When asked about this issue, a GoFundMe spokesperson said every situation is different and "it's ultimately up to donors to decide which causes they wish to support".

For GoFundMe itself, however, every donation also generates revenue, with the platform charging a 2.2% fee plus $0.30 per transaction.

The psychology behind celebrity donations

It's true that people are allowed to donate their money however they please, and it seems unlikely that anyone who donated to the Van Der Beek family cause thought they were in danger of homelessness.

"My best informed guess would be that people in this instance are not giving because of perceived need but rather due to other motivations," says The University of Queensland's Dr Cassandra Chapman.

According to Chapman, who has a PhD in the psychology of charitable giving, there are many reasons someone might support a celebrity fundraiser.

Donating can act as a form of identity expression, allowing people to signal what they value or feel connected to. Nostalgia can also play a role, in particular if the celebrity was tied to meaningful moments in a donor's life.

Interestingly, people may even be using the donations as a way to confront their own mortality.

"There is a theory in psychology, terror management theory, that people's behaviour can be motivated by an unconscious fear of death," says Chapman.

Many people, myself included, grew up alongside James Van Der Beek. He was the prototypical teenager of our time. And now we're all middle aged, and he is dead.

"For some, this may stir up deep-seated fears around their own mortality. Giving could be a way to dissipate that uneasiness."

Is celebrity crowdfunding ethically fair?

Fundraising to memorialise the dead is not without precedent.

According to Simon Longstaff, executive director of The Ethics Centre, communities have long pooled money to honour those seen as having made meaningful civic contributions.

"This is not a new phenomenon, it's been going on for centuries where there have been public subscriptions to fund memorials to notable citizens," says Longstaff.

"It gave people of quite modest means the opportunity to participate in the commemorative process. In a sense, become a contributor to some broader process of recognition."

Perhaps this is a normal part of public grieving, one that has been accelerated by the internet and social media.

Whether that makes fundraisers ethically defensible depends on the intended purpose of the money and the financial situation of the people for whom the donations are being raised.

But the moral responsibility does not rest entirely with the people seeking the funds. Those donating should also examine whether the donation aligns with their own moral and ethical code.

"I think the moral obligations fall on both sides and everybody's responsible for the choices they make," says Longstaff.

The hidden risks of online fundraising

Of course, the internet has made collective giving easier to organise and scale. On GoFundMe alone, more than $1.1 billion has been donated in Australia since the platform's local launch in 2015.

"Last year 1.7 million donations were made to fundraisers, raising $141 million for local causes. In fact, nearly one in four Aussies has made a donation via GoFundMe for causes that matter to them," said a GoFundMe spokesperson.

But is every cause a worthy one? On GoFundMe there are people asking for donations towards their holidays, honeymoons and school excursions. It might be frivolous, but it's not illegal.

"At the end of the day, if somebody wants to do a fundraiser for something they feel is important, then they can do that, as long as it's not fraudulent," says Katherine Raskob, chief executive of the Fundraising Institute Australasia (FIA).

That means you can ask strangers on the internet to contribute to your kitchen renovation, five-star holiday, or dream of owning a Ferrari.

Whether they will want to help you is another matter. But what you can't do is say you're fundraising for one thing, and then spend that money elsewhere.

What to check before donating online

Just how that's enforced depends on the nature of the misconduct and the jurisdiction, laws on fundraising vary across States and Territories.

The Australian Competition and Consumer Commission may intervene if Australian Consumer Law has been breached.

There are also a number of State-based fundraising regulators who can get involved. Platforms such as GoFundMe will have their own rules as well.

If you think you've been scammed, it can be a complex regulatory system to navigate. Better to ensure your donations are going to the best possible cause in the first instance.

"It's buyer beware," says Raskob. "Make sure that you're aware of what it is that you're contributing to, and that you know who they are."

To check if a charity is legitimate, Raskob recommends starting with the Australian Charities and Not-for-profits Commission, where you can review its registration, purpose, reports and leadership.

If you want an extra layer of protection, charities that have aligned with the FIA have also agreed to ethical and transparent fundraising practices.

Ultimately, you can spend your money however you want.

There is nothing inherently wrong with giving money to a cause that feels meaningful, especially if it gives you some measure of peace or happiness. As the GoFundMe spokesperson points out, the decision rests with the donor.

But before donating in an emotional state, consider thinking about the potential impact of your money and whether it's going to the people and causes who need it the most.

This week on the Friends With Money podcast, Michelle Baltazar speaks with Aware Super's Kate Rolfe about new research showing most parents and grandparents are willing to help younger family members buy a first home.

This often involves gifting cash, reducing their mortgages or offering low to no-interest loans, but those good intentions could potentially put their own retirement savings at risk.

They discuss how giving financial support without proper planning can affect tax outcomes and Centrelink age pension eligibility, including potential consequences such as losing access to benefits for years.

Rolfe recommends getting professional financial advice before money changes hands, considering whether to gift the funds or structure them as a loan, and weighing up lump sum versus drawdown payments.

Episode timestamps

01:09 How families can help

02:45 Retirement and pension risks

05:26 Tax advice and structuring gifts

06:43 First home super saver explained

08:32 Lump sum vs drawdown

11:09 Where to start

Listen to this episode of Friends With Money

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Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

Where can I listen to the podcast?

You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

Is the podcast suitable for beginners?

Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.

What topics does the podcast cover?

The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.

How often are new episodes released?

New episodes are released weekly, so you can stay up to date with the latest financial tips and trends.

Can I watch episodes with captions?

Yes, full episodes with closed captions are available on YouTube.

Why subscribe to the Friends With Money podcast?

Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

Subscribe to the Friends With Money podcast today and start learning when it suits you.

Reader question

Hi Paul,

I know you've previously said that HECS-HELP is the cheapest debt you can have, but with indexation my balance just keeps going up.

I'm in my 20s, fortunate to be living at home and working part-time while I study. Should I focus on paying down my student debt or save to hopefully buy a unit one day?

Paul's response

Good question, Ally. The technical answer remains no.

A zero-interest debt, and one that just disappears when you die, is a cracking loan!

Clearly, lenders will take into account your student debt in terms of determining how much you can borrow to buy a home.

Another interesting point is how much you might earn. Your repayments are taken from your pre-tax income once you earn above $67,000.

If you ended up in a high-paying job, at more than $190,000, you'd be paying 47% tax including Medicare levy. A high-income earner would soon shred this debt.

We also need to add in politics.

As you know, the government is reducing student loan debt by 20%.

And when it comes to loan indexation with inflation, the outcry tends to see indexation lower than the actual rate of inflation. Will another 20% cut appear in the future?

My view is pretty simple.

Personally, I'd be building savings to give me the power to invest or accumulate a home deposit. Control what you can is a pretty good rule of money.

We also need to consider our own personality.

This is what I call the sleep-at-night test. I'll pick on me and my wife, Vicki. She would hate having student debt, so she would be better off paying it off and sleeping well.

I'd find it quite entertaining to build my wealth and leave the student debt alone.

If it turned out I earnt a high income, the student debt would be paid down from the compulsory payments.

I'd be happy with that.

Maybe your best solution is to leave this interest-free loan alone, save as you can and revisit the issue as you build your life and career?

What to read next

• Do tradies really earn more than uni grads in Australia?
• The debt mistake that can delay your retirement plans
• What every uni student should know about HECS
• Yes, Gen Z can teach you a thing or two about money
• Ultimate money glossary: What financial terms really mean

If you're a frequent traveller, an annual travel insurance policy could be a convenient way to stay covered across a 12-month period.

But if you've only got one or two trips planned, a single-trip policy might make more sense. Here's how to decide.

How annual travel insurance actually works

If you're not entirely clear on what "an annual policy" entails, you're not alone.

It's commonly mistaken for single-trip cover for a year-long period, when in fact, an annual travel insurance policy (also known as an annual multi-trip or a frequent traveller policy) covers you for an unlimited number of shorter trips taken throughout a year duration.

The key question is whether an annual policy or a single-trip policy makes more sense for you.

Why buy an annual policy?

If you travel multiple times a year, an annual policy can be a convenient and cost-effective option.

You only need to purchase cover once, making it ideal for frequent or spontaneous travellers.

There is also no restriction on the number of trips you can take, so the world is your oyster in terms of coverage.

Just be mindful that maximum per-trip durations apply, and these can vary, depending on your policy.

Make sure you also think about the types of trips you take.

For example, if you regularly go skiing, you should make sure you're covered for this activity.

What is the maximum length of a trip I can take on an annual policy?

Maximum per-trip durations vary, depending on your insurer, but they are generally capped at 15, 30, 45 or 60 days.

If you plan to travel for longer than the maximum length of your set trip duration, you may need to look into a separate single-trip policy.

How can I compare the cost of an annual policy vs several single-trip policies?

The best way to gauge these costs is to do a comparison online.

Compare the cost of an annual policy against quotes for each of your individual trips to get a clear picture of what you'd expect to pay.

Depending on your age and trip lengths, an annual policy can often be a more affordable way to stay covered across all your travels throughout the year.

Can I buy an annual policy if I haven't yet confirmed where I'll be travelling to?

Yes, and this is one of the real advantages of annual cover. If you're not yet sure where you'll be heading in the next 12 months, selecting Worldwide coverage ensures you're protected no matter where you end up.

Worldwide policies will also cover you for trips within Australia as well, provided you are a set distance from home (typically 250 kilometres).

If you're at all in doubt, contact your insurer to confirm the most appropriate region for your policy.

Note that stopovers of less than 48 hours generally don't need to be included, with the exception of the USA.

Do annual policies cover business travel?

Yes. Travel insurers generally don't distinguish between leisure and business trips-your annual policy covers you regardless of the nature of your travel.

The one exception to be aware of is that some corporate annual policies may offer specific cover for business equipment, so it's worth checking the fine print to ensure your policy suits your needs.

Can I buy an annual policy at any age?

No, annual multi-trip policies tend to have age limits ranging from about 65 to 70 years of age (although some insurers extend cover up to 85).

Contacting your insurer directly or using a comparison site is the best way to find a policy that suits your age and travel needs.

When does my annual policy coverage begin?

Coverage under an annual policy begins from the moment you purchase, or a start date of your choosing, meaning if you need to cancel a trip before you depart, you're already covered.

This is one of the often-overlooked advantages of taking out an annual policy early, particularly if you have trips booked well in advance.

All other benefits including medical expenses, lost baggage and travel delays, kick in each time you depart on a trip throughout the policy year.

As always, check your policy wording for the specific terms and cover limits.

Do annual policies cover cruises?

In most cases, cruise cover needs to be added to your annual policy rather than to a single trip within it, meaning you'll pay for cruise cover across the full policy period, even if you only have one cruise planned for the year.

Is an annual policy right for you?

If you're a frequent traveller, an annual policy is well worth considering.

Run the numbers, compare your options, and if you're still weighing it up, contact your insurer or check out a comparison site with any relevant questions.

Young Australians are turning to TikTok and Instagram for investing tips, budgeting hacks and money advice as the cost of professional financial advice surges.

But experts warn some viral money advice may be misleading, promotional or even illegal, with ASIC cracking down on finfluencers accused of crossing the line into unlicensed financial advice.

ASIC has also warned Australians to be wary of creators promising "easy money" or guaranteed returns online.

Creators like budgeting influencer Breana Davidson, known as "Bree on a Budget", have built huge audiences by sharing relatable savings and spending advice aimed at young Australians

It's easy to see the appeal. The cost of seeing a financial adviser jumped 18% in 2025 to $4668 a year, up 67% over the past five years, according to Adviser Ratings' 2025 Australian Financial Advice Landscape report.

At the same time, more than half (63%) of Gen Z Australians rely on social media for financial information, while 52% say they trust what they see online.

RMIT University Deputy Dean Angel Zhong says finfluencers have helped democratise financial literacy by breaking down complex topics in a way younger audiences understand.

"They speak in plain language, meet younger audiences where they are, and cover topics like budgeting and investing that traditional advisers often overlook for clients without significant assets."

The 27-year-old making millions of views from money tips

Sydney finfluencer AJ Clores started sharing investing content after making successful trades during the pandemic while studying at university.

"I put a lot of money in the stock market and it doubled by the time the market recovered, so I was sitting on a good amount of cash," the 27-year-old says.

Two years later, he has built an audience of more than 105,000 followers across Instagram and TikTok, generating more than 30 million video views, according to his management agency.

While some creators push high-risk investments or property schemes, AJ says he focuses on general financial education aimed at younger Australians.

"There are other ways to build wealth than just saving your salary, including investing, which can pay off in the long run," he says.

But he also acknowledges the risks of taking financial advice from social media, where flashy content and viral popularity can blur the line between legitimate education and misleading promotion.

He operates without a financial licence but says he carefully follows ASIC guidelines when creating content.

"I'm trying to break the stigma around investing, and if you speak factually about information, then it's allowed."

Why ASIC is cracking down

While AJ says he follows the rules closely, other finfluencers have come under ASIC scrutiny.

The regulator has issued warning notices to four finfluencers suspected of providing unlicensed financial advice or engaging in misleading conduct.

Another 15 Australian finfluencers are also being reviewed over content involving shares, exchange-traded funds and leveraged products.

ASIC says the crackdown aims to stop consumers losing money from misleading online financial content.

Why young Australians trust finfluencers

Curtin University lecturer Dr Ivy Hii says trustworthiness, relatability and accessible content help create strong "parasocial relationships" between finfluencers and followers.

"Finance education is shifting from instruction to inspiration, driven by connection, not just content," she says.

But she warns followers may take financial advice at face value without properly questioning whether the information is accurate, balanced or regulated.

For some followers, however, bad financial advice online can come at a real cost.

'Influence does not equal a licence'

Professor Zhong says popularity online does not exempt creators from financial advice laws.

"ASIC has made clear that follower count does not exempt you from the law. Influence does not equal a licence."

She says social media often rewards confidence and viral appeal over nuance and accuracy.

Under Australian law, anyone providing financial product advice that could influence investment decisions generally requires an Australian Financial Services licence.

"Finfluencers work best as a starting point for financial curiosity, not a substitute for personalised, qualified advice," she says.

ASIC Commissioner Alan Kirkland says Australians should carefully check a creator's credentials before acting on online financial advice.

"If someone on social media is promising easy money or guaranteed returns, there is a real risk they're breaking the law, and you could be the one who loses money."

'Be careful who you're listening to'

AJ says many finfluencers are simply trying to make financial concepts easier to understand for younger Australians.

However, he admits some creators damage trust by exaggerating their success or hiding commercial relationships.

"Anyone can rent out a Lamborghini for a day and make out that they make $10,000 a day, and some people will believe that."

His advice is simple.

"Be careful who you're listening to," he says.

"Some finfluencers may not disclose that they have a business behind them and could be trying to lure you into a specific type of investment."

Whether it's driving for rideshare services on weekends, selling handcrafted goods online, consulting part-time or earning revenue from social media, side hustles and gig economy work have become mainstream ways to boost income.

As tax season approaches, firms such as H&R Block say they are seeing more Australians navigating tax obligations for the first time, often without realising how the Australian Taxation Office (ATO) views side-hustle income.

Understanding exactly what the ATO expects is essential not only for staying compliant with tax law, but also for avoiding the stress and potential penalties that can come with under-reporting income or misclaiming deductions.

The rise of the side hustle and why the ATO cares

Whether you're a freelancer, gig worker or casual seller, the ATO is watching more closely than ever.

The modern tax office uses advanced data-matching systems and receives income information directly from digital platforms under the Sharing Economy Reporting Regime.

That means platforms such as rideshare, food delivery apps, online marketplaces, content platforms and even payment services are now reporting user earnings straight to the ATO.

According to ATO Assistant Commissioner Tim Loh, record numbers of taxpayers are supplementing their income through side hustles - and many mistakenly assume this income doesn't need to be declared.

It does.

The long-standing principle remains simple: if you earn money, you must report it.

The side hustle income the ATO expects you to declare

Whether it comes from traditional work or a side hustle, all assessable income must be included in your tax return.

This includes:

• Earnings from digital platforms - ride-sharing, delivery, task-based apps
• Freelance or consulting fees
• Sales of goods online or at markets
• Income from subscriptions, advertising or fan donations on content platforms
• One-off payments for services, even if casual

Importantly, it doesn't matter whether the work is casual, part-time or irregular - if you received payment for services or goods, that income is assessable and you must declare it.

Even if your total income from side hustles doesn't exceed the tax-free threshold (currently $18,200), it still must be reported.

Failing to do so simply because you think income is "small" or "under the radar" is a dangerous assumption, especially with expanded reporting and data-matching.

When your side hustle needs an ABN or GST registration

If your side hustle is more than just a hobby - for instance, it involves repeated activities with the intention of making profit - the ATO is likely to treat it as a business.

In those cases, you'll generally need an Australian Business Number (ABN) and may need to register for Goods and Services Tax (GST) if your turnover exceeds the threshold (currently $75,000 per year).

Here's a quick rule of thumb:

• ABN: required if you're carrying on a business
• GST registration: required if your side hustle business earns $75,000 or more

Even before these thresholds are reached, obtaining an ABN can make invoicing, record-keeping and tax compliance easier.

What expenses can side hustlers claim at tax time?

One of the benefits of reporting side-hustle income is that you can also claim legitimate business-related deductions, which reduce your taxable income.

But there are rules:

• Only claim expenses that relate directly to earning your side-hustle income
• Keep all receipts, invoices and records
• Don't claim personal expenses or items that are only partly business-related without proper apportionment

For example, a delivery driver might claim vehicle costs, fuel and insurance proportional to business use, but not meals, personal phone bills or private trips.

Likewise, a freelancer can claim software subscription costs but not personal phone usage unrelated to the work.

Importantly, the ATO generally expects you to keep records for five years - a relatively long period that underpins auditing standards and substantiation requirements.

Hobby or business? How the ATO decides

Consider someone selling handcrafted jewellery.

If they occasionally make a sale to friends without profit motive, it may be considered a hobby and not taxable income.

But if the activity becomes regular, advertised and profit-oriented - such as selling via an online marketplace - the ATO considers this a business and expects income declaration, appropriate registrations and deductions claimed only for work-related expenses.

This fine line between hobby and business isn't always obvious, which is why consulting a tax professional early can save complexity later.

Three side hustle tax mistakes that can cause problems

A few traps can catch side hustlers unaware:

1. Under-reporting income: With platforms reporting earnings straight to the ATO, undeclared income is easier than ever for the tax office to spot.
2. Over-claiming deductions: Claiming expenses that aren't genuinely work-related can lead to audits, penalties or interest.
3. Misunderstanding GST rules: Crossing the $75,000 threshold without GST registration can lead to liabilities.

Five ways to stay on the right side of the ATO

Here are practical steps to keep your side hustle on the right side of the law:

• Track income regularly - don't wait until tax time
• Separate business and personal accounts
• Keep detailed receipts and logs for expenses and work activities
• Set aside money for tax - budgeting 20-30% of side-hustle income is common practice, especially when tax is not withheld at source
• Seek professional advice if unsure

Side hustles and gig work are exciting and flexible ways to boost your earnings - but they're increasingly "in the spotlight" for the ATO.

With sophisticated data systems and expanding reporting regimes, there's less room than ever to overlook tax obligations.

The good news is that with clear record-keeping, understanding of your obligations and timely advice, you can enjoy the benefits of your side hustle without unwanted tax surprises.

But there comes a point when saving too much can limit your quality of life.

The real challenge is not whether to save, but how to balance living well today with preparing for tomorrow.

When saving becomes restrictive

Saving can feel safe, especially if you grew up with financial uncertainty or value control. But when it becomes an emotional safety net, it can stop you enjoying what you have worked for.

It is possible to be financially comfortable and still feel anxious about spending.

Once your essential needs are covered, research shows financial wellbeing depends more on mindset than the size of your bank balance.

If you feel guilty when you spend, or keep putting off meaningful experiences, it may be time to reassess whether your saving habits are helping or holding you back.

Defining what 'enough' means

Financial success is not just about how much you accumulate. It is about whether your money supports the life you want.

Start by defining what 'enough' looks like for you. Picture a satisfying week or year. Consider which experiences and freedoms matter most, and the role money plays in supporting them.

When you are clear on your priorities, saving becomes purposeful. You stop saving for its own sake and start directing money towards what truly matters. That shift makes progress feel motivating, not restrictive.

Balancing the future and the present

A healthy approach to money combines structure with flexibility. You can keep building savings and investments while still making room to enjoy life now.

Automatic transfers to savings or super can make progress effortless. Then you can spend the rest with confidence, knowing your future is already taken care of.

When your money habits align with your values, saving becomes a source of purpose rather than pressure. A plan that allows enjoyment along the way is far more likely to last.

The takeaway

There is a difference between being careful and being constrained. Saving should support your life, not limit it.

The strongest financial plans blend structure with enjoyment, discipline with freedom, and confidence with peace of mind.

It's the worst-case scenario: you're unable to continue making your mortgage repayments so your lender sells your home to cover the outstanding debt.

Fortunately, the vast majority of homeowners won't ever find themselves in this situation, but with interest rates expected to tick up and rising inflation putting pressure on everyday expenses, it might become a reality for more people.

Nearly 1.5 million mortgage holders were at risk of mortgage stress in the three months to April, Roy Morgan research shows - a figure which is likely to rise if rates keep heading north.

So what actually happens if you fall behind on your home loan? Here's how the process can escalate, and what you can do early to avoid losing your home.

Can going into negative equity put your home at risk?

Owing a bank more than your property is worth (negative equity) isn't ideal - but it's a situation more owners could find themselves in if prices in some parts of the country drop.

Commonwealth Bank's most recent forecast, for one, suggests that home values in Sydney (-6%) and Melbourne (-7%) will fall over the remainder of 2026.

"A buyer who purchased with a 5% deposit at the start of this year has very little buffer against falling property prices," says Sally Tindall, data insights director at Canstar.

"If CBA's forecasts play out, some recent buyers in Melbourne could owe the bank more than their home is worth by the end of the year, despite making their mortgage repayments on time."

The major downside of negative equity is that if you're forced to sell, you'll need to cover any shortfall between your loan and the sale price.

"Negative equity isn't necessarily a crisis if you plan to stay put and keep making repayments, but it can become a major problem if you're forced to sell or want to refinance," Tindall explains.

"If you do find yourself in this position, don't panic. Instead, put your head down and keep your mortgage repayments up."

What should you do if you miss a mortgage payment?

While missing a mortgage repayment isn't recommended, it's not the end of the world.

Plenty of people do it by mistake, though depending on how long it takes to fix it, you may be charged a late payment fee and end up with the missed payment on your credit report.

If you miss a payment because you don't have the money to cover it, lenders recommend contacting them as soon as possible and being upfront about your situation.

There are likely options available says Tom Abourizk, a senior policy officer at the Consumer Action Law Centre, including financial hardship support.

"Don't be afraid to ask for hardship assistance from your bank.

"A long-term deferral of a payment or a waiver of one month's payment might make a big difference, and it's probably in the bank's interest to strongly consider that at the very least."

When does a missed payment become a default?

If you can't rectify one or more missed payments, that's when the formal default process may begin.

"The first step in terms of the legal process is that a default notice will be issued," Abourizk explains.

"Default notices have to quite clearly set out that you're in default of your home loan, how you can fix it, what can happen if you fail to fix it and also provide a timeline for how long you have to fix it.

"I believe the standard is normally 30 days that they must provide at a minimum."

At this point, Abourizk recommends that anyone who receives a default notice considers lodging a dispute with the Australian Financial Complaints Authority (AFCA).

Beyond being able to raise any relevant concerns, repossession (they next potential step) can't go ahead until AFCA's assessed the dispute.

"An ombudsman would go through a process of exploring the options between them [the homeowner] and the bank to see if there is a way for them to retain their house, or at the very least, double-check that the bank is doing everything legally and reasonably."

How does the property repossession process work?

Failing an AFCA resolution or a remedy for the default, that's when a lender can begin the process of repossessing the property.

"To start repossession proceedings, banks generally need to go to court, so that would require formal written notice," Abourizk says.

"The person who receives that notice then has ten days to file an appearance, and they then have 30 days to file a defense if they want to do that."

If the court allows the repossession to go ahead, the lender is then likely to go to the sheriff.

"The sheriff would normally go through a two-step process where they notify the person that they have received the writ and will give them a date that they need to vacate by."

What can you do if you're under mortgage stress?

Repossession is a worst-case scenario. There are actions that homeowners - including those feeling the strain of rising mortgage repayments - can take long before that happens though.

Deb Shroot, a financial counsellor and industry liaison at Financial Counselling Australia, says that the first step for homeowners should be assessing their financial position.

"Work out how much you can afford and the maximum you can afford if rates do go up. Knowing what that amount is can be really useful so that you can quantify and track how you are, versus what you need to pay.

"You could also start either paying extra or putting any excess aside so that you do have a bit of a buffer if things get a bit tight.

"And if your plan includes refinancing, don't wait until you are unable to make your payments before looking at doing it."

Should you prioritise your mortgage over other debts?

Though mortgage repayments may be the largest cost for homeowners, Shroot also reinforces the point that other property-related expenses shouldn't be neglected.

"It's not just your mortgage that's really important, but also your strata and rate payments.

"Strata and rates are bound by either by-laws or legislation, so if you fall behind on these there's not the same flexibility of hardship that's available with commercial loans."

A home loan isn't going to be the only debt some households are paying off either, so how should a mortgage be prioritised?

"It depends on the individual, because everyone's finance ecosystems and value systems are different," Shroot says.

"Housing is a need, however, owning your house is not the only option.

"For example, someone might value continuing to send their child to a private school, so they might sell up and rent, whereas someone else would put their kids in a public school."

How can Australians access financial help?

One bright spot for anyone struggling with mortgage stress is that support is available. That includes hardship assistance from a lender or support from a financial counsellor.

"The options are going to depend on a number of factors, including how much equity you have in your home, how big your repayments are, whether you've accessed hardship before and whether you have other debts.

"So, there's really no one-size-fits-all type of solution," Shroot says.

That's why Shroot recommends reaching out to a financial counsellor who can provide advice which is catered to an individuals' situation, values and priorities.

"Financial counsellors can provide free, independent and confidential advice to help you work through the best options and the next steps forwards for your situation.

"There might also be flow-on consequences from someone's decisions, so we'll be able to discuss the consequences of choosing to pay your mortgage over your rates, or the other way around, and the pros and cons of doing that."

To speak to a financial counsellor you can call the National Debt Helpline on 1800 007 007, or you can find a counsellor in your local area or to fit your specific needs by visiting the National Debt Helpline's find a financial counsellor portal.

Reports that SpaceX could seek a valuation of about $7.5 trillion in what would be the biggest IPO in history have investors excited.

It is one of the most extraordinary companies ever built, spanning space exploration, satellite communications, defence and artificial intelligence.

But for investors, this story points to something more important, where we are in the market cycle right now.

One of Wall Street's oldest observations is that the biggest IPOs tend to arrive close to major market peaks. Not because the IPO causes a crash, but because deals of that size only happen when confidence is high and investors are willing to pay almost any price for future growth.

History offers some striking examples. The record-breaking AT&T listing came near the peak of the late 1990s boom before the dot-com crash.

Coinbase listed during the crypto surge of 2021, just months before digital assets fell sharply.

Rivian debuted at a valuation larger than many established carmakers shortly before growth stocks suffered one of their worst sell-offs in decades.

The pattern is not perfect, but it is worth paying attention to.

Companies do not rush to list when investors are fearful. They list when markets are strong, valuations are stretched and demand for risk is high.

Property investors have a similar saying. When the world's tallest skyscraper is announced, it often signals the peak of the property cycle.

Extreme optimism leads to extreme projects, and by the time they are delivered, much of the good news is already priced in.

Major market tops rarely form when investors are worried. They form when confidence is high and making money feels easy. That is why downturns catch so many people off guard.

Eventually, markets reach a point where optimism is fully reflected in prices and portfolios are surging. At that point, the question becomes simple, who is left to buy?

None of this means a SpaceX IPO would mark the exact top. Bull markets can continue rising long after early warning signs appear.

But a deal of this scale could be one of the clearest signals yet that the market is entering a late-cycle phase, where excitement starts to replace discipline.

What are the best and worst-performing sectors this week?   

The best performing sectors were Information Technology, up more than 7%, followed by Energy, up more than 2%, and Utilities, up more than 0.5%.

The worst performing sectors were Real Estate and Healthcare, both down more than 2%, followed by Communication Services, down more than 1%.

Among ASX 100 stocks, Pro Medicus led gains, up more than 20%, followed by Life360, up more than 12%, and WiseTech Global, up more than 11%.

The weakest performers included ResMed, Stockland and AMP, all down more than 7%.

What is next for the Australian sharemarket

The All Ordinaries Index posted a modest loss of 0.54% by Thursday's close, reversing the positive momentum from the previous week.

Materials dragged on the index, while a rebound in Technology and Energy provided some support in an otherwise subdued market.

Encouragingly, downward momentum appears to have eased. While it is still early, this technical shift suggests buyers are starting to reassert control.

If that continues, the market may again target the 9200 level.

This level has already triggered three reversals, making it a key resistance point.

However, repeated tests often weaken resistance over time. A fourth attempt typically increases the probability of a breakout.

Whether the market pauses at 9200 or breaks through quickly remains to be seen.

Either way, the expectation is that the All Ords could trade above this level in the second half of the year.

Even so, annual gains would remain modest. The index started the year around 9000 and has largely moved sideways through 2026.

For now, key support sits at 8800. More broadly, this remains a highly selective market.

While the index has been flat, certain sectors and stocks have delivered strong returns. That makes stock selection critical.

In conditions like these, where the index tells only part of the story, where the money is flowing matters far more than simply tracking the market.

Bob Morton, co-founder and chief executive of The Property Clearance Company, helps Australians uncover hidden value when downsizing or clearing estates.

From forgotten collectables to overlooked valuables, the stakes can be higher than many expect.

Here are six expert lessons to help you avoid costly mistakes and spot what's really worth money.

1. It must be emotional and overwhelming helping to clean out a loved one's home. What's the most common mistake you see people make?

The most common mistake is starting without a clear plan.

In the emotional aftermath of a loss or major life transition, it is easy to begin sorting without deciding the desired outcome.

Without that clarity, the process quickly becomes overwhelming.

Another issue is confusing sentimental value with financial value.

Many possessions carry deep meaning, but that does not always translate into market value. When the two are conflated, decision-making slows and stress increases.

People also tend to delay the process. While this is often well-intentioned, delays can lead to items deteriorating, especially in Australia's climate, reducing their resale value.

The most effective approach is to start with a clear plan, separate emotion from value, and move forward in a structured and timely way.

2. Can you give us a plan of how the company approaches a house to be cleared?

Every clearance begins by defining the objective.

Each family is different, so we first establish what success looks like, whether that is keeping important items, maximising financial return, meeting a deadline, or minimising waste.

Once this is clear, we remove the least important items first, usually waste and recyclables. This reduces clutter and makes it easier to properly assess what remains.

We then work through the home and categorise items into:
• Items to keep
• Items to sell
• Items to donate

This structured approach creates order quickly, reduces stress and ensures valuable items are not overlooked.

3. What is the best way to divide items during a clear-out?

The most effective approach is to prioritise items by importance and value.

Start by identifying what the family wants to keep, usually items with strong sentimental value.

Next, assess items that can be sold, such as art, collectables, jewellery or quality household goods.

Then move on to items suitable for donation. Many charities welcome goods in good condition.

Finally, direct remaining items towards reuse or recycling wherever possible.

4. What should people assess, room by room, as potentially valuable?

Value can exist anywhere in a home, so avoid assumptions.

Sheds, garages and storage rooms are often dismissed as waste, but can contain items of real value.

Another misconception is that large furniture is the most valuable. In reality, smaller, specialised items often carry higher value.

These include retro household items, branded glassware such as Murano, jewellery, coins, original artwork, Australiana, vintage comics and quality tools.

Condition, authenticity and branding are critical. Items that look similar can have very different values depending on these factors.

The safest approach is to pause and assess before discarding, especially smaller items that are easy to overlook.

5. Who can people turn to for valuations or advice?

It is important to seek qualified and reputable advice.

Licensed second-hand dealers are a good starting point, as they understand current market demand and pricing.

For formal valuations, particularly for estates or legal purposes, families should engage accredited valuers who provide independent assessments.

Some experts specialise in areas such as art, antiques, jewellery or coins. If an item appears rare or unusual, a specialist can make a significant difference in determining value.

Taking professional advice helps ensure valuable items are not overlooked or undervalued.

6. What is the most important advice you can give after years of handling estate clearances and downsizing?

Plan ahead while there is still time to make thoughtful decisions.

Ensure you have an up-to-date will and appropriate power of attorney arrangements.

An experienced estate lawyer can help provide clarity, not just for major assets but also personal possessions.

It is also important to anticipate practical situations, such as whether another family member living in the home has the right to remain there.

These details can prevent disputes later.

Finally, consider gifting meaningful items while you are still alive.

Passing on treasured possessions can be a deeply personal and uplifting experience. It allows you to see the joy they bring and removes uncertainty for your family in the future.

The bottom line

Taking these steps in advance - clear legal planning and thoughtful distribution of personal possessions - can significantly reduce stress for families and ensure that important decisions are made with intention rather than under pressure.