The $2177 savings trap catching Australians out

Australians could miss out on $2177 in savings interest, some workers face a greater risk from AI disruption, and homebuyers may need to prove where their deposit came from. Here are five important money stories you may have missed this week.

The $2177 'savings bonus' trap

Complex savings account conditions can see savers miss out on high returns.

With three consecutive rate hikes this year, it's fair to assume your savings will earn more.

But AMP says high interest rates on savings are often tied to strict monthly deposit requirements or spending targets, meaning the advertised return is not what most people actually earn.

Modelling by AMP Bank shows a saver with $40,000 could be up to $2177 worse off over the course of a year if they fail to meet bonus conditions on a savings account compared to using a simple, no-conditions account.

It's an issue driving growing frustration among consumers.

According to AMP Bank:

• More than half of Australians say savings accounts are too complicated.
• Close to seven in 10 believe banks try to catch people out to avoid paying the full rate.

John Arnott, Director, AMP Bank GO, says, "When interest rates go up, people assume their savings will benefit automatically, but if you're not meeting every condition, that often isn't the case.

"For many Australians juggling busy lives, the reality is those hoops are easy to miss. And that can cost you thousands over time.

"When you're comparing savings accounts, it's important to look beyond the headline rate.

"Short-term 'honeymoon' offers can act like a bait-and-switch, delivering a strong return upfront before dropping back to a much lower base rate, often with little visibility."

AMP Bank GO currently offers 5.10% p.a. for personal savers and 4.75% p.a. for business savers.

Women and professionals most at risk from AI disruption

Government research shows some occupations face far greater exposure to AI than others.

A report from the Department of Employment and Workplace Relations (DEWR) suggests there is no evidence so far that artificial intelligence (AI) is driving a major upheaval in the labour market.

That's not to say jobs won't be impacted in the future.

According to DEWR, aged care and disability workers plus a range of tradie roles from sparkies to chippies are least likely to be impacted by AI.

At the other end of the scale, several degree-qualified roles such as accountants, software programmers and marketing professionals are classified as 'most exposed' to the impact of AI.

DEWR found nearly 70% of workers in the least-exposed group are men, while over half those in the most-exposed group are women.

In worrying news for uni students, 44% of the most-exposed group are tertiary-qualified jobs.

The report notes that predictions about the potential impact of AI on jobs differ dramatically, and a wide range of outcomes is possible.

Home buyers may need to prove where their deposit came from

New anti-money laundering laws mean buyers may be asked to explain the source of their funds.

A cash gift from the Bank of Mum and Dad or an inheritance from well-meaning relatives can see homebuyers caught by new Australian Anti-Money Laundering laws that came into effect on July 1.

The new rules apply if you're buying, selling or transferring property, and it can see your real estate agent, conveyancer or solicitor complete a 'source of funds' check before they can act on your behalf.

You may, for instance, be asked to provide evidence of where purchase funds or your deposit came from.

The solution can be as simple as providing a statutory declaration that you received a cash gift from family members.

The key is to speak with your solicitor at an early stage so that the paperwork is ready to go when you see a property you're interested in buying.

The tax scam warning every Australian should know this July

Scammers are exploiting tax season to target Australians expecting a refund.

Tax time is one of the busiest periods of the year for scammers, with fraudsters using texts, emails and phone calls to impersonate the ATO.

Jenny Wong, tax lead at CPA Australia, says, "Tax time is a peak period for scam activity.

"Scammers use email, text messages and phone calls impersonating the Australian Taxation Office (ATO) or tax agents to trick people into handing over personal information or money."

Wong advises against clicking on unsolicited links or providing sensitive information in response to unexpected communications.

"If something doesn't seem right, pause and verify the source," says Wong. "Access official services through the ATO website or app, or contact your registered tax agent directly."

NSW drivers could save more than $500 a year under new toll cap

The lower weekly cap is expected to extend toll relief to another 200,000 motorists.

Sydney motorists could save more than $500 a year after the NSW government lowered the weekly toll cap from $60 to $50.

Sydney has more toll roads (13 in all) than any other state, and the saving is expected to benefit an additional 200,000 Sydneysiders, on top of the 948,000 toll accounts that have reached the previous $60 threshold.

Western Sydney residents are set to be the biggest winners of the toll cap as they account for half of all toll relief claims.

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