HECS discount to be backdated to June 1
Millions of Aussies see 20% wiped from student loans, one simple step to retire with $220,000 more, and the new cars that are closet gas guzzlers. Here are five things you may have missed this week.
3 million Australians just had 20% wiped off student debt
Thursday saw the Senate pass legislation to officially wipe 20% off student debt.
It's a massive saving for more than three million Australians.
Graduates with the average HELP debt of $27,600, will see a $5520 reduction in the balance owed.
Backdated to June 1, this initiative impacts all HELP, Vocational Education and Training (VET) Student Loans, Australian Apprenticeship Support Loans, Student Startup Loans, and other student loans.
In addition, the income threshold for debt repayments has been raised from $54,435 to $67,000.
For someone earning $70,000 this will reduce their minimum student debt repayments by $1300 a year.
Prime Minister Anthony Albanese, says, "This is a big deal for 3 million Australians. Just out of uni, just getting started, this will take a weight off their back."
It comes as a number of lenders are changing the way student debt is assessed in home loan applications.
NAB, for example, has just announced that from July 31, if someone owes $20,000 or less in student debt, it won't affect how much they can borrow for their new home. It can mean a handy uptick in borrowing power.
Tax refund in advance? Read the fine print
The Australian Taxation Office has officially given the green light to start lodging tax returns, saying over 91 million pieces of information have now been pre-filled.
But for those who are desperate for a tax refund, national tax agent H&R Block is offering a quicker option - an advance of your refund.
It lets you access up to 50% of your estimated refund, to a maximum of $1000.
The catch is that what's really on offer is a short-term loan from wage advance firm Beforepay.
Like all loans, it comes at a cost - in this case, a 5% fee.
As consumer group CHOICE notes, a $50 fee on a $1000 loan may not sound like much. But it can make a big difference to battlers.
There is also the risk that your tax refund is smaller than anticipated, which can see Beforepay debit payments out of your bank account.
The Tax Practitioners Board has put tax agents on notice that tax time loans may not be fair or in their clients' best interests.
Given that most online returns are processed within two weeks, it could pay to wait just a few more days.
Engage with your super, retire with 300% more
The 15 million Australians who have their super in a MySuper account could end up missing out in retirement.
A new report by superannuation research firm Borromean Consulting shows that engagement with our super pays off.
It found that across every age group, members of 'choice' style funds (those where you actively decide how your super is invested) have significantly higher average balances than those with MySuper accounts.
By retirement, the typical Choice member holds nearly $220,000 more than their MySuper counterpart.
Fund members with a Choice account aged 70-plus, have over 300% more in super compared to those with a MySuper account.
The report notes that higher Choice balances are not necessarily the result of better investment returns or bigger contributions, but rather the impact of members being aware of, and engaged with, their super.
It adds, "For many members, staying in MySuper is not just passive - it's costly."
Popular cars use up to 33% more fuel than advertised
Don't be surprised if your new car is chewing through more fuel than anticipated.
The Australian Automobile Association (AAA) tested 30 cars on roads around Geelong, Victoria, and found 25 consumed more fuel than advertised.
The Hyundai Kona Hybrid recorded the greatest discrepancy, using a whopping 33% more fuel on-road than in lab tests.
The Kia Stonic (26% more fuel), and Hyundai i30 Hybrid (17%) rounded out the top three for fuel discrepancies.
These results are not a one-off.
Since August 2023, the AAA has tested 114 popular cars, vans and utes, with more than three-quarters found to be using more fuel than advertised.
AAA managing director Michael Bradley says, "Some vehicles perform as advertised, but most do not."
The current top-selling vehicle - the Ford Ranger, was one of the more accurate performers, using just 6% more fuel than advertised.
Hang a masterpiece at home for an affordable price
What better way to impress your dinner party guests than with an original Margaret Olley artwork hanging in the lounge room?
Works by well-known artists can be a pricey conversation starter.
Paintings by Margaret Olley can command prices of $30,000-plus at auction.
But there is a more affordable option.
Artbank is a Government initiative designed to support Australian artists while giving homeowners and businesses a chance to enjoy fine art.
Rather than selling artworks, Artbank offers pieces for rent.
Rents range from as little as $165 to $11,000 per year, with a minimum annual spend of $550.
The neighbours need never know your artworks are rentals.
Head to the Artbank website to browse the collection.
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