The true cost of keeping up with the Joneses - or Kardashians

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Keeping up with the Joneses - or Kardashians - is costing Aussies more than $1300 each year, big super outed for investing in nuclear weapons, and one in five property investors head interstate for affordability. Here are five things you may have missed this week.

The high price of keeping up appearances

Plenty of us are succumbing to peer pressure, with the average person spending $1309 a year beyond what they can afford to keep up with the Joneses - or Kardashians.

keeping up with the joneses or kardashians is costing aussie households

One in eight Australians have gone into debt trying to match a mate's seemingly ideal lifestyle.

These are the results of a Finder survey, which shows one in three Australians have felt pressured to spend to replicate the lifestyle of a friend or family member.

Dining at expensive restaurants, pricey holidays and buying designer clothing are the most common steps Aussies take to keep up with others.

Finder's Sarah Megginson says it's a common and costly phenomenon, adding, "People are putting themselves in financial jeopardy, with some even taking on debt they can't afford."

Megginson believes 'comparisonitis' is heightened by social media.

"Never before have we had such an intimate and behind the scenes view into other people's lives - but it's important to remember it's a highlight reel."

She adds, "The millionaire next door might be drowning in debt to afford that apparent life of luxury."

Big super investing in nuclear weapons

Amid a crackdown on greenwashing, a new report reveals that 13 of Australia's top 14 super funds are investing in nuclear weapons companies, in some cases in investment options described as 'responsible'.

The research by The Australia Institute (TAL) and Quit Nukes found that in 2023, at least $3.4 billion worth of retirement savings was invested in companies involved in the production of nuclear weapons.

Previous research by TAL found seven out of ten Australians say their super fund should not invest in companies involved in nuclear weapons production.

AMP, AustralianSuper and REST are among the super funds identified by the report as holding investments in nuclear weapons companies in 2023. In most cases the holdings were less than 0.5% of fund portfolios.

Even so, Rosemary Kelly, Director at Quit Nuke, says "Super funds are being sneaky by boasting of policies to exclude 'controversial weapons' but not counting nuclear weapons as 'controversial'.

The study suggests super funds could pull out of nuclear weapon companies without materially impacting investment returns.

One in five buyers eye off interstate properties

Negative gearing may be in the headlines once again, but that hasn't stopped lending to property investors soaring to levels not seen since 2022. And buyers are increasingly looking beyond their home state in the hunt for affordability.

According to PropTrack, in the 12 months to August 2024 over one in five (22%) purchase enquiries on realestate.com.au came from buyers based in a different state to the one they were looking to buy in.

The Northern Territory, which offers strong rental yields and affordability, was the market most attractive to interstate investors, followed by Tasmania and the ACT.

NSW, the nation's most expensive state for real estate, attracted the lowest level of interest among interstate buyers.

Buying outside your home state calls for a significant level of research as market conditions vary widely.

It can also pay to invest in a reputable property manager.

The Australian Taxation Office (ATO) no longer allows property investors to claim a tax deduction for the cost of travel to inspect a rental property, so landlords may need to place considerable trust in their property manager.

Betashares launches defence-focused ETF

While super funds have been outed for investing in the production of nukes, Betashares has just launched a new themed exchange traded fund that focuses on companies involved in the manufacture of weapons and military equipment and technology.

It may not be for everyone, but the Betashares Global Defence fund (ticker code: ARMR) invests in up to 60 companies based in NATO-aligned countries that derive more than half their revenues from the development and manufacturing of defence equipment.

Stocks held include Lockheed Martin, BAE Systems, Safran SA, General Dynamics and Raytheon Technologies.

The fund is heavily skewed to the US defence sector, which accounts for 70% of the overall portfolio.

ARMR aims to tap into the increase in global defence spending, which reached $US2443 billion ($3638 billion) in 2023, an increase of 6.8% from 2022, the steepest year-on-year increase since 2009.

The countdown is on to lodge your own tax return

If you're among the 4 million Australians who do their own tax return, it's time to get cracking.

The ATO has issued a reminder that the due date for lodgment is October 31, 2024.

This date only applies if you lodge your own tax return. If you use a registered tax agent, you may have until next May to get your return sorted.

If you plan to use a tax agent, ATO Assistant Commissioner Rob Thomson says you need to be on their books by October 31.

For taxpayers concerned about managing a tax debt, Thomson advises, "Contact the ATO prior to the deadline to lodge so that we can take your circumstances into account."

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A former Chartered Accountant, Nicola Field has been a regular contributor to Money for 20 years, and writes on personal finance issues for some of Australia's largest financial institutions. She is the author of Investing in Your Child's Future and Baby or Bust, and has collaborated with Paul Clitheroe on a variety of projects including radio scripts, newspaper columns, and several books.