How rental bonds could dob in dodgy landlords
By Nicola Field
The ATO is cracking down on landlords who don't declare rental income, laundry hacks to save $1000 a year, and the popular PIN used by one in 10 Australians. Here are five things you may have missed this week.
2.2 million landlords set to be scrutinised by Australian Tax Office
2024 was a bumper year for investors getting into the property market, with new loans to landlords up 29.5% for the 12 months to September.
For newbie landlords (and more seasoned investors) it pays to get rental income right at tax time.
The Australian Taxation Office (ATO) is ramping up its scrutiny of landlords, using details of rental bonds to hone in on property investors who don't report rental income.
The bond data, sourced from rental bond authorities in each state and territory, not only lets the ATO identify the landlord but also the rent being paid.
From there, it's just a simple cross-check to see if landlords have declared the right rent in their tax return.
This process pinpointed 5600 taxpayers who fudged their rental income in 2022-23, raising an additional $23 million in tax revenue.
The ATO expects to collect data on approximately 2.2 million individuals annually, with bond data-matching to be used through to 2025-26.
Change laundry habits, save over $1000 annually
The laundry may be the smallest room in the home but it can deliver big savings.
Consumer group CHOICE says a few changes to laundry habits can see us pocket savings of $1189 annually.
CHOICE editorial director, Mark Serrels, says, "We recommend doing full loads in cold water rather than small loads in warm water, switching to a cheaper top-performer detergent, and using less of it."
Serrels also suggests ditching fabric softener: "It's not worth it and will save you around $77 a year."
Instead of using an energy guzzling clothes dryer, use a clothesline or drying rack to finish the job.
"Reducing how much you use your dryer could save you nearly $450 a year," says Serrels.
1234 - the PIN almost one in 10 Australians use
Those pesky four-digit personal identification numbers (PINs) are a fact of life.
But with so many PINs required for different devices, cards and accounts, many of us are sticking to the same four easy-to-remember numbers.
And it's putting our finances at risk.
The ABC analysed 29 million PINs from Have I Been Pwned? - a website that lets people check if they've been impacted by data breaches.
It turns out 1234 is the single most popular PIN, accounting for almost one in 10 of the millions of PINs reviewed.
In second place is 0000, followed by 1111.
Some people try to outsmart crooks by mixing around popular numbers.
This explains why 1342 (a mash-up of 1234) comes in as the fourth most popular PIN.
Bottom line, if you use these numbers it's time to change to help keep your devices and accounts secure.
Up to 700,000 retirees could be paying unnecessary extra tax
The Super Members Council (SMC) says around 700,000 Australians aged 65-plus who aren't working full-time still have their super in an accumulation (savings-phase) account.
This could see these retirees, who collectively hold $90 billion in accumulation accounts, pay an average of $650 in extra tax on their super each year.
It's happening because investment earnings in super funds are taxed at 15% in the accumulation phase, but are tax-free in the retirement phase.
According to SMC many people don't make the change because they simply don't know what to do.
Super Members Council CEO Misha Schubert says, "Not knowing enough about super can lead to poor decisions, like leaving accounts inactive or withdrawing funds without proper planning."
Most super funds provide free or low cost advice to members.
Yet fewer than one in five Australians - and just 26% of current retirees - have sought financial advice from their fund.
People First Bank called out for branch closures
The Financial Sector Union (FSU) is calling out People First Bank for not living up to its name, saying the bank is putting customers, communities and staff last by closing 18 branches and cutting almost 100 jobs.
People First Bank is the result of the 2023 merger between People's Choice Credit Union and Heritage Bank.
FSU national assistant secretary Jason Hall, says, "It really plumbs the depths of irony for a bank calling itself People First to start their new brand by slashing branches and staff, putting last the people they claim to put first."
People First Bank is not alone in closing branches.
Less than a fortnight ago, the FSU said the Bank of Queensland "used the cover of summer" to close 14 branches, across Queensland, WA, NSW and Victoria.
Data from bank regulator APRA shows the number of bank branches dropped by nearly 50% (3239 branches) between 2011 and 2024.
The FSU is calling on the federal government to introduce minimum standards that ensure all Australians have access to choice in basic banking services.
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