Why your power bill could soon go up $250 a year
Power costs to soar up to 9%, UK pension worth $480,000 - are you eligible? And the lenders pushing battlers over the edge. Here are five things you may have missed this week.
Power bills to jump up to 9%
Just when you thought it was safe to plug in the heater, our national energy regulator has warned power bills could rise as much as 8.9%, or $249 annually, for households in NSW, South Australia and south-east Queensland from July 1, 2025.
Victoria's energy regulator has proposed an average price hike of $103 - a 3% increase from last year.
Consumers don't have to simply wear the price hikes.
Clare Savage, chair of the Australian Energy Regulator, says "Your retailer is required to tell you on the front page of your bill at least once every 100 days if they can offer you a better deal."
Or, head to the Energy Made Easy website to see which providers are offering a better deal in your neighbourhood.
Finder estimates the difference between the cheapest and most expensive plans can be up to $800 annually.
Payday lenders pushing borrowers over the edge
A new report by money watchdog ASIC shows predatory lenders are pushing battlers to take on bigger loans that create more debt and incur higher fees.
ASIC found a jump in the number of 'medium amount credit contracts' (MACCs) being provided to customers.
MACCs are loans for $2001 to $5000 with terms below two years.
Coupled with a rise in missed repayments, the increase in MACCs indicates these borrowers are struggling with debt during a cost-of-living crisis.
MACCs are a very pricey type of debt.
Lenders can charge:
- a set-up fee of $400
- interest up to 48% per year, plus
- default fees if you don't pay on time, and
- enforcement costs if they need to chase you for the money.
Senior financial counsellor Kirsty Robson said that the report confirmed what she and others had heard from callers to the National Debt Helpline.
"We often hear from people who applied for loans of just a few hundred dollars but were provided just over the threshold amount of $2000.
"These callers tell us of being pressured to accept more debt, which also means the provider can charge substantially more fees and take a security against their possessions, like their car," notes Robson.
ASIC has already taken action against a number of small credit providers including Swoosh Finance and Sunshine Loans.
If you're struggling with debt, call the National Debt Helpline on 1800 007 007. It offers a free, confidential financial counselling service.
Expats could be entitled to UK pension worth $480,000
Two million Aussies and expat Brits are eligible to claim a UK pension worth $24,000 annually from age 67.
With just three years of work in the UK, it is possible to top up retirement savings by 'buying' any missing years of National Insurance (NI) contributions.
John Ring of XtraPension, a service that helps people apply for a UK State Pension, says the UK pension can be "a life-changing amount of money".
Yet most people don't realise it's there for the taking.
Until April 5 it is possible to buy up to 18 years of NI contributions.
After this, you can only buy six years.
According to XtraPension, most people who qualify will get a guaranteed $40 back for every $1 they pay to the UK government.
It could add up to a pension paying $480,000 over a 20-year retirement.
Ring explains, "Buying years means paying voluntary National Insurance contributions directly to the UK's His Majesty's Revenue and Customs (HMRC).
"It has always been possible to buy six past years, but the present option (available until April 5) of buying 18 past years represents a valuable opportunity to boost retirement income."
He adds, "As long as your application is in the HMRC queue, you'll be okay even if it takes HMRC until Christmas to reply."
XtraPension says eligible Australians may be able to buy some or all of the 18 past years at a cost of $350 per year, or a $6300 one-off cost.
To see if you are eligible, visit the XtraPension website or call 1300 339 559.
One in three Aussies keen for a 40-year mortgage
Not so long ago, the standard home loan term was 25 years.
Now it has crept up to 30 years.
Research by Finder shows one in three Australians would take out a 40-year home loan if it made their loan repayments more affordable.
A number of lenders already offer 40-year mortgages including G&C Mutual Bank and Australian Mutual Bank.
It comes as the average Australian home loan hits a record high of $665,978.
A 40-year loan term (equal to about half the average life expectancy in Australia), would certainly lower repayments.
The downside is a significantly bigger interest bill.
Repaying a $665,978 loan over 30 years (assuming today's average standard variable rate of 6.99%) would see the total interest charge add up to $902,000.
Repay the same loan over 40 years, and interest comes to $1,258,000 - almost double the sum borrowed - and an extra $356,000 on a 30-year term.
Scam losses fall but ex-tropical Cyclone Alfred could bring a fresh storm
Good news - scam losses in Australia fell by $700 million in 2024, a drop of almost 26% on the prior year.
The not-so-good news?
Scams still fleeced victims to the tune of $2 billion last year.
Australian Banking Association CEO Anna Bligh says Australia's world-leading approach to tackling scams is working.
But she warns, "International criminal gangs will continue to evolve their tactics and find new ways to steal money."
It comes as Westpac is urging Australians affected by ex-Tropical Cyclone Alfred to remain vigilant against scammers exploiting the weather event.
Ben Young, Westpac's head of fraud prevention, says scammers often prey on vulnerable individuals during times of uncertainty.
Potential scams include fake donation sites, and fraudulent offers of support from scammers impersonating banks, insurance companies, charities or government organisations.
Red flags include unsolicited contact via social media, direct messages, or chat platforms, and requests for bank details, PINs, passwords, or card information.
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