Budgeting

Relocating to a new city is a major decision, and for many Australians, moving interstate brings both challenges and opportunities. Among Australia’s cities, Melbourne, Victoria, is particularly appealing for those seeking a fresh start. With its vibrant culture, strong job market, and high quality of life, Melbourne is an attractive destination for those considering a move. Why Move to Melbourne? Melbourne is Australia’s second-largest city and has consistently ranked as one of the world’s most liveable cities. The city’s reputation is built on a combination of factors that make it an attractive option for new residents. Cultural and Lifestyle Appeal Melbourne is often referred to as Australia’s cultural capital festooned with theatres, music venues, and art galleries, plus close access to the Great Ocean Road.  Festivals and events, such as the Melbourne International Film Festival and the Melbourne Food and Wine Festival, draw visitors and locals alike. For sports enthusiasts, Melbourne is home to major sporting events, including the Australian Open, the Melbourne Cup, and the AFL Grand Final. The city’s café culture is another drawcard, with its laneways and streets lined with cafes offering some of the best coffee in the world. Melbourne’s diverse population has also contributed to its rich culinary scene, with a wide variety of restaurants offering cuisines from around the globe. Strong Job Market Melbourne’s economy is diverse and robust, offering opportunities across various industries. The city is a hub for finance, technology, education, and healthcare, making it an ideal destination for professionals in these fields. The rise of tech companies in Melbourne has also created a burgeoning startup ecosystem, attracting talent from across Australia and beyond. For those considering moving to Melbourne, the city’s job market is a significant advantage. Whether you’re seeking a new career opportunity or looking to advance in your current field, Melbourne provides ample opportunities for professional growth. Excellent Education and Healthcare Melbourne is home to some of Australia’s revered universities, including RMIT, University of Melbourne, and Monash University. The city’s education system is well-regarded, offering high-quality education from primary school through to tertiary levels. For families moving to Melbourne, the availability of excellent schools and educational institutions is a key consideration. The city’s healthcare system is top-notch, with world-class hospitals and medical facilities. The city is a leader in medical research and healthcare innovation, ensuring residents have access to the best possible care. Housing Market Dynamics The housing market in Melbourne has experienced fluctuations in recent years, but it remains one of the most desirable locations for property investment opportunities in Australia. For those moving to Melbourne, the city offers a range of housing options, from inner-city apartments to suburban homes. While property prices in Melbourne can be high, the city’s diverse neighbourhoods provide options for various budgets. CANSTAR reported in May 2024 that suburbs like Frankston, Ascot Vale, and Brunswick East have become increasingly popular among new residents, offering a balance of affordability and proximity to the city centre. The ongoing developments in Melbourne’s outer suburbs also provide opportunities for those seeking more space and a quieter lifestyle. The Muval Relocation Survey A survey by national removals booking provider Muval provides valuable insights into why people are choosing to move to Melbourne, particularly from cities like Sydney and Brisbane. An analysis of Muval’s bookings for the first half of 2024 revealed that 30 per cent of all capital moves during February and April 2024 were directed to Melbourne. The most recent period of such high activity was recorded in September 2023 at 28 per cent. On the other hand, a 25 per cent tally of capital outbound moves for February was recorded as coming from Melbourne. When accounted for net migration, the city posted 13 per cent positive migration in February and two per cent in April. Evaluators hailed the data as a stunning rebound for the city, whose last positive net migration was three per cent in January 2020. The grip of the COVID-19 lockdowns later brought serious negative results at -61 per cent in August 2020 and -64 per cent in September 2021, with Sydney and Brisbane actually benefiting from the exodus of Melburnians. However, cost-of-living issues have gradually made living in Sydney and Brisbane more or less untenable in those six months. Muval’s data for Brisbane recorded an average 22 per cent inbound metro moves and outbound metro bookings reached 23 per cent in April, with net migration reaching record lows that month at -13 per cent. Down south in Sydney, Muval’s H1 2024 inbound metro moves included 19 per cent overall in January and June, but accounting for 30 per cent overall during the period – the net migration teetered between -41 and -52 per cent. Looking back at the data, Muval co-founder/CEO James Morrell said it may be easier to acquire a new house in Melbourne than in other capitals because of a less severe housing shortage. AMP chief economist Shane Oliver postulated in July 2024 that an upcoming round of lower interest rates can put Melbourne at a commanding lead nationwide in terms of affordable property and larger rental yield. Tips for a Smooth Move to Melbourne If you’re considering resettling in Melbourne, the following are some tips to ensure a smooth transition. Research Neighbourhoods Take the time to explore different suburbs in Melbourne to find the one that best suits your lifestyle and budget; access to basic services, schools and your potential workplace must be factored as well. Plan Your Move Engage with professional movers who are familiar with interstate relocations. Companies listed on platforms like Muval can offer competitive quotes and ensure your belongings are safely transported. Budget for Housing Be prepared for the cost of living in Melbourne, especially in terms of housing. If buying, explore different financing options and consider seeking advice from a property expert. Embrace the Lifestyle Melbourne is known for its cultural diversity and vibrant lifestyle. Take advantage of the city’s offerings, from its café culture to its arts and sporting events. Conclusion Moving to

Tax cuts can have a significant impact on the economy and the financial well-being of individuals. For a country like Australia, cutting tax rates can provide numerous benefits, from stimulating economic growth to increasing disposable income for households. The Stage III Cuts The federal government announced earlier this year a new round of tax cuts aimed at providing financial relief to individuals and businesses. Going effective on 1 July 2024, the so-called Stage III measures are designed to support economic recovery in the wake of global economic challenges and to ensure that Australians can enjoy greater financial security.  The measures are defined under the Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024 and the Treasury Laws Amendment (Cost of Living – Medicare Levy) Act 2024. Both bills were approved on 5 March 2024. Federal Treasurer Jim Chalmers expressed optimism of the tax cuts being able to help the general public’s coffers in ways unthinkable under the previous administration. New tax brackets The above Acts laid down a new set of tax brackets to cover all 13.6 million taxpayers in Australia. Under the measures, the current 19 per cent tax rate is trimmed to 16 per cent while the current 32.5 per cent tax rate is shaved down to 30 per cent.  Increased Tax-Free Threshold The tax-free threshold has been raised, allowing low-income earners to retain more of their income and reducing the tax burden on the most vulnerable. People earning up to $18,200 a year are still tax-exempt under the new matrix, the above-mentioned 16 per cent rate applies to taxpayers earning $18,001 to $45k a year and 30 per cent is for taxpayers earning between $45,001 to $135,000. For thresholds above where the 37 per cent tax rate applies, the $120,000 limit is going up to $135,000. When it comes to the threshold above which a 45 per cent rate is applicable, it is now at $190,000 up from $180,000. The changes in tax rates will also affect the senior Australian and pensioner tax offset (SAPTO) thresholds. Single people can stand to have a $2,230 offset but their shade-out threshold is at $34,919 and the cutout at $52,759. The partners in a legal union can each have a $1,602 offset, $30,994 shade-out, and $43,810 cut-out. However, partners in a legal union but are separated by illness can have an offset of as much as $2,040, with the shade-out at $33,732 and the cutout at $50,052.  The projected savings will be reflected for FY25. For example, if a certain professional earns $90k a year, the Stage III cuts will enable them to save as much as $1,929. Medicare Levy The Treasury Laws Amendment (Cost of Living – Medicare Levy) Act 2024 has its own set of perks. The current two per cent levy will not apply to people earning under $26,000 a year, but it will fully apply on incomes above $32,500; incomes coming in between will have partial levies. Make the Most of Tax Cuts Tax cuts offer a valuable opportunity to improve your financial situation. Here are some tips to help you take full advantage of the latest tax relief measures: Review Your Budget With extra disposable income from tax cuts, it’s a good time to review and adjust your budget. Identify areas where you can allocate the additional funds to enhance your financial stability, such as paying off debt or increasing savings. Increase Your Savings Consider putting a portion of your tax savings into a high-interest savings account or an investment account. Building a robust savings fund can provide financial security and help you achieve long-term goals. Invest in Education Use the additional funds to invest in your education or professional development. Taking courses or obtaining certifications can improve your skills and increase your earning potential. Pay Down Debt If you have high-interest debt, such as credit card balances or personal loans, use your tax savings to pay down these liabilities. Reducing debt can improve your financial health and free up more money for future needs. Upgrade Your Home Consider using tax relief to make home improvements or energy-efficient upgrades. These investments can enhance your living environment and potentially increase the value of your property. Boost Retirement Savings Increase contributions to your superannuation fund. Additional contributions can grow over time, providing a more comfortable retirement. Support Local Businesses Spend some of your tax savings at local businesses. This not only supports the economy but also helps sustain the community and create local jobs. Explore Investment Opportunities With extra funds, consider exploring various investment opportunities such as stocks, bonds, or real estate. They can help you earn passive income in due time, but may require monitoring Donate to Charity Use a portion of your tax savings to support charitable organisations. Not only does this help those in need, but donations can also be tax-deductible, providing additional financial benefits. Plan for Major Expenses If you have upcoming major expenses, such as a wedding, a new car, or a family vacation, use your tax savings to plan and budget for these events. This can reduce financial stress and ensure you enjoy these milestones without incurring debt. The Bottom Line Tax cuts can be a blessing, providing significant benefits to both individuals and the broader economy. The Stage III tax cuts in Australia aim to stimulate economic growth, boost disposable income, and encourage investment. By taking proactive steps to make the most of tax relief, Australians can enhance their financial security and contribute to a more robust and resilient economy. Whether it’s increasing savings, investing in education, or supporting local businesses, the opportunities provided by tax cuts can lead to greater financial wellness and a brighter future. DISCLAIMER: This article is for informational purposes only and does not reflect official tax advice. 2 Ezi is not affiliated with the Federal Government and its associated agencies or employees. Please consult your tax agent and financial advisor.

As Queensland continues to lead the charge towards a more sustainable future, the introduction of rebates for electric vehicles (EVs), specifically e-scooters and e-bikes, marks a significant step forward. With a growing focus on reducing carbon emissions and promoting eco-friendly transportation, the Queensland Government has recognised the need to incentivise greener commuting options. Queensland Offers E-Scooters and E-Bike Rebates On 23 September 2024, the Queensland Government introduced a rebate scheme for e-scooters and e-bikes as part of the state’s Zero Emission Vehicle Strategy 2022-2032. The E-Mobility Rebate Scheme will have $1m in funding. The Department of Transport and Main Roads has tasked the Queensland Rural and Industry Development Authority (QRIDA) to oversee the Scheme’s implementation. Eligibility The Scheme is open exclusively to Queensland residents at least 18 years old and up to three people per household. To qualify for the rebate, they must have bought their e-scooter or e-bike as a brand-new unit from a Queensland store or online seller in Australia on/after 23 September 2024. The unit must be bought only for personal use; applicants using the unit for business purposes such as sole traders or companies are excluded. At the same time, applicants who may have affiliations with QRIDA must declare it to properly address conflict of interest. For hardware requirements, the Scheme generally mandates eligible units to have a maximum speed of 25 kph under motor power, have a battery management system, and be sold with regulator-approved charger units that are also listed on the Electrical Equipment Safety System database. The Scheme also has more stringent parameters for both categories. E-Scooter Approved e-scooters will include handlebar-controlled two-wheeler or tricycle units with motors that deactivate when the vehicle goes above 25 kph. They must have footboards at the wheels. For dimensions, the unit must have a dry mass of 60 kilos, and measure up to 1,250 millimetres long, 1,350mm high, and 700mm wide. The unit should also be certified roadworthy under Queensland Road Rules Sec 15A.  E-Bikes E-bikes per the Scheme are broken down into electrically-assisted bicycles or electrically power-assisted cycles (EPAC). For electrically-assisted bicycles, an eligible unit should only have one electric motor with up to 200 watts’ power output; if there’s at least one motor, their combined output is not more than 200W. The unit’s maximum speed on motors only must not exceed six kph and no more than 25 kph on combined pedal motor power – the motor should stop if the speed is above 25 kph. Eligible EPACs should have max continuous power not exceeding 250W. Like the electric-assisted bike, the EPAC must cut the motor on no-pedalling speeds over six kph and combined runs over 25 kph. Rebate Amounts The Scheme mandates the rebate available at $200 for each eligible e-scooter and $500 for each eligible e-bike as stated above, which will also include those with cargo capability. However, if the device’s purchase price was under $500 including GST, the applicant will be reimbursed the total cost. Each applicant under the Scheme can only be accorded the rebate once and the QRIDA will have secure identification protocols in place to identify potential fraud. Why Offer Rebates for E-Scooters and E-Bikes? The shift towards greener transportation options is essential in combating climate change. Cars powered by petrol and diesel are major contributors to greenhouse gas emissions. In promoting the use of e-scooters and e-bikes, Queensland aims to reduce emissions and ease traffic congestion in urban areas. There are several key reasons why offering rebates for these electric vehicles makes sense: Reducing Carbon Footprint E-scooters and e-bikes produce zero emissions, making them ideal for short commutes. They help reduce the overall carbon footprint of daily transportation, contributing to cleaner air and a healthier environment. With Queensland’s commitment to achieving net-zero emissions by 2050, promoting electric vehicles aligns with the state’s broader environmental goals. Encouraging Sustainable Transportation Offering rebates for e-scooters and e-bikes encourages commuters to consider switching from cars to more sustainable options. By making these vehicles more affordable, the Queensland Government is actively supporting the transition to green, electric-powered transport, which is particularly beneficial for inner-city travel. Improving Public Health Active transport options, like e-bikes, promote physical activity, improving public health outcomes. Commuters who choose e-bikes over cars for short trips are not only reducing their environmental impact but also increasing their physical activity, which can lead to better health and well-being, especially under current state safety rules. It is also a balancing act, however, as the presence of e-scooters and bikes on the streets have also generated injuries treated in Queensland’s emergency services, with 1,273 cases logged in 2023.   Reducing Traffic Congestion E-scooters and e-bikes take up far less road space than cars, making them a practical solution for reducing traffic congestion in busy urban centres. By offering rebates, the Queensland Government hopes to make these compact vehicles more appealing to city dwellers. Supporting the Green Economy The rebate scheme is not just about encouraging individuals to make greener transport choices — it is also about supporting Queensland’s growing green economy. E-scooters and e-bikes are becoming an integral part of Queensland’s sustainable infrastructure, and the rebates are expected to create further demand for eco-friendly products and services. The rise of electric vehicles, including e-scooters and e-bikes, is expected to boost local businesses involved in the sales, maintenance, and infrastructure of these vehicles. This, in turn, contributes to job creation in Queensland’s green economy, aligning with the state’s long-term economic and environmental strategies. Speaking at the Scheme’s unveiling on 21 September 2024, QLD Transport Minister Bart Mellish said Queensland’s warm climate and the public’s interest to ride longer without worrying about fuel costs is a nudge to acquire e-scooters or e-bikes. The Scheme also comes as the state government closed applications for an EV rebate scheme dating back two years offering rebates of up to $6,000 for new purchases, and the Brisbane City Council voiding a scooter rental contract it had with Beam over fraud charges. The Bottom Line The rebates offered by the

Amid rising losses from online scams, Australian banks may soon be required to compensate customers tricked into transferring money to scammers. Australians lost over $2.7 billion to scams last year, with few refunds issued. Assistant Treasurer Stephen Jones has proposed new codes of conduct for banks, telcos, and social media platforms, enforcing stricter obligations to prevent and detect scams. Failure to comply could result in penalties and liability for victim reimbursement. This initiative aligns Australia with global efforts to protect consumers and hold institutions accountable. Online Scams in Australia Online scams in Australia have surged in recent years, with scammers employing sophisticated techniques to deceive and exploit unsuspecting victims. These scams range from phishing emails and fraudulent websites to complex schemes involving cryptocurrency and online marketplaces. The ACCC’s Targeting Scams report for 2023 registered losses due to scams at $2.74 billion, with over 601,000 complaints filed to the National AntiScam Centre. While the above amount is a 13.1 per cent drop from 2022, ACCC Deputy Chair Catriona Lowe admits there’s still much work to do in terms of pooling together efforts to cut scam losses. The impact of these scams is not only financial but also emotional, as victims often experience significant distress and loss of trust in digital platforms. Federal Coordination Given the scale and complexity of cybercrime, addressing online scams requires coordinated efforts at the federal level. Localised or piecemeal approaches are insufficient to tackle the sophisticated nature of modern cyber threats. The federal government plays a crucial role in setting policies, allocating resources, and fostering collaboration between various stakeholders, including law enforcement agencies, private sector companies, and international partners. By adopting a comprehensive and unified strategy, the government can enhance its ability to detect, prevent, and respond to online scams effectively. Finance Minister Urges Banks and Telcos to Step Up Finance Minister Stephen Jones went to the National Press Club of Australia to tackle the current administration’s drive to combat online scams as part of further cybersecurity pushes, under an address entitled “Fighting Scammers, Fighting for Australians.” The minister said the federal government was considering setting up codes of conduct for banks, telcos, and social media platforms, and they must be enacted before the next election. The object is to put them more to task for detecting and stopping scam activities before they do the most damage on consumers, while at the same time, pushing them to provide compensation for consumers who were hit in a scam. Failure to do so will cop them considerable fines from the government. The above Targeting Scams report tagged a 17 per cent increase in scams run over social media. Jones, noted for example, how a certain Facebook page charged attendance fees to last year’s funeral of Labor MP Peta Murphy. A link posted on the page of a funeral home hosting Murphy’s wake redirected to a page that required credit-card payments to “access” the live stream. Jones claimed social media platforms were already earning much money from advertising for scam operations.  The banking industry element of the codes of conduct are aimed at increasing their power to shut down “mule” accounts that carry wired money for scamming operations. Telcos, Jones said, need to be held accountable even more as scammers used their networks to send erroneous text messages containing potentially malicious links. Minister Jones’ outlining of further policy attracted a mixed response. David Braga, assistant Australia country director of the International Justice Mission, said that while the move was in the right direction, Australia can do further by collaborating with other countries to stamp out human trafficking operations that perform much of the scam work. He noted that some of the text messages received by Aussies actually come from scam centres in Southeast Asia, where the employees are actually kidnap victims forced to work. A UN Office on Drugs and Crime report from 2023 estimated that the cyberscam sector in Cambodia alone is worth $18 billion. Consumer Action Law Centre CEO Stephanie Tonkin lauded the government action, but said it must be at par with anti-scamming efforts in the UK, which are slated to go active in October 2024. The UK government digital reforms, for example, will prompt banks to reimburse customers who can prove they were tricked into sending money to a scammer – but also hold scammed customers accountable for gross negligence, like ignoring their bank’s warnings on suspicious transactions. The object is to also incentivise the banks to further improve their scam countermeasures. Conclusion The federal government’s proposal for stringent codes of conduct represents a significant step forward in Australia’s fight against online scams and cybercrime. Through mandating stringent action from stakeholders such as banks and social media platforms, the government is taking decisive action to protect citizens and businesses from digital threats. However, the success of these initiatives depends on the active participation and collaboration of all stakeholders, including the private sector and international partners. DISCLAIMER: This article is for informational purposes only and contains information based on the most accurate data available at the time of writing. 2 Ezi has no business relationships with any major tech company, bank or government office, and will not be a party to development of any industry code of conduct.

With extreme weather on the rise, Australians must invest in home maintenance and insurance to safeguard against potential damage. As wild weather patterns become more frequent and unpredictable, Australian homeowners are being urged to take steps to better protect their homes. From destructive hailstorms to flash floods, extreme weather events pose a serious threat to homes across the country. Yet, a recent NRMA survey has revealed a concerning trend – many Australians are underprepared for such events, and are failing to invest in the necessary home maintenance and insurance coverage. This blog will explore the growing importance of preparing your home for unusual weather patterns in Australia, including the financial benefits of home maintenance insurance and why ignoring this issue can lead to significant and costly damage. The Growing Threat of Extreme Weather Australia is no stranger to unpredictable weather, and in recent years, climate change has exacerbated the frequency and intensity of extreme weather events. From devastating hailstorms that can strip a house of its exterior in minutes to torrential rain causing severe water damage, Australian homeowners are increasingly at risk of significant damage to their properties. Severe storms and flash flooding have affected vast regions across Australia, leaving many households with unexpected repair bills. Hailstorms, in particular, have become more frequent, causing considerable damage to roofs, windows, and vehicles. One only needs to remember the 1999 and 2018 hailstorms in Sydney, and the March 2010 hailstorm in Melbourne to see the danger. Some hailstones have been shown to be bigger than cricket balls.   Water damage at home due to poor drainage or blocked gutters often goes unnoticed until the damage is irreversible. It is in these moments that the importance of adequate home insurance and regular maintenance becomes glaringly clear. Australians Underprepared for Wild Weather Despite the obvious risks, a survey conducted by NRMA Insurance revealed that a large portion of Australians are underprepared for the impact of wild weather. In the latest spring 2024 forecast, the NRMA found that 67 per cent of Australians have shown meagre or no interest to shore up their homes for extreme weather events. Fifty-nine per cent admit they have not had a roofing inspection in the past year and 11 per cent never came up the roof at all.  NRMA meteorologist Zac Segger said checking the property for hail damage will be paramount this spring as warmer-than-normal sea surface temperatures can trigger a higher amount of rainfall on the east coast. The same is also expected for all of Tasmania and the southeast SA frontier with Victoria. Meanwhile, much warmer ocean temperatures can result in northern Australia and Tasmania having warmer days and nights this spring.  A look at the NRMA spring 2023 tally of wild-weather claims also bears much reflection. Amongst the +5,700 claims filed that year, a considerable bulk of them reported water damage.   The lack of urgency can be attributed to various factors, including complacency due to years of stable weather or a reluctance to spend on preventative measures. However, as weather patterns become increasingly erratic, this mindset needs to shift. The Importance of Home Maintenance  Investing in regular home maintenance is the first line of defence against the unpredictable nature of Australian weather. Simple tasks like cleaning out gutters, repairing worn roofing, and ensuring proper drainage around the property can go a long way in preventing expensive repairs after a major storm. Ensuring your home is weatherproof not only protects your property but can also reduce the likelihood of your insurance premiums rising after claims for damage. Here are a few key maintenance tips to help safeguard your home against extreme weather: Roof Maintenance Regularly inspect and repair any loose tiles or damaged shingles. Hailstorms can cause severe roof damage, leading to leaks and water damage inside the home. Gutters and Downpipes Blocked gutters can cause water to overflow, potentially damaging walls, foundations, and basements. In addition, roof gutters stand to get loose from the weight of any debris buildup, leaving water to enter the eaves. The NRMA study covered nearly half of Australians stating that their gutters have overflowed during rains and 19 per cent admit they never cleaned out the gutters at all. A simple solution would be to climb up to gutter level on a clear day and take the time to strip out all debris. A general contractor may be needed to inspect and fix the gutter’s attachment to the roof. You can also invest in installing gutter guards, mesh screens that cover the roof gutter from debris buildup and send them over to the ground. Windows and Doors Ensure all windows and doors are well-sealed to prevent water ingress during storms. Invest in storm shutters or reinforced windows if you live in a hail-prone area. Yard Maintenance Trim overhanging trees and branches to prevent them from falling on the house during a storm. Outdoor furniture and other loose items should be anchored to the ground to prevent them from becoming dangerous projectiles. By staying on top of these simple tasks, you can significantly reduce the risk of damage and the need for costly repairs following a storm. Investing in Home Maintenance Insurance While home maintenance plays a vital role in protecting your home, it’s equally important to ensure that your insurance policy provides adequate coverage for extreme weather events. Not all home insurance policies are created equal, and some may not cover certain types of weather-related damage. For example, a standard policy might not fully cover hail damage repairs or water damage at home caused by inadequate maintenance. When reviewing your home insurance policy, it’s essential to consider the specific weather risks in your area. If you live in a region prone to hailstorms, flooding, or severe storms, look for a policy that provides comprehensive coverage for these events. It’s worth investing in a more robust insurance policy to avoid being left out of pocket when disaster strikes. Investing in both home maintenance and comprehensive insurance coverage is a smart financial decision.

Struggle meals are becoming common as Australians face rising living costs. Learn how to manage a tight food budget without compromising on health. In a time of growing living costs, managing a tight food budget has become a common pain for many Australians. The term “struggle meals” has surfaced, referring to low-cost, often nutritionally lacking food options that individuals or families turn to when finances are stretched.  While these meals may keep hunger at bay, they can come at a significant cost to health. This article explores the dangers of relying on struggle meals, why so many Aussies are turning to them, and provides practical tips to maintain a balanced diet while managing food budgets in Australia. What Are Struggle Meals? “Struggle meals” are inexpensive meals that often rely on highly processed or instant foods. While they can be quick and easy to prepare, they typically lack essential nutrients needed for good health. Food such as instant noodles, frozen pizzas, or budget frozen dinners might satisfy hunger, but they are often high in sodium, unhealthy fats, and lack the vitamins and minerals our bodies need. For Australians facing financial hardships, struggle meals may seem like a necessary compromise. Rising costs of groceries, rent, and utilities have forced many to make tough decisions about where to cut corners, and food is often the first to suffer. Why Are Struggle Meals Common in Australia? The Consumer Sentiment Tracker of comparison site Finder for July/August 2024 revealed a disturbing pivot towards struggle meals to get by, collating responses from 1,049 people. The data revealed that 46 per cent of the respondents – equal to 9.5 million people – had problems with pooling enough grocery money to last the whole week. Twenty per cent said that because of limited budgets, they only made do with fewer groceries while another 14 per cent applied some creativity with their meals.  On the budget aspect for August 2024, Finder evaluators found that the average Aussie household’s grocery expenses topped $190 per week, but that number rose to $251 if the household had at least one child under 18 years old.  It’s the food choices that become a problem – and Finder found that 62 per cent of Australians had common go-to food options when needing a struggle meal. When polled by the types of food people had to buy as a struggle meal, instant noodles and leftovers were the most prominent options tying at 17 per cent, with toast (12 per cent), and breakfast cereal (five per cent) completing the podium. Plain noodles and rice were at four per cent each. This trend reflects a growing number of Australians who are being forced to sacrifice health for affordability, leading to long-term consequences such as malnutrition and diet-related illnesses. Commenting on the survey results, Finder money expert Rebecca Pike said the challenges of families being able to eat well under a tight budget were becoming deceptively close to that of university students with their allowances dangerously low. In some cases, a family might be forced to switch supermarkets that offer more affordable prices for their shopping list. Managing Food Budgets During a Cost-of-Living Crisis Managing food costs while maintaining a healthy diet can be challenging, but not impossible. With some planning and smart choices, it’s possible to stretch a limited budget without compromising on nutrition. Below are some practical tips for managing a food budget effectively: Plan Your Meals Meal planning is one of the most effective ways to stick to a food budget. By planning out meals for the week, you can avoid impulse purchases and ensure you are using ingredients efficiently. Sticking to a grocery list based on your meal plan can help you stay on track. Buy In-Season Produce Fresh fruit and vegetables are light on the budget if they are sold in-season, as it is usually cheaper and fresher. Frozen fruits and vegetables can also be a more affordable option and are just as nutritious as fresh produce. Pike said the meal planning must account for what produce are at hand. Cook in Bulk Cooking larger portions and freezing leftovers is a great way to save both time and money. Bulk cooking allows you to buy ingredients in larger quantities, which is often more cost-effective. Dishes like soups, stews, and casseroles are perfect for bulk cooking and can be reheated for quick meals throughout the week. However, to prevent spoilage, any reheated food must be consumed immediately. Use Budget-Friendly Proteins Protein is a vital element of a meal but the sources can be expensive, especially choice cuts of meat. Consider using cheaper protein sources such as beans, lentils, and eggs. These alternatives are not only affordable but also packed with nutrients. Canned tuna, chickpeas, and tofu are other excellent low-cost options. Reduce Food Waste Australians waste over 7.6 million tonnes of food each year, according to government reports. Reducing food waste can significantly help manage your food budget. Be mindful of portion sizes and use up leftovers creatively to minimise waste. Embrace Finance Apps Finance apps in Australia, like 2 Ezi, allow you to monitor your expenses and set budget limits for different categories, including groceries. These tools provide visibility into your spending habits and help you identify areas where you can cut back without sacrificing the essentials. The Health Impact of Struggle Meals While struggle meals can seem like a temporary solution to financial stress, the long-term impact on health cannot be ignored. Many struggle meals are highly processed and contain excessive amounts of salt, sugar, and unhealthy fats.  According to the Australian Dietary Guidelines, a balanced diet should include a variety of vegetables, fruits, whole grains, lean proteins, and healthy fats to support optimal health. Frequent consumption of struggle meals can lead to nutritional deficiencies, particularly in vitamins A, C, D, calcium, and iron. These deficiencies increase the risk of developing chronic diseases such as heart disease, diabetes, and obesity. The high sodium content in instant meals, for example, has been linked

Couples deep into each other might overlook money issues. In fact, financial issues are one of the leading causes of relationship breakdowns in Australia. A 2023 survey by Aussie financial advisor Jessica Brady revealed that 36 per cent of Australians believe that money is the most common cause of relationship conflict. Despite this, many couples avoid talking about their finances altogether. They may feel uncomfortable discussing money or they may fear that it will lead to arguments or even a breakup. However, avoiding the issue can lead to even more problems down the line. In this blog post, we’ll explore why it’s important for couples to talk about their finances and spending habits, and provide tips for how to have an honest and productive conversation about money. Why Is It Important to Talk about Money in a Relationship? There are many reasons why it’s important for couples to talk about their finances and spending habits. Some of the key benefits include: Tips for Having an Honest Conversation about Money If you’re ready to have an honest conversation about money with your partner, here are some tips to help you get started: Financial Stress Impacting Australian Couples Let’s take a look at some statistics on couples and finance in Australia to understand the scope of the issue: According to a survey conducted by Relationships Australia, finances were a common source of stress in relationships, with 20 per cent of respondents reporting that financial issues affected their relationship. A 2019 report from Westpac Bank even found that at least 36 per cent of Aussies in committed relationships are not financially stable. To add more salt to the wound, 65 per cent of respondent  couples considering breaking up were hesitating to make the decision because of the feeling they will have to start over after letting go. On the bright side though, the bank noted that 85 per cent of couples were identified as financially compatible when they were able to talk better about the state of their finances.  A 2022 study by the Australian Securities and Investments Commission (ASIC) and Beyond Blue found that almost five per cent of Australian adults felt financial stress affected their mental health and wellbeing. Some of those respondents admitted they could not sleep at night thinking of the big debts they have to settle. Finder data from the end of FY23 noted that each Australian, on average, has outstanding debts of at least $20,238 – which may be worse if either partner in a committed relationship has some heavy spending habits.   These statistics highlight the need for couples to have open and honest conversations about their finances. When couples avoid talking about money, they may not realise the extent of their financial issues and may struggle to find a solution. Conclusion By talking openly about their finances and creating a budget together, couples can work together to reduce their financial stress and create a more stable and secure future. Seeking the help of a financial planner or relationship counsellor can also be beneficial for couples who need extra support in managing their finances. DISCLAIMER:  This article is for informational purposes only and is not meant to replace or supersede official financial advice. All data is based on the most recent materials available as of presstime. 2 Ezi is not associated with any organisation mentioned. Please consult a financial advisor.

Some Australian suburbs have bucked the trend of skyrocketing house prices. A survey shows certain areas stagnating, offering unique opportunities for homebuyers. The Australian property market has long been a topic of national obsession, with house prices in many areas skyrocketing over the years. However, not all suburbs have followed this trend. In fact, a recent survey by PropTrack has revealed that some suburbs across Australia’s major capitals have seen house prices stagnate or even decrease over the past decade. For prospective homebuyers, especially those looking to invest in their first home, these suburbs represent unique opportunities—bargain properties that offer the chance to own a home at prices reminiscent of 2014. In this blog, we’ll explore the implications of these findings, discuss why some suburbs have remained stagnant in terms of property value, and outline the benefits of buying in these areas now. We’ll also touch on strategies for saving for a house deposit over ten years, and why timing your entry into the property market can make all the difference. The PropTrack Survey: Suburbs Defy Australia’s Property Boom PropTrack’s recent survey has uncovered a surprising trend. While most of Australia’s property market has surged in value, a handful of suburbs in major capital cities have seen little to no change in property prices over the last decade. These areas have remained largely immune to the rapid price increases seen in other parts of the country, making them an intriguing option for potential homebuyers. Some of these suburbs, located in cities like Sydney, Melbourne, and Brisbane, are seeing house prices that are either on par with or even lower than what they were in 2014. For those who have been saving diligently for a home deposit, these suburbs represent a rare opportunity to buy a property at a price point that seems almost frozen in time. Sydney The city that often comes to mind whenever people speak about Australia does have a high standard of living. What if you discover some suburbs’ property values have remained firm in ten years, despite the 2014 median price for a house shooting up from $712,750 to $1.42m now? The evaluators analysed listings in the city and found stable or declining prices in at least three areas. In Parramatta, there’s much sales activity in the Olympic Park, where a property that averaged $700k ten years ago now sells for close to $685k, and some Rosehill places lost value by $10k over the past decade. If you’re eyeing the northwest, how about Box Hill? Over the past decade, property values there went down by close to $1m because changes to the large land stock enabled more houses to be built on a single tract.      Melbourne Down in Melbourne, the PropTrack team identified Caulfield East, Werribee South, and Essendon North as those with the largest ten-year price declines for apartments, as many of them were 40 per cent cheaper – in hard currency, they are estimated at $220k less. If you are looking to buy a unit in Docklands and South Yarra, observers noted that prices there have not changed much in ten years. The news comes as the Melbourne city government revealed plans to build as many as 140,000 new houses in the inner city areas. Brisbane If you are considering settling in the Greater Brisbane area, a look at the PropTrack data may point to underperforming suburbs that are now generating competition for investors and first-time owners. For example, if you were eyeing an apartment in Dutton Park, Bowen Hills, and Kelvin Grove but missed out ten years ago, look again – the listings have reduced prices by as much as $39,000. Despite a price boom generated by the pandemic, some properties did not see a major increase over ten years but still changed hands. The evaluation team stated that a typical flat in Brisbane City may be offered for sale at $590k – when it was just $520k a decade ago. If that place is for rent, landlords may be setting the median weekly rent at $700.   One local property agent hinted that because of cost-of-living issues, some Brisbane buyers were content with getting an entry-level flat. Some price declines were also reported at 12 Townsville suburbs, and a certain suburb in Ipswich. Why Some Suburbs Have Stayed the Same Understanding why certain suburbs have seen stagnant or declining house prices requires a closer look at the factors that influence property values. The following are several reasons why a suburb might experience little to no growth in property prices over a decade. Economic Factors Suburbs that have struggled with economic downturns, lack of employment opportunities, or a decline in local industries are less likely to see a significant increase in property values. If a suburb’s economy has been stagnant or in decline, the demand for housing may also drop, leading to stable or falling prices. Infrastructure and Amenities The lack of new infrastructure projects or amenities can impact a suburb’s appeal. Areas that haven’t seen improvements in public transport, roads, schools, or shopping facilities may not attract new residents, leading to stable property prices. Population Trends Some suburbs may have seen a decline in population or slower population growth compared to other areas. Without an influx of new residents, demand for housing can remain flat, contributing to stagnant prices. Reputation and Perception Perceptions of a suburb can significantly impact property values. If a suburb has developed a negative reputation over the years—whether due to crime rates, environmental issues, or other factors—its property prices may remain stagnant. The Benefits of Buying in Stagnant Suburbs For those looking to buy their first home or invest in property, suburbs with stagnant house prices offer several potential advantages. Affordability The most obvious benefit is affordability. With prices remaining at or near 2014 levels, these suburbs provide an entry point into the property market that would be unattainable in other, more rapidly appreciating areas. Potential for Future Growth While these suburbs have seen little growth over the past

Home insurance affordability stress is on the rise as living costs soar. Reports show a big hike in rates, causing homeowners to struggle. As the cost of living continues to rise, Australians are feeling the pinch in various aspects of their lives, and home insurance is no exception. Recent reports, including one from the Actuaries Institute in 2024, have highlighted a significant increase in insurance rates, leaving many homeowners grappling with what is now termed “home insurance affordability stress.” In this blog, let’s look deeper into its definition, reasons behind the rising costs, and offer some practical strategies to help ease the burden of paying higher property insurance rates. What is Home Insurance Affordability Stress? Home insurance affordability stress occurs when the cost of insuring one’s home becomes a significant financial strain on a household. This situation can force homeowners to choose between maintaining adequate insurance coverage and meeting other essential expenses, such as mortgage payments, utilities, and groceries. The Actuaries Institute’s Home Insurance Affordability and Home Loans at Risk Report brought attention to the growing concern of affordability stress in Australia. The report highlights that rising insurance premiums are outpacing wage growth, making it increasingly difficult for many households to afford comprehensive coverage. It categorised home insurance affordability stress in terms of pressure on how many week’s gross household income is needed to pay off home buildings and contents premiums, ranging from No Pressure to Extreme Pressure, as determined by the Australian Actuaries Home Insurance Affordability Index (AAHIA). For instance, the percentage of households across the country that reported Extreme pressure was 15 per cent up from 12 per cent last year, or 1.6 million households, paying an average premium of $4,613. The number of weeks’ of gross income they need for paying varied from four weeks to 9.2 weeks. On the far end, the number of No Pressure households – paying $2,182 average premium – was judged at 4.3m down from 5.1m last year – in terms of percentages, that’s down from 49 per cent to 41 per cent. The AAHIA tags No Pressure households normally taking over a week’s gross income to pay the premium. This issue is particularly pronounced in regions prone to natural disasters, where the risk of damage is higher and, consequently, so are the insurance premiums. Increased Insurance Rates Several factors contribute to the rising cost of home insurance in Australia. Climate Change and Natural Disasters Australia’s susceptibility to natural disasters such as bushfires, floods, and cyclones has been exacerbated by climate change. These events have become more frequent and severe, leading to higher claims for insurers. As a result, insurers are adjusting premiums to reflect the increased risk. Rebuilding Costs The cost of rebuilding homes after damage has surged due to inflation in the construction industry, driven by higher labour costs, supply chain disruptions, and increased prices for materials. Insurers factor these costs into their premiums to ensure they can cover potential claims. Regulatory Changes Changes in government policies and regulations, such as building codes and safety standards, can also impact insurance costs. Stricter requirements mean higher rebuilding costs, which are passed on to homeowners through increased premiums. Insurance Market Dynamics The insurance industry itself is subject to market dynamics, including competition, profitability, and investment returns. In periods of economic uncertainty or low returns on investments, insurers may increase premiums to maintain profitability. Regions Most Affected by Home Insurance Affordability Stress The Actuaries Institute report identified certain regions in Australia are experiencing higher levels of home insurance affordability stress due to their vulnerability to natural disasters and rising insurance costs. A mapping analysis of local government areas (LGA) had massive splotches of Extreme Pressure on the AAHIA scale, except Victoria. For WA, Extreme LGAs include the entire Pilbara, Gascoyne (except Upper Gascoyne), and Northern Country. The other such areas around the country include NT’s MacDonnell, Victoria-Daly and the Roper Gulf, SA’s northwest region, four shires in southwest QLD (Burroo, Barcoo, Paloo, and Murweh) and the Gulf of Carpentaria coast in QLD’s Far North. However, when crosschecked against annual gross household income, some of those Extreme areas have incomes over $100k, such as the Pilbara, and QLD’s Burroo and Barcoo Shires. Northern Queensland Known for its high cyclone risk, Northern Queensland has some of the highest insurance premiums in the country. Homeowners in this region are particularly affected by affordability stress, as premiums have risen sharply in response to recent severe weather events. When checked through AAHIA, most of the QLD coastline is tagged for High Pressure – the only No Pressure LGA is Isaac Regional. Western Sydney While not traditionally associated with natural disasters, parts of Western Sydney are experiencing affordability stress due to increasing flood risks. Urban development in flood-prone areas has led to higher insurance premiums, placing pressure on households in this region. AAHIA analysis for the entire sector graded their LGAs at No or Low Pressure and their annual gross household incomes at over $100k, meaning they can somehow cope with paying higher premiums. Coastal Areas Coastal regions across Australia are also feeling the strain, as rising sea levels and the increased frequency of storms contribute to higher insurance costs. Homeowners in these areas face the dual challenge of protecting their properties from environmental threats while managing escalating premiums. The balancing act may be true – according to AAHIA, the only coastal areas in Australia that experience No or Low Pressure in affordability stress are southwest WA, SA’s coast and Victoria. Easing Home Insurance Affordability Stress While rising insurance rates can feel overwhelming, there are several strategies homeowners can adopt to ease the burden of paying higher premiums. Shop Around for the Best Deal Don’t settle for the first quote you receive. Shopping around and comparing policies from different insurers can help you find the most competitive rate. Many online comparison tools allow you to easily compare coverage options and premiums. Increase Your Excess Opting for a higher excess (the amount you pay out of pocket when making a

Offset accounts are a popular tool for homeowners aiming to pay off their mortgage. Learn how they work and why they’re a smart option in Australia. Purchasing a home in Australia is a significant financial milestone, but the journey doesn’t end there. For most homeowners, paying off their mortgage becomes a top priority. While there are several strategies to achieve this goal, one increasingly popular method is using offset accounts.  In this article, we’ll explore how offset accounts can help you pay off your home loan and why they’re an attractive option for homeowners in Australia. Understanding Offset Accounts An offset account is a financial tool linked to your home loan. The basic idea behind offset accounts is to help borrowers reduce the amount of interest they owe on their home loan. This is done by offsetting the balance of your home loan with the balance of your offset account. Here’s how it works: Offset Accounts vs. Redraw Facilities It’s essential to distinguish between offset accounts and redraw facilities, as they serve similar purposes but have significant differences. Offset Accounts Redraw Facilities The key difference is the separation of funds in offset accounts, which allows borrowers to save on interest while still having access to their savings. How Much to Put in Your Offset Account? Now that you understand how offset accounts work, the question arises: how much money should you put into your offset account to make a real impact on your home loan repayment? The answer depends on your individual financial situation, but here are some general guidelines: The Benefits of Offset Accounts for Paying Off Your Home Loan Using an offset account to pay off your home loan in Australia offers several benefits: Conclusion Offset accounts have become a powerful tool for homeowners in Australia seeking to pay off their home loans more efficiently. By using the balance in your offset account to offset your home loan, you save on interest payments, reduce the loan term, and gain more financial freedom. While the ideal balance for your offset account may vary depending on your specific financial situation, the more you can contribute, the more you’ll benefit from the reduced interest. With the right strategy, you can make significant progress toward fully owning your home. DISCLAIMER:  This article is for informational purposes only and does not constitute official financial advice. 2 Ezi is not affiliated with any bank or lender.