Budgeting

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.

Wire transfers offer a reliable and simple way to send money to friends, family, employees, or businesses abroad. As an electronic method, a wire transfer moves funds directly from one person or business to another, making it a popular choice for secure international payments in today’s global economy. This article will explain everything you need to know, from the required information for a wire transfer to common errors, tips for avoiding scams, and ways to save money. Important Information for Wire Transfers The information required for a wire transfer depends on the type of transfer. Identify the Type of Wire Transfer Wire transfers are either domestic or international. Information Needed for Domestic Wire Transfers The specific details depend on whether the transfer is domestic or international. For a domestic wire, you’ll typically need: Information Needed for International Wire Transfers When sending an international wire, you’ll need the same information required for domestic transfers, plus: The SWIFT code directs the transfer to the correct bank, while the IBAN ensures it reaches the correct account. Preparing for a Wire Transfer Before starting a wire transfer, it’s essential to gather key details. Collect the Necessary Information Here’s a checklist of what you’ll need: Confirm Before Sending Errors in the wire transfer process can lead to delays or even loss of funds. To avoid this: By following these steps, you can minimise the risk of delays or errors. Mistakes to Avoid in Wire Transfers Wire transfers are not reversible, so it’s crucial to get everything right before completing the transaction. Here are some frequent errors to watch for: Protect Your Information To safeguard your personal data: Additionally, consider enhancing security measures for your accounts and securing your home networks. Recognise and Avoid Scams Wire transfer scams come in different forms, with these being the most common: To avoid these scams: DISCLAIMER: This article is for informational purposes only and only constitutes general financial advice. 2 Ezi has no relationships with any company or organisation mentioned in the article.

The debate over working from home versus mandatory on-site work has become increasingly prominent, especially as various governments and organisations across Australia navigate the shifting landscape of post-pandemic work arrangements. In New South Wales (NSW), the push to bring all employees back to the office has sparked considerable debate, while Victoria continues to offer flexible WFH solutions. This article explores the current recall situation in NSW, the pushback against full on-site mandates, and compares the approaches taken by different states. NSW’s Full Office Recall In recent months, NSW government agencies have been implementing policies to recall public employees to their physical workplaces, after a circular in 2019 allowed WFH moves. The boom finally fell on 5 August 2024, when NSW Premier Chris Minns declared in an all-government memo that all state employees must report to their offices going forward, effective 6 August. While the NSW public sector was mandated to be onsite, the government stated there may be some flexibility in terms of compressed hours or job share arrangements. Some employees on hybrid work must formally state a case for having their existing work arrangements remain in place, subject to approval from their Department’s chief people officer.    This shift is driven by several factors, including the desire to boost productivity, foster team collaboration, and enhance workplace culture. Proponents argue that in-person interactions are crucial for maintaining effective communication and strengthening organisational bonds, which can be challenging to achieve remotely. Issues with office space vacancies in the Sydney CBD – with an overall rate at 11.6 per cent –  also nudged the government to implement the recall. Katie Stevenson, executive director of the Property Council of Australia’s NSW branch, said in an ABC interview that the Council lobbied with the state to activate the recall. She cited a high 19.5 per cent office vacancy rate in Parramatta, where many NSW government agencies hold court – when that rate stood at 3.2 per cent pre-pandemic. The problem with filling up office space may have been a factor in Mitsubishi Estate Asia deciding to sell its 30 per cent share in the Salesforce Tower at 180 George St.   However, the push for mandatory on-site work has faced significant opposition. Many employees and organisations argue that the benefits of remote work—such as increased flexibility, reduced commuting time, and improved work-life balance—should not be disregarded. Critics of the full recall policy assert that the productivity gains seen during the remote work period should not be overlooked and that a return to the office might undermine the progress made in terms of employee satisfaction and work efficiency. Opposition to a Full Recall Criticism appeared almost as soon as Mr Minns finished the announcement, with some concerns emerging.  Employee Wellbeing The shift to remote work during the pandemic allowed many employees to achieve a better work-life balance. The return to mandatory on-site work could disrupt this balance, leading to increased stress and decreased job satisfaction. The Public Service Association of NSW reported there will be problems trying to bring together all employees when there’s not enough secured office space for them.  Productivity and Efficiency Some studies and anecdotal evidence suggest that remote work can lead to higher productivity levels. Employees have reported fewer distractions and the ability to tailor their work environment to their preferences, which can contribute to more efficient work. Cost Implications Commuting to and from the office incurs additional costs for employees, including travel expenses and time spent in transit. For many, these costs are a significant burden, especially when the benefits of working on-site are perceived as minimal. The travel is even worse when some NSW public servants are not even in NSW – an unnamed NSW government official revealed for example, to the Daily Mail Australia, that he had a remote employee based out in Noosa, QLD.  The NSW Treasury also shared their concerns on a whole-of-government site recall. In a joint report by Treasury’s NSW Productivity Commission and the NSW Innovation and Productivity Council, the office stated that when NSW’s lockdown protocol was relaxed in 2021, WFH solutions helped increase employee engagement while minimising staff turnover. The productivity boost from this was tallied at $6 billion a year.  Environmental Impact Reducing the number of commutes contributes to a decrease in carbon emissions, aligning with broader environmental goals. The move back to full on-site work might counteract these environmental benefits. Flexibility and Inclusivity Remote work has opened opportunities for employees who may face challenges with traditional office environments, such as those with disabilities or caring responsibilities. A rigid return to on-site work could limit these opportunities. Victoria Promotes WFH In contrast to the NSW government’s approach, Victoria has been more accommodating in offering flexible work-from-home solutions, and the state administration is looking at the situation up north with strong interest. A notice from Premier Jacinta Allan said NSW public servants who have done well with WFH are welcome to turn over a new leaf in Victoria, as there are no plans to “roll back” the current flexible work arrangements they have. Victoria’s approach reflects an understanding of the evolving nature of work and the benefits of flexibility. By providing employees with the option to work from home, the state acknowledges the positive aspects of remote work and seeks to balance them with the benefits of in-person collaboration. However, Minns is not taking Ms Allan’s invite lying down, stating that given how residents of Melbourne were tightened up during the COVID19 lockdowns, they needed a release such as going out to work in a comfortable office. The Melbourne city government and the Victorian Chamber of Commerce and Industry (VCCI) also favoured NSW’s site-recall order. In discussions with the Herald Sun, VCCI CEO Paul Guerra said returning to office was a chance for better productivity, as pedestrian sensors near Victorian government offices recorded almost scarce foot traffic for most of the first half of 2024. On-Site vs. WFH The debate between on-site and remote work is not unique to NSW and Victoria; it is

As the Australian rental market fluctuates, both investors and renters are seeking opportunities due to falling rental rates. With recent trends showing a drop in prices, now might be the perfect time to invest in rental properties or secure a better rental deal. This blog explores why investing in rental properties during price declines can be beneficial and provides an update on the latest trends in Australia’s rental market as of August 2024. Why Invest in Rental Properties When Prices Decline? When property prices drop, acquisition costs follow suit, creating an opportunity to buy at a more attractive price. This lower entry cost can lead to higher long-term returns as the market recovers, improving rental income over time. For first-time investors or those expanding their portfolios, lower property prices reduce the initial capital needed. This makes it easier to enter the market or diversify holdings with less upfront investment. Investing during a price downturn positions investors for future gains. As the market rebounds, property values and rental income may rise, leading to capital appreciation and improved rental yields. Falling rental rates and increased vacancies give renters more negotiating power. This can result in better rental terms or additional perks from landlords eager to attract tenants. Latest Developments (August 2024) The Australian rental property market is undergoing notable changes in the past few months, with the potential to influence both investors and renters. Falling Rental Rates The latest analysis from SQM Research found drops in rental rates across various Australian cities from July to August. On the national level, house rental rates went down 0.4 per cent while flat rentals remained unchanged. The fastest rate decline has been observed in major metropolitan areas, though. In Sydney for example, the average rental levels for houses went down 1.4 per cent month-on-month while apartment rentals crept down 0.6 per cent. When you take a closer look by the week, house rentals dropped 4.69 per cent and weekly flat rental dropped by 0.89 per cent.     Incremental drops in house and apartment rental rates were also recorded in the other state and territorial capitals, ranging from 0.3 per cent to 0.8 per cent. In terms of who was the biggest “winner” among them in month-on-month rental rate drops for houses and flats combined in July, Hobart was 1.6 per cent down.  SQM Research director Louis Christopher said the rental rate drops may seem tiny, but they are the biggest since the COVID-19 pandemic. This reduction is attributed to a combination of factors, including increased rental supply and shifting demand patterns. Increased Rental Vacancies The rental vacancy rate has risen in several cities, reflecting the growing availability of rental properties – at a national level, the rate in July stood at 1.3 per cent, which was consistently the highest since the 1.4 per cent tallied in February 2022.    For example, in Sydney, the vacancy rate is 1.3 per cent – but when you look at per suburb, you will notice more listings, such as a 5.1 per cent rate for places in the Sydney CBD and its satellite areas. Melbourne has seen a similar trend with a vacancy rate of 1.5 per cent. This higher vacancy rate is creating more opportunities for renters and investors to negotiate better rental deals. Market Adjustments The rental market is adjusting to changes in economic conditions, including interest rate fluctuations and shifts in population dynamics. As supply exceeds demand in some areas, landlords are adapting by offering incentives such as reduced rent or improved property conditions to attract tenants. Regional Shifts While major cities experience falling rental rates, some regional areas are seeing increased demand and stability in rental prices. This shift may provide investment opportunities in emerging regional markets where growth potential is strong, and rental yields remain attractive. Policy Changes Recent policy adjustments at both state and federal levels are influencing the rental market. Initiatives aimed at improving housing affordability and increasing rental supply are contributing to the current market dynamics. For instance, some states are introducing measures to support renters and increase transparency in rental agreements. Taking Advantage of Lowering Rentals For those looking to take advantage of the current rental market conditions, the following are a few strategies to consider. Conduct Thorough Research Before investing in a rental property, conduct comprehensive research on market trends, local rental rates, and vacancy rates. Understanding the dynamics of the specific area you’re interested in can help you make informed decisions and identify the best investment opportunities. Explore Emerging Markets Consider investing in regional areas or emerging markets where rental demand is strong, and potential for growth is significant. These areas may offer more stable rental yields and opportunities for capital appreciation. Negotiate Rental Terms If you’re a renter, use the current market conditions to negotiate better rental terms. With increased vacancies and falling rates, landlords may be more open to reducing rent or offering additional benefits to secure tenants. Evaluate Long-Term Potential While short-term rental rates are important, also assess the long-term potential of the property. Factors such as location, infrastructure development, and future growth prospects should influence your investment decisions. Stay Informed Keep up-to-date with market developments and policy changes that may impact rental prices and availability. Being informed will help you adapt to market shifts and make strategic decisions. Conclusion The Australian rental property market is experiencing a period of significant change, with falling rental rates and increased vacancies creating opportunities for both investors and renters. By understanding the current market dynamics and strategically positioning yourself, you can take advantage of these conditions to achieve favourable outcomes. Whether you’re looking to invest in rental properties or secure a better rental deal, now is a prime time to make informed decisions and seize the opportunities presented by the evolving market. DISCLAIMER: This article is for informational purposes only and does not constitute official financial advice for property rentals. The data presented in this article is the most accurate at time of writing. 2 Ezi is not affiliated with