What if watching free TV cost you $80 a month?

The federal government is considering allowing free-to-air TV providers to stop broadcasting their channels over the airwaves and just offer them online instead.

But social support groups say some Australians would struggle with the cost and technical skills to start streaming if they lose free-to-air services.

Most TV companies are already paying to maintain broadcast and streaming networks and these costs have remained high, despite less people watching free-to-air services.

Meanwhile, telcos are keen to get access to some of the airwaves TV uses to roll out new mobile services, such as 6G.

The government is considering letting broadcasters stop offering some or most channels over the air.

Another option is to keep broadcast networks, but make them more efficient.

Most Australian TV channels are already available to stream for free, but the loss of antenna services would make people more reliant on their internet service provider.

Internet bills can cost as much as $80 per month or more and Anglicare CEO Rob Stokes says many of the people his not-for-profit supports have limited funds to put towards such expenses.

"These people are on fixed incomes and reliant on free services," he says, adding free TV can be their "lifeline" to the wider world.

"It's one thing to know how to connect online, but another to have the skills to determine what's the right streaming service".

ATO to stop accepting credit card tax payments

It's been a busy week for the ATO.

On Thursday, the body announced it would no longer let Aussies make payments on its website with a credit card from November 30.

Some small business owners have taken to social media to point out the change comes just as they've been asked to absorb the cost of card payments due to the surcharge ban.

The tax office says it's removing the credit option in accordance with the Reserve Bank's ruling that card surcharges can't be passed onto consumers from October 1.

Business owners add that paying GST and other bills via credit card also helps their cashflow.

But the tax office says only 2.3% of tax payments were made with credit cards in 2024-25.

It says 60% of these payments were "made by privately owned and wealthy groups and public and multinational businesses".

Foreign investor fined $508,000 for land banking

The tax office has penalised a second foreign property investor for taking too long to build on vacant residential land they'd bought.

The ATO announced this week the federal court had fined the landholder $508,000, less than a month after it charged another foreign investor $370,000 for the same offence.

Foreigners who buy residential land in Australia have to build a house on the plot within four years under rules designed to boost housing supply.

Continuing to hold the plot without building on it is considered "land banking".

"[This] limits housing supply for the Australian community and will be met with significant consequences," said ATO assistant commissioner Jennifer Moltisanti.

"Foreign investors need to understand that buying residential land in Australia comes with clear obligations".

Retailers fined over allegedly misleading Black Friday sales

Two furniture retailers have been fined a total of almost $60,000 after they allegedly misled consumers during the biggest sales of the year.

The ACCC has accused Vuly Play Group and James Lane of claiming their Black Friday discounts were more time-limited than they really were.

As part of Black Friday and Click Frenzy sales last year, Vuly advertised discounts of up to 45% tied to a countdown timer.

But the ACCC alleges the children's play equipment supplier kept resetting this timer, while the deals stayed in place.

Furniture seller James Lane is accused of advertising its 2025 Black Friday sale as ending on December 3, all the while planning to keep discounts in place for another week.

The ACCC says these tactics give shoppers a false sense of urgency and pressure them to make quick purchases.

Vuly has been fined $39,600, while James Lane has paid a penalty of $19,800.

Job seekers warned to beware of North Korean hackers

If you're ever taking part in an online job interview and asked to download software, watch out.

That friendly recruiter could be trying to steal your data and assets to help fund the world's most notorious dictatorship.

National cyber safety bodies say North Korean hackers are luring people into fake job interviews.

Australia's signals directorate and cyber security centre say these tricky criminals are then gaining access to personal computers and stealing private data and cryptocurrency.

In a warning, co-signed by other countries' agencies, the groups say hackers have transferred over $15 million worth of crypto to North Korea.

Software and IT professionals anywhere in the world are their targets.

Victims are invited to virtual job interviews, where they're asked to download files that give the hackers secret access to their computer.

What's going on?

Ordering lunch through a QR code at a pub might no longer attract a card surcharge. But some customers are now seeing a new "platform fee" instead.

Aussies are noticing the new costs just as relief from fees on popular card payment methods started to be felt on Thursday.

Most of these new platform fees range from 20-60 cents, but Reddit users familiar with the ordering platforms say they've only been introduced recently.

It's led some consumers to argue the new fees are replacing card surcharges.

 

 

 

 

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Who is charging the fees?

Among those introducing the new levies so far have been food ordering platforms me&u and Bopple.

Me&u shot to prominence in Australia during the coronavirus pandemic.

Its QR codes, which customers can use to order food and drinks from their tables, have become a common site at pubs and restaurants across the country.

Bopple is a smaller business, but similarly allows users to order from hospitality venues remotely.

Customers use credit cards, debit cards, prepaid gift cards or bank cards saved via Google or Apple pay to pay for orders.

These transactions would have previously attracted a card surcharge (1.7% in the case of me&u), but this is no longer allowed.

So are platform fees allowed?

Some consumers have called on regulators to investigate the new fees.

The Australian Competition & Consumer Commission (ACCC) told SBS News it's aware of businesses introducing platform fees and public concerns surrounding them.

The surcharge ban only means businesses can no longer charge extra for payments made using Visa, Mastercard, American Express or EFTPOS credit, debit or prepaid cards.

Operators are still allowed to charge other fees or surcharges that aren't based on how a consumer pays for something.

This means weekend or public holiday surcharges and service and booking fees are still okay.

Businesses might still be facing their own costs to take card payments, though.

But the ACCC says they can't try and cover these by rebranding card surcharges as another fee.

Few rules restricting new fees

Until they were banned this week, the ACCC enforced rules governing card surcharges.

It said they couldn't be excessive and above what it actually costs businesses to process card payments.

As payment system expert Professor Steve Worthington from Swinburne University notes, there aren't the same guidelines for service or platform fees.

"We've lost that fallback we used to have," he says.

"[Until October 1], if you saw a charge and thought it was excessive, you could complain to the ACCC.

"Now if you're a consumer, the RBA doesn't want to know about it and the ACCC doesn't want to know about it".

The ACCC has clarified that introducing a card surcharge under another name may amount to "misleading conduct".

Businesses the ACCC accuse of such conduct can face significant action from the regulator.

What do the platforms say?

A me&u spokesperson told Money its platform fee is "compliant with new regulations" and venues can choose whether to pass it on to customers or cover it themselves.

Both me&U and Bopple say on their websites the platform fees help pay for the services they provide.

Neither company responded to questions about whether their platform fees had replaced previous card surcharges and wouldn't confirm when the new fees had been introduced.

The me&u spokesperson said on an average order of $42, their platform fee is $0.60.

A 1.7% card surcharge on the same subtotal would be $0.71.

How can you avoid these new fees?

Quite a few small businesses have been introducing cash discounts as the surcharge ban comes into effect.

"I think we're going to be seeing more use of cash than we were before," says Professor Worthington.

"It's quite legal to offer a discount to pay by cash and I think given the situation we've got at the moment, a lot of people might just take that up".

Are Australians preparing for a recession or treating one as inevitable before the evidence supports it?

Higher interest rates, expensive groceries and rising unemployment make pessimism understandable, but we have heard this story before.

In early 2023, Deloitte warned that further interest rate increases could tip Australia into recession.

The concerns were familiar: squeezed households, weakening confidence and falling property values. Yet Australia avoided a technical recession that year.

The national accounts recorded growth in every quarter of 2023. Meanwhile, national home values rose 8.1%. Anyone assuming economic anxiety meant further price falls would have been wrong.

There is another side to the story.

Output per person fell during 2023, so many Australians genuinely went backwards even as the overall economy expanded. That helps explain why an economy can feel recessionary without entering a technical recession.

What about today? Australia grew 0.4% in the June quarter and 2.1% over the year.

The latest output figures show expansion, not contraction.

Unemployment at 4.6% signals mounting pressure, but it does not mean Australia is in a recession. Inflation of 4.0%, with underlying inflation at 3.6%, further complicates the outlook.

More interest rate rises could weaken growth, but that is a risk to assess, not an outcome to assume.

Even if a recession arrives, its severity matters.

A short downturn and a prolonged depression have very different consequences.

A recession is serious, especially for those who lose their jobs, but simply calling something a recession does not tell us how deep or prolonged the downturn will be.

My view is that now is the time to challenge the crowd's pessimism. The lesson from 2023 is not that everything always works out.

It is that gloomy forecasts can fail while opportunities emerge.

Prepare for difficult conditions and keep some financial breathing room.

But do not put every worthwhile decision on hold until the headlines improve. Fear can help us recognise risk, but it becomes costly when we mistake it for certainty.

Best and worst sectors

Information Technology was the best-performing sector so far this week, rising more than 2.7% as Tuesday's strong rally in Codan, Megaport and WiseTech helped lift the sector. Codan was also boosted by demand for its communications equipment.

Consumer Discretionary gained more than 1.7% as lower oil prices offered some relief to the outlook for household spending.

Buying in major retailers including Wesfarmers, JB Hi-Fi and Harvey Norman led the gains.

Real Estate rounded out the top three, rising more than 1.4%, with property stocks rallying on the slightly below-forecast inflation result as investors reassessed the risk of further increases in borrowing costs.

At the other end of the market, Energy was the worst sector so far this week. It fell more than 2.4% as falling oil prices weighed on producers and investors reassessed the earnings support from September's elevated crude prices.

Materials was the second-worst sector, dropping more than 1.5% as gold fell and US bond yields climbed, pressuring gold miners and adding to weakness across resources.

Consumer Staples rounded out the worst performers this week, falling more than 1.2% as Thursday's broad sell-off hit defensive shares as well. Rising bond yields and concerns about Australian earnings appear to have outweighed their usual defensive appeal.

Best and worst stocks

Codan Limited led the ASX Top 100 this week. It climbed more than 29% after a profit upgrade driven by exceptionally strong demand for its drone communications technology in conflict regions.

Northern Star Resources followed, rising more than 7% after revealing Gold Fields' takeover approach, with expectations of an improved offer supporting buying despite the board rejecting the bid.

Seek Limited rounded out the leading performers, also gaining more than 7% as bottom pickers drove short-term buying despite the long-term downward pressure the stock faces.

At the other end, Liontown Resources was the weakest performer, falling more than 15% as its $389 million Kathleen Valley expansion increased spending commitments, potentially adding to selling pressure.

Lynas Rare Earths followed, falling more than 11% as investors questioned the price and processing risks of its proposed $672 million acquisition of Meteoric Resources.

Cochlear Limited rounded out the worst performers, falling more than 5% as it faced fresh uncertainty after being served with a shareholder class action over its FY2026 profit guidance.

All Ordinaries index update

The All Ordinaries Index has had another volatile week, finishing Thursday down 0.58%.

After a promising 0.9% rise on Wednesday, sellers returned on Thursday, driving the market down 1.9% and wiping out those gains.

With buyers struggling to hold their ground, 8600 is now the next important level to watch.

Energy and Materials led the losses, while oil prices have fallen around 16% from their September peak amid reports of increased flows through the Strait of Hormuz.

For investors, the challenge is to remain patient without losing sight of potential opportunities.

Many quality stocks have been caught in the selling, but a falling share price does not necessarily mean a company's long-term prospects have deteriorated. Equally, a lower price alone is no reason to buy.

We still need to see evidence that buyers are returning.

As I've mentioned in previous reports, September has historically been a weak month for the ASX, while October has tended to be relatively flat, averaging around negative 0.25%.

These seasonal patterns provide context, but price action will ultimately tell us whether the current weakness is easing or has further to run.

The best use of this period is to build a watchlist of companies with sound fundamentals and monitor their charts for favourable technical setups.

November has historically been one of the stronger months, which could provide a tailwind if sentiment improves and buyers regain control.

For now, avoid rushing in or allowing daily swings to dictate your decisions.

Stay patient, watch the key levels and prepare your next move. The final months of the year could still offer worthwhile opportunities, but being ready also means waiting for the market to give you a reason to act.

Australians can compare the energy efficiency of a washing machine in seconds.

Yet when we buy a home, the largest purchase most of us will ever make, too often we're expected to make a million-dollar decision without knowing what it will cost to run.

It's a problem hiding in plain sight. Almost 97% of Australian property listings don't disclose a home energy rating, leaving buyers in the dark about running costs.

And as thousands of homes come onto the market this spring selling season, that missing piece of information could cost buyers and sellers alike.

Buyers will commit to running costs that are unknown to them at the point of sale. Sellers will forgo value that is sitting invisible inside their property.

That cost and that value are the same thing: how much energy the property needs to run.

When we think of energy costs, our mind often starts sifting through different providers, or how we can get a better deal. But here is the rub.

Why energy ratings matter more than your power plan

Your energy plan sets the price of energy at any given moment. But it is your house that determines how much energy you need to buy over the life of your occupancy.

Many factors determining this can be painfully difficult to change, such as insulation, window glazing, or which way the living areas face. Switching plans also only saves a few hundred dollars once, then ACCC data shows these savings erode over time and require constant switching.

A better-performing house, on the other hand, lowers your bill every single year without any further action taken.

And Australians do want to know this before they sign. Research shows 86% want to see a home energy rating when buying, and 75% when renting.

So how did we become the third country globally to put energy ratings on appliances back in 1986, and yet are still catching up when it comes to our homes?

Why the rating never reached the buyer

The answer is in new research released by Cotality alongside the Real Estate Institute of Australia, examining how energy performance in homes became Australia's missing measurement.

The Efficiency Edge report notes that Australia already has a home energy rating system. It's just that most consumers don't ever see it.

The Nationwide House Energy Rating Scheme was built to show councils that a new home meets the construction code, which is how over 90% of new homes still use it. It was never designed to tell a buyer or renter what the place would cost to live in.

Yet Australians are doing the maths anyway.

Research shows around 68% of Australians planning renovations are doing so to lower their bills, sitting well ahead of the 55% who cite environmental benefits. Buyers are increasingly recognising that the cheapest home to buy isn't always the cheapest home to live in.

And where families can actually see a rating, they act on it.

When buyers can see a home's energy performance

The report followed several Australians as they bought, sold, or leased a home, to assess whether an energy rating impacted their decisions.

In one example, a family chose a four-bedroom rental that was 35% more expensive than another they liked, because it rated six stars against the 1.5 stars of their rejected choice.

This happened in Canberra, where energy ratings have been mandated at the point of sale and lease since 1999. The family was rewarded for their decision when the first electricity "bill" arrived as a $146 credit.

In a second Canberra case, a four-bedroom house passed in at auction at $2 million, but then five weeks later sold for $2.4 million instead.

The buyer pointed directly to the reduced running costs predicted from the 15 kilowatts of solar, seven-kilowatt battery, and double glazing as the trigger to bid higher. And the vendor collected $400,000 that would otherwise have stayed invisible.

These examples are of course anecdotal. But running costs are becoming as important to buyers as mortgage repayment costs, showing up in what sellers can achieve.

So how can we bring this number to the forefront?

Most Australians aren't making the energy comparison that our aforementioned renters did, because there is no requirement to declare the energy rating of a home in most Australian states.

The hidden features affecting your energy bills

The features deciding your bill are also the ones you can't easily see at inspection.

Insulation, glazing, orientation, and draught sealing sit behind walls and above ceilings, and are routinely absent from listings or described inconsistently.

But when they do become visible, the money conversation changes.

Solar panels can be seen from the street and are usually in listing pictures. Research shows they lift a property's value by around 2.7%, or roughly $23,100 on a typical property.

So buyers and renters are already paying more for the savings they can see. But there are more savings within many properties  that are just as capable of being shown like this.

A Home Energy Rating for existing homes launched nationally last month, delivered by an accredited assessor who visits the property to determine the energy score.

New South Wales began its voluntary rollout of rating disclosure in mid-2026 and has said it will move to mandatory disclosure once the market is ready. But there's no need to wait for the change.

Sellers and landlords can choose to order one now and put it in their listing, so the savings that are already built into the home can also be priced into the sale or rent.

Buyers and renters can also ask for one before they sign, to ensure they aren't setting themselves up for bill shock.

Because if a washing machine can offer you energy transparency, there's no reason the house it sits in can't too. And that answer may be worth a great deal more.

Super is often the second biggest asset Australians own after the family home, yet not enough attention is being paid to super death benefits and how well they are being managed and distributed by super funds.

A national survey recently conducted by Super Consumers Australia found that most fund members don't have a binding death benefit nomination in place setting out who their beneficiaries are.

It comes on the back of ASIC's findings that having a binding death benefit in place can significantly speed up a death benefit claim.

"Again, funds are dropping the ball on customer service and it is leading to real consumer harm. Reducing avoidable delays and uncertainty for grieving families is a no-brainer," says Super Consumers chief executive, Xavier O'Halloran.

Why your will may not determine who gets your super

Your will does not automatically decide who gets your super. If you want to ensure your death benefit goes to your estate, you must nominate your legal personal representative (LPR), the executor of your estate.

What then can you do to ensure your fund's super trustee follows your instruction? For starters you need to nominate beneficiaries that are eligible under super law.

Who can receive your super death benefit?

Under Australian super law, you can only nominate a dependant, or your LPR, as the executor of your will. If your benefit is paid to your LPR, your death benefit forms part of your estate and is distributed according to your will.

Dependants include: your spouse or de facto, your children including adult children and stepchildren and anyone you are in an interdependency relationship with.

If you haven't made a nomination or a non-binding nomination, the trustee of your fund may use their discretion to decide which beneficiaries to pay the death benefit to.

Which super death benefit nomination should you choose?

It's important that your nominations are clear and that you state the amounts each beneficiary should get.

There are also different types of nominations:

Non-binding nomination

You can make a nomination online or on a form. It doesn't require any witnesses.

While this is the easiest nomination to make, the trustee still has the final say on which dependants to pay the benefit to. It will carefully consider all your potential beneficiaries along with your nomination to determine how it is distributed.

Binding death benefit nomination

This allows you to nominate your dependants, or your LPR. However, these normally lapse after three years, unless they are renewed.

Non-lapsing binding nomination

Unlike binding nominations, this nomination doesn't lapse.

Why experts favour non-lapsing nominations

Nick Bruining, an independent financial adviser and founder of Bruining Partners, says that these variations often result from outdated trust documents.

"The non-lapsing binding death benefit nomination is the rolled-gold variety. You only need to do it once, although you can update it if required.

"Where there are no dependants at all, then the estate is the only way you can proceed."

Bruining says death benefit nomination forms can be accessed from your fund's website.

"Some can be done online, the paper version generally requires two witnesses. It must be completed showing the portions payable to the dependants as a percentage," he says.

For the sake of loved ones, he underlines the importance of filling in a non-lapsing binding nomination so that they aren't put under financial duress because of roadblocks and countless delays.

"Rules differ at fund level when there's a death benefit and no valid nomination. Some funds will 'dig around' to locate all dependants and possible beneficiaries. This sometimes creates huge issues with blended families or those where there's been relationship breakdowns. Some funds will pay the benefit to their estate as their default position."

Will your beneficiaries pay tax on your super?

If the benefit is paid to someone who depends on you financially, like your partner or children under 18, the benefit goes to them tax free, says Bruining.

"If the benefit is paid to a dependant that does not rely on you financially, the benefit is taxable.

"The taxable component of your super will be taxed at 15% plus the 2% Medicare levy. However, if the death benefit is paid into a deceased estate, the will takes over and the money is distributed as per the will. It is still subject to the 15% tax but because the estate is not a 'natural person', no Medicare levy applies."

He says where there is a financial dependant, usually the partner, "we would typically suggest they are nominated to get the lot because it is tax free".

Finally, don't hesitate to get information and guidance from your super fund about ensuring your nomination is valid and correct. So much rests on it.

And if you have a complaint about death benefit payments or delays, contact the Australian Financial Complaints Authority. See afca.org.au/make-a-complaint/superannuation.

What are bonds?

Bonds are essentially loan contracts issued by governments or companies, who use the money they get for them to fund spending.

Because they're issued by national governments and large corporations, they're considered a very safe asset, second only to cash.

When you buy a bond, you're loaning the issuer that amount of money and, in exchange, receiving regular coupon payments.

At the end of the agreed term, you get back the initial face value of the bond.

But you don't have to wait: you can sell bonds before the end of their term on the secondary market.

What are bond yields?

Bond yields reflect the return an investor earns from holding a bond. They're usually expressed as a percentage and are influenced by both the bond's coupon payments and its market price.

Government bond yields are often relatively low, but start to rise when the bonds become less popular and their prices start to fall.

Why are bond yields in the news?

Government bonds are getting attention right now because their yields have been pushing above 5%.

That may not sound like much, but it's the highest they've been in a long time.

Yields on some US government bonds recently hit levels not seen since 2007, while the yield on Australian government 10-year bonds has reached a 15-year high.

Other countries, including the UK and Japan, have also seen their government bond yields reach new heights.

Why are yields so high?

Experts say these increases have been driven by developments in the US and its influential government bonds.

GSFM investment strategist Stephen Miller says the rise in American government bond yields is being fueled by a "toxic cocktail" of high inflation and a large government deficit.

In this environment, the US government is relying on bonds to finance its operations, just as AI companies are looking for money to expand.

"If the US government is issuing bonds to finance a budget deficit, it's competing for investors with AI hyper-scalers, who are also issuing bonds," Miller explains.

This leads to a situation where government bond prices fall and their yields rise as there's more competition for borrowers.

"Governments and AI are both seeking to borrow exceptionally large amounts of money... more people trying to borrow from a smaller pool of global savings is altering the price," says Philip Brown, head of research at FIIG Securities.

Miller says the significant influence of US government bonds in the global economy means a rise in their yields leads to the same elsewhere.

"If US treasuries are selling off, they generally drag other yields with them, so now Australia's got a problem too".

What's the problem for Australia?

Experts say rising government bond yields won't have a direct impact on most Aussies, but effects could filter through in small ways.

"It could affect those who are looking to have fixed-rate mortgages. I think [those] mortgages have gone up because of the lift in bonds," says David Bassanese, chief economist at Betashares.

"The other place it has an effect is the long-run cost of borrowing to the government," adds Philip Brown from FIIG Securities.

"Eventually, governments will need to tighten their belts... how they choose to do that has massive implications for Australians".

Should you invest in bonds?

But these experts also say the falling prices and rising yields on bonds could make now a good time to buy them.

"If you're an income-motivated investor, they might be starting to look attractive," says Stephen Miller from GSFM.

Philip Brown says the falling prices may have hit some superannuation funds holding bonds, but adds the dip has also created opportunities.

"Almost all super funds would have some exposure to fixed-income investments, which would have performed poorly in the last few weeks," he says.

"On the flip side of that, though, if you allocate more to those investments now, you lock in very high yields for a long time".

The three-letter code travellers need to know, smarter ways to fund aged care, why more Australians are rethinking what they buy.

How closely have you been following the money stories of the week? Take this week's 10-question Money Quiz and see if you can score full marks.

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Did you score 10/10? Share your result in the comments below and challenge a friend, partner or colleague to beat it.

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Australia is about to get its first new major public airport in 56 years and the project is set to pack quite a punch.

Western Sydney International (WSI) Airport will open to passengers on October 25, giving Aussies the choice of dozens more flights every week on popular travel routes.

Money compared fares from WSI and Sydney Airport and found some flights were up to 50% cheaper through the new airport, which opens on October 25.

The findings suggest the airport could put pressure on airfares by giving travellers more choice and boosting competition among airlines.

The 24-hour facility is also expected to spur on hundreds of new commercial and transport projects in the local area, worth $46 billion in total.

While businesses and governments make these investments, the airport is also expected to boost the local population by 26% over the next 15 years.

 

 

 

 

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What flights are available?

You can already book flights to and from WSI, with Jetstar set to operate services from day one and Air New Zealand starting flights to Auckland the day after.

When Qantas joins the domestic roster from March next year, it and Jetstar will be adding dozens more flights every week between Sydney and Melbourne, Australia's busiest air route.

International services will include flights to Singapore, Fiji and Vietnam, but some of these aren't scheduled to start until March 2027.

Will Western Sydney flights be cheaper?

Australia's Competition and Consumer Commission (ACCC) says our domestic aviation market is "highly concentrated," dominated by Qantas and Virgin Australia.

It's no surprise, then, that the regulator has welcomed WSI as offering more choice and competition to Aussie travellers.

This should lead to lower prices and the new airport appears to already have had an impact here.

Money used airline websites to compare the cost of flights to and from WSI with those going via Sydney's existing Kingsford Smith (SYD) airport.

We looked for the cheapest flights available between Sydney's new airport and various destinations on a given day.

We then compared these with the best offers for the same routes on the same day going via SYD.

Most Qantas flights to Melbourne and Brisbane cost the same, irrespective of which airport we chose, although in one case a flight to Melbourne from WSI was 12% cheaper.

Jetstar services were usually cheaper through WSI, especially flights to or from the Gold Coast.

On the day we checked, the airline's best offers via WSI were 30% cheaper than those going through SYD.

Most international prices were similar at either airport, but some Singapore Airlines flights were much cheaper at WSI on certain days.

On one day, travellers from Singapore could pay half as much to get to Sydney if they elected to land at WSI, rather than SYD.

But it's worth noting that WSI is located further from Sydney's CBD than Kingsford Smith and will have many fewer transport connections when it first opens.

Therefore, it's worth considering convenience and the cost of getting into and out of the new airport before jumping on these deals.

How long will these prices last?

"I wouldn't straight away assume that this [price] difference is going to be permanent," clarifies Dr Bojana Spasojevic, senior lecturer in aviation management at Griffith University.

"Airlines commonly use this strategy of introductory fares to stimulate demand and to encourage passengers to try a new airport... sometimes an airport would even initially waive charges [it puts on airlines]".

Will it give us greater choice of airlines?

Experts like Spasojevic say WSI could lead to cheaper tickets in the long term if it helps rival airlines get established in Australia and compete with Qantas and Virgin on price.

Attempts to start new domestic carriers have fallen short in recent years, with budget upstart Bonza going into administration in 2024 after only one year in operation.

"Kingsford Smith is heavily congested, with no take-off and landing slots left for newcomers," explains Dr Mirjam Wiedemann, an aviation expert and consultant.

"With WSI opening, it may free up some slots at Kingsford Smith, but there are now definitely slots available at WSI for airlines who want to fly to Sydney".

"It could mean new airlines get established in Australia as it opens the lucrative Sydney market. However, other cost drivers and barriers to entry remain for these new airlines [to get established] in Australia".

Reader question

My mum has recently gone into aged care.

She and I are pensioners. Because she has her house, the care costs are about $1200 per week.

After her pension it means I need to find about $650 per week. I'm a solo, mature mum and trying to keep the house for future security.

I've engaged a mortgage broker and a bank to discuss the possibility of a mortgage or reverse mortgage to get a lump sum to put in the refundable accommodation deposit (RAD), to drop the weekly costs.

I think there are house title issues and so forth, but would be grateful for any advice. - Sarla

Paul's response

This is a tricky one, Sarla, $650 a week is a lot to find.

But I do agree with your desire to keep your mum's home and I am sure she would want that for you.

I don't know the value of the home, which is a critical fact. Here you absolutely need advice from an aged care expert adviser, but I can make some general points.

If the house has a high value, it may be possible to sell it, purchase a smaller home in your mum's name, and reduce the RAD that you mention. Here is where the need for professional, personal advice comes in.

The RAD is not an assessable asset for the age pension, but an adviser will consider all your mum's assets.

One thing I think is for sure, which may not be mentioned by a bank or mortgage broker as there no fees for them, that the best reverse mortgage around available to pensioners is the Australian government's Home Equity Access Scheme.

You can find out how much you can get as a lump sum, a regular income payment or a mix of both at myGov. Please take a look.

Commercial rates on a reverse mortgage will be about 8.6%. The Home Equity Access Scheme is 3.9%.

I always recommend, even with a government reverse mortgage, that you seek independent advice, but it is pretty easy to choose 3.9% borrowing cost over nearly 9%.

I do believe you will be able to find a logical way to fund your mum's $650 a week without having to sell her home.

I agree, it is a real way to help your future financial independence. I'd encourage you to take a close look at the government's Home Equity Access Scheme.

On the face of it, it may be a solution to funding the $650 a week shortfall that you have to support your mum.

What to read next

• Australian financial glossary: 140+ money terms explained
• How to help ageing parents manage their money
• Aged-care rules you need to know about
• How does a reverse mortgage work in Australia?
• Ask Paul: I quit law for pastry - can I still support my mum?

Whether it's a school holiday adventure, a long weekend with your mates or just a getaway with your partner, Australians love road trips. But they can be both costly and dangerous if you don't prepare properly.

Often we simply pack up the car and hit the road. However, a little foresight and preparation can help make your trip safer, less stressful and potentially cheaper.

Here are some important tips that will help ensure your next road trip is both safer and cheaper.

Service timing

If your car has recently had its routine service, it should be ready for the trip.

But if it hasn't had a check-up in a long time (over six months) or you've covered a lot of kays, then booking a tune-up is a great idea.

This will mean your car will not only have a better chance of making it there and back again, but will also be running at its most efficient.

A poorly maintained vehicle can burn more fuel and is more likely to suffer a breakdown, potentially turning a relatively cheap service into a costly roadside repair.

You should also make sure all the usually overlooked items, such as windscreen wipers, fluid levels and lights are all working properly.

These kinds of jobs can be done by yourself, if you don't mind working on cars, to save a few more dollars.

Tyre pressure

This is one of the biggest mistakes people make.

Having your tyres underinflated can lead to high fuel consumption and extra wear, so you need to check they are at the correct pressure.

Under-inflated tyres can increase fuel consumption and shorten tyre life, meaning motorists can end up paying more at both the bowser and the tyre shop.

You should start by checking the tyres are in good condition, with no punctures, cracks, and  uneven wear.

It is best to check tyre pressure when they are cold, so do it either the day before the trip or before you set off.

The majority of service stations have easy-to-use air pumps these days, so that's where you'll need to go.

Most cars have a chart showing the correct tyre pressures on the inside of the driver's door frame, or sometimes inside the fuel cap so you'll know what pressure to inflate them to.

A wheel alignment is well worth the investment. If your wheels are out of alignment, your tyres can wear unevenly, and a long road trip may leave you needing a replacement sooner than expected.

You should also check the spare tyre, if your car has one, or make sure you at least have a tyre repair kit.

You don't want to be sitting by the side of the highway for hours if you can get yourself moving.

Battery failures

According to the NRMA, a flat battery is one of the most common causes of a breakdown on Australian roads.

So before you hit the road, it's important to ensure the 12-volt battery in your car is in good condition.

There are multiple ways a battery can fail, so it's worth getting a professional to give it a thorough inspection and replace it if recommended by your mechanic.

A few hundred dollars on a new battery could save your holiday from being stuck on the side of the road or in a random car park.

Overloaded vehicles

It's easy to want to pack a few more things 'just in case' you need them, but overloading your vehicle can be both costly and dangerous.

For starters, you need to be careful where you pack your luggage.

Having loose items in the cabin can be extremely hazardous in an accident, as they can fly around and hit you or your family. So, if you have an enclosed boot, keep all the large items in there.

But if you have an SUV or wagon, try to keep everything below the seat line. If that's not possible, consider fitting a cargo barrier between the luggage area and cabin.

Also, be mindful about how much weight you are adding to your car. More weight means the engine (or electric motor) needs to work harder and will use more fuel (or electricity), so you'll be spending more.

Roof boxes are a popular choice for many families these days, but while they add more space they also add more wind resistance, which means higher fuel consumption.

If you have an electric car, a roof box can reduce your range by as much as 25% at highway speeds, so make sure everything you take is worth it.

Roadside assistance and insurance

Before setting off on a long trip, make sure your car insurance is current and that you can easily access your policy details if something goes wrong.

It's also worth checking whether you already have roadside assistance through your insurer, vehicle manufacturer, warranty or motoring club membership.

Many drivers don't realise they're covered until they need help.

If you're not covered, consider taking out a policy before you leave.

Paying for an emergency callout on the spot can cost significantly more than an annual roadside assistance membership, particularly if you break down far from home.

Emergency kits

It's a great idea to have a small emergency kit in your car, just in case you strike trouble.

The kit should include a hi-vis vest and a foldable warning triangle to make it easier for other motorists to spot you if you're stopped on the roadside.

A torch, with spare batteries, is helpful too, as you don't just want to rely on your smartphone torch if you need it to make calls or look up other help.

Jumper cables are another sensible item to include.

As we've said earlier, a flat battery is common so having the ability to get it going with the help of someone nearby could save you hours waiting for help to come to you.

You should also make sure your car's manual is in the vehicle.

Some newer cars require you to access it online via a QR code, so you may want to download it in case you run into trouble where there is no phone reception.

Finally, a first aid kit is a good idea, because while no-one wants to get into an accident, if you do, having immediate help could be vital.

So could super funds hold the key to closing the advice gap?

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Rudy Leong, senior private wealth adviser at UniSuper, to discuss the type of financial advice members can currently access through their super funds and how that could change in the future.

Episode timestamps

00:00 Introduction

01:56 What is the financial advice gap?

04:00 What advice can super funds currently provide?

06:10 Does advice through a super fund cost money?

07:42 Overview of the financial advice reforms

10:00 What the reforms could mean for super fund members

11:49 The opportunities and risk of AI in financial advice

14:34 One question everyone should ask their super fund

15:46 Conclusion

Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

Where can I listen to the podcast?

You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

Is the podcast suitable for beginners?

Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.

What topics does the podcast cover?

The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.

How often are new episodes released?

New episodes are released weekly, so you can stay up to date with the latest financial tips and trends.

Can I watch episodes with captions?

Yes, full episodes with closed captions are available on YouTube.

Why subscribe to the Friends With Money podcast?

Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

Subscribe to the Friends With Money podcast today and start learning when it suits you.

I'd always been stumped by waste. I'd look in shop windows as a kid wondering, "Where does this stuff come from? Where does it go when we're done?"

There were a few things that got me into buying second-hand first.

It started as a financial imperative 20 years ago when I was working at Sotheby's, London. I had to look smart - but they expected me to look champagne smart on a beer salary.

I started shopping in op-shops (the quality of London charity stores has always been really high), bought myself a second-hand sewing machine and learnt to sew.

Back then for me it wasn't environmental. I was actually a bit ashamed, as if I wasn't earning enough money to buy new clothes.

Now, even though I only buy second-hand, I feel ashamed if I source it at a market or on eBay, because it's not from a charity!

I love the fact that by buying second-hand from a charity store I'm getting something and giving something.

How I realised our waste comes at a cost

For five years in a row, my mates and I went to the Burning Man festival in the Nevada Desert.

You can't buy anything, you can't sell anything and its tagline is "Leave no trace". I started waking up to the "trace" or impact our footsteps leave on our planet.

In Dharavi, Mumbai's infamous slum, I saw where our "waste" from the West goes to get recycled. Because the people there have so little, they see our waste as a resource. In India, as in nature, nothing is wasted.

In Antarctica I went on an expedition to learn about sustainability and climate change.

All these experiences kept feeding the tiger in my belly that was starting to roar: "We're stuffing this up but there is an alternative to our wasteful ways that's not only essential but better for us, our people, our wallets and our planet."

So in 2010, when I was doing a fellowship at the Centre for Sustainability Leadership, I approached Salvos stores as my charity partner and launched the first Buy Nothing New Month.

How buying second-hand gave me more money and less stress

I have more time, more money and less stress.

Because I'm not spending money on stuff I don't need, I have money for the stuff I do need. Look around your home and your wardrobe. Everything was once money.

Could you have used that money more wisely or did you really need that hot-pink sequined kaftan?

It's also shown me the power we all carry in our pockets to create change.

Every dollar we spend is a vote for the world we support.

I was told years ago that Buy Nothing New Month was flagged in a Coles meeting as something they needed to keep an eye on.

Wow, who would have thought a girl and a laptop could be on the radar of a retail giant, just by spreading a simple message like Buy Nothing New Month!

The biggest challenge of buying less

At the start it was helping people understand the reason I'm not buying them a birthday or Christmas present isn't because I'm a tight-arse.

I'm trying to spread the message.

Most gifts are unnecessary, come in wrapping that gets thrown away, bring momentary "buzz" and are cool for a hot minute.

Our happiness comes from experiences, and connections with friends, loved ones and our community.

For some, the hardest part is identifying the difference between need and want. There is a big difference.

I think for some people it's getting over the dinosaur concept that second-hand is second best.

If you eat in a restaurant, are you the first to eat from that cutlery? In a hotel, are you the first one sleeping in those sheets or using that towel?

How to start buying nothing new

Easy! Just don't buy stuff!

While we promote buynothingnew.com.au during October, you can do it whenever you want.

With the exception of essentials such as food, hygiene and medical products (I include booze and chocolate as essentials. It's not Dry July, people) just buy nothing new.

The ripper thing is you can buy whatever you like as long as it's second-hand.

Host a swap party. Invite five mates. Everyone brings five things they no longer want/need (could be clothes, shoes, books, homewares, etc) and you swap 'em around. Not "new" but "new to you".

Buy Nothing New Month starts conversations around how we can have a splendid time but without the wasteful, harmful, unnecessary consumption.

We live on a beautiful planet with finite resources, and we're consuming like there is no tomorrow. Do you want to be part of the problem or the solution?

Once people nail buying nothing new and want to graduate to the next level, they can meet "the new Joneses" and learn all the other daily lifestyle choices we can make (from our choice of bank, energy company, electric vehicle to composting and raising chickens) that are good for our wallets, our people and our planet.

Why more Australians are rethinking consumerism

I'm seeing a massive leap in the right direction.

When I started Buy Nothing New Month, while there was overwhelming support I did have some people (politicians, media, retailers) attacking me, saying I was stupid and trying to ruin the economy. "What about the retailers?" and "What about the economy?" they would say.

We won't have any retailers or an economy without a safe, stable planet to live on.

The UK has nowhere left for its rubbish. Its landfill is full. The US is heading in the same direction. What then? Where will the stuff go?

Refuse, reduce, reuse, repair, rethink, recycle.

The official cash rate has hit a 15-year high of 4.60% following the Reserve Bank Board's latest monetary policy meeting in Sydney this afternoon.

The Board  unanimously agreed on a 25-basis-point increase at the meeting - the fourth hike from the central bank in just eight months.

In its post-meeting statement, the Board said higher fuel prices have pushed up other goods and services, and growth and inflation have been higher than expected.

"Recent inflation outcomes in Australia were stronger than expected at the previous meeting.

"The Board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if needed."

The last time rates were this high

Julia Gillard occupied the Lodge. Gotye's 'Somebody That I Used to Know' topped the ARIA charts. And the cash rate sat at 4.75%.

It was October 2011 - the last time interest rates were higher than they are today.

Plenty has changed in the 15 years since, but there are some similarities between the two periods.

Annual inflation was running at 3.5% in the September quarter of 2011 (compared with the most recent 4.0% CPI figure), while unemployment was at 5.2% (it's 4.6% today).

As it turned out, October 2011 marked a near-term peak for the cash rate. Over the following two years rates were cut to 2.50%.

That could also be the case today: rates could flatline before falling next year. They could also climb higher. Only time will tell.

What does today's rate rise mean for mortgages?

One group that will be hoping that the cash rate has reached a peak is Australian homeowners with a mortgage.

In the meantime, they'll be focused on the weeks ahead and the prospect of an email from their lender outlining a 25-basis-point hike to their home loan rate.

Should that happen, a borrower with an average loan of $731,000 paying a typical variable interest rate of 6.21% would see their repayments jump by $113 a month.

Of course, that jump in repayments - if it does occur - won't be coming in isolation.

Factoring in today's increase and the rate hikes passed on earlier in the year, the average borrower could soon be paying $427 more per month than they were in January, according to Finder.

Australians with a mortgage are being urged not to sit on their hands though.

"Now is the time to pay close attention to the rate you're paying," says Richard Whitten, home loans expert at Finder.

"If you spot a better deal elsewhere, ask your lender what they can do. If they won't budge, switch to a more competitive loan. A lower rate could wipe out the cost of today's hike."

Will the RBA lift rates again before the end of 2026?

Now that today's verdict is in, attention will turn to the final monetary policy meetings of the year which will be held over November 2-3 and December 7-8.

The question is though: could either result in further hikes? The consensus from experts is mixed.

Among the banks, economists at ANZ and HSBC are currently predicting another hike from the RBA in November.

CommBank, NAB and Westpac, on the other hand, haven't pencilled in another rise, but aren't ruling one out entirely if economic conditions worsen.

Elsewhere, nearly half (48%) of economists and experts surveyed by Finder in the leadup to today's meeting said that they expected at least one more hike before the end of the year.

Retirement is no longer expected to be a short chapter in our lives. Thank goodness for that! Australians can expect to live, on average, into their 80s and, in many cases, will be retiring with greater wealth than previous generations.

However, this increase in life expectancy can bring with it new financial uncertainties and raise important questions.

How long will I live? How can I make my money last? Will I be able to leave something for my family? These are common questions among retirees.

The four Ls

Generation Life's LifeIncome product is designed for retirees who make plans based on four factors: longevity, lifestyle, legacy and liquidity.

Let's take a closer look.

Longevity is often retirees' biggest uncertainty and the greatest barrier to spending confidently.

It may help to consider the longevity of family members, using online calculators to estimate potential lifespans.

But there is an easier option. Investing part of your retirement savings in a lifetime income product such as Generation Life's LifeIncome can help manage uncertainty by providing income for life.

Lifetime income products provide a regular income for life and can offer greater flexibility in how retirement savings are spent or invested.

This brings us to lifestyle matters.

Research shows retirees are more likely to spend lifetime income as it can reduce their reluctance to spend and support better retirement lifestyles.

The third L is legacy, another area where lifetime income products can help.

Guaranteed for life

A lifetime income stream can be passed on to a surviving spouse or bequeathed as a lump sum to other beneficiaries.

For those who prefer to give during their lifetime, regular income can help fund anything from a grandchild's education to a family holiday.

Lifetime income products such as Generation Life's LifeIncome can help turn capital into a regular income guaranteed for life. But what about the fourth and final L, liquidity?

As a general principle, lifetime income products can support regular spending, while other retirement assets may fund larger, one-off expenses.

How much should you allocate to a lifetime income stream?

A financial adviser can play a valuable role in helping you decide whether investing some of your savings in a lifetime income stream guaranteed for life is right for you.

Talk to your adviser to discover how an income guaranteed for life could help manage uncertainty and enhance the quality of your retirement lifestyle.

By the time we reach our 50s, and definitely our 60s, retirement shapes up as a real, and often very attractive, proposition.

But for the 250,000 Australians who hang up their work boots each year, the road ahead can be clouded by uncertainty.

Mandy Mannix, principal advocate of retirement at Challenger, sums up one of the chief concerns facing many of today's retirees.

"None of us knows how long we will live for. Yet Australians are expected to be able to translate their super balance into a regular income."

Deciding how much income to draw down can be stressful, calling for a balancing act between having sufficient income to live comfortably without exhausting savings prematurely.

The unknowns can take a toll

"People are uncertain and that's understandable," says Mannix.

"Retirement brings so many unknowns to plan for, from the prospect of future aged care and health-related expenses, through to managing the cost of living and, of course, the big unknown, how long each of us will live for."

Andrew Ames, principal financial adviser at Own Path Financial Planning, notes that for many people aged 65 and older, the transition from saving to spending can be a "significant psychological shift".

As a result, Ames says, "In some cases, retirees live more frugally than they need to, even when their financial position would comfortably support a higher level of spending and enjoyment in retirement."

This hesitation around spending is well documented.

The Grattan Institute found few retirees draw down their retirement savings as intended.

Many are actually net savers, whose savings continue to grow for decades after they retire.

Part of the problem is that Australians are living longer, but how we make income last for a longer lifetime has not kept pace.

The Challenger Institute for Lifetime Income says that a 65-year-old woman has a 50% chance of living past 88 years, which is far beyond what most financial plans assume.

Add in modest levels of inflation, and the purchasing power of personal savings can be significantly eroded over what could be a 25 to 30-year retirement.

A guaranteed lifetime income can boost confidence, and happiness

Fortunately, there is a solution that can help boost retirees' confidence in their finances. The answer may lie with a guaranteed lifetime income stream.

It works like this.

You invest part of your super or other savings in a lifetime income product, also known as a lifetime annuity. An annuity is simply a sum of money paid at regular intervals.

From there, you receive guaranteed regular income for the rest of your life, often with an option to index payments for inflation.

It's easy to see how a guaranteed lifetime income could positively impact a retiree's outlook and help ease concerns around spending.

According to Challenger's Retirement Happiness Index, 70% of older Australians believe having income guaranteed in retirement would significantly boost happiness.

Mannix explains this boost.

"It means that for this part of their savings, people may be less concerned about what the market is doing, or what is happening with the cost of living, because they already have the basics covered."

Greater freedom to enjoy retirement

Ames admits that many of his clients are initially unfamiliar with the idea of a guaranteed lifetime income, although they soon warm to the concept.

He explains: "When clients understand that a lifetime annuity can provide known outcomes, such as a guaranteed income for life, indexed payments to help manage inflation, and potentially improved Centrelink, notably Age Pension, outcomes, the conversation often shifts.

"Rather than asking, 'Why would I consider a lifetime income stream?', clients begin asking, 'Why wouldn't I consider having at least part of my retirement income secured for life?'"

Ames adds: "Knowing that a portion of their essential spending can be covered regardless of market conditions can reduce anxiety and give retirees greater freedom to enjoy their retirement, rather than worrying about whether their savings will last."

Mannix goes further.

She points out that two retirees with similar levels of wealth can experience retirement very differently. Having a regular income they can rely on for life may give some retirees greater confidence to spend and enjoy their retirement.

"It's not about knowing your life expectancy or being able to roll with the punches of rising living costs," says Mannix.

"The real difference lies in the confidence of knowing you will receive a regular income for the rest of your life, and this may help reduce some of the uncertainty around managing money in retirement."

What sort of regular income is possible?

A guaranteed income for life will be a compelling concept for many retirees. But it begs the question, how much income are you likely to receive?

As a guide, a woman aged 67 who invests $100,000 in Challenger's Lifetime Annuity may receive annual income of $7506 fixed for the rest of her life, or a starting payment of $5936 that can increase each year in line with inflation.*

It's worth noting that modern lifetime income streams tend to be more flexible than in the past.

Mannix explains that some lifetime income products offer death benefit options. This can see a lump sum payable to a nominated beneficiary or estate.

If a reversionary option is selected, the regular income can continue to be paid to a surviving spouse for the remainder of their lifetime.

How much to invest in a lifetime income stream?

Mannix says there is no set figure when it comes to how much of your total retirement savings should ideally be invested in a guaranteed lifetime income product.

While guaranteed lifetime income plays a strong role in providing certainty, the reality can be more nuanced.

Depending on personal circumstances, combining guaranteed lifetime income with an account-based pension could enhance retirement outcomes across a range of financial measures.

This is why financial advice can play an important role in determining the most effective blend for individual needs.

Ames says finding the right blend involves weighing up income needs and lifestyle goals, the level of certainty you would like around future income, potential Centrelink outcomes, and personal preferences around leaving a legacy to family or other beneficiaries.

Enjoy retirement with less financial anxiety

The appeal of a guaranteed lifetime income is not necessarily about spending more. Rather, it is about having the confidence to spend.

Ames believes a guaranteed income stream can be linked to specific retirement objectives.

It may provide certainty around meeting ongoing household expenses or simply provide opportunities to help out children or grandchildren.

"What I often see is that a guaranteed lifetime income provides peace of mind," says Ames.

"Rather than worrying about market movements or whether their savings will last, clients have greater certainty around key aspects of their retirement plan."

And, as he notes, that confidence can help retirees make decisions and enjoy retirement without the burden of financial anxiety.

*Provided for illustration purposes only and does not constitute personal financial advice. Rates are based on a female, age 67, Flexible death and withdrawal benefit, monthly payments (annualised).

This report is sponsored by Challenger. It is independently researched and written.

In February 2026, the International Monetary Fund (IMF) warned that Australia faced risks on both sides.

Inflation could remain stubborn, while weaker growth could push unemployment higher. It backed an RBA that responds to the data and called for tighter control of government finances.

August's jobs figures put that balancing act in sharper focus.

The unemployment rate rose to 4.6%.

On the ABS trend measure, 9300 more Australians were unemployed than in July and 58300 more than a year ago, while full-time employment fell by 6300 in the seasonally adjusted figures.

While the unemployment number is up, it does not mean the jobs market has collapsed yet.

Total employment rose by 39500, part-time employment increased, and hours worked were up.

The ABS also cautions against reading too much into one month's movement, but it would be just as careless to ignore the rise in unemployment.

The question now is whether Australia can bring inflation down without pushing more people out of work.

The RBA has reason to remain concerned. Its August assessment put underlying inflation at 3.6%, above its 2% to 3% target. That rules out declaring victory or assuming rate cuts are around the corner.

However, it does not make another rate rise the obvious next move.

Higher rates slow borrowing and spending; they cannot build homes, fill skills shortages or directly reverse an overseas energy shock.

If inflation remains high while the labour market softens, the RBA needs to establish what is keeping prices up before making mortgages and business loans more expensive again.

My view is that the RBA should hold at its next meeting. Give the recent rate rises more time to work and look for evidence that August's rise in unemployment is continuing.

A further hike should require convincing signs that broad spending is still driving inflation, not simply another headline.

Most importantly, the government cannot leave this entire problem with the RBA.

The IMF supported fiscal restraint alongside reforms to lift productivity and ease housing supply constraints.

Those are harder tasks than calling for the central bank to be tough, but they matter if Australia wants lower inflation without relying on weaker employment to get there.

It is easy to demand another rate hike when someone else bears the cost in their mortgage repayments, their business or their job.

The IMF did not tell Australia to raise rates again. It warned that policymakers must stay alert to both inflation and a weakening economy.

August's figures are a reason to take both sides of that warning seriously.

Best and worst sectors

Healthcare was the best-performing sector so far this week, rising more than 0.8% as the market looked for earnings less exposed to a slowing Australian economy. Gains in CSL, Cochlear and Fisher & Paykel also helped the sector.

Consumer Discretionary also gained more than 0.8% as lower oil prices offered some relief to the outlook for household spending.

The rise in major retailers also suggested investors were willing to buy consumer stocks despite the risk of another RBA hike.

Information Technology rounded out the top three, up more than 0.6%, as renewed global enthusiasm for AI and a strong Nasdaq fed into Australian growth stocks.

This lifted the sector even as higher interest rates threatened valuations.

At the other end of the market, Utilities was the worst sector so far this week.

It fell more than 4% as the prospect of another RBA rate rise made dividend-paying utilities less attractive relative to cash and bonds.

Investors also rotated toward growth stocks as market sentiment improved.

Communication Services was the second-worst sector, dropping more than 2% as pressure on its major names increased, with Telstra facing renewed scrutiny over its emergency call network this week.

Energy rounded out the worst performers this week, falling more than 1% as oil retreated on hopes of progress in Middle East diplomacy.

This led to reduced earnings outlooks for producers such as Woodside and Santos.

Best and worst stocks

Ramelius Resources led the ASX Top 100 this week. It climbed more than 10% as its new production outlook put FY30 gold output at 560000 to 610000 ounces, about 11% above its previous plan.

Washington H. Soul Pattinson followed, rising more than 7% as its full-year results showed higher investment cash flow and a larger fully franked dividend after the Brickworks merger.

Cochlear rounded out the leading performers, gaining more than 6% as buyers continued to drive the reversal after the stock suffered one of its worst falls in history.

At the other end, Telix Pharmaceuticals was the weakest performer, falling more than 11%. Investors sold the stock after its proposed ITM merger raised concerns about the deal's cost and dilution from issuing new shares.

Xero followed, falling more than 5% as investors weighed weaker margins and Melio integration costs against high growth expectations, with elevated rates adding pressure on the valuation.

Origin Energy rounded out the worst performers, falling more than 5%, with its fall coinciding with oil retreating below US$100 and weakness across energy and utility shares.

All Ordinaries Index update

The sellers regained control of the All Ordinaries Index this week. After a promising start, the index fell more than 1% on Thursday, closing around 0.3% lower so far this week.

However, what caught my attention was where buyers stepped in during the sell-off.

Last week, the All Ords fell to 8835 points before buyers turned it around and pushed the index into positive territory.

That reversal came on weekly volume of just under 11 billion.

Since 2000, volume has reached roughly that level on four other occasions: shortly after the GFC low, near the March 2011 peak, at the COVID low, and around the March 2026 tariff sell-off low.

These led to significant moves, though not always in the same direction. That makes this Thursday's price action especially interesting: buyers returned at 8837 points, almost exactly where they defended the market last week.

Does that mean a major rally is coming? It's too early to tell, but if the All Ords keeps holding around 8835, the case for a rebound gets stronger. After such an unusually high-volume week, I'll be watching this level closely.

Australians love a credit card. In fact, there are 14.9 million of them currently in circulation, according to the latest Reserve Bank figures.

While credit cards can be a convenient payment and budgeting tool, they can also be an expensive form of borrowing when fees and interest come into play.

As a whole, Australian cardholders were paying interest on $21.4 billion worth of credit and charge card debt in July, Reserve Bank data shows.

Despite the prevalence of credit card debt, many cardholders will be in the dark about exactly how interest is calculated, when it applies and what they can do to avoid it.

So, whether you're considering applying for a card for the first time, or you already have one in your wallet, here's what you need to know about how credit card interest works.

1. What is the average credit card interest rate?

There's a real spectrum of credit card interest rates.

The average credit card rate was sitting at 18.67% p.a. in July, according to an analysis of Reserve Bank data by financial comparison website money.com.au.

The reality is that interest rates vary depending on the type of credit card in question though.

Low rate cards, for instance, typically come with interest rates in the 10% p.a. to 15% p.a. range, while premium and rewards cards generally have rates in the 19% p.a. to 24% p.a. range.

2. Why do credit cards have more than one interest rate?

When most people think about the interest rate on a credit card, they'll be thinking about the purchase rate: the rate for everyday purchases made on the card.

But it's unlikely to be the only rate attached to a card. Cash advances, for one, generally have a separate interest rate that is higher than the purchase rate.

Special rates also apply to balances transfers (debt moved from an existing card to a new card).

Balance transfers usually come with no or very-low introductory rates for a set period (e.g. 12 months), before reverting to the card's purchase or cash advance rate.

3. How is credit card interest actually calculated?

The way that credit card interest is calculated differs between card providers. Many calculate it daily.

To do this, the annual purchase rate (divided by 365) will be applied to the outstanding balance at the end of each day, then those daily interest charges will be tallied across the statement period.

As a simple example, let's say you made a $750 purchase on the first day of a 30-day statement period on a credit that has a purchase rate of 13% p.a.

If your outstanding balance stayed at $750 for the entirety of the statement period, interest would be applied each day at a rate of 0.0356%.

That would work out at 27 cents in interest per day, or around $8 over the 30 days.

4. When does credit card interest kick in?

When it comes to credit card interest, one factor matters more than almost any other: whether you pay your statement balance in full by the due date.

If you don't pay off your balance, that's when interest often kicks in. But exactly when that happens depends on your card.

Credit cards run on statement periods. These are usually around 30 days during which time your card activity is compiled before a statement is issued detailing what you spent, what you owe and when it needs to be paid.

If your card offers interest-free days (more on these below), you'll generally avoid interest on purchases if you pay off the full statement balance by the due date specified on the statement.

If you don't pay that balance in full, you will lose the benefit of interest-free days. If that happens, interest will be charged on the remaining balance and may also apply straight away to any new purchases you make.

5. How do interest-free days work?

Most cards in Australia come with interest-free days: a feature which rewards cardholders who consistently clear their statement balances with more time to pay off their debt.

Interest-free periods generally range from 44 to 55 days. But that also includes the statement period. For a card with 55 interest-free days, that would equate to 25 days beyond the typical 30-day statement period.

There's an important caveat though. Most card providers specify that the interest-free period is 'up to' a specific number of days.

So, a purchase made on the first day of a statement period may be eligible for the full 55 interest-free days, but one made later in the month would be receive fewer days.

While interest-free days may be simple to keep if you pay off your balance in full each month, how can regain them once you lose them?

To get them back right away you'll need to pay off the entire card balance. To get them back from the start of the next statement period you'll need to fully pay off the previous statement balance.

6. Can you avoid interest by making the minimum repayment?

Depending on your bank or card provider, your credit card statement will outline a few different repayment options.

One is to pay off your statement balance in full. Another is to make the minimum repayment amount, which is necessary to avoid fees and keep using your card.

Your minimum payment will depend on your balance and card provider. American Express, for one, charges 2.5% of your closing balance or $30 (whichever is greater), while Westpac charges 2% of your closing balance or $10.

If you only make the minimum repayment (or anything below the full balance owing), you're likely to lose your interest-free days and you may start to accrue interest on your outstanding balance as well as new purchases going forward.

7. Which credit card purchases attract interest immediately?

While eligible everyday purchases won't attract interest straight away, there are some transactions that will.

Cash advances, for one, start accruing interest immediately because there's no interest-free period associated with them.

Cardholders may assume that this only includes cash that is withdrawn from an ATM or over the counter using a credit card, but that's not the case.

Some credit card providers have broader definitions of cash advances. CommBank, for instance, considers gambling, money transfers and travellers' cheques to be types of cash advances.

8. How to avoid paying credit card interest

The easiest way to avoid paying interest on your credit card payments is to pay off your entire balance each statement period.

It could even be worth doing away with a credit card altogether and opting for another payment option like a debit card instead.

That can be easier said than done though. For cardholders who do regularly accrue interest on their credit card debt, ASIC's Moneysmart has a few suggestions.

• Assess your budget to find areas that you can cut back to reduce your credit card spending or dedicate more money to your debt 
• Ask your card provider to lower your credit limit to reduce the temptation of spending more
• See if you can make the switch to a low rate credit card if you're regularly carrying a balance
• Look into balance transfer offers or personal loans which may be able to help you pay off existing debt at a lower rate

For further strategies on dealing with debt, check out Money's piece on what to do if your debt is getting out of control.

Now that I've got a decent chunk of money invested into a select few exchange traded funds (ETFs), I've realised I'm just getting into the hardest part of this journey.

You see, I thought after I'd done the mental gymnastics of choosing my investments, it would all be smooth sailing and I could just sit back and watch my (virtual) money (hopefully) grow.

But I've now realised this process is a little more emotional than I expected.

The morning after: am I checking my portfolio too often?

I found myself checking my portfolio every few days, mostly out of curiosity rather than anxiety, which I reasoned was probably what most sane people would be doing.

But I'd be lying if I said I felt completely indifferent.

I'll admit, seeing more red than green in my portfolio raised my heart rate a smidge... Imagine how I'd feel about the daily fluctuations if this were my own hard-earned cash!

It's funny how quickly your brain starts playing games with you.

When my portfolio was in the green, I found myself feeling surprisingly smug, but the moment one of my assets dropped into the red?

My brain immediately scrambled to find a logical justification - anything to avoid admitting I might've picked a dud.

What surprised me most about investing

Another thing to combat is the head noise. The investment world is loud, and almost everyone has an opinion on what you should or shouldn't invest in.

You're hit with endless information online, conflicting expert opinions, unsolicited advice from mates, and drama-filled headlines designed to incite panic.

I'm an over-thinker at the best of times, so there's no way I could watch the 6pm news each night without feeling the need to tinker with my assets, buy new ones or make a rash decision to sell something that's dropping in value.

Reminding myself how little daily fluctuations matter in the long term is something I'm still working on.

Why investing can feel uncomfortable

To understand why those fluctuations make my heart race a little faster some days, I reached out to psychologist and behavioural economist Phil Slade.

He told me it's totally normal to second-guess decisions, like wondering if you chose the right ETF, so long as you avoid taking things personally.

"When we own something, even notionally, our brain just treats it as ours and we want to avoid the pain that's attached to loss. We over-index pain over gain," explained Slade.

Much of the discomfort felt from a loss is due to emotional attachment, so treating your investments as a separate entity - or someone else's money - is a tactic Slade says will help reduce irrational reactions to negative market changes.

"You need to consciously not think that they're your shares. They're just shares that you currently own.

"You can try to reduce the ownership over it and depersonalise it as much as you can."

This relates directly to loss aversion.

As humans, we're wired to avoid pain, which is why losing money stings far more than making an equivalent amount feels rewarding.

"Often in order to have the equal amount of feeling good at a gain, you need twice as much good. So $100 will feel as equally good as what losing $50 would feel (at a loss)."

The beginner mistakes I nearly made

There are a few classic pitfalls that first-time ETF investors fall for, and one of the biggest involves people treating it like a quick trade, according to eToro's lead analyst Josh Gilbert.

And while this isn't such an issue for me, getting guidance from the wrong people might be.

After revealing my latest investment - a cool $10,000 in State Street's SPDR Gold ETF (GLD.RTH) - was inspired by a social media influencer, Gilbert offered some sobering advice.

"Social media has become a huge tool for investors to get market news and information, but it shouldn't be your only source of guidance," he said.

"There's no problem with using social media for inspiration, but it shouldn't be seen as advice. Do your own research, understand what you're buying and look for trusted sources."

I wish I could blame it on the virtual money mentality but truth be told, gold really did seem like a good idea!

Of course, right after I bought it, gold dipped slightly but looking at the fund's long-term performance, I'm not worried.

Where my portfolio stands today

I'm glad to report that since my initial $15,000 investment into the SPDR S&P 500 (SPY) and Apple (AAPL), plus the addition of a gold ETF ($10,000), I'm in the green!

Of my investments, Apple has been the standout performer, and the current result is an extra $730 in my account.

It's nice to see a solid increase but realistically, if this were my own money, I wouldn't have thrown $25,000 at the market right off the bat, so the return wouldn't look quite as dramatic.

What happens next?

Now that I've survived - maybe even thrived during - my first few weeks of "owning" ETFs and watching my portfolio move, it's time to get tactical.

In part three, I'll be taking a deep dive into how to compare ETFs, striking the right balance between Australian and international exposure and what fees to be aware of when you start trading.

Oh and I think it's time to spend - er, I mean invest - some more money. After all, I've got $75,000 still sitting there, so I might as well put it to work.

Now to figure out where...

Next in Diary of an ETF Beginner: In part three, I'll compare ETFs and decode the fees. Plus, I still have $75,000 left to invest. Let me know in the comments what I should invest in next. Or catch up on part 1. 

1. Half of young Aussies still can't afford to leave home

Half of Australians aged 18 to 29 are still living with their parents, according to the latest HILDA (Household, Income and Labour Dynamics in Australia) survey.

The findings paint a bleak picture of household finances, with wages failing to keep pace with rising prices and housing costs that have surged since 2021.

Across mainland capital cities, 36% of renters and 30% of mortgage holders are now officially in housing stress - spending more than 30% of their disposable income on shelter.

And the financial squeeze doesn't end with rent. The survey of more than 17,000 Australians also found:

• More than one in six Australians struggled to put food on the table in 2024.
• 50% of workers feel overeducated for their current job, trapping them in roles that don't reflect their skills.
• Almost 12% fell victim to cybercrime, with half losing money.

The one silver lining? Australians rated their relationship satisfaction at 4.3 out of 5, suggesting personal relationships remain resilient despite mounting financial pressure.

2. Why diesel could hit $4 a litre

Aussie drivers may feel ripples from Washington DC in their fuel tanks next month.

US President Donald Trump says he is considering a ban on exports of diesel from the US in an attempt to keep domestic fuel prices in check.

"I've said let's not send out the diesel," Trump said while in New York for the UN General Assembly.

"We make a lot of diesel. It could have a little bit of an effect on regular automobile gasoline because when you do that, you know, it's a sort of a flow. It's a balance."

If that happens, some experts warn local diesel prices could surge to around $4 per litre, roughly double what they were 12 months ago.

Australians could be particularly exposed because we consume more diesel per person than any other developed nation.

Relatively long distances between cities, a preference for large cars, and the commercial success of diesel vehicles such as the best-selling Ford Ranger and Toyota HiLux mean Australia is the largest importer of diesel in the world.

3. Why your grocery bill just jumped 7%

Your grocery bill is climbing again, and strawberries are one of the biggest reasons why.

CHOICE found the cost of a basket of everyday essentials jumped 7% in just six months, adding about $145 a year to the cost of a typical weekly shop.

"Australians continue to express concern about the cost of food and groceries," says CHOICE's Erin Barton.

The findings reflect what many shoppers are already feeling at the checkout.

A June 2026 CHOICE survey found 82% of Australians cited grocery costs as a major source of household budget pressure.

Prices in its base basket of eight staple items (apples, bananas, strawberries, potatoes, avocado, milk, basmati rice and beef mince) rose by an average of $2.79, or 7%, since March 2026.

"Since we last surveyed in March, military action in the Middle East has led to spikes in fuel prices, which may have had a knock-on effect on prices," the report says.

The biggest contributor was strawberries, which accounted for around half the increase. Higher prices for beef mince, milk and avocados also pushed the basket higher, while apples and rice became cheaper.

The survey also found that your state matters, but not as much as where you shop.

Aldi, Coles and Woolworths prices were relatively consistent across Australia, with only small differences driven mainly by fresh produce.

IGA showed the biggest variation, with Tasmanian shoppers paying an average of $13.42 more than Victorians for the same basket, largely due to higher prices for fruit, vegetables and chicken.

4. Australia's cheapest new car is now an EV

The cheapest car in Australia is now electric, after BYD slashed the price of its Atto 1 Essential to $19,990 drive-away.

Just 15 years ago, a basic EV cost around three times as much as a comparable petrol car.

Now, intense competition from Chinese manufacturers has turned the market on its head.

Popular alternatives such as the Toyota Yaris and Mazda2 cost more than $30,000 drive-away.

Australians are embracing electric vehicles in record numbers, and EV sales overtook petrol and diesel vehicle sales last month.

BYD has rocketed up the sales charts to second place, only behind Toyota.

Electric Vehicle Council CEO Julie Delvecchio said it marked a "structural shift underway in the Australian car market".

5. Could becoming a 'girl dad' make someone a better boss?

A major Danish study tracking workers, managers and companies over 25 years suggests the answer may be yes.

The research, published in the Review of Economic Studies journal, found that women's earnings rose 4.4% and female employment increased 2.9% after a manager had his first daughter.

The biggest changes came through hiring and promotions, with managers becoming more likely to back qualified women for jobs and senior roles.

The effect appeared almost immediately after the daughter was born and lasted for years. Having a son had no comparable impact.

There was no downside for the business, either.

Sales, productivity, and overall firm performance remained largely unchanged, suggesting managers chose equally qualified women over equally qualified men rather than lowering standards.

Fund managers are a competitive bunch, so you don't often see them in the same room. After all, it might mean letting slip a great idea they don't want to give away.

Finance website LiveWire corralled some of Australia's best into the Art Gallery of NSW this week for a live audience of over 300 people.

The presenters manage billions for everyday Australians. Some of that money might even be yours.

Funds management is never an easy job, but especially now.

Rate hikes are hitting consumers and rattling property, inflation is pressuring bond markets and oil lurks dangerously around US$100 a barrel.

There were five key takeaways for you and me.

1. Don't look to the banks for capital growth... and watch out CBA

The economic backdrop is turning against the banks.

Property is falling, mortgage rates are rising, and credit growth is now going backwards. That puts pressure on bank earnings from multiple directions.

No one made a contrarian case to hold or buy them.

Last year CBA reached a valuation that made it the most expensive bank in the world.

Value investor Dougal Maple-Brown said it has a long way to deflate.

If Maple-Brown's view proves correct, CBA's share price could ultimately fall by as much as 50% from its peak. It would only need to trade at the same price-to-earnings ratio as the other big three banks to get there.

It could even get worse.

The firm's exposure to banks is at its lowest level in 40 years.

This is a major issue for many Australians because Bell Potter data shows financials are still the biggest holdings for most.

2. Property to stay under pressure as the Aussie consumer gets squeezed

If you have a contrarian streak, now might not be the time to let it out when it comes to Aussie property or derivatives of it, like the retail and building sectors.

Damien Boey of Wilson Asset Management warned the real estate slide is eroding Australia's financial buffers. James Hawkins of L1 Capital said the state of property is "much worse" than people think.

There is also the issue of the RBA rate-hiking cycle, which may not be done until mid 2027.

There's no potential relief in sight here for quite some time.

3. AI is a 'boom, not a bubble'

If there was one man who electrified the room, it was Nick Griffin of global investment firm Munro Partners.

He brings one unshakeable conviction to everything: AI is the transformative shift of the next decade.

You and I "are going to have to deal with it" in one way or another. That's because the capital expenditure happening here is "getting into everything".

That's not all. You, me and everyone else are now going to Claude and ChatGPT directly, and bypassing the old platforms, weakening business models as we go.

You will empower AI agents with this shift. As a consequence, as a group, we're ramping up compute demands on the global AI infrastructure, measured in token use, which is going parabolic.

Griffin's view is that even this is probably only about 5% of what the world will eventually use as AI encroaches into every industry. You already know the beneficiaries: semiconductors, the cloud, power and cooling.

He adds that this trade is not over. The hyperscalers are generating the revenues to justify the gigantic buildout. The demand for AI is essentially infinite at this point.

Hence the upcoming blockbuster IPO of Firmus on the ASX. It's also why, in Australia, "resources outperform banks".

4. A new resource boom not dependent on China

Even if AI demand wasn't going parabolic, resources would offer a compelling proposition.

More than a decade of underinvestment is colliding with rising demand from deglobalisation, decarbonisation and defence spending.

The voice of experience came out here, with 40-year veteran Daniel Sullivan saying the outlook was "phenomenally positive".

He lived and invested through the China boom, and is seeing the same signals.

The bottleneck this time? Critical minerals.

Ben Griffiths argues Australia is on the verge of an enormous gas boom to feed the rapidly growing electricity demand.

The natural resources sector is one of the few parts of the market that can bypass Australia's domestic economy and tap into the powerful global forces building now.

5. Farming cows in the 21^st century, and more like it

Blackbird Ventures is a venture capital firm that takes specialised bets in high-risk areas.

One was a $3 million initial investment into Canva. You might know it. Canva turned into a billion-dollar unicorn.

Blackbird Partner Samantha Wong talked about another success: a company called Halter.

They built a collar for dairy cows. It runs on solar and AI to do the work of a 19th-century cowboy.

Sound fantastical? It began that way.

Her point: new business can come from unexpected combinations and it may not be obvious that it's going to work for a long time.

Both Canva and Halter remained uncertain prospects that, in hindsight, can get forgotten.

The biggest returns, however, will always come from new ideas that break open new markets.

Don't give up on them too soon.

Another interest rate hike could be just around the corner, and many Australians are feeling the strain.

With all four major banks expecting the Reserve Bank to lift the cash rate to 4.6% on September 29, and some economists predicting further increases, borrowers are once again facing uncertainty about their finances.

For many, the challenge is not simply higher repayments.

It's also the mental burden that comes with trying to make sense of competing advice, economic forecasts and financial decisions at a time when household budgets are already under pressure.

We hear from a growing number of people who feel overwhelmed by information and paralysed by choice.

As anxiety rises, clear thinking can become harder, increasing the risk of poor decisions at precisely the moment confidence is needed most.

Why money uncertainty drains your mental energy

Paralysed as they attempt to analyse information, they don't feel as if they completely understand, and they're unable to think clearly in the dizzying noise of choice.

Anxiety is on the rise, interrupting sleep and consuming cognitive energy.

The reason we experience anxiety is to heighten awareness of potential danger and ready us for action - to do something.

If we don't know what the best thing "to do" is, our anxiety persists and we become paralysed by fear, particularly the fear of making the wrong choice.

Starting out as concern, it quickly escalates to a state of apprehension and worry.

You learn as much as you can, but if this takes too long, you get exhausted and move into the overwhelmed state, getting lost in the sea of new and complex information.

This leads to the highest level of anxiety - panic, where you tend to lose any rational control over your actions.

Anxiety is an emotion that needs to be released by action, so when you become paralysed by choice and fear your instinctive brain takes over, making all sorts of illogical and counter-productive decisions.

In this state we often take our cues from what other people are doing. They are also often acting from their survival instinct.

The power of the herd is strong when we don't know what to do. Think of a run on the banks, wild stockmarket fluctuations and panic buying during the pandemic.

What anxiety does to your decision-making

Physiologically, when you feel anxious, the stress hormones in your stomach stimulate "butterflies" and can make you feel sick.

It indicates something in the environment is wrong, different or new.

Blood is directed away from your hands and feet, making them clammy and sweaty as your heart works hard to pump blood to arms and leg muscles ready for escape.

Sustained stress often tires your limbs due to over-stimulation, making you feel lethargic and exhausted.

Anxiety does not discriminate between different types of change and uncertainty.

So, when you feel you are starting to become paralysed by analysis and panicking about what to do, remember that uncertainty is uncomfortable, but it is also temporary.

You will be okay.

Take a breath, have a break and keep reminding yourself that the answer will reveal itself eventually with time and focus.

Three ways to stop overthinking and take control

1. Create time and space

I have been in many negotiations where we've requested an overnight break.

Not feeling rushed reduces the sense of immediate threat and allows for more cognitive energy to be spent solving the problem at hand.

2. Rename and reframe the emotion

This is an old trick that comes from sports psychology.

When you feel the butterflies of nervousness and stress, tell yourself that you are actually excited and full of anticipation about the challenge ahead.

Nervousness and anticipation look exactly the same in the brain, so simply reframing what the feeling means can have a huge impact on your performance, energy and attitude.

3. Externalise the subject matter

Think of the issue as someone else's problem that you are advising on.

This allows you to reduce the level of personal threat and better consider new or creative solutions.

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One of the unexpected joys of being a father to two boys in their early twenties is stepping into the role of lead negotiator when a car needs to be purchased. It is enormously entertaining.

The modern car dealership is a living laboratory of behavioural economics.

It is a carefully engineered environment of polished floors, flattering lighting, warm coffee aromas and strategically placed price tags designed to stretch your expectations before you have even opened your wallet.

For someone who has spent a lifetime studying decision-making, it feels less like shopping and more like field research.

The moment I knew we had to be prepared to walk away

After a particularly enthusiastic Queensland hailstorm turned my son's beloved Mazda into something resembling a prop from an action film, we found ourselves in a dealership on a bright Saturday afternoon.

He had already found a near identical replacement, just a few years younger and with far fewer kilometres. He was in love.

From my perspective, this was a liability.

The first rule of negotiation is simple. You must be able to walk away. Salespeople can detect emotional attachment the way sharks detect blood.

The dealership trick that made expensive cars seem normal

Before we even met our opponent, the environment went to work. We were invited to wait in an exceptionally comfortable lounge directly opposite a curated display of their most expensive vehicles.

Prices glowed from digital screens in a way designed to recalibrate your sense of normal. This is anchoring at its finest.

If you first see six-figure numbers, five figures start to feel modest. It is clever, subtle and entirely intentional.

Then our salesman approached. Young. Slightly ill-fitted suit. Fresh from what I imagine was an intensive course titled Advanced Techniques in Persuasion and Complimentary Coffee Distribution.

Perfect. Let the games begin.

My son's biggest negotiation mistake happened before we started

The test drive was designed to trigger attachment.

He wanted us to fall in love with the vehicle.

So we did the opposite. We pointed out every rattle, every scratch, every slightly questionable sound.

Not because we disliked the car, but because we needed to signal detachment. Desire weakens your bargaining position. Visible indifference strengthens it.

The free coffee wasn't really free

Throughout the process he offered us coffee, cake, pens and various small tokens of hospitality.

This was reciprocity bias at work. When someone gives us something, however small, we feel an unconscious pull to return the favour.

We politely declined. Not because we do not enjoy coffee, but because we did not wish to feel even microscopically indebted over several thousand dollars.

The surprisingly powerful trick behind a handwritten price

Then came the ceremonial writing of numbers on paper. It was a fascinating ritual.

His handwriting suggested he had lived most of his life in the presence of a keyboard, yet he persisted because most sales training states that the act of physically writing numbers creates a sense of weight and seriousness.

Why my first offer made the salesperson squirm

We responded with an offer that was uncomfortably low. Not insulting. Not absurd. Just low enough to make him shift in his seat.

I have always told my boys that your first offer should cause mild discomfort. That is how you locate the true negotiating range.

The theatre intensified when he disappeared to speak to his manager.

We knew this meant either a bathroom break or a chocolate biscuit.

Upon his return to let us know our offer was too low, I excused myself to call my wife about whether we should exceed our planned budget.

In reality, that involved a very passionate discussion about dinner plans. Staying visible but out of hearing range, frowning thoughtfully, signalling reluctance. Negotiation is as much performance as mathematics.

After several rounds of this polite choreography and three separate attempts to stand up and leave, he returned with the news that our price had been accepted.

It was significantly below the asking figure.

When we finally left the dealership with the signed contract, there was much joy and high-fiving.

Not because we had won something grand, but because the process had worked exactly as behavioural economics predicts it will.

What every car buyer can learn from this experience

What does this teach us about negotiation?

First, environments matter.

Anchors influence expectations long before numbers are discussed.

Second, emotion is leverage. If you fall in love, you cede power.

Third, reciprocity, scarcity and authority cues are not abstract theories found in textbooks. They are active forces shaping actual decisions in real time.

Finally, the ability to walk away is not just strategic theatre. It is psychological armour.

From a behavioural economist's perspective, negotiating the buy price of a car is less about clever lines and more about understanding impulses. Sales systems are designed to trigger them.

Good negotiators notice them. Great negotiators regulate them. When you can separate desire from decision, pause before reacting and remain detached from the outcome, you move from being steered by the process to steering it yourself.

And that, as it turns out, is a lesson far more valuable than a slightly discounted Mazda.

The risks of switching your super out of a highly regulated super fund were highlighted this year when it became apparent that more than 11,000 people had lost more than $1 billion in retirement savings in two managed investment schemes, Shield and First Guardian, when they collapsed.

Members were persuaded to switch out of their super funds with promises of high returns after responding to social media ads offering free super health checks.

The 'lead generators' then sold their contact details to third parties, such as financial advisers, who convinced them to switch to those schemes.

A recent national survey conducted by Super Consumers Australia shows that while engagement in super is rising, confidence is not: 70% of Australians check their super but only 50% feel confident making decisions about it.

Too many super fund members are left to work things out on their own when it comes to making decisions about their super - and the stakes are high.

A shadow shop undertaken by Super Consumers on super fund call centres came with staggering results. It recently tested customer service across super fund call centres and found them badly wanting.

The consumer organisation is now calling for mandatory customer services standards after its study of 20 major super funds call centres gave the industry a failing grade.

"People don't just need a healthy super balance to have a dignified retirement. They need to know their fund will pick up the phone when they're grieving, need to access their money or ask a simple question, and help them," says Super Consumer's CEO, Xavier O'Halloran.

Our $4.5 trillion super system is widely admired around the world. It has invaluable consumer protection but gaps, that need urgent addressing, remain, especially for those in retirement. 

The benefits of oversight 

Many people fail to choose an investment product when they join a super fund and consequently land up in its default option, known as MySuper.

Thanks to government oversight, it is a simple, low-cost, easy-to-compare option. Its features and investment returns are displayed on each fund's 'dashboard'.

MySuper funds are either a diversified balanced option or a lifecycle option.

Importantly, all MySuper products are subject to an annual performance test conducted by the Australian Prudential Regulation Authority.

Funds that fail the test must inform their members.

If it happens repeatedly, they must close the option to new members.

This has weeded out underperforming funds and forced fees down.

And consumers can easily check to see whether they are in a top performing MySuper product by using the ATO's MySuper comparison tool. It ranks MySuper products by performance and fees.

These measures have provided consumers with solid long-term returns.

"The Australian superannuation system is admired around the world because it is mostly designed to deliver good outcomes regardless of your level of knowledge or engagement with it," says O'Halloran.

"People are defaulted into investment options that are tested to make sure they're delivering good returns.

"People who are working and invested in a MySuper product would have seen their investments grow by 7% to 8% every year on average over the past decade. That is a positive outcome, which will see people more financially secure in retirement."

Retirees left out in the cold 

However, O'Halloran says there are gaps in the safeguards when it comes to people moving into pension phase.

A fund member can move from an accumulation product into an almost identical retirement product and lose the protection of the performance test.

"All these protections to ensure good outcomes disappear when people hit retirement age. There is no independent performance test or comparison tool and no basic products or pathways to help people manage their super in retirement.

"Our analysis found that a typical person could be up $205,000 worse off in retirement if they are stuck in one of the worst performing investments. But right now, there are no protections to drive funds to be better or to even warn people in poorly performing investments."

He says 74% of Australians support extending the performance test to retirement products, and an even larger 84% call for greater transparency so retirees can compare how their fund performs (Securing Australia's Retirement report, 2025). This leaves consumers vulnerable at a critical point.

Social media's role in switching

O'Halloran says social media increases the risk of harm because it lets operators reach huge numbers of people cheaply and quickly.

"This playbook is directly linked to the collapse of the Shield and First Guardian Master Funds.

"Lead generators often use social media ads, usually framed as free super health checks, to harvest personal details.

"They can't legally sell a product themselves, so they hand the 'warmed up' lead to a licensed adviser, sidestepping the anti-hawking rules meant to prevent cold-call selling.

"These pitches routinely promise life-changing returns with no apparent risk, then leave the person facing steep fees for advice that is not suitable for them."

O'Halloran says ASIC's evidence to Parliament in May this year put a number on the scale of the problem: more than $100 million spent by First Guardian and related funds on lead generators.

"This is money ultimately funded by the retirement savings being funnelled through them."

What to do before switching 

Compare products first, he says. "For people who are still working, the YourSuper tool compares investment options by fees and performance.

It's much harder when it comes to retirement investment options.

"People planning to retire should first figure out how much they need to cover living expenses once they retire and then, whether their super and other sources, like the age pension, will provide enough income to cover those expenses."

He also recommends the Moneysmart website to take the hard work out of these calculations.

"Now you can start to optimise by finding a fund with a long track record of good returns and low fees.

"Some super funds also offer products that help deliver you a stable income, so you don't need to worry as much about what is happening on the sharemarket when you're thinking about what you can buy at the supermarket."

Avoid the shonks 

"There are unscrupulous people looking to take advantage of people who are not sure what to do with their super. Here are tips to avoid them:

• Treat any unsolicited call or 'free super check' ad, especially on social media, with scepticism. Genuine advisers don't typically need to fish for clients this way.
• High-pressure, time-limited offers, and promises of guaranteed high returns or 'no downside' are red flags regardless of how professional the pitch sounds.
• Check credentials on the financial advisers register before handing over personal details or signing anything.
• Ask upfront about switching costs.
• If you feel uncomfortable at any point, just hang up!"

Reader question

Hi Paul,

How should I think about superannuation non-concessional contributions?

I'm 55 and my wife is 53. I'm looking to retire in five years' time, but my wife loves her job and will stay in the workforce longer. My knees are wearing out so I can't do that.

I think we're preparing well. I have $800,000 in super and, because of staying home with the kids, my wife has about $200,000. We have binding nominations pointing at each other.

We also have a share portfolio of ETFs worth $400,000 returning about a 4% yield, but no investment property.

My goal has always been to try and save so that we wouldn't be a burden on the taxpayer in retirement.

We're maxing out our concessional contributions, but should I consider shifting some of our share portfolio into super via non-concessional contributions to simplify our pension-phase retirement income?

And if so, whose super do I top up? My wife's balance because it's lower, or mine because I'm going to be retiring earlier?

Or would it be better to leave our ETFs compounding through dividend reinvesting?

Should I factor in the government's proposed minimum CGT tax of 30% and get out of share investing now? Or is that kind of speculation useless because who knows, maybe the government will go after my super next?

It sure is hard to know what to do. - Garry

Paul's response

You'll get no argument from me, Garry.

With the situation in the Middle East and the war in Ukraine, rapid rises and falls in the oil price, and changing tax policies in Australia, investing is not simple.

But we need to battle on and try to control what we can control.

There is no argument that those who save and invest sensibly will benefit. Your pool of savings is impressive. I agree with you, you are preparing well, and your savings pot will continue to grow over your next five years of work.

In a real sense, you've already done most of the hard work.

With a combined $1 million in super and ETFs worth $400,000, you already have a pool of money that should comfortably deliver around $60,000 a year. Based on long-term historical returns, your capital should also continue to grow broadly in line with inflation.

Geopolitics, uncertainty and changing government tax policy are hindrances, but you can't do anything about them. The important thing is that you have built a sizeable capital base.

Personally, I'd be looking to top up your super as much as you can.

You're already maximising concessional contributions, which means around $32,500 each this financial year. What a great start.

As your balances are well below the $2.1 million threshold, you and your wife could each contribute up to $130,000 a year as non-concessional contributions. Depending on eligibility, you may also be able to trigger the bring-forward rule and contribute up to $390,000 each.

You'll need to talk to your super fund, accountant or financial adviser before making any decisions. There is a lot more personal information required before anyone can provide more than general guidance.

That said, I think there is an important general principle here.

Depending on your personal tax rates, the potential capital gains tax implications of selling ETFs, and your broader financial situation, I generally prefer money inside super.

During the accumulation phase, earnings within super are typically taxed at 15%.

Once you move to pension phase, provided you have reached preservation age and satisfied a condition of release, earnings on assets supporting a retirement-phase pension can be tax free, subject to the relevant transfer balance cap rules.

For investors, that can be a very attractive environment.

I would encourage you to speak with your fund's member advice service or seek personal financial advice.

There may be factors specific to your circumstances that make maximising super less suitable than it appears at first glance.

In an increasingly complex world, I tend to favour simplicity. A large, low-cost super fund can often provide exactly that.

Seek advice, work through the numbers, and go from there.

Research over the years from Moneysmart and Finder has put the average amount individual Aussies spend on Christmas each year between $800 and $1360.

This year will likely be no different, with a Finder survey of 1000 people in August finding 16% were already putting money aside for the silly season.

Experts say these thrifty types are on the right track, as making difficult decisions and getting a plan in place early can help keep expenses in check.

Here are the money moves you should be making in the remaining months of 2026 to make sure Christmas doesn't blow your budget.

1. Stress-test traditions

Hoping to spend less on this Christmas than last year?

Finder personal finance expert Sarah Megginson says the three months until December 25 makes now the ideal time to have conversations with friends and family about how you could make savings.

"Stress test [your traditions] a little bit to see if there's any room to do things differently," she suggests.

"You can have these conversations now with a little bit less pressure and just float suggestions of how things could look a little bit different [this year], so that you're doing Christmas in an affordable way".

In other words, if you're hoping to cut back on gifts or trips away, now is the time to set expectations and get everyone you're celebrating with on the same page.

2. Start putting money aside now

Come up with a budget, including things like a gift list of everyone you want to buy for, as well as any other expenses you're anticipating such as food, drink and travel.

Then start putting money aside in small amounts to build up your yuletide war chest.

Stashing funds in a savings account is one way to do this, but Megginson warns this can make it too easy to dip into your budget to cover other costs.

For those wanting to be delivered from such temptation, she recommends converting your Christmas budget into assets slightly less liquid.

"[When you go shopping] just grab a gift card and set it aside in a drawer or cupboard somewhere and keep adding more cards every week or two," she explains.

"It's harder for you to dip in and start using your own gift cards... [so] by the time Christmas rolls around, you're going to have this little collection".

You can then redeem these cards on Christmas groceries or add them to other small items to build a gift pack for a loved one.

3. Think about fuel

Fuel prices have rarely been out of the news this year.

With petrol well over $2 a litre in many areas and diesel more expensive again, this is an extra cost primed to hit just as your Christmas holiday gets underway.

So it pays to get familiar now with how you can spend less at the bowser, before a servo bill puts a sour note on the season.

Caring for your car and being mindful of how you drive are big ones, but so is shopping around.

Even as prices increase, there can be differences as large as 20 cents per litre between competing petrol stations in the same area.

Luckily, there are dozens of free apps and websites you can use to find the cheapest prices near where you are now and where you'll be travelling over Christmas.

4. Take advantage of the Black Friday sales

This relatively new retail tradition falling in late November is a well-timed opportunity to buy Christmas presents at a discount.

"If you're not using Black Friday to shop for Christmas, then you are missing out on a huge opportunity," says Sarah Megginson from Finder.

"Lots of brands and retailers save their best deals for Black Friday."

Black Friday is the last Friday in November - in 2026, that will be the 27th, but many brands start their sales earlier.

Keep an eye on your favourite products and retailers from mid-October to catch the discounts as they drop.

5. Share the load

Planning on hosting family or friends for lunch or dinner this year, but dreading getting stuck with all the work? It's a good idea to reach out and work on a plan to split the load.

Divide up responsibilities for the meal, so that each person or household brings a specified plate or course.

The same concept can work for gift giving - try a Secret Santa arrangement with a set budget.

With this, each guest is allotted one other person they have to buy a gift for and enjoys the savings from not having to buy items for everyone attending your party.

Few stories capture the challenges of long-term investing quite like Homer's The Odyssey.

In Homer's tale, it takes Odysseus 10 years to make it back to his homeland after the Trojan War. Seven of those years are spent in the rather pleasant embrace of the immortal nymph Calypso.

Maybe we could compare those years to investing on the ASX, where time slips by, markets drift sideways, and you wonder whether you've achieved anything at all.

Everyone wants to talk about the next 10% move on the ASX. Nobody wants to talk about the next 30 years. Yet that's the journey most investors are actually taking. They're trying to get home to Ithaca.

Homer wrote about it nearly 3000 years ago. Not the sharemarket, obviously, but about the long road home, the distractions, the disasters, the lucky escapes and, above all, the importance of simply keeping going.

The Odyssey is investing? Ithaca is retirement?

Then it isn't about beating the market every year. It is about reaching financial independence. It is about arriving.

After all, The Odyssey finishes when Odysseus gets home to his wife, Penelope, his son, his dog, and, finally, his own bed.

Why staying invested beats timing the market

Homer's story begins after the Battle of Troy has been won. Now comes the difficult bit, getting home.

In investment terms, starting is easy. Staying the course for decades is the real challenge.

Poseidon and the sea are the markets. Completely indifferent to your plans.

Markets don't care about your retirement. They don't even know you exist. They simply produce storms from time to time.

Then we reach the Land of the Lotus Eaters, where complacency takes hold.

It is easy to see a modern parallel.

Global markets sit close to record highs despite higher bond yields, sticky inflation, elevated oil prices and AI valuations that are beginning to stretch credibility. It is tempting to believe everything will simply work out.

Who can blame Odysseus for being distracted by the Lotus Eaters?

Never checking your super, leaving too much money sitting in cash, or assuming someone else will take care of your retirement. Comfort is seductive. Years disappear quickly.

Odysseus eventually realises that comfort without progress is simply another form of failure.

The behavioural mistakes that cost investors money

Then come the Sirens.

The Sirens today don't sing from rocky islands, they appear on social media promising "20% annual returns". Bitcoin. Meme stocks. The latest AI darling. Every generation has its Sirens, singing songs of riches.

Everyone hears them. Many investors are tempted.

Odysseus asks his crew to tie him to the mast. He still heard the songs.

Good investors need the same discipline. Asset allocation. Position sizing. Risk management. Systems that stop emotion taking over.

The trick isn't avoiding temptation. It's surviving it.

Then come the sea monster and the whirlpools, Scylla and Charybdis.

Sometimes investing presents no good choices. Do you buy the dip? Raise cash? Hold your nerve?

Sometimes every option carries risk. Sometimes we have to choose the least bad outcome.

Investing can be the same. Sometimes success is simply losing less than you otherwise would have.

Then we meet the Cyclops.

This is hubris. The belief that every investment decision is brilliant and every success is due entirely to your own genius.

Odysseus defeats the Cyclops through guile rather than strength, but even then there is a sting in the tail.

Markets have a habit of humbling the overconfident just when they think they have everything worked out. Every bull market creates a few Cyclopes.

Then there is Circe who turns men into swine.

We have all got those stocks that have turned from a great idea into a dog or a long-term hold.

Our own investing journeys are also buffeted by the winds of behaviour. Selling winners too early. Hanging on to losers in the hope they recover.

Behaviour destroys far more wealth than markets ever do.

Why patience is every investor's superpower

Then we have Penelope.

She is a wonderful metaphor for patience. She quietly waits, weaving her tapestry while the years pass. She isn't distracted by the suitors. She plays the long game. She trusts that eventually the journey will end.

Compounding is rather like Penelope. Quiet. Unexciting. Relentless.

Along the way, Odysseus is guided by Athena, the goddess of wisdom.

Every investor needs an Athena. Not someone who predicts markets, but someone who encourages sensible decisions and filters out the noise.

Good advisers don't eliminate storms. They simply help you sail through them.

At the end of the story comes the final test. Odysseus alone can string his great bow and fire an arrow cleanly through the axe heads.

Investing is much the same. Only you can complete the journey.

Experience matters. Pure strength isn't enough. It takes knowledge, discipline and perspective to reach your destination.

Reaching your own Ithaca

By the time Odysseus reaches Ithaca, he has endured shipwrecks, storms, monsters, mutinies and painfully slow progress.

Yet through it all, he never loses sight of where he is trying to go.

This, perhaps, is the biggest lesson for investors.

Retirement isn't won by finding the next tenbagger. It is achieved by surviving long enough to arrive.

The greatest risk to an investor is rarely the market. It's abandoning the voyage.

That's a lesson Homer understood long before there were stock exchanges.

Planning a trip to Japan?

Travel Money Oz recommends budgeting 600,000 yen (JPY) per person for a multi-week, high-end holiday featuring everything from ski slopes and luxury accommodation to kabuki performances and fine dining.

At today's exchange rate, that works out to about $5355 Australian.

That's a significant saving compared with recent years. The same 600,000 yen budget would have cost Australians almost $6900 in 2023 and more than $8300 in 2019.

The savings are largely due to the Australian dollar's surge against the yen. Last month, $1 bought 114 yen, the strongest AUD/JPY exchange rate since 1990. While the rate has since eased slightly to around 112 yen, Australians still enjoy far greater spending power in Japan than they have for decades.

 

 

 

 

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Why is the yen so cheap?

These helpful exchange rates have been delivered by a significant slide in the value of the yen, but also strong performance from the AUD.

"The Australian dollar is going quite well compared to other global currencies," says Dr Rand Low, associate professor of quantitative finance at Bond University.

"And the yen is particularly weak at the moment and that's due to multiple issues," he adds.

Dr Rand says one of these issues is the Japanese government's large amount of debt - worth 204% of its GDP - but adds deeper societal problems are also to blame:

"There are a lot of concerns about [Japan's] productivity because it's got an ageing demographic," he explains.

Tom Wickenden, investment strategist for trading platform Betashares says Japan's low interest rates - around just 1% - are also driving down its currency.

"[Japan has had] really low interest rates for a very long time," he says. "That tends to see currencies depreciate against its global peers".

A boom for travel

The timing is notable given Japan's booming popularity with Australians.

A record one million Aussies visited the country in 2025, 15% more than the year before, helping push Japan into third place among Australians' favourite overseas destinations.

Anhar Khanbhai, Asia-Pacific spokeswoman for travel money platform Wise, says the low yen has been "giving the Aussie dollar extra muscle on the ground in Japan right now".

"The yen has definitely been one of the most popular currencies on Wise in recent years," she says.

Khanbhai says Wise's Aussie customers are watching the yen exchange rate closely, taking advantage of any upticks that might suddenly help their holiday budget go a bit further.

"As soon as we see the AUD strengthening against the yen, people are quickly converting and adding money, holding it and then booking their flights or accommodation".

How long will the yen stay cheap for?

Experts say Aussies should be able to enjoy a strong dollar in Japan for the next several months at least.

"It's a good time to travel to Japan for the next year, maybe until the end of next year, because basically we don't see any signs from Japan of its policies changing any time soon," says Dr Rand.

But the low value of its currency is causing issues for Japan and countries it trades with.

Tom Wickenden from Betashares says this means we shouldn't expect the yen to drop much further from where it is now.

"We have started to see some intervention, both from Japanese and US politicians, to try and stop the yen weakening too much further," he says.

"[It's] an indication of a potential ceiling on the Aussie dollar to Japanese yen exchange rate".

How is the Aussie dollar going against other currencies?

It's not just the yen: the AUD is currently performing well against many of the currencies Aussies need for overseas holidays.

"We've also seen a strong AUD to US dollar," says Anhar Khanbhai from Wise.

"People can take advantage of that in popular regions like Latin America and Africa, where operators of bucket list experiences predominantly quote in and accept only US dollars".

The AUD is also strong against the Indonesian rupiah and the New Zealand dollar, making trips to Australia's two most popular travel destinations cheaper as well.

But while the change promises savings for cardholders, it could have ripple effects beyond the checkout.

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Adele Eliseo, founder of The Champagne Mile, to explain what's changing, who's likely to benefit and why credit cardholders need to pay close attention.

Episode timestamps

00:00 Introduction

01:34 What happens to card surcharges from October?

03:42 Why are card surcharges being banned?

04:40 How much are consumers likely to save?

05:32 The impact on rewards credit cards

07:03 How banks are already changing rewards programs

08:27 What rewards card holders should do now

10:10 Conclusion

Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

Where can I listen to the podcast?

You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

Is the podcast suitable for beginners?

Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.

What topics does the podcast cover?

The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.

How often are new episodes released?

New episodes are released weekly, so you can stay up to date with the latest financial tips and trends.

Can I watch episodes with captions?

Yes, full episodes with closed captions are available on YouTube.

Why subscribe to the Friends With Money podcast?

Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

Subscribe to the Friends With Money podcast today and start learning when it suits you.

ASIC commissioner Simone Constant says the regulator is now "beyond warnings" and pushed players to assess themselves against its 10 best practice principles.

Constant says ASIC expects everyone in the investment chain - fund managers, deal underwriters and trustees right through to valuers, auditors and ratings agencies - to consistently meet their responsibilities.

Private credit has grown rapidly in recent years as investors have looked for higher returns than traditional fixed-interest investments. Private credit funds typically lend money directly to businesses and property developers rather than through traditional banks.

The recent collapse of property developer Bathla put a spotlight on risks within parts of the private credit market and prompted some investors to pull money from private credit funds.

Constant says funds that allow investors to withdraw money regularly while holding assets that can take years to sell or repay face a fundamental problem that must be resolved.

One of ASIC's key concerns is that some funds allow investors to withdraw money regularly even though the underlying loans and assets may take years to repay.

"Offering regular redemptions to investors while holding illiquid, multi-year property loans creates a fragile product design that breaks down under pressure - especially when coupled with loan "management practices" that rearrange deck chairs while the tide goes out and the boat risks running aground," she says.

She says that when property projects stall and credit vehicles freeze redemptions, the damage falls squarely on the real economy.

"Contractors and trade subcontractors are left unpaid, homebuyers face the distressing prospect of losing their deposits, and superannuation members find their retirement savings locked away. The damage also falls on investors."

The warning is particularly relevant for super fund members because many large super funds have increased their exposure to private credit in pursuit of higher returns.

Constant says ASIC is worried the sector's engagement might be "too little, too late" if participants don't move with urgency towards consistent good practice. She urged the sector to strengthen standards now before problems undermine investor confidence.

"If you are a private credit fund who hasn't assessed yourself against our 10 principles of private credit done well, ask yourselves - why not? Before your investors do," Constant says.

"The clock is ticking. Whether we see broader credit stress or not, certainly the tide is going out on poor private credit practices. The collapse of Bathla reinforces why strong governance, effective oversight, clear disclosure and accurate valuations are critical."

Another concern for ASIC is whether some funds are accurately valuing loans, particularly when borrowers are under financial pressure.

"Fund managers need to review loan portfolios and apply realistic, independent valuations," Constant says.

"Carrying distressed loans at full face value to protect management fees is unacceptable."

Constant says while the Bathla collapse is deeply concerning, for ASIC it has not been surprising.

"We've been talking about private credit for a long time now - specifically about the risks stemming from inconsistent industry standards that haven't kept pace with the growth, significance, complexity and connections of the sector," Constant says.

"What we're seeing now, as some of those weaknesses are tested at scale for the first time by current conditions, are the first significant cracks - the first stress fractures - beginning to emerge."

Constant also called on institutional investors and superannuation trustees to not accept private credit managers at face value.

"Trustees have clear statutory obligations to act in their members' best financial interests. Fulfilling that duty requires genuine, look-through due diligence," she says.

"Trustees must look past headline returns, examine the underlying collateral, verify bad-debt provisioning, and independently test manager assumptions before committing member capital."

This article first appeared on Financial Standard

The Vanguard S&P 500 ETF, better known as VOO, has become the world's largest ETF, with more than US$1 trillion invested in it.

Retail investors love it because it's cheap, simple and gives them exposure to the US's largest companies.

But that doesn't make it safe, especially as the conditions that drove the market higher start to change.

The Federal Reserve has just raised interest rates for the first time since July 2023. Bond yields are pushing towards 5%, oil is trading near US$100 a barrel and borrowing money is becoming more expensive.

The AI boom has flourished on cheap money, enormous spending and expectations of extraordinary future growth.

But higher bond yields reduce the present value of future earnings, while more expensive credit raises the cost of funding the chips, data centres and energy infrastructure needed to keep the boom going.

Some of the biggest names in AI are calling for development to slow. Whether that leads to lower spending is still unclear, but spending doesn't need to collapse for these stocks to fall.

When expectations are already high, even slightly weaker growth can trigger a major reassessment. That's the real risk for VOO investors.

The fund may hold around 500 companies, but a small group of technology giants heavily influences its performance.

If the stocks that drove the index higher begin falling together, owning the entire index may offer far less protection than many investors expect.

After the Fed's rate hike in July 2023, the S&P 500 fell about 11% to its October low. A similar correction would make 7000 points a real possibility, but history tells us the downside can be much greater.

The S&P 500 lost roughly 40% to 50% during the 1973-74 oil crisis, the technology bust and the Global Financial Crisis.

If slowing AI investment becomes the catalyst for another major crash, history suggests the index could fall towards 4000 points.

That would be very painful for retail investors who have piled into ETFs near record highs, leaving them exposed to the entire decline.

While holding through a 50% fall sounds easy in theory, it rarely feels that way when your money is disappearing.

History shows that many investors eventually crack under the pressure and sell when the damage is already done.

However, holding on presents another challenge: how long can you afford to wait?

After peaking in 2000, the S&P 500 didn't break decisively above that level until 2013. Could you afford to wait another 13 years to get your money back?

The S&P 500 doesn't have to crash, but with money becoming more expensive, oil pushing costs higher and AI expectations stretched, blindly buying the index may not be the safe strategy many investors have been led to believe.

Best and worst sectors

Health Care was the best-performing sector this week, rising more than 4% as heavyweight CSL continued its recovery, supported by renewed investor confidence and positive broker sentiment.

Communication Services gained 0.81% as investors rotated into defensive stocks, supporting heavyweight Telstra.

Consumer Discretionary rounded out the top three, up 0.40%, as bargain hunting supported retailers following the market's recent sell-off.

At the other end of the market, Materials was the worst sector, falling more than 1.5% as weaker commodity prices and profit-taking weighed on major miners.

Information Technology was the second-worst sector, also dropping more than 1.5% as rising bond yields and renewed AI concerns pressured highly valued growth stocks.

Real Estate rounded out the worst performers this week, falling more than 0.5% as higher bond yields and expectations of further interest rate rises reduced the appeal of property stocks.

Best and worst stocks

Telix Pharmaceuticals led the ASX Top 100 this week, climbing more than 11% after receiving FDA approval for its brain cancer imaging product, Pixclara.

Dyno Nobel Ltd followed, rising 6.94% as its share buyback and improving explosives earnings outlook attracted buyers.

CSL Limited rounded out the leading performers, gaining 6.26% as broker upgrades strengthened confidence in its earnings outlook.

At the other end, Mineral Resources was the weakest performer, falling more than 8% as another decline in lithium prices weighed on producer sentiment.

IGO Limited followed, also falling more than 8% as falling lithium prices renewed concerns about its earnings outlook.

NEXTDC Limited rounded out the worst performers, falling 8.29% after announcing $1.1 billion in convertible note funding, raising concerns about dilution, debt and heavy spending.

All Ordinaries Index update

The All Ordinaries has finished flat so far this week, slipping just 0.1% as indecision continued to dominate.

The recent decline in oil prices may have eased some pressure, but the index remains caught between key levels.

Support sits around 8800, while 8600 becomes the next major level to watch if sellers regain control.

Healthcare helped offset further weakness in Materials, while Financials finished relatively flat.

Materials has now declined for three consecutive weeks and is approaching its longer-term uptrend, making next week particularly important.

Strong demand linked to renewable energy and electric vehicles could attract buyers, although uncertainty surrounding the AI investment cycle may create some headwinds.

For now, this remains a stock-picker's market rather than one that favours passive investors.

If the All Ordinaries holds above 8600, the broader market can still be viewed as moving sideways.

However, a decisive break below that level could bring 8000 into focus and potentially trigger the deepest correction since the tariff-driven sell-off in April last year.

Markets can change quickly, so investors need to stay informed and watch how prices respond around these critical support levels.

1. Living in an apartment? You might soon be able to join the solar saving spree

Renters and apartment dwellers could soon be allowed to put portable solar panels and batteries on balconies and in gardens.

Federal climate change and energy minister Chris Bowen announced this week that state and territory governments had agreed to work with his department to make plug-in solar legal in Australia.

Large panels and batteries are already popular on detached and semi-detached homes.

They allow Aussies to produce and store their own electricity, reducing the amount they take from the grid and, therefore, their power bills.

"Now we're taking the next step, by looking at how even more Australians can take advantage of free, abundant sunshine - even if they don't have a roof," Bowen said, according to the ABC and Nine Newspapers.

Bowen said the panels and batteries would be small enough that residents could move them on their own from property to property.

Plug-in solar systems are already popular in several European countries, including Germany, where residents often put panels on their balconies to power appliances inside their home.

But Bowen warned the products wouldn't become available in Australia "overnight", adding there was "a lot of work to do" to make sure they were safe and met safety standards.

2. Foreign investors told to contribute to housing supply

Foreigners who buy residential land are being reminded to contribute to Australia's housing supply after one investor was fined for taking too long to start construction.

The tax office issued the warning to "land banking" investors after the individual was ordered to pay $370,000 by the federal court this week for not building a home on the lot within four years.

"This case should serve as a warning to foreign investors and their advisers," said ATO assistant commissioner Jennifer Moltisanti.

"[They] need to understand that buying residential land in Australia comes with clear and enforceable obligations".

"Where foreign investors do not comply, we will take firm action, including court proceedings, to uphold the law and protect Australia's national interests."

Foreign investors who purchase vacant residential land in Australia are generally required to build on it within four years under rules designed to ensure land is put to productive use and contributes to housing supply.

3. "Low blow" migration cuts could raise grocery prices: farmers

Farmers say the federal government's plan to make backpackers wait longer for work visas will push up grocery prices and could lead to shortages on supermarket shelves.

Responding to the government's plan to cut migration announced this week, the National Farmers' Federation (NFF) said new processing times for visas would lead to a labor shortage.

"Working holiday makers fill about one in seven farm jobs, making them central to getting food and fibre produced, harvested, packed and into supermarkets," said NFF President Hamish McIntyre.

"When farms cannot get workers at the right time, crops are left unpicked, livestock care becomes harder... and households ultimately pay the price at the checkout."

One of the migration changes the government announced on Thursday was to "stabilise" processing times for working holiday maker applications at three months.

The NFF says approvals previously took just days.

Federal immigration minister Tony Burke rejected farmers' claims in a comment to The Guardian.

He said the government's changes would allow quicker visa approvals in other vital industries and that growers could still bring in workers on Pacific labour schemes.

4. Major airlines earning billions despite fuel crisis

Australia's two biggest airlines are still raking in billions of dollars, despite having to pay much more for jet fuel, according to the national competition watchdog.

The Australian Competition and Consumer Commission (ACCC) said the earnings show how well the carriers have fared in a "highly concentrated" domestic aviation market.

The ACCC's latest report on the local airline industry reveals Qantas earnt $2.35 billion before interest and tax in the 2025-26 financial year, while Virgin Australia took in $753 million.

The watchdog noted the "strong results" came despite jet fuel costing nearly 50% more in August this year than in February.

In April, Qantas and Virgin announced they would charge customers more for tickets and reduce capacity on some services to deal with the higher fuel overheads.

The ACCC noted that, despite this squeeze, the carriers were still enjoying strong passenger demand.

But it said the dominance the companies enjoy domestically gave consumers few other options.

"These results highlight the financial resilience of the two largest operators in Australia's highly concentrated domestic aviation market."

5. Scamwatchers flag return of summer ticket cons

Aussies desperate to see their favourite acts or sporting teams this summer are being warned to watch out for scammers selling fake tickets.

Western Australia's government ScamNet service expects fake ticket scams to increase as we head into the warmer months and believes cases are already on the rise.

It said Western Australians had already lost more than $1000 to scams in the first few days of this month.

The group said WA could see a repeat of last summer, when more than 80% of scam losses occurred during warmer months as festivals, outdoor concerts and other events ramped up.

ScamNet says people looking for tickets for popular events should avoid online ads for secondhand passes or offers from sellers on social media whose profiles appear new.

It also recommends sticking to an event's official resale platform and, if buying from a private seller, using PayPal rather than bank transfer.

The exchange-traded funds (ETF) fee war has been good for investors. Providers keep cutting fees as they compete for investor money, and that means more of your money stays invested rather than disappearing in costs.

I've long been a champion of investors keeping their fees as low as possible, but once fees get very low, the difference between one ETF and another can become tiny.

If two ETFs differ in fees by only one or two basis points, there are other things worth looking at before blindly choosing the cheaper one.

Start with what you are actually buying

Two ETFs can sound similar but give you quite different exposure. Take broad Australian share ETFs.

One might track the S&P/ASX 200 and hold around 200 of the largest listed companies. Another might track the S&P/ASX 300 and hold around 300.

International ETFs can very much more.

One could be heavily weighted towards US technology companies, while another is spread more broadly across countries and sectors. Currency exposure can also differ, with some ETFs hedged back to Australian dollars and others left exposed to movements in the currency.

The companies the ETF holds determine where your returns come from and what risks you're taking.

A tiny fee saving is usually much less important than ending up with the wrong exposure.

The management fee is not the whole cost

The annual management fee gets most of the attention because it is easy to compare, but it isn't the only cost.

ETFs also have a bid-ask spread when you buy or sell. For large, heavily traded ETFs, this can be small, while more specialised ETFs can have wider spreads.

Trading costs are another part of the picture, particularly when annual fees are already very small.

Why the index return isn't always your return

An index ETF has a fairly simple job: follow a benchmark such as the S&P/ASX 200 or S&P 500.

But the return from the ETF won't always exactly match the return from the index, this is known as the tracking difference.

How the fund buys and sells investments, handles index changes, manages cash, its tax treatment and the fees it charges can all affect how closely it follows its benchmark.

So, if you're comparing two ETFs tracking the same index, a lower management fee doesn't tell you everything. It's also worth looking at how closely each has actually tracked the index over time.

Look at concentration

An ETF might own hundreds of companies but still have a large chunk of the portfolio sitting in its top 10 holdings.

Another may spread its money much more evenly. That matters when comparing ETFs with similar fees.

One might cost a fraction less but have much more of your money tied to its largest companies, sectors or themes.

Concentration isn't necessarily a problem if that is the exposure you want, but it does increase risk.

If a large share of the ETF is invested in just a few companies or sectors and they fall, that can drag down the ETF's overall return

Look at the largest holdings and their weights, not just the total number of companies.

And, look at how your ETFs work together

When you own several ETFs, look at how they fit together too.

Two ETFs can overlap more than you think, holding many of the same companies or giving you similar exposure and leaving your overall portfolio more concentrated than it looks.

This is something we consider at InvestSMART when building our portfolios. We combine ETFs across different markets and asset classes, with the aim of avoiding unnecessary overlap and building a well-diversified portfolio.

Of course, fees still matter

None of this means investors should stop caring about fees.

Over long periods, high fees can eat into returns. But once costs are already very low, the cheapest ETF isn't automatically the most suitable one.

The man Hall loved called her up to 10 times a day. They talked about their future together. He seemed attentive, successful and trustworthy, an experienced finance executive who wanted to help her become more financially secure.

Hall had occasional doubts, but nothing that prepared her for what came next.

Then she saw his face in a Crime Stoppers video.

The man she knew as Max Tavita was actually Hamish McLaren, a career fraudster who had spent decades moving through false identities and other people's lives.

The relationship Hall believed was real had been carefully engineered to win her trust. The investment accounts she thought were in her name did not exist.

The documents were forged. The $317,000 she believed was being invested for her future, including the superannuation she had spent more than 20 years building, was gone.

Today, Hall, 50, is an author, speaker and advocate for victims of financial crime. After a 26-year career in corporate marketing, she left the executive world following the release of her book The Last Victim, which tells the story of how she became one of McLaren's victims.

The man she loved never existed

The man she knew as Max Tavita was actually Hamish McLaren, a serial fraudster who had spent 30 years moving through false identities and other people's lives.

The relationship Hall had believed was loving and intimate had been engineered to gain her trust.

The investment documents were forged. The $317,000 she believed he was investing in her name, including the superannuation she had built over more than two decades, was gone.

"It decimated everything I believed about myself and my ability to make decisions.

"I was very much in love with him. When he was arrested, I had to get my head around the fact he was gone. It felt like a death. Then I realised that he never actually existed," she says.

McLaren was convicted of defrauding 15 Australian victims of more than $7.6 million. His offending became the subject of journalist Greg Bearup's podcast Who the Hell is Hamish? for The Australian.

McLaren was released on parole in July this year. Hall cannot undo what he did, but she can use the experience to protect the next person.

How she became Hamish McLaren's target

Hall grew up on the Gold Coast, Queensland, with two brothers in a close, hardworking family.

Money was not a regular topic of conversation.

"It was considered an adult issue," she says.

At 18, Hall left Australia to travel through Europe and later lived in India for a year.

She returned to study sports science, but found herself drawn to the business of sport.

That led to sports marketing and a job at Sydney's Olympic Stadium before the 2000 Games.

By the time she met McLaren on a dating app in 2016, Hall was a single mother with a six-year-old daughter, a senior role in corporate marketing and a life running close to capacity.

"I wasn't a naive, sheltered person," she says.

"I was independent, had lived in different countries and had held many different jobs."

McLaren carefully built Hall's trust over nearly a year and a half inside what she believed was a committed relationship.

He presented himself as a finance professional with decades of experience working around the globe.

When he offered to help organise her money, it appeared to be a caring gesture.

"He saw how hard I was trying," she says. "He told me: 'I want you to be financially independent'."

Hall did not believe she was handing him cash to control. She thought the investments and accounts were hers.

"I never gave him money. I thought it was all in my name, but all the documents were forged," she says.

Looking back, one of the biggest lessons is how easily control can be disguised as support.

"Financial abuse never comes in waving a big red flag," she says.

"It comes disguised as care and concern and 'let me help you', which is exactly what he did to me."

Rebuilding after the betrayal

After McLaren's arrest, Hall spent three weeks helping police reconstruct the relationship.

She had to go back through 16 months of messages, emails, conversations, financial documents and memories.

There were also gaps that nobody could fill.

Police could reveal little while the investigation was underway. Financial institutions were constrained by the criminal proceedings.

Hall was left trying to rebuild the story of her own life without all the pieces.

Only a small circle of family and friends knew.

She was protecting her daughter and career while carrying the shame so often placed on victims of financial crime.

Then came the practical reality. She had no savings to fall back on and only her monthly income.

Hall returned to her executive role at eBay and doubled down.

"I was terrified of losing my job. Without it, I knew I'd be completely screwed," she says.

How she rebuilt her finances

Hall was 42 when her money was stolen and 43 when she started rebuilding her finances.

Before meeting McLaren, she understood money well enough. The problem was that she kept postponing the practical jobs.

"I wasn't financially illiterate," she says. "I was financially avoidant."

She knew she needed to sort out her insurance, super, will and retirement plan.

But as a busy single parent with a demanding career, it kept slipping down the list.

After the fraud, she could no longer put it off.

Hall found a financial adviser and together they established a budget, arranged insurance, restarted her superannuation and created a plan to build assets outside it.

With a shorter investment runway, she had to be disciplined.

Money was siphoned from her salary into a portfolio whenever possible.

Eventually, she saved enough to buy the apartment she had been living in.

Her retirement strategy now combines superannuation, investments and her home.

She meets her adviser every six months, reviews her progress and adjusts the plan when her circumstances change.

Being deceived by McLaren changed the way Hall approaches money in relationships, too.

She now asks the uncomfortable questions, reads every document and makes sure she understands exactly what she is signing.

Someone once gave her a piece of advice that stayed with her: don't outsource the education, outsource the execution.

"Take agency," Hall says.

"Don't assume the other person will take care of it. Make sure you are across everything, you understand everything, you go to all the meetings."

Financial vulnerability, she points out, is not limited to fraud.

It can follow a divorce, redundancy, illness, natural disaster or death in the family.

"You don't have to lose your life savings to a conman to be financially vulnerable," she says.

For couples, that means discussing what is mine, yours and ours, and what happens if circumstances change.

From victim to advocate

For years, Hall resisted speaking publicly.

She had a career and daughter to protect, and little appetite for the judgment directed at victims.

The way romance fraud was reported only made it harder.

Victims were often portrayed as lonely, gullible or somehow responsible for what happened, with the grooming and psychological manipulation used against them getting less attention.

"I can understand why people don't come forward," she says.

Meeting Bearup changed her thinking.

Although some of those closest to her advised against going public, Hall had rarely heard an account that reflected the reality of her experience.

"The more we talk about it and share these stories, the more financial crime becomes part of open discussion," she says.

Money itself was already difficult enough to discuss.

Few people talk openly about what they earn, where they invest or what they have lost.

That silence creates the perfect conditions for criminals to isolate their targets, she says.

Hall began writing The Last Victim in 2023, seven years after her relationship with McLaren began.

By then, she had undergone years of therapy, reflection and rebuilding.

When the book launched, Hall left her 26-year corporate career and started her own business.

She now speaks at conferences, corporate events and financial organisations, runs workshops, advocates for victims of financial crime and writes about scams and fraud from the victim's perspective.

The career change has reduced her income, at least for now.

But Hall is building the business deliberately and believes in the work she is doing.

"The world needs people who will stand up and advocate for people who don't yet have a voice," she says.

Why smart people still get scammed

Hall wants people to understand that modern scams are not simply a matter of spotting a clumsy email or suspicious link.

Many are run by professional criminal organisations with data, scripts and technology years ahead of what most of us encounter day to day.

"These are not opportunistic creeps in a basement down the road. This is industrialised crime," she says.

The first line of defence is accepting that intelligence, education and professional success do not make anyone immune.

"We all like to think that we're less vulnerable than we are," she says.

But everyone can have an off moment.

A convincing message may arrive when you are distracted, under pressure or rushing to get things done.

"Being targeted at the wrong moment with the right thing, we are all vulnerable."

Nor does financial crime fit a single demographic.

At Hall's speaking events, women often raise their hands to share their experiences with the room.

Men tend to wait.

"They'll come up and whisper, 'This happened to me'," she says.

And the most common target may not be who you think.

A senior fraud executive at a major Australian bank recently told Hall that men in their sixties were the group most often targeted, perhaps because they may have accumulated savings and feel confident assessing investment risks.

"It's not just women who get scammed," she says. "It's just that men don't say it loudly."

Hall's advocacy ranges from better support services for victims of financial crime to compulsory government-issued identity verification on dating apps.

She is also concerned about the growing use of artificial intelligence, fake profiles and coercive tactics online, including teenage sextortion.

Hall believes society needs to develop what she calls "trust literacy".

"We're taught financial literacy and digital literacy, but rarely how trust is created, transferred, exploited or defended," she says.

"And we're in a world where trust is being eroded more aggressively than ever."

Turning loss into purpose

At 50, Hall has turned the worst experience of her life into a new career.

"I'm excited that this horrible experience has given me an opportunity to reinvent myself," she says.

"I know these conversations are having an impact."

She is also optimistic about the role Australia could play in improving digital safety.

"I'm excited about Australia possibly being a leader to the rest of the world," she says.

The crime may always be part of Hall's story.

But she is determined that it will also help shape what happens next.

"What's done is done, I can't change it," she says.

"What I can do is try and make it better for the next person."

To contact Tracy Hall about a keynote or workshop, visit tracyhall.com.au.

From earning frequent flyer points to accessing perks like airport lounge passes, there are plenty of reasons why Australians have been drawn to premium credit cards, despite their higher cost.

One of the more valuable features has been complimentary travel insurance - cover many jet-setting cardholders will have relied on while travelling abroad.

But with card providers flagging major changes ahead of the upcoming ban on debit and credit card surcharges, cardholders may need to think twice before assuming they're covered.

So, what's changing, and can travellers still rely on their credit cards for travel insurance?

Has your bank cut credit card travel insurance?

Ahead of the October 1 ban on card surcharging, card providers have announced some significant changes, including higher annual fees, lower points earn rates and scaled-back insurance cover.

"Some of the country's biggest banks are winding back or cutting their travel insurance cover benefits, with each adopting a different strategy which adds to the confusion," says Warren Duke, travel insurance expert at Compare the Market.

"In some cases, new criteria have been added to access benefits, such as ANZ's move to three levels of insurance benefits from December 9.

"ANZ says some cards will have reduced cover or will have benefits removed, while other cards will no longer include complimentary travel insurance."

ANZ isn't the only major bank taking action. Travel insurance benefits like baggage cover and interstate flight inconvenience cover will no longer be included on CommBank's Gold and Gold and Platinum Awards cards from September 29.

Westpac is also reducing the scope of the travel insurance across its Black and Platinum card suite from October 1, removing cover for trip cancellation, travel delays and luggage.

NAB, on the other hand, already removed travel insurance from a number of its credit cards back in May.

Given the extent and variety of changes being rolled out, Duke has urged cardholders to dig into the details related to their own cards - especially those with upcoming travel plans.

"Travellers who have relied on complimentary credit card based travel insurance will need to be even more wary due to these changes, and should always double-check the bank's fine print.

The insurance fine print travellers often miss

Beyond keeping an eye out for any future changes, cardholders may also want to ensure that they don't fall into the trap of assuming that they're automatically covered.

"Card-based travel insurance can provide valuable cover, but there are often more conditions attached than travellers realise," says Natalie Smith, travel insurance expert and head of marketing at Comparetravelinsurance.com.au.

"One of the crucial things to check is whether you actually meet the eligibility requirements. In many cases, travellers need to have paid for a minimum amount of their trip using the eligible credit card, and some policies may only cover the cardholder rather than everyone travelling with them."

Travellers should also take a close look at the level of coverage being provided, Smith suggests.

"Card-based policies can have lower limits for certain benefits, higher excesses and restrictions around things like age and pre-existing medical conditions.

"Some credit card policies don't provide cover for pre-existing medical conditions, while others may offer cover subject to specific conditions, so travellers should check the policy carefully.

Are rewards cards still worth it for travel insurance?

Whether it's points or insurance, the recent credit card shake-up will have prompted plenty of customers to ask themselves whether their rewards card still stacks up.

Ultimately, the calculation will depend on whether cardholders still feel that the value the insurance provides outweighs the cost of the card.

"Many customers that travel overseas frequently will feel like they're losing a great perk, but it's worth remembering that insurance included on a credit card that has a high annual fee was never really free to begin with," Duke argues.

"So, unless you were already using the card and taking advantage of the other points benefits, getting a credit card for travel insurance cover alone probably wasn't the best-value option in today's competitive travel insurance market."

When does standalone travel insurance make sense?

While card-based insurance may still be a more convenient option for some cardholders, there are situations when it might not be enough for a traveller's needs. An alternative is a standalone policy from a travel insurer.

"If your card insurance has lower medical or cancellation limits, a high excess, age restrictions or doesn't cover a pre-existing medical condition, a standalone policy is likely a better option," Smith says.

"The same applies if you're travelling with family and the card policy doesn't provide adequate cover for everyone in your travelling party.

"Travellers should also consider the type of trip they're taking. If you're planning activities such as skiing, cruising or trekking, check that your card-based policy covers those activities and any specific conditions that apply."

Reader question

Hi Paul,

We are immigrants and are investing in a landscape that is unfamiliar. We moved here after all our children became Australian citizens.

We are now too, at the age of 74 and 67.

We live in a granny flat and contributed to a house big enough for three generations.

Now we need advice about where to invest and earn a monthly income for our living expenses. We will not receive a pension for about 10 years.

We have $600,000: $100,000 in a high-interest savings account, $250,000 to $300,000 in super, and the remainder in ETFs.

I need to keep fees low with a good return. Can you help with information on super funds and companies with low-cost ETFs?

Am I on the right track? - Elizabeth

Paul Clitheroe's response

We have something in common, Elizabeth, except at very different times in our lives.

My parents moved to Australia as 10-pound Poms way back in 1963 when I was eight and my sister was four. I do remember it took my parents some time to understand the financial environment here, particularly our quite peculiar tax system.

We also live with three generations in our family home. Our middle daughter moved back home with her husband and two children while they build a new house.

For our readers wondering about the 10-year wait for an age pension when you are both at qualifying age, this is not an income or assets issue. It is the newly arrived resident's waiting period.

I'd have to steer you to a financial adviser for specific advice, but in broad terms I don't see a problem generating $30,000 a year, plus Christmas presents for the kids and grandkids, from $600,000.

You only need to generate 5% a year on your $600,000 to do this. If investing in joint names, tax should not be a major issue.

Frankly, I think you have an excellent plan. I'd do something similar.

It is a good idea to keep about $100,000 in a super-safe, high-interest bank account. I imagine you would earn more than 5% on that, so there is about $5000 a year to start with.

But we do need to think about inflation.

Super is a terrific asset for retirees, but I am definitely going to direct you to an adviser, or the advice team offered by major super funds.

Obviously, I'd want you in a large, low-cost super fund and, given your cash reserves of $100,000, I'd suggest you talk to them about a balanced investment option.

I suspect a pension from super may be the way to go, but talk to your chosen fund and seek advice. If a pension is the right option for you, there is another 5% being paid to you on, say, $300,000. That is another $15,000 a year.

Finally, yes, a low-cost ETF is a good way to get global diversification for incredibly low fees. As a starting point, you could look at Betashares, Vanguard and iShares, although there are plenty of providers.

About $200,000 will give you excellent global diversification and, at about 3% income, another $6000 or so in annual income.

This would leave you a little short of your $30,000 target, but you could comfortably look at a higher-income ETF, draw a little more from super, or supplement your income from your $100,000 cash reserve.

The key point here is that you are not asking for miracles. A return of 5% a year from a balanced portfolio, plus some inflation protection, is historically a very conservative objective.

I hope you enjoy this beautiful country as much as I have.

What to read next

• What is an ETF? A beginner's guide to exchange traded funds
• Paul Clitheroe: From England to Australia
• Are you beating the average? How much Aussies have in super
• How to live with extended family without drama
• Ask Paul: I grew up poor, now I'm worried my kids are spoilt

We've been taught to think about money in remarkably individual terms. Build your career. Pay off the mortgage. Grow your super. Invest wisely. Retire comfortably. Spend cautiously. Leave whatever is left to the children.

For decades, that has been the blueprint for financial success. But now that we're expecting to live to 100 rather than 64, I wonder if we're asking the wrong question. Instead of asking, "How much money do I need before I die?", perhaps we should be asking, "When can my money do the most good?" Because they're not the same thing.

Imagine two scenarios. In the first, your children inherit a substantial sum when they're in their sixties. The mortgage is almost paid off, the kids have left home, and retirement is just around the corner.

In the second, they receive financial support in their thirties or forties. It helps them buy their first home, navigate the expensive years of raising children, start a business, retrain for a new career or simply breathe a little easier during one of life's inevitable rough patches.

The dollar amount might be identical. The impact almost certainly isn't.

When can your wealth do the most good?

As a behavioural economist, I've become increasingly interested in what I call the timing value of money.

We spend enormous amounts of time trying to maximise the financial return on our investments, but surprisingly little thinking about when those investments create the greatest return for the people we love.

Perhaps that's because this isn't really a financial problem. It's an emotional one.

One of the great paradoxes of retirement is that the older we become, the more uncertain the future feels.

We don't know how long we'll live. We don't know what healthcare will cost. We don't know what governments will change, what markets will do or whether we'll eventually need residential aged care.

Why 'just a little bit more' is never enough

So we do what humans have always done in the face of uncertainty. We accumulate. We keep "just a little bit more" because it feels safer than having "not quite enough".

The irony is that humans are notoriously poor at predicting the future. We routinely overestimate how much certainty we'll need and underestimate our ability to adapt when circumstances change.

We insure against events that may never happen, while often overlooking opportunities that are sitting right in front of us.

Fear is a brilliant survival mechanism. It's not always the best financial planner.

This isn't an argument for recklessly giving your money away or assuming your children will become your retirement strategy. Every family's circumstances are different, and maintaining your own financial independence remains incredibly important.

But there is another way to think about wealth.

Instead of seeing it as something to preserve until the very end, we might see it as something to deploy intentionally across generations.

Helping a child into the housing market. Paying for a grandchild's education. Supporting a family member through illness, career change or parental leave. Creating shared family experiences while everyone is healthy enough to enjoy them.

These decisions may not maximise the size of your estate, but they may maximise something far more valuable.

Stronger families.

What kind of legacy do you want to leave?

Historically, wealth wasn't simply transferred through wills. It flowed through families over decades. Parents helped children establish themselves. Adult children helped ageing parents remain connected and cared for. There was an understanding that resources, responsibilities and relationships moved in both directions throughout life.

Somewhere along the way, many of us began treating financial independence as though it meant complete financial isolation. Perhaps it doesn't have to.

This requires a significant mindset shift because it asks us to move from a scarcity mindset to an opportunity mindset.

Scarcity asks, "What if I need this money one day?"

Opportunity asks, "What could this money achieve today?"

Both are reasonable questions. The challenge is making sure fear doesn't become the only voice in the conversation.

This is where emotional agency becomes surprisingly important.

Emotional agency is the ability to use your emotions deliberately to drive decisions based on your values, rather than simply reacting to fear, excitement, anger or the mindless pursuit of pleasure.

Fear tells us to protect. Anxiety tells us to delay. Uncertainty tells us to wait until we know more.

But values invite a different conversation.

What kind of family are we trying to build? What memories do we want to create? What opportunities do we want to provide? What legacy do we want to leave?

Notice that none of those questions is actually about money. Money is simply the tool. The real investment is in the people.

The greatest financial return you'll ever achieve may not be found in a share portfolio or a superannuation statement. It may be found years from now, around a family dinner table, when your children remember not just what you left them, but how you used your wealth to strengthen the family while you were still there to enjoy it.

After all, wealth was never meant to be an end in itself.

Its greatest value lies not in the things it accumulates, but in the people it enables. And how much is it worth to see your family thrive?

I should make it my aim to come up with a better term. But I'm a finance nerd, not a creative genius, so instead, I'll give a Freddo Frog to anyone who can come up with a better one. Especially because it's a really important idea that will not only help you build long-term wealth, but also ride the waves of volatility.

Here's the idea.

Previously, I've talked about saving money every payday, and investing that money as regularly as you can (keeping costs low as you go).

Let's use a hypothetical example.

You decide to invest every month. In the first month, the shares are $9 each. Next month, $10. The month after, $9.50. Then $11, $10 and $10.50.

At the end of six months, that $10.50 price is higher than some of the prices you paid, but lower than others. But what if you'd bought only once? Maybe you'd have paid $9. At the end of that six-month period, you'd have made a nice gain and probably feel pretty good.

And if you'd only bought once, say, in month four? You'd have paid $11, and be nursing a small but disappointing loss.

Smooth sailing

Now, in an investing lifetime, one company, bought once isn't going to make or break you. Even buying a few companies a few times won't.

But if you're making only very occasional, large purchases, you're putting a lot of store in your ability, or luck, to buy for the right price at the right time.

Dollar-cost averaging, by comparison, suggests that buying small amounts regularly smooths, or 'averages', your cost. Hence the (clunky) name.

It removes the need to try to time the market, by giving you an average(-ish) price.

Let's say you invest $200 per month for a year. Sometimes the price is up. Sometimes it's down. It'd be nice for the share price to just go up after you bought, of course, but there's something else at play here. Just look at how your purchasing power expands when the price falls (see table, opposite).

No-one likes a smaller portfolio. But because you keep buying, in the 'down' months you get more shares for your money!

You own more of the company now than if the share price had simply only gone up.

On the straight and narrow

Here's the other way to look at it through a behavioural psychology lens: if you buy today at $10, and the share price drops to $9, you get to buy the next lot at a cheaper price. And if you buy today at $10 and the share price rises to $11, you've made money.

Now, that's selective use of data and arguments, of course, but the point is that it helps keep us on the investing straight and narrow, and keeps us buying.

See, I've heard plenty of people take one of two opposing views based on how they feel about share price movements.

When a share price falls, some people will say, 'Great, it's cheap. I should buy more', while others will say, 'Nah, it's falling... I'm not buying'.

On the other hand, when prices rise, some worry that 'I've missed it', while others say, 'It's going up... I'll buy'.

I'll level with you: None of those approaches is right, based only on share price movements.

Maybe the stock that's gone up is now too expensive. Maybe the one that fell is down because the business is tanking. Or maybe the shares are up because the business is growing strongly, or down because of sentiment, not business reality.

In other words, there is nothing to learn from past share price movements!

But dollar-cost averaging, when committed to as a strategy, allows you to put those psychological demons to rest. It allows you to make your investing more mechanical, adding regularly as long as the company is worth investing in at the current price.

It won't give you the lowest price ever, but then nothing other than luck will ever do that.

And you could be more involved if you wanted, picking which company's shares you buy when, if that's your preference.

But for many, perhaps most, people, dollar-cost averaging is a form of the 'pre-commitment'. And it can be a serious help when it comes to getting invested, remaining invested and adding to your investment snowball as it rolls steadily downhill, picking up more snow as it goes.

Now, let's unpack one of the most powerful acronyms in investing.

The Pareto Principle

You might have heard of a bloke called Pareto, after whom the Pareto Principle is named. You've almost certainly heard his idea expressed more simply as the 80/20 rule.

The idea is that 80% of a result comes from 20% of the effort. Maybe 20% of a company's customers deliver 80% of the revenue. Maybe 20% of a company's customers are responsible for 80% of complaints, too!

(Apparently, or apocryphally, Pareto discovered that 80% of the peas he got from his garden came from 20% of the plants!)

You get the drift. It's commonsense, and a concept that you probably have personal experience with, even if you didn't consciously think about it as the 80/20 rule.

It won't surprise you to learn that the same thing applies, directionally at least, Pareto is essentially a rule of thumb, in investing.

Except it might be closer to 90/10 or 95/5.

The vast bulk of your return will be driven by your savings rate and investing horizon. A little extra (the 5%, 10% or 20%) might come from the time, effort and energy you put into trying to outsmart the market.

Maybe.

The Pareto Principle isn't an iron law, but it is an observation that getting a few big things right is generally the key to success in most endeavours.

In investing, that's probably your savings rate, your investment horizon, diversification, dollar-cost averaging and patience.

By all means, chase the extra return if you have the opportunity... just make sure it doesn't backfire on you, instead.

What really matters

Complex strategies rarely outperform simple, disciplined approaches.

Diversification and consistency matter far more than cleverness.

Simplicity makes investing easier to stick with when markets become volatile.

This is an edited extract from Chapter 9 of The One-Page Investing Plan: start simple, stay patient, build serious wealth by Scott Phillips (Wiley, $34.95). Enter now to win one of five free copies.

As vet bills continue to climb, some households are sticking with insurance for peace of mind, while others are choosing to build their own emergency fund instead.

Almost half of Australians would struggle to cover an unexpected $3000 vet bill, according to research from Canstar, while Finder found one in four pet owners have delayed taking their animal to the vet because they're worried about the cost.

It's a dilemma affecting millions of households.

Australia is home to 31.6 million pets, with 73% of households owning at least one animal companion, according to Animal Medicines Australia.

Many of those pets joined the family during the pandemic boom, but as they get older, the cost of caring for them is starting to bite.

Australians spent a staggering $21.3 billion on their pets in the year to March 2025, including $1.9 billion on veterinary care.

With treatment costs rising and pet insurance premiums following suit, owners are increasingly being forced to choose between paying more each year for cover or taking the risk that their savings will be enough if their pet needs expensive treatment.

Pet insurance costs on the up

Taking out pet insurance is one way to deal with these costs, but the premiums on these policies have undergone their own inflation -- in some cases, significantly.

Canstar's research found average annual premiums for accident and illness cover increased by 26% for dogs and 27% for cats over the last year. Average premiums for large dogs went up by 29%.

With annual insurance bills averaging over $1700 for dogs and almost $1000 for cats, it's hardly surprising Aussies are believed to have spent $1 billion on pet insurance in the 12 months to March 2025.

Experts say the increasing sophistication of animal care and veterinary procedures is a key reason for the increase.

But Canstar data insights director Sally Tindall says increasing demand on vet services is also to blame.

"There's been a rise in pet ownership since Covid," she says. "A lot of people decided that was the time to get a pet and so that is increasing demand, which is putting pressure on cost".

So is pet insurance still worth it?

Even before the latest premium hikes, many of Australia's pet owners had already decided insuring their pet was too much of a financial burden to be worthwhile.

Last year's Animal Medicines survey found 86% of cat owners and 76% of dog owners hadn't insured their pets, with most saying they thought the policies on offer were too expensive.

Of course, not having cover for your pet means you'll have to dip into your savings to cover any vet bills.

Experts say building up an emergency fund in a high-interest savings or mortgage offset account is a smart way to prepare for going down this self-insurance route.

Relying on your savings can be useful if you're only expecting to deal with minor or routine procedures or if you have an older animal with pre-existing medical conditions insurers may not agree to cover.

But experts warn vet bills for serious ailments can quickly swallow your savings.

"Pets can actually be quite expensive in the first couple of years... costs can come completely out of the blue and easily rise into the thousands, sometimes tens of thousands of dollars".

"Even if you are putting that money away every single month [into savings] for your pet, it only takes one major surgery or incident to completely drain that account," says Finder's insurance expert Ceyda Erem, who notes pet insurance can be useful if your animal has long-running health issues.

"With an insurance policy, you get an annual limit which refreshes every year, so you do have a bit more of a buffer to play with when it comes to getting treatment for your pet".

What to compare to make sure you're getting the right pet insurance policy

If you've decided to take out pet insurance, Finder and Canstar recommend checking these aspects of each policy to get the best deal.

1. Level of cover

Most policies will require you to cover a portion of the vet bill, called an excess or copayment. This can vary by policy, with Canstar finding some policies require you to pay for as much as 40% yourself.

2. Limits

These are caps on the amount you can claim every year. According to Finder, these can vary from $2000 to an unlimited amount. A lower limit usually means a cheaper policy, but note that serious vet procedures like surgeries can exceed $20,000.

3. Better deals

Canstar found you could save up to 42% over a year by choosing a cheaper provider over a more expensive one, so shop around and see if different insurers will provide you with a similar policy for less.

If Australia's August reporting season has a key message to deliver, it's that the market's patience is wearing thin.

At a headline level, the reporting season looked healthy enough. Earnings growth was the strongest in four years, dividends rose, and several sectors produced standout results.

But scratch beneath the surface and a different story emerges.

This was a reporting season defined by sharp reactions, widening performance gaps and a market increasingly focused on execution rather than optimism.

The days of a rising tide lifting all boats appear to be fading and every company is now being tested on its own fundamentals.

That was reflected in the volatility. Almost half of ASX 200 companies experienced a single-day share price move of at least 5% in either direction during August.

Combined with February's reporting season, 2026 was one of the most volatile reporting years in recent memory.

Investors rewarded results and punished excuses

Investors should note that this volatility was not random. Companies that delivered strong results and credible guidance were rewarded.

Those that missed expectations, however narrowly, were often punished immediately and sometimes brutally. In many cases, it was not the result itself that mattered most, but what management teams said about the road ahead.

That is where the more concerning signals emerged. While earnings growth was strong, much of that strength came from the resources sector.

Strip mining out of the equation and earnings growth drops back into a far from inspiring single digit growth.

The rear-view mirror looks better than the road ahead. Company guidance broadly disappointed relative to consensus expectations and forward ASX 200 earnings forecasts have continued to drift lower.

Markets are ultimately forward-looking. Investors care far more about where profits are heading than where they have been.

And on that measure, enthusiasm is becoming harder to find.

The real test wasn't earnings, it was guidance

Mining was the clear standout winner of reporting season. Materials rose 12% during August as earnings upgrades flowed through the sector.

BHP reclaimed its position as Australia's most valuable company, with investors increasingly focused on its long-term copper growth pipeline and the role critical minerals are likely to play in global electrification and AI infrastructure buildouts.

Healthcare was another notable winner, surging almost 19% for its strongest monthly gain in more than a quarter of a century.

After a prolonged period of valuation pressure and lacklustre performance, investors were willing to revisit the sector as earnings momentum improved and cost-control measures began to gain traction.

CSL was the obvious headline, rising 17% on reporting day despite describing FY27 as something of a reset year.

The market looked through the near term and focused on the longer-term earnings trajectory.

Mining and healthcare emerged as the clear winners

At the other end of the market, consumer discretionary, property and the major banks struggled.

Retail results from companies such as JB Hi-Fi and Harvey Norman reinforced concerns about the consumer.

Elevated interest rates, softer housing conditions and ongoing pressure on household budgets are creating a clearer divide between businesses exposed to discretionary spending and those with more defensive earnings profiles.

The major banks faced their own challenges.

Commonwealth Bank's 10% decline in August highlighted weakening earnings momentum and increasingly difficult comparisons after years of strong performance. Investors are beginning to question how much growth remains available when margins are under pressure and competition for deposits remains elevated.

For those seeking exposure to financials, the risk-reward balance is shifting.

In this environment, we'd rather be the bank's lender than the bank's owner, favouring the income and credit stack over equity risk.

Why investors turned on some market favourites

Perhaps the most important lesson from reporting season was what it revealed about stock picking.

Nearly half of Australia's largest listed companies underperformed a simple broad-market exposure such as the Global X Australia 300 ETF (A300) during the month. That should give investors pause.

Identifying tomorrow's winners is becoming harder. Long-term global research tells a similar story.

Most individual stocks fail to outperform the broader market over time, and many ultimately generate negative shareholder returns altogether.

What this means for investors now

Broad diversification will never be the most exciting strategy in the market, but what it can do is provide exposure to the winners without requiring investors to know who they will be in advance.

When every company is being tested on its fundamentals, owning the whole garden can be a far more reliable approach than trying to predict which seeds will grow tallest.

Millions of Australians will soon be planning Christmas holidays, but many workers may not realise their employer can direct them to take annual leave during a festive season shutdown.

Workplace experts say employers can require staff to take leave in some circumstances, reject leave requests and even direct employees with excessive leave balances to take time off.

Here's what Australian workers need to know before booking their summer break.

Do you have to take annual leave during a shutdown?

Closures over the summer are common in government agencies and private businesses, but whether a worker will need to dip into their annual leave during that shutdown depends on the organisation.

If they're not covered by any award or enterprise, the Fair Work Ombudsman notes that an employee can be required to take paid annual leave - if that requirement is reasonable.

What if someone's leave balance isn't large enough to cover the shutdown though?

"If an employee does not have enough leave accrued, an employer cannot force an employee to take leave without pay," says Madeline Hill, general manager, talent strategy and advisory at Randstad.

"Instead, the employee and employer can mutually agree in writing to consider options like utilising accrued time off, annual leave in advance, or unpaid leave.

"If no agreement is reached, the employer must generally pay an employee's ordinary wages for the duration of the shutdown period."

Can your employer force you to take annual leave if you have too much saved up?

Beyond shutdown periods, there's a second situation in which an employee can be directed to take time off: when they've accrued an excessive amount of leave.

What counts as an excessive annual leave balance though?

The Fair Work Ombudsman lays it out as more than eight weeks of paid leave, or more than ten weeks for shift workers.

"The direction to take leave must be reasonable, provided in writing and usually requires the employer to give you at least eight weeks' notice," Hill explains.

"The goal is to ensure employees actually take a break to rest and recharge rather than treating leave simply as a financial payout."

When can an employer refuse annual leave?

Many employees will assume that they are free to take annual leave whenever they choose. That's not necessarily the case though.

As Hill explains, in addition to being able to require employees to take leave in some cases, employers can also reject leave requests in some situations which are considered reasonable.

"This typically includes requesting leave during an industry's peak demand period (like retail during the festive season or accountants during end of financial year), if multiple team members have already booked leave for the exact same dates, or if you do not have enough leave accrued.

"Employers will generally communicate why they have refused your leave request quickly and work with you to find an alternative window that suits both parties."

That's why it can be useful for workers to get their leave requests in early and to have them confirmed before booking flights for an overseas holiday.

Can you use a stat dec instead of a medical certificate for sick leave?

It's a common dilemma: how do you get a medical certificate when you're too sick to leave home and doctors' appointments are hard to come by?

As it turns out, a medical certificate isn't the only option workers can use as proof of illness when lodging a sick leave request.

"Under the Fair Work Act, a statutory declaration is generally recognised as valid, reasonable evidence of your illness or injury, especially when securing a doctor's appointment on short notice is difficult," Hill says.

"While employers are legally allowed to request evidence for even a single day of sick leave, a properly completed and witnessed statutory declaration satisfies the legal requirement in most Australian workplaces."

With Christmas shutdowns approaching, workplace experts say employees should check their leave balance and understand their workplace rules before finalising holiday plans.

Doing so could help avoid unexpected leave disputes and costly travel bookings.

Should employers be allowed to direct staff to take annual leave during Christmas shutdowns? Let us know what you think.

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Jamie Hannah, deputy head of investments and capital markets at VanEck.

They discuss the risks and rewards offered with small caps and mid caps.

Episode timestamps

00:00 Introduction

01:17 What are small caps and mid caps?

03:33 Behavioural differences

05:07 The mid cap sweet spot

06:18 How have small and mid caps performed?

08:36 The investment case for smaller companies

11:21 How much should investors allocate to small and mid caps?

13:19 The key risks of investing in smaller companies

15:30 Options for gaining exposure to small and mid caps

16:31 Local and international ETF opportunities

19:25 Conclusion

Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

Where can I listen to the podcast?

You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

Is the podcast suitable for beginners?

Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.

What topics does the podcast cover?

The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.

How often are new episodes released?

New episodes are released weekly, so you can stay up to date with the latest financial tips and trends.

Can I watch episodes with captions?

Yes, full episodes with closed captions are available on YouTube.

Why subscribe to the Friends With Money podcast?

Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

Subscribe to the Friends With Money podcast today and start learning when it suits you.

Does any of this sound familiar? You're earning more than ever yet still wonder where the money goes.

For many Gen X Australians, their 40s and 50s are expensive years.

There may be a mortgage, children at school or university, adult kids hoping for help with a home deposit and ageing parents who need support. You may also be at the busiest point of your career.

Retirement suddenly feels much closer, but you still want time and money to enjoy life now.

Our 2026 Value of an Adviser research found Gen X was the least confident generation about achieving their long-term financial goals.

Only 15% said they were extremely confident, compared with 24% of Baby Boomers, 28% of Millennials and 43% of Gen Z.

Similarly, among Gen X Australians with a financial adviser, feeling less overwhelmed when planning for the future was the least strongly endorsed emotional benefit of advice, with 16% strongly agreeing, compared with 31% of advised Australians overall. Many are doing well on paper.

Almost 40% of Gen X respondents earn more than $200,000 a year, but the data shows us that a good income can still feel stretched when several generations are drawing on it at once.

As one adviser told us: "A lot of our clients are in that sandwich generation. They're trying to get themselves to retirement, helping kids into property and at the same time dealing with ageing parents. The conversation becomes: 'How do we look after everyone?'"

There may be no perfect answer, but there are ways to make the decisions easier.

1. Decide what matters most

For many Gen X households, peak earning years are also peak spending years. That makes prioritising essential.

Write down the big things competing for your money: mortgage, retirement, children, parents, savings and the things you want to enjoy yourself. Then put them in order.

This will help ensure you are covering your essential spending.

You may want to help your children and parents, but you also need to protect your own future.

Decide what you definitely want to fund, where you have flexibility and what could wait. Mapping out these priorities will outline your capacity to help both sides of the "sandwich" and what that looks like in tangible terms.

2. Sort out the family money conversations early

A lot of family financial stress comes from things nobody has quite talked about and the problems those unspoken assumptions can create within your family.

Parents may assume their children will help. Adult children may assume Mum and Dad will contribute to a home deposit. Siblings may assume someone else will step in.

Those assumptions can quickly become financial commitments that you have not budgeted for.

Ask your parents whether their wills and powers of attorney are up to date, where they keep important financial information and what they would want if they needed more care.

You should also talk to siblings about who could help with what and what role you can play.

Do the same with your children. If you plan to contribute to university costs, a wedding or a home deposit, decide what you can realistically afford and when. It is always better to be upfront than wait for a difficult conversation to arise.

These conversations are much harder in emotional times when illness, a care decision or a property deadline forces everyone to act quickly, so it helps to be prepared.

3. Get help joining the dots

Helping a child with a deposit may be affordable. So might cutting back work to help a parent.

The problem comes when several reasonable decisions land on the same financial plan in quick succession.

A financial adviser can model different scenarios and show how one choice affects the rest of your finances before you commit.

This modelling is one of the key ways an adviser can support your financial journey.

As one adviser put it: "Most of our clients are paying for peace of mind and clarity."

Good advice should help you understand the choices and trade-offs, so you can make decisions with your eyes open.

You may still be the person everyone turns to, but knowing what you can afford to give, what you need to protect and where your limits are can make that role easier to carry.

Rising seas levels could cost Australia $855 billion in damage to land and property by the end of this century, according to a new report from the Climate Council.

The climate advocacy group says as many as 267,000 coastal properties and two million hectares of land could be hit by flooding and erosion under the scenario, which it says is conservative.

Its Rising Seas, Rising Bills report notes sea levels have already risen and that Australians can expect them to rise at least another 14 centimetres by 2050.

With further increases likely beyond this, water levels could then be as much as 54 centimetres above where they are today by 2100.

Most properties deemed at risk are in Queensland, New South Wales and Western Australia.

The Gold Coast alone faces $84.4 billion in projected economic losses - the most of any urban area in the nation.

Report co-author Professor Tom Kompas from Melbourne University says many properties in the firing line would be homes.

"It's mostly residential. So in most cases, in Brisbane and the Gold Coast and so on, it's basically residential properties to a large extent," he says.

Professor Kompas says homeowners would see damage mostly in the form of coastal erosion, mould, landslides and localised flooding, as higher seas levels carry storm surges to into wider areas.

Residents already seeing impacts

The Climate Council says emissions from the burning of fossil fuels is heating the planet and driving the rise of sea levels, which it says have increased already.

Aileen Vening lives near the Victorian coastal town of Inverloch.

She prides herself on monitoring the local coastline closely and has seen significant erosion events hit local beaches regularly over the last 15 years.

"Everyone started noticing it from about 2012," she says. "From then on it may not be every year, but it's only one serious weather event away from a lot of erosion".

Vening says a 2024 storm washed away 18 metres of beach, while the local surf club has had to deploy sand bags to protect its facilities from erosion.

Yet coastal properties remain popular

Kym O'Connell is a real estate agent in Currumbin Valley near the Gold Coast - the city the Climate Council warns will suffer more damage than any other.

She is cautious about flooding in her region, but says rising seas levels are "low on the radar" of people moving into properties near beaches or waterways.

"Migration [to the Gold Coast] is massive and won't cease," she says. "Beachfront properties really haven't been damaged enough to steer people away... those downsizing go straight to the beach to live".

She believes the lifestyle and climate will keep people coming to the area, but is concerned about how they'll deal with the escalating costs borne out of a growing risk of floods.

"When your insurance premiums become just completely unaffordable, it does make you wonder where that will end".

Homeowners facing costs on their own

Property owners will have to pay for much of the damage caused by tidal inundation and storm surges out of their own pocket because these events aren't covered by most insurance policies.

"Actions of the sea are generally excluded or limited because coastal erosion and inundation are high and increasingly predictable risks that are difficult to insure sustainably," a spokesperson for the Insurance Council of Australia (ICA) told Money.

What can be done?

The ICA spokesperson adds: "What's needed is greater investment in coastal protection and adaptation, and better risk-informed land planning so development is kept out of high-risk locations".

The Climate Council agrees, saying Australians should stop building properties in at-risk areas, invest in coastal protection measures and even "manage a retreat" from properties in highly-exposed locations.

Professor Kompas, who worked on the economic modelling of the damage rising seas levels would do, admits these mitigation measures would also be "very expensive".

In the meantime, he says, people should be careful about buying property near the coast.

"Check where the land is situated. What's it's elevation? Are there any barriers that are going to protect you? Is there a possibility of a landslide behind you?"

Aileen Vening from near Inverloch, agrees: "Do your homework, pay attention and just realise that this is not a hypothetical, this is not going to get better."

1. Kogan CEO willing to work for free in bid for $50 million payday

The founder and CEO of online retailer Kogan is proposing to cut his own salary by almost $800,000, forego any bonuses and give any money he receives to charity in exchange for potentially earning millions in the future.

Announcing the proposal to the ASX this week, the company's chair said Ruslan Kogan's "unconventional" remuneration plan would drive his ambition, innovation and long-term thinking.

Under the proposal, Kogan's annual salary would be reduced from $847,838 to a legally required minimum wage of $50,000.

Kogan would then give this away to charity and forego any short-term incentive bonuses in a bid to make the company's share price reach $7.44 within five years, more than double what it is now.

If he achieves this, Kogan will receive 6,740,331 shares of his own, which would be worth over $50 million.

The proposal must first be approved by Kogan shareholders.

Australian Shareholders' Association CEO Rachel Waterhouse says the proposal is "highly unusual," but could please investors.

"It fits what shareholders are looking for, they are looking to really see that value is being created," she says.

"The biggest risk here is that there's only one measure of success... we'd also expect some non-financial metrics, so they could be things around customer or staff satisfaction".

2. Aussies warned to watch out for 'disaster chasers'

A major insurance company is warning homeowners to beware of dodgy tradies who could come knocking if their home is damaged this storm season.

Ahead of summer, IAG says Aussies should watch out for "disaster chasers" - scammers posing as tradespeople who promise cheap repairs to communities hit by storms, floods or bushfires.

Disaster chasers have been known to offer free property inspections, before deploying high-pressure sales tactics to get homeowners to pay upfront for repairs.

These repairs are often never completed.

IAG says one of its brands, NRMA Insurance, has recorded a 65% increase in disaster-chaser related claims since 2023 and says more than 1700 customers have been targeted in the last five years.

These scammers may claim to work for your insurer, but NRMA says it will never send a builder or tradesperson without arranging it with you first and will never ask for upfront payment on-the-spot.

3. Household names kicked off S&P 100

Nike and Colgate-Palmolive will lose their spots in the list of America's 100 largest and most established companies later this month, as consumer goods falter and tech companies surge.

S&P Global last week announced the companies, whose products have been a familiar sight in homes for decades, would be among four businesses removed from its S&P 100 index.

The companies are being taken off because their market capitalisation has fallen below other businesses, namely tech brands like Dell and Sandisk, who'll replace them on the index.

Nike's removal comes after its share price fell 80% from a peak five years ago.

CMC market analyst Henry Fisher says being dropped from the S&P 100 is an "embarrassing milestone" for the famous footwear brand.

"Nike has a real company problem, with revenue flatlining and net income halving since 2022," he says.

Fisher argues the company's push into direct-to-consumer sales led to it losing market share, but notes it's also been affected by issues hitting the broader fashion industry.

"Higher borrowing costs and cost-of-living pressures have squeezed households [and] discretionary spending," he says.

4. Fewer ways to pay rent and strata fees

Aussies paying rent or strata fees using the popular DEFT system will no longer be able to use credit or debit cards to cover these costs.

System operator Macquarie Bank has blamed the incoming card surcharge ban for the change, which will come into effect on October 1.

The bank says it's making the decision in order to focus on "fast, fee-free payment methods".

DEFT handles 1.2 million rental payments per month and is used by over 1200 real estate agencies and strata firms, according to realestate.com.au

Australia's Reserve Bank announced in March it would ban surcharges on debit and credit card payments on the EFTPOS, Mastercard and Visa networks from October.

The central bank said this would make payments simpler, but Macquarie is just the latest lender to use the rule change as an excuse for winding back services.

Major banks have already announced they will hike fees, make it harder to earn rewards points and cut perks on their credit cards because of the surcharge ban.

5. Apple releases most expensive iPhone ever

Once treated with wonder and amazement, smartphones to many of us now just feel like a tool needed to get through life.

But Apple is trying to revive the novelty of yesteryear with its new iPhone, the first to have a foldable screen.

The iPhone Duo will go on sale later this year and while its dexterity has grabbed headlines, the proposed price is also having an impact.

Anyone wanting to buy one of the devices in Australia will have to stump up at least $3499, more than for any other iPhone before.

Whether it will cause people to once again line up outside Apple stores remains to be seen.

Samsung has been selling smartphones that fold into different shapes in Australia for several years without any great fanfare, but maybe Apple's popularity locally will get people excited about the new design.

Everyone has a different idea of what a good investment looks like.

To some, it's pouring their life's savings into starting a small business. Others might purchase an investment property or auto-invest a portion of their monthly wage via a trading platform or app.

If you're anything like me, your idea of a great investment might be buying a run-down Ford Falcon at auction and hoping to flip it for a profit after a little elbow grease.

I'll be honest: I'm not a great investor. This may come as a surprise given I have several investments, but my knowledge on the topic is staggeringly limited and, if you're reading this, maybe you're in the same boat.

But I'm eager to get a better grasp on investing and challenge some of the limiting beliefs I have around personal finance.

So, to start tearing down my own walls, Money has kindly agreed to give me $100,000. Don't worry, I haven't been entrusted with actual moolah - it's virtual money in a demo account on the eToro investing platform.

Over the course of this series, I'll be sharing my journey of investing in exchange traded funds (ETFs) for the first time, plus some direct shares as well.

Obviously, I'd like to end up in the green, but more than that, I want to become a confident investor and understand what actually moves the market.

What investing experience do I have?

To be fair, I'm not a complete beginner, even though my feeble attempts to understand shares and ETFs over the years mostly exist in the form of dusty, unread books on a shelf.

These were classics handed down by my mum, who I suspect never read them either.

I'm talking popular titles like Rich Dad, Poor Dad and The Warren Buffett Way. If it's any consolation, I have actually read The Barefoot Investor... almost to the end.

Our late grandparents also left my brother and I around $3000 in IAG shares, which have seen about as much growth as my failed Ford Falcon drift car project investment.

Even my bricks and mortar investment wasn't a fantastic one. Granted, I wasn't expecting a two-bedroom unit in Western Sydney to increase in value exponentially.

How I invested my first $15,000

But let's move past this self-inflicted humiliation ritual and get started.

Modern investing apps and websites like eToro are surprisingly easy to navigate once you spend five minutes setting up an account.

Within 15 minutes, I'd already set up my first two buy orders following some helpful tips from eToro's lead analyst Josh Gilbert.

The first was about $5000 into State Street's SPDR S&P 500 (SPY), a broad option Gilbert says has a solid track record with steady growth.

Why I chose an ETF

I chose an ETF for the diversity it offers - instead of buying shares in just one company, an ETF combines multiple companies.

I landed on State Street's SPY because it comprises the best performers - Nvidia, Meta, Microsoft, Amazon, and Tesla - and smooths out the more dramatic ups and downs of direct shares.

Why I bought Apple shares

To compare the experience and performance of an ETF, I also bought direct shares, namely about $10,000 in tech giant Apple (AAPL), which is undergoing a period of significant change and has just released its first foldable smartphone.

As someone with minimal investment know-how and a chunky HECS debt, it's a decent start but there's plenty more to learn.

I'm sure I'll be spending plenty of time in the State Street ETF Education space and also the eToro Academy, which offer free resources to learn about financial markets, trading strategies and asset classes.

If all else fails, at the very least, I'd like to be able to hold a conversation with a finance guru without having to constantly ask what they're talking about. Stay tuned to see if I succeed or find a car to invest in instead!

Next in Diary of an ETF Beginner: My first investments are in! I'll reveal how my ETF and Apple shares performed, what surprised me most, and the lessons I've learned after my first few weeks in the market. Check out part 2.

Could the next financial crisis already be sitting inside your superannuation account?

It sounds alarmist, but regulators are increasingly asking the question as Australia's private credit market has grown to around $250 billion.

What was once a niche corner of finance has become one of the country's fastest-growing sources of funding.

Most Australians have probably never heard of private credit. Yet many could already have exposure through their superannuation. ASIC has repeatedly highlighted the growing connection between private credit and the super sector, warning investors to better understand the risks involved.

The recent collapse of Bathla Group, which entered administration owing approximately $3.4 billion to creditors, has thrust those risks into the spotlight, but Bathla is not the real story.

The real issue is that many of the conditions that could place pressure on private credit are already emerging.

Interest rates remain elevated, inflation has proven more persistent than many expected, construction costs remain significantly higher than before the pandemic and parts of the property market are beginning to soften.

At the same time, developers who borrowed heavily during years of ultra-low interest rates are being forced to refinance at much higher borrowing costs.

That matters because more than half of Australia's private credit lending is tied to property development and construction.

In a rising property market, those risks can remain hidden. However, when borrowing costs stay high, property values soften and developers struggle to access fresh funding, pressure begins to build across the entire system, and that is where the risk to superannuation begins.

Australia's $250 billion private credit market has never been tested by a severe downturn at anything close to its current size. If several major developers fail within a short period, fund managers may be forced to write down the value of their loans.

Those write-downs could then trigger redemption requests from investors seeking to reduce their exposure.

The problem is that many private credit assets cannot be sold quickly or easily. What appears liquid in good times can become extremely illiquid in bad times.

When investors want their money back, someone has to buy the underlying assets. If there are few buyers, prices can fall rapidly, forcing further write-downs and creating a self-feeding cycle.

Sound familiar?

The Global Financial Crisis in 2008 was not simply about falling property prices. It became a crisis when investors realised much of the property-linked debt they owned was worth far less than expected and there were very few buyers when everyone wanted to sell.

Today, ASIC is warning of the sector's "first significant cracks", while the Reserve Bank has raised concerns about transparency, leverage and visibility of risk within private credit markets.

So, the big question is: are the same ingredients that fuelled the GFC beginning to emerge again?

Higher interest rates, refinancing stress, weakening property markets and growing private debt are already putting pressure on borrowers. If those trends continue, the real risk is that Bathla won't be remembered as an isolated collapse, but as the first domino to fall.

Best and worst sectors

Energy was the best-performing sector this week, rising more than 3% as escalating Middle East conflict pushed Brent crude above US$100 a barrel.

Supply disruptions supported oil prices, providing a tailwind for Australian oil producers.

Utilities gained 0.27% as investors sought more defensive businesses while the broader market sold off.

Materials rounded out the top three, down 0.29%, as the broader sell-off caught major miners amid inflation and interest rate concerns. However, record copper prices supported miners earlier in the week, helping cushion the sector's decline.

At the other end of the market, Information Technology was the weakest sector, falling more than 6% as rising oil prices fuelled inflation and interest rate fears, weighing on sector heavyweights such as Xero and WiseTech.

Consumer Discretionary was the second-worst sector, dropping more than 4% as higher fuel costs and interest rate fears threatened household spending.

Consumer sentiment also dropped 5.2%, adding to concerns that Australians would cut back on non-essential purchases.

Consumer Staples rounded out the worst performers this week, falling more than 3% as it was caught in the broader sell-off, with oil-driven inflation and interest rate fears weighing on shares.

Best and worst stocks

Whitehaven Coal led the ASX Top 100 this week, climbing more than 5% as Middle East energy disruptions supported the outlook for coal demand.

The IEA now forecasts record global coal consumption in 2026, reinforcing that backdrop.

Downer EDI followed, rising 3.92% as ongoing share buybacks may have helped support its rise this week, with the company reporting further purchases of its own shares.

Santos rounded out the leading performers, gaining 3.9% as escalating Middle East tensions pushed oil prices higher and supported its earnings outlook.

At the other end, Xero was the weakest performer, falling more than 13% as oil-driven inflation and interest rate fears weighed on technology stocks.

Higher rates reduce the value investors place on future earnings, pressuring growth companies such as Xero.

Westgold Resources followed, falling more than 10% despite a strong week for gold stocks.

Having outpaced the gold price in recent weeks, its pullback could reflect short-term profit-taking rather than a more serious change in trend.

WiseTech Global rounded out the worst performers, falling 9.87% and getting caught in this week's retreat from growth stocks as rising oil prices reignited fears of further rate hikes.

All Ordinaries Index update

The All Ordinaries Index sold off again this week, falling more than 2% by Thursday's close as escalating conflict in the Middle East and rising oil prices weighed on sentiment.

The index is now sitting near the critical 9000 level, making this a genuine make-or-break point for the market.

The significance of 9000 goes beyond it being a major psychological support level. It also aligns with the longer-term uptrend established from the March 2026 low, which the market has respected ever since.

If buyers step in and drive a strong rebound, this decline may ultimately prove to be another healthy correction within the broader uptrend.

However, a decisive break below both 9000 and the uptrend would send a far more concerning signal.

Unsurprisingly, Information Technology led the market lower, falling more than 6%.

Technology is one of the market's more risk-sensitive sectors, making it particularly vulnerable when oil prices rise, uncertainty increases and investors become less willing to hold higher-growth stocks.

Next week should provide greater clarity.

The market will either find support and rebound or break lower, with the outcome potentially determined by events unfolding thousands of kilometres away. For Australian investors, 9000 is now the level that matters most.

In a matter of weeks, the Australian credit card landscape has undergone what is arguably its biggest shake-up in years.

Card providers, including all four major banks, have made significant changes to their credit card offerings - largely in the rewards space.

The reason? Some banks have pointed to the upcoming card surcharge ban, which will see both debit card and credit card surcharging outlawed from October 1.

Why some rewards cards no longer stack up

While providers haven't taken a uniform approach with their changes, Richard Whitten, money expert at Finder, suggests that there's been a substantial downgrade across rewards cards.

"Generally speaking, you're looking at higher annual fees, higher interest rates, lower earn rates and a winding back of complimentary insurances.

"In some cases, the value of redeeming rewards points has also been lowered.

"So far, one-off bonus point offers for new customers are still relatively high, but we may start to see those change too."

Given the extent of the changes, it's only natural that many people will be left wondering if their rewards card is still going to deliver enough value to justify its cost.

Here's how to work out if your current card still makes sense or whether an alternative option is worth considering.

Option 1: Keep a rewards credit card

While the changes that have already been announced are significant, Whitten says that it doesn't necessary mean that rewards cards are no longer valuable.

"You may find that your current card is getting a downgrade, but it may still be worth holding on to."

Cardholders may want to be proactive though. To start, Whitten suggests taking the time to review your current card to assess whether the benefits outweigh the costs.

That may involve looking at the points earn rate, bonus points and any additional perks (like travel insurance) attached to the card, then weighing those up against the annual fee and other potential costs like the purchase rate.

Whitten also recommends heading to the online shop linked to the rewards or frequent flyer loyalty program you're in order to ensure that the points themselves are worth the effort.

"Obviously different things have different values, but you'll want to work out how many points a flight upgrade or a $100 gift card will cost you.

"From there you'll need to think about how many points you are going to be able to earn with the card in a year and how the real value of those points compares to the annual fee.

"If the value you can get from your points is more or similar to the annual fee, then it might be worth it - especially when you factor in other benefits like airport longue passes or travel insurance."

Ultimately, if the numbers don't stack up, then it may be time to consider another reward card, or a different type of credit card altogether.

Option 2: Switch to a no annual fee credit card

Recent research conducted by Finder on the upcoming card surcharge ban found that one in three Australians would cancel their credit card if their provider increased their annual fee.

The good news for cardholders who aren't keen on the idea of higher annual fees - or annual fees at all - is that there are a number of fee-free options on the market.

While these cards don't typically come with rewards or premium perks, they may be a good fit for those who like the convenience of a credit card without the ongoing cost.

"A no annual fee card is the cheapest possible option for someone who pays their balance off each statement period," Whitten says.

"So, if you're just using your card to cover everyday expenses and you manage it properly, there's no difference to a debit card in terms of cost, but a credit card obviously has that extra flexibility."

Option 3: Choose a low rate credit card

Another option is to prioritise finding a card with a comparatively low purchase rate.

"A low rate card may be useful for someone who doesn't always pay off their balance from statement to statement - who might carry a balance and pay some interest," Whitten explains.

"These cards tend to have interest rates around 8% p.a. to 13% p.a., but that's much better than the more expensive cards which can be as high as 24% p.a."

Whitten says that while most of these cards do tend to have annual fees under the $100 mark, there are also a handful of options that feature both a low rate and zero annual fee.

Option 4: Choose a balance transfer credit card

For cardholders wanting to banish any card debt they're carrying for good, a credit card with a balance transfer offer may be another option worth considering.

A balance transfer allows debt to be shifted from an existing card (usually one with a high interest rate) to a new card offering a low or zero-interest offer for a set period (generally six to 24 months).

In theory, these offers can be useful in helping cardholders pay off their debt sooner without accruing additional interest.

However, they aren't risk-free. Some providers charge an upfront fee to facilitate the transfer, and once the offer period ends the interest rate will typically jump much higher.

The promotional rate also usually only applies to the transferred debt, not new purchases.

That's why it's often recommended to treat a balance transfer card as a debt repayment tool rather than as a card for everyday spending.

Before switching, consider the features that will benefit you the most.

You've come across an investment fund online with impressive historic returns. Or perhaps it's a financial advisor on social media whose content resonates with you.

In a world where investment scams, cloned websites and online impersonators are common, it pays to proceed with caution - to be able to separate legitimate financial providers from fraudsters.

The question is, where can you start? One piece of information can help.

It's not the rate of return on an investment or someone's Instagram follower count - it's an Australian Financial Services Licence (AFSL).

What is an AFSL?

Issued by the Australian Securities and Investments Commission (ASIC), an ASFL is a mandatory requirement for individuals or businesses wanting to conduct financial services in Australia.

That includes everything from providing financial advice to managing investments and offering services related to superannuation.

Before granting a licence, ASIC will assess whether a business has the financial resources and competency needed to provide services in a particular area.

However, it's important to note that it's not a seal of approval from the regulator, nor is it a guarantee of the quality of the advice or products being offered.

The rules financial providers must follow

Obtaining an AFSL isn't a one-off exercise. Once licensed, businesses have a number of ongoing responsibilities that differ based on the specific services or products they offer.

The list of obligations is extensive, but it includes maintaining risk management systems, holding appropriate insurances, being in good financial standing and ensuring that staff and representatives are adequately trained and monitored.

Most licensees also need to become members of the Australian Financial Complaints Authority (the ombudsman that deals with consumer and small business complaints), in addition to having any required internal dispute resolution systems in place.

Ultimately, ASIC says that ASF licence holders have a general obligation to provide efficient, honest and fair financial services.

How to check if your provider has an AFSL

Fortunately, ASIC's Professional Registers Search makes it easy to find out whether or not a business holds an AFSL, as well as the kind of services they are licenced to provide.

To conduct a search, you'll need the name of the business, licence number, registration number, Australian Company Number (CAN) or their Australian Business Number (ABN).

You can even search the register by AFSL number in order to confirm that the AFSL that a business is advertising is still active or actually linked to them.

ASIC has also recently started publishing website addresses of AFSL holders in the register in order to help Australians differentiate between genuine and imposter websites.

How an AFSL check can help you avoid scams

At the end of the day, consumers may still be unhappy with a service or product they are provided by a business holding an AFSL. A licence alone isn't a guarantee of quality in that respect.

Nor does the presence of an AFSL eliminate risk. For instance, some of the advice businesses that allegedly encouraged clients to invest into the First Guardian and Shield funds held licences.

What using ASIC's register to confirm that a business has a legitimate AFSL can do is help Australians identify potential scams or impersonations before it's too late.

Thirty-five per cent of Australians are aiming to retire with over $1.25 million in superannuation, according to new data from MLC.

But experts are urging Aussies to think about whether they really need to save this much, as most will get financial help from the government in retirement and won't have to rely solely on their super.

MLC admits the $1.25 million target is "highly ambitious" and would translate into an income of $83,000 per year in retirement.

The super fund says that's enough for a "champagne" lifestyle with lots of travel overseas and in Australia.

"They are quite aspirational targets," notes Jenneke Mills, head of technical services at MLC.

"They are quite a bit higher than what ASFA (Association of Superannuation Funds of Australia) has suggested in the past".

Not all of the 2500 people who responded to MLC's survey had set targets as high as those of their peers.

Thirty-one per cent said they would be happy with a super balance between $751,000 and $1.25 million.

Meanwhile, 34% were confident a nest egg of less than $750,000 would be enough for their retirement.

Do you actually need $1.25 million in super?

Super industry groups like ASFA and consumer advocate Super Consumers Australia (SCA) say Australians shouldn't feel pressured to try and build a super balance of over one million dollars.

"You don't need anything like those levels in order to live a happy, comfortable retirement," says SCA CEO Xavier O'Halloran.

Both SCA and ASFA say a super balance of only a few hundred thousand dollars is enough for a single person to enjoy an at least modest, if not comfortable, retirement.

Mills says Australians do tend to overestimate how much super they'll need and says this might be because many don't realise they'll also be able to draw on the age pension once they retire.

"Some Australians who don't necessarily understand that interaction can be planning for retirement by just looking at superannuation, without really understanding what other benefits they could become entitled to," she says.

Around 62% of Australians over the age of 65 receive a part or full age pension from the federal government, according to AustralianSuper.

For those living modestly with a relatively small nest egg, SCA analysis shows the age pension can pay for as much as 91% of retirement spending.

"It's actually a pay rise for a lot of people in retirement, compared to their working lives," O'Halloran says of the age pension.

"Retirement can actually cost a lot less than working life," adds James Koval, chief policy and advocacy officer at ASFA.

"[For example], when people are in retirement and accessing their super, they're not paying tax on that super pension income... tax is a cost that actually disappears".

In addition to a lower tax burden, retirees also enjoy discounts on a broad range of daily expenses, such as energy, medicine and transport.

So how much super do you actually need?

Mills says it's useful to think about how much you'll spend regularly in retirement and let that estimate dictate what size nest egg to aim for.

"We want people to understand what that lump sum translates to in terms of an income," she explains.

"Otherwise people... might be foregoing as much flexibility in retirement as they'd like and working longer when they don't necessarily need to".

ASFA updates its advice on how much you need for a "comfortable" or "modest" retirement every quarter.

To help consumers see where they might fit, it also gives an indication of how much you'd likely be spending per year living each way, while drawing on your super and a full or part age pension.

Put your age, income, current super balance and other details into Moneysmart's superannuation calculator to see how much you'll have saved by the time you retire.

See how your current balance compares by checking how much other people your age have in super.

Renting changes the game

But these recommended targets assume you'll own your home outright by the time you finish working.

ASFA and SCA warn you'll need significantly more super if you'll be renting or juggling housing costs in retirement.

In fact, ASFA says someone living up to its modest lifestyle benchmark while renting privately would need $340,000 in super - more than double what would be required for the same quality of life if they'd owned their own home outright.

When Qantas shareholders gathered in Melbourne in early November 2023 for the airline's annual general meeting (AGM), it was clear that it wasn't going to be a run-of-the-mill event.

After months of negative headlines surrounding flight delays, COVID credits and the multi-million dollar payout received by former chief executive Alan Joyce, shareholders were clearly fed up.

In a major backlash, nearly 83% of shareholder votes were cast against the company's remuneration report outlining how much the top executives and directors were paid.

The airline ultimately avoided a second strike in 2024, which could have resulted in a board spill, after major changes to its leadership team and a cut to the exit payout received by Joyce.

While the Qantas case is among the more high-profile examples because of the backlash it received, it's just one of the thousands of resolutions put to shareholders of Australian companies at AGMs each year.

From executive pay and board appointments to climate-related proposals, these votes can have significant consequences for companies and investors alike.

Boards and investors are only part of the story, though. Behind the scenes, proxy advisers and shareholder advocacy groups are also busy shaping the direction of Australia's largest businesses.

Welcome to proxy season.

What is proxy season and when does it happen?

In Australia, AGMs for listed companies tend to cluster in October and November.

This period, as well as the months leading up to it, is often referred to as proxy season.

Under the Corporations Act, public companies are legally required to hold an AGM within five months of the end of the financial year, which for many firms is June 30.

Increasingly, companies give shareholders the opportunity to participate in AGMs by attending in person or joining online.

But for those who can't, or don't want to, attend an AGM and vote on resolutions themselves, there's an alternative: proxy voting.

"A proxy allows a shareholder to appoint another person or organisation to attend and vote at a company meeting on their behalf," Rachel Waterhouse, chief executive of the Australian Shareholders Association (ASA), explains.

"The shareholder remains the owner of the shares and can either direct how the proxy must vote on each resolution or leave the vote open for the proxy to decide."

Proxy votes can be used by regular shareholders, but also by large institutional investors, such as superannuation funds and fund managers, with extensive holdings across companies.

Because of the scale of their holdings and the number of resolutions they have the chance to vote on, institutional shareholders often rely on third parties known as proxy advisers to research resolutions, evaluate issues and provide recommendations on how to vote.

What do shareholders vote on at AGMs?

AGMs provide shareholders with one of the main opportunities to have a say on resolutions put forward by companies, as well as proposals successfully placed on the agenda by shareholders themselves.

Common issues that come up for voting range from director elections to mergers, capital raisings and changes to a company's constitution.

But the topic that typically attracts the most attention, and often the most controversy, is executive remuneration.

This is partly because executive pay, bonuses and share options tend to be a relatable and attractive target for criticism among disgruntled shareholders.

But as Paul Murphy, head of governance advisory APAC at Georgeson, explains, it's also because of Australia's 'two strikes' mechanism.

"If a company gets more than 25% of the vote against the disclosure of how they do their executive remuneration, that's called a strike.

"If that happens at two AGMs in a row, a second strike, then the entire board could be spilled and have to go for re-election.

"It's become a bit of a generic protest vote for investors to push back on things that they don't like about companies."

While a first strike has no immediate consequences, even the prospect of a second strike is often enough to get a board's attention and precipitate change, as was the case following the Qantas AGM in 2023.

"You'll find that most companies are very keen to avoid getting a strike, or getting a second one if they've already had the first, because they attract a lot of media attention, so it's really a reputation management thing for them," Murphy says.

Another prominent voting issue for shareholders is the re-election of existing directors or election of new nominees.

Murphy notes that it's typical for board-nominated directors to receive about 95% approval, so anything significantly below that level can indicate shareholder dissent.

"It's a bit of a signal if a company is putting four directors up and three of them get 95% support and one gets, say, 75%, that there is something going on there.

"We'll typically attribute that kind of outcome to shareholders, especially institutional shareholders, holding an individual director accountable for something they're not happy with.

"That might be the diversity profile of the company, not having enough gender diversity on the board.

"Or it might be because they're the chair of, say, the remuneration committee, and investors are not happy with the remuneration structure."

How shareholder activists influence company decisions

Executive pay and board elections may attract the most attention during proxy season, but they're not the only issues that come before shareholders.

In some cases, investors themselves attempt to shape the agenda with their own resolutions.

"More broadly, shareholder proposals are something that we've seen a little bit of over the years in Australia," says Murphy.

"Often they've been put up by environmental activists or NGOs, most commonly around climate disclosure issues."

Pressure on companies to address issues such as climate change, environmental risk and other social concerns has come from both retail and institutional investors.

But much of the coordination and campaigning has been led by shareholder advocacy and activist groups.

One of the organisations at the forefront of efforts to push issues like these into the spotlight is the Australasian Centre for Corporate Responsibility (ACCR), which does everything from conducting research and analysis to filing shareholder resolutions.

But as ACCR co-chief executive Brynn O'Brien explains, shareholder activism isn't limited to focusing on high-profile AGM votes.

A significant part of the work involves engaging directly with companies throughout the year.

"ACCR has been a shareholder in some major Australian listed companies for over a decade: BHP, Rio Tinto, Woodside and AGL, to name a few.

"We meet fairly regularly with these companies, speaking to thematic experts, executives and board members. We share our views, we hear theirs.

"This is called engagement. Sometimes this influences how they're operating or making decisions, sometimes it doesn't. Many institutional shareholders engage in this way."

One notable example of shareholder influence that O'Brien points to is pressure that ACCR, along with a group of local and international institutional investors, applied to companies regarding their memberships of industry associations.

"Many people will remember the political instability of the 2010s when climate policy was repeatedly derailed and successive prime ministers lost their positions amid intense lobbying by fossil fuel interests.

"Some of the most influential industry groups, including the Minerals Council of Australia, were funded by companies such as BHP and Rio Tinto, even as those same companies were presenting themselves to investors as climate leaders.

"We were able to draw attention to that disconnect.

"Shareholder pressure drove companies to apply much greater scrutiny to the positions taken by those industry groups and, in some cases, to impose consequences when those positions diverged from the companies' own stated commitments."

What do proxy advisers do?

At the heart of proxy season is another set of influential players: proxy advisers.

Global firms like ISS STOXX, the parent company behind Money magazine, and Glass Lewis, as well as Australian firms such as Ownership Matters, all provide these services.

"Fundamentally, proxy advisers serve institutional investors by doing the background research to support voting recommendations at company meetings, not just AGMs, but also things like merger transactions where there's going to be a shareholder vote," Murphy explains.

This doesn't mean institutional investors such as super funds and fund managers are handing over their voting decisions.

Rather, they're outsourcing the research that informs those decisions.

"If you were to ask the really big investors, they would say that they're using the proxy advice as a research input," Murphy says.

"It's not efficient for all of them to duplicate that research.

"There's just a lot of underlying data. So, it makes sense to neutralise that factual research element and have a proxy adviser do it, rather than each investor having to duplicate that effort themselves."

So how do proxy advisers arrive at the recommendations they make?

According to Murphy, each adviser has clear guidelines that set out how issues should be assessed.

"There would be statements of principle about how they define when a director is independent, or around director capacity and overboarding risk, or around the practices companies should follow in their remuneration disclosure.

"These kinds of issues tend to be codified into policies, which then drive the way proxy advisers issue research recommendations."

Proxy advisers have courted controversy in recent years, particularly in the United States, with critics suggesting they wield too much influence over how investors vote.

But Murphy says it's important to remember that proxy advisers don't operate in a vacuum because the frameworks they use are developed alongside their clients.

"The policies they operate under are developed in consultation with their subscribers, the institutional investors.

"So you wouldn't be surprised to see a fair bit of coincidence between proxy adviser recommendations and voting decisions.

"I think that's a bit different from saying that proxy advisers are unaccountable people who sit on the side and determine the way institutions are going to vote."

Why proxy season matters for everyday investors

Proxy season and the AGMs that dominate the calendar in October and November provide investors, even those with relatively small shareholdings, with an opportunity to engage with the companies they own.

"It's not just about voting, but turning up and listening to the people that are leading your company and making sure that you're comfortable, as an investor, with the strategy and the way ahead," Waterhouse says.

"It's not to everyone's interest, but we are very passionate about this because we think retail investors should care and should vote."

What many shareholders may not appreciate is that, in addition to voting, they have a number of rights they can choose to exercise during AGM season.

"Some rights can be used individually, like voting, nominating directors or asking questions. Some are collective rights, like filing shareholder resolutions and members' statements," explains O'Brien.

"These rights and the expression of shareholder voice that goes along with their use contribute to a healthy corporate governance environment and a well-functioning market.

"If companies or governments try to erode these rights, AGM season is often where that becomes most visible."

As the Qantas case demonstrated, when there's enough shareholder engagement and passion directed towards a particular issue, it can force a company to listen and act.

While direct shareholders may be the only people able to vote on resolutions, they're by no means the only ones impacted by decisions made at AGMs and other shareholder meetings.

Australians with money invested through exchange traded funds or superannuation often have a stake in the same companies, meaning the outcomes can also affect their portfolios and returns.

How to vote and participate in AGMs

The reality is that many Australians who own direct shares simply aren't engaged or interested in the companies they're invested in, beyond the returns they provide.

According to Waterhouse, the proportion of people who take part in AGMs or vote on resolutions is very low.

"You can probably understand that. AGMs are quite long and they're often held on weekdays.

"I went to the Woolworths AGM last year and it went for five hours, so anyone working that day wouldn't have been able to attend."

As the 2026 proxy and AGM season draws closer, Waterhouse has some recommendations for everyday shareholders interested in learning more about the companies they own and engaging more actively with them.

As a first step, she suggests reading company communications.

Annual reports, which provide shareholders with a snapshot of how a company has performed and where it's headed, are typically released during the August reporting season.

It's also worth keeping an eye out for AGM notices that contain information about the timing, location and agenda.

When it comes to the AGM itself, attending in person can be beneficial, but companies are increasingly offering online participation options.

Finally, Waterhouse strongly urges shareholders to consider voting on company resolutions, whether at an AGM or at meetings throughout the year.

Shareholders can also appoint a proxy to vote on their behalf.

That could be an individual they provide directions to, or an organisation such as the ASA, which researches companies and publicly discloses how it intends to vote ahead of time.

"We have a group of somewhere between 100 and 120 volunteers who read annual reports, meet with company chairs and then turn up at the AGM and ask questions," Waterhouse says.

"We also put together a voting intentions report that we make public, whether you're an ASA member or not. This way you can see the way we want to vote.

"So, if you choose to give your proxy to us, your vote will reflect how we see a company, and that's led by the members and investors reviewing it."

Whether it's actively participating in an AGM or simply skimming through the latest annual report, Waterhouse believes becoming more engaged will ultimately benefit many investors.

"By finding a little bit of time to engage with the companies you own, you will only become a better investor.

"And if you're not comfortable with where the company is heading, then you can always move away from it."