The most common financial mistakes Australians make include failing to stick to a budget, not building an emergency fund, keeping outdated financial products, misunderstanding their home loan, being underinsured, neglecting their superannuation and taking on too much debt.

The good news is that avoiding some of the most common mistakes can put your finances on a much stronger footing.

From budget blowouts and debt spirals to forgotten super and insurance gaps, here are seven financial horrors that could come back to haunt you, and how to avoid them.

1. The budget blowout: why budgeting mistakes can cost you money

A budget is only useful if you stick to it.

If you've gone to the trouble of working out where your money should be allocated in any given month, it would be a shame not to put it into use.

If you don't have a budget at all, then this is certainly a good place to start.

Understanding the comings and goings of your finances is imperative to good money management.

Remember, the aim of the game is simple: don't spend more than you earn.

If you're looking for a budget planner to help you get started, ASIC's MoneySmart website offers a comprehensive calculator.

You can save it online or export it, so you can come back and review/adjust frequently.

2. The vanishing emergency fund: why emergency savings matter

Building your savings is essential.

If you're living from payday to payday, you're leaving yourself exposed.

Unexpected expenses can arrive at any time, whether it's a car repair, vet bill, medical expense or sudden loss of income. Having an emergency fund can help you avoid relying on credit cards or personal loans.

The trick is to set a regular savings schedule and keep it consistent.

The amounts you contribute may vary depending on what you have available; just remember that a little goes a long way, so contributing even a small amount is better than nothing at all.

3. The outdated money trap: outdated financial products can cost you money

Many of us have different products and accounts when it comes to our finances - personal loans, home loans, credit cards, savings accounts, transactional accounts, insurance, superannuation, to name a few.

It can be hard to keep track of them all, which is why reviewing them regularly can be tricky.

The fact of the matter is that our circumstances and the market change but our financial products often stay the same. It's worth doing a regular review of all the products and accounts you have to make sure they are still relevant.

There might be better, newer ones now.

Or your current providers might be willing to give you a better deal if they know you're scouring the market; it never hurts to ask.

Many Australians stay loyal to transaction and savings accounts that pay very little interest, potentially missing out on higher returns available elsewhere.

If you want to compare products, try using a comparison website such as Canstar, Mozo or Finder.

4. The home loan horror: home loan mistakes that could increase your repayments

According to Mortgage Choice's 2025 Home Loan Report, more than half of borrowers (57%) wish they had done more homework before choosing their first home loan.

That's a concern given a home loan is often the biggest financial commitment Australians will ever make.

Yet many borrowers focus solely on the interest rate and overlook features that could save them money or provide greater flexibility.

A home loan is one of the biggest financial commitments you'll ever make.

It's worth taking time to understand exactly what you're signing up for.

Beyond the interest rate, features such as offset accounts, redraw facilities, extra repayments and refinancing options can make a significant difference over the life of a loan.

5. The insurance shock: the risks of being under-insured

We never want the worst to happen but that doesn't mean you shouldn't plan for the worst.

Leaving this to chance is a risky decision. When it comes to insurance, it's worth taking a two-pronged approach.

First, you need to make sure you have all the relevant insurances for your circumstances.

The main ones to consider include home and contents insurance, car insurance, health insurance, total and permanent disability insurance (TPD), income protection and life insurance.

Next you need to make sure you have sufficient coverage.

If your insurance doesn't cover you fully it's somewhat redundant. Be sure to speak to a professional adviser if you need help determining the appropriate cover for you.

Being underinsured can leave you financially exposed when you need to make an insurance claim, potentially costing thousands of dollars out of your own pocket.

Reviewing your insurance annually is a must.

Your situation can change significantly over 12 months and you don't want to get caught with outdated insurance.

6. The retirement nightmare: superannuation mistakes to avoid

Apart from the family home, superannuation is likely to be one of the biggest assets you own.

But it can be hard to plan for something so far into the future, especially when life gets in the way and current priorities take centre stage.

Getting to post-work life and realising you don't have enough superannuation can be extremely stressful. It's time to stop taking a passive approach to your superannuation.

Regularly reviewing your superannuation can help reduce unnecessary fees and ensure your investment option remains suitable for your age, goals and risk tolerance.

There are simple ways to improve your future financial outlook:

• Consolidate your super accounts if you have more than one - this means you won't be hit by multiple fees;
• Take advantage of tax concessions and salary sacrifice options and top up your balance with personal contributions;
• Get a check-up to ensure your investment option is the right one for you and the stage of life you're in. For example, if you're younger and at the start of your career you might decide to take a riskier long-term investment option, whereas if you're close to retirement you might want to consider a safer option. This will depend on your individual circumstances and risk appetite.

7. The debt spiral: how to avoid excessive debt

We will all have debt in some form or another throughout our lives.

And true, there's good debt (your mortgage) and bad debt (your credit card) but once we start down that track it can be a slippery slope.

Keeping debt in check doesn't have to be difficult; there are simple ways to help manage your expenses.

For instance, limit the number of credit cards you have.

If you don't have automatic payments, set reminders in your calendar for when your repayments are due, pay more than the due amount if you can, and try consolidating your debt to make it easier to manage.

NEXTDC shares plunged more than 40% after delays in upgrading electricity at its Melbourne facility forced it to cut its earnings forecast.

Firmus scrapped its proposed IPO, while South Korean operator Elice fell 32% on debut, before recovering the losses the following day.

These setbacks raise a question: is demand disappointing, or is the industry struggling to deliver enough capacity?

Australia has been here before. During the mining boom, ships queued outside Newcastle and Dalrymple Bay because export infrastructure struggled to keep pace.

Customers wanted the resources, but getting them to market was another matter.

Those bottlenecks did not end the boom. Investment expanded infrastructure, and by 2010 the Reserve Bank reported higher iron ore and coal export capacity.

The comparison offers a reason to remain constructive on data centres. A delayed electricity connection does not, by itself, mean demand has disappeared.

The International Energy Agency expects global data-centre electricity consumption to nearly double, from 485 terawatt-hours in 2025 to 950 by 2030.

Australian research forecasts consumption will nearly triple, from 5.2 terawatt-hours in FY26 to 15.8 by FY30.

But forecasts alone cannot pay the bills. Construction and financing costs can accumulate while revenue waits.

The RBA has warned that debt-funded AI projects could struggle if demand disappoints or adoption takes longer than expected.

For NEXTDC, Macquarie Technology Group and Goodman Group, investors should therefore watch customer commitments and funding alongside construction milestones.

Customers staying committed through delays would support the argument that revenue has been postponed. Cancellations or reduced requirements would suggest something more troubling.

I think infrastructure constraints are insufficient evidence to declare the boom is over.

The mining experience shows an industry can build through bottlenecks when demand persists, although that does not guarantee every project or share price will recover.

Ships waiting offshore helped explain why Australia needed more export capacity. For data centres, the equivalent test is whether customers will still be waiting when the power finally arrives.

Best and worst sectors

Communication Services is the best-performing sector so far this week, rising 2.86% on the back of strong gains in Telstra and TPG, with investors looking for some buy-the-dip type opportunities.

Industrials gained 2.56%, driven by Cleanaway's takeover offer, which sparked a roughly 20% jump, which helped lift the sector.

Financials rounded out the top three, up 1.78%, as the major banks continued to rebound, while takeover interest in Challenger provided support.

At the other end of the market, Information Technology is the worst sector so far this week.

It fell more than 4% as NEXTDC's earnings downgrade compounded an ongoing global sell-off in technology and AI stocks.

Materials was the second-worst sector, dropping 4% as falling gold stocks and renewed weakness in major miners weighed on the sector.

Energy rounded out the worst performers this week, falling 1.09% as oil pulled back and immediate Middle East escalation fears eased, pressuring energy shares later in the week.

Best and worst stocks

Cleanaway Waste Management led the S&P/ASX Top 100 this week, climbing more than 21% after agreeing to an EQT takeover valuing the business at approximately $9.3 billion, including debt.

Challenger Limited followed, rising more than 18% after Daiichi Life proposed an $11.80-a-share takeover, roughly 20% above its previous closing price.

Pro Medicus rounded out the leading performers, gaining more than 10% after securing two seven-year US contracts worth a combined $67 million with Billings Clinic-Logan Health and Virtua Health.

At the other end, NEXTDC Limited was the weakest performer, falling more than 37% after delayed electricity connections at its Melbourne M3 facility forced an earnings forecast downgrade.

Telix Pharmaceuticals followed, falling more than 13% after its quarterly update showed a modest sequential revenue decline, disappointing investors despite a positive full-year outlook.

Regis Resources Limited rounded out the worst performers, falling more than 10% as rain-disrupted production and higher unit costs overshadowed strong cash generation in its September-quarter results.

All Ordinaries Index update

The All Ordinaries Index has barely moved this week, slipping just 0.26% so far as it holds above 8,830.

For the past month, the index has traded in a tight range, hinting at a breakout one week and a fall the next.

This week's action tilted the balance slightly towards further weakness, although recent trading has shown how quickly that picture can change.

However, one potentially encouraging difference stands out: this is the first week in that range that the index hasn't retested 8,800.

If the market rises from here and breaks above 9,000 points, it suggests buyers are becoming more confident and stepping in earlier, rather than waiting for another return to the lows.

Seasonality also makes the next two months worth watching.

Materials typically strengthen through November and December, while Financials tend to soften in November before regaining strength in December.

Given their substantial influence on the Australian market, these sectors could determine whether the index finally escapes its range.

If Materials strength is offset by Financials weakness next month, the market could remain stuck a little longer.

December may offer a better opportunity for a Santa rally if both sectors begin moving in the same direction.

1. Scam complaints up and more on the way 

The national finance ombudsman has received its most complaints ever, including a growing number of concerns about scams.

The Australian Financial Complaints Authority (AFCA) will soon be helping even more scam victims, as it takes on a new role making sure Aussies are protected from online cons.

AFCA received almost 120,000 complaints in the year to June, including 6,706 about scams.

Scam complaints were up 12% from the previous financial year.

AFCA says these criminal schemes are becoming more sophisticated and taking longer to unravel.

But the independent resolution service could soon be hearing from even more victims.

AFCA already mediates between banks and scam victims and orders institutions to pay compensation where required.

But from March next year, the organisation will be tackling cases involving telcos and digital platforms as well.

These industries, along with banks, will be required by the government to meet new standards to protect Aussies from scams.

AFCA will operate a dedicated Australian Scams Ombudsman to step in when consumers don't believe businesses are meeting these new expectations.

AFCA told Money it's too early to reliably predict how many scam complaints it will receive, but says it has invested in its systems and teams to prepare for its new role.

2. Community resistance sinks another AI business 

Another Aussie data centre company has run into trouble on the share market, after a backlash from residents delayed expansion plans.

The price of shares in NextDC slumped more than 40% earlier this week after it predicted smaller profits due to a delay in getting electricity to one of its data centres.

The company is expanding its M3 facility in Melbourne and needs new power poles to be installed along suburban streets leading to the building.

They're significantly higher and wider than traditional poles and residents have been campaigning against having them put in outside their homes.

Earlier this month, the ABC reported locals were deliberately parking their cars along the street to prevent power company workers from installing the poles.

It comes after fellow data centre business AirTrunk delayed plans to sell assets on Singapore's stock exchange and Firmus pulled out of floating on the ASX, as investors question the numbers behind the AI boom.

3. Should the GST be higher?  

How would you feel about paying a bit more for (almost) everything?

Former politicians and advocates are calling for Australia's GST to be raised to 15%.

They say it would be a more effective way of tackling national debt and keeping up with growing healthcare costs than relying on income tax.

RMIT tax expert Dr Venkat Narayanan agrees it's a debate Australia should be having.

"The GST is a much more stable source of revenue for government," he explains.

"Particularly with ageing populations and changing demographics."

Think tank the Grattan Institute predicts state governments could soon struggle to pay for the increase in older Aussies retiring from work and needing more care.

It says a 15% GST would deliver them the money to do this and allow all governments to reduce their debt in preparation for big crises like the Covid pandemic.

Australia's current 10% tax is almost half the average rate seen in similar economies.

Dr Narayanan says increasing consumption levies is a "bread and butter" reform overseas and that Australia is unusual in having never raised its GST.

He adds that such a move would be accompanied by income tax cuts for lower earners.

But admits sensitivity to the cost of living means Australia's consumption tax is unlikely to be raised any time soon.

"There would be an almost 0% chance of this happening in the next six to 12 months," he says.

4. Bad news for Aussie fashion as shoppers get refunded

Several Aussie clothing labels have come in below online giant Shein in a global ranking of ethical fashion practices.

The latest industry scorecard released by Baptist World Aid put brands like Billabong, Quicksilver and Seafolly below the fast fashion pioneer.

Baptist World Aid gave hundreds of fashion labels a rating out of 100 for how well their parent companies ensured ethical and environmental sustainability across supply chains.

Shein was given a score of 28. Boardriders, the company behind Billabong, Quicksilver and other brands, was given a score of just three.

Meanwhile, another Aussie label has made the news this week for better reasons.

The new leaders of activewear brand Stax announced they would issue store credits to customers who had missed out on orders after the company collapsed in June.

The brand won praise for the gesture -- something leaders told Nine Newspapers they weren't legally obliged to extend, but had decided to anyway.

5. More competition coming to new airport 

Last month, we brought you news of cheaper flights in and out of Sydney thanks to the choice being offered by the city's second airport.

Now, travelers could benefit from even greater competition with another airline announcing it'll join the roster, ahead of the airport opening to passengers on Sunday.

Qatar Airways revealed it will fly between Doha and the new Western Sydney International (WSI) from December 2027.

The carrier has become a familiar site at Australian airports in recent years, competing with major airlines on routes to Europe via the Middle East.

Money revealed last month some flights were up to 50% cheaper to or from WSI than Sydney's existing airport, although the new facility is a greater distance from the CBD.

From hidden reserve prices to AI-altered rental listings, governments are introducing new rules designed to make the property market fairer and more transparent.

1. Buyers can now see a property's reserve price

This month, Victoria brought into force new rules requiring a person selling a property to be transparent about the lowest price they'll accept.

Sellers and their agents now have to share this reserve price with potential buyers seven days before an auction or fixed-date sale.

The state government is framing the reform as a crackdown on underquoting.

This is when an agent suggests a property will be cheaper than what they know it'll likely end up costing.

Dr Paul Harrison from Deakin University's business school says Victoria is the first state to require such transparency.

"It will certainly help buyers and I think it will actually help real estate agents as well," he says.

"It makes people feel more confident and I think you'll see more people genuinely being at auctions," he adds.

"[Real estate agents] will get people turning up who actually do want to buy."

Monica Rouvellas, a solicitor with Sound Counsel specialising in property law, says the change will help young people especially.

"A lot of first homebuyers spend $200 or $300 per property to do their research, only to go to an auction to find out that they're not even able to afford it," she says.

But Rouvellas also shares some of the concerns about the law raised by Victorian real estate groups.

In particular, the potential for it to deny sellers flexibility as they approach an auction date.

"If the reserve price is set too low and they need to update it, then they have to restart that seven days again," she notes.

2. AI-edited rental listings must be disclosed

From next year, landlords and agents in New South Wales will have to disclose when a rental advertisement has been altered with, or entirely generated by, AI.

It comes after Money has highlighted examples of real estate agents altering images of their properties to make them look more eye-catching.

In one case, a Queensland agency used digital tools to make it look like a property had a pool and water fountain that, in reality, didn't exist.

Dr Harrison from Deakin University says such tactics can cause potential renters to get emotionally invested in properties that aren't as good as they think.

He welcomes the incoming reform, but says agents putting a generic disclaimer acknowledging AI use won't help renters understand how exactly an image has been altered.

"They might think that once they disclose, they can do whatever they like and can put the responsibility back on the consumers," he says.

He wants the disclaimers to be more specific.

"It would be different if they actually talked about the change that was made," he argues.

"Like if it said the garden has been digitally-enhanced or the swimming pool or these windows do not exist".

3. Renters can transfer their bond to a new property

The New South Wales government is also making changes to its bond system it says will save renters up to $4000 every time they move to a new property.

The Smart Rental Bonds initiative came to life last month.

It allows renters whose security deposit has been lodged with Rental Bonds Online, the state's central holding facility, to transfer their bond from one property to the next.

New South Wales Tenants Union CEO Leo Patterson Ross says the initiative appears to be working well so far.

"It resolves a particular problem, which is when you are moving out of a home you usually have to pay for the bond at the next home before you get your old bond back," he says.

"So that means you have double the bond taken up in the system".

But Patterson Ross is critical of the $25 fee renters are being charged to use the scheme.

He also says his state could look to other parts of the country for ideas on how to better help people leasing a home.

"The ACT and Victoria are probably the two that have come the furthest and give the best deal [to renters]," he notes.

On the face of it, that seems like a lot. But it can disappear quickly.

That's why - if you're wanting to maximise your time away from work - it can be worth taking leave around public holidays and weekends.

The question is: when is the best time to do that?

From Easter to the King's Birthday, here are some of the best opportunities in 2027 to take annual leave.

Christmas and New Year (2026-2027)

• Potential break: 10 days
• Annual leave needed: Three days

Christmas is a little over two months away, which will no doubt be welcome news to Australian workers hanging out for a break.

Because of the way Christmas Day (December 25), Boxing Day (December 26) and New Year's Day (January 1) fall, it's possible to take a decent chunk of time off for very little leave.

Workers can enjoy ten consecutive days off from December 25 to January 3 by using three days of annual leave on December 29, 30 and 31.

Just remember, employees can be required to take paid annual leave during a summer shutdown if it's a reasonable request - even if they might not want to.

Australia Day 2027

• Potential break: Four days
• Annual leave needed: One day

The holiday period between Christmas and New Years never feels long enough, so why not give yourself something to look forward to by booking a long weekend at the beach in late January?

Australia Day (January 26) falls on a Tuesday in 2027, so all you'll need to do is take January 25 as annual leave to create a four-day weekend.

Need more of a break? Extended it to a nine-day holiday by taking January 25, 27, 28 and 29 as annual leave.

Easter 2027

• Potential break: 10 days
• Annual leave needed: Four days

Easter comes early in 2027, which means that the opportunity for a bumper break combining the Easter and Anzac Day public holidays won't work.

That doesn't mean that workers can't take a decent chunk of time off over Easter though.

Thanks to the Good Friday (March 26) and Easter Monday (March 29) public holidays, it's possible to engineer a ten-day break from March 26 to April 4.

All you'll need to do it take annual leave on March 30 and 31 as well as April 1 and 2.

Anzac Day 2027

• Potential break: Nine days
• Annual leave needed: Four days

Anzac Day (April 25) falls on a Sunday this year, which means different states and territories will be approaching it in different ways.

In South Australia, Tasmania and Victoria, it will only be observed on the Sunday. In Queensland and the Northern Territory, it will be shifted to the Monday (April 26).

In the ACT, New South Wales and Western Australia, it will be observed on the Sunday, but with an additional public holiday on the Monday.

What does that mean for people looking to take time off around it though?

In places where the Monday is a public holiday, workers can take April 27, 28, 29 and 30 as annual leave to create a nine-day break between April 24 and May 2.

King's Birthday 2027

• Potential break: Nine days
• Annual leave needed: Four days

The King's Birthday is held on June 14 in most parts of Australia (Queensland celebrates it on October 4 and Western Australia on September 27), which falls on a Monday in 2027.

This creates an opportunity for people to take a nine-day stretch off work in exchange for just four days of annual leave.

So, how does it work? Well, by taking June 15, 16, 17 and 18 as leave, workers will have nine consecutive days off from June 12 through to June 20.

Christmas and New Year (2027-2028)

• Potential break: 16 days
• Annual leave needed: Seven days

It may be well into the future, but for the more organised among us, it's worth thinking about the holiday period at the end of 2027 and start of 2028 now - especially if you're planning a trip abroad.

Funnily enough, Christmas Day, Boxing Day and New Year's Day all fall on a weekend.

That means there will be additional public holidays for Christmas Day and Boxing Day on Monday, December 27, and Tuesday, December 28, and one for New Year's Day on Monday, January 3.

Importantly for those looking to maximise their time away from work though, it means that they can have a 16-day break stretching from December 25 through to January 9.

To achieve that, you'll need to lodge an annual leave request on December 29, 30 and 31, as well as January 4, 5, 6 and 7.

State and territory holidays in 2027

Australian Capital Territory

• Canberra Day (March 8)
• Reconciliation Day (May 31)
• Labour Day (October 4)

New South Wales

• Labour Day (October 4)

Northern Territory

• May Day (May 3)
• Picnic Day (August 2)
• Christmas Eve - 7pm to midnight (December 24)
• New Year's Eve - 7pm to midnight (December 31)

Queensland

• Labour Day (May 3)
• Royal Queensland Show (August 11)
• Christmas Eve - 6 pm to midnight (December 24)

South Australia

• Adelaide Cup Day (March 8)
• Labour Day (October 4)
• Christmas Eve - 7pm to midnight (December 24)
• New Year's Eve - 7pm to midnight (December 31)

Tasmania

• Royal Hobart Regatta (February 8)
• Eight Hours Day (March 8)
• Easter Tuesday (March 30)
• Royal Hobart Show (October 21)
• Recreation Day (November 1)

Victoria

• Labour Day (March 8)
• Friday before the AFL Grand Final (TBC)
• Melbourne Cup (November 2)

Western Australia

• Labour Day (March 1)
• Western Australia Day (June 7)

Five common annual leave questions answered 

1. Can employers force employees to take annual leave? 

Yes, is the short answer. There are a situations in which an employer can compel a worker to take annual leave, such as during a shutdown period (e.g. over the Christmas break) or if someone has amassed an excess leave balance.

2. Will you keep accruing annual leave while you're on annual leave? 

Yes. You could be lounging next to a pool using annual leave and still be (slowly) building up your leave balance while you're away. It also continues to accrue while you're on sick or carer's leave, long service leave or even when you're on certain kinds of unpaid leave (such as jury duty).

3. Can you use sick leave for a mental health day? 

It's certainly possible to take time off for your mental health, but unless your employer provides dedicated mental health days, it will generally need to be taken as sick leave or personal leave.

4. Can sick leave be taken while on annual leave? 

It's not a situation anyone will want to find themselves in, but imagine travelling overseas for a much-needed holiday only to be struck down with the flu.

Burning through your precious annual leave while you're cooped up in bed doesn't sound much fun, so the good news is that it is possible to use your sick leave in that situation.

5. Can you take leave without pay or leave at half pay? 

It's possible, but taking leave at half pay or without pay may come down to an employers' discretion or the particular award someone is on. For example, the Fair Work Ombudsman says that some awards do allow employees to take leave at half pay.

Australians have more than $350 billion invested in more than 450 exchange traded funds (ETFs). New funds are being launched all the time and it's estimated that by 2027 Australian investors will be able to pick from more than 500 ETFs.

What's driving this growth, who are the main investors and how do you pick an ETF from the smorgasbord of available options? Let's take a look.

What are ETFs?

Australians have more than $350 billion invested in more than 450 exchange traded funds (ETFs). New funds are being launched all the time and it's estimated that by 2027 Australian investors will be able to pick from more than 500 ETFs.

What's driving this growth, who are the main investors and how do you pick an ETF from the smorgasbord of available options? Let's take a look.

ETFs are managed funds listed on the Australian Securities Exchange (ASX).

Your money is pooled with that of like-minded investors and spread across a range of underlying assets. The fund manager does the hard yards, creating and managing the fund's portfolio on your behalf and, in return, fund investors pay an annual fee.

Two game changers have made ETFs especially attractive: cheap online broking and the rise of 'index' investing, an approach also known as passive funds management.

ETFs charge super-low fees

With index investing, a strategy championed by fund manager Vanguard, the fund doesn't aim to beat the market. Instead, it aims to match the performance of a given market index.

This approach keeps costs down. As a result, ETF fees can be as low as 0.03%.

So if you have, say, $5,000 invested in an ETF, you could pay as little as $1.50 annually in fund fees.

Who's investing in ETFs?

Australian investors have flocked to ETFs, attracted to the low cost, diversification and low capital requirements they offer.

Rory Cunningham, senior manager of investment products at the ASX, says: "We are seeing strong momentum in the Australian ETF market, with an expanding range of products providing investors with greater choice and flexibility."

According to a Vanguard study, investors across the board are taking up ETFs, but it is younger Australians who are especially keen.

It turns out that one in four (26%) of all current investors holds units in ETFs, although this varies widely between generations.

As the chart shows, two in five (42%) Gen Z investors (14-29) hold ETFs compared with 36% of Millennials (29-44), one in five (19%) Gen X investors (45-60) and one in 10 (11%) Baby Boomers (60-plus).

Daniel Shrimski, Vanguard's managing director of Asia Pacific, explains the appeal of ETFs for young investors.

"Our research shows younger Australians are increasingly embracing investing and using ETFs. In many ways, they're recognising what Vanguard's founder Jack Bogle was talking about.

"They understand the importance of investing for the long term and keeping costs low. And to do that, they're not looking for a needle in the haystack, they're buying the whole haystack."

Shrimski adds that younger investors are using ETFs because they're simple, low cost and provide broad market exposure in a way that's easy to understand and stick with over the long term.

"We're seeing this trend in our own business, with strong growth in the number of younger Australians using ETFs to work towards their goals and build long-term wealth."

That said, Shrimski notes that ETFs are a simple, low-cost way for investors of all ages to build long-term wealth.

The four ETF families

A useful starting point in deciding which ETFs may suit your goals is being able to recognise the four main types of ETFs, bearing in mind there can be overlap between the different families listed below.

1. Core index ETFs

For many investors, a 'core and satellite' approach can be useful.

This involves holding key assets, such as Australian and international shares, at the heart of your portfolio, then adding smaller holdings in satellite investments such as niche or themed ETFs.

ETF manager Betashares found index funds remained the firm favourite among Australian investors in the first half of 2026, notching up $27.5 billion in inflows compared to just $2.4 billion across active funds.

Across these inflows, investors favoured international shares, which attracted $13.7 billion in investor money in the first six months of the year. This was followed by Australian equities ($8.8 billion) and fixed income ETFs ($4.7 billion).

Drilling down further, a handful of ETFs, all of which are index funds, led the field for attracting serious money during the first half of 2026.

2. Active ETFs

The rise of index ETFs has drawn attention to whether actively managed funds, which aim to beat the market, earn returns that justify their often higher fees.

The annual S&P SPIVA Scorecard, which tracks the performance of active fund managers, has consistently found that most actively managed funds fail to outpace the market. Plenty don't even match market returns.

The rate of outperformance generally declines over longer timeframes, such as 10 years.

Despite this, Darren Connolly, CEO of Investment Markets, believes both active and passively managed funds can have a place in portfolios.

"Passive ETFs remain a very effective, low-cost way to gain broad market exposure and are well suited as core portfolio holdings. Active ETFs can add value in areas where skilled managers have the opportunity to outperform or manage risk more effectively.

"The key is understanding what you're paying for and whether the strategy complements your overall portfolio."

3. Thematic ETFs

As the ETF market has become more competitive, several fund managers have branched out from the basics and launched ETFs based on specific themes.

These can range from the video game market through to the space economy.

Themed ETFs can give investors an opportunity to put their money into a trend or niche market they have a particular interest in or strong views about.

But not everyone is a fan.

Scott Phillips, chief investment officer of Motley Fool Australia and author of The One-Page Investing Plan, says: "I almost always eschew thematic and similar ETFs. Unless you've done the research on each of the companies in the ETF, how can you have a view on the value?"

Connolly, however, believes themed ETFs can be useful, but says they should generally "play a supporting role rather than form the core of a portfolio".

He adds: "Investors need to distinguish between long-term structural themes and short-term market excitement.

"It's easy to be drawn to a compelling story, but successful investing still comes back to diversification, discipline and maintaining a long-term perspective."

4. Specialty ETFs

One of the often-overlooked upsides of ETFs is that they have opened the door for retail investors to access markets such as government and corporate bonds, which can require significant sums if investing directly.

They also provide access to assets that can be difficult to trade directly, such as commodities or currencies.

There are also ETFs that invest in gold and cryptocurrencies such as Bitcoin.

Given the specialised nature of these ETFs, they can add to your satellite holdings but ideally shouldn't act as the core of a portfolio.

New trends in ETFs and the big drivers

Darren Connolly of Investment Markets says investors are increasingly using ETFs to express specific investment views, rather than just buying broad market exposure. That said, he reports seeing continued demand for income-focused ETFs as investors look for reliable cashflow in a higher cost-of-living environment.

"At the same time, AI and technology-related ETFs continue to attract attention," he says.

"While infrastructure and energy transition themes are gaining momentum as investors look for long-term structural growth opportunities."

Phillips has a more nuanced view. He suggests that some ETF providers create new ETFs "not because they think they'll be good for you, but because they think they can attract investors to invest in them".

"Sorry, ETF providers, but you know it's true," says Phillips. "That doesn't mean [these ETFs] can't be good investments - just remember the incentives at play."

He points to new trends such as AI, space, income - and previously, things like Bitcoin, lithium and renewables, that have been 'hot'. "Be careful about getting sucked into the hype," adds Phillips.

How to choose the 'right' ETF

With just a handful of ETFs, it's possible to put together a diverse portfolio. The question is, with hundreds of ETFs to pick from, how do you narrow down the choice? Here's what the experts say.

Connolly provides a basic framework. "Start with your investment objective rather than the ETF itself. Investors should understand what they're trying to achieve, whether that's long-term growth, income, diversification or exposure to a particular sector."

From there, Connolly suggests looking at factors such as the underlying asset holdings, fund fees, liquidity, how closely the ETF tracks its benchmark and whether it adds something to your portfolio.

Phillips says he applies three tests when it comes to picking ETFs. "I want them to be broad, index-based and low cost," he says. "That gives the best diversification and keeps one of the biggest drags - costs - from eating too much into your returns."

Does size matter?

The more popular ETFs in Australia tend to be the biggest and they're managed by the goliaths of the industry. At one end of the spectrum, the Vanguard Australian Shares Index ETF (VAS) muscles in at a hefty $27 billion.

At the other end, the ETFS Global Lithium Miners ETF (VOLT) weighs in at just $503,000. To be fair, VOLT gives exposure to global lithium mining companies so it has a far narrower focus than, say, VAS. Even so, size can matter.

Phillips explains that larger ETFs are likely, although not guaranteed, to have lower costs over time than their smaller counterparts. But when it comes to a fund closing its doors because it is small, he notes, "As long as an ETF provider is reputable, you will be able to redeem your units in the fund. There's no need to worry too much".

Phillips adds that a fund closure could "cause a tax event, but your capital should be secure".

Connolly believes larger ETFs "generally have stronger liquidity and lower closure risk", but he adds that a smaller ETF isn't necessarily a poor investment.

"Investors should also consider who the issuer is, the level of investor demand and whether the ETF provides unique exposure," says Connolly.

"While smaller funds are more likely to close, closures are usually managed in an orderly way and don't typically result in investors losing their capital."

Building a portfolio of ETFs 

Connolly says that while diversification is "one of the biggest benefits of ETFs", it is easy to accidentally double up on holdings.

He cites the example of an investor who may own an Australian share ETF and a dividend ETF, with each potentially holding many of the same companies.

"It's important to look through the underlying assets and ensure each ETF has a clear role within the portfolio, rather than simply adding more of the same exposure," he says.

Discovering what an ETF invests in is easy. Most list current holdings - and the proportion of the total portfolio they represent - on the fund's webpage.

Are some trends falling out of favour?

Phillips points out that while almost all ETFs are growing, changing trends and investor focus mean some are less popular than they were.

"ETFs focusing on cybersecurity, and sustainability, for instance, are attracting a lower share of new investment."

Connolly believes that some of the more niche, thematic ETFs that benefited from market hype have seen interest cool as investors refocus on the fundamentals.

"We're seeing a shift back towards diversified core exposures and strategies with clear long-term investment cases, rather than chasing the latest trend," he says.

Top five share trading platforms and their brokerage fee structures

If you have limited funds to invest in ETFs, two options may be worth a look:

• Micro-investing apps like Raiz and CommSec Pocket are backed by a basket of ETFs. You can get started from as little as $5 with the likes of Raiz or $50 with CommSec Pocket. The downside of such small amounts is that it's going to be a long road to build wealth.
• Low-cost platforms such as Vanguard Personal Investor let investors get started with smaller sums. With Vanguard, for example, you can invest with as little as $200 and pay $0 brokerage. While it's possible to invest in the top 300 ASX-listed shares with Vanguard Personal Investor, your choice of ETFs is limited to those managed by Vanguard.

If you prefer to directly buy and hold the ETFs of your choosing, you're going to need an online broker.

Setting up an account is easy. And to start trading you simply transfer money from your everyday account to your online broking account. Your first purchase of any ETF must be at least $500.

This is the 'minimum marketable parcel'. So you'll need at least this amount plus the cost of brokerage in your broking account.

From here you can usually top up your holdings with smaller purchases.

Some platforms charge $0 brokerage. It can sound like a good deal but you'll likely 'pay' in other potentially less transparent ways, such as less favourable buy/sell spreads, mark-ups on foreign currency conversions, inactivity penalties, or account maintenance fees. Opting for a broker that charges a set fee can make it easier to compare apples with apples.

That said, price isn't the only aspect to consider. How comfortable you feel with a broker's platform or app and the availability of the latest research can play a role in your choice.

Several of the big banks have online broking platforms of their own, and they have become more price competitive in recent years. nabTrade charges $9.95 for trades up to $1,000 on both ASX and international trades.

Westpac Share Trading charges $4.95 on local and overseas trades up to $1000.

CommSec charges $5 on trades up to $1000 but from there the price rises to $10 on trades worth $1000-$3000. Trades on global markets are priced at $US5 or 0.12% (whichever is greater).  That said, CommSec is currently offering up to 30 trades, brokerage-free for new customers.

About 25 years ago I swapped Sydney for the Upper Hunter Valley. The upsides are plentiful. A strong sense of community, less hustle and bustle, and vastly more affordable property prices.

Of course, there are downsides.

My nearest bank branch is a 45-minute drive away.

As a devotee of online banking, this is rarely an issue.

But there have been occasions when regional branch closures have proven costly and frustrating.

Several years ago, my (then) 16-year-old son was keen to take advantage of a St George promotion that saw new customers receive a $50 bonus deposit.

Fifty bucks is a lot when you're 16.

So, we made the 45-kilometre trek to our nearest major centre, where I recalled a St George Bank being located. What we found was a vacant office - the all-too common story of a branch closure.

Determined to score that $50 freebie, we checked the St George website, which showed a branch at the next big town, another hour's drive away.

Alas, we were met with the same 'was here, not here anymore' vibe. The St George sign was still above the entrance but the space was empty with a 'To Let' sign in the window.

Along with a waste of time and petrol, the whole pointless exercise spoke volumes about the bank's attitude towards regional customers. It hadn't even bothered to update its branch listings.

My son eventually opened an NAB account. The irony is that he is now completing a law degree, and will undoubtedly be courted by the major banks when he applies for a home loan at some future date.

Others will not be so lucky.

And that's where branch closures stop being an inconvenience and become a community problem.

The pensioner who isn't comfortable banking online, the social security recipient who can't afford to drive long distances to visit a branch, or the farmer busy with harvest who doesn't have a spare couple of hours for the round-trip into town - these are just some of the Australians who have to cop it sweet when regional branches shut their doors.

And plenty have closed for good.

The latest 'point of presence' data from bank regulator APRA, shows that between mid-2017 and June 2026, 901 bank branches were closed across regional and remote Australia - a decline of 38%.

The banks' plan to win regional Australia back

Westpac has paused regional branch closures until 2030. The Commonwealth Bank recently announced a similar moratorium.

However, in a new move, the Australian Banking Association (ABA) has lodged a proposal with the Australian Competition and Consumer Commission, that could see the major banks pool resources to set up shared regional banking 'hubs'.

These hubs, which may be located in council offices, libraries, Australia Post outlets, or operate out of modular 'bank in a box' units, could assist customers with what the ABA says are "basic banking needs".

In what may be unintended bush humour, the ABA cites an example of basic needs as "assisting with navigating online banking apps". That's despite the Telecommunications Industry Ombudsman saying poor coverage continues to be a common source of complaints among regional and remote Australians.

For complex banking requirements, the ABA is proposing staff at these shared hubs would help connect customers with their bank through telephone or video banking services. It's expected that staff would not advise on, or be able to sell, any bank products.

'We deserted them because they deserted us'

So, what do country folk think of the idea?

To find out, I ran a straw poll of locals, who uniformly met the hub proposal with a 'meh' response.

There's a good reason for this. Almost everyone I spoke to had simply moved on.

As the big banks closed their branches, townspeople took their business to the one bank that hadn't deserted town - Regional Australia Bank.

Across New South Wales, Regional Australia Bank has 38 branches, often in communities like my own, where the population is less than 2,000.

Elsewhere in Australia, other small member-owned banks and local credit unions are filling the gap left by the major banks.

As Sue Brax, a local teacher, put it, "We deserted the big banks because they deserted us."

A local dairy farmer, who'd come into town for some cattle drench, was scathing about the proposed banking hubs.

"So they expect me to stand in line to be shown how to use a banking app," he mused.

"They obviously don't know - or care - that we barely get internet reception out on the farm."

The banks may have left it too late

There's no doubt that operating a branch network can be expensive.

Yet small regional banks and credit unions manage to do it - often on profits far lower than the $11 billion reported by CommBank last financial year, or the $7 billion recorded by Westpac.

The lesson here is that regional Australians know loyalty when they see it.

Don't bank on them embracing what may be little more than a token gesture of customer service from some of the nation's wealthiest companies.

Reader question

My super regularly deducts premiums for death, TPD and income protection insurances.

I have had these set up for years and have never really looked at them. As I'm now over 50 and my kids are adults and (relatively) financially independent, should I stop some/all of these insurances? It would save me a lot each year.

I have a super account balance that is heading towards $800,000 and I'm regularly saving more into it outside payroll contributions.

I have an investment property that is only slightly negatively geared.

I have no other debt and my husband is financially independent with his own job, super and insurances.

Is this a way to save some money and keep more of my money earning and growing in super, rather than being sucked up by fees and charges? - Karen

Paul's response

The day I was able to cancel all my life insurance and income protection cover was a day I much enjoyed, Karen.

My wife and I were also around age 50 and when doing our 'financial security' numbers we realised that with three adult kids, no mortgage and little other debt, we no longer needed life cover.

Which, incidentally, was just as well as it was getting quite expensive.

Please do your numbers carefully, but with your large super balance, an investment property that is only slightly negatively geared and your husband also in a strong financial position, it seems to me you no longer need this type of insurance cover.

What to read next

• Why your TPD insurance claim could be rejected
• Super insurance premiums are rising - what you can do
• Why mental health battles are driving young Aussies out of work
• Life insurers can no longer use genetic test results against you
• Why your insurance through super isn't always enough

For many Australians, their mobile plan is just another expense that flows out of their bank account each month, alongside the likes of streaming subscriptions and energy bills.

But is there an alternative, and potentially cheaper, option to monthly phone plans? One that isn't as easy to set and forget?

While the upfront cost is greater, annual prepaid plans can be better value over the course of a year.

So just how cheap can annual phone plans be? And which mobile users could they prove to be a good match for? Here's what you need to know.

What is an annual mobile plan and how does it work?

Annual phone plans, also known as 365-day plans or long-expiry plans, are a variation of the monthly prepaid plans many mobile users will be familiar with.

"Long-expiry plans are similar to regular phone plans, but the idea is that rather than paying month to month, you pay for the whole year upfront," explains Alex Choros, telco expert and managing editor of WhistleOut Australia.

"Pricing tends to range between $150 to $400 for the year, depending on how much data you want. You're looking at 140 gigabytes on the lower end to as much as 500 gigabytes.

"It's worth noting that data is for the entire year though. So, 140 gigabytes, for example, works out to be the equivalent of just over 11 gigabytes a month."

Are annual prepaid plans cheaper than monthly phone plans?

The least expensive annual prepaid plans on the market at present start from around $150, according to WhistleOut data - the equivalent of $12.50 per month.

That's slightly less than the cheapest comparable monthly options.

Generally speaking, Choros says, individual service providers tend to offer their annual plans for less than their monthly plans.

"If you're looking at plans from the same provider, annual plans should be cheaper 99% of the time - you're getting a better deal in exchange for making a longer commitment and paying upfront."

This doesn't necessarily hold true for providers and plans across different mobile networks though (i.e. Optus, Telstra and Vodafone).

"If you're comparing, say, Boost Mobile's (Telstra network) annual plan to a monthly plan on the Vodafone network, you might still get a better deal with the month-to-month option," Choros says.

Which annual plans offer the best value?

Like monthly prepaid offers, many of the cheapest 365-day plans available at the moment are from smaller telcos and service providers.

"In terms of plain value right now, we're seeing really good deals from Amaysim, OnePass and Kogan in terms of cheaper plans that really over index on data per dollar," Choros says.

For mobile users on the hunt for a lower-cost alternative to Telstra though, Choros says that Boost Mobile's annual plans could be worth looking at.

"Boost is a much cheaper option than going with Telstra, and it's the only provider with access to the full Telstra network.

"All the other providers on the Telstra network have a slightly smaller footprint, so you don't get coverage in some regional and rural areas like you do with Boost and Telstra itself."

Who should consider an annual mobile plan?

Ultimately, an annual plan may not be the right option for everyone.

First of all, mobile users will need to be able to afford to stump up hundreds of dollars to cover the cost of the plan in advance.

Choros says that these plans are also unlikely to be a good fit for heavy data consumers, or users who won't be able to ration their data over 12 months.

"You should ideally have pretty consistent data needs. You've got your data allowance for the entire year, so there's the risk that you could run out if you're likely to blow 50 gigabytes in a single month."

Annual plans are also designed for people who already own their own phone outright.

"All these plans are also SIM-only - you can't pair a new phone with them," Choros says.

"So, you'll want to already own a phone that you're happy with using for the next year. Or, if you're planning on buying a new phone, you're happy to buy it outright rather than on a plan."

How well do you know your money? From dating apps to a diesel vehicle class action, test your knowledge with this week's Money Quiz.

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Cash discounts are well and truly back after Australia's card surcharge ban came into effect on October 1.

Cafes have led the way, with many charging customers less if they pay with notes and coins.

It comes as coffee prices rise and some cafes introduce extra fees for customers who order through an app.

As a result, Australians can now pay dramatically different prices for the same coffee depending on how they order and pay.

For regular coffee drinkers, the difference can add up quickly. Money's analysis found that buying three flat whites a week via a café app could cost more than $118 extra a year compared with ordering in person and paying cash.

Why cash discounts are suddenly everywhere

"Prior to October 1, it would be hard to find a restaurant or cafe that had a published cash discount," says Wes Lambert, CEO of the Australian Restaurant and Cafe Association (ARCA).

"However, we're getting reports from members and first-hand experience that about 10% of the industry has taken up some sort of cash discount".

Lambert expects more businesses to get on the cash bandwagon in coming weeks, once they get their next bill from the financial institution which operates their card terminal.

"Many businesses will be shocked when they get their first [post-surcharge ban] merchant fee bill," he says.

"Their overall fee will likely be 1% or more of their revenue and we believe many will then implement price increases and cash discounts."

How much can cash really save you?

Lamberts says most ARCA members who have introduced a cash discount have put it at 2-5%.

Five per cent seems a popular figure: this was the markdown of choice for several cafes visited by Money in Sydney's CBD.

Aussies online have also shared images of several cafés spruiking a 5% cash discount.

But some cash users are scoring even bigger savings: there have been reports of some businesses marking down prices by as much as 10% if customers pay in cash.

Why are cash discounts back?

The Reserve Bank's decision to ban card surcharges means businesses like cafes can no longer charge customers extra for paying with card.

But business advocates say the ban has deprived owners of a way of recouping overheads which haven't gone away.

"Small businesses still face costs associated with accepting card payments," explains Skye Cappuccio, CEO of the Council of Small Business Organisations Australia.

"Every additional expense matters, so offering a discount for cash may be one way for businesses to encourage customers to use a payment method that avoids card processing fees."

What the savings look like in dollars

So what does a cash discount actually mean for your wallet?

Small Flat White is an online platform that tracks coffee prices across Australia.

Earlier this week, it listed the average price of a regular-sized flat white as $5.16.

With a 5% cash discount, the average flat white falls from $5.16 to $4.90.

If you visited your café for a regular flat white three times a week, you'd save more than $0.70 by paying cash rather than card.

That may not sound like much, but over a year the saving would exceed $40. Just keep in mind that ATM fees could eat into those gains if you need to withdraw cash regularly.

Some consumers have questioned whether cash discounts are being used to avoid tax obligations. Business groups reject that suggestion, arguing that discounts simply help businesses offset card processing costs.

Why the same coffee can cost you $118 more a year

The cash savings may only be a few cents per coffee, but new app and ordering fees can quickly outweigh them.

The arrival of the surcharge ban has coincided with some businesses bringing in 'platform,' 'service' and other fees for online orders.

Instigators include coffee chains where customers can order their coffees in advance so they can be picked up on arrival.

Such convenience is coming with an increasing price tag: Money has seen cafes whose online order fees can be as much as $0.50.

This would push the cost of your three-a-week flat white habit to $16.98.

Interestingly, these cafes also offer a 5% cash discount, making turning up in-person even more attractive.

Using their online system for a three-a-week coffee habit would cost you $2.28 more than if you were ordering in person and paying cash.

Over a year, that's an extra $118.56 for exactly the same number of coffees, simply because of how you order and pay.

Can you get a coffee discount with PayID?

Cash discounts are legal and businesses can also give customers a deal if they use other payment methods that don't come with card processing fees.

These include digital systems like PayID or QR code platforms.

But Wes Lambert from ARCA says Aussies shouldn't hold their breaths for their local café to start rolling out these payment options.

He says the systems can run on a delay, which can make it hard for businesses to match payments received with sales.

"It's not instantaneous, so they don't instantly integrate with the point of sale software and tech stack of the hospitality business... it makes the reconciliation very cumbersome".

For now, the cheapest way to buy a coffee remains surprisingly old-fashioned: walk in, order at the counter and pay with cash. As cafés adapt to the surcharge ban, the gap between the cheapest and most expensive cup may only grow wider.

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Natalie Smith, travel insurance expert and head of marketing at Comparetravelinsurance.com.au.

They run through what travel insurance really covers and the common mistakes travellers make.

Episode timestamps

00:00 Introduction

01:44 When should you buy travel insurance?

03:13 Basic vs comprehensive travel insurance

03:38 How much does travel insurance cost?

05:23 Does travel insurance cover adventure activities?

07:00 Can you rely on credit card travel insurance?

09:00 The most common travel insurance mistakes

10:20 Natalie's top travel insurance tip

11:14 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.

For some Australians, workplace stress doesn't end when they log off.

Long hours, mounting workloads, constant notifications and pressure to do more with less are leaving many workers feeling exhausted and overwhelmed. In some cases, the impact can be severe enough to force people to take time away from work, affecting not only their health but their finances too.

Now, new research suggests the problem is also taking a massive economic toll.

A report from Mentally Healthy Workplaces Australia (MHWA), Australia's Economic Case for Mentally Healthy and Safe Workplaces, found workplace-driven mental ill-health is already costing Australia's economy $12 billion a year in lost gross domestic product (GDP). Without action, that figure is expected to exceed $27 billion annually within the next 15 years.

The report found workplace-driven mental ill-health is a leading contributor to Australia's productivity slowdown.

When work becomes too much

Burnout, stress and anxiety can have consequences far beyond the workplace.

Time away from work can affect household finances, while ongoing treatment and recovery can create additional costs. Previous reporting by Money has highlighted how some Australians feel unable to step back from demanding jobs because of mortgages, rent and rising living costs.

According to the MHWA report, lost productivity accounts for close to 54% of the direct economic costs associated with workplace-driven mental ill-health.

This includes absenteeism, presenteeism, staff turnover and lower workforce participation.

The report says these costs are initially borne by employers before flowing through to workers' compensation systems, life and health insurers, and government-funded support services.

Why experts say the problem is getting worse

MHWA executive director and co-lead Margo Lydon says workplace-driven mental ill-health is already having a significant impact on both workers and the wider economy.

"Workplace-driven mental ill-health is not a future issue - it is a social and financial crisis that is already imposing substantial, and rapidly growing, burdens on Australia's economy and workplaces," Lydon says.

"The economic cost of inaction clock is ticking rapidly."

She says the shifting labour market, including automation and the rise of artificial intelligence (AI), will only intensify pressures on workers.

AI and changing workplaces may add pressure

The report points to major changes in the labour market, such as automation and AI, as factors that could increase psychosocial pressures on workers in the years ahead.

Lydon says a co-ordinated national response is needed to prevent the problem from worsening.

"There is power in a nationally co-ordinated approach to action," she says.

She pointed to Australia's road safety efforts as an example of how a long-term national strategy can reduce harm.

"Road fatalities were considered inevitable until Australia introduced its first national road safety strategy in 1992, with sustained investment in evidence, education, infrastructure, and regulation. The result is a 60% decline in road deaths," she says.

The cost of doing nothing

Lydon says workplace mental health now requires the same type of long-term, prevention-focused approach.

"Workplace mental health, safety, and wellbeing now requires the same long-term, prevention-led, and co-ordinated system-wide approach to address the problem. We cannot just continue to shift the cost - we urgently need preventative and practical action, nationally."

While the report focuses on the economic impact, the findings also highlight a growing challenge facing many Australian workers.

As workplaces evolve and technology continues to change how people work, MHWA argues that preventing workplace-driven mental ill-health will be critical not only for productivity, but for the wellbeing of workers, their families and the broader community.

A version of this report previously appeared on Financial Standard

For millions of Australians, financial stress isn't just about money. It can affect sleep, relationships, confidence and overall mental wellbeing.

Three in four Australians are experiencing financial stress, according to Finder's Consumer Sentiment Tracker, while almost half of renters are struggling to pay their rent and 38% of homeowners are finding it difficult to keep up with mortgage repayments.

The pressure is particularly pronounced among women, with 82% reporting some level of financial stress in July, compared with 69% of men.

Financial therapist Jane Monica-Jones says the figures highlight the close connection between financial wellbeing and mental health.

"There is a huge connection between money and mental health," she says.

The good news is that while some financial challenges may be outside our control, there are practical ways to manage the stress they create. Monica-Jones shares five strategies to help build resilience, regain perspective and protect your mental wellbeing when money worries start to take over.

1. Why financial stress and mental health are closely linked

First, Monica-Jones says it's important to recognise the strong relationship between financial wellbeing and mental health.

"There is a huge link between the two. Money and our finances are one of the most stressful aspects of our life, because they hit on our basic needs.

"Money is a device to get our food, our shelter and our clothing. And if that feels under threat - whether that threat is real or not - it can make us feel vulnerable and it's going to impact our mental health."

2. How doomscrolling can make money stress worse

While staying informed can be useful, doomscrolling through news stories about property prices or checking in on a bank balance too often may not only prove detrimental, it can also become compulsive.

"Doing things like doomscrolling or engaging in distressing news articles can actually have an impact on our resilience, our sense of wellbeing and our mental health," Monica-Jones says.

"When we're stressed, we often seek out those things that continue to stress us - we're compelled to seek out the source of our distress. We think that if we can work it out, we can overcome it. But often, that keeps us sucked in and it doesn't necessarily support us."

Monica-Jones suggests tackling these types of behaviours with the same strategies that can be used for any type of stress, such as exercise, meditation, getting outdoors or connecting with other people.

"What might feel supportive is getting more rest, some exercise, some meditation - anything that makes us feel more resilient.

"If we can support our physical and mental health first, we feel more resilient, then we are more able to come up with creative ideas and potential solutions."

3. Why social media comparison can hurt financial wellbeing

Beyond limiting behaviours like excessive news consumption or account checking, Monica-Jones says that it's worth being mindful about the negative impacts of comparison.

"The role of social comparison is really important here. Social media exacerbates it, but advertising companies are also really great at bombarding us and prompting ideas like 'Why can't I afford that expensive car?' or 'Why am I not having those expensive holidays?'"

Instead of becoming lost in comparison, Monica-Jones suggests homing in on what success looks outside of the financial sphere.

"It could be that contribution that we make to our family and to our kids, or our friends, or our parents, or our community.

"It's also about focusing on our personal values. What do I actually find is valuable to me? Is it exclusively to do with the trappings of financial wealth, or are there other values that I could maybe place some deeper focus on?'"

4. How to stay resilient during financial uncertainty

In the midst of periods of greater uncertainty, it can be difficult to imagine a time when things improve. This is where finding perspective can prove helpful, Monica-Jones notes.

"If we're thinking about perspective, we can look at the idea that there is growth and there is contraction. That there is always winter and that there is always spring."

Of course, that doesn't mean that people should stop being proactive about managing their bills or sticking to their budget in the short-term, nor does it mean that the larger issues in the financial world will immediately go away.

Monica-Jones also suggests looking for perspective at an individual level, especially for those who are experiencing financial setbacks.

"Getting perspective, or thinking a little bit wider about our life as a whole, gives us that sense of resilience because we're actually seeing the bigger picture.

"That could be a bigger picture which shows that we're more resilient or capable than we thought we were, because there's plenty of evidence of the hurdles that we've overcome in the past."

5. Where to get help with debt, money stress and mental health

Perhaps the most crucial point of all for those who are in a precarious financial situation or struggling with their mental health is that there are people out there who can help.

"The important thing to know if you're truly struggling, if you've got debt issues, or even if you have small business issues, that you can go and see a financial counsellor. That's part of a free service that's offered to all Australians," Monica-Jones says.

A financial counsellor will be able assess the situation and help with managing debt, developing a budget, negotiating with government agencies or creditors, and accessing any grants, concessions or legal support (if required it) that some may be eligible for.

"There's also other types of professional help. That could be someone like a financial therapist who deals with your challenges with money, but it can also be a financial advisor or a therapist," says Monica-Jones.

For many households, the explanation is simple: prices have risen faster than incomes. While the economy has continued to grow, higher living costs and interest rates have left many Australians feeling poorer despite positive headline economic figures.

So why is there such a gap between the economic data and everyday reality?

How is the Australian economy performing?

On paper, Australia's economy is doing pretty well.

Australia's GDP grew by 2.1% between June 2025 and June 2026, which is a decent growth rate considering other developed countries like the UK grew at 1.2% and the US at 2.2% in the same period. The latest growth rate was also above what markets and analysts had expected.

Another economic indicator, the unemployment rate, was low at 4.7% in September 2026, meaning most people who want a job are able to find one.

Considering the conflict in the Middle East is still pushing up oil prices, causing input costs to increase for Australian businesses, and the impacts of artificial intelligence on the workforce remain uncertain, the economy isn't doing too badly at all.

In September, the Reserve Bank of Australia (RBA) also increased the cash rate, which acts as a brake to slow down the economy, to 4.6%, the highest it has been in 15 years.

The board expressed some concerns about inflation pressures, but noted economic growth had been stronger than anticipated.

Why are people so pessimistic about the economy?

For many households, the issue is simple: prices have risen faster than incomes, making it harder for people to get ahead even while the economy grows.

Most Australians are earning less money in real terms than they were five years ago, contributing to a general pessimism about the state of the economy. The inflation rate has averaged around 4.4% annually over the past five years, while annual wage growth has averaged about 3.4%, with some fluctuations.

A 2026 report from the OECD, a group of mostly developed countries, noted that Australia had some of the weakest real wage recovery since the start of the cost-of-living crisis.

In other words, many Australians are still spending more on essentials such as groceries, fuel and housing than they were a few years ago, without seeing equivalent gains in their pay packets.

Behavioural economist Phil Slade said people don't experience the economy through headline indicators like GDP growth. Instead, they judge it through the costs they encounter every day.

"They experience the petrol bowser, the mortgage statement and the weekly shop. When fuel is back above $2.30 a litre and the cash rate is at its highest since 2011, those reminders are hitting people several times a week, and that adds up to a constant low hum of stress," he says.

What is a recession, and is Australia in one?

Despite widespread cost-of-living pressures, Australia is not officially in recession.

The most common definition of a recession, called a "technical recession", is two consecutive quarters of negative growth in real GDP.

By this definition, Australia has not recorded a recession since the early 1990s.

However, this official indicator can hide slow GDP growth and can be influenced by volatile changes in some sectors of the economy. For example, the national GDP figure can grow because of an increase in the number of migrants working in the country.

For this reason, some experts prefer to use GDP growth per capita to measure how the economy is going. Others may use increases in the unemployment rate to identify a recession.

Is GDP growth still the best measure of economic health?

It depends on what exactly you're trying to measure.

For the RBA, commercial banks, investors and policymakers, GDP growth shows the health of the economy as a whole. GDP growth numbers broken down by sector, such as mining, agriculture or retail, can also give a better idea of how and where the economy is growing or declining.

However, if you're trying to understand how households are coping, it can be more useful to look at spending and savings trends than headline GDP figures.

Data from the Australian Bureau of Statistics shows household discretionary spending increased by 1.4% in the three months to June 2026, but nearly half of that was from people buying vehicles, particularly electric cars.

Demand for "luxury" services like domestic and international travel was particularly weak, and the "rising cost of living pressures aligned with restrained spending", the ABS said.

That suggests many households are still prioritising essentials and major purchases over discretionary spending.

Similarly, household savings rates have remained relatively high compared to the late 2010s, which can indicate households are being cautious about the future and keeping more money aside where possible.

That's a very different picture to positive GDP growth.

What are economists, investors and policymakers watching most closely?

Experts are watching the inflation rate, the RBA's cash rate decision and further disruptions to oil and gas supply in the Middle East.

If the inflation rate continues to stay stubbornly high or increase further, that would cause general prices to rise again in Australia. The RBA may need to increase the cash rate again in November, increasing the cost of bank loans and leading people to cut back on spending.

Further disruptions to oil and gas supply routes in the Middle East are also a major concern for inflation growth. If oil delays or stoppages continue, that will increase the cost of petrol and push up inflation.

For Slade, the key issue is whether today's cost-of-living concerns start affecting people's confidence in their employment and financial future.

"At the moment people are worried about the cost of living rather than their jobs. If job security concerns start to climb, that's when households really pull back, and that becomes self-fulfilling," he says.

Most life insurance claims are paid, but TPD and income protection claims remain the biggest source of disputes, delays and declined payouts.

If you're unable to work due to illness or injury, making a TPD insurance claim may not be as straightforward as you expect.

New data from the Australian Prudential Regulation Authority (APRA), covering the 12 months to June 30, 2026, shows TPD claims are more likely to be disputed, delayed or declined than other types of life insurance claims.

While most life insurance claims result in a payout, the figures highlight challenges policyholders can face when claiming on TPD and income protection cover.

How often are TPD claims paid?

Death claims recorded the highest acceptance rates, with 97% of claims accepted for individual advised policies and 98% for cover held through superannuation funds.

By comparison, TPD claims were accepted at rates of 81% for advised policies and 88% for group super cover.

Income protection insurance, also known as disability income insurance, recorded acceptance rates of 94% for advised policies and 96% for group super cover.

The data shows most claims are ultimately accepted, but TPD claims have lower acceptance rates than other major forms of life insurance cover.

Why are some TPD claims rejected?

One of the biggest reasons TPD claims are declined comes down to eligibility requirements set out in the policy.

According to APRA, failure to meet contractual definitions or eligibility requirements accounted for 80% of declined advised TPD claims and 91% of declined group super TPD claims.

This highlights the importance of understanding exactly what your policy covers and how your insurer defines total and permanent disability before you need to make a claim.

Which claims generate the most disputes?

While most disputes are eventually resolved, TPD and income protection insurance generate higher levels of complaints and disagreements than death cover.

Disability income insurance recorded 326 disputes per 100,000 lives for advised policies and 493 disputes per 100,000 lives for non-advised cover, compared with 98 for group super cover.

TPD insurance also recorded elevated dispute rates across individual policies.

The data showed most disputes were ultimately resolved, with between 81% and 94% resolved across different types of cover. Of those resolved, between 83% and 99% were completed within 45 days.

Why do TPD claims take so long?

The data also revealed significant differences in claims processing times.

Three in four death claims were finalised within two weeks, making them the fastest type of claim to process.

TPD claims were significantly slower. Just 23% were completed within two weeks, while the estimated average time to finalise a TPD claim was 3.9 months.

For people dealing with serious illness or injury, waiting months for a claim decision can place additional financial and emotional pressure on households.

What this means for policyholders

APRA's report provides insurer-level and industry-wide data covering individual advised and non-advised policies, group superannuation cover and group ordinary business.

For consumers, the findings suggest it's worth understanding the definitions, eligibility requirements and claims process attached to your cover before you need it.

While most claims are accepted, TPD and income protection insurance remain the areas where policyholders are most likely to encounter delays, disputes and more complex assessments.

This article first appeared on Financial Standard

New ways of dating wipe billions off apps

Dating app Bumble is being sold for a fraction of its previous value, as young people in many countries go cold on online matchmaking.

Bumble announced this week it would be bought by a tech holding company for $1.3 billion USD ($1.9 billion AUD).

It's a significant fall in value for one of the world's most recognisable dating apps, which was worth $14 billion USD ($20 billion AUD) just over five years ago.

Bumble announced Ithaca Holdings would pay current owners $6.05 USD per share.

Shares in Bumble previously sunk to $2.50 this month, a fall from $75 when the company first floated on the stock exchange in 2021.

The slump comes as many young singles in countries like Australia and the US say they're getting tired of dating apps and stories of scams and harassment on the platforms.

Such is the digital fatigue that many cities in Australia have seen the return of in-person dating events and opportunities to meet built around activities like run clubs.

Big businesses rocked by class actions

Hundreds of thousands of Aussies could be in line for a financial windfall as two major brands grapple with lawsuits.

Energy company AGL has been taken to court, accused of telling customers their plans were carbon neutral when they allegedly weren't.

Law firm Slater and Gordon is leading the case, claiming customers were misled into paying $1.50 extra per week for the plans over several years.

AGL allegedly told these customers emissions linked to their energy use would be negated through carbon offsets.

But Slater and Gordon claims the carbon credits the company used didn't deliver that outcome.

The new greenwashing allegations come as another class action wraps up.

Multiple outlets reported this week Toyota had agreed to pay $750 million to settle a long-running legal case.

The company had been accused of supplying Aussie drivers with hundreds of thousands of diesel vehicles with faulty exhaust systems.

Second data centre company pauses share market plans

Australian data centre operator AirTrunk has reportedly postponed a plan to sell assets on Singapore's stock exchange.

It comes as global investors become more cautious about AI.

AirTrunk had planned to sell some of its data centre assets in the Singapore through a real estate investment trust to raise $1.5 billion USD ($2.1 billion AUD).

The delay comes a week after fellow Aussie AI company Firmus cancelled plans to list on the Australian stock exchange.

CMC Invest market analyst Henry Fisher says investors are questioning the viability of AI companies and how much money they're worth putting into.

"Firmus' shelved IPO has been a reality check for AI infrastructure companies," he explains.

"I wouldn't read this as a sign that the AI boom is in trouble," Fisher adds.

"But two major listing setbacks in quick succession suggest investors are becoming more demanding about the economics behind it".

In signs of more AI jitters, South Korea's Kospi stock index, which is dominated by semiconductor companies, has fallen more than 35% since June.

Help coming for fed-up telco customers

More internet and mobile issues are costing Aussies money and customers are unhappy with how they're being treated by their telcos, according to new data.

The latest complaint statistics from the telco ombudsman come as service providers face bigger fines for breaking consumer protections.

A Telecommunications Industry Ombudsman report covering the year to July revealed a 63% increase in Aussies bringing attention to issues that had cost them money.

Complaints about unconscionable conduct from telcos, meanwhile, more than doubled compared to the previous financial year.

Lycamobile was singled out for particular scorn, with complaints to the TIO about the budget service provider up by more than 300%.

Though the 832 grievances pale in comparison to the more than 35,000 complaints received about Telstra and Optus.

The data came just before federal parliament passed laws that increase the fines telcos can face for breaking consumer protections.

Advocates have previously said mobile and internet businesses are under-regulated and need to be treated as essential services.

Mortgage brokers told to explain why they're not offering best deals

More than 80% of Aussie mortgages are arranged through a broker, but now the corporate regulator has put the industry on notice.

The Australian Securities and Investments Commission (ASIC) says mortgage brokers aren't always giving customers the cheapest deals.

It found brokers didn't recommend the cheapest loan option in more than 20% of cases.

ASIC admits brokers might have good reasons for pushing clients towards more expensive loans, such as prioritising better features.

But the watchdog said some brokers hadn't been able to supply evidence supporting these suggestions and may not be properly explaining them to clients.

"Consumers should be able to clearly understand why that recommendation delivers greater value for their circumstances," said ASIC commissioner Alan Kirkland.

Pikachu. Even those not well-acquainted with Pokémon will recognise the yellow, mouse-like creature with the lightning-bolt tail. What might come as a surprise is that a card bearing Pikachu's image recently became the most expensive trading card ever sold.

In February, a mint condition 'Pikachu Illustrator' Pokémon card was purchased at auction for a cool US$16.49 million, about $23 million. That may seem an astronomical sum for a relic from a children's game, but Pokémon cards, along with other trading cards, have become a serious collectable category in their own right.

This is a world Sydney-based Jonathan Marin, 45, lives and breathes, not only as a collector, but as a certified valuer and one of the country's leading experts on trading cards and collectables.

The managing director of TCG Valuations is a collector, certified valuer and one of Australia's leading authorities on trading cards and collectables. He first discovered Pokémon cards in his late teens and opened his own trading card store, TAG Collectibles, in 2019.

"I've got this core memory of opening a box under the Christmas tree when I was eight. It was my very first Nintendo. From there I began building my own collections, starting with retro video games."

Jonathan was in his late teens when he was first introduced by his younger cousins to what would become another major passion: Pokémon cards.

But it wasn't until 2015, when he started building a proper collection, that he realised the real value in the cards.

How Pokémon cards became a serious investment

At that point Jonathan was still a collector. That all changed in 2019 when he took the plunge and opened his own store, TAG Collectibles. That was followed by the acquisition of grading business TCG Grading in 2023, and the founding of TCG Valuations in late 2024.

Jonathan's timing proved impeccable. Much like it did with sourdough starters and online cocktail-making classes, the COVID pandemic unleashed a new wave of interest in collectables.

"We started to see two big things emerge. The first was people dipping into the retro video game scene. Then there was Pokémon and people rushing out to pick up cards. I think it was a case of nostalgia converging with boredom."

Interest in trading card games (TCGs), sports cards and other collectables hasn't died down, but nostalgia is by no means the only driving force.

For some, these have become investments. One recent customer brought in a childhood Pokémon collection with no idea what it was worth. One card alone was valued at $13,800.

How to tell if your Pokémon cards are valuable

For every Pikachu Illustrator, there are millions, likely billions, of Pokémon cards in circulation worth only a fraction of the value. The question is: why?

Like a fine wine or vintage car, there are numerous factors that go into determining the value of trading cards, including rarity, age and popularity among collectors. As Jonathan explains, the most significant factor is condition.

"When it comes to determining the worth of a card, what we've seen in the past two or three decades has been an anchoring to the grade of the card, to its condition."

Grading works on a scale of 1-10, where a 10 indicates a flawless card, across the various lines of trading card games and sports cards, based on four main factors.

"The first is the centering, the overall positioning of the artwork on the card. The second is the surface and whether there are any marks, scratches or creases. The third is the corners and whether they are dented, blunted or show signs of whitening or dog earing. The fourth is the edges and whether they show signs of whitening, serration or tampering.

"The closer a card is to that mint or pristine condition, the more money it's worth. But that's not to say that all cards graded 10 are worth squillions of dollars."

As Jonathan has experienced himself, even cards that come fresh out of an unsealed packet are not guaranteed to be rated pristine.

"I actually opened a pack recently with an ultra-rare Mega Charizard. I was so happy, but I took it to one of our graders and they said, 'Look, sorry, this is an eight'.

"Even though it had come straight out of the pack, there was a dent in the back. This isn't uncommon. You'll see pack-fresh cards with print lines, with whitening, with the centering being completely off."

How Pokémon card valuations and grading work

To an outsider, the process of having a trading card professionally assessed might seem as simple as giving it a once-over for wear and tear and looking up a few comparable listings.

As Jonathan lays out, however, it's more like a forensic examination.

"First of all, we do a consultation trying to understand the percentage mix of the collection and the customers' goals. We're seeing a lot of people with multi-collectable lines, whether it's sports cards, Pokémon cards or Lego, contained within their collections."

Next is the condition assessment, authentication and valuation, based on standards set by the Auctioneers and Valuers Association of Australia. Then comes the process of determining the market value of an item.

"Once we understand the condition and that it's authentic, we get into the market value. At a minimum, we look at three to four price points across sources. eBay is one of those sources, but we also look at PriceCharting, Card Ladder, Troll and Toad, 130 Point and SportsCardsPro."

Finally, customers are walked through the findings and provided with recommendations.

All up, Jonathan says a formal assessment starts at $195, while a simple market opinion can cost as little as $80-$100.

"It really is a combination of hard and soft skills that makes you a really good valuer. You have to be excellent at researching, your data and analytical skills need to be on point, and your precision and ability to use loupes, magnification systems and UV lights needs to be there."

These skills, Jonathan says, can make all the difference when it comes to spotting a well-executed counterfeit from the real deal.

"A lot of the time, you will be presented with some really good fakes and even items that other valuers may have passed as authentic when they are absolutely not."

Found old Pokémon cards? Here's what to do next

That was exactly what played out recently when a customer of Jonathan's came in with a binder full of Pokémon cards from his childhood.

"He had no idea what the cards were worth. Unfortunately, we went through the process and explained to him that some of them were not authentic.

"What he did have was an authentic Gold Star Rayquaza."

The Pokémon card worth $13,800

"We did the pre-grade assessment, and it came in at $13,800. He nearly fell off his chair. It was one of those Antique Roadshow moments where he looked at us like, 'Really?' That was pretty cool."

With the renewed popularity and value of Pokémon cards, Jonathan has heard plenty of stories of people digging through cupboards and attics in pursuit of cards from their youth.

For those lucky enough to uncover an old collection of their own, or inherit a set of sports cards or trading cards from a family member or friend, Jonathan says it pays to do some homework before rushing out to get a professional assessment.

"Research the cards in your collection. You'll want to try and figure out what's worth something, what isn't and whether something is authentic or not. That will save you time and money before approaching a grading company like ours.

"Getting your bearings around where the market sits will also help people avoid underselling their cards if they choose to sell them without going through a formal grading or valuation."

How to protect a valuable Pokémon card collection

The irony, says Jonathan, is that even collectors who do have a sense of what their collections are worth don't always take the steps to safeguard their valuables.

"Last month we did an assessment for a client whose collection ended up being valued at about $1.7 million.

But he was storing it in cardboard boxes in a storage shed.

"Once someone has decided to collect as an investment, I always recommend taking the collection out of storage.

"Invest in some good security, a fireproof safe and make sure that it's insured.

"Something as simple as a penny sleeve and a top loader is your best friend, if it's kept in a box that's in a cool, dark, dry place, ideally in a safe."

Are Pokémon cards a good investment?

With prized cards regularly trading for thousands and tens of thousands of dollars, and for the rarest of the rare, even more, it's easy to see why people have been drawn to trading cards as investments.

Jonathan stresses that, like any investment, there's an element of risk.

"Trading cards are operating in a highly speculative environment that isn't underpinned by regulatory frameworks like shares and other investment classes."

Having said that, he adds there are particular lines of cards that may be worth considering when building a collection from scratch.

"If anyone is looking to start their investment journey in trading cards, Pokémon is one of those core staples that has now been around for 30 years.

"One Piece is another that is really accelerating at the moment. Because of the quality and rarity of the cards, people are really loving it. Then there are dark horses like Yu-Gi-Oh! and Riftbound."

Jonathan also advises newcomers to focus on a niche rather than chasing big cards or influencer hype.

"Take the time to understand the rarity, the difference between eras and series and sets, the difference between types of pre-runs and chases and hits and commons and uncommons. And try to stick within one particular set, series or TCG line that you can master."

The biggest mistake new collectors make

Ultimately, Jonathan says people looking to turn a quick profit are unlikely to find much success.

Rather, it's collectors who genuinely enjoy immersing themselves in their hobby who are more likely to succeed over the long run.

"The biggest mistake people make is thinking that they can sell their shares or other investments to pour into Pokémon and within six months they'll be millionaires," he says.

"You have to have the passion and the patience to really get behind it and understand it."

Most Australians probably see America's midterm elections as a political sideshow, but the November 3 outcome could affect global oil prices, inflation, interest rates, and even your superannuation.

President Donald Trump has repeatedly predicted that oil prices will tumble after the November midterm elections.

He's under growing pressure to lower fuel costs, and his administration has already struck a deal to secure Russian diesel supplies to ease the squeeze on American drivers and businesses.

However, the big question is whether these measures can deliver lasting relief, or whether oil prices will remain hostage to the conflict with Iran.

The political stakes are significant.

Historically, the president's party has lost 20 of the 23 midterm elections since 1934.

If Republicans lose control of Congress, Trump could face greater scrutiny and resistance over government spending, military funding and his wider agenda.

That wouldn't automatically end the Iran conflict, but it could make it politically harder to continue the campaign.

So why should Australians care? Start with your super.

Australian retirement funds invest heavily overseas, particularly in American shares. In 2025, the US represented more than half of Australia's overseas portfolio-equity holdings, and super funds were major contributors to those investments.

If a shift in US policy sends American shares sharply higher or lower, that can flow through to Australian retirement balances.

The Australian share market also has potential upside.

If the conflict genuinely winds down and oil prices fall, cheaper fuel could ease inflation and reduce costs for our biggest and most popular sector on the ASX, Materials. This could significantly shape the market's direction over the coming months.

Additionally, the RBA has highlighted how higher fuel prices feed directly into inflation and indirectly into the cost of producing and delivering goods.

A sustained fall in energy prices could give the RBA more room to ease monetary policy, potentially supporting rate-sensitive shares and consumer spending.

Of course, cheaper oil isn't guaranteed, and lower prices caused by a global economic slump would be a very different story.

But if Trump is right and the elections mark a turning point in the conflict, the benefits could extend well beyond America. For Australian investors, the question is whether we're entering another period of global uncertainty or the start of a major relief rally.

Best and worst sectors

Consumer Staples is the best-performing sector so far this week, rising 3.91% as defensive buying supported the sector. Woolworths was among the main contributors as investors sought more reliable earnings.

Financials gained 3.74% as banks found support after softer employment data eased concerns about another interest rate rise, helping the sector recover some lost ground.

Utilities rounded out the top three, up 3.72%, as gains appeared to reflect a shift towards defensive earnings and dividend income amid market uncertainty, with AGL among the stronger performers.

At the other end of the market, Information Technology is the worst sector so far this week. It fell more than 6% as a global tech sell-off and growing concerns about AI spending pressured growth stocks, with Megaport and WiseTech among those hit.

Materials was the second-worst sector, down more than 5% as weaker commodity prices and selling across major miners, gold stocks and lithium producers dragged the sector lower.

Real Estate rounded out the worst performers this week, falling 1.49%. Interest rate uncertainty kept property stocks under pressure, as investors remained concerned about borrowing costs and valuations.

Best and worst stocks

Bank of Queensland led the ASX Top 100 this week, climbing more than 7%. Investors welcomed its full-year results, with statutory profit rising 88% and the dividend maintained, despite weaker underlying cash earnings.

Westpac Bank followed, rising more than 5% as investors rotated into bank shares from technology and mining stocks.

Treasury Wines Estate Limited rounded out the leading performers, gaining more than 5%. Stronger sales momentum in China and the US, along with reaffirmed FY27 earnings guidance, helped restore confidence.

At the other end, Paladin was the weakest performer, falling more than 17% as disappointing quarterly uranium production and higher costs at Langer Heinrich triggered heavy selling, despite unchanged annual guidance.

PLS Group followed, falling more than 15% as weak lithium sentiment and reduced broker lithium-price forecasts weighed on the shares, despite a midweek rebound.

NEXTDC Limited rounded out the worst performers, falling more than 14% as the broader AI and technology sell-off weighed on sentiment, while a break below $10 added to its technical weakness.

All Ordinaries Index Update

Indecision continues to hang over the Australian market, with the All Ordinaries Index down around 0.4% so far this week. After September's aggressive selling, a modest decline almost feels like a relief.

The encouraging sign is that 8830 continues to hold, although the recent price action suggests the market may be pausing rather than building a convincing recovery. If that support gives way, a move toward 8600 remains possible.

For now, patience and preparation matter. With the market drifting sideways and conviction lacking, there is little reason to over-leverage or chase highly speculative trades.

Stretched valuations among the big US AI names and growing uncertainty around the sustainability of that spending boom are adding to investor caution. Locally, buyers also appear reluctant to commit without clearer signs that the market is finding its footing.

Despite the near-term risks, I still see longer-term opportunities in the Australian market.

Corrections can create attractive buying opportunities, but there is no need to rush simply because prices have fallen.

My focus is on identifying quality stocks, watching for stronger buying support and being ready to act when the evidence improves. Staying patient and selective now should leave investors better placed to take advantage of the next sustained move higher.

For investors seeking equity market returns, the Federal Government's changes to capital gains tax could materially affect how after-tax returns are generated.

While the reforms increase the effective tax paid on real capital growth, it may not affect the tax treatment of income in the same way.

With no minimum tax rate proposed for income, but a 30% minimum tax rate on real capital gains, active dividend income strategies may become increasingly attractive, especially for investors seeking a greater proportion of their total return from income over capital appreciation.

So why is this the case?

The active harvesting of dividends and franking credits shifts a significant proportion of returns towards income.

What this means is that while fund managers continue to target outperformance relative to the benchmark's total return, a larger share of that return may be generated through income rather than capital gains.

Therefore, as this income is not subject to the proposed 30% minimum tax rate on real capital gains, investors may be less impacted by the effective increases in taxation on investment returns.

Companies capable of delivering a meaningful proportion of total returns through sustainable income may be particularly valuable in this environment.

One example that's piqued our interest at Ausbil is APA Group.

APA Group (ASX: APA) owns and operates gas transmission and distribution assets across all states and territories in mainland Australia.

Over the next three years, APA is expected to invest $3.5 billion in organic growth capex for gas transmission and storage assets and renewable projects. This is supported by existing balance sheet funding capacity.

Data centres are also a central earnings generator for APA as users of gas-powered generation, with the Australian electricity market transitioning away from fossil fuels. APA is seen as a key provider of reliable power, along with Origin and AGL.

APA's total return currently includes a distribution yield of more than 5% p.a. (based on the year to August 2026), and APA has been able to grow this distribution over time. This is partly because of the nature of its long infrastructure cash flows.

APA Group has been able to capture and slightly exceed CPI on its growth over the past year, with most of its return being income with inflation protection, which benefits our active dividend strategy.

As a smaller proportion of total return is derived from capital gains, the impact of the new CGT measures may be lower than for investments that rely more heavily on capital appreciation.

For many investors, this tax position also improves after the application of franking credits.

Investors may seek capital growth that shifts up by inflation to retain capital value. Under the CGT changes, the tax treatment of nominal and real capital gains may differ.

In theory, if capital growth broadly matches inflation, the impact of proposed taxation of real capital gains may be reduced, leaving a larger proportion of returns generated through income.

With its attractive yield, inflation protection and lower reliance on capital appreciation, APA is well positioned to deliver resilient after-tax returns under the CGT regime.

More than 11 million Aussies now hold assets outside of their superannuation and primary home, according to a new survey from the Australian Securities Exchange.

The ASX 2026 Australian Investor Study found that while most current investors are still men, the market could soon look very different.

Women dominate the cohort of Aussies who plan to start investing within the next year.

Record 11.5 million Australians now invest outside super

The ASX says the results make Australia a "nation of investors", with this group now comprising 54% of the adult population.

Beyond putting money into property, Aussies are more likely than people in many other countries to buy assets listed on a local or international exchange, like ETFs or shares.

Almost 40% of adults hold these assets bought and sold on exchanges like the ASX, compared to 35% of people in the United Kingdom and 20% of Germans.

Across all types of investing, the median portfolio size is $130,000 and 42% of investors have portfolios under $100,000.

ETFs emerge as the gateway investment

Ownership of ETFs has doubled since 2020, with these managed funds now one of the most popular assets in Australia.

The growth doesn't surprise Betashares senior investment strategist Cameron Gleeson.

He says ETFs have become the gateway from which many people start their investment journey.

"More and more Australians are starting to build a portfolio by looking at ETFs and more and more are choosing ETF-only portfolios," he explains.

The ASX says one third of people who don't currently invest but want to within the next 12 months are considering buying ETFs.

Betashares is one of several companies which manages ETFs for investors and Gleeson says the business has seen growing interest in the assets from a new cohort.

"Through the early COVID-19 period, the growth was in younger investors," he says. "Now we're seeing the greatest growth in older investors."

Why shares remain Australia's favourite investment

Despite all the attention ETFs are getting, the ASX says shares in companies listed on the local exchange remain the most popular type of asset for investors in 2026.

Even among the wave of people planning to start investing within the next year, 41% want to put their money into company stock.

ASX senior manager of investment products Rory Cunningham says this is due to the stability and premium status Aussies attach to certain companies.

"Commonwealth Bank, BHP - these are names that we see day in and day out, so I think that really resonates with investors," he says.

"When you think about investing and as you grow up learning about it, often the example that's provided is investing in a company."

Women lead the next wave of investors

Men still dominate Australia's investor cohort, with only 43% of those currently putting their money to work outside of their home or super found to be women.

But in a sign of change to come, the ASX found women "significantly outnumber" men in the race to start investing in the near future.

Among those the company surveyed who planned to start making moves with their money in the next 12 months, 61% were women.

It's the largest cohort of aspiring female investors the ASX has ever seen.

Cunningham believes this is due to an "incredible evolution" in the ways women can learn about investing.

"Over the last five years, there has been an increase in the number of groups that have a specific focus on educating female investors," he explains.

"These groups are run by women, their membership is female and the education and experience they're delivering is catered towards what women are looking for."

The biggest myth stopping Australians from investing

Experts say initiatives like these will help many of those wanting to invest to get involved, but barriers remain.

One of the most common, according to the ASX, is someone's lack of confidence that they have enough money to buy into the market.

Cunningham believes greater education is needed here too, to make people realise they don't need as much cash as they think.

"Those that intend to invest in the next 12 months are saying that they need a median $690 to do so," he notes.

"But there are investment platforms out there that allow you to invest your spare change, so I think that is a barrier we can overcome."

It's 1992 and I'm sitting in the car, sulking like the moody teenager I am, hoping no one will see me parked outside the op shop.

Meanwhile my mum is happily sorting through the racks, finding bargain Rip Curl T-shirts and on-trend denim overalls to add to my wardrobe. Fast forward to today and I'm excited to tell anyone who will listen about my latest op shop discovery. Thankfully I grew out of my awkward teens and into a frugal, second-hand fashion hunter.

And if you're looking for an excuse to give op shopping a go, Vinnies NSW is offering 50% off everything for one day only on Saturday, October 17, in celebration of World Op Shop Day.

The discount applies across Vinnies NSW stores and online through Vinnies Finds, offering bargain hunters a chance to snap up pre-loved clothing, homewares and books for half price.

With cost-of-living pressures still biting, many Australians are turning to op shops as a way to cut spending on clothing, furniture, books and household goods without sacrificing quality.

How op shopping slashed my clothing bill

Having to dress for work, social events or special occasions can be expensive.

Building a work wardrobe can easily cost hundreds, if not thousands, of dollars. Buying second-hand has allowed me to wear quality brands for a fraction of the retail price.

One of the things I've noticed over the years is that many older garments simply feel better made. From heavier fabrics to sturdier stitching, second-hand clothes can offer quality that's surprisingly hard to find at the same price point today.

On the racks of your local Vinnies, it's not uncommon to find a Cue dress for less than $20. In many cases, that same dress could later be resold online for considerably more.

I'll often wear an outfit for a season, then sell it and use the money to fund my next op shop haul. This works particularly well for special occasion outfits.

Besides underwear, I can barely remember the last clothing item I bought brand new.

And op shopping's appeal extends well beyond saving money.

Good for your budget, better for the planet

The savings are one reason I love op shopping. The environmental benefits are another.

World Op Shop Day celebrates the role op shops play in keeping usable goods out of landfill and giving pre-loved items a second life.

The scale of Australia's textile waste problem shows why extending the life of clothing through reuse and resale has become increasingly important.

Every purchase also helps support the charity's work assisting people experiencing hardship across NSW.

As Gemma Presley, retail experience and brand manager at Vinnies NSW, puts it: "World Op Shop Day is a wonderful opportunity to celebrate everything people love about op shopping; the thrill of finding something unique, the affordability, the sustainability and the sense of community."

My favourite op shop bargain ever

Of all my op shop finds, the one that attracts the most compliments is a wool check Country Road jacket I picked up for just $30.

It was a little over my usual op shop budget, but considering it retailed for more than $300, it was still an absolute bargain.

Over the years I've also picked up barely worn Cue dresses, designer jackets and books that looked as though they'd never been opened. That's part of the appeal of op shopping, you never know what treasure might be waiting on the next rack or shelf.

And if I haven't convinced you to start op shopping already, I can tell you there's something especially satisfying about receiving compliments on an outfit that cost next to nothing.

The op shopping tips I swear by

1. Shop sale days and special events

Keep an eye out for discount days such as World Op Shop Day, when charities like Vinnies offer major storewide sales. Many op shops also run regular coloured-tag promotions and clearance events.

2. Check online before you visit

Many charities now sell premium items online through platforms such as Vinnies Finds, while stores often promote new stock and sales on social media.

3. Know the brands worth hunting for

Brands such as Assembly Label, Country Road, Aje, Witchery, Cue, Sportscraft , Trenery and Gorman often turn up at op shops for a fraction of their original price and tend to hold their value well.

4. Inspect before you buy

Always check for stains, holes, missing buttons, broken zips and fabric pilling. A bargain isn't a bargain if it needs expensive repairs.

5. Use resale apps to gauge value

Before buying, check eBay, Depop or Facebook Marketplace to see what similar items are selling for. You might discover a hidden bargain or avoid overpaying.

6. Don't stop at clothing

Some of the best bargains are in homewares, books, furniture, kitchenware, sporting goods and children's toys. Cast a wider net and you're more likely to find hidden gems.

7. Buy with a wishlist, not just impulse

It's easy to get carried away when everything seems cheap. Keep a list of items you actually need, whether it's workwear, a coffee table or a winter coat, and focus on purchases you'll genuinely use.

8. Think cost per wear

Before buying, ask yourself how many times you'll realistically use the item. A $20 blazer worn 50 times is often a better purchase than a $5 impulse buy that stays in the wardrobe.

Whether you're hunting for a designer jacket, a new bookshelf or simply a way to stretch your budget, there's never been a better time to give op shopping a try. And with Vinnies offering 50% off for World Op Shop Day, you might just discover your own bargain worth bragging about.

The countdown is on for Australians who haven't lodged their tax return.

With the November 2 deadline now just weeks away, taxpayers are being urged to get their affairs in order, particularly given overdue returns can attract penalties of $364 for every 28 days they're late in some cases.

More than eight million returns have already been lodged with the ATO. If yours isn't one of them, here's what you need to know before the deadline arrives.

When is the ATO tax return deadline for 2026?

For people who are lodging their own returns, the due date for getting their taxes sorted and in to the ATO is typically October 31.

That's not the case this year though says Mark Chapman, director of tax communications at H&R Block.

"Under the ATO's rules, when a lodgment deadline falls on a weekend or public holiday, it moves to the next business day.

"That means Australians who prepare and lodge their own 2025-26 tax returns have until Monday, November 2, 2026 to get them in."

What is the penalty for a late tax return?

Aside from the possibility of receiving a refund, the other motivation for Australians to submit their income tax return by November 2 is to avoid the possibility of a late penalty.

For individuals, the penalty is currently $364 for every 28 days (or part thereof) that a return is overdue, up to a maximum five penalty units.

"In practice, the ATO generally takes a fairly reasonable approach to taxpayers who are a little late, particularly where they have a good lodgment history and are expecting a refund," Chapman says.

"In those circumstances, the ATO will often decide not to impose a penalty.

"However, the position is different for taxpayers who repeatedly miss deadlines, have outstanding returns from previous years or ignore ATO reminders."

Chapman also cautions taxpayers against putting off lodging their return because they expect to receive a bill. In this case, interest will be charged on any unpaid tax after the November 21 payment deadline, in addition to any applicable penalties.

Can I still use a tax agent?

Many Australians are comfortable preparing their tax returns themselves, but a sizeable number rely on the expertise of tax agents.

Of the roughly eight million returns already received by the ATO, more than 3.7 million have been lodged by tax agents on behalf of individuals.

The good news is that, for taxpayers who haven't submitted a return yet and would rather leave it to a professional, it isn't too late.

"If you register with a tax agent by 31 October, you may qualify for an extended lodgment deadline, potentially until May 2027," Chapman explains.

"That means you don't necessarily have to rush to get everything done by November 2.

"However, you need to make sure the tax agent has actually added you to their client list by the relevant date. Simply making an appointment or intending to use an agent isn't necessarily enough."

Do I need to lodge a tax return in 2026?

For the vast majority of Australians who earned income during the 2025-26 financial year, submitting a tax return is mandatory.

That also generally applies to people who ran businesses, received government payments above certain thresholds and earned investment income (like dividends). The full list is extensive.

There are situations when someone won't need to lodge a return though.

"The most obvious example is someone whose total income falls below the $18,200 tax-free threshold," says Chapman.

"If you're an Australian resident for tax purposes, your only income was wages of less than $18,200 and no tax was withheld, you generally won't need to lodge a return.

"This could apply to students working part-time, people who worked for only a few weeks during the year, or someone who retired partway through the financial year."

The good news is that you don't have to guess to find out.

The ATO has a tool on its website that can tell people whether they need to lodge a return, as well as a similar tool in the ATO portal in myGov which is quicker and can provide more personalised results.

Can I pay my ATO tax bill with a credit card?

Not everyone will receive a refund after lodging their tax return - some people will have a tax debt.

The exact amount owed and the due date will be laid out on an individual's notice of assessment, but what about payment options?

Taxpayers have few choices. They can pay their ATO tax bill through BPAY, bank transfer, or even in-person at Australia Post with cash, EFTPOS or a cheque.

They can also use a credit card or debit card, either via direct debit or through the ATO's Government EasyPay service.

However, it's worth noting that after June 30, 2027, the ATO will stop accepting credit card payments, following recent changes to card surcharges.

Last-minute tax return mistakes to avoid

With the November deadline approaching fast, Australians who haven't lodged their returns may be tempted to get them out of the way quickly. Chapman urges people to take their time though.

"Spending an extra half-hour checking your figures, reviewing your deductions and ensuring your income has been declared could save you money and prevent problems down the track."

Here are some of the more common mistakes Chapman comes across:

1. Missing eligible deductions

"The biggest mistake people make when they're rushing is failing to check the details properly.

"That can work against them in two ways: they might overlook deductions they're legally entitled to claim, or they might claim expenses that aren't deductible.

"Working-from-home expenses are a classic example. Some people forget to claim them altogether, while others claim expenses without keeping the records needed to support them."

2. Relying on ATO pre-fill data

"Another common problem is relying too heavily on information the ATO has pre-filled into myTax.

"It's a useful starting point, but it's not necessarily complete or correct. Taxpayers are still responsible for making sure they've declared all their income.

"This is particularly important for anyone who's changed jobs, worked for multiple employers, earned income from a side hustle or sold investments during the year."

3. Forgetting to declare capital gains

"Capital gains are another area where people frequently make mistakes.

"Selling shares, cryptocurrency or an investment property can create a tax liability, even if the proceeds have been reinvested.

"People sometimes assume that if they haven't withdrawn the money or received it in cash, there's nothing to declare."

4. Overclaiming work-related expenses

"There's also a tendency for people to overclaim expenses that have a mixture of work and private use.

"If you use your phone or laptop partly for work and partly for personal purposes, you generally need to apportion the expense rather than claim the entire cost."

How many ATMs are there?

There are currently around 22,000 ATMs in Australia, down from a peak of over 32,000 in late 2016.

Much of the fall has been due to a significant decline in the number of machines operated by the nation's major banks.

There were just under 5000 bank-run ATMs spread around the country in June, less than half the number of seven years ago.

Swinburne University payment system expert Professor Steve Worthington says this is largely due to big banks shrinking their branch networks.

"If banks close a branch, it's quite common they also close the ATMs at that location at the same time".

The number of ATMs not affiliated with banks, meanwhile, has remained steady, giving independent operators an increasingly large share of the cash machine market.

This has been driven by shopkeepers and pub and club owners installing ATMs run by third-parties in their businesses.

Experts say this is because these machines charge more fees than bank-operated ATMs and give business owners the opportunity to earn money.

How much are ATM fees?

In the 2010s, banks made agreements to not charge each other's customers for using their ATMs.

But experts say the fall in bank machines and rise in independent ATMs means fees have once again become common.

"If it's an independently-owned ATM, it is much more likely, in fact it's almost certain that users will be charged a fee, says Stuart Hall, chief operating officer of banking group NGM.

"Typically, you'll be charged something like $2 or $3.50".

Avoid credit card cash advance fees

Another easy way to avoid being stung with charges is to be careful with what type of bank card you're using to get cash out.

"Make sure you're using your debit card to do the withdrawal, not your credit card" says Hall.

This is because credit providers treat taking cash out differently to a regular purchase, meaning any interest-free arrangements may not apply.

"A credit card withdrawal at an ATM is a cash advance and you will pay interest on it from day one," Hall explains.

Credit, cheque or savings: Which ATM account option should you choose?

Sticking your card into an ATM, you might be asked to select what type of cash withdrawal you want to make.

The options on the screen will be some variation of: Savings/debit, credit or cheque.

Hall recommends being careful here too, at risk of accidentally drawing down on your credit account.

"Don't hit the credit option, because that's your credit card. If [your savings account] is linked to that, you'll pay interest," he warns.

So play it safe by only selecting savings or debit. And the cheque option?

"Relatively few people have got a cheque account these days," Hall explains.

"And if they have got one, they probably know".

Can you use your phone instead of an ATM card?

Banks are continuing to upgrade their ATM networks, meaning more can be used with the digital wallet on your phone or smart device.

But as Hall notes, some machines in Australia can be up to 20 years old, so it's still a good idea to have an old-fashioned back up.

"There are still plenty of machines where you need a physical card," he says.

Should you worry about card skimming?

State and federal police have arrested several people in recent years accused of tampering with ATMs in order to steal users' card details and personal data.

Common scams involve fitting card slots with devices that glean information about your card, which criminals can use to make a copy.

Scammers might also hide cameras on parts of the machine to capture your PIN as you enter it.

Professor Worthington says card skimming and other ATM scams aren't overly common in Australia, but recommends staying alert to them.

"We should be worried about it happening, but I wouldn't put it very high on the list of potential scams," he says.

Stuart Hall from NGM Group recommends closely inspecting any ATM you haven't used before and checking for any signs it's been tampered with.

"Have a good look at the machine: Does it all look reasonable and appropriate?"

And to avoid hidden cameras: "I know this sounds a bit stupid, but I always still make a point of covering my hand when I'm putting my PIN in," he admits.

One of the most frequently used phrases in our house when my two boys were younger was, "Just stop touching it".

Don't pull it apart. Don't press the button again. Whatever is happening right now, there is a reasonable chance that your involvement will make it worse.

As it turns out, this isn't terrible investment advice either.

There is something deeply irritating about investing. The smartest thing to do is often nothing.

Humans aren't particularly good at nothing. We like activity. We especially like decisions that make us feel clever. Investing gives us an almost endless supply of opportunities to scratch that itch.

Should I buy? Should I sell? Is the market too high? Should I take the profit? A friend made 40% on something I'd never heard of until Tuesday, should I get in too?

Every one of these feels like an opportunity to make money. They're also opportunities to make a mistake.

Which is why one of the most interesting things about exchange traded funds, or ETFs, isn't necessarily what they invest in. It's what they can stop us doing.

A broad ETF is wonderfully boring. Rather than trying to identify which individual companies will outperform, you can buy a basket containing tens, hundreds or even thousands of investments.

Why investors are their own worst enemy

In behavioural terms, that's important because humans have an impressive track record of undermining ourselves when making financial decisions.

Take overconfidence. Most of us believe we're better-than-average drivers. We tend to think we're pretty good judges of character too.

Give us access to a trading account, a few finance podcasts and six months of rising markets, and suddenly Warren Buffett had better watch his back.

The problem is that confidence and competence are not the same thing. Picking individual investments also gives our brains something they love: a story.

We can explain why a particular company is going to take off. We've seen the new product. We've read about the CEO. Everyone is talking about AI, lithium or whatever else is currently attracting attention.

Once we've constructed the story, confirmation bias gets to work finding reasons we're right.

The cost of doing something

Then there's recency bias.

Whatever has happened lately suddenly feels more likely to keep happening.

A sector that's delivered spectacular returns starts looking like an obvious investment, conveniently after it has delivered spectacular returns.

When prices fall, another quirk enters the room: loss aversion.

Losing $1000 generally hurts considerably more than gaining $1000 feels good. So when markets become volatile, our instinct isn't always to calmly revisit our long-term strategy. Sometimes it's simply to make the uncomfortable feeling stop.

We sell.

Then the market recovers and another uncomfortable feeling arrives: the fear that we're missing out.

So we buy again.

This isn't because people are stupid. It's because our brains weren't designed for financial markets. They were designed to respond to threats and learn quickly from recent experience.

Very useful when something is rustling in the bushes. Less useful when your portfolio has fallen 8% and you've checked it four times before breakfast.

Perhaps the most underappreciated problem is action bias. When something important is happening, we feel we should do something about it.

It's something I've watched with my boys countless times.

If something won't fit, push harder. If a button doesn't work, press it another six times. If your brother is annoying you, apparently the obvious solution is to annoy him back.

Adults are more sophisticated, of course.

Markets fall, so we sell. Something shoots up, so we buy it. Nothing much is happening, so we fiddle with the portfolio just to make sure we're still participating.

Doing something gives us the comforting sensation that we're in control. But activity and progress aren't the same thing.

This is where broad ETFs become psychologically interesting. Used as part of an appropriate long-term strategy, they reduce the number of predictions you need to make.

You don't necessarily need to decide which bank will outperform, which mining company has the better prospects, or whether this month's hot stock still has room to run.

You're effectively admitting something humans find surprisingly difficult to admit: I don't know.

And that can be an incredibly powerful financial position.

The hardest investing skill

Of course, we've even managed to complicate ETFs. There are now funds covering increasingly narrow sectors, industries and themes.

Give humans a simple investment tool and enough choices, and we'll eventually find a way to start tinkering with it, which rather misses the point.

We often imagine wealth is built through brilliant financial decisions. Spotting the winner, selling at exactly the right moment or seeing something everyone else missed.

Occasionally this is true.

For most of us, though, there may be a more reliable strategy.

Build a sensible system. Automate what you can. Diversify appropriately. Give your investments time.

Then create fewer opportunities for your emotional, overconfident brain to interfere.

Raising boys has taught me that one of life's great lessons is knowing the difference between something that requires your attention and something that merely attracts it.

Sometimes the smartest thing you can do is to just stop touching it.

Reader question

My partner and I are approaching retirement age, but we're not in the position we expected to be in at this stage of our lives.

We still have a sizable mortgage and two children who may need financial support well into adulthood.

We've spoken to several financial advisers, but often feel the conversation quickly turns towards investment products and managing investments, when what we really need is someone to help us step back and look at the bigger picture.

How should we think about the next 10 years of our working lives?

Should we be prioritising paying down the mortgage, building super, investing or simply creating more financial flexibility?

And how do we factor in the possibility that we may need to continue supporting our children financially?

We're not necessarily looking for an investment strategy or a product recommendation.

We'd really value some practical, independent guidance on the options and trade-offs we should be considering while we still have time to make a difference.

What would you suggest we do now? - Martin

Paul Clitheroe's response

Sadly, I hear this a lot, Martin. Too many advisers quickly turn to their best source of revenue and an area they are comfortable with... financial products.

Quite frankly, as you know, investment products are a secondary issue. You need to get your strategy right. I much value the role of advisers, but the bit I point to is the advice, not product sales.

The obvious strategy is for you to create wealth. I have stated the very obvious, so let's break this down.

First up, while I am sure you have done this, your budget. Wealth creation comes from spending less than you earn. Once you know your surplus income, then you can build a strategy.

Roughly speaking, it goes a bit like this.

If your tax rate is above 15% on the top part of your income, salary sacrifice via your employer into super is your best money friend. On a taxable income above $45,000 you pay 32% including the Medicare levy.

So with a $1 earned, you take home 68 cents and it can go into your, at a guess, 6.5% mortgage. Or 85 cents can go into super, with a low-cost balanced fund, these have averaged about 7%pa to 8%pa over many decades.

Strategically, super makes more sense. It makes even more sense if either of your salaries is more than $135,000 where tax plus Medicare levy jumps to 39%.

After super, it is hard to go past paying down your mortgage, via an offset account to give you access to funds if needed. If your mortgage is about 6.5%, each dollar into your mortgage is effectively earning you that 6.5% risk free and tax free.

In your situation, I don't think you need an adviser. I hear your problem; you must create wealth. You do this by managing spending and making a determined effort to save the surplus you have.

If you are higher taxpayers, I suspect the answer is salary sacrifice into a large, very low-cost super fund.

Otherwise, with any excess above the maximum of the $32,500pa, you can both put into super. Then I find it hard to go past an offset account against your mortgage. Where else would you earn the interest rate of your mortgage risk free and tax free?

At times I need to be quite general in my answers, but in your situation the most certain outcome will come from saving as hard as you can and directing your savings to super or your mortgage.

What to read next

• Ask Paul: I helped one child, now the others want the same
• How much board should adult kids pay Mum and Dad?
• Ask Paul: How can we support our adult child with an intellectual disability?
• The hidden retirement costs that catch Australians out
• What happens after you pay off your mortgage

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Richard Whitten, money and home loans expert at Finder.

They discuss the outlook for rates and the practical steps borrowers can take to cut their home loan costs.

Episode timestamps

00:00 Introduction

02:01 Are lenders passing on the latest rate rise?

03:08 What does the latest hike mean for borrowers?

04:22 Will there be another rate rise this year?

05:44 First steps to reduce your mortgage costs

08:00 How to negotiate a lower rate with your lender

10:00 When refinancing makes sense and what to watch for

12:00 Why refinancing may be harder right now

13:23 Richard's top tip for homeowners facing higher repayments

14:34 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.

The four interest rate hikes handed down by the Reserve Bank so far this year have, without a doubt, hurt borrowers.

But every cloud has a silver lining and in this case it's a bonus interest windfall on the more than $1 trillion Aussies hold in bank savings and deposit accounts.

Savers who have stuck with these products over the years would have weathered times when the annual return on deposits was as little as 1%.

But the Reserve Bank's monetary tightening has now pushed savings rates on some accounts to 6% for the first time in 15 years.

Which savings accounts are paying more than 6%?

According to Canstar, ongoing rates broke the 6% threshold last week, when Bank of Queensland (BOQ) and Newcastle Permanent readjusted two of their savings products.

Newcastle Permanent's 25 basis point boost to its Smart Saver account means a customer will earn an extra $50 in interest over a year on a $20,000 deposit.

ING, Revolut and Rabobank have also lifted rates to 6% or even more, but only for new customers and only for the first few months after an account has been opened.

Why many Australians won't qualify for a 6% savings rate

Seeing these newly-revamped savings offers, you'd be forgiven for wanting to move your money right away.

But a lot of these deals aren't as good as they seem and some you might not even be eligible for.

"Saving accounts seem simple on the surface, but they're anything but," warns Sally Tindall, data insights director at Canstar.

"Pay attention to the fine print, because banks are increasingly wrapping their rates up in conditions designed to catch at least some savers out".

1. Some 6% rates are only temporary

As mentioned above, some accounts will only pay you 6% for your first few months as a new customer.

After this, rates drop to an ongoing offer, which will be lower than what you could be getting elsewhere.

2. Age restrictions can lock you out

BOQ and Newcastle Permanent are the only banks currently offering 6% interest on an ongoing basis.

But the only way you can earn this at either is by opening an account while you're young.

For example, BOQ's Future Saver account is only available to people aged 14-35. Once you turn 36, it converts to a Smart Saver and the interest rate falls to 5.65%.

Newcastle Permanent is even more strict, cutting off eligibility for its Smart Saver account at 24.

Once you turn 25, the annual rate of return drops 100 basis points to 5%.

Tindall says younger Aussies are an increasingly popular target market for these institutions.

"Banks are offering attractive rates to this demographic in the hope that they then go on to take out more banking products, [potentially] something as big as a home loan".

3. Monthly bonus conditions apply

Even if you're the right age to open an account, you'll still have to meet a checklist of conditions every month to get 6% on your deposit.

Across both banks, these include:

• Depositing up to $1000
• Making at least five eligible purchases
• Growing your account balance

4. Most banks cap how much earns the top rate

Once you've met these conditions, the banks also put limits on how much money you'll be able to earn that 6% on.

For both BOQ and Newcastle Permanent, it's $50,000 and any amount over this in your account will earn interest at a lower rate.

This is where time-limited offers and accounts from the big four banks have an advantage: they're less likely to put such limits on their deposit products.

How the big four savings rates compare

The big four banks have also hiked savings rates, but most of their offers still languish behind those of their newer competitors.

Even then, they require depositors to meet a web of monthly terms and conditions.

If you can't achieve these, they might only pay you a measly 0.01%.

How to choose the best savings account

Choosing the right savings account starts with reading the fine print, says finance expert Professor Angel Zhong from RMIT.

"The headline savings rates could be quite attractive, but always read the terms and conditions," she says.

Check if you'll be required to make a certain number of monthly deposits or card purchases and if you're allowed to take any money out of the account to cover sudden expenses.

"Before signing up, think about these conditions and be realistic about whether you can meet them every month," Professor Zhong adds.

Consider these requirements carefully: if you fail to meet them, your rate might be cut to lower than what you would be getting in a condition-free account.

A simple savings hack to boost your interest

Time-limited savings offers are often a source of frustration for anyone wanting to see their deposit grow substantially in the long term.

But they can be helpful if you're looking for a quick savings boost.

For example, set up a savings account with a brand like ING or Revolut to take advantage of their generous four-month, 6.25% deals.

Once the introductory offer expires, look at transferring your savings to an account with a better ongoing rate.

"Sometimes you can switch to benefit from different introductory offers," Professor Zhong says.

"If you're signing up for a new deal, just put the date it will end in your calendar so you remember to move your money."

The number of superannuation payments being made to Australians has more than doubled since the introduction of Payday Super on July 1, according to new figures from the Association of Superannuation Funds of Australia (ASFA).

Around 54 million super payments were processed in August, compared with an average of around 25 million a month in 2025-26. July recorded 64 million payments, as employers made their final quarterly payments under the old system alongside their first Payday Super contributions.

ASFA expects monthly payment numbers to remain around the August level.

Millions now getting super paid more often

ASFA's preliminary estimates show around seven million workers who were paid super once a quarter are now receiving it with their wages, mostly weekly or fortnightly.

A further two to three million workers are likely to have shifted from monthly super payments to weekly or fortnightly contributions.

ASFA says small businesses were the most likely to pay super quarterly, meaning their employees are seeing some of the biggest changes.

What Payday Super means for your retirement

ASFA chief executive Mary Delahunty says the early figures show the policy is working as intended.

"Payday Super was designed to make sure super is paid at the same time as wages. Two months in, the data shows that is happening for millions of workers," Delahunty says.

"When super is paid sooner, it is invested sooner and earns returns for longer. A 25-year-old on average wages will have around $5000 more in retirement just from more frequent payments. It has also made it less likely that workers will miss out on being paid the super they are entitled to."

Getting money into super sooner gives it more time to be invested and potentially benefit from compound returns over a working lifetime.

Unpaid super may be easier to spot

ASFA says younger Australians, tradies and hospitality workers are among those most likely to miss out on super because of unpaid contributions.

"Younger Aussies, tradies, and hospo staff are among the workers most likely to miss out on super because of unpaid contributions. They are the people Payday Super was designed to protect," Delahunty says.

"Under the quarterly system, workers often noticed missing super four to six months after they earned it.

"By then the business may have gone into liquidation, and the super may never be recovered. Employers now have seven business days after payday to get super into a worker's fund, so a missed payment can be identified within weeks, not months."

The shorter payment timeframe means workers may be able to identify missing super contributions much sooner than under the previous quarterly system.

This article first appeared on Financial Standard

Around 2.5 million Aussies are expected to retire over the next 10 years.

But financial planner Trudy Jenkins from NGS Super believes some in this cohort will be better prepared for unexpected costs than others.

"Baby boomers are much better at having an emergency fund amount," she says.

"I think it's because that generation was often setting some money aside. But my generation, Gen X, is kind of a wing-it generation."

From surprise vet bills to six-figure loans for adult children, some retirement costs can quickly derail even the best-laid financial plans. Here are four hidden expenses experts say Australians often overlook.

1. Pet bills

Desire for an animal companion is something Jenkins says she sees strike many people who've recently called time on their careers.

"When people do ease into that retirement phase, they end up getting a pet for company," she says.

"But they're not thinking about the costs that could come with that."

Jenkins has witnessed the financial toll a trip to the vet for an emergency procedure can take on retirees.

In one case, a couple ended up spending over $10,000 from their savings on several surgeries for their cavoodle within just a few years.

Pet insurance can be costly and rising premiums have grabbed headlines recently, but Jenkins says it is worth considering as a way to cushion you against vet bills.

You can get the most value out of a policy if your pet is still young.

In which case, take out a policy as soon as possible, before your pet develops any underlying ailments insurers may refuse to cover.

2. Emergency repairs

Jenkins says minor home repairs and upgrades can be put off if you're retired and looking to save money.

But sudden major damage will give you no choice but to stump up some cash if you want to keep living in your property

For example, Jenkins recently helped two people manage payments after the roofs of their homes were damaged by wild weather.

"You're looking at $10,000 to $20,000 for a new roof. So that is something that people do not foresee or put into the budget."

She says it's also important to think about whether any ongoing maintenance jobs can build up into something expensive if neglected.

"Things where you might not need to do them very often and you completely forget that they will need maintenance at some stage can be costly."

3. Bank duties

Stories of parents playing bank of mum and dad and dipping into their savings to help adult children are regularly in the news.

Vincent Stranges, retirement specialist at Generation Life says the sums are getting bigger.

"The amount could vary from $25,000 to help pay off some loans or even a HECS debt, to having to help the kids get into the property market," he says.

"$100,000 up and upwards is not uncommon... kids may need help with a home deposit or going through marital issues."

But Stranges says Aussies are taking on bank of mum and dad duties at more advanced ages, causing well-meant lending to clash with their plans for retirement.

"People in that cohort nowadays would've had children later, so those needs [to help kids] that historically would've been an issue 15, 20 years ago are now an issue just before they hit retirement."

Pressure to lend money can even come from later generations, says David Lane, head of wealth advisory at Focus Partners Australia.

"Increasingly, we tend to find a lot of grandparents will fund some or all of their grandchildren's education."

Lane warns older Aussies considering extending this sort of help to think about the expectations it might set.

"If you do that for one [child or grandchild], typically you need to do it for all."

4. Lifestyle creep

Lane says daily expenses are another area where retirees can see their budget get eaten up more quickly than expected.

"Your spending patterns will be different when you are retired, you'll have a lot more time on your hands," he explains.

"A lot of people will say: okay, well, I'll spend similar amount as I've been spending while working. But sometimes when you're at work, you're restrained from spending."

He said retirees have a lot more time for new hobbies and pastimes.

"Things like gym or golf club memberships and going out to lunches more regularly than you would when you're at work. Those sorts of things need to get factored into the budget."

What can you do?

Experts say building up a buffer of cash savings is a straightforward way to prepare for any of these costs.

But it's worth putting a figure on potential expenses where possible, to know what you should be working towards.

To prevent lifestyle creep, think about what you'll actually be doing in retirement.

"Think about what your lifestyle will be and factor in things like holidays," Lane says.

"Obviously, you've got a lot more time and one of the main goals of a lot of people when they retire is to travel more, so actually put that into the budget as well."

Itemising potential costs around the home can help you prepare for any sudden home repairs that might crop up.

"Go around your house room by room and look at the potential items that will need upkeep or maintenance.

"[Think about] whether or not your house will need a repaint in five years' time or whether you need a new toilet, bathroom, fridge or washing machine."

It's also worth looking at income products like annuities.

These are investment products that take your cash and turn it into a regular income stream for life.

They can be structured to pay you more money earlier in retirement, when you're living a more expensive lifestyle, instead of holding too much back for when you're older and less active.

What if the biggest threat to the artificial intelligence (AI) boom isn't that AI fails, but that it succeeds at a price investors can no longer afford? That is the hidden financial risk behind the AI boom, and investors may be overlooking it as technology companies pour billions into the race to dominate AI.

For years, the world's biggest technology companies were prized because they could grow rapidly without constantly building factories, mines or other expensive physical assets. AI is changing that.

Microsoft, Alphabet, Amazon, Meta and Oracle are pouring extraordinary sums into chips and data centres, with Reuters estimating that every additional dollar of operating cash flow between 2025 and 2027 could be matched by around $1.57 of additional investment.

We are already seeing what that can do to some of the world's biggest cash-generating businesses. Alphabet recently recorded negative free cash flow for the first time in more than two decades. Reuters expects the five technology giants combined to eventually spend more on new investment than they generate in free cash flow.

As a result, public markets are beginning to ask some uncomfortable questions.

In Australia, data-centre developer Firmus Technologies has reportedly been forced to reconsider a proposed valuation of nearly $44 billion, and on Friday announced it had withdrawn its application to list on the ASX.

That's particularly striking given its valuation was below $2 billion roughly a year ago and about 97% of its contracted revenue reportedly relates to facilities that have not yet been built.

It isn't alone.

SoftBank-backed US data-centre developer SB Energy has also delayed its IPO as investors scrutinise its enormous funding requirements. Meanwhile, OpenAI has ruled out a 2026 listing, citing AI safety concerns rather than investor demand.

This is where I think investors may be missing the bigger risk.

AI companies need enormous computing capacity. Data centres need billions in financing. Chipmakers need those data centres to keep expanding, and technology giants need AI revenues to eventually justify all that spending.

Each part of the chain increasingly relies on the next.

That doesn't mean AI is a bubble or that the technology will fail.

Demand may ultimately justify today's investment, but markets don't need AI to fail for shareholders to lose money. Expectations simply need to outrun the cash these businesses eventually produce. Let's not even entertain the idea that a lower-cost competitor enters the fray, which I believe is the biggest risk.

Ultimately, what will decide how this ends up is whether those contracts eventually generate enough cash to pay for the revolution investors have already priced in. AI may change the world and still be a terrible investment at the wrong price.

Best and worst sectors

Healthcare was the best-performing sector so far this week, rising more than 2% as investors rotated towards defensive healthcare stocks amid market volatility, with gains in Cochlear and biotech companies providing support.

Utilities gained more than 1.8% as investors sought more stable earnings amid rising bond yields and economic uncertainty.

Energy rounded out the top three, up more than 1.7%, as renewed Middle East supply concerns supported oil prices and Australian energy stocks, although WTI crude remained below the key US$100 level.

At the other end of the market, Information Technology was the worst sector so far this week. It fell more than 4% as rising global bond yields weighed on growth-stock valuations.

Materials was the second-worst sector, dropping just under 1% as broad selling across iron ore, gold, lithium and rare earths stocks dragged the sector lower despite some underlying commodity prices holding firm.

Industrials rounded out the worst performers this week, falling more than 0.8% as rising borrowing costs and concerns about the Firmus data centre IPO weighed on sentiment.

Best and worst stocks

Cleanaway Waste Management led the ASX Top 100 this week. It climbed more than 6% following renewed progress on EQT Infrastructure's proposed takeover, with investors encouraged by the prospect of a deal.

Telix Pharmaceuticals followed, rising more than 4.5% after its brain cancer imaging drug Pixclara began commercial use in the US, while UBS upgraded its price target from $22 to $26.

Insurance Australia Group Limited rounded out the leading performers, gaining more than 4% as investors favoured defensive insurers, with IAG also challenging the competition regulator's decision to block its proposed RAC Insurance acquisition.

At the other end, AMP Limited was the weakest performer, falling more than 5% amid concerns about higher interest rates and weaker investor sentiment.

Ramelius Resources followed, down more than 4% amid broader gold-stock selling, while its quarterly update highlighted weather-related production disruptions despite stronger cash reserves.

NEXTDC Limited rounded out the worst performers, also falling more than 4% as rising bond yields intensified concerns over the company's substantial data centre expansion costs, funding requirements and future profitability.

All Ordinaries Index Update

The All Ordinaries Index started the week with buyers in control, but sellers took over on Thursday, pushing the index down around 0.35%. This has become a familiar pattern over the past three weeks: buyers drove the market higher, only for Thursday's selling to wipe out those gains. That puts the key 8830 level back in the spotlight, with Friday shaping up as another important session.

Interestingly, buyers have stepped in on each of the past three Fridays, helping the market recover and close the week above 8830. If we are going to see any convincing signs that a sustained rally is beginning, that pattern needs to continue. A weekly close below 8830 would suggest buyers have finally lost the battle at this critical level, increasing the likelihood of a further decline towards 8600.

If buyers successfully defend 8830, the next challenge will be reclaiming 9000. More importantly, I want to see the market hold above that level before we become more confident a meaningful recovery is underway.

Seasonally, October is still tracking below its historical average return of around -0.25%, although we are only in the early stages of the month and coming off a particularly bearish September. What interests me more is how long this weakness has persisted.

After the previous two significant market peaks, the All Ordinaries established a four-week low. We are now approximately eight weeks into the decline from the August 2026 peak, raising the question of whether the market is approaching a turning point or preparing for another leg lower.

For now, investors need to remain selective and prepared for either outcome. After all, successful investing isn't just about how much money you make. It's equally about knowing when to take profits, protect your capital and, perhaps most importantly, when to stay out of the market altogether.

The new rules prevent life insurers from using adverse genetic test results when assessing applications, removing a barrier that may have discouraged Australians from seeking potentially life-saving health information.

Assistant treasurer and minister for financial services Daniel Mulino says the reforms would allow people to make informed health decisions without fearing the consequences for their insurance access.

"Australians should never have to choose between accessing potentially life-saving genetic information and obtaining life insurance. With this ban now in place, they no longer have to," Mulino says.

The changes do not stop people from voluntarily providing genetic test results with written consent. However, those results can only be used when they do not disadvantage the insurance offer or policy terms.

Life insurers can still consider other relevant information when assessing applications, including existing illnesses, symptoms and family medical history.

Australians who believe a life insurer has breached the ban can report concerns to the Australian Securities and Investment Commission (ASIC).

How complaints about genetic testing will be handled

AFCA's updated rules, approved by ASIC and effective from October 8, specifically allow the complaints body to consider cases involving the solicitation or use of adverse genetic testing results in life insurance.

Council of Australian Life Insurers chief executive Christine Cupitt says the industry supported Australians having access to health information.

"Australia's life insurers want people to access the information they need to make informed choices about their health and to manage it proactively," Cupitt says.

Monash University DNA Screen co-lead Jane Tiller says the reform followed nearly a decade of work by researchers, patient groups, clinicians and policymakers.

"This reform will provide reassurance to people considering having genetic testing and paves the way for greater investment into preventive genomic screening," Tiller says.

The legislation will be subject to a statutory review every five years.

This article was first published on Financial Standard

What a $140,000 lottery win could do to your marriage

It's no secret money can ruin relationships, but what about when the issue is suddenly having a lot, rather than not enough?

New research has found a big lottery win makes it more likely men will settle down and marry, but has the opposite effect on women.

The study of the lives of Swedish people who won 1 million Kroner (around $144,000 AUD) was published in the Journal of Human Resources last month.

It found men who had received this sweet financial windfall were 30% more likely to get married within the next five years.

There was also a better chance these lucky blokes would end up having children.

But the consequences for women were very different.

The study found that, if they were already married, the money would double the likelihood of female winners getting divorced within the following two years.

But the authors of the article noted divorce became less likely as the years went on, suggesting the money was helping women move on from bad marriages, rather than ruining good ones.

Why Firmus cancelled its planned ASX IPO

If you've seen any finance news this week, you'll have noticed the name Firmus being thrown around with plenty of heated speculation.

Firmus is an Australian data centre company that builds what it terms "AI factories" filled with its own AI infrastructure that is more energy- and water-efficient than its competitors.

It's been in the news because on Friday it scrapped plans to list on the Australian Stock Exchange in what would've been the nation's second-biggest ever IPO.

Multiple outlets reported it had pulled back on going public after struggling to agree with investors on a share price.

Stake market analyst Samy Sriram says investors had been increasingly questioning whether the company would live up to its soaring estimated value.

"Previously, we were talking about Firmus listing at a $12 billion valuation. Within a few months, that evaluation had skyrocketed to about $43 billion".

"That big jump got a lot of investors asking questions: What will the revenue look like?"

Firmus will now reportedly look for money to fund planned expansion from private markets.

Using cash? Beware out for counterfeits

If you're taking advantage of cash discounts appearing at small businesses in the wake of the card surcharge ban, watch out.

The number of counterfeit notes in Australia is the highest it's been in six years, according to the Reserve Bank.

For every million genuine notes, the bank detected 20 fakes in the first three months of this year.

The detection rate has surged 277% since the end of 2024 and is the highest it's been since June 2018.

The good news is you're less likely to get counterfeit change for your morning coffee.

Of the 15,000 fakes detected in the March quarter, the vast majority were $50 or $100 bills.

 

 

 

 

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Record-high bond yields squeezing cost of living relief

Aussies are less likely to receive extra cost of living help at the end of this year due to high bond yields making it expensive for the government to borrow money.

Yields on Australian government 10-year bonds recently hit a 15-year high, mostly due to competition between governments and companies to borrow money in the US.

Governments issue bonds to borrow money which they then spend, but higher yields make this process more expensive.

Australia's treasurer Jim Chalmers says the yields on his government's bonds were putting "intensifying pressure" on the federal budget.

Therefore, an update to the fiscal blueprint at the end of this year would be unlikely to include money for taxpayers to help with the cost of living.

Fee coming for iconic Aussie tourist site

It's been a long time since seeing the Twelve Apostles was just a matter of pulling your car off to the side of the Great Ocean Road.

But soon taking in the iconic rock stacks (of which there are now only seven) will require booking in advance and paying a fee.

The arrangement coincides with the opening of a new visitor's centre, from where holidaymakers can access the best viewing points for the apostles.

Bookings for the new precinct open next week and the fee will come in next year.

But the Great Ocean Road Parks Authority hasn't announced how much it will cost.

It has said the fee will be "consistent with other popular nature-based attractions across the country".

The money will help pay for the facilities the authority now provides to those dropping in on the apostles, as well as protecting the local environment.

With many of us now demanding better experiences when we travel and putting greater strain on nature while we do it, such fees could become more common.

Listed on the Milan stock exchange, Buzzi (Buzzi SpA - BIT: BZU)  is an Italian family-controlled cement producer with a diversified portfolio of assets across the US, Italy, Germany, Eastern Europe, Brazil and the UAE, as well as a significant Mexican joint venture. The US is its most important market.

Why Buzzi shares look undervalued

Cement has attractive local economics: plants are highly capital intensive, difficult to permit and costly to replicate, while high transport costs create meaningful barriers to entry.

Still controlled by the founding family, Buzzi has an attractive net cash balance sheet, diversified end market exposure (~35% US, ~21% Central EU) and supportive valuation (~8% Free Cash Flow Yield, 0.9x Book Value).

Buzzi is cheap on an asset basis, with enterprise value of around €125 per tonne of cement capacity. This looks attractive given the group's substantial US exposure, where recent cement transactions have occurred at more than $300 a tonne.

At the current share price of €37.85, with a Market cap of €6.5 billion, Buzzi trades on just 8.4x 2026E EPS of €4.50 and 0.9 Book value.

We think shares are worth high-€40s or ~23% above current levels.

Buzzi's growth outlook and cement market trends

The company's mid-year report indicated they do not anticipate any significant changes compared with the macroeconomic and geopolitical environment observed in the first half.

International tensions and persistent economic uncertainty continue to affect markets, mainly through inflationary pressures on operating costs.

In their main geographies, Buzzi expect demand to remain broadly in line with the first six months of 2026.

The group is reducing its carbon intensity, with net Scope 1 emissions falling to around 562kg of CO₂ per tonne in 2025 and a target of below 500kg/t by 2030.

The Carbon Border Adjustment Mechanism (CBAM) should provide some protection by imposing a comparable carbon cost on imported cement, supporting the industry's ability to pass higher carbon costs through to customers.

Dividends, buybacks and shareholder returns

Buzzi generated €4.5 billion of revenue and €1.23 billion of recurring EBITDA in 2025, at a margin of around 27%.

The balance sheet is a key strength, ending 2025 with €1.1 billion of net cash, giving the group substantial flexibility for acquisitions, investment in existing plants and shareholder returns.

Near-term earnings are being held back by weaker construction activity in the US and Germany and higher operating costs, with management guiding to €1.1-1.2 billion of EBITDA in 2026.

In terms of downside, the company is trading below book value today, and on an EV/IC basis at 0.78.

It fell to around 0.6x during the Eurozone crisis and to 0.55x during the 2022 interest rate shock, which we consider to be a reasonable floor on an asset basis for a business.

However, the combination of roughly 0.9x book value and 8.4x earnings makes Buzzi more interesting, while capital returns are becoming more meaningful.

The dividend yield is only around 1.9%, but Buzzi has increasingly supplemented this with buybacks, which have amounted to roughly 2-3% of market capitalisation annually.

This takes total shareholder yield towards 4-5%, while leaving the group with substantial balance sheet capacity.

At 8.4x earnings, Buzzi has an earnings yield of around 11.9%, suggesting significant scope to increase distributions or deploy capital into attractive acquisitions and reinvestment opportunities.

If there's one major takeaway from my ETF journey so far, it's that the market is sensitive. Just as my portfolio began looking healthy and green, an external factor - in this case, yet another interest rate hike from the RBA - shifted things overnight.

That's left me with some questions. How much can global events affect my portfolio? Why does an RBA rate decision move markets so much? And when did Woolworths jack up the price of a roast chook to $13?!

While I can't explain the rising cost of supermarket poultry, diving into the eToro Academy has at least helped me make sense of market volatility - and how to start choosing the right ETFs out of the overwhelming sea of options.

Up until now, I'd mostly been focused on which ETFs to buy. What I hadn't paid much attention to was the bigger picture, the economic forces that move markets every day.

The economy: RBA decisions, CPI announcements and unemployment rates

I'll be honest, when my investing journey kicked off, I didn't think I'd need to worry too much about finance terms like "RBA decisions" or "CPI numbers", but they can have a big impact on the market.

RBA announcements

When the RBA changes interest rates, it impacts what people and businesses spend.

Higher rates mean higher loan repayments, so companies might make less profit - which can cause share prices (and the ETFs holding them) to drop. Right now, the cash rate is at 4.60%, the highest it's been since 2011.

As a beginner investor, it was one of the first times I'd seen a major economic announcement flow through to my own portfolio.

CPI (inflation) reports

The Consumer Price Index (CPI) is like the price tag on our cost of living - it measures household inflation. If it's high, everyday items (like a roast chicken) get pricier.

Unemployment rates

If unemployment is super low, it means the economy is healthy, but it can also mean people have more money to spend, driving up inflation. Rising unemployment on the other hand, is typically associated with a recession.

All of these can trigger market shifts and that's a good thing for me to remember when my portfolio is having a bad day - or week - it's probably just the market reacting to big news.

How major global events affect ETFs

One thing that surprised me is how much events overseas can affect investments sitting in my Australian portfolio.

Major events like war overseas, trade tensions between major nations, or an election in the US can impact the market and lead to chaos in the stock market.

Investors might scramble to panic-sell risky shares and go for something historically stable like gold, which has ironically dropped in value recently - my gold ETF (GLD.RTH) is down, while my broader SPDR S&P 500 ETF (SPY) is bouncing back after a few weeks in the red.

I assumed gold would always rise when markets got nervous. Instead, I've learned that even traditional safe-haven assets can fall in value depending on what's happening with interest rates, currencies and investor sentiment.

A few months ago, all I knew about ETFs was that they're an investment fund comprising a bucket of assets.

What I didn't know was just how specific they could get, or that there's an exchange-traded fund for just about anything these days, even extremely niche subjects.

Uranium fan? There's an ETF for that. Interested in European defence and aerospace companies?

There's an ETF for those too. You can even find AI-themed ETFs these days - funds that bundle up chip makers, robotics companies, and software developers all into one package.

For better or worse, AI is creeping into our lives from every angle (and growing too quickly if you listen to some experts) and while I already have some exposure thanks to my SPY ETF, which includes big-tech leaders like Nvidia and Microsoft, I think it might be worth buying into an ETF that specialises in AI. (Update: I did!)

The more I learn, the more I realise investing isn't just about picking the right ETF. It's also about understanding the forces that move markets in the first place.

How to know if an ETF is a good buy

Investment platforms launch new ETFs all the time, so it can be very tempting to jump on the latest new thing... or whatever's trending on social media.

According to the Academy, there are few questions you should ask yourself before you hit buy, such as what your investment goals are, what's actually inside the ETF (is it full of profitable companies or startups that haven't made any money) and what the fees are (if any): ETFs usually have lower fees but niche or thematic ETFs often charge higher management fees than simple, broad-market ones.

It's easy to get "shiny object syndrome" when a new fund launches but I'm still a beginner so jumping into an unproven, super-niche ETF is a recipe for disaster - or at the very least, unnecessary stress.

Catch up on Diary of an ETF Beginner

• Week 1: My $100,000 investing experiment
• Week 2: I took stock tips from an influencer
• Week 3: What a $13 roast chook taught me

My adult kids aren't in a hurry to start a family. They have busy lives: working, juggling their bills, paying off student debt, trying to save and accumulating a deposit for a home.

They aren't alone. The average age of first-time mothers is rising and reached 30 in 2023.

Why delaying parenthood can affect fertility

Putting off having a baby too long can have an impact on fertility.

One in six couples suffer infertility, according to the Fertility Society of Australia and New Zealand.

While many can be successfully treated with medical or surgical techniques, or lifestyle changes, women and men are increasingly turning to in vitro fertilisation (IVF) and other reproductive technologies to start a family.

In fact, about 6% of babies born in Australia are conceived through IVF.

How much does IVF cost in Australia?

How much IVF will cost can be difficult to estimate because there isn't one fee.

"IVF costs vary a lot depending on an IVF clinic's fees, what services are included in the cycle, whether you are eligible for Medicare rebates or have reached any Medicare safety net and if you have private health insurance," explains Your IVF Success, the government fertility information site that helps people navigate through the maze of IVF.

It is important to understand other IVF costs in addition to the cycle costs and ask about fees for day surgery, anaesthetists, storing frozen eggs, sperm and embryos, and any add-ons the clinic may recommend as part of your treatment.

IVF is expensive with a private provider and a financial burden for families and singles who are desperate to have a child. An IVF cycle can cost up to $15,000 in Australia, while egg freezing costs $8000 for the first cycle.

There is intense competition among fertility providers, in particular for services such as IVF.

Many clinics provide loans for IVF treatments and services to help people access superannuation savings early, on compassionate grounds.

Five ways to make IVF more affordable

1. IVF rebates and government support

There are ways to cut IVF costs with the help of government rebates.

2. Go public

Some public hospitals offer free assisted reproductive services, if you meet the eligibility criteria, as an alternative to going private.

3. Bulk billing

Increasingly, IVF clinics bulk bill for some of the Medicare-eligible expenses, rather than charge the full amount. Australia is one of the few countries that has substantial government funding for IVF in the form of Medicare rebates to help make fertility treatments more affordable.

4. Company subsidies

Companies such as Meta and Apple started offering egg freezing as a benefit to US employees in late 2014 by subsidising the cost of elective egg freezing to help young female employees who may not be ready to have a child but would value the opportunity later in life.

It has caught on around the world.

There are companies in Australia with progressive human resources programs that pay for IVF. Several companies offer fertility leave too.

5. Accessing your superannuation

Applying for early release of super to fund IVF treatment is another option. But this option comes with a warning: raiding your superannuation will have a profound impact on your super balance at retirement because super relies on the compounding effect of your savings.

It's worth noting that while both men and women can apply to use their superannuation for IVF treatment, it is often women who dip into their super. As women typically have less superannuation than men, they need to protect what they have.

How to compare IVF clinic success rates

As well as the costs, you also want to know the success rate of an IVF clinic before you sign up. In Sydney, for example, there are 25 accredited clinics. Which one do you choose?

There is a ratings service measuring the success of IVF clinics against the national average run by the government with UNSW. See YourIVFSuccess.com.au.

The ratings service measures the success of clinics' fertility procedures such as births per complete egg retrieval cycle, births per individual treatment attempt, births per embryo transferred and pregnancies per individual treatment attempt. It urges anyone considering IVF to use the calculator on YourIVFSuccess.com.au for an individualised assessment.

I am secretly obsessed with reading bridezilla stories about greedy and demanding brides. In all fairness to the antiheroes, society places too much pressure on brides, and stress can get to all of us.

But while many of us appreciate how expensive it can be to organise a wedding, we often overlook the financial pressure it can place on wedding guests.

With the spring wedding season well underway, it's time to budget for the joyous occasion.

How much does it cost to be a wedding guest?

It costs a fortune to be a wedding guest. The outfit, transport and accommodation (even more if it's a destination wedding), time off work, babysitting, the bridal party and/or shower (sometimes multiple), the (dreaded) bucks' night, a rehearsal dinner, catching up with family and friends around the event, and often an engagement party.

According to Finder, the typical wedding guest in Australia forks out a whopping $2593 to attend the wedding, dress for the event, buy a gift and take part in pre-wedding activities.

The biggest expense is travel, at an average cost of $1038, followed by $665 for accommodation.

In China, an invitation is often called a 'red bomb' - 'red' because anything to do with a wedding is always the auspicious colour of red and 'bomb' because it costs a bomb to stuff a red envelope full of cash.

Twenty years ago, at my first wedding, we asked for red envelopes instead of presents. I worried it would be viewed as transactional and uncouth, with several guests still gifting presents. I received a lot of vases, which we then transported in stages from Queensland back to Canberra.

Wedding gifts, wishing wells and cash contributions

It's now socially acceptable to contribute through a wedding registry or provide another form of cash.

Registries are not new: major department stores continue to offer these services. But there is now an increasing variety of online wedding registries that cover everything from homewares to honeymoons or just plain old cash. It also makes it easier for the couple to choose something they want.

Now that I enjoy a stable financial position (and having received red envelopes in the past), I like being able to give generously (but not extravagantly) for important occasions. But with the high cost of living, not everyone is able to show such largesse.

That doesn't mean you should exclude yourself from festivities. Unless the bride truly is a bridezilla, there may be other ways to contribute.

For our second-time-lucky wedding, we asked guests to bring a plate of food or help set up the hall, draw caricatures on blackboards, make paella and wontons, perform town crier duties, sing karaoke and chauffeur us in a vintage 1950s car.

These gifts were meaningful to us and helped our guests connect. No special talents Perhaps offer to do errands pre-wedding or be the go-to person for problems on the day.

How to save money as a wedding guest

I also want to bust a myth: you do not have to buy a new outfit for a wedding. Certainly, do so if it makes you feel happy or buy vintage (aka secondhand). But do not feel pressured to do so.

All eyes will be on the happy couple, and while you might end up in group or family photos, you will not be the centre of attention.

It's also okay to say no to expensive wedding-related activities, such as trips away, if they don't fit your budget.

You can also say no to destination weddings: they chose to elope, not you. But if you know a wedding (or two or three) is coming up, make sure to budget for it, enjoy the event and boogie the night away.

How much money should you give as a wedding gift?

Couples now rarely have weddings paid for by their parents; increasingly, they are paying the cost of the event at the same time as saving for - or paying off - a mortgage.

They have usually put a lot of thought, effort and money into staging a special event.

If you are asked to contribute cash, as a rule of thumb, you should contribute at least what you would pay for a three-course meal. I suggest a minimum of $100 and usually around $150 to $200 per person - more if you are close to the couple or wish to be generous.

What are cryptocurrency ATMs?

Crypto ATMs are machines that allow you to sell cryptocurrencies in return for cash.

But most people use them in the opposite way: inserting cash in return for crypto that gets sent to a virtual wallet.

Ninety-nine per cent of transactions made using Australia's almost 2000 crypto ATMs were cash deposits in return for cryptocurrencies like Bitcoin and Ethereum.

That's according to the Australian Transaction Reports and Analysis Centre (AUSTRAC), the federal government's financial intelligence agency.

The machines have spread rapidly across the country, up from just 23 seven years ago, with Australia now home to more than any other Asia-Pacific nation.

They're often found in convenience stores and service stations, including in small regional towns with few other services.

How are they used for scams?

Almost $300 million is moved through Australia's crypto ATMs every year, but the biggest users of the machines are among the least likely to be serious crypto traders.

In 2025, AUSTRAC found most Aussies who use the machines were over 50 years old, with those aged between 60 and 70 particularly prolific.

This is despite only 8.2% of baby boomers owning cryptocurrency, according to a survey by online crypto exchange Independent Reserve.

AUSTRAC believes many of these older users are victims of scams and are being coached by people they've met online to use the machines to send away their savings.

The agency says the speed of these transfers and near-impossibility to reverse them have made crypto ATMs popular with cyber criminals.

It's not the only reason the machines have copped flack.

Virtual currency experts have pointed out their transactions fees can reach 15%, much higher than those charged by most online coin exchanges.

$1.5 million lost in three months

Tasmania Police recently revealed the state's residents had lost more than $1.5 million in just three months earlier this year after being convinced by scammers to send funds via crypto ATMs.

This is despite Australia's smallest state having only 28 of the machines.

Detective Sergeant Paul Turner said most victims had been convinced by people they had met online to hand over their savings.

"Victims are being manipulated, intimidated and pressured into sending money to scammers involved in fake investment opportunities and online romance scams," he explained.

The Tasmanian figures aren't a surprise to advocates at the Consumer Action Law Centre.

The group has long-argued crypto ATMs have no legitimate use in Australia and says they should be banned.

"The consumer harm associated with these machines far outweighs any legitimate consumer benefit," says policy officer Pavithra Jayasekera.

"They have become a clear vector for scams and are enabling criminals to steal life-changing amounts of money from Australians".

Since 2025, AUSTRAC has required crypto ATM operators to put limits on cash deposits and withdrawals.

The machines must also come with warnings alerting users to signs they might be being scammed.

Crypto ATM operators have argued they're following these rules and implementing extra measures to protect users from scams.

Signs you might be in a crypto ATM scam

Despite their increasing prominence, crypto ATMs remain a fringe financial tool in Australia.

Therefore, police and advocates say, you should be suspicious of anyone you don't know asking you to use one to send money, as they're likely trying to rip you off.

"No bank, government agency, police officer or legitimate business will ask someone to deposit cash into a crypto ATM to protect their money, pay a bill, recover funds, or assist an investigation," says Jayasekera.

"Any such request should be treated as a major red flag".

"If you're unsure about a transaction, please seek advice from trusted friends, family members or police before proceeding," says Detective Sergeant Turner from Tasmania Police.

"And always take the advice provided by your bank".

Spring usually gets us thinking about cleaning out the garage, clearing the wardrobe or finally getting around to those jobs we have been putting off. But it can also be a good time to clean up your finances.

The funny thing about finances is that most of the clutter does not arrive all at once. It builds slowly. A subscription here, a higher interest rate there, an old super account or insurance policy you have not looked at for years.

You do not need to completely overhaul everything. Often, a few small changes can make a meaningful difference.

Start with where your money is going

Look through your bank statements from the past few months. Not to judge every coffee or takeaway, but simply to understand where your money is going.

Look for subscriptions you have forgotten about, memberships you no longer use or expenses that have slowly crept up over time.

If you can free up even a few hundred dollars each month, think about where that money could work harder for you.

It might go towards your mortgage, savings, superannuation or investments. It is also worth checking whether the automatic transfers you set up a year or two ago still make sense today.

Your income changes. Your family changes. Your priorities change. Your financial system should change with them.

Give your debts a check-up

When was the last time you checked the interest rate on your home loan? Many people know exactly what their house is worth but have no idea what rate they are paying on their mortgage.

Review your home loan, credit cards and any other debts you have. There may be opportunities to negotiate a better rate, restructure debt or simply become more deliberate about what gets paid down first.

While you are there, check your emergency savings too. Having some cash available for the unexpected can make a big difference when life does what life tends to do.

Check the things you rarely look at

Superannuation and insurance are two areas that are easy to set and forget: check your super fund, investment option, fees and beneficiaries.

Then think about whether your insurance still reflects your life today. If you have changed jobs, increased your mortgage, had children or experienced another significant life change, the cover you put in place years ago may no longer be appropriate.

Keep it simple

A financial spring-clean is not about trying to find something wrong. It is simply about making sure the decisions and systems you already have in place still suit the life you are living today.

Sometimes financial progress is not about doing more. It is about clearing out what you no longer need, tightening up what you already have and making sure your money is still working towards the things that matter most to you.

In his book Points: Mastering the Game of Frequent Flyer Points, author David Moloney reveals how to earn points quickly and easily by systematically pursuing the highest return with the lowest level of effort, no jet lag required.

Here's how to get started.

Fishing for points

To start, you need to figure out what kind of point-netter you are, from a 'passive fisher' to a 'pointaholic'.

For every type of points fishing, I'll share several strategies, some of which you can (and should) implement instantly.

We'll start in shallow water with the OG of points earning: travel and accommodation.

Passive fishing

With a little setup, these strategies will reward you handsomely for very little effort.

Flying high and double-dipping

The 'easiest' way to earn points is by booking flights and staying at hotels within the QFF program. Qantas readily displays the points and status credits for every flight on its website, along with the pricing options within the flight. It even provides a points calculator to speed up the discovery process.

All you need to do is make sure your QFF membership number is entered into every one of your partner accounts, such as hotels, cruise lines and hire-car companies, and in any reservations you make outside the Qantas website. Easy!

You may have heard the phrase 'double-dipping', the idea that you can get two sets of points for the one transaction. For example, some hotels will allow customers to gain points on the hotel's program and the Qantas program, if you link your QFF account. (At the time of writing, this works for Accor hotels.)

If you pay for the hotel stay with a Qantas-linked credit card, then you can 'double dip' with little effort.

However, you should always be on the lookout for better alternatives. I purchase my hotel nights through Hotels.com because they almost always match the lowest price and deliver a guaranteed 10% 'cash-equivalent' credit for future nights, and I use my Qantas-linked credit card to pay to earn points. The 10% from Hotels.com is typically much more generous than the hotel awards, which can be lost when you book through a third-party platform such as Expedia.

Here are the numbers:

• $1 in Qantas Hotels equals three points.
• $1 in Airbnb through Qantas equals one QFF point, plus 500 bonus points for your first-ever booking.
• $1 in car hire (such as Avis or Budget) equals four QFF points.

Earning from your essentials

Your everyday shopping at places like Woolworths, Big W and Caltex also nets you points easily.

The Woolworths Everyday Rewards program allows you to earn points when you shop online and in-store at Woolworths and partner retailers, including BWS, Ampol and Big W.

You get one Everyday Rewards point per dollar spent, and this can be exchanged at an earn rate of 0.5, that is, 1000 QFF points for every 2000 Everyday Rewards points earned.

You need to reach 2000 Everyday Rewards points to convert them to QFF points, and, of course, you need to link your account.

If you use a Qantas-linked credit card for your shop, you also get points for that, with the exact number of points depending on the earn rate of the card.

It is worth noting that not all purchases at Woolworths earn points. The supermarket giant doesn't pay points for 'hazardous' products such as tobacco, lotteries and sometimes gift cards, unless one of its gift-card bonuses is running.

The branded credit card bonus

Qantas-branded credit cards earn you points on every spend automatically without you having to re-enter your Qantas card on every transaction.

At the time of writing, there are no less than 35 credit cards offered by 15 financial institutions in Australia that offer this, including American Express and the major banks.

Unless you spend much more than average on food and petrol each year, your spending will probably get you a Qantas Classic return economy flight between Sydney and Melbourne (at 9200 points per leg) once or twice a year, but not much more.

You can increase that slightly by looking for cards with a higher earn rate, such as the 1.5 points per $1 spent on the HSBC Platinum Qantas Card, but cards like this typically come with much higher annual fees and points caps, so do the maths on your total costs.

The sign-on bonus for the card can be an astonishing source of points for not a huge effort.

At the time of writing, the maximum bonus is an incredible 200,000 points, equivalent to 10 Sydney-Melbourne return economy tickets.

However, always use credit cards for temporary debt only. Revolving credit-card debt is not good for your financial health and will eclipse the value of any points you earn.

A family affair

With Qantas, you can 'recruit' almost any member of your extended family who has points but isn't interested in using them, and they can simply transfer their points to lucky old you.

You can transfer as few as 1500 points, with unlimited transfers and no transfer fees. But be careful: family transfers are not 'regenerative', which means you still need to redeem or earn points on your account to avoid expiry dates being triggered.

Qantas has a very generous definition of who counts as 'family'. It includes everyone from your partner to first cousins, so my advice is get to Granny early.

Also consider the QFF Joey Club. It's free to join and allows kids to earn Qantas points on flights if they have their own seat (non-infant fare).

You can then sneakily do a family transfer from their account to yours or help them grow this account like a trust fund.

It will cost you a Qantas transaction to their account at least every 18 months, so it might be better to tell them when they're older that you took the points because they would have expired or horribly devalued anyway.

Passionate fishing

If you are prepared to up your game and show some passion in your points pursuit, then the following strategies will get your points balance to cruising altitude.

Mileage malls and more

If you're willing to put in the effort to 'swap where you shop', I elevate you to the status of a passionate points fisher.

Shopping directly at Qantas Shopping, Qantas' online shopping hub with more than 450 partner brands, can give you many extra points per dollar spent.

Log on with your QFF details and enable cookies so the website can track your spending.

You can also link your credit cards to your QFF account and receive direct card offers via email or on the web, obtaining points by paying with a linked card.

Qantas Wine is another darling of point hackers everywhere. With their extensive selection and rotating array of offers, you can earn an astonishing 30,000 extra points per quarter for subscribing to a case per month.

Look out for cases that are both discounted and carry extra point bonuses.

The numbers pay off quickly:

• $1 in Qantas Shopping can get you up to seven points. These vary by brand and partner shop and have limited-time bonus offers.
• $1 in Qantas Wine gets you three points if you have a premium membership, or one point if you have a standard membership.

As part of my research for this book, I purchased less than $1000 worth of wine and received more than 35,000 points, worth at least $700 and, if I redeem well, a multiple more, making the wine effectively free.

As always, check the pricing of goods to make sure you are not paying for these points with higher prices than are available elsewhere.

Flash points

As your passion for points grows, so will your attention span, and you will realise there are points-related offers happening pretty much all the time.

Some bonus offers will come to you through AI-driven analytic engines. Others are best found by you through free points e-zine subscription services, online forums or the AI prompts later in this chapter.

They mostly consist of limited-time point bonuses applied to certain items, sometimes every day, like petrol with three-times point multiples and huge bonuses for businesses signing up to fuel cards, but more often items that are highly profitable or that customers do not buy as much of.

Point arbitrage

The next technique requires a little more effort.

Point arbitrage is when you buy points in another airline's program because either their point cost or their redemption cost, or the net of both, is lower.

You can do this with any airline when the price is right.

There are often significant differences in pricing and rewards offered by each airline. While Qantas is currently selling points for between 2.5 cents and more than 5 cents per point, Alaska Airlines is known for selling miles that can be redeemed for the same ticket at much lower levels of points.

To reap the rewards, you must be passionate enough to join the Alaska Airlines program (or others) and respond to their offers.

In Alaska's case, you also have to redeem Qantas and other Oneworld flights through the Alaska Airlines website, not Qantas'.

The same strategy works for the other two major airline alliances.

The promotions are usually tailored, so bonuses can vary from user to user. In 2022, they varied from 40% to 60% bonus miles.

On occasion, loyalty programs offer transfer bonuses, another way to multiply the power of your points, whether earned or purchased.

The partner of one of my school friends is a passionate points hacker, and she games Alaska Airlines' bonus-offer models by clicking on each link but ignoring their initial offers until they offer a substantial discount, then buying up big.

Qantas Wellbeing 

If you're willing to really change your habits, you can sign up for the Qantas Wellbeing app. Armed with a smart wearable or your phone, you can track and log 'healthy' activities, from exercising to getting a good night's sleep, to earn points for good habits. You can earn up to 1000 points during the 28-day trial; after that, the earning rate is reduced.

You can also earn points by recruiting friends (currently 150 points per invite, up to a maximum of 20 friends or 3000 points).

Here are some of the activities and points listed:

• 30 minutes of running equals 12 points
• One round of golf equals 19 points
• Two hours of cycling equals 21 points
• 45 minutes of swimming equals 20 points.

Bear in mind that Qantas also runs a business in the wellbeing area: Qantas Insurance. Data on customer exercise behaviour is a great way for health insurance providers to find and keep lower risk customers.

Churn to earn

It's not only health insurance Qantas offers but also car, home and travel insurance. If you're willing to switch to a Qantas policy, it comes with enticing benefits:

• Health insurance - up to 140,000 points over six months (or more if you also use the Qantas Wellbeing app)
• Car insurance - up to 35,000 points
• Home insurance - up to 35,000 points
• Travel insurance - up to 25,000 points.

The same applies to mortgages, and this can be even more lucrative for points hackers.

The Australian Financial Review reported that one property investor switched all four of her mortgages to Qantas home loans and earns a whopping 400,000 points every year.

Obviously, the competitiveness of the mortgage pricing is critical, but if the mortgages are for investment purposes, any extra interest could be tax deductible, lowering what could be a high cost of point earning to something that could be profitable under better redemption scenarios.

Gift-card triple-dip

One of the simpler (although time-consuming) QFF strategies is 'triple dipping'.

Instead of directly shopping, buy gift cards when bonus offers are in place. You then use those gift cards to pay for your groceries at Woolworths, scanning your Everyday Rewards card as usual.

In effect, the same grocery spend generates three streams of rewards: first via the credit card, then via the supermarket loyalty program, and finally via the bonus points on the gift card.

It is not glamorous, and it requires a certain degree of organisation, buying gift cards in advance, keeping track of balances and linking accounts correctly, but for households with significant weekly grocery bills, the additional points can add up steadily.

One points hacker reported bonuses as high as 20 times on Everyday Rewards for Apple gift cards to purchase the same Apple phone they were going to buy anyway.

That's nearly 40,000 points, worth a decent chunk of the value of the phone itself if redeemed wisely.

Others report spending $200 on dog food at a pet retailer and netting 2950 points via a similar multiple-dip strategy.

As with most points strategies, the key is that the spending is ordinary and budgeted. The value quickly evaporates if the pursuit of points leads to overspending or interest charges.

Calendarised churn

Credit-card 'churning' refers to repeatedly signing up for new credit cards to collect their sign-up bonus points, meeting the minimum spend requirement, then cancelling or downgrading the card and moving on to another provider to do the same thing again.

This is still the biggest game in the points economy.

Brian Kelly, the US author of How to Win at Travel, admits to having 28 active credit cards and argues he is on the conservative side when it comes to credit-card points earning.

The card issuers are onto this gaming and are making it harder.

Rather than just signing you up and issuing you the points, they only issue them after you hit specified spending and tenure hurdles, with some splitting the bonus and only paying the total after two annual fees are paid.

It's also more important than ever that you never miss a payment. With comprehensive credit reporting, every late payment affects your credit score.

The best professional-level earners diarise their card churning so they align statement dates to never miss a payment and have the next round of applications in as soon as they have milked the full bonuses from their current cards.

Exploding vouchers

Exploding vouchers are time-limited and tend to come with a 'cliff'.

For instance, you need to spend a minimum amount of money to use the discount, and you'd better hurry because time is running out.

While Qantas doesn't currently use this strategy, you can use a Qantas-linked card to make these purchases.

Several cosmetics retailers do this in combination with points and status rewards, giving members who have reached a spend-based tier limited-time vouchers and discount coupons that require increasing minimum spends.

The strategy is designed to encourage repeat purchases and larger baskets, rewarding loyalty while creating a sense of urgency.

For the savvy points collector, these exploding vouchers can be a way to earn bonus points or hit status targets faster, but only if the purchases align with what you need.

Otherwise, the 'clock is ticking' pressure can lead to overspending, turning what looks like a deal into a costly impulse.

The key is to treat exploding vouchers as a tool, not a trap: plan ahead, spend within your usual budget, and only use them on products or services you were going to buy anyway.

The pointaholic

These 'pointaholic' strategies should be pursued only by the brave, dedicated and diligent. If implemented incorrectly, they can be detrimental to your financial health.

Third-party payment processors

There is a new pointaholic game in town for businesses.

Third-party payment processors have emerged, offering anyone with a business (and recently even consumers with big bills to pay) the opportunity to pay most of their bills, including payroll and, ironically, even tax, through a third-party process with a service fee in return for points.

In this way, they cleverly mirror the recently banished surcharge model used by merchants, which funds interchange, which funds points.

For anyone with a business, this third-party service fee becomes a business expense, an opt-in amount of approximately 1% to 1.8%, depending on the number of points you want to be rewarded with and whether they are paying for you directly or via your point-earning credit card.

The extra fee lowers the business's taxable profits but pays for the points.

If your business has expenses in the millions of dollars, then that's millions of points, an incredible new way to potentially lower the cost of your company's business flights and/or upgrade yourself to business class on the company's tab.

If you use these services through a business, the points will be owned by the business and so are to be used solely for business purposes, or they will be subject to fringe benefits tax.

Be careful, as the ATO has reported it is actively investigating businesses where employees accumulate more than 250,000 frequent-flyer points annually from business-related travel or expenditure.

It's not currently clear how these third-party payment processors will help their customers steer clear of this issue, so a little bit of compliance could go a long way, which is why this incredibly lucrative approach is a pointaholics-only strategy.

The gas gamble

This is what serious points collectors call 'stacking', layering multiple loyalty programs and promotions on a single everyday purchase so that one transaction earns rewards several times over.

Petrol is one of the most common examples because it's a regular household expense and several programs intersect.

Once your Everyday Rewards account is linked to a QFF account, you can begin stacking at eligible petrol stations.

First, scan your Everyday Rewards card when you fill up so the purchase earns Everyday Rewards points, which can later convert to QFF points.

Next, pay with a Qantas Premier Credit Card to earn Qantas Points again on the transaction itself.

Finally, use the Qantas app to activate or 'check in' to any available fuel promotions before you pay. These targeted offers can award bonus QFF points per litre on top of your base earn.

By applying all three layers, the points haul can be three or more times higher than normal, and even more for business customers with small fleets.

It is the level of complexity involved that elevates this to pointaholic territory.

You must calculate whether filling up with a certain brand of petrol, which may come with a premium price tag, is worth it for the points haul.

AI prompts to become a points master

As discussed, the points landscape is always evolving, and so your future strategies will have to evolve with it.

Following, you'll find specific actionable AI prompts I have developed with the help of ICG's AI team and Google Gemini Pro to help you maximise your points, whether you want passive-level help or professional-level guidance.

In each case, just type them into your preferred AI tool and substitute your details where suggested.

I encourage you to test them across as many platforms as you have access to and customise them for your context and use a prompt engineering tool if you have access to one.

Lastly, don't forget to open a new dialogue for fresh insights, as AI tools have a nasty habit of answering your next question in the context of your previous question.

AI points prompts for passive fishers

Here is a list of my typical monthly expenses (rent, utilities, fuel, entertainment, gym, groceries). Based on the current Australian market, map out a 'zero-to very-low-cost acquisition' strategy. Tell me exactly which free coalition loyalty programs I should join, which accounts to link and the optimal payment method to use for each expense to stop point leakage without paying high annual fees.

Passionate fishers

I have just been approved for a new rewards card. I have exactly 60 days to spend $4000 to trigger a 90,000-point bonus. I currently only have $2000 in planned organic expenses over the next two months.

Give me a list of 10 highly creative, legitimate methods to legally front-load my standard Australian living expenses (such as prepaying strata or council rates) to hit this target without going into debt.

Professional fishers

I am considering cancelling my current rewards credit card because the annual fee is due next month. I know banks use predictive churn modelling to intercept customers before they leave. Draft a script for me to use when calling the bank's retention department. Tell me exactly what phrases to use to trigger their internal algorithms to offer me a bonus points package to stay.

Be prepared for turbulence

There are some unfortunate characteristics of points systems that I need to warn you about, especially if you're straying into the pointaholic category.

Unlike the dollars in your bank account, loyalty points don't earn interest and are therefore not compounding.

If you have no activity, QFF points will expire in just 18 months and, from time to time, like every other airline and points issuer, Qantas will adjust the value, almost always downwards.

Don't become complacent and always be prepared for your points to devalue.

Some of us witnessed the 2001 collapse of Ansett, one of Australia's major domestic airlines at the time.

Because frequent-flyer points are treated like unsecured debt, customers with Ansett points watched them vaporise with no compensation. Ouch!

Like most new challenges in life, it is good to start with some sort of achievable goal.

When you reach that points milestone, redeem those points with gusto before that flight or hotel costs you up to 20% more because of yet another devaluation.

My prediction? As Qantas devalued its points in 2004, 2019 and 2025 (by increasing the points required for its flights, to be fair, to align with the ravages of inflation), we should all be safe until at least 2029.

Of course, this is an estimate and so can't be relied upon.

Always be prepared for turbulence.

Remember: all points programs are a gamble, and the airlines and partners wouldn't take part if they weren't confident they could 'win'.

Know the risks, be prepared for the losses (which are not always obvious) and educate yourself. That's why you're reading this, after all.

How to protect your points

You can do this in several ways:

• Diversify: Think about earning your points in different programs, typically one for each of the three major airline alliances. This reduces the risk of a single program devaluing or collapsing. The downside is that it's typically not helpful for maximising status or earning bonus points.
• Choose transferable programs: Ideally, choose a program that offers transferability. In Australia, American Express and HSBC offer points transferability to multiple carriers, and fortunately, airlines don't align their devaluations like banks when lowering interest rates.
• Know your net earn rate: Your 'net earn rate' from points is dependent on several factors, including payment surcharges (now only on charge cards), annual fees and the additional costs of your time and effort. Amassing a portfolio of millions of points is designed to make you feel rich, but it always comes with a risk, so don't ignore the hidden costs in the equation. This links to the next point...
• Don't overpay: The most dangerous hidden cost of all is the potential price inflation on a product if you only shop at a certain retailer because you 'need' the points from the purchase. Be careful, you may end up paying more for the goods because the price may have been inflated to cover the cost of those precious points you desire.
• Understand the points paradox: We all tend to overestimate our competence at the game of points. We routinely and systematically underestimate the cost of earning them.

That's why it helps to have a formula, which is your 'marginal earn cost per point'.

As a rule, in the old world of surcharging, you should have been aiming to earn points at no more than 1 cent per point.

With the banishment of surcharges, unless you are 'buying' points through a payment processor, earning points through product activation or retention bonuses, or using a charge card, points will appear free.

Even so, watch out for price rises to cover the cost of points, and the cost of any cards used to earn the points. Also look out for suppliers with more customers who ignore the loyalty program and who will helpfully (and likely unknowingly) subsidise your rewards.

This is an edited extract from Chapter 4 of Points: Mastering the Game of Frequent Flyers (Major Street, $34.99). Enter now for your chance to win a copy!

We've all been there. You're hard up for cash, but don't want to go to a bank or payday lender.

In times like these, a loan from a friend or family member can seem like an easy fix. But it's a route fraught with danger.

The financial risks of lending money to family and friends

When you get a loan from a finance provider, the worst that can happen is you default, debt collectors arrive at your door and your credit score takes a hit.

Friends and family, on the other hand, don't have access to credit files. If you don't pay them back, or they don't pay you, your credit worthiness will be unaffected.

But that's where the advantages end and the problems begin - and it goes far deeper than finance.

If you are lending a small amount of money you may not be overly concerned about being repaid, "you may write it off as a gift", says Genene Wilson from Finesse Financial Advisers.

"Ask yourself, though, if you are setting yourself up for many more 'gifts' in the future."

Enlisting the services of a lawyer, who typically charges between $200-500 an hour, to sort out a loan gone bad is out of the question.

An hour's consultation could exceed the amount you're out of pocket from the loan.

Why family loans can damage relationships

Then there's the social cost.

"There's also a host of other complexities that you need to keep in mind, such as the influence of partners, in-laws and your other family members who will have a vested interest in the arrangement," says behavioural economist and psychologist Phil Slade.

"Loaning to family is rarely a simple agreement between two parties, and therefore that more complex context needs to be taken into consideration whenever terms of an agreement between family members is being negotiated."

Loans between friends and family can also violate untold expectations.

"How would you feel if a family member owed you a significant amount of money, but then sent their kids to a relatively high fee paying school, or went and bought a new car?" Slade says.

"They might be repaying you according to the terms of the original agreement, but as you're unlikely to be earning interest on the loan, this still feels like you're being taken advantage of in some way."

The hidden cost of lending money to loved ones

There's usually nothing in it for the loan provider, beyond the social kudos.

These loans usually don't have interest rates, "which means the lender has not just lost that money temporarily, but also the ability to invest or earn interest from that money in some way, shape or form."

All this is not to say that loans between family and friends are impossible without risking total relational breakdown.

How to lend money to family safely

Being open about expectations, especially timeframe for repayment, is key.

"Set up clear rules, but then make sure you have points in time where you can revisit those rules in a safe way to accommodate for change," says Slade.

"Remember, money and family relationships are two of the most emotional triggers we have, and mixing them together can be dynamite - so handle with great care."

Even semi-formal loan agreements can provide much-needed formalisation.

For those who want to move past paper agreements, apps such as Credi allow lenders and borrowers to work out all the terms and conditions of the loan. Agreements are then e-signed and repayments tracked via a phone app or online.

Reader question

I have lived in the same three-bedroom inner-Sydney house since 2020, and the household has functioned steadily with co-tenants.

The owners are now considering selling and have expressly invited me to make an offer before they commence a marketing campaign.

One of the two expected appraisal inspections has taken place.

My present individual borrowing capacity is limited, so I have started exploring whether a small group of trusted friends could pool resources to make ownership achievable.

I am already speaking with a mortgage broker and would obtain independent legal and financial advice before proceeding.

I came across your comments about buying property with friends and thought my situation might be one where your perspective would be particularly valuable.

My central question is: What would you regard as the most important financial and relationship risks to resolve before a group of friends considers purchasing a home together? - Anssi

Paul Clitheroe's response

Good question, Anssi. A shared purchase can enhance or destroy friendships. I am pleased you took the time to send me an email about this way of buying property.

It makes a lot of sense, but it must be done with care.

You have nailed the technical aspects of a shared purchase. Talking to a mortgage broker and then seeking independent advice before proceeding is the way to go.

But the most important issue here is not blowing up your friendships.

Before you see an independent adviser, you need to pull out the wisdom of Solomon and discuss with your friends exactly how this will work. I've seen a shared purchase work well, and it usually does until life changes.

It sounds like you would live in the property with your co-purchasing friends.

Obviously, you would sign an agreement involving mortgage repayments, costs and so on, and it is usually low stress until life gets in the way.

The list of life stuff is as long as your arm, but what happens if one of the owners loses a job, gets ill, moves for work, wants to buy their own place, or there's a friendship falling-out?

The obvious solution is a buyout, but will the rest of the group have the financial capacity to do this?

An adviser will most likely suggest 'majority rules' if it is necessary to sell the property, but this often leads to disappointment for those who don't want to sell.

I think the right answer is more complex than this when it involves friends.

I'd like you all to sit down together and discuss life and the changes it brings. I'd add this 'soft' conversation to your agreement as a reminder of why you bought together.

About all you can say with confidence is that people's lives always have and always will change.

So do your best to discuss this openly and take your conclusions to an adviser to document your thoughts, not just provide a standard template.

What to read next

• The pros and cons of buying property with friends
• Ask Paul: Should I buy a house with my adult children?
• Read this before you buy property or go into business with family
• Ask Paul: Should I buy a home with my mate?
• Friends With Money #22: Who owns the house? Joint tenancy vs tenants in common

On this episode of the Friends With Money podcast, Money's Vanessa Walker is joined by frequent flyer expert and author David Moloney to unpack the latest shake-up to credit card rewards and what it means for points collectors.

They discuss why points can still offer serious value, the easiest ways to boost your balance from everyday spending, and the common mistakes that can leave you worse off, including paying interest, chasing points for the sake of it and letting rewards sit unused for too long.

Episode timestamps

00:00 Introduction

01:08 How new RBA rules are changing rewards programs

02:10 Are frequent flyer points still worth collecting?

03:05 Why most points are now earned on the ground

04:13 The highest-return, lowest-effort strategy

05:45 Three simple ways to earn more points

07:29 Are points really free?

08:00 The dangers of credit card debt and rewards chasing

09:11 The hidden "lazy tax" points collectors pay

10:37 Why you should redeem points before they lose value

11:00 Conclusion

Enter now for your chance to win Points: Mastering the Game of Frequent Flyers by David Moloney

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.

The investing world is full of jargon, from basic sharemarket terms to complex Wall Street slang. Understanding these investing terms can help you make sense of market moves, analyst commentary and social media investing trends.

Here's a plain-English guide to 50 investing and stock market terms every Australian investor should know.

Stock market terms every beginner should know

All Ords 

The All Ordinaries Index, or All Ords, tracks the 500 largest companies listed on the ASX and is one of Australia's most widely quoted sharemarket benchmarks.

ASX 200

The S&P/ASX 200 tracks the 200 largest companies listed on the ASX by market capitalisation.

Market cap 

Market cap, short for market capitalisation, is the value of a company's outstanding shares and is commonly used to measure a company's size.

Companies are often grouped by market cap:

• Mega cap: $200 billion+
• Large cap: $10 billion+
• Mid cap: $2 billion to $10 billion
• Small cap: $250 million to $2 billion
• Micro cap: Less than $250 million

Blue-chip shares

Blue-chip shares are stocks in large, established companies with a strong track record of earnings and financial stability.

In Australia, companies such as Commonwealth Bank, BHP and CSL are often referred to as blue-chip shares.

Retail traders

Retail traders are individuals who use their own money to buy and sell investments.

Unlike institutional investors, they do not manage money on behalf of others.

Institutional investors

Institutional investors are organisations that invest money on behalf of large groups of people.

Examples include superannuation funds, pension funds, hedge funds and managed funds.

Brokerage

Brokerage is the fee charged by a broker or trading platform when you buy or sell an investment.

Brokerage costs vary between providers and can affect your overall investment returns.

ETFs

An exchange traded fund (ETF) is an investment fund that holds a basket of assets, such as shares or bonds, and trades on a stock exchange.

ETFs can provide diversification at a relatively low cost.

Index fund

An index fund is an investment fund that aims to track the performance of a market index, such as the ASX 200 or S&P 500.

Because they simply follow an index rather than trying to beat it, index funds often have lower fees than actively managed funds.

Diversification

Diversification is the practice of spreading your investments across different assets, industries or markets to reduce risk.

The idea is that if one investment performs poorly, gains in other parts of your portfolio may help offset the losses.

Portfolio

A portfolio is the collection of investments owned by an individual or organisation.

A portfolio can include shares, ETFs, bonds, property, cash and other assets.

Sharemarket movements and investing jargon explained

Bull market

A bull market occurs when share prices are rising or expected to continue rising over a prolonged period.

The term is associated with optimism and investor confidence.

Bear market

A bear market occurs when share prices fall significantly from recent highs, typically by 20% or more.

Bear markets are associated with pessimism and weaker investor sentiment.

Correction

A market correction is a decline of 10% or more from a recent market high. Corrections are a normal part of investing and can occur after markets rise too quickly.

Rally

This refers to a sustained upward movement in the stock prices. Rallies can occur in either bear or bull markets.

Sell-off

A sell-off occurs when a large number of shareholders sell a particular stock. Heavy selling pressure can push a share price lower.

It may happen when there is news about the company, or rumours or lower than expected earnings.

Volatility

Volatility measures how much an investment's price moves up and down over time.

High volatility means larger price swings, while low volatility generally indicates greater stability.

Markets tend to become more volatile during periods of uncertainty or economic stress.

Dead cat bounce

A dead cat bounce is a temporary recovery in a share or market after a steep decline, before prices resume falling.

Crystallise losses

To crystallise a loss means to sell an investment for less than you paid for it. Until you sell, any gain or loss remains unrealised.

Capital gains

A capital gain occurs when an asset is sold for more than its original purchase price.

For example, if you buy shares for $5000 and later sell them for $7000, you have made a capital gain of $2000.

Black swan event

A black swan event is a rare and unexpected event that has a major impact on financial markets.

These events are difficult to predict and often only seem obvious in hindsight.

Catch a falling knife

Catching a falling knife refers to buying a rapidly falling stock in the hope that it will rebound.

The phrase highlights the risk of buying before a share price has stabilised.

Trading and investing strategies you should know

Index futures

Index futures are contracts that allow investors to speculate on the future value of a sharemarket index, such as the ASX 200 or S&P 500. Because they trade outside normal sharemarket hours, index futures are often used as an indicator of how markets may open the following day.

Options trading

Options trading involves contracts that give traders the right to buy or sell an asset at a predetermined price before a certain date.

Options can magnify gains, but they can also increase losses.

Call options

A call option gives the buyer the right, but not the obligation, to purchase a stock or other security at a specified price before a set date.

Short selling

Short selling is a trading strategy based on the belief that the value of a particular stock will fall.

In practice, it could involve a short seller borrowing shares from a broker and then buying them back after the price falls, allowing them to profit from the difference.

Short squeeze

A short squeeze happens when a heavily shorted stock rises sharply in price, forcing short sellers to buy shares to cover their positions and limit losses.

The resulting demand can drive the share price even higher.

Gamma squeeze

A gamma squeeze occurs when heavy options trading forces market makers to buy shares, pushing the stock price higher.

This can create a feedback loop that accelerates gains.

Day trading

Day trading is the practice of buying and selling shares or other assets within the same trading day.

Day traders aim to profit from short-term price movements rather than long-term investing.

Multibagger stock

A multibagger is a stock that increases several times above its original purchase price.

For example, a five-bagger has increased fivefold since it was bought.

Markets and the economy explained

AUD and the exchange rate

The Australian dollar (AUD) fluctuates in value against other currencies, particularly the US dollar.

The Australian dollar (AUD) is often viewed as a commodity-linked currency because Australia's economy is heavily exposed to exports such as iron ore and coal.

If the dollar falls, it makes Australian exports cheaper for overseas buyers and imports more expensive for Australians.

Bonds

Bonds are investments that involve lending money to governments or companies in exchange for regular interest payments and the return of your original investment at a set future date.

Bonds are generally considered lower risk than shares, although their value can still rise and fall.

Investors often use bonds as defensive assets within a diversified portfolio.

Dividend

A dividend is a payment some companies make to shareholders from their profits.

Dividends are typically paid in cash, though some companies offer additional shares instead. Not all companies pay dividends, with some choosing to reinvest profits back into the business.

Yield

Yield is a measure of the income generated by an investment, usually expressed as a percentage.

For shares, yield is most commonly based on the annual dividend payments relative to the share price. For bonds, it refers to the return an investor receives from holding the bond.

Gold

Gold is often viewed as a defensive asset and may perform well during periods of market uncertainty, although its price can be volatile and there are no guarantees it will rise when shares fall.

Oil

The price of oil can have a severe impact on the economy; for consumers, fuel can be one of the largest purchases of the week.

The price at the pump is determined by supply and demand in the global market.

Changes in global oil prices can influence petrol prices, although the relationship is affected by factors including refining costs, exchange rates, distribution costs and retail competition.

Defensive assets

Defensive assets are generally lower risk and lower return investments that can help cushion a portfolio during market downturns.

Defensive assets include cash, fixed interest, bonds and gold.

Circuit breakers or market halts (NYSE)

On rare occasions, where the market falls dramatically in a single day there are systems in place for the market to halt trading to stop a total market crash.

Typically these halts will last around 15 minutes to give people time to absorb information, analyse it and make more rational decisions.

Here's how they function: if the S&P 500 falls 7% from the prior day's close, it triggers a 15-minute trading halt.

If the S&P 500 falls 13% before 3.25pm, trading halts again for 15 minutes. If the S&P 500 falls 20%, all trading remains halted for the rest of the day. These systems have a long history.

Recession

A recession is commonly defined as two consecutive quarters of negative economic growth, measured by gross domestic product (GDP).

Recessions are typically associated with rising unemployment, weaker consumer spending and reduced business investment.

Governments and central banks may respond with measures designed to support economic activity, such as lowering interest rates or increasing public spending.

A global recession refers to a significant downturn in economic activity across multiple countries.

Global financial crisis (GFC)

The global financial crisis (GFC) refers to the period of extreme stress in global financial markets and banking systems between mid-2007 to early 2009.

It was triggered by the collapse of the US housing market and the widespread use of risky sub-prime mortgages that were bundled into complex financial products and sold to investors.

Home buyers were given loans they were unable to pay back, and the loans were sold through complex products called mortgage-based securities to unsuspecting investors.

Meme stock and Reddit investing terms

HODL

HODL is a misspelling of "hold" that became a popular investing term meaning to keep an investment despite market swings.

It is commonly used by cryptocurrency and meme stock investors.

Diamond hands and paper hands

Diamond hands refers to holding an investment despite large price swings or pressure to sell. It's often accompanied by diamond emoji symbols on social media.

The opposite of having diamond hands is paper hands, a slang term for an investor who sells an investment quickly, especially during periods of volatility or price declines.

To the moon

To the moon is a phrase used online to express enthusiasm that a stock, cryptocurrency or other investment will rise sharply in value.

It is often accompanied by rocket emojis and became popular during the GameStop saga.

Meme stocks and WallStreetBets

Meme stocks are shares that gain popularity through social media, online forums or viral investor communities rather than traditional company fundamentals.

Their prices can rise or fall dramatically as retail investors pile in.

One of the best-known communities is WallStreetBets, a Reddit forum that became globally famous during the GameStop short squeeze and helped bring meme stock investing into the mainstream.

Dumb money

Not just the name of a 2023 film, dumb money is a pejorative for retail investors (or their investments), while "smart money" is used to describe institutional investors.

Bag holder

A bag holder is an investor who continues holding a stock after its value has fallen sharply.

The term suggests the investor is left carrying losses while other investors have exited.

Wall Street slang and risk warnings

Fallen angel

A fallen angel is a company, stock or bond that was once highly regarded but has experienced a significant decline.

Some investors view fallen angels as turnaround opportunities.

Greater fool theory

The greater fool theory suggests investors can profit from overvalued assets if they can sell them to someone willing to pay an even higher price.

The strategy relies on finding a "greater fool" rather than on an asset's underlying value.

Widow maker trade

A widow maker is a notoriously risky trade or investment strategy that has caused substantial losses for many investors.

The term is often used for trades that repeatedly catch investors out.

Pump and dump scheme

A pump and dump scheme is a form of market manipulation in which false or misleading information is used to inflate a stock price.

The perpetrators then sell their holdings at the higher price, often leaving other investors with significant losses.

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 Sydney's chief advocacy officer 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".