http://www.money-au.com.au/ Finance News from Money-Au.com.au 2008-07-04T22:30:44+01:00 en http://www.money-au.com.au/news//Buy-now-pay-later-deals-can-have-sting-in-tail_18667279.php 2008-07-02 19:59:00 http://www.money-au.com.au/news//Buy-now-pay-later-deals-can-have-sting-in-tail_18667279.php
Ratings agency Cannex told Adelaide Now that some finance deals might seem attractive because of their "substantial" interest-free offers, but if they still have an outstanding balance when these offers come to an end, shoppers could be "slugged" by interest rates of up to 30 per cent.

This could be particularly painful if consumers have put off making repayments until the interest-free period ended, the company said.

When considering taking out store finance, therefore, Australians should consider their options as there may be a more cost-effective solution.

The site said a personal loan, for example, taken out for $10,000 with an interest rate of ten per cent would incur monthly repayments of $322, which would clear the outstanding debt within three years. The total cost of repaying the loan would be $11,616, it added.

However, a store finance deal for the same amount - with half the debt cleared during the interest-free stage - would incur interest rates of 28 per cent. This would result in monthly repayments of $686 for 18 months, if the debt was to be entirely cleared within three years.

Furthermore, if the borrower did not clear any of the debt while it was interest-free and then only made minimum repayments, they would still be carrying a debt of $9,000 after three years.

At this rate, it would take 31 years for the deal to be paid off, the site concluded.

According to the Australian Bankers Association, consumers should always draw up a budget before applying for credit to ensure they can take on the debt and manage repayments.

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]]> http://www.money-au.com.au/news//Australia-needs-1m-new-homes-_18667271.php 2008-07-02 19:57:00 http://www.money-au.com.au/news//Australia-needs-1m-new-homes-_18667271.php
In its report, the organisation warns that current construction levels are insufficient and without a "substantial increase" in production, affordability will get worse and there will "almost certainly" be a rise in the number of homeless people, news.com.au states.

The site says at present building rates, Australia faces a shortfall of 175,000 homes against the 2013 target.

However, if households continue to break up and more people choose to live on their own, this could increase the shortfall to as much as 240,000 homes.

HIA chief executive of policy Chris Lamont told the site: "Supply must increase rapidly to meet expected demand."

The lack of balance between supply and demand means the affordability of property in Australia is currently at a record low.

According to figures from HIA and the Commonwealth Bank's First Home Buyer Affordability Index, affordability dropped by 3.5 per cent in the last quarter of the year.

Compared with 2007, it was down ten per cent.

Furthermore, high interest rates and tighter lending criteria driven by the credit crunch means Australians are now stretching their finances further than ever to keep a home - with mortgage repayments now accounting for a record high 29.1 per cent of an average first-time buyer's income.

And, despite HIA's call for "substantial" ramping up of building efforts, the site says new home building fell in March by 3.3 per cent, while private property construction dropped by 6.3 per cent over the first quarter of the year.

In related news, the federal government recently introduced plans for a Housing Affordability Fund that would help developers cover infrastructure and construction costs in order to lower house prices.

Find and apply online for the best loan deals.]]> http://www.money-au.com.au/news//Household-wealth-of-Australians-up-50_18667214.php 2008-07-02 17:37:12 http://www.money-au.com.au/news//Household-wealth-of-Australians-up-50_18667214.php
According to news.com.au, the Melbourne Institute Survey of Household, Income and Labour Dynamics in Australia put the net wealth of the average Australian household at $608,000 in 2006 - compared to $401,000 in 2002.

The country's soaring property prices were the main factor behind the rise, the site said.

However, it added, since 2006 Australian interest rates have hit a 12-year record high, inflation is at a 16-year peak and petrol prices are edging closer to $2 a litre - meaning Australians are paying much more for their higher cost of living.

The survey's deputy director, Roger Wilkins, said: "One would be reasonably confident that that growth hasn't continued in the past 18 months."

Nevertheless, Mr Wilkins said the survey indicates that the growth experienced between 2002 and 2006 was not confined to the richest end of society. Instead, it saw wealth increasing across a wide section of society.

According to another recent survey by brokerage firm CommSec, the average Australian is still better off than they were in 2002 - to the tune of $425 a month.

And CommSec chief economist Craig James said despite higher living costs, rising wages means it is "by no means the rule" that most Australians are struggling with their finances.

"Living costs have certainly been rising, but so have wages," he said.

Mr James added that despite the downturn in consumer spending, people would "filter back into the shopping malls" once they realise they can still afford to spend.

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]]> http://www.money-au.com.au/news//Groups-suggests-loans-for-maternity-leave_18665016.php 2008-07-01 19:20:00 http://www.money-au.com.au/news//Groups-suggests-loans-for-maternity-leave_18665016.php
A report commissioned by the Committee for Economic Development of Australia (CEDA) proposes establishing a HECS-style loan system that would fund up to nine months' of paid leave.

The think tank recommends that a 'user-pays' approach could be used to supplement government-funded maternity and paternity leave, enabling parents to access more paid leave if they chose to do so.

According to a new paper by the committee, politicians need to adopt a more progressive approach to parental leave in order to improve current provision for parents and businesses.

Davis Byers, chief executive of CEDA, stated: "Most of the current debate centres around consideration of proposals for a much shorter period of paid maternity leave of 14 weeks funded by the government.

"A longer period of parental leave would provide a better opportunity for maintaining a parent's longer-term attachment to the workforce. It would also increase the likelihood that parents would return to work with the same employer."

The report proposes creating a scheme offering a loan of around $14,000 to parents wanting to stay at home with their children for six months, complementing a government-funded scheme providing 14 weeks of paid maternity leave.

Created by economists Professor Bruce Chapman and Tim Higgins of the Australian National University, the plans include a repayments system that would come into force when households cross a certain income threshold.

HECS-HELP is a loan provided to students by the Australian Government, which pays the loan amount directly to the higher education provider and records the debt with the tax office.

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]]> http://www.money-au.com.au/news//Cash-rate-held_18665008.php 2008-07-01 19:20:00 http://www.money-au.com.au/news//Cash-rate-held_18665008.php
In a statement, the governor of the Reserve Bank of Australia (RBA) Glenn Stevens said that "inflation in Australia has been high over the past year in an environment of limited spare capacity and earlier strong growth in demand".

Mr Stevens insisted that the cash rate needs to remain stable in order to restrain demand and reduce inflation in the country as financial conditions have tightened since the middle of 2007.

He added that rising inflation was a result of a number of factors, including additional rises in interest rates, tougher credit standards for borrowers, difficult conditions in global markets and earlier decisions made by the bank's board.

According to the governor a "tightening in financial conditions" in conjunction with soaring oil prices and other factors is helping to restrain demand, with more subdued household spending patterns in recent months and slower loan and credit expansion.

"Inflation is likely to remain relatively high in the short term, and the CPI (consumer price index) will be further boosted in coming quarters by the recent rises in global oil prices," he predicted.

"Looking further ahead, inflation in both CPI and underlying terms should decline over time."

The latest decision is in line with analysts' expectations that the cash rate would remain on hold for a further month

A decision was taken by the RBA board to raise the cash rate by a quarter-point in March this year from seven per cent.

Australia's best savings accounts compared and reviewed
]]> http://www.money-au.com.au/news//Report-Credit-card-and-bank-fraud-numbers-top-380000_18664999.php 2008-07-01 19:20:00 http://www.money-au.com.au/news//Report-Credit-card-and-bank-fraud-numbers-top-380000_18664999.php Credit card and bank fraud figures in Australia numbered above 380,000 during the second half of 2007, making them the most popular ID scams in the country.

Figures from the Australian Bureau of Statistics (ABS) show that over five per cent of Australians aged 15 and over fell victim to personal fraud last year (800,000 people).

The ABS 2007 Personal Fraud Survey estimates that the total cost of scams and personal fraud for the second half of the year was almost $1 billion, with credit and bank card fraud accounting for more than 380,000 instances.

Carried out between July and December 2007, the research also reveals that the mean average loss for victims of personal fraud and scams over the period was $2,000 per person, while three per cent of victims lost more than $10,000.

People in Western Australia were found to be most likely to fall victim to personal fraud (3.5 per cent), while those in South Australia were least likely (2.2 per cent).

The ABS report states that "personal fraud has been recognised as a crime type that is a growing threat to the community, as a result of the rapid expansion and availability of internet technology and the increase in electronic storage, transmission and sharing of data".

Of the more than 800,000 people who fell victim to personal fraud in Australia last year, 453,100 lost money as a result, 77 per cent of whom reported fraudulent transactions on bank or credit cards.

The ABS poll asked 14,320 respondents about their experiences of fraud over the previous 12 months.

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]]> http://www.money-au.com.au/news//Consumers-take-lodgers-to-help-pay-mortgage_18664855.php 2008-07-01 19:00:00 http://www.money-au.com.au/news//Consumers-take-lodgers-to-help-pay-mortgage_18664855.php
According to chief economist of the Housing Industry Association (HIA) Harley Dale, spare bedrooms are providing debt-burdened homeowners with a bit of extra cash, news.com.au reports.

The current level of interest rates and the global economic crisis combined with a tight housing market will lead more mortgage-holding Aussies to consider this course of action of the next 12 months, he suggested.

Describing it as a "smart" move by householders, Mr Dale advised taking a "common sense" approach to letting a room out to strangers.

"It looks as though we're at the start of a point of time where that free space is going to be scrutinised more closely than it would have been a year or two ago … easing the financial burden on the household," he told the news source.

The website noted that a poll of homeowners in Sydney, Perth and Melbourne are using rent from lodgers as a means of easing mortgage repayments and living costs.

Mr Dale has also commented on figures released by the HIA today, which show that the number of sales of new homes between builders and developers dropped by five per cent in May.

Responding to data showing that sales of new homes in New South Wales and Victoria slipped by the largest amounts, he said that mortgage repayments and the rising cost of living is dampening activity in the sector.

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]]> http://www.money-au.com.au/news//Government-advised-to-control-credit_18662507.php 2008-06-30 19:15:00 http://www.money-au.com.au/news//Government-advised-to-control-credit_18662507.php
The recommendations, made by the ABA in the banking code review, said that the code should include legal provisions that require a credit provider to carry out an assessment before entering into a credit contract.

In the review, the ABA and the Mortgage & Finance Association both proposed a Uniform Consumer Credit Code to protect the consumer.

The principal solicitor at the Consumer Law Centre of the ACT, David Tennant, said: "The way things work at the moment a bank could give a customer an extension to their credit limit based on historical information on that customer.

"It could be out of date but there is no obligation to make a current assessment. The Code should include a positive obligation to ask the customer some questions at the time credit is advanced."

The banking code was introduced in 1996 and is reviewed every three years. On this occasion, the ABA has made 44 recommendations in an effort to tighten-up various areas of the financial sector.

These cover a variety of things including credit assessment, hardship, debt collection, guarantees, reverse mortgages, fees and charges, direct debits, electronic banking, opening of accounts and chargebacks.

Credit card usage has doubled in Australia over the past ten years and although the market cooled slightly in 2007, the country's collective credit card debt surpassed $40 billion last year.

Compare and apply for Australia's best credit card offers]]> http://www.money-au.com.au/news//More-homes-needed-says-HIA_18662492.php 2008-06-30 19:15:00 http://www.money-au.com.au/news//More-homes-needed-says-HIA_18662492.php
The HIA identified that extra housing is needed to meet the growing demand for owner occupied, rental, community and social housing as a result of very strong immigration and fewer people per residence.

Research conducted by the HIA revealed that 190,000 homes would need to be built during this year and in 2009. Based on projected growth expectations, it appears that one million would need to be completed over the course of the next five years.

The HIA's New South Wales state executive director Graham Wolfe said that migration was placing pressure on the demand for housing on both a state and national level.

He said: "A high proportion of migrants are skilled but very few are coming to the construction sector.

"Without a substantial increase in production, rental costs will continue to spiral, leading to an increasing number of families leaving the state to find affordable accommodation."

Further research into the housing sector revealed today that the number of buyers of residential property had fallen to its slowest pace since the 1991 recession - mainly as a result of 12-year high interest rates.

Those who own homes are not faring much better; it was revealed yesterday that one in ten Australian households is suffering from mortgage stress - with the figure predicted to reach one million within three months.

Last year, the population of Australia grew by 1.6 per cent (332,000).

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]]> http://www.money-au.com.au/news//Lifestyle-and-cost-of-living-part-of-Australias-broad-appeal_18660156.php 2008-06-27 19:10:00 http://www.money-au.com.au/news//Lifestyle-and-cost-of-living-part-of-Australias-broad-appeal_18660156.php
According to property magazine Shelter Offshore, expats from Britain, in particular, are attracted to Australia because of the relaxed way of life, cheaper living costs and more informal working environment that the country enjoys.

Rhiannon Davies, director of Shelter Offshore, said that foreign nationals are attracted, above all, by Australia's positive energy and added that this was in the interest of the country, as it attempts to attract skilled workers from Britain and Europe to relocate down under.

"Over the past five years there has been a 300 per cent increase in the number of Brits moving with 23,000 making the transition in 2006," she said.

"In terms of what is driving record numbers of Brits to Australia, it's about lifestyle, the cost of living, the weather and the broad opportunities that Australia seems to offer. The majority of Brits who are buying property in Australia are doing so to live in."

Ms Davis added that people coming from Britain have the added advantage that there is no language barrier, one of the main reasons that Australia is actively seeking highly skilled Brits.

According to RightmoveOverseas.co.uk, Perth, Sydney, Adelaide, Melbourne and Brisbane are the most popular destinations for expats from Britain, relocation (66 per cent), investment (15 per cent) and retirement (five per cent) the three main reasons for them to invest in Australian property.

Find and apply online for the best loan deals]]> http://www.money-au.com.au/news//Aussies-stay-on-rich-list_18660133.php 2008-06-27 19:05:00 http://www.money-au.com.au/news//Aussies-stay-on-rich-list_18660133.php
According to a survey carried out by Merrill Lynch and Capgemini, 11,000 more Australians become millionaires in US dollar terms in 2007. This equates to an annual increase of more than seven per cent.

The study indicated that the country has been able to retain its position as the tenth richest country in the world, below ninth-placed Switzerland.

As such, there are now more high net worth individuals (HNWI) in Australia than in Brazil and Spain.

Globally, the number of HNWIs increased by six per cent last year to stand at 10.1 million. This is a marginally smaller increase than in 2006, when the number of millionaires grew by 8.6 per cent.

The highest number of wealthy people was found in the US, which has more than three million.

Merrill Lynch and Capgemini noted that the credit crunch has had an impact on the number of individuals with assets worth more than US$1 million but this was countered by the economic growth of countries such as Russia and China.

The researchers have predicted that HNWIs will continue to grow in number in 2009, particularly in places such as the Latin America, Africa and the Middle East.

Commenting on the findings, Bertrand Lavayssiere, managing director for Capgemini, said: "Despite slowdowns in the growth of traditional stock exchanges and significant market volatility, several emerging market exchanges experienced robust gains in 2007, further accelerating global wealth."

Merrill Lynch is a leading capital markets, wealth management and advisory firm, while Capgemini is a top provider of consulting, technology and outsourcing services.

Compare and apply for Australia's best credit card offers]]> http://www.money-au.com.au/news//NAB-HBOS-bid-rumours-continue_18660114.php 2008-06-27 19:00:00 http://www.money-au.com.au/news//NAB-HBOS-bid-rumours-continue_18660114.php
According to Bloomberg, two people (who wished to remain anonymous) connected with National Australia Bank said that the lender met with advisory firms earlier this month to discuss a bid for HBOS.

They suggested that National Australia is mostly interested in HBOS' Bank of Western Australia but has yet to make an offer for the Perth unit, while the UK-based lender has so far not solicited any bids.

Analysts have said that HBOS' Perth unit could be worth $7.3 billion (£3.7 billion), the news agency noted.

Commenting on the rumours, HBOS chief executive Andy Hornby said: "There is speculation all the time about HBOS. I am not going to comment on our Australian business. It is a great business and it is performing well."

However, when questioned by Bloomberg about the speculation, a spokesperson for National Australia refused to give any comment.

The news agency pointed out that should National Australia put in a successful bid for HBSO, it would be "tapping into growth in Western Australia" as over the last three years there has been a mining boom in the region which has served to bolster the local economy.

Earlier this month, National Australia Bank launched a small loans pilot in connection with Mobile Finance Pty in a bid to bring fairer lending to the fringe credit market.

Compare and apply for Australia's best credit card offers]]> http://www.money-au.com.au/news//Landlords-bond-insurance-nightmare_18658323.php 2008-06-26 19:35:00 http://www.money-au.com.au/news//Landlords-bond-insurance-nightmare_18658323.php
"Rogue tenants" are missing rent payments and causing damage worth more than the standard bond rate of four weeks' rent, leaving property owners with the bill, according to Terri Scheer Insurance Brokers.

Carolyn Majda, general manager of the brokerage firm, said bonds were not enough to cover insurance shortfalls in 59 per cent of cases where property owners had been left in debt due to tenants.

Ms Majda gave News.au.com examples of occupiers causing damages to rental properties by bricking up interior doors and having chickens living in kitchens.

However, she highlighted that "even the most fastidious tenant" may cause financial problems for landlords, through causing accidental damage or money difficulties themselves.

"[Tenants may] suffer undue hardship due to loss of job or other circumstances that leave them unable to pay the rent." she said.

Bond release forms must be signed by both the owner and tenant to return the bond at the end of a tenancy, but if either party disputes the terms they have to take further action, often by involving the state's consumer affairs department.

Cleaning costs and unpaid rent are often causes for bond disputes, said News.au.com.

According to New South Wales state law, there is no maximum bond for a furnished property costing over $250 per week. For unfurnished properties the maximum is four weeks' rent. However, charging a bond is not compulsory and both parties must come to written agreement.

The office of fair trading may get involved if a dispute is raised in NSW and it depends on the landlord to acquire proof for a claim.

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]]> http://www.money-au.com.au/news//Court-could-beckon-for-eBay-case_18656232.php 2008-06-25 20:40:00 http://www.money-au.com.au/news//Court-could-beckon-for-eBay-case_18656232.php
The Sydney Morning Herald states the site introduced a new policy this week that means users can only pay for their goods using the PayPal service, which eBay owns.

The move comes despite a warning from the Australian Competition and Consumer Commission (ACCC) that the policy denies buyers a choice and weakens competition in the online payments sector.

However, eBay has apparently signalled its intent to press ahead with the policy, sending an email to its Australian users informing them of the change and warning that their listing will be removed if it does not conform, the newspaper adds.

An ACCC spokesman would not comment directly on eBay's move, but he told the publication that the website and other "interested parties" would have until July 3rd to submit their comments on online payments competition before the commission issues its final ruling.

However, a competition lawyer said eBay's approach could leave the ACCC with little option but to square off with the auction site in court.

"If the commission's final decision doesn't change because eBay has not been able to put on further evidence to change their mind and, if eBay continues with the conduct, then it is very difficult for the commission not to go after them in court proceedings to stop the conduct," he said.

PayPal allows users to accept credit card payments and money transfers without opening their own merchant credit card account.

Founded in 1995, eBay has grown to become the world's largest online marketplace, with users from 27 different countries selling goods on the site.

All the best credit cards reviewed, rated and compared.]]> http://www.money-au.com.au/news//Contractors-banning-back-seat-builders_18656229.php 2008-06-25 20:36:00 http://www.money-au.com.au/news//Contractors-banning-back-seat-builders_18656229.php
News.com.au says many contractors have taken the "hardline approach" because of a rise in homebuyers turning up on site and issuing instructions to tradesmen and subcontractors without their knowledge or permission.

The Housing Industry Association (HIA) told the website it is a serious issue as such actions could result in delays to the project and can ultimately lead to "chaos" on site.

Construction manager Barry Milne of Henley told the site that any alterations or variations in building plans have to be submitted in writing and approved by the builder, so the buyer can be properly charged and subcontractors can be paid for carrying out the work.

Robert Harding, the HIA's acting executive director, said more of his organisation's members have reported experiencing the hands-on approach from buyers, with some apparently under the impression that securing a home loan grants them a direct role in the construction process.

However, Mr Harding said technically speaking, builders have possession of a site until the property is completed and formally handed over. They are therefore entitled to halt work if anyone is on with without permission.

"Most builders are happy for the owner to engage in the process, but not just to turn up unannounced and wander over the site," he commented.

Official figures from the Australian Bureau of Statistics, cited by Bloomberg, show the number of home loans approved for new houses declined in April by three per cent.

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]]> http://www.money-au.com.au/news//Top-tax-tips_18656226.php 2008-06-25 20:33:00 http://www.money-au.com.au/news//Top-tax-tips_18656226.php
As a result, some consumers could be missing out on tax refunds they are entitled to, news.com.au says.

However, that could change thanks to the Taxation Institute of Australia (TIA), which has issued some guidelines on what can be claimed for.

First and foremost, the TIA says consumers must be able to demonstrate how they have calculated their tax claims and - if the amount is more than $300 - they need to back up their sums with paperwork.

This could be receipts, either the originals or copies, bank account or credit card statements and BPAY reference numbers supported by bank statements.

Furthermore, after lodging their return, all of the relevant paperwork must be retained for five years from the date of its submission, the site says.

The TIA has also issued advice to workers in particular professions as to what constitutes a legitimate work-related tax claim.

Bank tellers, for example, can claim for the purchase and cleaning of compulsory uniforms, travel between branches or clients, membership fees for professional and union organisations, and the purchase and maintenance of work-related equipment such as calculators and personal organisers.

In the construction industry, the TIA said builders their employees are entitled to claim items such as travel between sites, protective clothing such as goggles and helmets, and insurance cover for tools and equipment.

Trades people such as mechanics, electricians, carpenters and plumbers can also claim for many of these items, as well as professional body or union fees.

People working in IT can submit tax claims for courses and seminars, home office expenses, equipment repairs, income protection insurance, internet access where necessary and computers or software valued at less than $300.

The TIA is a trade body with more than 10,000 members working in Australia's tax profession.

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]]> http://www.money-au.com.au/news//Budgeting-for-baby_18653582.php 2008-06-24 18:42:00 http://www.money-au.com.au/news//Budgeting-for-baby_18653582.php
For many families, the birth of a child means changes galore - including shifts household finances, the Courier Mail says. There are a variety of new expenses to take care of and many parents face these rising outgoings while at the same time losing one of their usual incomes.

As a result, planning ahead is essential in order to ensure everything is covered without overstretching the bank account.

Karen Bruce, a director with About Finance, which specialises in finances for women, said handling the increased spending - and the drop in income - is something that has to be "well thought out and planned".

"Planning a post-baby budget needs to include all the extra costs per month, including nappies, formula, baby wipes, baby food, bottles, bibs and unknown costs like chemist trips and doctor visits," she said.

Darren James, a financial planner with AMP, said there are a number of ways parents-to-be can map out how they will finance their bundle of joy.

For instances, families should make their savings "work for them" by comparing savings accounts to find the best deal in terms of interest rates and access to funds.

They must also control credit card spending and ensure they pay off the balance each month in order to avoid paying interest and higher fees.

Ann-Marie Chamberlain of the National Australia Bank said home loans also need careful consideration and, if at all possible, parents-to-be should try to get ahead on their repayments before the birth, as this could give them greater flexibility when their income drops later on.

According to the Australian Bureau of Statistics, there were 265,900 registered newborns in 2006, up 2.4 per cent on the previous year.

Australia's best savings accounts compared and reviewed.
]]> http://www.money-au.com.au/news//Budgeting-for-baby_18653582.php 2008-06-24 18:42:00 http://www.money-au.com.au/news//Budgeting-for-baby_18653582.php
For many families, the birth of a child means changes galore - including shifts household finances, the Courier Mail says. There are a variety of new expenses to take care of and many parents face these rising outgoings while at the same time losing one of their usual incomes.

As a result, planning ahead is essential in order to ensure everything is covered without overstretching the bank account.

Karen Bruce, a director with About Finance, which specialises in finances for women, said handling the increased spending - and the drop in income - is something that has to be "well thought out and planned".

"Planning a post-baby budget needs to include all the extra costs per month, including nappies, formula, baby wipes, baby food, bottles, bibs and unknown costs like chemist trips and doctor visits," she said.

Darren James, a financial planner with AMP, said there are a number of ways parents-to-be can map out how they will finance their bundle of joy.

For instances, families should make their savings "work for them" by comparing savings accounts to find the best deal in terms of interest rates and access to funds.

They must also control credit card spending and ensure they pay off the balance each month in order to avoid paying interest and higher fees.

Ann-Marie Chamberlain of the National Australia Bank said home loans also need careful consideration and, if at all possible, parents-to-be should try to get ahead on their repayments before the birth, as this could give them greater flexibility when their income drops later on.

According to the Australian Bureau of Statistics, there were 265,900 registered newborns in 2006, up 2.4 per cent on the previous year.

Australia's best savings accounts compared and reviewed.
]]> http://www.money-au.com.au/news//Australians-better-off-despite-economic-conditions_18653623.php 2008-06-24 18:42:00 http://www.money-au.com.au/news//Australians-better-off-despite-economic-conditions_18653623.php
According to the study by broker and fund management firm Commonwealth Securities (CommSec), some consumers are suffering from the higher prices but it is "by no means the rule" that the majority of Australians are finding it hard to make ends meet, news.com.au reports.

"Living costs have certainly been rising, but so have wages," the company's chief economist Craig James told the site.

He added that consumers are also set to benefit from an upcoming round of tax cuts, which represent the "sixth consecutive" reduction in tax thresholds or rates.

Figures from the study show Australians who took out an average home loan in July 2002 would now be earning $1,014 a month more.

Interest rates on their loan, meanwhile, would have increased from 6.55 per cent to 9.45 per cent - raising their repayments by $299.16 a month.

Over the same period, the typical cost of the goods and services they consume rose $287.20 - leaving them, in theory, $427.64 a month ahead, Mr James said.

However, people in other scenarios may not be faring so well. Those who took out a home loan more recently were more likely to have experienced a decline in their net income, the site said, as cost increases have outweighed their wage rises and tax cuts.

Nevertheless, Mr James said higher pay and lower taxes have on the whole put more money in people's pockets as time has passed.

As a result, he predicted, consumer spending will recover once Australians filter through scare stories about the rising cost of living and "realise they can indeed continue to spend".

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]]> http://www.money-au.com.au/news//Australian-firm-helping-Visa-develop-next-generation-of-credit-cards_18651515.php 2008-06-23 18:44:00 http://www.money-au.com.au/news//Australian-firm-helping-Visa-develop-next-generation-of-credit-cards_18651515.php Credit card provider Visa is reportedly working in partnership with an Australian technology firm to develop a new line of credit cards armed with microprocessors that will give each transaction a unique identification number.

Heise Online reports that the Visa cards are being designed by Sydney-based payment authentication specialist Emue Technologies.

In addition to a microprocessor for generating each transaction number, or Tan, the cards will also have a display and onboard keypad, the site says.

When a consumer uses the card for a payment, they enter their personal identification number - or Pin - and receive a Tan up to eight-digits in length. This is then used to confirm individual payments.

The site says the technology will be "particularly useful" for credit card holders making "card not present" transactions, such as online purchases or telephone orders.

It will also be used to tackle fraud by confirming the identity of telephone banking staff. When someone purporting to be from a bank telephones a consumer, they will have to give a code that the customer enters on the card in order to check they are genuine.

Visa said the card, which according to Emue's promotional material will be approximately the same size as a standard credit card, represents a "milestone in fraud prevention".

The Sydney Morning Herald recently reported that although Australia has low overall levels of payment scams, around 70 per cent of new credit card fraud is linked to "card not present" transactions.

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