News Archive for April 2020

Are you feeling the squeeze from continually high expenses? A term deposit could be your financial fortress, offering a way to lock your cash up with a high interest rate while it lasts.

While international money transfers (IMTs) to Australia aren't directly taxed, the Australian Taxation Office (ATO) and the Australian Transaction Reports and Analysis Centre (AUSTRAC) keep a close eye on these transactions to ensure any undeclared income is reported.

We all need a little Easter motivation to get in shape with the excess consumption of chocolate and lazy days spent with family. But, why not use this time wisely to slap your finances into shape?

With Australians having experienced unpredictable weather in recent times, the future of the planet has never been a more relevant topic.

A mortgage is likely the biggest financial commitment the average Australian can expect to make. But personal circumstances are prone to change, and sometimes it can get difficult to keep up with things like monthly repayments. In these situations, many lenders might allow you to take a repayment holiday. Below, we take a look at what that means.

Home borrowers looking to lower the cost of their mortgage are increasingly switching to smaller, low-cost lenders right now, and one rival lender has unveiled a refinance home loan that is sure to send a stampede of savvy switchers their way.

In light of recent bank closures in the United States, it’s no surprise that many Australians are worried if their small bank is next.

Even if you’re scrupulous with financial paperwork, you may unknowingly have lost bundles of cash over the years. And we’re not talking about coins in lounge cushions.

In 2020, new technology-driven products and services are changing the way that we do everything, from the way we order food to the way we watch a movie. And the banking world is no exception.

It’s the first of April! But things are feeling a little bit sombre this month. With the current coronavirus pandemic, wherever you’re from in the world, there’s a good chance that you’re currently at home in self-isolation. How are you holding up, folks?

Australia has the potential to source 90% of its electricity needs from renewable energy by 2040, without having to increase wholesale prices.

With new data from the Australian Bureau of Statistics (ABS) showing a 3% increase in the number of Australians that are currently out of a job in April 2020 compared to March 2020, many Aussies are doing it tough in the current Coronavirus climate.

Commonwealth Bank announced it hit a major milestone yesterday after 1,000 of its customers purchased a property using the First Home Loan Deposit Scheme (FHLDS), which launched at the beginning of this year.

Old money-conscious dogs can indeed learn new tricks, but instilling strong savings habits in kids could make financial planning easier in the long-run. So if you’ve got a brood of your own, start teaching them how to earn their keep and grow their treasure trove before they enter the workforce.

Does the idea of a repayment freeze give you chills when it comes to thinking about your credit score? This recent announcement might just help.

The outbreak of COVID-19 has necessitated a different approach to the way Australians pay for their goods and services and we’ve already seen this play out through an increased use in contactless payment options and a move to online shopping.

Better exchange rates are on the cards for Australians making international money transfers as the Aussie Dollar regains strength amid coronavirus.

As the COVID-19 lockdown continues around the country, Aussie households have had to adjust to a new way of living.

A month on from the Reserve Bank of Australia’s (RBA) March Emergency rate cut and the dust has well and truly settled, revealing a substantial shift in the fixed rate home loans market.

If you’ve suddenly found yourself struggling to make your mortgage repayments due to the current crisis, there are a few things you can do to ease some of that stress.

Looking to get your hands on a new set of wheels so you can hit the road post ‘iso’? Well, say hello to these lenders who have slashed car loan rates.

While the last few months have been extremely trying for many people around the world, at the very least we can now say that we have a newfound respect for healthcare workers and those on the frontline keeping us safe.

Small businesses impacted by the coronavirus may soon find it even easier to secure extra finance, following the government’s latest decision to involve non-bank lenders in its SME Loan Guarantee Scheme.

Having credit card debt isn’t fun. And in the current financial climate, debt may be looking even more unpleasant than it did before.

Let’s be honest, spending the majority of your time indoors does have some perks. A lot of us may be using the time to pick up a new hobby, while others are giving their Netflix account a serious workout.

It’s been a long time coming, but banking giant Westpac today announced it will offer Apple Pay.

With Australia heading into week seven of social distancing and more than one million out of work as a result of COVID-19*, now more than ever is the time to know where and how to access free financial counselling services.

The Australian Competition and Consumer Commission (ACCC) has this afternoon released an interim report into home loan pricing by Australia’s big four banks.

On the 20 September 2019, 80,000 Aussies in Sydney gathered in The Domain for one purpose: climate change.

New South Wales households who have suffered from a loss of income due to COVID-19 may be eligible for a new energy rebate of up to $1,600.

With around one million Australians working or living overseas at any one time, according to the government’s Smart Traveller site, it’s no secret that staying abroad for the long term is an attractive option for many people.

With many vehicles confined to garages as the need to drive diminishes during COVID-19, your car insurance may also be lying idle. Mozo Director Kristy Lamont says car insurers are undoubtedly seeing a decline in claims and should pass on the savings to customers.

With two Reserve Bank cuts, a host of COVID-19 assistance packages and a plethora of changes to rates and products, it’s safe to say that the past month has been a bit of a whirlwind in the Australian banking sphere.

Since the COVID-19 lockdown restrictions have been in effect, we’ve found there are two distinct types of savers in self-isolation: those spending less and saving more, and those who are now on a first-name basis with the postman because they’re shopping up a storm online.

Despite the opportunity for more long term savings, research from Mozo has revealed that Aussies are three times more likely to haggle for a lower price on white goods than they are on ongoing household expenses, such as home loans and energy deals.

Fashion Revolution Week might be drawing to a close, but here at Mozo we think there are plenty of ways we can both embrace sustainable clothing all year round and spend less on our wardrobes.

Important disclaimer: The article is factual information only and contains no advice or recommendations about what you should do with your own superannuation.

All in this week’s banking recap.

The fallout from coronavirus has placed many Aussies under financial strain, with new Mozo research revealing 3 in 4 households are ill-prepared to handle unexpected expenses.

The Australian Energy Regulator (AER) and the Essential Services Commission of Victoria (ESCV) have banded together to safeguard energy customers facing financial hardship during the COVID-19 outbreak.

As businesses are forced to shut up shop alongside a stream of predictions about rising unemployment, you may feel less frazzled about your finances if you have an emergency savings fund.

For Aussies with an existing side hustle, self-isolation may just have a silver lining. With more spare time on our hands than ever, this could be a good opportunity to ramp things up a notch for your YouTube channel or Etsy jewellery store.

New figures have revealed a spike in Australians signing up for will-writing services online during the coronavirus crisis.

If you’re looking to save dosh while social distancing, you may be heading online to make discounted or second-hand purchases when necessary. To ensure the safety of online marketplace users, sources like Gumtree and Amazon are altering their delivery practices and fees, with eBay offering struggling sellers fee deferrals and fee-free periods for new businesses joining the site.

MyState Bank has reported close to a 30% decrease in cash withdrawals this month alone, while BPAY payments and transactions made via the New Payments Platform have gone up by a significant 20%.

While the news has been flooded with how the government and banks are helping small businesses and mortgage holders during COVID-19, personal loan lenders across the country are offering similar support to their customers.

Fintech platform NIUM has joined forces with global payments tech firm Geoswift to allow customers to send money to China in real time.

It's clear that the coronavirus pandemic has put extreme pressure on the economy, but recent comments by Reserve Bank Governor Philip Lowe put the extent of the current crisis into clear focus.“Over the first half of 2020, we are likely to experience the biggest contraction in national output and national income that we’ve witnessed since the 1930s,” he said in a speech on Tuesday.The RBA is forecasting a drop in national output of 10% in the coming months, with most of the decline occurring in the June quarter. The number of out-of-work Australians will also see a steep increase.“The unemployment rate is likely to be around 10% by June, although I am hopeful that it might be lower than this if businesses are able to retain their employees on lower hours,” Lowe said.While the numerous stimulus packages introduced by the Government will help many weather the downturn, a dip in household income is to be expected. Consumer spending is also unlikely to recover in the near term, given the restrictions on movement and social activity currently being enforced. RELATED: Who is eligible for the government’s Coronavirus support payments? As for inflation, the RBA expects it to remain positive in underlying terms, but is bracing for a steep drop in the June quarter.“The large fall in oil prices, combined with the introduction of free childcare and the deferral or reduction in some price increases mean that it is quite likely that year-ended headline inflation will turn negative in June,” Lowe said.“If so, this would be the first time since the early 1960s that the price level has fallen over a full year.”Lowe admitted that as more economic data comes in over the coming months it will present a “very sobering picture of the state of our economy.” At the same time, he stressed that the current crisis is a temporary one and that the country’s institutions are well-placed to handle it.“As Australians digest this economic news, I would ask that we keep in mind that this period will pass, and that a bridge has been built to get us to the other side. With the help of that bridge, we will recover and the economy will grow strongly again,” he said.

You might be doing your darndest to be an ethical consumer: buying green and local, reusing and recycling, and supporting bigger retailers that share your worldview. But if you’re not properly investigating your savings accounts, the source of your energy supply, or what your superannuation is invested in, then you could be counteracting all those positive actions with some big missteps.

Kudos go to Qudos Bank this morning, as it increases three to twelve month term deposit rates amidst the COVID-19 crisis.

In an effort to give their household an energy upgrade, thousands of people in South Australia have signed up to the South Australian Government’s Home Battery Scheme (HBS) in the last five weeks.

COVID-19 has hit Australian businesses hard and amongst its victims is major airline Virgin Australia.

It wasn’t that long ago that property prices were edging upwards, but the stop in commercial activity and widespread job loss caused by the coronavirus pandemic has since seen confidence in the property market take a nosedive.

Over a third of Australians are putting more money into savings than they did before the Coronavirus pandemic, despite having had their incomes reduced.

From remembering to switch the lights off to forgetting to unplug their laptops from powerpoints, if there’s one thing most parents struggle with, it’s teaching kids about better energy habits.

In comparison to home loans, personal loans and deposit accounts, credit cards don’t often get much attention post RBA cuts, but this month things have changed.

Small business suppliers have suffered further blows to their cash flow amid coronavirus, as a growing number of major brands get away with postponing or even cancelling their payments.

In the uncertain economic environment caused by COVID-19, you may be avoiding any big financial moves like buying a house or looking for a new rental. The inability to personally inspect properties or attend auctions in most circumstances is also slowing down real estate action, even as the industry finds innovative ways to continue operating.

It's official. A new wave of online business lenders has hit Australian shores, bringing with them a range of low cost, flexible funding options for Aussie businesses big and small.

Over the past few weeks, we’ve unfortunately seen countless Aussies lose their jobs or have their pay cut due to the new restrictions in place to help slow down the spread of COVID-19. Inevitably, many people are tightening their budgets and setting aside money to create a safety buffer.

Due to the COVID-19 outbreak many Aussies have had to say goodbye to public transport and instead look to purchasing second hand cars to get around.

If your wheels have been gathering dust in the garage due to COVID-19, then you might be interested to hear there could be a silver lining to your current lack of adventure.

While property transactions have seen a considerable downturn during the Coronavirus lockdown, Australians are keeping a keen eye on the residential market, according to REA’s executive manager of economic research Cameron Kusher.

Last Saturday, as the country prepared to devour their weight in chocolate eggs, Australia’s energy grid was getting a serious workout.

All in this week’s banking recap.

ING will be tightening its lending criteria for Aussies with high risk jobs looking to take out a home loan.

Popped into your local supermarket or cafe lately? You may have noticed that customers are being asked to keep their cash in their wallets in favour of contactless payments options for hygienic reasons.

Mozo’s latest research has revealed that over half of Aussie households wouldn’t survive if they were suddenly out of work.

One month on from the Reserve Bank’s emergency cash rate cut in mid-March and something a little unexpected is happening in the world of savings. Amongst all the interest rate decreases, it would seem that one-year term deposit rates are actually increasing.

There’s been a fair bit of news to digest of late, so we don’t blame you if you missed a recent change in the life insurance industry.

86 400 has become the latest neobank to throw its savings account onto the chopping block, following the Reserve Bank’s emergency rate cut last month.

If you’re one of the many Australians trying to tighten expenses right now, you’re probably already cutting down on unnecessary costs and looking for easy ways to save.

To help those looking to take advantage of the Government’s early super release scheme, ASIC has introduced measures to ensure Australians have access to affordable and timely financial advice.Since the Government announced the scheme, tax agents, accountants and financial advisers have seen an uptick in demand for their services. The new measures will relax some of the restrictions they usually face.Advice providers will no longer be required to provide a statement of advice (SOA) after discussing the early release of super with their clients.The move will also allow registered tax agents to advise existing clients about the scheme without needing to hold an Australian Financial Services (AFS) licence.ASIC will also issue a temporary ‘no-action’ position to superannuation trustees. That means any personal advice a super fund provides about the scheme will be classified as ‘intra-fund advice’ (general advice that is provided at no extra charge to the member), and will not result in action taken by ASIC if conduct is breached.RELATED: What your state is doing to help Aussies cope during the COVID-19 outbreakASIC has stressed that these measures are temporary and subject to strict conditions. For one, clients must be provided with a record of advice (ROA) — a document similar to an SOA which confirms advice has been provided.It must also be established that the client is entitled to the early release of their super, and that they approached the advice provider and not vice versa.Finally, any advice fee is to be capped at $300.In a joint statement, five major Australian professional bodies - CPA Australia, Chartered Accountants Australia and New Zealand, SMSF Association, Financial Planning Association, and Institute of Public Accountants - voiced their support for the move.“There has been an increasing demand for advice around early access to super since the Government announced Australians could access up to two parcels of $10,000 in superannuation tax-free as part of their second stimulus package,” they said."This move has removed significant red tape and ensured a simple, streamlined process is in place so those facing financial hardship during this time get the right advice.”For more information about the kinds of support available to individuals and households, along with other tips to keep your finances in good health amid the current crisis, browse our coronavirus financial guide.

Dubbing the conditions induced by the COVID-19 pandemic ‘The Great Lockdown’, the International Monetary Fund (IMF) has predicted a sharp decline in global economic growth for 2020, with Australia’s economy expected to contract by 6.7% or almost $130 billion.

Stuck at home? You’re not alone, because millions of other Australians and people around the world are doing their part to lessen the effects of COVID-19 by sticking to home as much as possible.

Due to the current Coronavirus pandemic, the Australian government has enforced strict lockdown restrictions in attempts to slow down the spread of COVID-19, instructing Australians to self-isolate at home for the next foreseeable future and only leave the house for essential travel.

The Treasury has revealed it expects unemployment to jump up from 5.1% to 10% in the June quarter - the highest Australia has seen since 1994 - as the economy teeters on the brink of a recession.

The New South Wales State Government has announced a $440 million rental relief stimulus package for landlords and tenants, splitting support evenly between residential and commercial leases.

We knew it already, but now it’s official. The significant impact COVID-19 is having on Australian businesses has been brought home in new data released by the Australian Bureau of Statistics (ABS).

Aussies love a long weekend. But this Easter things are looking a little different than the usual four-day getaways, easter-egg hunts and long lunches with the extended family.

Your Easter feast is going to be a little different this year. With strict COVID-19 social distancing measures now in place, you’ll undoubtedly have fewer partygoers at the table. You might also have to make do with a shorter grocery list or rely on home delivery if you’re quarantining.

From Zoom conference meetings to doing morning workouts in the garage, many Aussies have had to make adjustments to their regular routines over the last few weeks, including the way we pay.

The list of businesses and sectors affected by the COVID-19 health crisis appears to be never ending and now it seems that new banks will also be dealt a blow by the ongoing global pandemic.

All in this week’s banking recap.

In March we saw the Reserve Bank take the extraordinary step of cutting the official cash rate twice, bringing it a record low 0.25%.

It’s no secret this Easter will be unlike any other. With coronavirus distancing measures keeping us indoors, we’ll have to bid farewell to the classic way of spending the long weekend, whether that’s an epic house party or a road trip with family.

According to the 2020 Clean Energy Australia Report, 2019 was another fantastic year for renewable energy.

Over March, a bunch of lenders slashed personal loan rates across secured, unsecured and car loans. And it looks like April is also off to a cracker start.

Up has become the latest neobank to take the axe to its savings offer following the Reserve Bank's most recent cut to official interest rates.

The COVID-19 outbreak has taken the world by storm and has left many Aussies unemployed with little to no income, prompting them to cut back on spending while looking for alternative ways to pay, like their credit cards.

In its April meeting this afternoon, the Reserve Bank of Australia has opted to keep interest rates unchanged at the historic low of 0.25%.

If you’ve got little tykes waiting for the Easter bunny to arrive, things will undoubtedly be different over the break this year. Once upon a time you and the kids joined Easter parties and egg hunts, but now you’ll be spending most of the school holidays at home to help stem the spread of Coronavirus.

Up to your ears in debt? Or maybe you’ve just got one lingering debt that’s been following you around like a bad smell? No matter the size of it, at the end of the day, debt is debt and it needs to be paid off otherwise it’ll haunt you for years to come.

In a disappointing recent development, scammers appear to be taking advantage of the anxiety and fear surrounding the COVID-19 outbreak by targeting vulnerable Australians.

Households across the country have become busier than ever, with many Aussies having to convert their spare spaces into home offices and schools.

Given that we live in such an interconnected world, it will probably come as no surprise to learn that global and even localised events can have a substantial impact on a whole host of financial markets including shares and currency.

After noting a significant number of scam reports related to COVID-19, the Australian Competition and Consumer Commission (ACCC) has now issued a warning specifically related to fraudulent claims around early superannuation access.

UBank has kept hold of its crown as one of the most competitive home loan lenders in Australia after debuting a gob-smackingly low new variable rate home loan.

One of Australia’s largest insurance groups, QBE, has placed a temporary halt on offering Lenders Mortgage Insurance (LMI) to specific groups of new mortgage borrowers.

Three of Australia’s largest general insurers have introduced a number of measures to support Australia’s small businesses, most notably by allowing premium payments to be deferred for up to six months.

All in this week’s banking recap.

To provide financial relief for small businesses and residents across the country, Energy Networks Australia has unveiled its new energy and gas network relief package.

In an effort to help stop the spread of COVID-19, the Australian Payments Network announced today that it will be temporarily increasing the contactless card limit from $100 to $200. This means that as of this month, Australians will not be required to enter a PIN number for transactions under $200.

UBank has kept hold of its crown as one of the most competitive home loan lenders in Australia, beating out 85 lenders to win the title of Best Bank Lender of the Year in the Mozo Experts Choice Home Loan Awards 2020.

Since 1874, Bank of Queensland (BOQ) has been getting to know their customers’ needs across numerous easy-to-navigate banking products. So it’s no surprise the regional bank now sits among the best in the country.

In the last few days, the nation has been introduced to harsher restrictions to stop the spread of COVID-19 - one of which is to stop Aussies from visiting other households unless it’s to provide care.

In what might be the best news for the nation's savers this year, banks and other financial institutions are actually increasing rates on select savings and term deposit accounts. The emerging trend is a rare ray of light for savers, and a strong sign that competition for deposit customers is heating up.

The Federal Government has extended the loan approval period for first home buyers under the First Home Loan Deposit Scheme as coronavirus shutdowns bring new challenges to finding a property.

One of the many Aussies that own an Amex credit card for the travel benefits? Here’s what you need to know about the company’s latest response to COVID-19.

For the first time ever, fixed home loan rates now start with a 1! That’s right, the Bank Australia Clean Energy Home Loan now sits at a rock bottom 1.79% p.a. (3.10% p.a. comparison rate*) for a three year fixed rate home loan. This comes not long after the Reserve Bank’s emergency cash rate cut in mid-March.

As the coronavirus outbreak leaves many Australian households in a tight financial spot, Commonwealth Bank has stepped in to provide another round of support to its home loan and credit card customers.

According to St. George Bank’s Family Finances survey nearly a quarter (24%) of Australians don’t trust their partner when it comes to managing money and over a quarter (27%) said that it depends on the circumstances.

March has seen some of Australia’s neobanks toppled from their throne after 86 400, Volt Bank and Up all made moves to pass on one or both of the RBA cuts to savers.

It’s understandable if you’re becoming increasingly cautious about where to store your hard-earned nest egg in 2020. The March RBA rate cuts and uncertain economic environment hasn’t been kind to savers, even with some banks recently giving term deposits a boost.

Last week, popular online bank, ING, slashed its Fixed Rate (Orange Advantage) home loan 2 year rate to an impressive 2.09% (3.77% comparison rate*).

The coronavirus outbreak has taken a devastating toll on the Australian economy, and according to recently released minutes the Reserve Bank believes the current period of disruption could extend to the latter half of the year.While charting the outcome of the crisis will be difficult, the Board expects Australia to experience “a very material contraction in economic activity,” which will last through the March and June quarters and possibly beyond that.“The size of the fall in economic activity would depend on the extent of the social distancing requirements, and potential lockdowns, put in place to contain the virus,” the minutes say.The Board met ahead of schedule on March 18 amid fears the coronavirus outbreak could tip the country into a recession. It announced the following day it will be cutting official interest rates to 0.25%, commencing bond purchasing, and establishing a $90 billion facility to help banks access cheap loans.Since then, closures of non-essential businesses and restrictions on public and private gatherings have brought entire swaths of the economy to a standstill.To curb the fallout, the Federal Government has announced several rounds of stimulus packages, most recently the JobKeeper scheme — a $130 billion subsidy to businesses to help keep employees on the payroll.RELATED: How do I receive the government’s coronavirus support payments?The Board agreed that unemployment is set to surge in the coming months, though there is an expectation that some industries will fare better than others. “There were likely to be significant job losses over the months ahead, although the extent of this would depend on the capacity of businesses to retain employees during this period.”“At the same time, some industries were employing more workers, particularly those involved in the retail supply chain and delivering goods.”The Board also ruled out further monetary easing and made clear that it has “no appetite” for negative interest rates. The official cash rate will remain unchanged until progress is made towards full employment and an inflation target of 2-3%.The same goes for the Board’s bond purchasing program, though it flagged that it would sooner end that program than raise the cash rate.While the buying up of government bonds by a central bank sounds a lot like quantitative easing, the RBA has been reluctant to use the term. That’s because this particular program isn’t so much focused on the quantity of bonds purchased (as in the US, where the Fed recently committed to buying $700 billion worth), but with preserving low funding costs.It will do this by targeting the yield on three-year Australian Government bonds, hoping to bring it down from around 0.45%, where it had been hovering for several weeks, to 0.25%.“The specific proposal was to target the rate at the three-year mark, given its importance as a benchmark rate in financial markets and its role in funding across much of the Australian economy,” the minutes say.“Such a target would also be consistent with the expectation that the cash rate would remain at a very low level for several years.”

With Aussies having to tighten their wallets due to the outbreak of Coronavirus, nestling credit card debt and forking out interest repayments are among some of the last things any of us want to be doing.

This month, the Reserve Bank of Australia (RBA) made the extraordinary decision to cut it’s official cash rate twice - in response to the outbreak and spread of COVID-19.