News Archive for June 2020

With the continued rising cost of living, there are a lot of ways Aussies are trying to save their money.

Around Australia and across the globe, Coronavirus (COVID-19) has changed the way we work, socialise and how our country will be governed for the foreseeable future. The situation is constantly evolving, so Mozo is keeping track of the latest news about the virus and how it will affect individuals and businesses. Here are answers to the big coronavirus questions.

Given the rollercoaster of a financial year that small businesses have been through, getting your corporate tax return sorted in 2021 could be a trickier process than usual.

Looking for the top broadband options in 2021? Check out the best NBN plans in the 2021 Mozo Experts Choice NBN Awards.

As the younger generations get older, there’s no doubt that the future of credit cards is looking rocky.

A whopping 84% of small businesses that were eligible for JobKeeper said the wage subsidy kept them afloat during COVID-19, new research has found.

The coronavirus pandemic and ensuing restrictions have sent shockwaves throughout the economy, and while the property market has proven to be remarkably resilient so far, it hasn’t been completely spared.

If we asked you to put a number on how much electricity Australia has used since the Covid-19 lockdown began, what would you say?

The Australian Competition and Consumer Commission (ACCC) has warned online shoppers to look out for unexpected international transaction fees, when purchasing from major brands.

With tight travel restrictions in place and flight redemptions temporarily out of the picture, new Mozo research finds that 66% of Aussies believe rewards credit cards just aren’t worth the return anymore.

2020 is somehow already halfway gone, but that doesn’t mean all is lost for your financial outlook for the rest of the year. After all, July 1 marks the beginning of a new financial year and a fresh opportunity to kick start your goals.

No it’s not just you - things have been quiet on the neobank front over the past few months, with just a few rate tweaks and minor feature releases of note. Neobanks have also taken a hit to their media profiles as a result of COVID-19, says media monitor Streem, particularly well known outfits like 86 400 and Xinja.

As COVID-19 lockdowns begin to ease, many of our pre-COVID expenses are starting to resume, which could spell trouble for your savings. However, while your lockdown-saving style mightn’t be so realistic anymore, by ditching any major money-drainers you can limit your outgoing costs.

All in this week’s banking recap.

In March, Aussies across the country were advised to ditch cash as a method of payment to prevent the spread of COVID-19. And according to new research by Buy Now, Pay Later (BNPL) provider, Zip, the COVID-19 pandemic may have been the final nail in the coffin for cash.

After being crowned Australia’s best bank in the 2020 Mozo Experts Choice Awards, ING has given Aussies one more reason to get on board, reducing variable home loan rates by 0.19% this morning.

Zombies, werewolves, vampires - there’s a chance you might have enjoyed movies and stories involving these mythical creatures growing up. But what if we told you there is a type of vampire that’s very real and could be sucking not your blood, but your wallet dry.

Qantas customers around the country are breathing a sigh of relief after the airline announced it’ll refund cancelled flights.

In the months when Aussies retreated to their homes to stop the spread of Covid-19, something unexpected happened. A large number of people across the country picked up paint brushes, shovels and sewing kits, to do DIY jobs, grow food and mend clothes.

Following pressure from the Australian Competition and Consumer Commission’s Covid-19 Taskforce (ACCC), Qantas made the decision late last week to refund passengers whose flights had been cancelled due to travel restrictions.

The number of advertised rental properties in Australia’s two largest cities, Sydney and Melbourne, have ticked up once again according to new estimates from CoreLogic.

It’s no secret ‘tap and go’ fees take a chunk out of small business profit, but switching to a cheaper debit network could help to drastically slash this cost.

It’s almost tax time. As millions of Australians begin sorting out their financial records, the Australian Taxation Office (ATO) is advising people on how to dodge “speed bumps” when lodging their returns this year.

The next round of the First Home Loan Deposit Scheme will go live on 1 July. That means a further 10,000 places will be made available for Australians hoping to take their first steps up the property ladder.

If you’re ready to take your side hustle to the next level, you might be wondering if it’s worth taking out a business credit card or sticking with your personal credit card.

Australia's fifth largest mortgage lender, ING, has increased interest rates on a number of its sharpest fixed home loans today.

There’s no denying times are tough for small businesses, but innovation has helped a number of enterprises get ahead of the curve.

Most of us know that climate change will have some effect on the way we live in the future. But rather than being completely overwhelmed by the enormity of the climate crisis, Allianz and UTS’s new ‘Future of Living’ report looks to simplify the challenge. Its aim is to help us understand how people will live in the future and how home insurance will have to adapt.

All in this week’s banking recap.

With Australians said to be losing millions of dollars a year on their international money transfer (IMT) by not shopping around, changes are afoot to try and rectify the issue.

Today NAB announced the major milestone of 1,000 customers purchasing property through the First Home Loan Deposit Scheme (FHLDS).

Travel, environmental impacts and budgeting are among the top concerns for Australians moving beyond lockdown conditions, according to a new NAB report.

Rising unemployment and social distancing measures haven’t been all that friendly to the Aussie property market. But before the coronavirus pandemic sent shockwaves through the economy, housing prices were enjoying a meteoric rise.

Just when you thought rates couldn’t get any lower, online lender Reduce Home Loans looks to have taken variable home loan interest rates to a whole new level with its new Super Saver Variable mortgage.

American business magazine Forbes recently dropped its 2020 World’s Best Banks list, with a surprise Aussie company among the winners.

While economic output in Australia saw a significant contraction in March and April, minutes from the RBA’s June meeting suggest the current downturn could be “shallower than earlier expected.” Australia’s relative success in containing the virus and the Federal Government’s multiple stimulus measures have been instrumental in protecting the economy from collapse, the minutes said. “Households that were already receiving welfare payments had additional payments, and the JobKeeper program and increased JobSeeker payments had supported incomes for others. In some instances, households had received more income than usual.”But there are still plenty of hurdles ahead, with the RBA warning that reduced consumer demand and appetite for investment could prolong the downturn.Unemployment will also remain elevated for come time, though a consensus is emerging that the number of job losses won’t be as severe as initially expected.“The contraction in spending in late March and April had been accompanied by significant job losses, with total hours worked falling by 9 per cent in April. Timelier payroll data suggested that the pace of job losses had slowed towards the end of April,” the minutes read.“In some of the industries that had been most affected by the restrictions on activity, the number of jobs had stabilised or increased a little, suggesting that the total decline in hours worked may be less than had previously been feared.”However, members noted that an unusual number of Australians who lost their job in April did not actively search for new work, obscuring the overall picture of unemployment. What’s more, the share of workers who are still on their company’s payroll but working zero hours has also increased.  “While some of these workers were likely to have been supported through the JobKeeper program, others would have been stood down without pay and may have become unemployed since then,” the minutes read.

While international travel is still a no-go for Aussies, there’s no reason to give up on credit card rewards points.

Australian savers just can’t catch a break. Over the past few years, rates have fallen again and again to the point where the average ongoing savings account interest rate in the Mozo database sits at just 0.74% today.

If you’ve been on the hunt for the right place to purchase your solar panels from, you might have encountered a few company names you’ve never heard of before...until now.

A whopping 80% of Aussie small business owners have high hopes their enterprise will get through the worst of COVID-19, according to new research from American Express.

The number of home loan approvals slipped 4.8% in April to $18.6 billion, according to recent data from the Australian Bureau of Statistics (ABS), the largest month-on-month decline since May 2015

They’ve done it again! For a second year in a row, online bank ING has taken out the title of Australia’s Best Bank in the Mozo Experts Choice Australia’s Best Banking Awards for 2020.

Government support payments and bank relief packages have been vital for many Australians who’ve lost their jobs, had their income reduced, or had to juggle childcare alongside remote and essential work as a result of COVID-19. But these financial schemes mostly have expiry dates.

All in this week’s banking recap.

Mozo previously reported on a new energy scheme designed to help the grid cope and remain reliable during periods of high demand. It was called the ‘wholesale demand response’ and according to the Australian Energy Market Commission (AEMC), the scheme is now likely to start in October of next year.

Felt the financial pinch of COVID-19? Taking out a no interest or low interest loan may be an option for you.

From helping out elderly neighbours to donating to vulnerable Aussie households, as a nation we’ve worked together to help those in need during the COVID-19 pandemic.

Home ownership already seemed like a far-off dream for many young Australians. But since the coronavirus pandemic sent the economy into a tailspin, that dream has been pushed even further back. Mozo research found that 52% of millennials have seen their wages reduced by 20% or more as a result of the crisis. For those hoping to buy a home in Sydney, that means they’ll have to save an extra 14 months for a deposit, or 7.4 years in total. First home buyers in Melbourne have also had their savings journey extended. There, a 20% reduction in earnings translates to an extra 12 months of saving, bringing the total amount of time needed to six years. “Covid-19 has disrupted incomes across multiple industries throughout the country, and in doing so it has also slowed down the great Australian dream of home ownership,” said Mozo Director Kirsty Lamont. “With so many millennials having their income reduced, putting 20% of your income into savings will no longer be an option for some first home buyers, who need to prioritise their immediate expenses.” Across the nation’s capital cities, first home buyers in Perth and Darwin have emerged as the least disadvantaged, only needing to save for an extra six months if they have experienced wage reductions.  Entry level homes in the two cities are relatively cheap when compared to the average income, making home ownership a more attainable goal than in other capital cities.

If you need some extra capital to expand your company’s operations, taking out a business loan can be a pretty smart decision. But a lack of preparation or a subpar loan application can easily derail those plans. Here are a few traps to avoid if you want to see your business loan application make it to the next stage.

Confidence among Australian businesses has made a comeback, with new Roy Morgan research revealing nearly 51% feel hopeful about their financial prospects next year.

Whether to split bills with friends or send cash gifts to family, more Australians are embracing mobile payments.

It’s been a busy few weeks for neobank 86 400, with home loan rates cuts in May and now the addition of two new payment features to its banking app.

The number of Australian job advertisements saw a marginal improvement last month, with recent data from ANZ showing total ads increased by 0.5% after plummeting 58% in March and April.

New Mozo research found that one in three Australians admit their bank account balance wouldn’t get them through two weeks without work. This finding is particularly alarming being that 6.2% of the population is currently unemployed, a figure set to rise with the economic fallout of the Coronavirus pandemic.

One common roadblock around renewable energy is price, whether that’s installing solar panels or investing in large-scale projects.

Since the Australian Bureau of Statistics released the GDP summary last Wednesday, the word ‘recession’ has really been bandied around. According to the summary, Australia’s GDP fell by 0.03% in the March quarter, meaning quite simply that the economy is on a downward spiral.

As small business owners begin picking themselves back up amid easing COVID-19 restrictions, the federal government has made a move to encourage them to invest in ‘big ticket’ items.

The number of Aussie households with solar hit 2 million in 2018 and this was recognised as a milestone for the renewables industry.

All in this week’s banking recap.

Feeling iffy about your current credit card rate and not sure whether you’re getting a good deal? Might be time to shop around.

Eligible Australians will receive $25,000 cash grants to cover home building or renovation, in an effort to turbocharge the construction industry and build 30,000 homes by end of year. The $688 million HomeBuilder program is expected to support 140,000 direct construction jobs - along with a further 1 million workers in the residential building sector - which risk disappearing once projects already in the pipeline wrap up. The one-off payments will be available to individuals making less than $125,000 a year and couples making less than $200,000, and are to be used for new builds valued up to $750,000 or renovations worth between $150,000 and $750,000. “If you’ve been putting off that renovation or new build, the extra $25,000 we're putting on the table, along with record-low interest rates, means now's the time to get started,” said Prime Minister Scott Morrison. "This is about targeted taxpayer support for a limited time using existing  systems to ensure the money gets used how it should by families looking for that bit of extra help to make significant investments themselves.” The announcement comes after weeks of lobbying by industry bodies for the Government to throw its support behind Australia's home builders and tradies.  CEO of Master Builders Australia Denita Wawn came out in support of the program today, saying it’s a necessary step towards revitalising a struggling construction industry and kickstarting the economy. “HomeBuilder will be a lifeline for an industry facing a valley of death in the coming months. It will mean more new homes, more small businesses and jobs are protected and provide a stronger bridge to economic recovery for our country,” she said. “Residential building activity gives back more than double to the communities that sustain it with every $1 invested in home building activity providing $3 to the wider economy. “This means that HomeBuilder will provide a boost for thousands of tradies; the cafes, pubs, and ute dealerships that they frequent; as well as the thousands of building supply businesses that depend on the industry.”

Everybody loves a bargain, whether it’s scoring a new outfit on sale or saving money on car insurance.

While countless small business owners have had to dim their lights due to COVID-19, a surging number of Aussie retailers appears to have bucked this trend.

Our low interest rates are helping many Aussies pay off their properties right now, which works well in a country that’s obsessed with real estate. Indeed, anyone with a home loan can attest to a spring in their step whenever the Reserve Bank announces yet another rate cut.

It’s a lucky day for Aussies sending money overseas. The Australian dollar (AUD) is at its strongest in five months, despite a recession on the horizon.

Days after the insurance bill for Australia’s devastating bushfires, floods and hail storms climbed over $5 billion, Climate KIC announced an initiative to understand the physical risks of climate change.

Thanks to new technological advances, renewable energy is expanding into tidal energy.

When it comes to online shopping, there’s nothing better than a seamless checkout experience. And thanks to a recent partnership between Coles and Flybuys, doing your online weekly grocery shop just got a whole lot smoother.

Home borrower and refinancer alert: New Mozo research reveals that lenders are slashing home loan rates even though the Reserve Bank has elected to keep the official cash rate on hold again for the third month in a row.

The Federal Government has announced it will refund more than $721 million dollars in wrongly issued Centrelink debts to over 373,000 Australians.

Term deposits certainly didn’t stand still in May with Mozo counting a whopping 500 individual interest rate cuts from 60 different banks and credit unions*.

The RBA continues to monitor the current downturn as it unfolds, with Governor Philip Lowe confirming that both fiscal and monetary policy decisions are working as intended.

Most Australian retirees are now worried about their retirement income (65%), according to new research from investment management firm Challenger.

From relief packages to pausing repayments and to fee waivers, we’ve seen energy retailers launch a number of initiatives to help vulnerable households during the COVID-19 pandemic.

It’s the first of June, which means we’ve just about reached the halfway mark of 2020. Wild, right? It’s crazy to think that most of us have spent around a quarter of the year at home in self-isolation. We definitely didn’t see that one coming.

In good news for Australian borrowers and refinancers, the recent downward trend in home loan interest rates has continued, according to new Mozo research released this morning.

It’ll come as no surprise to savers who’ve been monitoring their dwindling interest returns that rates across savings accounts saw more cuts in May.

As well as travel bans and increased unemployment, the Covid-19 pandemic has also led to a dramatic rise in the number of vacant properties across Australia. According to SQM Research there were over 20,000 more vacant homes in May 2020 compared to February 2020*.