News Archive for May 2020

Small business survival can be challenging at the best of times, but COVID-19 has taken the task of staying afloat to a whole new difficulty level.

Kevin McCloud is invariably appalled when the ambitious home renovators on Grand Designs quickly surpass their renovation budget and timeline. But it’s also rare for him not to be completely charmed by the outcome.

No matter what continent they live on or what language they speak, you can always count on mums to tell you exactly what they’re thinking. Yes mums sometimes have some painfully honest opinions to share, but they can also often give you extremely useful, shrewd tips to live by.

If you’ve taken control of your own super with a Self-Managed Super Fund, part of your strategy may be finding a top value savings account to stash your retirement dollars in, with zero fees, easy access and a great interest rate. But that’s sometimes easier said than done.

Australia has ranked fifth out of 20 OECD countries in a major international test of young adults' understanding of personal finance.

For the 11th year running, Australians have rated their favourite banks and providers as part of the 2020 Mozo People’s Choice Awards.

As life inches its way back to normal, Aussie small businesses around the country are still picking up the pieces.

All in this week’s banking recap.

In a senate inquiry today, Reserve Bank Governor Philip Lowe suggested that the JobKeeper payment could be extended beyond its September expiry date, or potentially even survive in a different form.While the current downturn is not as severe as initially projected, Lowe warned that the economic stimulus should not be phased out too early.“If we have not come out of the current trough of economic activity, there will be - or there should be - a debate about how the JobKeeper program transitions into something else,” he said.The Federal Government rolled out the wage subsidy in late March to help preserve the connection between companies and employees. It has repeatedly said the program is only temporary. But Lowe said there may be a push to keep JobKeeper around for those in particularly hard-hit industries, such as the tourism sector, which may be struggling to stay afloat for months or even years to come.RELATED: Who is eligible for the government’s support payments?Lowe admitted that the program was prepared at a time of extreme uncertainty during which a six month hibernation of the economy seemed like a very real possibility.While that belief hasn’t exactly been borne out, a massive blow has been dealt to Australians’ confidence. The shape and timing of economic recovery will depend on how quickly that confidence is restored.Unemployment also remains high, with the latest labour force data to come out described by the RBA boss as “shocking.” Nearly 600,000 people lost their jobs in April, and that number is expected to increase over the coming months. “We know from previous sharp economic downturns that there is scarring in the labour market. People fall out of jobs and then have trouble getting back in and then we have more long-term unemployment,” Lowe said.Right now, the real rate of unemployment is obscured by the number of people who are working zero hours but still on their company’s payroll, as well as those who have exited the labour force completely.A more useful picture is provided by the number of hours worked, which declined by 9% in April. The RBA expects it to drop further in May, though not as sharply.Lowe also spoke of the need for a reform agenda centred around creating a favourable climate for businesses to “expand, invest, innovate and hire people.” A big part of that will involve rethinking both the tax system, which Lowe claims is not “optimally designed for growth,” and our approach to regulation. For information about the assistance available to households and businesses, along with tips to keep your finances in good health amid the current crisis, browse our guide to coronavirus and your finances.

Trustworthy, highly recommended, genuine desire to help - are these words you’d use to describe your electricity provider?

Fancy an occasional ‘add to cart’ or browse at the local shopping centre?

Once again Australia has voted for its favourite home insurance providers. The people have spoken loud and clear and this time round they’re chanting the names Apia, NRMA, RAC, RACQ, GIO and Youi!

It’s that time of year again folks! Last year we celebrated a decade of Mozo People’s Choice Awards, and now we’re back and better than ever, ready to pull the curtain on this year’s winners.

If there’s one thing that Aussies take very seriously, it’s caring for their fur-babies. Our furry friends aren’t just pets, they’re part of the family! Which means they deserve nothing less than the very best.

Aussies love to stay connected. Whether it’s FaceTiming friends and family overseas, keeping up with the latest in a group chat, sharing recipes on Insta or uploading yet another dance routine on TikTok.

In case you hadn’t noticed, Aussies don’t mess around when it comes to doing the groceries. Let’s face it, we all have a favourite supermarket, and at some point or another, we’ve all had our say in the age-old Woolies vs Coles chocolate mud cake debate.

There’s no better way to catch up with friends than over a home-cooked meal and a bottle of something to enjoy together.

Get pumped for the 2020 Mozo People’s Choice Awards. We’ve asked Australians to rate their banking, insurance and household service providers, and give serious snaps to the best of the bunch.

Macquarie Bank has made substantial changes across its range of fixed rate home loans today, cutting rates for 1, 2 and 3-year terms for both owner occupiers and investors by up to 0.35%.

It could be argued that one of the best things you can do during the COVID-19 pandemic is to practise kindness towards others.

With the chillier season well and truly here, it’s safe to say many Aussie households have already dusted off their portable heaters and packed away their summer wardrobe.

It’s been another busy month for Australia’s neobanks and fintechs, with Xinja cutting its Stash account and 86 400 slashing home loan rates. And there have been even more major announcements in the past week, so in case they passed you by, here’s a quick recap.

To the relief of its savers, ME Bank announced yesterday that it will be extending its automatic bonus savings rates until the end of June 2020.

For some Australian businesses, COVID-19 survival has come down to a strategy of expanding into online international markets.

New Mozo research reveals that 54% of Aussies predict they will have to apply for financial hardship with their bank or energy provider over the next six months. That’s over 10 million Australians.

New research has revealed resilience is a key ingredient to small business survival during a crisis like COVID-19.

The most recent figures from the Australian Prudential Regulation Authority (APRA) show more than 1.4 million Aussies have now been granted early access to their superannuation during the economic fallout of COVID-19.

In an effort to encourage Victorian households to reduce their carbon footprint, the Victorian government has unveiled a new renewable energy package worth $15.3 million.

If you’ve just brought a four-legged bundle of joy into your household, you might be too entranced by wet noses and fluffy ears to notice dog-related spending overtaking your bank account.

The Covid-19 health crisis sure has given us plenty of time to do some soul searching. So much so, in fact, that according to a report by ING 3.3 million Aussies are thinking about changing careers when lockdown is over.

Westpac home loan customers who have been financially impacted by COVID-19 will have access to extended repayment relief on their mortgages following an announcement by the major bank on May 23.

Australian savers hardly need reminding of the steady fall in term deposit and savings account rates in recent years - a trend accelerated by five Reserve Bank cuts to the official cash rate in 12 months.

Besides being a slightly dry topic at the dinner table, insurance can be extremely useful. It’s like a backup plan in case things go wrong and boy, have Aussies needed that this year. From the bushfire crisis to flooding and now a global pandemic, 2020 just keeps on changing our insurance needs.

All in this week’s banking recap.

As restrictions are slowly being lifted around the country, Australians can begin taking stock of their crisis spending habits, and how these might evolve post-lockdown.

Competition among lenders to attract home loan refinancers appears to be heating up with a spate of new cashback offers as high as $4,000 hitting the market in recent weeks.

When was the last time you put on a pair of jeans? Or something a little more professional than your track pants? If you can’t remember, then it’s safe to say you’ve been working from home for a while.

From changing banks to refinancing your home loan, it’s not uncommon to switch things up with your finances every now and then. Some common reasons Aussies choose to do this is the chance to save a few bucks or their current deal is no longer competitive.

As a 100% online lender, the ‘yard’ in Yard home loans is more virtual than real. That’s because Yard’s whole MO is to provide home loans for the ‘digital generation.’

Share investing isn't for everyone, even under normal circumstances. Amid the economic impacts of COVID-19 however, a little extra care is required.

Experts are bracing for a massive drop in activity in the housing sector, with construction of new dwellings expected to fall nationally by 43%, according to the Housing Industry Association (HIA).This would put the number of new homes being worked on next financial year at 112,000 – down from nearly 200,000 in FY19.In NSW, the shock is predicted to be even greater. The HIA report estimates housing starts will drop by 27.5% this financial year and a further 34% in FY21.HIA regional director David Bare said the coronavirus pandemic has caused fissures all throughout the residential building industry and recovery is not expected for another two years. “New South Wales was already in a vulnerable position, with the housing market cooling over the last few years and a significant amount of apartment supply still to come online,” he said.Travel restrictions currently in place are also a cause for concern, especially in major cities like Sydney and Melbourne where net overseas migration accounts for the majority of population growth."The further shock to housing demand from the loss of foreign students, tourists and migrants - who are particularly valuable to the state - is a particularly worrying development,” Bare said. "The 625,000 overseas students enrolled in Australian education institutions equates to demand for the past two years of apartment construction. It is not clear how many of these left in March or how many will return.”

If your income has been cut due to COVID-19, maintaining a healthy credit score might be the last thing on your mind. But factoring your financial reputation into your crisis money management could be invaluable in the future.

COVID-19 has left no corner of the global economy untouched, with one forecast revealing the international money transfers industry won’t come out of this pandemic unscathed either.

Nectr is a new electricity retailer that has been collecting feedback on what Aussies care about the most when it comes to energy.

If you’re one of the many Aussies increasingly concerned about the impact of their money on the planet, then you might want to add the B Corp certification to your checklist when looking into a finance provider.

Updated figures from the Australian Banking Association (ABA) reveal that 1 in 14 mortgages across the country have now been deferred as a result of the fallout from COVID-19.

If you choose to follow the latest movements in renewable energy, then you probably know that Tasmania is one of the Aussie states leading the way for renewables.

It’s no secret businesses have suffered enormously due to COVID-19, with the latest numbers from the Australian Bureau of Statistics (ABS) driving home this message even further.

Polly, Genie, Xavier, Bee and Freud might sound like characters in a funky new cartoon, but they’re actually the names of very responsible bots, designed to help run fintech insurance company Huddle. Each bot specialises in a different task and together they work to make the whole insurance process quicker, easier to manage and less stressful.

It’s no secret that the nationwide COVID-19 lockdowns have drastically changed the lives of Australians who are now faced with many new challenges. One that hits particularly close to home is the need to juggle work with looking after the children at home.

The coronavirus pandemic and resulting economic fallout have dealt a serious blow to the rental market, with the total number of vacant residential properties in Australia now at 88,688, according to data from SQM Research.

All in this week’s banking recap.

While home loan and business owners have received extensive financial aid, it’s credit card customers who have pulled the short straw in the COVID-19 pandemic.

Two Australian professors have said HECS-style business loans could be the answer to helping companies move away from a reliance on the government’s JobKeeper scheme.

In September of last year, the government passed legislation to make life insurance an opt-in inclusion for super funds holding less than $6,000 and for new members under 25. With the economic impacts of COVID-19 dominating financial news in the last few months, you may not have realised these changes came into effect on April 1.

There’s no doubt that COVID-19 has had an immense impact on many Aussies’ personal finances. And today, the latest numbers spoke for themselves.

A new fintech that promises to give control back to retailers in the Buy Now Pay Later (BNPL) space has just raised $6 million for its payments service.

Over 1,000 Australian first-time buyers have already purchased homes this year under the Federal Government’s First Home Loan Deposit Scheme (FHLDS) using a customer owned bank.

Today was supposed to be the day Josh Frydenberg unveiled the 2020-21 Federal Budget, but instead of ringing in Australia's first surplus in 12 years, the Treasurer delivered a grim summary of Australia’s current economic woes.

Optimism among Australian businesses remains weak amid COVID-19, with new research showing nearly 3 in 4 don’t expect the economy to fare well over the coming year.

There's been some doom and gloom around the property market in recent months, chiefly because demand is said to have dropped. Demand really drives real estate, especially when it’s from investors.

As a young adult it can often be tough to navigate your way through financial products as they become more prominent in your life and in turn more daunting.

Buy Now Pay Later report quick facts:

Commonwealth Bank customers can get a digital copy of their receipts sent straight to their smartphones under a new partnership between the major bank and Sydney-based fintech Slyp.

It’s been just over a month since the official launch of the JobKeeper program, but Prime Minister Scott Morrison has already suggested it might have an earlier end date than expected.

With many Aussies facing reduced income and tighter budgets, UBank is offering customers an opportunity to get more out of their savings.

All in this week’s banking recap.

Property investors can take out landlord insurance to mitigate the practical risks involved in renting out a space, such as damage caused by tenants, or even natural disasters. It can also ensure they’re covered in case they lose rental income. But this is getting more complicated in the COVID-19 climate.

Money can be a source of stress when you’re faced with constant bad news. And hasn’t the news been relentless lately?

Let’s not beat around the bush. The COVID-19 pandemic has had a devastating impact on the economy and it’s negatively affected the financial positions of hundreds of thousands of Australians.

Digital lender 86 400 has announced a number of changes to its suite of home loans this morning, including rate reductions on fixed mortgage offers and a new $2,000 cashback offer.

Sydney-based neobank Xinja Bank will cut the ongoing interest rate on its ‘Stash’ savings account from 2.25% to 1.80% on Monday, May 11.

With social distancing restrictions easing and spirits lifting, it seems as though Aussie households are starting to see the light at the end of the COVID-19 tunnel.

Judo Bank is the newest Australian company to enter unicorn territory, after its latest round of funding pushed its valuation to well over $1 billion.The challenger bank closed its third round of funding having brought in $230 million, bringing the total equity raised over three rounds to $770 million.It also received a $500 million injection from the Federal Government in early April to boost the flow of capital to Aussie businesses throughout the current downturn.The latest batch of funding comes courtesy of existing backers such as the Abu Dhabi Capital Group, Bain Capital Credit, Ironbridge, Myer Family Investments, SPF Investment Management, OPTrust, and Tikehau Capital.According to Judo co-founder David Hornery, the outcome “underscores the confidence and commitment our existing investors have in Judo, particularly at a time of extreme volatility in global markets.”"We now have one of the strongest capitalised tier-1 ratios in the country, and intend on rapidly growing our national footprint, and expanding the products and services we offer to thousands of Australian SMEs, whose needs have long been ignored by the major banks," he added.RELATED: Neobanks 86 400 and Xinja secure funding injections, Douugh to hit ASXWhile so many banks see their profit margins squeezed due to the economic slowdown, Judo’s newly minted unicorn status, along with the support it has received from the Government, offer a clear sign it’s on secure footing.It has handed out $1.6 billion in business loans and taken $1.5 billion in deposits since its founding in 2016.Judo Bank is now the first among the new generation of Australian banks to be valued at over $1 billion, and one of only two Australian fintechs - the other being Airwallex, a cross-border payment technology startup.For an overview of Judo Bank’s business loan and personal products, visit our Judo Bank information page.

Using your own bank to send money overseas may often be the first option that comes to mind, but as the 2020 Mozo Experts Choice Awards for International Money Transfers have revealed, it’s not the cheapest.

A number of term deposits with rates towards the higher end of the market have been tweaked in recent days, including offers from Judo Bank, Rabobank and UBank.

The Australian Banking Association (ABA) has recorded more than 320,000 applications for home loan deferrals in the wake of the coronavirus. This comes after banks in March began offering financial hardship relief to customers affected by COVID-19, including loan deferrals of up to six months.

Despite the slight easing of social distancing restrictions, the vast majority of people across the country are still working from dining tables, home offices or even sofas. The global pandemic has shaken up not only the work-life balance, but also living arrangements and with that comes home insurance.

To help the country economically recover post COVID-19, the Clean Energy Council has unveiled a new plan that’s all about investment in renewable energy.

Even as COVID-19 social distancing restrictions ease, we’ll still be living in unprecedented economic conditions. Combine this financial uncertainty with the social exasperation of being physically separated from friends and family for months, and we might just melt into a puddle of anxiety and tension.

There’s no denying the impact COVID-19 has had on Aussie businesses over the last few months. Employers have had to lay off staff or shut their doors altogether, while households have had to adjust to a new way of living.

It’s been over two months since the Reserve Bank’s first interest rate cut in March, but the fallout is still being recorded with home loan rates continuing their downward trajectory throughout April.

New research has revealed that payments platform PayPal hiked up its exchange rate margins during the peak coronavirus shutdown period.

If you were following term deposit rates in April, then your head is probably in a bit of a spin.

Love a scroll through Gumtree every now and again? Well, if you’re on the hunt for a new set of wheels, the range of choice is about to get a whole lot bigger.

The Reserve Bank continues to monitor the current economic crisis as it unfolds, revealing it expects a contraction of around 10% in its May meeting this afternoon.

If there’s one thing that’s been in need of an upgrade, it’s the Australian energy market.

It’s no secret times are tough for many small business owners. By now, coronavirus shutdowns would have likely affected your operations one way or another, whether your daily customer count has dwindled or you’ve had to close up shop completely.

While hunkering down with a calculator, bills, loan schedules and spreadsheets isn’t everyone’s idea of a good time, creating a budget is always a good investment. In fair economic weather, it can help you reach savings goals or pay down debt faster, but if you’re facing tough financial times, it can be even more valuable.

With social restrictions and business closures, Aussies are spending less on their credit card than they used to.

Apart from being a great way to help combat climate change in your own backyard, composting your food scraps can also come with some nifty short term and long term savings.

Westpac has announced it will provide support to customers who’ve been impacted financially as a result of the economic fallout of COVID-19 by offering a three-month interest-free period on personal loans.

After a six week ban, the NSW property industry will be given the green light to resume property inspections and on-site auctions this weekend.

A flurry of rate cuts in the month of April have left Bank of Queensland (BOQ) as the only remaining bank being tracked in the Mozo database to offer an ongoing savings account rate starting with a ‘2’.

Starting today, the Commonwealth Bank (CBA) will automatically switch 748,000 home loan customers onto the minimum repayments required to service their loans.

For businesses in a tight financial spot or ready to grow to new heights, extra funding may be the X factor you need to help your company thrive.

From impulse purchases online to continuing to pay for a service you no longer use, opportunities to throw your hard earned dollars away are everywhere.

Is it just me, or does time go by so much quicker in lockdown? As the calendar flicks over to the 1st of May another month in the post-coronavirus world begins. We hope you’re all safe, healthy and taking extra special care of yourselves during this difficult time.

All in this week’s banking recap.

On Thursday, the Australian Energy Regulator (AER) announced its final determination for default market offer (DMO) prices for the 20/21 financial year and the news may come as a surprise for many households.