RBA tells homeowners to resist loans

RBA tells homeowners to save and not take on attractive home loans. Source: Supplied

HOUSEHOLDS are being urged to continue bolstering their saving and resist the attractive loans on offer from the major commercial banks by the Reserve Bank, as the economy works its way out of its historically high debt levels.

Despite financial stress and mortgage arrears falling in most parts of the country, the RBA said the household savings rate of just over 10 per cent, which is well above its 20-year average, must be maintained and debts paid down.

And the central bank's half-yearly Financial Stability Review warns investors the upward swing in global markets this year may only be temporary with the crisis in Cyprus a clear warning of the risks that still remain as the global economy works its way out of its financial hangover.

The RBA's increasingly optimistic outlook has seen JP Morgan yesterday push back its tip of another and final interest rate cut, to take the official cash rate to a record low of 2.75 per cent, from May to November.

This comes as the RBA confirms the cost of wholesale funding - the level at which banks borrow from each other - has dropped to its lowest level since the GFC began in 2008.

But instead of using this drop to lower borrowing costs for consumers, the banks have continued to strengthen their capital, funding and liquidity positions.

The Financial Stability Review also said that while ANZ accounted for a large part of the growth in Asia with its super regional strategy to generate 25-30 per cent of its business from the region by 2017 - all the big banks have increased their exposure in the past five years.

International Banking Statistics shows Australian banks assets in Asia has risen from $27 billion in 2007 to $112 billion at the end of last year.

But the report warned that while the more prudent approach of the post global financial crisis period has helped bring household debt-to-income ratio down from 153 per cent in late 2006 to 148 per cent it was still to high and paying down debt must continue to be priority.

The US rate peaked at 133 per cent during the sub-prime boom.This more cash-conscious approach has however seen household's mortgage buffer surge to over 20 months - this is scheduled repayment plus interest - in the past five years.

"Housing loan arrears rates have continued to improve across most parts of the country and other indicators of household financial stress remain low," the RBA report said.

"Nonetheless, household indebtedness and gearing remain around historically high levels. It would therefore be undesirable from a financial stability perspective if households were to exhibit less prudent behaviour than they have over the past few years.

"This increasingly conservative approach to family finances has seen the net worth of the average household rise to $721,000 - this includes property assets, superannuation and savings in the March quarter.

It is back from a low of $632,000 in mid-2008 but still below its 2007 peak of $772,000 before the crisis hit.

View the original article here

Jobless truckie's mysterious inheritance

AN UNEMPLOYED truck driver has been named sole heir of the father he never knew existed - a businessman and secret society member - and will inherit his $350,000 estate.

He grew up believing he was one of his parent's three children, but he was really the product of his mother's torrid affair with a member of an ancient secret society.

Today the unemployed Adelaide truck driver is $350,000 richer because the Supreme Court has named him the sole heir of his true father - a man he never knew existed.

The driver, known only as AMH, has won a lawsuit he began after his mother learned of his real father's death.

She then revealed the shameful truth she had hidden for 50 years - tearing her family apart.

In documents obtained by adelaidenow, Justice Kevin Nicholson says that painful confession, supported by tests showing AMH's genes are different to the brothers he grew up with, prove his paternity.

AMH now stands to inherit the lucrative estate bequeathed to his real father's niece, who had disputed his claims in court.

In the documents, Justice Nicholson says AMH's mother, Mrs H, was a trainee nurse in the 1950s.

It was then she met his true father, Mr M.

"Mr M was a member of the Rosicrucian society and he would often attend her house with Rosicrucian books," he says.

Rosicrusianism is a secret society believed to have been founded in medieval Germany.

Its teachings embrace philosophy and mysticism to promote global spiritual enlightenment.

Although they were both married, Mr M and Mrs H began a sexual relationship in 1967.

They would meet for sex once a week at lunchtime - Justice Nicholson says AMH was conceived during one of those trysts.

"Mrs H's memory of this was vivid because the timing caused her to feel extremely ashamed," he says.

"It was two days after her wedding anniversary and one day prior to her husband's birthday.

"She felt terrible shame in having engaged in an extra-marital affair... and particularly so given that she fell pregnant."

He says Mrs H's "introverted, largely platonic" husband never doubted AMH was his child.

Mr M, however, knew the truth.

"He never denied it... indeed he was very happy and said he was proud to have a son," he says.

Mr M's wife filed for divorce in the early 1970s, naming Mrs H as his mistress.

Mrs H swore a false affidavit insisting there was no relationship.

Justice Nicholson says Mr M and Mrs H last saw each other in 1974.

"He asked her to leave her family and run off with him," he says.

"Mrs H refused and told him that he should go back to Mrs M... she never saw him again."

Mrs H and her unwitting husband raised AMH with their children - two sons and a daughter - until his death in 1994.

Mr M died interstate in 2009 without having had other children.

Under the terms of his will, his niece was appointed administrator of his estate.

Mrs H learned of Mr M's passing by reading a newspaper death notice.

She then told AMH and his half-siblings the truth.

"She decided to do this because she had a terrible feeling of grief and a feeling that she had lost the opportunity to get them back together," Justice Nicholson says.

"She also wondered if Mr M left anything for AMH because he knew he was his son."

AMH subsequently underwent a DNA paternity test - the documents do not indicate whether this was ordered by the court.

It showed AMH's genetic profile was different to that of his brothers.

"This revelation came as a complete shock to AMH," Justice Nicholson says.

"He had never had any previous indication that his mother's husband was not his father.

"As a result of this, Mrs H experienced some problems in her family... her daughter thought it was something terrible and never got over it."

The case went to court because Mr M's niece disputed AMH's claim.

However, she said she would concede the estate if a court declared him to be Mr M's son.

In his final ruling, Justice Nicholson says AMH is entitled to his birth father's estate, and orders the niece to surrender it.

He also pays tribute to Mrs H's courage.

"I have little doubt at all that, as time passed, Mrs H became more and more anxious and ashamed about the affair," he said.

"She was rightly concerned about the reactions of her children and, in my view, acted bravely in telling AMH and her other children about these events that took place so very long ago."

View the original article here

RBA tells homeowners to resist loans

RBA tells homeowners to save and not take on attractive home loans. Source: Supplied

HOUSEHOLDS are being urged to continue bolstering their saving and resist the attractive loans on offer from the major commercial banks by the Reserve Bank, as the economy works its way out of its historically high debt levels.

Despite financial stress and mortgage arrears falling in most parts of the country, the RBA said the household savings rate of just over 10 per cent, which is well above its 20-year average, must be maintained and debts paid down.

And the central bank's half-yearly Financial Stability Review warns investors the upward swing in global markets this year may only be temporary with the crisis in Cyprus a clear warning of the risks that still remain as the global economy works its way out of its financial hangover.

The RBA's increasingly optimistic outlook has seen JP Morgan yesterday push back its tip of another and final interest rate cut, to take the official cash rate to a record low of 2.75 per cent, from May to November.

This comes as the RBA confirms the cost of wholesale funding - the level at which banks borrow from each other - has dropped to its lowest level since the GFC began in 2008.

But instead of using this drop to lower borrowing costs for consumers, the banks have continued to strengthen their capital, funding and liquidity positions.

The Financial Stability Review also said that while ANZ accounted for a large part of the growth in Asia with its super regional strategy to generate 25-30 per cent of its business from the region by 2017 - all the big banks have increased their exposure in the past five years.

International Banking Statistics shows Australian banks assets in Asia has risen from $27 billion in 2007 to $112 billion at the end of last year.

But the report warned that while the more prudent approach of the post global financial crisis period has helped bring household debt-to-income ratio down from 153 per cent in late 2006 to 148 per cent it was still to high and paying down debt must continue to be priority.

The US rate peaked at 133 per cent during the sub-prime boom.This more cash-conscious approach has however seen household's mortgage buffer surge to over 20 months - this is scheduled repayment plus interest - in the past five years.

"Housing loan arrears rates have continued to improve across most parts of the country and other indicators of household financial stress remain low," the RBA report said.

"Nonetheless, household indebtedness and gearing remain around historically high levels. It would therefore be undesirable from a financial stability perspective if households were to exhibit less prudent behaviour than they have over the past few years.

"This increasingly conservative approach to family finances has seen the net worth of the average household rise to $721,000 - this includes property assets, superannuation and savings in the March quarter.

It is back from a low of $632,000 in mid-2008 but still below its 2007 peak of $772,000 before the crisis hit.

View the original article here

RBA tells homeowners to resist loans

RBA tells homeowners to save and not take on attractive home loans. Source: Supplied

HOUSEHOLDS are being urged to continue bolstering their saving and resist the attractive loans on offer from the major commercial banks by the Reserve Bank, as the economy works its way out of its historically high debt levels.

Despite financial stress and mortgage arrears falling in most parts of the country, the RBA said the household savings rate of just over 10 per cent, which is well above its 20-year average, must be maintained and debts paid down.

And the central bank's half-yearly Financial Stability Review warns investors the upward swing in global markets this year may only be temporary with the crisis in Cyprus a clear warning of the risks that still remain as the global economy works its way out of its financial hangover.

The RBA's increasingly optimistic outlook has seen JP Morgan yesterday push back its tip of another and final interest rate cut, to take the official cash rate to a record low of 2.75 per cent, from May to November.

This comes as the RBA confirms the cost of wholesale funding - the level at which banks borrow from each other - has dropped to its lowest level since the GFC began in 2008.

But instead of using this drop to lower borrowing costs for consumers, the banks have continued to strengthen their capital, funding and liquidity positions.

The Financial Stability Review also said that while ANZ accounted for a large part of the growth in Asia with its super regional strategy to generate 25-30 per cent of its business from the region by 2017 - all the big banks have increased their exposure in the past five years.

International Banking Statistics shows Australian banks assets in Asia has risen from $27 billion in 2007 to $112 billion at the end of last year.

But the report warned that while the more prudent approach of the post global financial crisis period has helped bring household debt-to-income ratio down from 153 per cent in late 2006 to 148 per cent it was still to high and paying down debt must continue to be priority.

The US rate peaked at 133 per cent during the sub-prime boom.This more cash-conscious approach has however seen household's mortgage buffer surge to over 20 months - this is scheduled repayment plus interest - in the past five years.

"Housing loan arrears rates have continued to improve across most parts of the country and other indicators of household financial stress remain low," the RBA report said.

"Nonetheless, household indebtedness and gearing remain around historically high levels. It would therefore be undesirable from a financial stability perspective if households were to exhibit less prudent behaviour than they have over the past few years.

"This increasingly conservative approach to family finances has seen the net worth of the average household rise to $721,000 - this includes property assets, superannuation and savings in the March quarter.

It is back from a low of $632,000 in mid-2008 but still below its 2007 peak of $772,000 before the crisis hit.

View the original article here

Taylor Swift to guest star on New Girl

Taylor Swift will make a guest appearance on the season two finale of Zooey Deschanel's hit comedy New Girl. Picture: AP Source: AP

A NEW GIRL is coming to New Girl and her name is Taylor Swift.

A representative for the Grammy-winning singer said Swift will appear on the May 14 season finale of the hit show. No other details were provided.

New Girl stars actor and singer Zooey Deschanel as the awkward, but bubbly Jessica Day, who lives with three male roommates.

Swift appeared in the 2010 romantic comedy Valentine's Day and guest starred on CSI in 2009. The 23-year-old launched her "Red" world tour this month.

View the original article here

More kids growing up in rental homes

A new generation of children are growing up in rental houses. File image Source: The Courier-Mail

MORE Australian children are growing up in rental homes, a new analysis of Census figures show.

The proportion of families with at least one child aged 15 years or younger who are renting rose from 24.6 per cent in 2006 to 26.9 per cent in 2011, according to the analysis by Australians for Affordable Housing.

Campaign manager Joel Pringle said more families in rental accommodation was a sign of financial stress.

“Many young families are finding themselves stuck in a rent trap, unable to purchase a home, but also struggling to afford high rents, which make saving for a deposit incredibly difficult.”

New figures released last week reveal the number of first home buyers in the property market fell to an 8 and a half year low last month.

According to Mr Pringle: “Housing remains unaffordable, and many people are struggling.”

First home buyers getting older

More young people are also choosing to rent or live at home for longer before buying their own home.

According to economics professor Mark Wooden of the University of Melbourne, the age of the typical first home buyer is getting older as young people increasingly stay longer in education and take longer to get married.

“We know that age of leaving home has been gradually rising over time, so it’s very likely that age of first home buyers is also rising.”

Staying at home was also a more comfortable option these days, Professor Wooden said.

“In earlier days young people were effectively driven out of home by the lack of space. Parents today are wealthier and have large homes which can more easily accommodate adult children and their lifestyle than was true in the past, making it more attractive for young people to stay with parents.”

Meanwhile, a greater supply of new rental apartments in inner city areas was luring more young people to rent for longer.

“More high quality rental apartments in attractive areas in the inner city may be leading some to choose rental over home ownership on the urban fringe.”

Email Jessica Irvine.  Twitter: @Jess_Irvine

View the original article here

Offset accounts may cause an upset

Offset accounts can save you big bucks. Source: National Features

MORTGAGE holders using offset accounts are risking paying fees and using partially effective accounts without even knowing.

Research by comparison website RateCity found 75 per cent of variable home loan providers offer offset accounts but about one in 10 charge an account-keeping fee.

Some accounts are not 100 per cent effective they are partially effective with interest costs charged on the offset account balance.

RateCity spokeswoman Michelle Hutchison says it is important account holders fully understand what sort of offset account they are signing up for.

"They need to find out if they are 100 per cent effective or partially effective because it will make a big difference," she says. "They also need to know if the offset account charges a monthly fee because the fee might outweigh the interest that they will be offsetting."

Hutchison says fees and partial-offset accounts can hit first-home buyers the hardest because they often have small amounts of cash sitting in these types of accounts after making their first property purchase.

Offset accounts are a tax-effective way to save on interest charges because you don't pay tax on the money you stash away, as opposed to putting money into savings accounts and investments.

RateCity found that of the offset accounts that come at a cost, the average account-keeping fee is $7.81 a month.

For a homeowner with a $300,000 mortgage and a 6 per cent interest rate, a $7.81 monthly fee could result in the borrower missing out on more than $3000 over 30 years.

Suncorp Bank executive manager Craig Fenwick says there is a few ways to get the "best bang for your buck" from offset accounts.

"First you must maximise the amount of money you have in that account ... for example your salary is going into that account," he says. "It comes back down to your individual circumstances about how big your loan is, what your interest rate is paying on that loan, how much you might pay for the facility and also how much money you have offsetting against that home loan."

Fenwick says savers with cash deposits may find it more beneficial to have their money in an offset account and available "at-call" while also reducing the interest on their home loan, rather than locking it away in a term deposit.

HSBC Bank Australia's head of mortgages, Alice Del Vecchio, says every cent counts in an offset account. "Every dollar makes a difference."

View the original article here

Demi Lovato to stay on X Factor panel

Demi Lovato will return to "The X Factor" but without Britney Spears and LA Reid. Source: AP

FOX network says Demi Lovato is returning as a judge of The X Factor.

The singer-songwriter will be back alongside series creator Simon Cowell when the singing competition begins its third season this fall.

Although calling Lovato "really, really annoying," Cowell said he enjoys working with her. She joined the panel of judges last year.

The announcement comes as the panel is being revamped. Britney Spears and record producer Antonio "L.A." Reid departed after Season 2.
 

View the original article here

The Real Housewives' best episodes

Another moment of high drama on The Real Housewives of Orange County. From left, Heather Dubrow, Tamra Barney, Vicki Gunvalson and Gretchen Rossi, in a scene from All Housewives Clam Bake at Rachel's in upcoming season eight. Picture: AP/Bravo Source: AP

VICKI Gunvalson is making it look easy.

On an unusually dreary day in Orange County earlier this month, inside a soundstage situated between a furniture outlet and a mattress store, the excitable insurance agent is perched on a chair in front of a green screen spilling her guts out to a camera - well, a producer sitting beside a camera.

Nothing is off limits: her divorce, finances, fights with her children, her relationship with God, you name it.

Of course, opening herself up for the world to see - and judge - has become second nature to the reigning queen of Bravo's The Real Housewives of Orange County, which begins its eighth season Monday.

Most of Gunvalson's life has been proudly captured by reality TV cameras since 2006, back when Anna Nicole Smith was still alive and tweeting was still for the birds.

It's Gunvalson's new reality. Over the past eight years, she's remained the one constant in The Real Housewives universe, which now includes editions in New York, Atlanta, New Jersey, Miami and Beverly Hills, as well as international versions in places like Canada, Ireland and Australia.

While the rest of the inaugural Orange County ensemble moved on or wasn't asked back or whatever, and others have come and gone, Gunvalson stuck with the show, and the show stuck with Gunvalson. Why has she continued to allow reality TV cameras to document so much of her personal life?

The Real Housewives of Orange County from left, Alexis Bellino, Vicki Gunvalson, Gretchen Rossi, Heather Dubrow and Tamra Barney. The reality show that spawned spin-offs all over the US will reach a TV milestone: its 100th episode. Picture: AP

"I have a sense of responsibility," she says following her on-camera therapy session.

"I would've been (expletive) at myself if I backed out of season five or six and saw the success of the franchise keep going, and I elected to pull back because I couldn't handle it anymore. There's nothing I can't handle. I just have to figure out a way not to crumble when times get tough when I'm doing this."

When she debuted on the first season of The Real Housewives, the 42-year-old Gunvalson was married with two teenagers and sold insurance from home. She's now a 51-year-old first-time grandmother with her own insurance company and 12 employees. She's also still trudging through a drawn-out divorce.

Sure, Gunvalson wishes she would have said and done some things differently over the years, but she has no regrets. In the same breath, she can blame the experience for the collapse of her marriage but praise it for giving her more confidence across all aspects of her life.

The Real Housewives of Orange County creator Scott Donlop, who cast Gunvalson for the series, remembers her apprehension about joining the show like it was yesterday.

At that point, nobody had any inkling The Real Housewives would last for eight seasons, let alone ignite a cultural phenomenon.

"I remember sitting in Vicki's dining room with her then-husband Donn and her asking me, 'Why would you put me on a television show? I don't know anything about television,'" says Donlop.

"She kept asking me, 'What are we going to do!?'"

The Real Housewives of Orange County was originally marketed as a reality TV take on Desperate Housewives set behind the gates of Coto de Caza, a ritzy private gated community in Orange County, California.

The show began as more of an aspirational suburban anthropological experiment than the secret-spilling, cheek-kissing, wine-tossing, trip-taking, Bunco-playing soap opera that it's known as today.

The behind-the-gates conceit was mostly abandoned by the third season with the addition of outspoken real estate agent Tamra Barney, who lived outside Coto.

Over the course of filming the show, Barney and Gunvalson became besties - on and off camera - but their degrading friendship was a pivotal plot point during the seventh season, an experience that reshaped how Gunvalson approached filming the eighth season.

"The reality is when we're not filming, we're not hanging out together," says Gunvalson.

"We're not going on vacations together. I really had to separate my on-camera friends from my off-camera friends. That's helped me get through the uncomfortable times."

Later this year, The Real Housewives of Orange County will reach a TV milestone: its 100th episode. Gunvalson has been there for all of 'em. To mark the occasion, Bravo is planning a standalone two-hour special that will pull back the curtain on the series and revisit past cast members.

"There's a lot of people who have been on the show," said Shari Levine, Bravo's senior vice president of original programming.

"The cast has changed over the years. People's lives have changed. It's interesting to be reflective. We're not usually reflective. It's an opportunity to do that."

While much of the show's veneer has been wiped away in recent years by tabloids, social media, talk shows and a savvier viewing public, that hasn't deterred viewership.

The seventh seven, which added eye-rolling actress and plastic surgeon's wife Heather Dubrow to the mix, averaged 2.8 million viewers and was the highest rated season among younger audiences.

"The show is like a Venn diagram," says Dubrow.

"You have the show, reality and the show's reality intersecting. It really does exist on three different planes, so to be doing an interview breaking down the fourth wall (for the 100th episode) was a little surreal."

Before the special airs on US network Bravo later this season, the eighth installment of The Real Housewives of Orange County fires up in the US on Monday with Dubrow preparing to host a clam bake, Barney adjusting to life with her fiance and Gunvalson becoming a grandmother.

Gunvalson isn't sure if the network will invite her back to yelp her signature "WOO HOO!" for a ninth season. She's game, but she's at peace knowing the cameras will eventually go away.

"There will be a day when the curtains close or Bravo tells me they're going with a younger crowd or that I don't have a story anymore," she says.

"I don't believe I'll never not have a story. I'm Vicki Gunvalson. I'm not boring. I'm always juggling 900 things at once. There's going to be a story. The question is does Bravo want it? That's their choice."

View the original article here

Jobless truckie's mysterious inheritance

AN UNEMPLOYED truck driver has been named sole heir of the father he never knew existed - a businessman and secret society member - and will inherit his $350,000 estate.

He grew up believing he was one of his parent's three children, but he was really the product of his mother's torrid affair with a member of an ancient secret society.

Today the unemployed Adelaide truck driver is $350,000 richer because the Supreme Court has named him the sole heir of his true father - a man he never knew existed.

The driver, known only as AMH, has won a lawsuit he began after his mother learned of his real father's death.

She then revealed the shameful truth she had hidden for 50 years - tearing her family apart.

In documents obtained by adelaidenow, Justice Kevin Nicholson says that painful confession, supported by tests showing AMH's genes are different to the brothers he grew up with, prove his paternity.

AMH now stands to inherit the lucrative estate bequeathed to his real father's niece, who had disputed his claims in court.

In the documents, Justice Nicholson says AMH's mother, Mrs H, was a trainee nurse in the 1950s.

It was then she met his true father, Mr M.

"Mr M was a member of the Rosicrucian society and he would often attend her house with Rosicrucian books," he says.

Rosicrusianism is a secret society believed to have been founded in medieval Germany.

Its teachings embrace philosophy and mysticism to promote global spiritual enlightenment.

Although they were both married, Mr M and Mrs H began a sexual relationship in 1967.

They would meet for sex once a week at lunchtime - Justice Nicholson says AMH was conceived during one of those trysts.

"Mrs H's memory of this was vivid because the timing caused her to feel extremely ashamed," he says.

"It was two days after her wedding anniversary and one day prior to her husband's birthday.

"She felt terrible shame in having engaged in an extra-marital affair... and particularly so given that she fell pregnant."

He says Mrs H's "introverted, largely platonic" husband never doubted AMH was his child.

Mr M, however, knew the truth.

"He never denied it... indeed he was very happy and said he was proud to have a son," he says.

Mr M's wife filed for divorce in the early 1970s, naming Mrs H as his mistress.

Mrs H swore a false affidavit insisting there was no relationship.

Justice Nicholson says Mr M and Mrs H last saw each other in 1974.

"He asked her to leave her family and run off with him," he says.

"Mrs H refused and told him that he should go back to Mrs M... she never saw him again."

Mrs H and her unwitting husband raised AMH with their children - two sons and a daughter - until his death in 1994.

Mr M died interstate in 2009 without having had other children.

Under the terms of his will, his niece was appointed administrator of his estate.

Mrs H learned of Mr M's passing by reading a newspaper death notice.

She then told AMH and his half-siblings the truth.

"She decided to do this because she had a terrible feeling of grief and a feeling that she had lost the opportunity to get them back together," Justice Nicholson says.

"She also wondered if Mr M left anything for AMH because he knew he was his son."

AMH subsequently underwent a DNA paternity test - the documents do not indicate whether this was ordered by the court.

It showed AMH's genetic profile was different to that of his brothers.

"This revelation came as a complete shock to AMH," Justice Nicholson says.

"He had never had any previous indication that his mother's husband was not his father.

"As a result of this, Mrs H experienced some problems in her family... her daughter thought it was something terrible and never got over it."

The case went to court because Mr M's niece disputed AMH's claim.

However, she said she would concede the estate if a court declared him to be Mr M's son.

In his final ruling, Justice Nicholson says AMH is entitled to his birth father's estate, and orders the niece to surrender it.

He also pays tribute to Mrs H's courage.

"I have little doubt at all that, as time passed, Mrs H became more and more anxious and ashamed about the affair," he said.

"She was rightly concerned about the reactions of her children and, in my view, acted bravely in telling AMH and her other children about these events that took place so very long ago."

View the original article here

Ink is running dry on signatures

Signatures on most credit cards will soon be a thing of the past. Source: National Features

THE death of the signature to pay for goods on credit cards has been delayed.

April was earmarked for the removal of the signature for all Visa cardholders - a move that would affect millions of Australians - but now a much larger rollout of the chip and four-digit PIN is expected in a bid stop fraudsters.

MasterCard is also expected to remove the use of signing for goods domestically.

Visa country manager Vipin Kalra says the removal of the signature to pay for goods will take time because a large portion of the population is still putting pen to paper.

"More than half of the population is already using PINs," he says. "On credit cards and on debit cards, this is even higher because it has been around for 20 years.

"We are in the process of working on a new date, (for the removal of the signature).

"The reason for shifting our date is to align ourselves with the rest of the industry."

Kalra says the change will make the payments system "more convenient and secure" and also help boost security, but may not take effect until 2014.The Australian Payments Clearing Association's statistics showed there were more than 1.2 million fraudulent transactions with losses of about $285 million in 2012.

Kalra says the population must be well educated about the changes before the removal of the signature occurs to ensure Australians are aware they must ditch the pen and tap in a PIN. "We don't want to end up in a situation where consumers don't feel comfortable with a PIN or don't remember their PIN and are being forced to use a PIN if they don't have a PIN with them," he says.

"People are quite used to using PIN at point of sale, with ATMs we already use PIN."

Jost Stollman, chief executive of financial institution Tyro Payments, says the removal of the signature from credit cards will be a significant change for consumers.

"It's merely knowing what your PIN is, which is the barrier for the ones that never use them for payment transactions," he says.

"We are also going down the path of no authentication for tap and go for up to $100 ... so the volume everyday of small ticket transaction using signature and PIN will disappear."I think the key is a good communication campaign by the industry."

He says the transition period will take time and the banks have a responsibility to educate the public on the gradual shift away from signing to pay.

Mastercard spokesman David Masters says the more widespread use of a four-digit PIN will help reduce the rate of fraudulent transactions.

"MasterCard has lead the way on a range of fraud prevention measures such as introducing chip cards to prevent skimming," he says.

"PIN may at some point in the future form part of our solution, but it will never be the only solution."

View the original article here

PM makes no promises on your super

One of the key agitators in Labor's leadership fiasco said he won't vote for raids on superannuation.

• PM will not commit to leaving super untouched
• Liberals say Labor ''desperate to find revenue'' 
• PM to leave Aussies in loads of debt 
• No-confidence motion 'progress' - Pyne 

JULIA Gillard has failed to rule out if Labor will raid superannuation funds in the May budget, saying any decisions made for the sector will be in Australia's long term interest.

It comes after Tony Abbott declared the Coalition will make ''no adverse unexpected changes'' to superannuation in its first term of government.

Asked directly if superannuation funds would be used to supplement the tax revenue base, Ms Gillard would not give a clear answer.

''Any decisions we make will be about the long term interest of the superannuation system,'' Ms Gillard told ABC radio.

''When we think about superannuation we think about what is in the interest of decent working people … and what is in the interest of the long term sustainability of the system.''

She said superannuation had been brought in by Labor and it would always be a ''Labor creature''.

''I can assure people superannuation is a Labor creature and we will always nurture it well,'' Ms Gillard said. 
 

Julia Gillard cannot make a commitment to leaving our superannuation untouched. Picture: Colin Murty

Earlier today, Mr Abbott said there had been ''far too much fiddling'' with superannuation from Labor and if elected as Prime Minister on September 14 he would put a stop to it.

''There have been at least five significant changes to superannuation from this government,'' Mr Abbott said.

''I want to say to people that super is safe under the Coalition.

''We will make no adverse unexpected changes to superannuation in our first term.''

The Liberal party has previously confirmed it is their policy to reintroduce the 15 per cent tax on superannuation for 3.6 million Australians earning $37,000 and under, which was cut by Labor.

It could mean a tax slug of up to $500 per year for one in three Australian workers under an Abbott government.
 

Tony Abbott, visiting BAE Systems Australia in Melbourne today, has vowed to leave our super untouched. Picture: Ian Currie

Meanwhile Kevin Rudd backer Joel Fitzgibbon - who resigned from his role as chief government whip last week, said he believed superannuation for higher income earners needed to be looked at in the context of finding savings in the budget.

But he said he would ''not support'' any changes that adversely impacted ordinary people.

''I don’t mind us having a look at the very top end but I will not support, will not support, changes that affect ordinary people,'' Mr Fitzgibbon told the Breaking Politics program.

''For example, coal miners in my electorate earning, you know, 100, 120, 130, $140,000 a year are not wealthy – that’s the sort of money you need these days with property prices etc as they are.

''In Sydney’s west you can be on a quarter of a million dollars family income a year and you’re still struggling, particularly given property prices again.''

The comments come as Finance Minister Penny Wong this morning attempted to brush off speculation superannuation would face the budget razor on May 14 in line with Treasury’s stance raiding funds would help sustain the tax revenue base as the population ages.

Senator Penny Wong has brushed off speculation higher income earners would have their superannuation contributions and earnings slugged.

Senator Wong called for calm over the issue and said Labor was the only party committed to ''building on superannuation''.

''I don’t get into hypotheticals and I don’t get into any gossip about what might and might not have been discussed in the Cabinet committee,'' Senator Wong told Sky News.

''What I would say to people is don’t believe everything you read. Budget speculation is always abounds at this time and I would say to people look at our record and look at support for superannuation.''

Liberal MP Jamie Briggs said Labor was ''desperate to find revenue to plug their ever increasing budget deficits''.

''It is a farce and it’s little wonder the Australian people are over this government,'' Mr Briggs told Sky News.

Treasury Secretary Martin Parkinson last year urged the government to cut superannuation tax concessions in the May 14 budget in order to secure its revenue base as the population ages.

''With the Commonwealth budget coming under increasing pressure over the next few decades, the fiscal sustainability of all policies, including superannuation, will demand greater public scrutiny,'' Dr Parkinson told an Association of Superannuation Funds of Australia conference.

On Tuesday Julia Gillard said while Labor would ''safeguard superannuation'', revenue also needed to be sustainable.

''We've always got to make sure that the system is sustainable and is meeting the nation's needs and the needs of individuals,'' she said.

The stoush over superannuation comes as News Limited revealed today that government debt levels were forecast to blow out by 80 per cent to $165 billion, equal to $14,000 for every Australian.

Analysis of Budget documents revealed that between the 2010 election and Federal Treasury's update in October last year, the 2012-13 net debt estimate rose $54 billion to $144 billion.

View the original article here

Manu finds the right ingredients

The My Kitchen Rules star has grown up and turned his personal life around after reaching 40. Picture: Nigel Lough Source: National Features

BEHIND Manu Feildel's boyish grin is a man that has grown up. The My Kitchen Rules judge has turned 40 and his priorities have changed.

Feildel has traded the single life for a steady relationship with Perth jewellery designer Clarissa Weerasena.

The Frenchman has dumped his free-wheeling motor scooter and is finally learning to drive a car.

Feildel is relishing life with his nine-year-old son, Jonti, and been lucky enough to share his good fortune with his mother Evelyne.

He has seen his Channel 7 cooking show grow up too.

In four seasons, My Kitchen Rules has gone from being a solid ratings success to a TV phenomenon. This year it has been averaging upwards of two million viewers per episode.

"I started work when I was 15 shaping a job that I was very dedicated to," Feildel says.

"My son was born when I was 31. Then I had the possibility of doing a bit of TV. My Kitchen Rules has become a big success. You try to find love as well."I am settled in every way in my life now. All the stars have aligned. I think I've got everything I could want at the moment."

A while ago it looked as if things could have gone in a different direction.

Last July Feildel made headlines during a trip to Perth for the Good Food and Wine Show. He partied hard at the Malt Supper Club and was seen lying on the floor striking an unflattering pose alongside MasterChef judge George Calombaris.

The next day at the show, Feildel dropped utensils and repeatedly complained of a "bad hangover" because of a "big night".

Feildel also had a nasty scare when he clipped a car on his scooter. That was a big wake-up call.

"It is so easy to lose your life on two wheels," Feildel says. "When you're going to crash, your life flashes before your eyes and the first person that came to me was Jonti.

"The bike is in the garage and I'll never look at it again. I've always wanted to have a car but it got harder as I got older and busier to take driving lessons.

"I suddenly had to thump my fist on the table and say 'I need to get a car'. It is about the responsibilities that I have got in my life my work, my son."

A hiccup came in January when Feildel was busted driving through Sydney's eastern suburbs on a learner's permit with no L-plates or a supervising driver. He was fined $762.

Two years ago love was on the backburner for Feildel. Instead, he was driven to succeed professionally.

In 1991 the then 17-year-old arrived in London from France with no friends, no money and no English.

He spent eight years in the UK, working his way from the bottom to head chef at the prestigious Livebait seafood restaurant.

In 1999 he came to Australia for more slog Toofeys in Melbourne followed by Sydney's Hugo's, Restaurant VII, Bilsons and then his own restaurant, L'etoile.

There was a personal cost for all that grind. His 12-year relationship with Jonti's mother ended in October 2009.

"I used to be a frustrated guy who would come home from working so hard going, 'When am I going to get the rewards?' " Feildel told me in 2011.

One of Feildel's greatest satisfactions is that his mother, who recently spent a month in Sydney with the star, has been able to see those rewards delivered in spades.

"She is obviously very proud," Feildel says. "For me, it (success) is repaying the way I was brought up. My dad left when I was four pretty much disappeared.

"She had to bring up two kids by herself from the age of 22 and I think she has done a great job. The only way she could bring us up was to work hard. Now she is realising that all the trouble she went through all the tears and sweat have paid off."

Life is settled. So are there any big dreams for the future?

"I never stop dreaming," Feildel says with a laugh. "There is a lot of things I want to do. I want to continue my career as a restaurateur and chef I'll always have a foot in that business.

"TV is something I really enjoy. I think my biggest dream would be to travel around the world with food (a TV food show). Then I wouldn't mind putting a few kilos on!"

My Kitchen Rules, Channel 7, Monday to Wednesday, 7.30pm

View the original article here

Nest eggs facing $80,000 cut

The PM has left open the possibility the govt will raid wealthy people's superannuation tax concessions.

Andrew Main asks Clime Investment Management’s John Abernethy how superannuation will go and what the Australian dollar will do in 2013.

Penny Wong has refused to comment on 'gossip' about the government's budget plans for superannuation.

Christmas is a good time to take a look at your nest egg Source: Supplied

HIGH income earners could have their retirement nest eggs slashed by $80,000 as a result of tax hikes being considered by the Gillard Government to buttress the budget bottom line.

Exclusive modelling by the National Centre for Social and Economic Modelling for News Limited reveals a 50 year old earning $180,000 today, and with a typical nest egg for that age and income of $250,000, could expect to watch it grow to $914,000 by aged 67 under current arrangements, assuming they made no additional contributions beyond the compulsory rate.

This would be reduced to $835,000  or $79,000 less - if Labor were to increase the tax rate on super contributions to 30 cents in the dollar, up from 15 cents currently, for people earning above $180,000.

The Gillard Government has already increased the tax rate on super contributions to 30 cents for people earning over $300,000.

There is speculation Labor will extend this measure in the May budget as a key budget savings measure.Prime Minister, Julia Gillard, yesterday failed to rule out a raid on the super of high income earners to boost the tax revenue base as the population ages.

Asked directly if the contributions and earnings of the superannuation funds of high-income earners would be used to pull the budget out of its debt hole, Ms Gillard yesterday would not give a clear answer.

"Any decisions we make will be about the long term interest of the superannuation system," Ms Gillard said yesterday.

"I can assure people superannuation is a Labor creature and we will always nurture it well."

Treasury Secretary Martin Parkinson last year urged the government to cut superannuation tax concessions in the May 14 budget in order to secure its revenue base as the population ages.

However, a key cabinet minister, Craig Emerson, yesterday indicated any tax grab would be directed at very high income earners.

The trade minister said Labor was "not interested in increasing taxation on the everyday working men and women of Australia."

However, "if there is any capacity for, at the very high end, in different areas . . . I'm not saying we could never even look at something like that".

A research fellow at NATSEM, Dr Marcia Keegan, said tax increases on the super of high income earners would be felt hardest by those nearing retirement who had planned to make additional voluntary contributions.

"For some households, an increase in the contributions tax may be the difference between full independence from the age pension at retirement and drawing a small part age pension.

"However, according to Dr Keegan, high income individuals would still have an incentive to salary sacrifice into super, as the 30 per cent tax rate would still be lower than their marginal tax rate of 45 per cent.

Furthermore: "The households affected by these increases are a small minority of high wealth households, and even with a higher contributions tax rate, most would still have enough for a comfortable retirement according to the Association of Superannuation Funds of Australia's standards."

Tony Abbott yesterday said the Coalition would absolutely not make any "adverse unexpected changes" to the superannuation system in his first term if elected as prime minister on September 14.

"I want to say to people that super is safe under the Coalition," he said.

But the Liberal party has previously confirmed it is their policy to reintroduce the 15 per cent tax on superannuation for 3.6 million Australians earning $37,000 and under.

View the original article here

Grant Denyer quits Sunrise

Here are some career highlights from Sunrise weatherman Grant Deyner as seen on Seven.

Morning weatherman Grant Denyer has decided to give up his weather presenting job to spend more time with his family. Courtesy Sunrise Network Seven

Grant Denyer with the team from Sunrise / Pic: Channel 7 Source: The Daily Telegraph

Grant Denyer salutes Sunrise audience for the last time. Source: Supplied

Grant Denyer with wife Chezzi at Flickerfest. Picture: Belinda Rowland Source: News Limited

• Sunrise star quits after 10 years
• Announcement made live on Sunrise
• Nine says it has no plans to use Denyer on AGT
• Grant Denyer: Naked and in fast cars

AFTER 10 years as Sunrise's resident rover, weatherman Grant Denyer has resigned on-air this morning.

Denyer, who has held the position on and off for the past 10 years, said he was leaving to spend more time with wife Cheryl and young daughter Sailor.

"It's the greatest job in the world, but ... now that Sailor is nearly two she probably needs to find out who her dad is," he said.

He made the announcement two years after returning to the role he had from 2004 to 2006.

He followed up the on-air bombshell with a Tweet.

Here are some career highlights from Sunrise weatherman Grant Deyner as seen on Seven.

The announcement comes following a spate of absences the 35-year-old has had from the show in recent months, which industry sources say is due to a chronic fatigue-type illness which has left him constantly exhausted and unable to cope with the early mornings and endless travel.

Last month the former V8 Supercar driver caused alarm after passing out on-air while crossing from a stunt plane.

After his on-air farewell Denyer was interviewed by Nova’s Fitzy and Wippa, and said he planned to continue working in TV. 

"I really like adventure television and doing things on broadcast television that haven’t been done before, so taking what I’ve been doing on Sunrise and taking it to that next level, whatever that level is," he said.

A Seven spokesperson would not confirm if the 35-year-old would remain with the network and told news.com.au that he "hasn't announced any future plans".

Denyer's manager Titus Day told news.com.au he would announce his next project in the coming weeks and would not be drawn on whether he would remain with Seven or not.

He added that his relationship with the network was "fantastic". 

2DayFM radio host Kyle Sandilands threw a cat amongst the pigeons this morning when he tweeted "@grantdenyer Can't wait to see you over at Channel 9 mate! K", suggesting the weatherman would be joining the shock jock on Australia’s Got Talent.
 
Nine picked up Australia's Got Talent in October last year after it was dropped by Seven due to poor ratings. A 2013 launch date for the series has not yet been announced.
 
But a 2DayFm producer said Sandilands was simply stirring trouble and there was no truth to the rumour.
 
"That was just Kyle having a little bit of fun," the producer said.
 
A Nine spokesperson also confirmed that the network had no plans to acquire Denyer to front the re-booted series.  "We're not having Grant on the show and we're not talking to him about it," the spokesperson said.

Sunrise weather presenter Grant Denyer passed out live on air as he took to the skies in a stunt plane while pulling 8G.

 Reaction to his resignation was swift.

It's expected Weekend Sunrise weatherman James Tobin, who has been filling in for Denyer on his days off, will take over the role until Seven announces a replacement.

 Insiders say the news was a long-time coming, with Denyer expressing his desire to quit breakfast TV and spend more time with his wife Cheryl and daughter Sailor more than a year ago.

"You get to see some of the great places of the country, (but) it is at breakneck speed and it can't be sustained," he said in November 2011.

"There has to be some normality pretty soon. I am not going to sacrifice my lifestyle just for a breakfast television show; it's not worth it."

Denyer's manager Titus Day and Sunrise executive producer Michael Pell have been called for comment.

View the original article here

Super 'smurfs' can blow up your life savings

THEY'RE called SMSFs - self-managed super funds - but Australia's foremost authority on superannuation prefers to call them smurfs.

And while the do-it-yourself retirement saving may soon rival the little blue gnomes for popularity, Jeremy Cooper warns there are risks involved - like the possibility of "blowing up" your life savings.

Mr Cooper, chair of the comprehensive 2010 Cooper Review of Australia's superannuation system, warned that SMSFs come with risks that did not exist with retail and industry funds overseen by the prudential regulator, APRA.

"You can blow yourself up. In theory, by reason of bad luck or fraud or other happenstance you can theoretically lose your entire investment savings and this is where the self in self-managed comes to the fore," Mr Cooper said at an Australian Securities and Investments Commission conference in Sydney.

"There's a big difference between a self-managed fund and an APRA-regulated fund in this respect.

"There's no special statutory safety net in the event of a fraud."

Self-managed superannuation funds (SMSFs) - or "smurfs" as Mr Cooper has dubbed them - are the fastest-growing sector in Australia's $1.4 trillion superannuation industry and consultants at Deloitte have estimated the total value of SMSFs will pass $500 billion this year.

Fund numbers are expected to hit one million.

Mr Cooper warned, however, that while SMSFs offer greater control and potentially lower costs, fund owners were ultimately responsible for their own performance.

"You win your own wins and you own your own losses," he said.

Mr Cooper said it was important to make those risks clear and those who were not comfortable with the risks could choose another option.

Another key point is that volatility is not well understood because of the broader superannuation industry focus on long-term performance.

"A loss of 10 per cent in year one and a gain of 10 per cent in year two doesn't put you back square," Mr Cooper said. "I think a lot of smurf investors are underestimating or undervaluing the harm that volatility does to their portfolios."

Mr Cooper warned that SMSF weak points, according to Tax Office data, were asset allocation, complexity and cashflows to retirees - though that last element is not restricted to self-managed superannuation.

View the original article here

Credit card or personal loan? How to choose

Personal loans are cheaper but credit cards are more flexible. Source: National Features

PLASTIC fantastic or personal loan - the debate over which is the best way to borrow has never been greater.

Credit cards are quick and easy to use but their popularity is waning. Personal loans are less flexible but often cheaper.

The best choice depends on what you plan to spend the money on and your personal discipline when it comes to making repayments.

And spend, we do. Australians currently have almost $100 billion debt stacked up on credit cards and personal loans.

"There are pros and cons to both credit cards and personal loans," RateCity spokeswoman Michelle Hutchison says.

"They can be useful ways of accessing money and they have different features that can suit different circumstances.

"For instance, credit cards are more of a line of credit-style account when you access money as you need it. While personal loans are often provided as one lump sum to pay for a particular purchase."

Both types of borrowing have a downside.

These may include penalties and fees, and they need to be handled with caution.

According to the Australian Prudential and Regulation Authority, at December 2012 personal loans totalled $58.6 billion and $40.8 billion was outstanding on credit cards.Hutchison says lenders are charging interest rates at an average of 13 per cent for personal loans and 17 per cent for credit cards.

> Count the cost

Credit union Community CPS Australia chief financial officer Wayne Matters says personal loans often have a lower interest rate than credit cards and their repayment schedule usually means the debt is eventually fully repaid.

"The key difference between credit cards and personal loans is that loans are cheaper in the long run and impose greater strictness, with repayments that will result in clearing the debt within the agreed time frame," Matters says.

"Temptation to keep spending is also limited as only a few loans offer redraw options.

"So for larger, one-off purchases such as furnishing a new home, minor home improvement or taking an overseas holiday, a personal loan can be a very effective option.

"In contrast, credit cards are a convenient form of credit that allow immediate spending.

"A decision to use credit cards should be based on whether you have the cash flow to repay the amount quickly and whether you are likely to keep spending and go further in to debt."

> Consolidating debt

CreditCardFinder.com.au publisher Jeremy Cabral says the best option when consolidating debts is to consider your repayment ability before making a decision between a personal loan or credit card.

"If you are looking to consolidate debt and you have a strict repayment plan that you will follow, it is possible to get a lower interest rate with a credit card balance transfer," he says.

"However, if you are looking for a 'set and forget' option for a large debt, that will take a number of years to repay, a personal loan is worth considering instead."

> Be disciplined

Anna Flower, district manager for ANZ's branch network, says people who opt for a credit card should try to pay more than their monthly minimum repayment or pay the balance in full each month to avoid fees and interest.

"Some personal loans allow you to make extra repayments to help you pay off your loan faster and save you interest," she says.

"But you need to be disciplined as you often have the ability to redraw your extra repayments, which can reduce the amount of interest you save in the long run.

"Always make regular repayments and consider setting up a direct debit."

> Type of purchase

The type of purchase is often the key to whether a credit card or personal loan will work best.

"The key factor is the amount of the purchase and whether or not you are going to be able to repay the amount within the introductory period on a credit card - the larger the purchase, the more sensible it is to consider a personal loan," Cabral says.

Credit cards are more convenient for retail purchases as they can be used immediately and over the counter. A personal loan facility has to be set up in advance.

However, for larger items, personal loans are often better.

View the original article here

Steve and Iris's living 'nightmare'

The Karamihos family celebrate their victory, and their birthdays, last night. Source: Supplied

• Bank tried to evict elderly couple
• 'Nightmare of adversity and misfortune'
• But there's good news for them...
  

AN ELDERLY couple with little English and health concerns are celebrating after a judge released them from a million-dollar loan which should never have been approved in the first place.

Steve and Iris Karamihos, both nearly 80, were threatened with eviction from their Sydney home after they could no longer afford to pay back a $1.2 million, 25-year loan approved by Bendigo and Adelaide Bank in 2007.

In a scathing judgment, NSW Supreme Court Judge Michael Pembroke ruled the loan, which was to be invested into their suburban cafe business, was "unjust" under national credit laws.

"The loan was a bridge too far, at too late a stage of their fast-fading lives," Justice Pembroke said. "Its unsuitability was compounded by the bank's incompetence."

The judge ruled they only had a "feeble" ability to read and would not have been able to understand the loan's complex legal documents.

The Greek couple migrated to Australia at a young age, did not go to high school, and had worked "long and hard" conducting their cafe business for decades.

Justice Pembroke said the bank had relied on an optimistic and unverified valuation of the couple's business property, which the couple were going to use as their "exit strategy".

The judge blasted the conduct of Bendigo and Adelaide Bank.

The judge described what the family went through after taking out the loan as a "nightmare of adversity, misfortune and travail."

The couple had taken out several loans in the past, and the judge said the Karamihos' decision to take out a new loan had been "marked by naivete and simple-mindedness".

The ruling said the couple should be restored to their previous position before the Bendigo and Adelaide Bank loan.

A spokeswoman for Bendigo and Adelaide Bank said: "The Bank will consider its options in this matter."

The couple celebrated staying in their home - and their birthdays, which are days apart - at home last night.

"We were facing ruin, now we can stay in our home," Mr Karamihos said. "Why didn't the bank do this from the start?"

The court case was brought about by Geoff Shannon, who runs the consumer rights group Unhappy Banking.

Mr Shannon said the case was another example of a shameless grab for cash by a bank at the cost of honest, everyday Australians.

"There is more and more of this type of practice coming to light, as banks test the regulators and the courts, to see how far they can push these unethical and brazen grabs for cash."

Continue the conversation on Twitter @newcomauhq  @drpiotrowski

View the original article here

Banking on video for the future

Video banking from home may still be five years away. Source: National Features

CONVERSING with banking experts through a computer screen is unfamiliar to many Australians and still has a few hurdles to overcome until customers feel at ease.

Sitting in a cubicle at your closest bank branch or popping into a similar facility within your workplace and having a face-to-face conversation through a desktop is expected to eventually become the norm.

ANZ's managing director of retail distribution, Mark Hand, says the bank already has video technology in 43 locations including regional and remote areas and it will be officially launched at a later date.

"We need to have more specialists available for our customers who walk through the door," he says. "With just minutes notice they need to be able to sit in an office in a private area and have a conversation with a specialist about their needs on the spot."

Hand admits there is some legwork to be done around security to ensure customers feel at ease using video banking."There's no doubt customers rate security highly when they choose a bank," he says. "That's part of the work we're doing to understand how secure something like a Skype is."

Hand says the number of customers using video banking has gone up 10 per cent from a year ago, and says customers are using it for mortgage inquiries.

Strategic business relations company RFi's director, Alan Shields, says for video banking to be successful, it needs to be the best service available in a particular area.

"It will work better where there isn't an alternative such as a financial planner down the road," he says.

The Commonwealth Bank's executive general manager of retail sales, Lyn McGrath, says video banking is available in about 250 branches now and will be in all the banks' 1027 branches by the end of the year.

"Customers say to us they get blown away and feel as though they are having a face to face with a specialist," she says."The customers can visually see the documentation as it's getting completed and they verify that it's correct and we can remotely print all the documentation out ... and get the customer to sign it."

She says it could be another five years until customers will be able to do video banking from home.

View the original article here

Super 'smurfs' can blow up your life savings

THEY'RE called SMSFs - self-managed super funds - but Australia's foremost authority on superannuation prefers to call them smurfs.

And while the do-it-yourself retirement saving may soon rival the little blue gnomes for popularity, Jeremy Cooper warns there are risks involved - like the possibility of "blowing up" your life savings.

Mr Cooper, chair of the comprehensive 2010 Cooper Review of Australia's superannuation system, warned that SMSFs come with risks that did not exist with retail and industry funds overseen by the prudential regulator, APRA.

"You can blow yourself up. In theory, by reason of bad luck or fraud or other happenstance you can theoretically lose your entire investment savings and this is where the self in self-managed comes to the fore," Mr Cooper said at an Australian Securities and Investments Commission conference in Sydney.

"There's a big difference between a self-managed fund and an APRA-regulated fund in this respect.

"There's no special statutory safety net in the event of a fraud."

Self-managed superannuation funds (SMSFs) - or "smurfs" as Mr Cooper has dubbed them - are the fastest-growing sector in Australia's $1.4 trillion superannuation industry and consultants at Deloitte have estimated the total value of SMSFs will pass $500 billion this year.

Fund numbers are expected to hit one million.

Mr Cooper warned, however, that while SMSFs offer greater control and potentially lower costs, fund owners were ultimately responsible for their own performance.

"You win your own wins and you own your own losses," he said.

Mr Cooper said it was important to make those risks clear and those who were not comfortable with the risks could choose another option.

Another key point is that volatility is not well understood because of the broader superannuation industry focus on long-term performance.

"A loss of 10 per cent in year one and a gain of 10 per cent in year two doesn't put you back square," Mr Cooper said. "I think a lot of smurf investors are underestimating or undervaluing the harm that volatility does to their portfolios."

Mr Cooper warned that SMSF weak points, according to Tax Office data, were asset allocation, complexity and cashflows to retirees - though that last element is not restricted to self-managed superannuation.

View the original article here

Banking on video for the future

Video banking from home may still be five years away. Source: National Features

CONVERSING with banking experts through a computer screen is unfamiliar to many Australians and still has a few hurdles to overcome until customers feel at ease.

Sitting in a cubicle at your closest bank branch or popping into a similar facility within your workplace and having a face-to-face conversation through a desktop is expected to eventually become the norm.

ANZ's managing director of retail distribution, Mark Hand, says the bank already has video technology in 43 locations including regional and remote areas and it will be officially launched at a later date.

"We need to have more specialists available for our customers who walk through the door," he says. "With just minutes notice they need to be able to sit in an office in a private area and have a conversation with a specialist about their needs on the spot."

Hand admits there is some legwork to be done around security to ensure customers feel at ease using video banking."There's no doubt customers rate security highly when they choose a bank," he says. "That's part of the work we're doing to understand how secure something like a Skype is."

Hand says the number of customers using video banking has gone up 10 per cent from a year ago, and says customers are using it for mortgage inquiries.

Strategic business relations company RFi's director, Alan Shields, says for video banking to be successful, it needs to be the best service available in a particular area.

"It will work better where there isn't an alternative such as a financial planner down the road," he says.

The Commonwealth Bank's executive general manager of retail sales, Lyn McGrath, says video banking is available in about 250 branches now and will be in all the banks' 1027 branches by the end of the year.

"Customers say to us they get blown away and feel as though they are having a face to face with a specialist," she says."The customers can visually see the documentation as it's getting completed and they verify that it's correct and we can remotely print all the documentation out ... and get the customer to sign it."

She says it could be another five years until customers will be able to do video banking from home.

View the original article here

Five stars who sprang from reality

Before she was a motion picture star singer/actress Jennifer Hudson was a contestant on Americal Idol. Source: Supplied

COMPETING on a reality TV show can be the path to fame and fortune, as Summer Bay?s newest resident Johnny Ruffo discovered.

Here are five others who transformed their 15 minutes of reality show fame into a proper career.

DEAN GEYER
Geyer sprang to fame as the third place getter on Australian Idol in 2006 (aka the year Damian Leith won). After his album, Rush, bombed, the committed Christian landed a gig on Neighbours in 2008. Stretching his acting wings, he played a musician and sang a lot. His first major international role was on the short-lived Australian-made sci-fi show Terra Nova and he currently stars in Glee as Brody Weston.

JESSICA MAUBOY
The delightful Ms Mauboy was also pipped at the post by Damian Leith on Australian Idol in 2006, but has gone on to be one of the reality show’s most successful alumni. Two of her albums went Gold and a third went Double Platinum and Mauboy proved herself to be a top notch actor in the hit movies Bran Nue Dae and The Sapphires.

EMMA STONE
Long before Superbad and Zombieland, Emma Stone’s first taste of fame was on reality TV show In Search of a New Partridge Family – where the “prize” for winning a TV show was a role on a TV show (which never made it past the pilot). Stone won the Susan Dey role in The New Partridge Family. “My Mom saw a commercial on TV for it and said, ‘You look like Susan Dey a little, and just dyed your hair brown … Why don’t you give this a shot? I have a weird feeling.’ I did it and ended up winning. I don’t regret it for a minute.”

JENNIFER HUDSON
There aren’t too many former reality show competitors with Oscars, but Jennifer Hudson picked up Best Supporting Actress for Dreamgirls just two years after she made it through to the finals of the third season of American Idol. Hudson also won a Grammy Award for her debut album which sold more than a million copies. Her film career has never again reached such lofty heights (exhibit A: she was in The Three Stooges) but she recently had a recurring role on TV show Smash.

BLAIR MCDONOUGH
Big Brother contestants tend to disappear quickly back into obscurity, but Blair McDonough, runner-up in season one of Big Brother Australia, has had a long and successful career. He was cast as Stuart Parker in Neighbours just months after the reality show ended - and even dated Delta Goodrem for a bit - and has since appeared in Heartbeat, Sea Patrol and Dancing with the Stars. McDonough also had a starring role as Matt O'Connor in Winners and Losers, until his character was killed in a gas explosion in the season two finale.

View the original article here

What Labor need to give up for Lent

EASTER is about crisp nights in front of an open campfire, roasting marshmallows before dirt-streaked happy little faces are tucked into sleeping bags.

It's about Easter-egg hunts and hot cross buns. It's a holy time for churchgoers, and for others simply a blessed relief from work.

But at its core, on the Christian calendar, it's a time of resurrection - of new life.

And as Prime Minister Julia Gillard's team emerges from its rotten and broken egg they need to think about Labor's new beginnings.

Ms Gillard may not have been nailed to the cross but Labor has been crucified.

As the newly emboldened Prime Minister gathers her freshly chosen team for a community cabinet tomorrow in Perth she will need to make significant changes.

What could she possibly do? How might a team of "last-picks'' improve Labor's chances? Even without a Judas in their ranks it will be tough.

Too much analysis is not necessarily good. Forget introspection and think tanks and committees and advice from foreign "experts''.

Just stop and chat to the real people on the streets and they will tell her the answer.

At school pick-up time, at the bus stop, at the community event or pub, at the ALP haunt or the sports match, the answers are remarkably similar.

Here's what Ms Gillard's team needs to give up for what's left of Lent and onwards to election day:
1) Stabbing each other in the back.
2) Class warfare.
3) Burning business (Perth is a good place to start).
4) Attacks on superannuation.
5) Changes to parenting payments for low income earners.

For a leader so disliked for so long it is telling that Julia Gillard was more likeable than ever the day the knives were pointed in her direction.

When she stood up in parliament on Thursday with an unwavering voice and steely determination, we saw, once again, a leader with strength.

But it's not enough to be at your best only when under attack, and when you are fighting for yourself, rather than for the country.

Switch off talkback radio for a moment and Ms Gillard is not hated with as much intensity as you'd expect. But there is despair over her failures. And there is despair over her shambolic divided team.

With Kevin Rudd sidelined and fewer distractions there is a real chance for the Prime Minister to take a leaf out of her own book and "take your best shot''. It may not be enough to win the next election, but just possibly to go out in a blaze of glory.

What do we want from Ms Gillard? To see her strength. For her to trust her instincts. To sell her achievements better. To speak from her heart, not from a script. She never really showed us the real Julia. What does she have to lose now?

Oh, but there's advice in spades for Opposition Leader Tony Abbott, too. Mr Abbott has an opportunity here to be a stark point of difference. He needs to rein in any temptation to jeer or over-play the moment. Fourth base is so close and the other team are scrambling for the ball. He needs to play it safe and strong.

Aside from calls for Malcolm Turnbull to step up to the plate, this is what people want from the Coalition:
1) Dignity and decency.
2) Respectful debate during question time.
3) Policies.

Politics going forward may have less intrigue and less theatre, but it's about time the dull business of governing took centre stage.

No one will miss the blood-letting as they toast marshmallows around the campfire this weekend.
 

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PM makes no promises on your super

One of the key agitators in Labor's leadership fiasco said he won't vote for raids on superannuation.

• PM will not commit to leaving super untouched
• Liberals say Labor ''desperate to find revenue'' 
• PM to leave Aussies in loads of debt 
• No-confidence motion 'progress' - Pyne 

JULIA Gillard has failed to rule out if Labor will raid superannuation funds in the May budget, saying any decisions made for the sector will be in Australia's long term interest.

It comes after Tony Abbott declared the Coalition will make ''no adverse unexpected changes'' to superannuation in its first term of government.

Asked directly if superannuation funds would be used to supplement the tax revenue base, Ms Gillard would not give a clear answer.

''Any decisions we make will be about the long term interest of the superannuation system,'' Ms Gillard told ABC radio.

''When we think about superannuation we think about what is in the interest of decent working people … and what is in the interest of the long term sustainability of the system.''

She said superannuation had been brought in by Labor and it would always be a ''Labor creature''.

''I can assure people superannuation is a Labor creature and we will always nurture it well,'' Ms Gillard said. 
 

Julia Gillard cannot make a commitment to leaving our superannuation untouched. Picture: Colin Murty

Earlier today, Mr Abbott said there had been ''far too much fiddling'' with superannuation from Labor and if elected as Prime Minister on September 14 he would put a stop to it.

''There have been at least five significant changes to superannuation from this government,'' Mr Abbott said.

''I want to say to people that super is safe under the Coalition.

''We will make no adverse unexpected changes to superannuation in our first term.''

The Liberal party has previously confirmed it is their policy to reintroduce the 15 per cent tax on superannuation for 3.6 million Australians earning $37,000 and under, which was cut by Labor.

It could mean a tax slug of up to $500 per year for one in three Australian workers under an Abbott government.
 

Tony Abbott, visiting BAE Systems Australia in Melbourne today, has vowed to leave our super untouched. Picture: Ian Currie

Meanwhile Kevin Rudd backer Joel Fitzgibbon - who resigned from his role as chief government whip last week, said he believed superannuation for higher income earners needed to be looked at in the context of finding savings in the budget.

But he said he would ''not support'' any changes that adversely impacted ordinary people.

''I don’t mind us having a look at the very top end but I will not support, will not support, changes that affect ordinary people,'' Mr Fitzgibbon told the Breaking Politics program.

''For example, coal miners in my electorate earning, you know, 100, 120, 130, $140,000 a year are not wealthy – that’s the sort of money you need these days with property prices etc as they are.

''In Sydney’s west you can be on a quarter of a million dollars family income a year and you’re still struggling, particularly given property prices again.''

The comments come as Finance Minister Penny Wong this morning attempted to brush off speculation superannuation would face the budget razor on May 14 in line with Treasury’s stance raiding funds would help sustain the tax revenue base as the population ages.

Senator Penny Wong has brushed off speculation higher income earners would have their superannuation contributions and earnings slugged.

Senator Wong called for calm over the issue and said Labor was the only party committed to ''building on superannuation''.

''I don’t get into hypotheticals and I don’t get into any gossip about what might and might not have been discussed in the Cabinet committee,'' Senator Wong told Sky News.

''What I would say to people is don’t believe everything you read. Budget speculation is always abounds at this time and I would say to people look at our record and look at support for superannuation.''

Liberal MP Jamie Briggs said Labor was ''desperate to find revenue to plug their ever increasing budget deficits''.

''It is a farce and it’s little wonder the Australian people are over this government,'' Mr Briggs told Sky News.

Treasury Secretary Martin Parkinson last year urged the government to cut superannuation tax concessions in the May 14 budget in order to secure its revenue base as the population ages.

''With the Commonwealth budget coming under increasing pressure over the next few decades, the fiscal sustainability of all policies, including superannuation, will demand greater public scrutiny,'' Dr Parkinson told an Association of Superannuation Funds of Australia conference.

On Tuesday Julia Gillard said while Labor would ''safeguard superannuation'', revenue also needed to be sustainable.

''We've always got to make sure that the system is sustainable and is meeting the nation's needs and the needs of individuals,'' she said.

The stoush over superannuation comes as News Limited revealed today that government debt levels were forecast to blow out by 80 per cent to $165 billion, equal to $14,000 for every Australian.

Analysis of Budget documents revealed that between the 2010 election and Federal Treasury's update in October last year, the 2012-13 net debt estimate rose $54 billion to $144 billion.

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