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Holiday budgeting tips for over-60s: Expert advice for a stress-free season

<div> The festive season is a time for joy, but it can sometimes also bring a little extra financial stress. With the rising cost of essentials, many Aussies in retirement might be feeling the pinch. And it’s not your imagination – recent <a title="https://protect.checkpoint.com/v2/___https:/nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.superannuation.asn.au%2Fmedia-release%2Frising-insurance-premiums-add-strain-to-retirees-finances-says-super-peak-body%2F*23%3A~%3Atext%3DThe%2520latest%2520figures%2520from%2520ASFA%2Cover%2520the%2520last%252012%2520months.&data=05%7C02%7Cdardisa%40we-worldwide.com%7C3306a1dfb9de4e30dd3b08dcfecff5e5%7C3ed60ab455674971a5341a5f0f7cc7f5%7C0%7C0%7C638665416381860501%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=3ePPI8b1SEXOATgcY6vYWJRi8gBzZHv0jM1dgqkIoUI%3D&reserved=0___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6YjM1NDo4YTdiNGQ5MTcwZjBhYzgwNzI4ZDVmYTlhNTA0OWVhYThkZTU0NWJhN2FhZDgzZGQ2MGQ1ZjZiYWU5MTc3MGI1OnA6VDpG" href="https://protect.checkpoint.com/v2/___https:/nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.superannuation.asn.au%2Fmedia-release%2Frising-insurance-premiums-add-strain-to-retirees-finances-says-super-peak-body%2F*23%3A~%3Atext%3DThe%2520latest%2520figures%2520from%2520ASFA%2Cover%2520the%2520last%252012%2520months.&data=05%7C02%7Cdardisa%40we-worldwide.com%7C3306a1dfb9de4e30dd3b08dcfecff5e5%7C3ed60ab455674971a5341a5f0f7cc7f5%7C0%7C0%7C638665416381860501%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=3ePPI8b1SEXOATgcY6vYWJRi8gBzZHv0jM1dgqkIoUI%3D&reserved=0___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6YjM1NDo4YTdiNGQ5MTcwZjBhYzgwNzI4ZDVmYTlhNTA0OWVhYThkZTU0NWJhN2FhZDgzZGQ2MGQ1ZjZiYWU5MTc3MGI1OnA6VDpG" data-auth="Verified" data-outlook-id="1a0a0a08-2e36-4601-a0a3-f9c8bb379afe">data</a> from the Association of Superannuation Funds of Australia (ASFA) reveals that the cost of maintaining a comfortable retirement has increased by 3.7% in the last year. For those in retirement, managing holiday spending can help ensure a stress-free festive season. </div> <div> Toby Perkins, a Certified Financial Planner® at industry superfund NGS Super, shares his helpful tips to ensure retirees manage their budgets during the holidays. </div> 1. Avoid personal debt <div> Credit cards and overdrafts may seem like quick solutions, but they often lead to high-interest debt. "If you need extra funds for the festive season, it might be worth considering options like your superannuation income stream instead," advises Toby. Avoiding extra debt may help you to maintain your financial stability in the long run and help set you up for a stress-free Christmas next year. </div> 2. Plan ahead: Budget for the entire year <div> Although it may be too late to adjust your budget for this holiday season, now is a good time to start planning for next Christmas. "Incorporating holiday spending into an annual budget can prevent financial strain in December," Toby suggests. By tracking your expenses throughout the year, you can identify potential savings and plan for any extra costs, such as gifts and travel. </div> 3. Review government entitlements <div> It’s important for you to ensure you are receiving the correct government entitlements. "If you’re receiving the Age Pension, make sure all your details are up to date," Toby advises. Even if you're not eligible for the Age Pension, you may qualify for the Commonwealth Seniors Health Card or state-based Seniors Cards, which can help reduce costs on health care, transport, and other services. For more information, visit <a title="https://protect.checkpoint.com/v2/___https:/www.servicesaustralia.gov.au/most-useful-information-for-retirement-years___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6Y2YwMTo3YWJkZWYyYTY5NjAwZTQ5YjczNWQwMGY2ZjZmN2RhNzY5MzJjYWJkMmYyNWM5ZTkzODg4NTJlZDc3MmIwZGI1OnA6VDpG" href="https://protect.checkpoint.com/v2/___https:/www.servicesaustralia.gov.au/most-useful-information-for-retirement-years___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6Y2YwMTo3YWJkZWYyYTY5NjAwZTQ5YjczNWQwMGY2ZjZmN2RhNzY5MzJjYWJkMmYyNWM5ZTkzODg4NTJlZDc3MmIwZGI1OnA6VDpG" data-auth="Verified" data-outlook-id="0b03c4dc-e32a-4f0f-adaf-6d20058cd703">the Services Australia website.</a> </div> 4. Stay vigilant about financial security <div> There are two reasons to closely track your spending throughout the holiday season: 1. To ensure you stay within budget, and 2. To ensure you don't fall victim to financial scams. The holiday season can be a prime time for financial scams, so be cautious when making purchases online. </div> 5. Prepare for post-holiday financial health <div> After the holidays, plan to set aside some money for future expenses or to replenish your savings. A bit of post-holiday planning will help you avoid financial stress in the months ahead - and even get you set up for next Christmas. </div> 6. Travel smart: Plan off-peak <div> Travel can be one of the biggest holiday expenses, especially if it coincides with peak Christmas and school holiday periods. Toby recommends traveling outside of these busy times to save money. "Off-peak travel can significantly reduce costs and make your holiday dollar stretch further," he says. Consider planning trips in advance to secure better deals. </div> <div> Planning ahead, managing debt, and reviewing entitlements can help you enjoy the festive season without financial stress. As Toby puts it, "Smart budgeting today helps ensure a more comfortable retirement tomorrow." </div> <div> For those seeking personalised advice, NGS Super’s team of financial planners is here to help guide you to a secure and joyful future. Read the <a title="https://protect.checkpoint.com/v2/r01/___https://protect.checkpoint.com/v2/___https:/www.ngssuper.com.au/files/documents/financial-services-guide.pdf___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6MDk5ZToxNWJlNDQ0ODUwMWZmYzczYmUzZDY5N2NkNWFmY2M4ZTM0M2I5ZDQyNTI5ZGIwNjdjMDUxZDViY2E1YWRmYWFhOnA6VDpGHYPERLINK___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmM0OTdjMzdkZjcxOGIxNDQxYjdiMzQxMzA0NTcyMzc4Ojc6ZDgzMDowMTA3N2IxNTZmN2JhZDAzOTM5MDc4ODZjM2Y4NTUzYTkwNWE4ZDAxYmJhMmIxMTc0OWZjNjhmNmM5ODNlNzYyOmg6VDpG" href="https://protect.checkpoint.com/v2/r01/___https://protect.checkpoint.com/v2/___https:/www.ngssuper.com.au/files/documents/financial-services-guide.pdf___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6MDk5ZToxNWJlNDQ0ODUwMWZmYzczYmUzZDY5N2NkNWFmY2M4ZTM0M2I5ZDQyNTI5ZGIwNjdjMDUxZDViY2E1YWRmYWFhOnA6VDpGHYPERLINK___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmM0OTdjMzdkZjcxOGIxNDQxYjdiMzQxMzA0NTcyMzc4Ojc6ZDgzMDowMTA3N2IxNTZmN2JhZDAzOTM5MDc4ODZjM2Y4NTUzYTkwNWE4ZDAxYmJhMmIxMTc0OWZjNjhmNmM5ODNlNzYyOmg6VDpG" data-auth="Verified" data-outlook-id="c4bb4623-ec0a-4e3a-a747-7bf0d2f5659b">NGS Financial Planning Financial Services Guide</a>. </div> <div> For further information, visit NGS Super’s <a title="https://protect.checkpoint.com/v2/___https:/www.ngssuper.com.au/articles/news/whats-foro-what-can-you-do-about-it___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6YzlhNDphZGM4Y2Q1YTFlZmQyNjExMGQ4ZDJmYWM3Y2IyOWMxM2FiNjE2MDMwMDc3YjA5ODE5OTY0NjQyYmZkNWE2NGM1OnA6VDpG" href="https://protect.checkpoint.com/v2/___https:/www.ngssuper.com.au/articles/news/whats-foro-what-can-you-do-about-it___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6YzlhNDphZGM4Y2Q1YTFlZmQyNjExMGQ4ZDJmYWM3Y2IyOWMxM2FiNjE2MDMwMDc3YjA5ODE5OTY0NjQyYmZkNWE2NGM1OnA6VDpG" data-auth="Verified" data-outlook-id="7c65864b-3f33-43bc-9037-cc1e7ca1acc0">website</a>. </div> <div> Toby Perkins is authorised to provide financial advice in Australia and is an Authorised Representative (Number 1002908) of Guideway Financial Services Pty Ltd, AFSL Number 420367. Any advice given in this article is general and does not consider your financial situation, needs or objectives so consider whether it is appropriate for you. Be sure to read the relevant PDS and TMD before deciding whether a financial product is right for you. Image credits: Shutterstock </div>

Travel Tips

Borrowing money isn’t always a bad thing – debt can be a sensible way to build wealth

<a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Debt, in some form or another, is part of our financial profiles whether we like it or not. And it can be a useful way to build wealth if it is managed carefully and wisely. For example, you may borrow money from the bank to buy an asset – a resource of economic value that generates income from its productive use. Investment property is an example. So investing in an income-producing property can be a good idea. If you are already in the property market, the home equity you’ve accumulated – the share of the property value that’s yours – can help you buy a second property. This time, you may not need a deposit as big as the initial investment. In the event that the rental market is booming and your tenants pay you more than what you repay on the loan, municipal rates and property manager fees, then the wealth-building machine will start to run itself. But debt makes many people uncomfortable. In South Africa, a person earning R20,000 a month commits on average <a href="https://businesstech.co.za/news/finance/585372/south-africas-middle-class-is-in-serious-trouble-right-now/">63% of their salary to repaying unsecured debt</a> – such as credit cards, personal loans, overdrafts or “buy now, pay later” facilities. As a general guideline, it’s suggested that <a href="https://www.investopedia.com/terms/d/dti.asp">no more than 40%</a> of your income should be used to service debt. Financial anxiety has its roots in some misconceptions. The main one is that all debt is bad. This isn’t true. Prudent borrowing to buy an asset can help build wealth in the medium to long term. So fears about debt need to be weighed against a broader understanding of wealth accumulation. Well-managed debt can play a role in that process. Here are the four biggest misconceptions about debt. Recognising them will help you develop a more nuanced approach to debt. <h2>The misconceptions</h2> All debt is bad debt. Indeed, debt is a problem when you can no longer manage it and it starts to manage you. One of the simplest ways to tell whether debt is working for you or against you is through “leveraging”. This refers to the use of debt to acquire an asset that is worth more than the value of the debt. It’s also known as positive or favourable leveraging. People who take out unsecured loans are leveraging unfavourably when the debt is driven by consumption. Often there’s nothing to show for what you’ve spent. Unsecured loans also tend to charge higher interest rates to compensate for the lack of collateral. Only financially reckless people are in debt. This is the next misconception. Second to unsecured loans, most South African consumer debt portfolios are taken up by <a href="https://businesstech.co.za/news/wealth/617685/these-income-levels-in-south-africa-owe-the-most-debt/">home loans</a>. The most realistic way to gain entry into the housing market is through a mortgage. You’re doing the right thing if your mortgage is paid off within a reasonable time. This will mean that, in the long term, the value of the property will surpass the home loan amount that was taken out to buy the property in the first place. But there are two misconceptions related specifically to mortgages. After you’ve paid the mortgage deposit, you won’t have other fees to pay. This isn’t correct. Banks charge a fee to open and close a home loan account. There can also be a penalty when a home loan is repaid prematurely. So be sure to read the fine print about discharge fees or closing costs. If you stick to the repayment amount for your mortgage, you’ll be able to repay the loan quickly. This isn’t true – even if interest rates fall and your mortgage repayments decline, your home loan is most likely tied to a loan term of 20 to 30 years. Many banks will quote a monthly mortgage repayment amount that seems affordable at face value but is in fact based on a 20-year term period. Banks are businesses and it works in their favour if you take longer to repay your mortgage because that translates into more interest repayments. The longer the duration of the home loan, the more interest you pay, the more profit they make. If it takes over 20 years to repay a bond, it’s often the case that the value of the interest repayments exceeds the initial loan amount. Home loan calculators are a useful tool that can help you assess how much you could afford to repay on a home loan depending on the deposit saved, if interest rates change and how long it will take you to repay the mortgage with topped-up contributions. It is essential to have a goal for when you’d like to finish paying off your mortgage and a plan in place to achieve this goal. If you don’t do this you could become a mortgage prisoner. <h2>Keeping your eye on the prize</h2> As we’re about to conclude the year and enter the festive season, it’s a good time to remember your financial goals and not let your guard down by unconsciously swiping or tapping that credit card. “Janu-worry” is around the corner, and so is the financial anxiety that comes with it. But it need not be the case. Debt can either be the cure or the cause of your financial position. Reconsider spending patterns that prompt you to use your credit card. Too much debt over short periods is an irregular spending pattern that is a warning sign. There’s no harm in buying what you can afford or staying in your financial lane if the alternative forces you to sacrifice your hard-earned income on servicing consumption-driven debt. For better or worse, debt is a part of our financial portfolios. But the road to financial empowerment is not always easy – financial planning can help you keep your eye on the prize.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/192630/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, Assistant Professor in Finance and Financial Planning, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/borrowing-money-isnt-always-a-bad-thing-debt-can-be-a-sensible-way-to-build-wealth-192630">original article</a>.

Money & Banking

The Princess of Wales wants to stay cancer-free. What does this mean?

<a href="https://theconversation.com/profiles/amali-cooray-1482458">Amali Cooray</a>, <a href="https://theconversation.com/institutions/wehi-walter-and-eliza-hall-institute-of-medical-research-822">WEHI (Walter and Eliza Hall Institute of Medical Research) </a>; <a href="https://theconversation.com/profiles/john-eddie-la-marca-1503690">John (Eddie) La Marca</a>, <a href="https://theconversation.com/institutions/wehi-walter-and-eliza-hall-institute-of-medical-research-822">WEHI (Walter and Eliza Hall Institute of Medical Research) </a>, and <a href="https://theconversation.com/profiles/sarah-diepstraten-1495268">Sarah Diepstraten</a>, <a href="https://theconversation.com/institutions/wehi-walter-and-eliza-hall-institute-of-medical-research-822">WEHI (Walter and Eliza Hall Institute of Medical Research)</a> Catherine, Princess of Wales, <a href="https://www.theguardian.com/uk-news/article/2024/sep/09/princess-of-wales-cancer-free-after-completing-chemotherapy">has announced</a> she has now completed a course of preventive chemotherapy. The news comes nine months after the princess first <a href="https://www.bbc.com/news/uk-68641441">revealed</a> she was being treated for an unspecified form of cancer. In the new <a href="https://www.youtube.com/watch?v=QSrDEq8QFkc">video message</a> released by Kensington Palace, Princess Catherine says she’s focused on doing what she can to stay “cancer-free”. She acknowledges her cancer journey is not over and the “path to recovery and healing is long”. While we don’t know the details of the princess’s cancer or treatment, it raises some questions about how we declare someone fully clear of the disease. So what does being – and staying – “cancer-free” mean? <h2>What’s the difference between being cancer-free and in remission?</h2> Medically, “cancer-free” <a href="https://www.mdanderson.org/cancerwise/remission--cancer-free--no-evidence-of-disease--what-is-the-difference-when-talking-about-cancer-treatment-effectiveness-and-results.h00-159460845.html">means</a> two things. First, it means no cancer cells are able to be detected in a patient’s body using the available testing methods. Second, there is no cancer left in the patient. These might sound basically the same. But this second aspect of “cancer-free” can be complicated, as it’s essentially impossible to be sure no cancer cells have survived a treatment. It only takes a few surviving cells for the cancer to <a href="https://theconversation.com/how-does-cancer-spread-to-other-parts-of-the-body-219616">grow back</a>. But these cells may not be detectable via testing, and can lie dormant for some time. The possibility of some cells still surviving means it is more accurate to say a patient is “in remission”, rather than “cancer-free”. Remission means there is no detectable cancer left. Once a patient has been in remission for a certain period of time, they are often considered to be fully “cancer-free”. Princess Catherine was not necessarily speaking in the strict medical sense. Nonetheless, she is clearly signalling a promising step in her recovery. <h2>What happens during remission?</h2> During remission, patients will usually undergo surveillance testing to make sure their cancer hasn’t returned. Detection tests can vary greatly depending on both the patient and their cancer type. Many <a href="https://www.cancer.gov/about-cancer/screening/screening-tests">tests</a> involve simply looking at different organs to see if there are cancer cells present, but at varying levels of complexity. Some cancers can be detected with the naked eye, such as skin cancers. In other cases, technology is needed: colonoscopies for colorectal cancers, X-ray mammograms for breast cancers, or CT scans for lung cancers. There are also molecular tests, which test for the presence of cancer cells using protein or DNA from blood or tissue samples. For most patients, testing will continue for years at regular intervals. Surveillance testing ensures any returning cancer is caught early, giving patients the best chance of successful treatment. Remaining in remission for five years can be a huge milestone in a patient’s cancer journey. For most types of cancer, the <a href="https://pubmed.ncbi.nlm.nih.gov/31231898/">chances of cancer returning</a> drop significantly after five years of remission. After this point, surveillance testing may be performed less frequently, as the patients might be deemed to be at a lower risk of their cancer returning. <h2>Measuring survival rates</h2> Because it is very difficult to tell when a cancer is “cured”, clinicians may instead refer to a “five-year survival rate”. This measures how likely a cancer patient is to be alive five years after their diagnosis. For example, data shows the <a href="https://ncci.canceraustralia.gov.au/outcomes/relative-survival-rate/5-year-relative-survival-diagnosis">five-year survival rate</a> for <a href="https://cancer.org.au/cancer-information/types-of-cancer/bowel-cancer">bowel cancer</a> among Australian women (of all ages) is around 70%. That means if you had 100 patients with bowel cancer, after five years you would expect 70 to still be alive and 30 to have succumbed to the disease. These statistics can’t tell us much about individual cases. But comparing five-year survival rates between large groups of patients after different cancer treatments can help clinicians make the often complex decisions about how best to treat their patients. The likelihood of cancer coming back, or recurring, is influenced by many factors which can vary over time. For instance, approximately 30% of people with lung cancer <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7061059/">develop a recurrent disease</a>, even after treatment. On the other hand, <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4933127/">breast cancer recurrence</a> within two years of the initial diagnosis is approximately 15%. Within five years it drops to 10%. After ten, it falls below 2%. These are generalisations though – recurrence rates can vary greatly depending on things such as what kind of cancer the patient has, how advanced it is, and whether it has spread. <h2>Staying cancer-free</h2> Princess Catherine <a href="https://www.theguardian.com/uk-news/article/2024/sep/09/princess-of-wales-cancer-free-after-completing-chemotherapy">says</a> her focus now is to “stay cancer-free”. What might this involve? How a cancer develops and whether it recurs can be <a href="https://nature.com/articles/s41467-018-05467-z">influenced</a> by things we can’t control, such as age, ethnicity, gender, genetics and hormones. However, there are sometimes <a href="https://www.cancer.gov/about-cancer/causes-prevention/risk/substances">environmental factors</a> we can control. That includes things like exposure to UV radiation from the sun, or inhaling carcinogens like tobacco. Lifestyle factors also play a role. Poor diet and nutrition, a lack of exercise and excessive alcohol consumption can all <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10925935">contribute to cancer development</a>. Research estimates more than half of all cancers could <a href="https://www.canceraustralia.gov.au/resources/position-statements/lifestyle-risk-factors-and-primary-prevention-cancer/recommendations">potentially be prevented</a> through <a href="https://www.health.gov.au/topics/cancer/screening-for-cancer">regular screening</a> and maintaining a healthy lifestyle (not to mention preventing other chronic conditions such as heart disease and diabetes). Recommendations to reduce cancer risk are the same for everyone, not just those who’ve had treatment like Princess Catherine. They include not smoking, eating a nutritious and balanced diet, exercising regularly, cutting down on alcohol and staying sun smart.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/238681/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/amali-cooray-1482458">Amali Cooray</a>, PhD Candidate in Genetic Engineering and Cancer, <a href="https://theconversation.com/institutions/wehi-walter-and-eliza-hall-institute-of-medical-research-822">WEHI (Walter and Eliza Hall Institute of Medical Research) </a>; <a href="https://theconversation.com/profiles/john-eddie-la-marca-1503690">John (Eddie) La Marca</a>, Senior Research Officer, Blood Cells and Blood Cancer, <a href="https://theconversation.com/institutions/wehi-walter-and-eliza-hall-institute-of-medical-research-822">WEHI (Walter and Eliza Hall Institute of Medical Research) </a>, and <a href="https://theconversation.com/profiles/sarah-diepstraten-1495268">Sarah Diepstraten</a>, Senior Research Officer, Blood Cells and Blood Cancer Division, <a href="https://theconversation.com/institutions/wehi-walter-and-eliza-hall-institute-of-medical-research-822">WEHI (Walter and Eliza Hall Institute of Medical Research)</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-princess-of-wales-wants-to-stay-cancer-free-what-does-this-mean-238681">original article</a>.

Caring

Why is it so hard to cancel subscriptions or end ‘free’ trials? Report shows how companies trap you into paying

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/katharine-kemp-402096">Katharine Kemp</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> Many businesses are trapping Australian consumers in paid subscriptions by making them hard to cancel, hiding important details and offering “free” trials that auto-renew with hefty charges. We need law reform to tackle this continuing problem. <a href="https://cprc.org.au/report/let-me-out">A new report</a> shows 75% of Australian consumers have had negative experiences when trying to cancel a subscription, according to the Consumer Policy Research Centre (CPRC). It shows businesses use “<a href="https://www.wired.com/story/how-to-spot-avoid-dark-patterns/">dark patterns</a>”, which are designs that hinder consumers who try to act in their own best interests. Subscription traps are often called “<a href="https://www.ftc.gov/business-guidance/blog/2022/11/checking-out-ftcs-100-million-settlement-vonage">Hotel California</a>” techniques, referring to The Eagles’ famous lyric: “you can check out any time you want, but you can never leave”. In some of these cases, consumers may have remedies under our existing consumer law, including for misleading conduct. But we need law reform to capture other <a href="https://treasury.gov.au/consultation/c2023-430458">unfair practices</a>. In the meantime, the CPRC’s research also gives examples of businesses with fair, consumer-friendly subscription practices. These also benefit the business. <h2>Examples of unfair subscription traps</h2> <a href="https://www.forbes.com/councils/forbesbusinessdevelopmentcouncil/2022/09/12/the-evolution-of-the-subscription-model-and-whats-on-the-horizon/">Subscription business models</a> have become common – many products are now provided in the form of software, an app or access to a website. Some of these would once have been a physical book, newspaper, CD or exercise class. Most people who use online services have experienced the frustration of finding a credit card charge for an unwanted, unused subscription or spending excessive time trying to cancel a subscription. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=45&auto=format&w=600&h=643&fit=crop&dpr=1 600w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=30&auto=format&w=600&h=643&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=15&auto=format&w=600&h=643&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&h=808&fit=crop&dpr=1 754w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=30&auto=format&w=754&h=808&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/615486/original/file-20240826-16-fp57es.png?ixlib=rb-4.1.0&q=15&auto=format&w=754&h=808&fit=crop&dpr=3 2262w" alt="Infographic with a few statistics from the report." /></a><figcaption><a class="source" href="https://cprc.org.au/wp-content/uploads/2024/08/CPRC_LetMeOut_SubsTraps_Report_FINAL.pdf">CPRC, Let me out – Subscription trap practices in Australia, August 2024</a></figcaption></figure> Businesses can make it difficult for consumers to stop paying for unwanted subscriptions. Some do this by allowing consumers to start a subscription with a single click, but creating multiple obstacles if you want to end the subscription. This can include obscuring cancellation options in the app, requiring consumers to phone during business hours or making them navigate through multiple steps and offers before terminating. The report points out many of the last-ditch discounts offered in this process are only short term. One survey respondent said: <blockquote> I wasn’t able to cancel without having to call up and speak to someone. Their business hours meant I had to call up during my work day and it took some time to action. </blockquote> Other businesses badger consumers with frequent emails or messages after they cancel. One respondent said a business made “the cancellation process impossible by making you call and then judging your reason for cancellation”. <h2>What does consumer law say?</h2> Some subscription traps already fall foul of the Australian Consumer Law and warrant investigation by the <a href="https://www.accc.gov.au/media-release/accc-warns-consumers-to-beware-of-subscription-traps">Australian Competition & Consumer Commission</a> (ACCC). Consumers may have remedies where the business has engaged in misleading conduct or imposes an unfair contract term. For example, the ACCC is <a href="https://www.accc.gov.au/media-release/accc-court-action-against-eharmony-for-alleged-misleading-online-dating-membership-statements#:%7E:text=The%20ACCC%20has%20today%20commenced%20proceedings%20in%20the,the%20pricing%2C%20renewal%20and%20duration%20of%20its%20memberships.">suing dating site eHarmony</a> for its allegedly misleading subscription practices. In the United States, the Federal Trade Commission <a href="https://www.ftc.gov/news-events/news/press-releases/2024/06/ftc-takes-action-against-adobe-executives-hiding-fees-preventing-consumers-easily-cancelling">has filed a complaint against software company Adobe</a> for allegedly using dark patterns in its subscription practices. The Federal Trade Commission has alleged that “Adobe pushed consumers toward the ‘annual paid monthly’ subscription without adequately disclosing that cancelling the plan in the first year could cost hundreds of dollars”. Adobe <a href="https://news.adobe.com/news/news-details/2024/Adobes-Recent-Statement-Regarding-Updated-Federal-Trade-Commission-Complaint-/default.aspx">issued a statement</a> arguing the commission’s complaint “mischaracterises” its business. The litigation is ongoing. <h2>We need an unfair practices prohibition</h2> Some subscription traps would fall outside the existing consumer law. This is because they don’t meet the test for misleading conduct or unfair contract terms, but make it practically very difficult to cancel. The <a href="https://www.accc.gov.au/media-release/accc-welcomes-consultation-on-possible-unfair-trading-practices-regulatory-reforms">ACCC has advocated</a> for Australia to follow other countries such as the United Kingdom and the United States to enact an unfair practices prohibition to capture conduct like this. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=45&auto=format&w=600&h=769&fit=crop&dpr=1 600w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=30&auto=format&w=600&h=769&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=15&auto=format&w=600&h=769&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&h=966&fit=crop&dpr=1 754w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=30&auto=format&w=754&h=966&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/615487/original/file-20240826-16-2j23h7.png?ixlib=rb-4.1.0&q=15&auto=format&w=754&h=966&fit=crop&dpr=3 2262w" alt="" /></a><figcaption>The shift businesses can make today. <a class="source" href="https://cprc.org.au/wp-content/uploads/2024/08/CPRC_LetMeOut_SubsTraps_Report_FINAL.pdf">CPRC, Let me out – Subscription trap practices in Australia, August 2024</a></figcaption></figure> <h2>Better practices benefit businesses too</h2> The CPRC report also revealed that 90% of Australians would likely purchase from the same organisation if cancelling a subscription process was quick and simple. Businesses focused on a short-sighted cash grab fail to realise that consumers might cancel but later return if treated well. The CPRC highlights businesses that are doing a good job. For instance, the habit change app Atoms (based on James Clear’s book Atomic Habits) has a genuinely free trial. It doesn’t require credit card details, doesn’t auto-renew, and lets consumers know how many trial days remain. The CPRC says the charity World Vision doesn’t auto-renew annual sponsorships, but reminds supporters about when the sponsorship will lapse. Importantly, some businesses – such as Netflix – use their data for good in this context. They notice when users are paying for the service without using it and help them unsubscribe. These practices should be applauded. But we need an unfair practices prohibition for businesses who don’t follow suit and recognise the long-term benefits of treating customers fairly.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/237236/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/katharine-kemp-402096">Katharine Kemp</a>, Associate Professor, Faculty of Law & Justice; Lead, UNSW Public Interest Law & Tech Initiative, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/why-is-it-so-hard-to-cancel-subscriptions-or-end-free-trials-report-shows-how-companies-trap-you-into-paying-237236">original article</a>. </div>

Money & Banking

Discover the joys of hassle-free travel on a guided holiday

Planning a holiday can sometimes feel like a full-time job. Between researching destinations, booking hotels, figuring out transportation and planning activities, it’s easy to feel overwhelmed. But what if you could skip all that hassle and just focus on enjoying your trip? AAT Kings’ guided holidays are the perfect solution for those who want to explore and experience without the stress. And with more than 100 years of experience in the touring industry – plus incredible savings of up to 15%* on selected 2025 trips – here’s why choosing an AAT Kings guided holiday beats going it alone every time. <h2>Stay in style and comfort</h2> One of the biggest perks of traveling with AAT Kings is the carefully chosen quality hotels. Say goodbye to hours of research and the anxiety of booking a hotel in an unknown location. With AAT Kings, you’ll stay in centrally located accommodations, ensuring you’re never far from the action. Plus, porterage and hotel tips are included, meaning you don’t have to worry about handling your bags or fumbling for change. <h2>Sightseeing made easy</h2> <img class="alignnone size-full wp-image-51336" src="https://oversixtydev.blob.core.windows.net/media/2024/08/1089674-134-Tourism-Australia_1280.jpg" alt="" width="1280" height="720" /> Forget about the confusion of guidebooks and the frustration of not knowing what you’re looking at. With AAT Kings, you get knowledgeable and friendly Travel Directors who offer in-depth sightseeing with local guides to help you gain access to unique cultural experiences. Enjoy VIP entry into a host of attractions, bypassing those lengthy queues. You’ll gain a richer understanding of the sights you see, all while enjoying a seamless experience. <h2>Delicious meals, zero hassle</h2> Food is a huge part of any travel experience, and AAT Kings ensures you get the best of local cuisine without the guesswork. Enjoy breakfast daily and some lunches and dinners included in your tour. Authentic experiences, welcome receptions and farewell dinners are all part of the package. Quality local cuisine, tips included, and help with reservations and directions to where the locals eat – it’s all taken care of. No more worrying about navigating unfamiliar menus or the risk of poor quality. <h2>Travel in comfort and style</h2> <img class="alignnone size-full wp-image-51335" src="https://oversixtydev.blob.core.windows.net/media/2024/08/AAT-Kings-Coach_1280.jpg" alt="" width="1280" height="720" /> Transportation logistics can be a nightmare when travelling independently. With AAT Kings, you can sit back and relax as you’re chauffeured around in luxury coaches or small vehicles by professional drivers. Daily transportation is included, along with fuel, toll charges and parking. There’s no risk of getting lost or dealing with unfamiliar road rules – just relax and enjoy the ride. <h2>Exclusive experiences you won’t forget</h2> Perhaps the most exciting part of AAT Kings’ guided holidays are the exclusive experiences on offer. From “Be My Guest” dining events on select itineraries to hidden sightseeing gems and immersive cultural experiences, you’ll enjoy unique activities that aren’t easily accessible to independent travellers. With local guides and experts, you’ll gain insights and experiences that make your trip truly special. So, if you’re looking for breathtaking landscapes, adventure, relaxation and unique cultural experiences all expertly curated with every detail taken care of, AAT Kings has you covered. Especially when it comes to our Top Three Favourite Aussie Tours from their amazing 2025 line-up of guided holidays! <h2>Top Tour No1: Outback Adventure</h2> <img class="alignnone size-full wp-image-51360" src="https://oversixtydev.blob.core.windows.net/media/2024/08/Field-of-Light-141512-56-Credit-Tourism-NT-Ray-Reyes_1280.jpg" alt="" width="1280" height="720" /> This 15-day journey through Australia’s iconic outback offers an immersive experience into the heart of Australia’s stunning natural beauty and rich cultural heritage. From the vibrant cityscapes of Adelaide and Alice Springs to the breathtaking landscapes of Uluru, Kata Tjuta and Kings Canyon, each day promises unforgettable moments. Engage with Indigenous culture, marvel at ancient rock formations and enjoy the camaraderie of fellow travellers on this amazing tour that combines comfort with adventure, ensuring an enriching and exhilarating outback experience. Including a specialist team of an experienced Travel Director and Driver, both accredited with Uluru and Kakadu National Parks, you’ll enjoy stays in centrally located premium hotels and benefit from included National Park entrance fees, as well as arrival and departure transfers. Culinary delights include 14 full breakfasts, eight dinners with wine, a special “Be My Guest” dinner, as well as a farewell dinner! Additionally, the tour covers two UNESCO World Heritage Sites: Uluru-Kata Tjuta and Kakadu National Parks. Travel Period: April 01, 2025 to March 31, 2026. More info: <a href="https://www.aatkings.com/tours/outback-adventure/" target="_blank" rel="noopener">https://www.aatkings.com/tours/outback-adventure/</a> <h2>Top Tour No2: Tasmanian Wonders</h2> <img class="alignnone size-full wp-image-51337" src="https://oversixtydev.blob.core.windows.net/media/2024/08/cradle-mountain-129507-56-Credit-Pierre-Destribats_1280.jpg" alt="" width="1280" height="720" /> This 10-day adventure across the stunning island of Tasmania promises a blend of breathtaking landscapes, rich history and unique wildlife encounters. From the bustling streets of Hobart to the serene wilderness of Cradle Mountain and the pristine beaches of Freycinet National Park, every moment is designed to captivate and inspire. The Tasmanian Wonders Tour includes experienced guides for a seamless and informative journey; visits to the UNESCO World Heritage Sites of the Tasmanian Wilderness and Port Arthur; centrally located premium hotels for comfort and convenience; plus nine full breakfasts, one lunch and six dinners with wine, allowing you to savour the wonderful local flavours and cuisine. Highlights of the tour include visits to iconic destinations such as Salamanca Place, Gordon River, Wineglass Bay and the charming towns of Launceston and Strahan. All National Park entrance fees as well as arrival and departure transfers are taken care of, leaving you to relax and concentrate on engaging with the rich cultural heritage, indulging in fresh local produce, and marvelling at the diverse wildlife – including the famous Tasmanian Devil! Travel Period: April 01, 2025 to March 31, 2026. More info: <a href="https://www.aatkings.com/tours/tasmanian-wonders/" target="_blank" rel="noopener">https://www.aatkings.com/tours/tasmanian-wonders/</a> <h2>Top Tour No3: Wonders of the Kimberley</h2> <img class="alignnone size-full wp-image-51338" src="https://oversixtydev.blob.core.windows.net/media/2024/08/Ord-River-125532-56-Credit-Tourism-Australia_1280.jpg" alt="" width="1280" height="720" /> This 11-day adventure through one of Australia’s most remote and captivating regions is a true feast for the senses, blending breathtaking natural landscapes with rich cultural heritage and unique wildlife encounters. Highlights include a visit to the historic pearling town of Broome with its stunning Cable Beach sunsets and vibrant multicultural atmosphere; Fitzroy Crossing and the geological wonders of Geikie Gorge and its ancient rock formations; the fascinating gold rush history of Halls Creek; Purnululu National Park and the striking beehive-shaped rocks of the Bungle Bungle Range; the tranquil beauty of Emma Gorge; the towering cliffs and crystal-clear pools of the El Questro Wilderness Park and so much more. Gain deep insights into Indigenous culture with a visit to the Mimbi Caves, guided by local Gooniyandi people. Experience the rich storytelling and traditional knowledge shared by Aboriginal guides, offering a profound connection to the land and its history. Cruise the stunning waterways of the Ord River and Lake Argyle, keeping an eye out for local wildlife. All this and more will be part of your Kimberley adventure, guided by a highly experienced Travel Director and Driver. Again, as is the AAT Kings way, you’ll stay in centrally located premium hotels and unique lodges while enjoying ten full breakfasts, two lunches and eight dinners with wine, including a special farewell dinner to celebrate your adventure. All National Park entrance fees, arrival and departure transfers, and unforgettable excursions are included. Travel Period: April 01, 2025 to March 31, 2026. More info: <a href="https://www.aatkings.com/tours/wonders-of-the-kimberley/" target="_blank" rel="noopener">https://www.aatkings.com/tours/wonders-of-the-kimberley/</a> So what are you waiting for? Choosing an AAT Kings guided holiday clearly means more than just convenience – it means enjoying a richer, more immersive travel experience. It means saying goodbye to the stress and uncertainty of independent travel and hello to the joy of exploring with expert guidance and premium amenities. Pack your bags, leave the planning to AAT Kings, and get ready for the holiday of a lifetime! For more information on how you can save up to $7,900* per couple on selected Australia and New Zealand tours when you book and pay before 30 Sept, 2024*, visit <a href="https://www.aatkings.com/" target="_blank" rel="noopener">https://www.aatkings.com/</a> *Terms & Conditions: Save up to 15% + 5% on selected AAT Kings tours <ul> <li>Destinations include: South Australia, Northern Territory, Tasmania and Western Australia.</li> <li>For travel: Selected dates 01Apr2025-31Mar2026</li> <li>On sale: Until 30Sep2024</li> </ul> <ul> <li>Terms and conditions: Maximum saving of $7,900 NZD is the total discounted amount, per couple, twin share on the Wonders of the West Coast and Kimberley tour (now from $16,662 NZD per person, twin share) and Untamed Kimberley & West Coast tour (now from $16,662 NZD per person, twin share). Save up to 15% on selected tours, on land only AAT Kings operated Guided Holidays (First Choice and Best Buys tours). Discount applicable to tour portion only. Sale valid until Jan 15, 2025, on select travel departures from Apr 1, 2025 – Mar 31, 2026. Combinable with NEWSAVE5 and Global Tour Rewards (excludes all other promotions). Blackout departure dates may apply. NEWSAVE5 - Save an additional 5% on all Guided AAT Kings tours and Inspiring Journeys itineraries when you book and pay by Sep 30, 2024. Offer valid for sale between Jul 12, 2024 – Sep 30, 2024, for select travel departures from Apr 1, 2025 – Mar 31, 2026. Combinable with New Season Sale and Global Tour Rewards (excludes all other promotions). Please quote NEWSAVE5 at the time of booking. The above deals are for new bookings only. All discounts are subject to availability at the time of booking, with limited seats available. All offers may be withdrawn at any time without notice. Other standard booking conditions apply. For deposit information see booking <a href="https://www.aatkings.com/about-us/booking-conditions/">conditions here</a>. Contact your travel agent or speak to our experts for more details. Conditions are correct as of July 8, 2024.</li> <li>Highest dollar amount saving per state: TAS $4,140. WA $7,900. NT $4,480. SA $3,000.</li> </ul> All Images: AAT Kings. This is a sponsored article produced in partnership with AAT Kings.

Travel Tips

Plastic Free July is a waste of time if the onus is only on consumers

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/bhavna-middha-1061611">Bhavna Middha</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> and <a href="https://theconversation.com/profiles/ralph-horne-160543">Ralph Horne</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Every year, the <a href="https://www.plasticfreejuly.org/">Plastic Free July</a> campaign asks us to refuse single-use plastic. The idea is that making a small change in our daily lives will collectively make a big difference. And hopefully, better behaviour will stick and become a habit. The intent is good, but consumers shouldn’t have to bear full responsibility for plastic pollution. Individual sacrifices – particularly temporary ones – <a href="https://www.sciencedirect.com/science/article/abs/pii/S0301421509004728">won’t make a significant difference</a>. Governments, manufacturers and retailers need to get serious about tackling this problem. If Plastic Free July put pressure on the supply side of the equation, rather than demand, it could be more successful. Our research spans food packaging including plastics, waste, sustainable consumption and social practices. We know consumer demand is only one part of the picture. Eliminating plastic waste requires broader systemic changes. <h2>The cabbage dilemma</h2> Research shows consumers generally want to do the <a href="https://www.sustainability.vic.gov.au/news/news-articles/the-conversation-on-sustainability-has-changed">right thing by the environment</a> but find it <a href="https://theconversation.com/households-find-low-waste-living-challenging-heres-what-needs-to-change-197022">challenging</a>. Coming out of a supermarket with no packaging is difficult. There are few unpackaged food items and even when there is a choice, the unpackaged item may be more <a href="https://www.smh.com.au/politics/federal/want-your-fruit-and-veg-without-the-plastic-you-ll-have-to-pay-more-20231107-p5eib4.html">expensive</a>. Have you ever been stuck in the supermarket, choosing between the large head of cabbage you know you won’t finish before it goes bad, or the plastic-wrapped half-cabbage you really need? Consumers should not be forced to choose between food waste (another huge problem) or plastic waste. Maybe there’s another way. For example, why not sell cabbages of different sizes? Why do we need to grow such large heads of cabbage anyway? Both plastic consumption and food waste can be addressed by changing how we produce and distribute certain foods. <h2>Governments, manufacturers and retailers must drive change</h2> The onus for reducing plastic consumption and waste should be placed firmly on those who make plastic and profit from selling their products, as well as those who make and sell products wrapped in plastic packaging. Research has shown just <a href="https://www.csiro.au/en/news/All/News/2024/April/Global-study-finds-more-than-half-of-branded-plastic-pollution-linked-to-56-companies?utm_source=pocket_shared">56 companies</a> globally are responsible for more than half of the branded plastic pollution that ends up in the environment. Companies profit from using plastics because it is cheaper to use than changing to alternatives, such as cardboard or compostable materials, or using less packaging. This means companies choosing to avoid using plastics face unfair competition. It’s a tough habit to kick. Industry-led <a href="https://productstewardship.us/what-is-epr/#:%7E:text=Stewardship%20can%20be%20either%20voluntary,product%20stewardship%20required%20by%20law">voluntary schemes</a> are <a href="https://www.insidewaste.com.au/91038-2-product-stewardship-schemes/">limited in terms of both participation and outcomes</a>. Many companies are failing to meet their own <a href="https://www.asyousow.org/report-page/2024-plastic-promises-scorecard">plastic reduction goals</a>. Governments need to step in and force companies to take responsibility for the plastic and packaging they manufacture. In practice, this could involve similar schemes to the container deposit scheme for beverage containers, or returning plastics to stores. Replacing voluntary schemes with mandatory regulations and increased producer responsibility means companies will have to <a href="https://www.insidewaste.com.au/91038-2-product-stewardship-schemes/">invest in long-term changes designed with care</a>. <figure><iframe src="https://www.youtube.com/embed/UnXVU-06ciI?wmode=transparent&start=1" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe><figcaption>What’s Plastic Free July?</figcaption></figure> <h2>Cities are built around plastic</h2> Our previous research has shown plastic performs an essential role in some, <a href="https://rgs-ibg.onlinelibrary.wiley.com/doi/full/10.1111/geoj.12457">constrained circumstances</a>. We found vulnerable householders often rely on plastic to make life manageable, such as using plastics to cover belongings on the balcony, or using plastic cutlery and plates in student apartments with minimal kitchen space. This includes people with accessibility needs, people relying on public transport to shop for groceries, or people who are financially constrained or living in small high-rise <a href="https://theconversation.com/we-cant-keep-putting-apartment-residents-waste-in-the-too-hard-basket-200545">apartments</a>. Unsustainable lifestyles are not so much a choice as a product of poorly planned cities, housing and regulations. It is all very well if you are mobile and well-located, but if you live in a <a href="https://www.abc.net.au/news/2015-07-08/food-deserts-have-serious-consequences-for-residents-experts/6605230">poorly serviced</a> distant suburb and <a href="https://www.unsw.edu.au/newsroom/news/2023/01/are-you-living-in-a-food-desert--these-maps-suggest-it-can-reall">transport groceries or takeaway food</a> or buy things on the go, then plastic is perhaps the only current affordable way to make it work. So campaigns and solutions that do not consider how <a href="https://rgs-ibg.onlinelibrary.wiley.com/doi/full/10.1111/geoj.12457">everyday lives and economy</a> are intertwined with plastics can <a href="https://www.nature.com/articles/s42949-024-00149-w">exclude people and spaces</a> who can’t access the alternatives. For example, there are ways to make <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/1745-5871.12464">convenience eating more sustainable</a> in education settings. We have shown how <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/1745-5871.12390">canteens and microwaves</a> in shared spaces can enable people to access affordable food with their friends, as in <a href="https://www.charlesabroad.cz/post/german-university-canteens-why-do-they-beat-the-czech-ones">University Mensa in Germany</a>. Our <a href="https://cur.org.au/project/tackling-food-related-single-use-plastics-in-diverse-consumption-contexts/">new research</a> will explore how single-use food-related plastics and packaging form an integral part of our daily lives, including shopping, work, cooking and storage. Sometimes new policies inadvertently disadvantage certain groups and communities, such as the aged, less mobile, people living in apartments, or low socio-economic groups. Before we roll out new policies and regulations, we need to understand the roles these materials play and the kinds of services and value they provide. We aim to develop a framework to inform policies and strategies that enable a just and inclusive transition to reduced plastic use. <h2>What about after July?</h2> Plastic Free July and similar campaigns are based on idea that making a temporary change will lead to more permanent lifestyle changes. But research shows temporary shifts are <a href="http://www.demand.ac.uk/wp-content/uploads/2016/03/DEMAND2016_Full_paper_42-Shove.pdf">very different</a> to <a href="https://pure.manchester.ac.uk/ws/portalfiles/portal/32468813/FULL_TEXT.PDF">structural, permanent shifts</a> in <a href="https://www.taylorfrancis.com/chapters/edit/10.4324/9781315816494-1/introduction-social-practices-intervention-sustainability-beyond-behaviour-change-yolande-strengers-cecily-maller?context=ubx&refId=d608abad-39f9-4bb2-8754-56e9e2000c5e">practices</a>. Supermarkets will still wrap items in plastic and sell single-use plastic, even if we try to buy less during Plastic Free July. Ultimately, the focus should be on designing effective infrastructure and policy solutions for lasting results, considering how demand for plastic is produced in the first place. Some of these changes will require a shift in community expectations and food culture. Rather than pointing the finger at consumers, let’s get to work on redesigning our cities. We need to rethink how everyday practices, manufacturing and distribution systems are structured to eliminate plastic waste.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/233436/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/bhavna-middha-1061611">Bhavna Middha</a>, ARC DECRA and Senior Research Fellow, Centre for Urban Research, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> and <a href="https://theconversation.com/profiles/ralph-horne-160543">Ralph Horne</a>, Associate Deputy Vice Chancellor, Research & Innovation, College of Design & Social Context, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/plastic-free-july-is-a-waste-of-time-if-the-onus-is-only-on-consumers-233436">original article</a>. </div>

Home & Garden

Michael Jackson's staggering debt revealed

Michael Jackson was reportedly drowning in massive debt at the time of his death in 2009. According to newly released court documents, the late King of Pop owed more than $500 million ($747.05 million AUD) to more than 65 creditors just before he passed. Jackson had “more than half a dozen lawsuits pending worldwide” and more than “65 creditors’ claims were filed in the estate spawning additional lawsuits, of which several resulted in litigation,” the documents state. According to the documents, that were filed in a Los Angeles court on June 21st, the executors of Jackson's will were able to “renegotiate and restructure financing arrangements,” including a lucrative deal with Sony over rights he had to music publishing for several artists, at “substantially reduced interest rates” to avoid further losses and rectify the debts. The $750 million ($1.120 billion AUD) agreement allowed Sony to acquire Sony/ATV, which held the rights to almost 3 million famous songs from artists including John Lennon and Paul McCartney, David Bowie and Taylor Swift. Despite settling the major agreement with the record label, the Jackson estate still reportedly owes a significant amount of money as “there remain challenging business, tax and legal issues that the executers and their counsel continue to deal with.” The filing reportedly also notes a pending final decision on a victory in a 2021 court battle with the IRS. Jackson’s three children, Prince, 27, Paris, 26, and Bigi Jackson, 22 — who are the beneficiaries of his estate — have been blocked from receiving money from their trust until the IRS dispute has been settled. A spokesperson for the estate clarified, “The estate has a very cooperative relationship with Michael’s children and whenever they need anything, the estate works with them to ensure that they are very well taken care of, just as Michael would have wanted.” The Los Angeles Times previously reported that Michael accrued so much debt largely in part because of his excessive spending habits, which were aired during his 2003 interview with Martin Bashir that laid bare his extravagant spending. Image credits: Mousse/ABACA/Shutterstock Editorial

Money & Banking

Boomers vs millennials? Free yourself from the phoney generation wars

<a href="https://theconversation.com/profiles/bobby-duffy-98570">Bobby Duffy</a>, <a href="https://theconversation.com/institutions/kings-college-london-1196">King's College London</a> Generational thinking is a big idea that’s been horribly corrupted and devalued by endless myths and stereotypes. These clichés have fuelled fake battles between “snowflake” millennials and “selfish” baby boomers, with younger generations facing a “war on woke” and older generations accused of “stealing” the future from the young. As I argue in my book, <a href="https://atlantic-books.co.uk/book/generations/">Generations</a>, this is a real shame. A more careful understanding of what’s really different between generations is one of the best tools we have to understand change – and predict the future. Some of the great names in sociology and philosophy saw understanding generational change as central to understanding society overall. <a href="http://dhspriory.org/kenny/PhilTexts/Comte/Philosophy2.pdf">Auguste Comte</a>, for example, identified the generation as a key factor in “the basic speed of human development”. He argued that “we should not hide the fact that our social progress rests essentially upon death; which is to say that the successive steps of humanity necessarily require a continuous renovation … from one generation to the next”. We humans get set in our ways once we’re past our formative years, and we need the constant injection of new participants to keep society moving forward. Understanding whether, and how, generations are different is vital to understanding society. The balance between generations is constantly shifting, as older cohorts die out and are replaced by new entrants. If younger generations truly do have different attitudes or behaviours to older generations, this will reshape society, and we can, to some extent, predict how it will develop if we can identify those differences. But in place of this big thinking, today we get clickbait headlines and bad research on millennials “<a href="https://www.businessinsider.com/millennials-hate-napkins-2016-3?r=US&IR=T">killing the napkin industry</a>” or on how baby boomers have “<a href="https://www.theatlantic.com/ideas/archive/2019/06/boomers-are-blame-aging-america/592336/">ruined everything</a>”. We’ve fallen a long way. <h2>Myth busting</h2> To see the true value of generational thinking, we need to identify and discard the many myths. For example, as I outline in the book, gen Z and millennials are not lazy at work or disloyal to their employers. They’re also no more materialistic than previous generations of young: a focus on being rich is something we tend to grow out of. Old people are not uncaring or unwilling to act on climate change: in fact, they are more likely than young people to boycott products for social purpose reasons. And our current generation of young are not a particularly unusual group of “culture warriors”. Young people are always at the leading edge of change in cultural norms, around race, immigration, sexuality and gender equality. The issues have changed, but the gap between young and old is not greater now than in the past. Meanwhile, there are real, and vitally important, generational differences hidden in this mess. To see them, we need to separate the three effects that explain all change in societies. Some patterns are simple “lifecycle effects”, where attitudes and behaviours are to do with our age, not which generation we are born into. Some are “period effects” – where everyone is affected, such as in a war, economic crisis or a pandemic. And finally, there are “cohort effects”, which is where a new generation is different from others at the same age, and they stay different. It’s impossible to entirely separate these distinct forces, but we can often get some way towards it – and when we do, we can predict the future in a much more meaningful way. There are many real generational differences, in vitally important areas of life. For example, the probability of you owning your own home is hugely affected by when you were born. Millennials are around half as likely to be a homeowner than generations born only a couple of decades earlier. There is also a real cohort effect in experience of mental health disorders, particularly among recent generations of young women. Our relationship with alcohol and likelihood of smoking is also tied to our cohort, with huge generational declines in very regular drinking and smoking. Each of these point to different futures, from increased strain on mental health services to declining alcohol sales. But lifecycle and period effects are vitally important too. For example, there is truth in the idea that we grow more conservative as we age. One analysis suggests that this ageing effect is worth around <a href="https://www.sciencedirect.com/science/article/abs/pii/S0261379413000875">0.35% to the Conservatives each year</a>, which may not sound like a lot, but is very valuable over the course of a political lifetime. And, of course, the pandemic provides a very powerful example of how period effects can dramatically change things for us all. <h2>Reaching beyond the avocado</h2> When there is such richness in the realities, why are there so many myths? It’s partly down to bad marketing and workplace research – that is, people jumping on the generation bandwagon to get media coverage for their products or to sell consultancy to businesses on how to engage young employees. This has become its own mini-industry. In 2015, US companies spent up to US$70 million (£51 million) on this sort of “advice” <a href="https://www.wsj.com/articles/helping-bosses-decode-millennialsfor-20-000-an-hour-1463505666">according to the Wall Street Journal</a>, with some experts making as much as US$20,000 an hour. Over 400 LinkedIn users now describe themselves solely as a “millennial expert” or “millennial consultant”. Campaigners and politicians also play to these imagined differences. Our increasing focus on “<a href="https://www.kcl.ac.uk/policy-institute/assets/culture-wars-in-the-uk.pdf">culture wars</a>” often involves picking out particular incidents in universities, such as the <a href="https://www.bbc.co.uk/news/uk-england-manchester-45717841">banning of clapping</a> at events or the <a href="https://www.bbc.co.uk/news/uk-england-oxfordshire-57409743">removal of a portrait of the Queen</a> to exaggerate how culturally different young people today are. Maybe less obviously, politicians such as former US President Barack Obama repeatedly lionise coming generations as more focused on equality, when the evidence shows they’re often not that different. These assertions are not only wrong, but create false expectations and divides. Some have had enough, calling on the Pew Research Center in the US, which has been a champion of generational groups, to <a href="https://www.washingtonpost.com/opinions/2021/07/07/generation-labels-mean-nothing-retire-them/&data=04%257C01%257C">stop conducting this type of analysis</a>. I think that misses the point: it’s how it’s applied rather than the idea of generations that’s wrong. We should defend the big idea and call out the myths, not abandon the field to the “millennial consultants”.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/167138/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/bobby-duffy-98570">Bobby Duffy</a>, Professor of Public Policy and Director of the Policy Institute, <a href="https://theconversation.com/institutions/kings-college-london-1196">King's College London</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/boomers-vs-millennials-free-yourself-from-the-phoney-generation-wars-167138">original article</a>.

Mind

Man books 58 flights for free

A Jetstar passenger has become locked in a legal battle with the Aussie airline after exploiting a promotion to get 58 flights for free. Lawyer Tyrone Barugh was one of many travellers who made use of Jetstar’s promotion that offered people a free return fare. Barugh booked a flight from Auckland to Sydney for $260 and received the free return, although he soon cancelled the outbound flight and was given credit with the airline. However, he did not cancel the return trip. Mr Barugh then used the credit to book another flight, before doing the same thing a further 57 times. The would-be passenger told n<a href="https://www.news.com.au/finance/business/travel/man-locked-in-tribunal-battle-with-jetstar-after-booking-58-free-flights/news-story/1e3f67324c952ce232f3a583575d7ddc">ews.com.au</a> that he had not planned to board any of the flights, and has taken Jetstar to the Disputes Tribunal of New Zealand, claiming he is entitled to approximately $4,500 in taxes owed on the flights. “They’re [Jetstar] not out here with the most saintly of intentions,” he said. “They have terms and conditions that are designed to potentially avoid having to do the right thing by a lot of their customers and limit their liability to their customers, and they’re pretty happy to pull those out when it suits them.” He claims he is owed the money as he has paid the Passenger Movement Charge, which is a $60 fee the Australian Government collects when a person leaves the country. Mr Barugh says he would accept a settlement of a “small flight credit and a toy plane”. “There is a spirit of larrikinism,” he said. A spokesman for Jetstar declined to comment on the case, saying, “As this is a matter before the Tribunal, we won’t be making any comment.” Image credits: Shutterstock

Travel Trouble

Flight attendant reveals how to score a free upgrade

A flight attendant has shared her number one trick for securing an upgrade on your next plane journey. American flight attendant Cierra Mistt revealed the one question you should ask at check-in to score an upgrade to first class, with the hack working almost every time. Mistt started her now-viral video by saying her hack to get a free upgrade was top secret. “Let’s look at the big picture. Everyone is flying right now, and no one is more excited about that than commercial airlines,” she said. “The majority of airlines are overbooking every single flight they have.” “It comes from the last month of me trying to get home and not even being able to get on standby because every single flight has been oversold,” she said. “I am not talking about one or two seats. I am talking about 10-30 seats that have been oversold.” Mistt said this overselling of flights presents an opportunity to travellers. “If everyone does show up, including the extra passengers that were oversold their tickets, the airlines have no choice but to financially compensate,” she said. The flight attendant shared that airlines “normally start off with vouchers for $500 or something”. “Normally they say a voucher but you can ask for it in cash,” she said. “Depending on the flight and how desperate they are, they will go up to, like three, four, five thousand dollars.” “This is where the free upgrades come in.” Mistt said not only could you ask for a free upgrade in such circumstances, but you could “also ask for other incentives”. “For example, drinks, dinners, breakfast, even a hotel if you have to stay overnight until the next flight,” she said. “And, yes, you can also ask to be upgraded to first class.” Her video received more than a million views, with people praising the hack and sharing how it has worked for them. “I got upgraded to first class by doing this,” said one person. Image credits: TikTok / Getty Images

Travel Tips

Do parolees really ‘walk free’? Busting common myths about parole

<a href="https://theconversation.com/profiles/monique-moffa-1380936">Monique Moffa</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>; <a href="https://theconversation.com/profiles/alyssa-sigamoney-1375881">Alyssa Sigamoney</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>; <a href="https://theconversation.com/profiles/greg-stratton-161122">Greg Stratton</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>; <a href="https://theconversation.com/profiles/jarryd-bartle-441602">Jarryd Bartle</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>, and <a href="https://theconversation.com/profiles/michele-ruyters-18446">Michele Ruyters</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Parole is a hot topic in politics and in the media at the moment, fuelled by several high-profile parole applications. Recently, <a href="https://www.sbs.com.au/news/article/no-parole-for-convicted-baby-killer-keli-lane/xoykrtvxe?cid=testtwitter">Keli Lane’s</a> attempt to be released on parole after years in jail for the murder of her baby daughter was unsuccessful. <a href="https://www.heraldsun.com.au/truecrimeaustralia/police-courts-victoria/how-frankston-serial-killer-paul-denyer-will-apply-for-bail/news-story/4613d1b3fced1f4aeaa9c4e08e8b81e0">Paul Denyer</a>, known as the “Frankston Serial Killer” for murdering three women in the 90s was also denied parole. Meanwhile, Snowtown accomplice <a href="https://www.adelaidenow.com.au/truecrimeaustralia/police-courts-sa/bodies-in-the-barrels-helper-mark-haydon-released-on-parole/news-story/fdfbbbe7b59267d8009c6910249de585">Mark Haydon</a> was granted parole with strict conditions, but is <a href="https://www.abc.net.au/news/2024-04-01/snowtown-accomplice-mark-haydon-still-in-custody-after-parole/103653934">yet to be</a> released. Some media coverage of such well-known cases is littered with myths about what parole is, how it’s granted and what it looks like. Here’s what the evidence says about three of the most common misconceptions. <h2>Myth 1: people on parole walk free</h2> Parole is the conditional release of an incarcerated person (parolee) by a parole board authority, after they have served their non-parole period (minimum sentence) in jail. This isn’t always reflected in headlines. <a href="https://www.9news.com.au/national/snowtown-murders-bodies-in-barrels-murders-mark-haydon-release-south-australia/f4b62a72-ec3d-4238-94d2-64697fbcdef3">Some coverage</a> suggests people on parole are released early and “walk free” without conditions. This is not true. According to the <a href="https://www.adultparoleboard.vic.gov.au/what-parole/purpose-and-benefits">Adult Parole Board of Victoria</a>: "Parole provides incarcerated people with a structured, supported and supervised transition so that they can adjust from prison back into the community, rather than returning straight to the community at the end of their sentence without supervision or support." Parole comes with strict conditions and requirements, such as curfews, drug and alcohol testing, electronic monitoring, program participation, to name a few. People with experience of parole highlight its punitivism and continued extension of surveillance. <h2>Myth 2: most parolees reoffend</h2> Another myth is that the likelihood all parolees reoffend is high. Research over a number of years has consistently found parole reduces reoffending. For example, <a href="https://journals.sagepub.com/doi/abs/10.1177/0004865815585393?journalCode=anja">a 2016 study in New South Wales</a> found at the 12 month mark, a group of parolees reoffended 22% less than an unsupervised cohort. A <a href="https://www.bocsar.nsw.gov.au/Publications/CJB/2022-Report-Effect-of-parole-supervision-on-recidivism-CJB245.pdf">2022 study</a> by the NSW Bureau of Crime Statistics and Research found parole was especially successful in reducing serious recidivism rates among incarcerated people considered to be at a high risk of reoffending. More recently in Victoria, <a href="https://www.adultparoleboard.vic.gov.au/system/files/inline-files/Adult%20Parole%20Board%20Annual%20Report%202022-23_0.pdf">the Adult Parole Board</a> found over 2022–23, no parolees were convicted of committing serious offences while on parole. In contrast, unstructured and unconditional release increases the risk of returning to prison. <h2>Myth 3: parole is easy to get</h2> While the number of parolees reoffending has dropped, so too has the total number of people who are exiting prison on parole. Over a decade ago, Victoria underwent significant parole reforms, largely prompted by high-profile incidents and campaigns. In just five years following Jill Meagher’s tragic death in 2012, the Victorian government passed <a href="https://www.tandfonline.com/doi/full/10.1080/10345329.2018.1556285">13 laws reshaping parole</a>. The result is the number of people on parole in Victoria has halved since 2012, despite incarceration numbers remaining steady. <iframe id="maNRy" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/maNRy/" width="100%" height="400px" frameborder="0"></iframe> These reforms have made it more difficult for people convicted of serious offences to get parole, as well as preventing individuals or specific groups from being eligible for parole (such as police killers, <a href="https://theconversation.com/no-body-no-parole-laws-could-be-disastrous-for-the-wrongfully-convicted-191083">“no body, no parole” prisoners</a>, and certain high-profile murderers). Similar laws can be found in other states. For example, no body, no parole was introduced in all other Australian states and territories, except for Tasmania and the Australian Capital Territory. As a consequence, more people are being released at the end of their full sentence. This can be detrimental not only for the incarcerated person but the wider community, because they are not receiving the reintegration support parole provides. Aside from restricted access due to political intervention, parole is facing a new crisis, which has nothing to do with eligibility or suitability. Last year, 40% of Victorian parole applications were denied, often due to reasons <a href="https://www.adultparoleboard.vic.gov.au/system/files/inline-files/Adult%20Parole%20Board%20Annual%20Report%202022-23_0.pdf">unrelated to suitability</a>. Housing scarcity played a significant role, with 59% of rejections (or 235 applications) citing a lack of suitable accommodation as one of the reasons parole was denied. This is playing out <a href="https://www.abc.net.au/news/2023-08-11/women-on-bail-parole-increased-risk-of-homelessness-qld/102717002">across the country</a>. Parole is vulnerable to community and media hype, and political knee-jerk reactions in response to high profile incidents involving a person on parole. Because of the actions of a few, parole as a process has been restricted for many. While the wider community are active in advocacy efforts to restrict parole from certain people or groups (for example, this petition for <a href="https://www.change.org/p/lyns-law-no-body-no-parole">Lyn’s Law in NSW</a>), public efforts to restrict parole seem at odds with its purposes. Despite this, research suggests when the public are educated about the purposes and intent of parole, they are more likely to be <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3125829">supportive of it</a>. The susceptibility of parole to media and community influence results in frequent, impactful changes affecting individuals inside and outside prisons. Headlines such as “walking free” have the potential to mislead the public on the purpose and structure of parole. Coverage should portray parole beyond mere early termination of a sentence by accurately reflecting its purpose and impact.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/226607/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/monique-moffa-1380936">Monique Moffa</a>, Lecturer, Criminology & Justice, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>; <a href="https://theconversation.com/profiles/alyssa-sigamoney-1375881">Alyssa Sigamoney</a>, Associate Lecturer in Criminology and Justice Studies, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>; <a href="https://theconversation.com/profiles/greg-stratton-161122">Greg Stratton</a>, Lecturer - Criminology and Justice Studies, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>; <a href="https://theconversation.com/profiles/jarryd-bartle-441602">Jarryd Bartle</a>, Associate Lecturer, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>, and <a href="https://theconversation.com/profiles/michele-ruyters-18446">Michele Ruyters</a>, Associate Dean, Criminology and Justice Studies, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/do-parolees-really-walk-free-busting-common-myths-about-parole-226607">original article</a>.

Legal

Pilot pitches in to free passenger stuck in plane bathroom

A pilot has been forced to abandon his post at the cockpit to rescue a passenger trapped in the bathroom of a plane. While onboard a Delta Airlines flight from Salt Lake City to New Orleans, a father of two named Brent became stuck in the bathroom for 35 minutes during the short domestic flight. When it was discovered that Brent was not breaking out of the bathroom by himself, the cabin crew, including the pilot, stepped in to free the 34-year-old dad. After being refused a refund by the airline's customer service, Brent's dissatisfied partner shared a video of the moment the staff all rallied to heave the door open. Recounting the tale on Reddit, the woman suggested that her husband had fled to the bathroom to have a break from his two young kids. She wrote, "After 5 minutes, I wondered what was going on. Was he using this time as a much-needed break from my children’s whiney demands and frequent tantrums? I didn’t blame him." Brent's partner went on to explain that it wasn't until she heard another passenger say the word "stuck" did she realise her husband's predicament. She turned around to see two members of the crew yanking at the door to the rear cubicle as she watched on while she kept one eye on her young kids. The flight attendants enlisted the help of a male passenger who also failed to provide the magic touch, before the pilot emerged, 20 minutes into the ordeal, to have a go. <iframe title="YouTube video player" src="https://www.youtube.com/embed/ZWOyr4J2OBo?si=FSdSkXFv4WlClKXB" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe> <aside> "It wasn't until Brent kicked the hell out of the door while the pilot was pulling as hard as possible that Brent finally made his escape," she wrote. Finishing off the post, the woman concluded that Delta asked her not to share the footage, filmed by another passenger who was closer to the end of the plane, but after not receiving a refund for their "terrible" journey, the mother decided to post them online. The post racked up hundreds of comments, with many people actually siding with the airline for not issuing a refund, suggesting that the author's response was not proportionate to what actually happened. Image credits: Reddit </aside>

Travel Trouble

Morbid reason why cruise ships throw "free ice cream parties" on board

Dara Starr Tucker, a former cruise ship employee has shared the morbid reason why they throw “free ice cream parties” on board. Tucker, a singer who spent six months living on a cruise ship in the Mediterranean and the Caribbean 10 years ago, shared what life was like at sea. In one of her latest videos, she answered one of her follower's question asking whether it was true that if cruise staff started giving away ice cream, it meant that they needed more freezer space for a body. “This is unfortunately often true,” she said. “If the crew suddenly makes a bunch of ice cream available to passengers, ‘Free ice cream party’, it is often because more people have died on the ship than they have room for in the morgue.” She said that most large ships are legally required to maintain a morgue and carry body bags in the event a passenger dies mid-journey and added that she “thankfully” didn't have to deal with the "morbid stuff". “But we were friends with some crew members who did deal with it and they said maybe four to 10 people die every cruise,” she claimed. “There are a lot of older people on ships, and often (out of) a ship that carried maybe 2500 to 3000 passengers on a typical cruise, four to 10 people would die. “So the morgue, I believe they said held about seven people, and if more than seven people died on that particular ship, they would have to start moving bodies to the freezer.” She claimed that if employees would have to "make room for the extra bodies" in the freezer, they would have to take out everything including ice cream. Her video has been viewed over 2.3 million times, with many other cruise ship employees confirming her claims. “Cruise ship medic here. Can confirm the morgue and ice cream correlation,” one said. “Former sailor here — yes, it is accurate. Sometimes space needs to be made in the freezer," another added. Image: TikTok

Travel Trouble

Flight cancelled after parents demand free upgrade for their child

A flight was delayed for hours before being ultimately cancelled after two parents demanded that their child was upgraded to first class for free. A plane in China was grounded for three hours after the parents caused a ruckus with the cabin crew, and were eventually kicked off the aircraft. According to a fellow passenger, the argument kicked off when an unsupervised child began to sob uncontrollably after boarding a flight from Chengdu to Beijing. As it turned out, the inconsolable toddler’s parents were seated in first class but had only bought their child an economy ticket. It was then that the angry dad confronted the staff, demanding that his son be moved to first class at no extra cost. According to the South China Morning Post, the irate dad explained that because he had already paid for two first class tickets, his child’s upgrade should be free. In the clip shot by a fellow passenger, the outraged dad began berating a group of passengers, crew members, and security guards as they repeatedly explained why his child isn’t entitled to an upgrade. “Stop swearing at me,” fumed the father. “You have no right to do that.” When a security guard attempts to de-escalate the situation, the parent lays into him, shouting: “What gives you the right to order me about?” This prompts a woman to retort: “You’ve wasted too much of our time and we won’t tolerate it any longer.” After three hours of back and forth, the couple were eventually kicked off the plane, while the flight was cancelled. The entitled passenger has since been rinsed on social media with one commenter fuming, “This man is so selfish.” Others suggested solutions for the father that didn’t involve the airline giving the man an extra first-class seat. “He can switch seats,” advised one person. “Let him sit in economy class, and have the mum take care of the child in the first-class cabin.” Some on social media were quick to chastise the airline for their handling of the situation, with one person writing, “Keeping the quarrel going for hours? The problem-solving skills of the crew are poor.” Image credits: Twitter

Travel Trouble

What are ‘good’ and ‘bad’ debts, and which should I pay off first?

<a href="https://theconversation.com/profiles/angel-zhong-1204643">Angel Zhong</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> With the cost of living soaring and many struggling to get a pay rise, it’s not surprising people are using debt to navigate life’s financial twists and turns. Owing money can sometimes feel challenging, but not all debts should keep you awake at night. So which debts are good and which are bad? And in what order should you pay them off? As it all depends on your personal circumstances, all I can offer is general information and not financial advice. Ideally, you should seek guidance from an accredited financial adviser. But in the meantime, here are some ideas to consider. <h2>What is a ‘good debt’?</h2> Good debts can be strategic tools and help build a solid foundation for your future. They usually increase your net worth by helping you generate income or buy assets that increase in value. With good debts, you usually get back more than what you pay for. They usually have lower interest rates and longer repayment terms. But personal finance is dynamic, and the line between good and bad debt can be nuanced. If not managed properly, even good debts can cause problems. Some examples of “good debts” might include: Mortgages: A mortgage allows you to buy a house, which is an asset that generally increases in value over time. You may potentially get tax advantages, such as <a href="https://www.ato.gov.au/forms-and-instructions/rental-properties-2023/other-tax-considerations">negative gearing</a>, through investment properties. However, it’s crucial not to overstretch yourself and turn a mortgage into a nightmare. As a rule of thumb, try avoid spending <a href="https://www.cnbc.com/select/mortgage-affordability/">more than 30% of your income</a> per year on your mortgage repayments. Student loans: Education is an investment in yourself. Used well, student loans (such as <a href="https://www.studyassist.gov.au/help-loans/hecs-help">HECS-HELP</a>) can be the ticket to a higher-paying job and better career opportunities. <h2>What is a ‘bad debt’?</h2> “Bad debts” undermine your financial stability and can hinder your financial progress. They usually come with high interest rates and short repayment terms, making them more challenging to pay off. They can lead to a vicious cycle of debt. Examples of bad debts include: Payday loans: A payday loan offers a quick fix for people in a financial tight spot. However, their steep interest rates, high fees and tight repayment terms often end up worsening a person’s financial problems. The interest and fee you may end up paying can get close to the loan amount itself. Credit card debt: Credit cards can be like quicksand for your finances. If you don’t pay off your purchase on time, you’ll be subject to an annual interest rate of around <a href="https://www.rba.gov.au/statistics/tables/">19.94%</a>. For a A$3,000 credit card debt, for example, that could mean paying nearly $600 annual interest. Carrying credit card debt from month to month can lead to a seemingly never-ending debt cycle. Personal loans: People usually take personal loans from a bank to pay for something special, such as a nice holiday or a car. They often come with higher interest rates, averaging around <a href="https://www.finder.com.au/personal-loans">10%</a>. Spending money that you don’t have can lead to prolonged financial headaches. Buy-now-pay-later services: Buy-now-pay-later services often provide interest-free instalment options for purchases. This can be tempting, but the account fees and late payment fees associated with buy-now-pay-later services can lead to a long-term financial hangover. The convenience and accessibility of buy-now-pay-later services can also make it easy to get further and further into debt. <h2>So in what order should I pay off my debts?</h2> There is no one right answer to this question, but here are three factors to consider. Prioritise high-interest debts: Start by confronting the debts with the highest interest rates. This typically includes credit card debt and personal loans. Paying off high-interest debts first can save you money and reduce your total debt faster. Negotiate interest rates or switch lenders: Don’t be shy. A simple call to your lender requesting a lower rate can make a significant difference. You may also take advantage of sign-on offers and refinancing your loan with a new lender. In the banking business, customers are not usually rewarded for their loyalty. Consider different repayment strategies: Choose a debt repayment strategy that aligns with your preferences. Some people get a psychological boost from paying off smaller debts first (this is often called the “<a href="https://www.wellsfargo.com/goals-credit/smarter-credit/manage-your-debt/snowball-vs-avalanche-paydown/#:%7E:text=The%20%22snowball%20method%2C%22%20simply,all%20accounts%20are%20paid%20off.">snowball method</a>”). Others focus on high-interest debts (often known as the “<a href="https://www.wellsfargo.com/goals-credit/smarter-credit/manage-your-debt/snowball-vs-avalanche-paydown/#:%7E:text=The%20%22snowball%20method%2C%22%20simply,all%20accounts%20are%20paid%20off.">avalanche method</a>”). Find what works for you. The most important thing is to have a plan and stick to it. Review the terms of each debt carefully. Certain loans offer flexibility in repayment schedules, while others may impose penalties for early settlement. Take note of these conditions as you develop your repayment plan. Debt can be a useful tool or a dangerous trap, depending on how you use it. By understanding the difference between good and bad debts, and by having a smart strategy for paying them off, you can take charge of your financial future.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/217779/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/angel-zhong-1204643">Angel Zhong</a>, Associate Professor of Finance, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/what-are-good-and-bad-debts-and-which-should-i-pay-off-first-217779">original article</a>.

Money & Banking

How is decaf coffee made? And is it really caffeine-free?

<a href="https://theconversation.com/profiles/lauren-ball-14718">Lauren Ball</a>, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> and <a href="https://theconversation.com/profiles/emily-burch-438717">Emily Burch</a>, <a href="https://theconversation.com/institutions/southern-cross-university-1160">Southern Cross University</a> Coffee is one of the most popular drinks in the world, and its high levels of caffeine are among the main reasons why. It’s a natural stimulant that provides an energy buzz, and we just can’t get enough. However, some people prefer to limit their caffeine intake <a href="https://pubmed.ncbi.nlm.nih.gov/12684194/">for health</a> or other reasons. Decaffeinated or “decaf” coffee is widely available, and its consumption is reported to be <a href="https://www.coffeebeanshop.com.au/coffee-blog/decaf-coffee-market-worth-2145-billion-by-2025-at-69">on the rise</a>. Here’s what you need to know about decaf coffee: how it’s made, the flavour, the benefits – and whether it’s actually caffeine-free. <h2>How is decaf made?</h2> Removing caffeine while keeping a coffee bean’s aroma and flavour intact isn’t a simple task. Decaf coffee is made by stripping green, unroasted coffee beans of their caffeine content and relies on the fact that <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6318762/#:%7E:text=Caffeine%20(Figure%201a)%20being,(15%20g%2FL).">caffeine dissolves</a> in water. Three main methods are used for removing caffeine: chemical solvents, liquid carbon dioxide (CO₂), or plain water with special filters. The additional steps required in all of these processing methods are why decaf coffee is often more expensive. <h2>Solvent-based methods</h2> Most decaf coffee is made using <a href="https://www.tandfonline.com/doi/epdf/10.1080/10408699991279231?needAccess=true">solvent-based</a> methods as it’s the cheapest process. This method breaks down into two further types: <a href="https://www.sciencedirect.com/science/article/abs/pii/B9780123849472001835">direct and indirect</a>. The direct method involves steaming the coffee beans and then repeatedly soaking them in a chemical solvent (usually methylene chloride or ethyl acetate) which binds to the caffeine and extracts it from the beans. After a pre-determined time, the caffeine has been extracted and the coffee beans are steamed once more to remove any residual chemical solvent. The indirect method still uses a chemical solvent, but it doesn’t come into direct contact with the coffee beans. Instead, the beans are soaked in hot water, then the water is separated from the beans and treated with the chemical solvent. The caffeine bonds to the solvent in the water and is evaporated. The caffeine-free water is then returned to the beans to reabsorb the coffee flavours and aromas. The solvent chemicals (particularly methylene chloride) used in these processes are a source of controversy around decaf coffee. This is because <a href="https://www.sciencedirect.com/topics/biochemistry-genetics-and-molecular-biology/dichloromethane">methylene chloride</a> is suggested to be mildly carcinogenic in high doses. Methylene chloride and ethyl acetate are commonly used in paint stripper, nail polish removers and degreaser. However, both the <a href="https://www.foodstandards.gov.au/code/pages/default.aspx">Australian New Zealand Food Standards Code</a> and <a href="https://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/cfrsearch.cfm?fr=173.255">the United States Food and Drug Administration</a> permit the use of these solvents to process decaf. They also have strict limits on the amount of the chemicals that can still be present on the beans, and in reality <a href="https://www.chemicals.co.uk/blog/how-dangerous-is-methylene-chloride">practically no solvent</a> is left behind. <h2>Non-solvent-based methods</h2> Non-solvent-based methods that use liquid carbon dioxide or water are becoming increasingly popular as they don’t involve chemical solvents. In the <a href="https://www.tandfonline.com/doi/pdf/10.1080/10408699991279231">CO₂ method</a>, liquid carbon dioxide is pumped into a high-pressure chamber with the beans, where it binds to the caffeine and is then removed through high pressure, leaving behind decaffeinated beans. The water method (also known as the Swiss water process) is exactly what it sounds like – it <a href="http://publication.eiar.gov.et:8080/xmlui/bitstream/handle/123456789/3234/ECSS%20Proceeding%20Final.pdf?sequence=1#page=294">involves extracting caffeine</a> from coffee beans using water. There are variations on this method, but the basic steps are as follows. For an initial batch, green coffee beans are soaked in hot water, creating an extract rich in caffeine and flavour compounds (the flavourless beans are then discarded). This green coffee extract is passed through activated charcoal filters, which trap the caffeine molecules while allowing the flavours to pass through. Once created in this way, the caffeine-free extract can be used to soak a new batch of green coffee beans – since the flavours are already saturating the extract, the only thing that will be dissolved from the beans is the caffeine. <figure><iframe src="https://www.youtube.com/embed/8531vyP7Z5U?wmode=transparent&start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe></figure> <h2>Is caffeine fully removed from decaf?</h2> Switching to decaf may not be as caffeine free as you think. It is unlikely that 100% of the caffeine will be successfully <a href="https://pubmed.ncbi.nlm.nih.gov/8603790/">stripped from the coffee beans</a>. Just like the caffeine content of coffee can vary, some <a href="https://pubmed.ncbi.nlm.nih.gov/17132260/">small amounts</a> of caffeine are still present in decaf. However, the amount is quite modest. You would need to drink more than ten cups of decaf to reach the caffeine level typically present in <a href="https://academic.oup.com/jat/article/30/8/611/714415">one cup of caffeinated coffee</a>. Australia <a href="https://www.foodstandards.gov.au/code/Documents/1.1.2%20Definitions%20v157.pdf">does not require</a> coffee roasters or producers to detail the process used to create their decaf coffee. However, you might find this information on some producers’ websites if they have chosen to advertise it. <h2>Does decaf coffee taste different?</h2> Some people say decaf tastes different. Depending on how the beans are decaffeinated, some aromatic elements may be co-extracted with the caffeine <a href="https://pubmed.ncbi.nlm.nih.gov/23745606/">during the process</a>. Caffeine also contributes to the bitterness of coffee, so when the caffeine is removed, so is <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8948847/">some of the bitterness</a>. <h2>Do caffeinated and decaf coffee have the same health benefits?</h2> The health benefits found for drinking decaf coffee are similar to that of caffeinated coffee, including a lower risk of type 2 diabetes, some cancers and overall <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5696634/">mortality</a>. More recently, coffee has been linked with improved weight management over time. Most of the health benefits have been shown by drinking <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5696634/">three cups</a> of decaf per day. Moderation is key, and remember that the greatest health benefits will come from having a <a href="https://theconversation.com/what-is-a-balanced-diet-anyway-72432">balanced diet</a>.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/215546/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/lauren-ball-14718">Lauren Ball</a>, Professor of Community Health and Wellbeing, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> and <a href="https://theconversation.com/profiles/emily-burch-438717">Emily Burch</a>, Dietitian, Researcher & Lecturer, <a href="https://theconversation.com/institutions/southern-cross-university-1160">Southern Cross University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/how-is-decaf-coffee-made-and-is-it-really-caffeine-free-215546">original article</a>.

Food & Wine

How to score yourself free onboard credit on your next cruise

Everybody loves to splurge on holidays especially when you’ve been given free credit! Here’s how to score yourself some free cash. Grab a deal With so many cruise lines now sailing out of Australia, they will all be competing hard for your business. You can book a great deal at any time of year and, alongside things like free upgrades or 50 per cent off for a second passenger, you’ll find onboard credit. Do your research and you could easily score yourself hundreds of dollars to spend onboard at no extra cost. Book through an agent Specialised cruise travel agents develop strong relationships with the lines and will be able to secure you the best price. As part of their offering, they can also throw in some free onboard credit. This could be with an individual shopfront agent or one of the larger online third parties, so look around for the best offers. And if you don’t see anything advertised directly, it never hurts to ask! Stay loyal to a line Most major cruise lines will have a dedicated loyalty scheme that operates sort of like a frequent flyer program. Cruise multiple times with the one line and they will reward you with special fares, upgrades and (you guessed it) onboard credit. Make sure you use your unique identification number every time you book so that you don’t miss out on any of your points. Book another cruise If you’re loving your cruise, take advantage of the onboard sales office and book another one right away. You’ll be able to take advantage of exclusive offers that you won’t find on land and many of these include onboard credit. The line will be eager to get you to sign up again before you can look at other ships, so it’s a chance for you to grab some big bonuses. Make the best of a bad situation When something goes wrong on a cruise (like a change of itinerary, missing a port or a fault with your cabin) the line will very often compensate you with onboard credit. We’re not saying you can create a problem to grab some cash, but if you have a legitimate problem then alert the crew as soon as possible and see if they can offer you some in exchange.

Cruising

"Now he's free": Aussie Marvel actor's son tragically dies

Marvel actor Eka Darville has announced the heartbreaking news that his 10-year-old son has died. Earlier this year, Darville shared that his son, Mara, had been diagnosed with a rare and aggressive form of brain cancer. Despite undergoing numerous surgeries and aggressive treatments, Mara passed away. The Australian actor's mother, Malaika, shared the devastating news about her grandson on the GoFundMe page she set up to help the family cope with the financial stress of having a sick child. She wrote, “I still wanted to come together in this prayer because he’s still always gonna be with us and he’s still with us.” “You can imagine the amount of sadness and grief of Eka, Lila and Lila’s parents, his grandparents, myself, his little brothers." “But at the same time, there’s a lot of joy. There’s a lot of peace. There’s a lot of stillness in the house after such a long struggle for 463 days since the whole ordeal began. And now he’s free. Now he’s dancing in the light." “We all see it, we feel it and I know that many of you, like myself, loved Mana eternally,” added the grandmother. The family's life turned upside down when Mara collapsed on a beach in July 2022, as he suffered seizures for six months before receiving his brain cancer diagnosis. The Australian actor is best known for his role in the smash hit Marvel series Jessica Jones alongside David Tennant. Image credits: Instagram

Caring

5 signs your friend is struggling with serious debt

Money is always going to be a sensitive topic, and part of the reason for this is the fact that so many people willingly suffer in silence. But if you notice the warning signs, you have to take action. Here are five signs your friend is struggling with serious debt. 1. They keep cancelling plans Whether you’re talking about dinner, drinks or even just the occasional coffee, if your friend keeps cancelling plans (particularly if they didn’t have a reputation for doing so in the past) that could be a sign that they’re struggling with their finances. 2. Unopened bills If you’re visiting your friend’s home and you notice a pile of unopened bills, this is a classic sign of money troubles. Generally these bills are left unopened because the recipient does not want to see what’s inside, or deal with the monetary consequences. 3. Sudden changes in behaviour Does your friend seem more fidgety that usual? Do they become cagey or defensive when money matters are mentioned? Are they bitter when discussing other people’s spending habits? This could indicate stress about their own individual financial situation. 4. Ignoring calls and knocks on the door If you’ve been staying at your friend’s house and noticed a knock on the door or phone that’s been left unanswered on multiple occasions this could be a very bad sign. Often this is out of fear of dealing with a debt collector who could be on the other side. 5. Not adapting to changes in circumstances very well Lifestyle changes generally come with a change in financial circumstances, but if you’ve noticed a sign that your friend is living in the same way that may be a sign that they’re ignoring the demands of their new situation and not putting themselves in a position to succeed. What can I do? Experts recommend taking the following steps if you know a friend who is struggling to deal with debt. That being said, sometimes just providing someone to talk to about it can make all the difference. <ul> <li>Encourage them to talk to their credit provider and discuss payment options.</li> <li>Talk about applying or a hardship variation to help make payments.</li> <li>Direct them to a financial counselling service.</li> <li>Encourage them to take up free legal advice.</li> </ul> Image credits: Getty Images

Money & Banking

Forcing people to repay welfare ‘loans’ traps them in a poverty cycle – where is the policy debate about that?

<a href="https://theconversation.com/profiles/hanna-wilberg-1466649">Hanna Wilberg</a>, <a href="https://theconversation.com/institutions/university-of-auckland-1305">University of Auckland</a> The National Party’s <a href="https://www.1news.co.nz/2023/09/26/more-sanctions-for-unemployed-beneficiaries-under-national/">pledge to apply sanctions</a> to unemployed people receiving a welfare payment, if they are “persistently” failing to meet the criteria for receiving the benefit, has attracted plenty of comment and <a href="https://www.1news.co.nz/2023/09/26/nationals-benefit-sanctions-plan-cruel-dehumanising-greens/">criticism</a>. Less talked about has been the party’s promise to index benefits to inflation to keep pace with the cost of living. This might at least provide some relief to those struggling to make ends meet on welfare, though is not clear how much difference it would make to the current system of indexing benefits to wages. In any case, this alone it is unlikely to break the cycle of poverty many find themselves in. One of the major drivers of this is the way the welfare system pushes some of the most vulnerable people into debt with loans for things such as school uniforms, power bills and car repairs. The government provides one-off grants to cover benefit shortfalls. But most of these grants are essentially loans. People receiving benefits are required to repay the government through weekly deductions from their normal benefits – which leaves them with even less money to survive on each week. With <a href="https://www.stuff.co.nz/pou-tiaki/132980318/auckland-mother-serves-up-cereal-for-dinner-due-to-rising-food-costs">rising costs</a>, the situation is only getting worse for many of the 351,756 New Zealanders <a href="https://figure.nz/chart/TtiUrpceJruy058e-ITw010dHsM6bvA2a">accessing one of the main benefits</a>. <h2>Our whittled down welfare state</h2> Broadly, there are three levels of government benefits in our current system. The main benefits (such as jobseeker, sole parent and supported living payment) <a href="https://www.workandincome.govt.nz/products/benefit-rates/benefit-rates-april-2023.html">pay a fixed weekly amount</a>. The jobseeker benefit rate is set at NZ$337.74 and sole parents receive $472.79 a week. Those on benefits have access to a second level of benefits – weekly supplementary benefits such as an <a href="https://www.workandincome.govt.nz/products/a-z-benefits/accommodation-supplement.html">accommodation supplement</a> and other allowances or tax credits. The third level of support is one-off discretionary payments for specific essential needs. Those on benefits cannot realistically make ends meet without repeated use of these one-off payments, unless they use assistance from elsewhere – such as family, charity or borrowing from loan sharks. This problem has been building for decades. <h2>Benefits have been too low for too long</h2> In the 1970s, the <a href="https://mro.massey.ac.nz/handle/10179/12967">Royal Commission on Social Security</a> declared the system should provide “a standard of living consistent with human dignity and approaching that enjoyed by the majority”. But Ruth Richardson’s “<a href="https://www.stuff.co.nz/the-press/christchurch-life/124978983/1991-the-mother-of-all-budgets">mother of all budgets</a>” in 1991 slashed benefits. Rates never recovered and today’s <a href="https://www.1news.co.nz/2022/03/29/benefit-increases-will-still-leave-families-locked-in-poverty/">benefits are not enough to live on</a>. In 2018, the <a href="https://www.weag.govt.nz/">Welfare Expert Advisory Group</a> looked at how much money households need in two lifestyle scenarios: bare essentials and a minimum level of participation in the community, such as playing a sport and taking public transport. The main benefits plus supplementary allowances did not meet the cost of the bare essentials, let alone minimal participation. The Labour government has since <a href="https://www.beehive.govt.nz/release/government-delivers-income-increases-over-14-million-new-zealanders">increased benefit rates</a>, meaning they are now slightly above those recommended by the advisory group. But those recommendations were made in 2019 and don’t take into account the <a href="https://www.stats.govt.nz/news/annual-inflation-at-6-0-percent">sharp rise in inflation</a> since then. Advocacy group <a href="https://fairerfuture.org.nz/">Fairer Future</a> published an updated assessment in 2022 – nine out of 13 types of households still can’t meet their core costs with the current benefit rates. <h2>How ‘advances’ create debt traps</h2> When they don’t have money for an essential need, people on benefits can receive a “special needs grant”, which doesn’t have to be repaid. But in practice, Work and Income virtually never makes this type of grant for anything except food and some other specific items, such as some health travel costs or emergency dental treatment. For <a href="https://www.1news.co.nz/2023/02/27/very-stressful-beneficiary-says-he-cant-afford-msd-debt/">all other essential needs</a> – such as school uniforms, car repairs, replacing essential appliances, overdue rent, power bills and tenancy bonds – a one-off payment called an “advance” is used. Advances are loans and have to be paid back. There are several issues with these types of loans. First, people on benefits are racking up thousands of dollars worth of debts to cover their essential needs. It serves to trap them in financial difficulties for the foreseeable future. As long as they remain on benefits or low incomes, it’s difficult to repay these debts. And the <a href="https://www.legislation.govt.nz/act/public/2018/0032/latest/whole.html">Social Security Act 2018</a> doesn’t allow the Ministry of Social Development (MSD) to waive debts. <h2>Contradictory policies</h2> Another problem is that people on benefits have to start repaying their debt straight away, with weekly deductions coming out of their already limited benefit. Each new advance results in a further weekly deduction. Often these add up to $50 a week or more. MSD policy says repayments should not add up to more than $40 a week, but that is often ignored. This happens because the law stipulates that each individual debt should be repaid in no more than two years, unless there are exceptional circumstances. Paying this debt off in two years often requires total deductions to be much higher than $40. The third issue is that one-off payments can be refused regardless of the need. That is because there are two provisions pulling in opposite directions. On the one hand the law says a payment should be made if not making it would cause serious hardship. But on the other hand, the law also says payments should not be made if the person already has too much debt. People receiving benefits and their case managers face the choice between more debt and higher repayments, or failing to meet an essential need. <h2>Ways to start easing the burden</h2> So what is the fix? A great deal could be achieved by just changing the policies and practices followed by Work and Income. Case managers have the discretion to make non-recoverable grants for non-food essential needs. These could and should be used when someone has an essential need, particularly when they already have significant debt. Weekly deductions for debts could also be automatically made very low. When it comes to changing the law, the best solution would be to make weekly benefit rates adequate to live on. The government could also make these benefit debts similar to student loans, with no repayments required until the person is off the benefit and their income is above a certain threshold. However we do it, surely it must be time to do something to fix this poverty trap.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/212528/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/hanna-wilberg-1466649">Hanna Wilberg</a>, Associate professor - Law, <a href="https://theconversation.com/institutions/university-of-auckland-1305">University of Auckland</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/forcing-people-to-repay-welfare-loans-traps-them-in-a-poverty-cycle-where-is-the-policy-debate-about-that-212528">original article</a>.

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