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The biggest faux pas for self-funded retirees

Whether you have been retired for some time or are still looking forward to the time you can step back, chances are there are important considerations you may have overlooked. From planning and pensions to family and housing, these are the biggest self-funded retirement mistakes I come across, and some insights into how to avoid repeating them: <ol> <li>Lack of a plan</li> </ol> Not having a retirement plan is perhaps the most basic faux pas, but often the most costly. A detailed plan should cover things like: <ul> <li>When you AND your partner will retire </li> <li>Where you will live (you may want to downsize, relocate, seek assisted living)</li> <li>Anticipated living costs (living situation, health, lifestyle)</li> <li>How you will spend your time (hobbies, travel, volunteering, time with family)</li> <li>Strategies to maximise investments and superannuation</li> <li>Tax minimisation strategies</li> </ul> Remember: failing to plan = planning to fail. <ol start="2"> <li>Poor planning</li> </ol> Having a plan is the starting point, but it won’t get you far if it’s incomplete, not updated as circumstances change, or omits critical factors. For couples, not considering age differences is a big mistake. One partner retiring before the other can have big shifts on financial and tax dynamics and even the relationship itself. Then there is end-of-life care, particularly if the younger partner is still working. Not building in a safety buffer is another no-no. Too many retirees have been caught out by the high inflation of recent years, having calculated their anticipated income needs on much lower living costs. Balance short-term and long-term goals: being overly conservative early on can limit your financial situation down the track. And no plan is complete without contingencies for worst case scenarios – insurances, protections, back-up options. <ol start="3"> <li>Insecure housing </li> </ol> Government data has long shown major differences in quality of life for retirees who own their home versus those who don’t. Homelessness or insecure housing, the mercy of the rental market, and inability to customise your home as you age or if you need specialised support with disability or health issues are some of the challenges renters face. Furthermore, public estimates of how much the average Australian needs to retire typically assume home ownership – meaning rent is not part of that calculation. That’s a huge living cost you may not have factored into your retirement planning. <ol start="4"> <li>Unclaimed pensions</li> </ol> Contrary to popular belief, self-funded retirement and claiming a pension are not mutually exclusive. You may be eligible for a part-pension, calculated pro-rata according to the value of your assets and other income. Claiming a part-pension, no matter how small it may be, reduces how much income you need to draw down from super – making it last longer. Don’t fall into another common trap when applying – overestimating your assets. It’s easy to assume your non-monetary assets are worth more than what they really are, reducing how much pension you receive or negating your eligibility altogether. <ol start="5"> <li>Depleted Bank of Mum and Dad</li> </ol> With home ownership increasingly out of reach for younger adults, the Bank of Mum and Dad is often sought to bridge the gap. How you do so will impact your own situation. Giving more than you can afford can leave you overstretched. Missed loan repayments could see you fall behind on your own bills. Not putting agreements in writing can lead to disputes down the track. Having a loan guarantee called in could see you homeless. Be wise about decisions you make here and don’t let heartstrings cloud your judgement. <ol start="6"> <li>Suffering in silence</li> </ol> Elder abuse is a sad but significant problem. Given they have money in the bank, self-funded retirees are often the most vulnerable. Its effects can be far-reaching, impacting your mental and physical health, financial wellbeing, social interactions, and quality of life. Be aware of <a href="https://www.oversixty.com.au/finance/retirement-income/are-you-a-victim-of-elder-abuse-without-even-realising-it">the signs that something isn’t right</a>. If you recognise it happening to you – or someone you know – speak up and seek help. <ol start="7"> <li>Forgoing professional advice</li> </ol> How much of the above details did you already know? Chances are, not all of them. And that’s just the tip of the iceberg. Money is a complicated business and you simply don’t know what you don’t know, which is why seeking independent, tailored advice from a professional is so important. A good financial advisor can help you identify new opportunities and manage risks you may not have considered, limit expenses and also work with your accountant to minimise your tax. Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a> Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754. Image credits: Shutterstock

Retirement Income

Funding for refugees has long been politicized − punitive action against UNRWA and Palestinians fits that pattern

<a href="https://theconversation.com/profiles/nicholas-r-micinski-207353">Nicholas R. Micinski</a>, <a href="https://theconversation.com/institutions/university-of-maine-2120">University of Maine</a> and <a href="https://theconversation.com/profiles/kelsey-norman-862895">Kelsey Norman</a>, <a href="https://theconversation.com/institutions/rice-university-931">Rice University</a> At least a dozen countries, including the U.S., have <a href="https://news.un.org/en/story/2024/01/1145987">suspended funding to the UNRWA</a>, the United Nations agency responsible for delivering aid to Palestinian refugees. This follows allegations made by Israel that <a href="https://www.wsj.com/world/middle-east/at-least-12-u-n-agency-employees-involved-in-oct-7-attacks-intelligence-reports-say-a7de8f36">12 UNRWA employees participated</a> in the Oct. 7, 2023, Hamas attack. The UNRWA responded by <a href="https://www.reuters.com/world/middle-east/un-palestinian-refugee-agency-investigates-staff-suspected-role-israel-attacks-2024-01-26/">dismissing all accused employees</a> and opening an investigation. While the seriousness of the accusations is clear to all, and the U.S. has been keen to <a href="https://www.nytimes.com/2024/01/30/us/politics/aid-gaza-israel.html">downplay the significance</a> of its pause in funding, the action is not in keeping with precedent. Western donors did not, for example, defund other U.N. agencies or peacekeeping operations amid accusations of <a href="https://www.hrw.org/news/2020/01/11/un-peacekeeping-has-sexual-abuse-problem">sexual assault</a>, <a href="https://www.justice.gov/usao-sdny/pr/former-un-general-assembly-president-and-five-others-charged-13-million-bribery-scheme">corruption</a> or <a href="https://www.hrw.org/legacy/summaries/s.bosnia9510.html">complicity in war crimes</a>. In real terms, the funding cuts to the UNRWA will affect <a href="https://www.unrwa.org/where-we-work/gaza-strip">1.7 million Palestinian refugees in Gaza</a> along with an additional 400,000 Palestinians without refugee status, many of whom benefit from the UNRWA’s infrastructure. Some critics have gone further and said depriving the agency of funds <a href="https://jacobin.com/2024/01/unrwa-defunding-gaza-israel">amounts to collective punishment</a> against Palestinians. Refugee aid, and humanitarian aid more generally, is theoretically meant to be neutral and impartial. But as experts in <a href="https://www.cambridge.org/core/books/reluctant-reception/558E2A93FF99B8F295347A8FA2053698">migration</a> <a href="https://www.routledge.com/UN-Global-Compacts-Governing-Migrants-and-Refugees/Micinski/p/book/9780367218836">and</a> <a href="https://press.umich.edu/Books/D/Delegating-Responsibility">international relations</a>, we know funding is often used as a foreign policy tool, whereby allies are rewarded and enemies punished. In this context, we believe the cuts in funding for the UNRWA fit a wider pattern of the politicization of aid to refugees, particularly Palestinian refugees. <h2>What is the UNRWA?</h2> The UNRWA, short for the U.N. Relief and Works Agency for Palestine Refugees in the Near East, was established two years after about <a href="https://theconversation.com/the-nakba-at-75-palestinians-struggle-to-get-recognition-for-their-catastrophe-204782">750,000 Palestinians were expelled or fled from their homes</a> during the months leading up to the creation of the state of Israel in 1948 and the subsequent Arab-Israeli war. Prior to the UNRWA’s creation, international and local organizations, many of them religious, provided services to displaced Palestinians. But after <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">surveying the extreme poverty</a> and dire situation pervasive across refugee camps, the U.N. General Assembly, including all Arab states and Israel, voted to create the UNRWA in 1949. Since that time, <a href="https://www.unrwa.org/what-we-do">the UNRWA has been the primary aid organization</a> providing food, medical care, schooling and, in some cases, housing for the 6 million Palestinians living across its five fields: Jordan, Lebanon, Syria, as well as the areas that make up the occupied Palestinian territories: the West Bank and Gaza Strip. The mass displacement of Palestinians – known as the <a href="https://theconversation.com/the-nakba-at-75-palestinians-struggle-to-get-recognition-for-their-catastrophe-204782">Nakba, or “catastrophe</a>” – occurred prior to the <a href="https://www.unhcr.org/about-unhcr/who-we-are/1951-refugee-convention">1951 Refugee Convention</a>, which defined refugees as anyone with a well-founded fear of persecution owing to “events occurring in Europe before 1 January 1951.” Despite a <a href="https://www.unhcr.org/sites/default/files/legacy-pdf/4ec262df9.pdf">1967 protocol extending the definition</a> worldwide, Palestinians are still excluded from the primary international system protecting refugees. While the UNRWA is responsible for providing services to Palestinian refugees, the United Nations also created the U.N. Conciliation Commission for Palestine in 1948 to seek a <a href="https://www.refworld.org/docid/4fe2e5672.html">long-term political solution</a> and “to facilitate the repatriation, resettlement and economic and social rehabilitation of the refugees and the payment of compensation.” As a result, the UNRWA does not have a mandate to push for the traditional durable solutions available in other refugee situations. As it happened, the conciliation commission was active only for a few years and has since been sidelined in favor of the U.S.-brokered peace processes. <h2>Is the UNRWA political?</h2> The UNRWA has been <a href="https://www.migrationpolicy.org/article/palestinian-refugees-dispossession">subject</a> to political headwinds since its inception and especially during periods of heightened tension between Palestinians and Israelis. While it is a U.N. organization and thus ostensibly apolitical, it has <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">frequently been criticized</a> by Palestinians, Israelis as well as donor countries, including the United States, for acting politically. The UNRWA performs statelike functions across its five fields – including education, health and infrastructure – but it is restricted in its mandate from performing political or security activities. Initial Palestinian objections to the UNRWA stemmed from the organization’s early focus on economic integration of refugees into host states. Although the UNRWA officially adhered to the U.N. General Assembly’s <a href="https://www.unrwa.org/content/resolution-194">Resolution 194</a> that called for the return of Palestine refugees to their homes, U.N., U.K. and U.S. <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">officials searched</a> for means by which to resettle and integrate Palestinians into host states, viewing this as the favorable political solution to the Palestinian refugee situation and the broader Israeli-Palestinian conflict. In this sense, Palestinians perceived the UNRWA to be both highly political and actively working against their interests. In later decades, the UNRWA <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">switched its primary focus</a> from jobs to education at the urging of Palestinian refugees. But the UNRWA’s education materials were <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">viewed</a> by Israel as further feeding Palestinian militancy, and the Israeli government insisted on checking and approving all materials in Gaza and the West Bank, which it has occupied since 1967. While Israel has <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">long been suspicious</a> of the UNRWA’s role in refugee camps and in providing education, the organization’s operation, which is internationally funded, <a href="https://www.crisisgroup.org/middle-east-north-africa/east-mediterranean-mena/israelpalestine/242-unrwas-reckoning-preserving-un-agency-serving-palestinian-refugees">also saves</a> Israel millions of dollars each year in services it would be obliged to deliver as the occupying power. Since the 1960s, the U.S. – UNRWA’s primary donor – and other Western countries have <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">repeatedly expressed their desire</a> to use aid to prevent radicalization among refugees. In response to the increased presence of armed opposition groups, the <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">U.S. attached a provision</a> to its UNRWA aid in 1970, requiring that the “UNRWA take all possible measures to assure that no part of the United States contribution shall be used to furnish assistance to any refugee who is receiving military training as a member of the so-called Palestine Liberation Army (PLA) or any other guerrilla-type organization.” The UNRWA adheres to this requirement, even publishing an annual list of its employees so that host governments can vet them, but it also <a href="https://www.crisisgroup.org/middle-east-north-africa/east-mediterranean-mena/israelpalestine/242-unrwas-reckoning-preserving-un-agency-serving-palestinian-refugees">employs 30,000 individuals</a>, the vast majority of whom are Palestinian. Questions over the links of the UNRWA to any militancy has led to the rise of Israeli and international <a href="https://cufi.org/issue/unrwa-teachers-continue-to-support-antisemitism-terrorism-on-social-media-un-watch/">watch groups</a> that document the social media activity of the organization’s large Palestinian staff. <h2>Repeated cuts in funding</h2> The United States has used its money and power within the U.N. to block criticism of Israel, vetoing at least <a href="https://www.un.org/depts/dhl/resguide/scact_veto_table_en.htm">45 U.N. resolutions</a> critical of Israel. And the latest freeze is not the first time the U.S. has cut funding to the UNRWA or other U.N. agencies in response to issues pertaining to the status of Palestinians. In 2011, the <a href="https://www.reuters.com/article/idUSTRE79U5ED/#:%7E:text=WASHINGTON%20(Reuters)%20%2D%20The%20United,grant%20the%20Palestinians%20full%20membership.">U.S. cut all funding to UNESCO</a>, the U.N. agency that provides educational and cultural programs around the world, after the agency voted to admit the state of Palestine as a full member. The Obama administration defended the move, claiming it was required by a 1990s law to defund any U.N. body that admitted Palestine as a full member. But the impact of the action was nonetheless severe. Within just four years, UNESCO was <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/1758-5899.12459">forced to cut its staff in half</a> and roll back its operations. President Donald Trump later <a href="https://www.pbs.org/newshour/politics/u-s-and-israel-officially-withdraw-from-unesco">withdrew the U.S. completely from UNESCO</a>. In 2018, the Trump administration paused its <a href="https://www.nytimes.com/2018/08/31/us/politics/trump-unrwa-palestinians.html">US$60 million contribution to the UNRWA</a>. Trump claimed the pause would create political pressure for Palestinians to negotiate. President Joe Biden restarted U.S. contributions to the UNRWA in 2021. <h2>Politicization of refugee aid</h2> Palestinian are not the only group to suffer from the politicization of refugee funding. After World War II, states established different international organizations to help refugees but strategically excluded some groups from the refugee definition. For example, the U.S. funded the <a href="https://www.nationalww2museum.org/war/articles/last-million-eastern-european-displaced-persons-postwar-germany">U.N. Relief and Rehabilitation Administration to help resettle displaced persons after World War II</a> but resisted Soviet pressure to forcibly repatriate Soviet citizens. The U.S. also created a separate organization, <a href="https://academic.oup.com/ijrl/article-abstract/1/4/501/1598187">the precursor to the International Organization for Migration</a>, to circumvent Soviet influence. In many ways, the UNRWA’s existence and the exclusion of Palestinian refugees from the wider refugee regime parallels this dynamic. Funding for refugees has also been politicized through the earmarking of voluntary contributions to U.N. agencies. Some agencies receive funding from U.N. dues; but the UNRWA, alongside the U.N. High Commissioner for Refugees and the International Organization for Migration, receive the majority of their funding from voluntary contributions from member states. These contributions can be earmarked for specific activities or locations, leading to donors such as the <a href="https://www.peio.me/wp-content/uploads/2019/01/PEIO12_paper_107.pdf">U.S. or European Union dictating which refugees get aid and which do not</a>. Earmarked contributions amounted to nearly <a href="https://unsceb.org/fs-revenue-agency">96% of the UNHCR’s budget, 96% of the IOM’s budget and 74% of UNRWA funding in 2022</a>. As a result, any cuts to UNRWA funding will affect its ability to service Palestinian refugees in Gaza – especially at a time when so many are <a href="https://www.cnn.com/2024/01/30/middleeast/famine-looms-in-gaza-israel-war-intl/index.html">facing hunger, disease and displacement</a> as a result of war.<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/222263/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/nicholas-r-micinski-207353">Nicholas R. Micinski</a>, Assistant Professor of Political Science and International Affairs, <a href="https://theconversation.com/institutions/university-of-maine-2120">University of Maine</a> and <a href="https://theconversation.com/profiles/kelsey-norman-862895">Kelsey Norman</a>, Fellow for the Middle East, Rice University's Baker Institute for Public Policy, <a href="https://theconversation.com/institutions/rice-university-931">Rice 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/funding-for-refugees-has-long-been-politicized-punitive-action-against-unrwa-and-palestinians-fits-that-pattern-222263">original article</a>.

Money & Banking

Couple who found love in chemotherapy raise funds for final trip

Ainslie Plumb, 22, and Joe Fan, 29, found love in an unexpected place, at the Royal Brisbane and Women’s Hospital. The couple met in 2022 while they were both undergoing leukaemia treatment. “We met at an event for young people with cancer and became friends following that,” Plumb told 7News. “(We) would hang out during our hospital stays, I asked him out in October 2022 and (we) have been together ever since.” While Plumb successfully entered remission, last October, Fan was told that he was now terminal, as doctors had run out of options to treat his Philadelphia chromosome positive acute lymphoblastic leukaemia. With only months left to live, Fan, who has actively given back to the hospital and cancer community by playing his violin for patients and staff and worked with the Queensland Youth Cancer Service, has one final wish - to travel. The couple have set a <a href="https://www.gofundme.com/f/help-joe-live-his-dreams" target="_blank" rel="noopener">GoFundMe</a>, to help raise funds which cover flights, accommodation and specialised travel insurance, for Fan's final trip. “I go through my cancer treatments and observe the toll that takes on my physical and mental wellbeing,” Fan said. “The end of a trip can hopefully mark the start of another — and I have held onto hope, looked forward and dreamed for one more trip, more time, one more experience with that someone I love.” Their first destination will be Taiwan and Hong Kong, where Fan's parents are from and where he spent a majority of his childhood. They also intend to travel to New Zealand and Western Australia to swim with whale sharks at Ningaloo in the state’s north. “We’re aiming at going at the end of February to give us time to co-ordinate with his doctors around his appointments and infusions, which are all booked in advance,” Plumb said. “We recently reached 75 per cent on the fundraiser and are hoping to hit 100 per cent perhaps by the end of January.” As of today, the couple have successfully raised over $21,000 from their $20,000 goal, and have thanked everyone in their community and strangers for their support. “Truly, words do not suffice,” the couple said. Images: 7News

Relationships

Resistance to mega-tourism is rising in the South Pacific – but will governments put words into action?

With COVID-19 travel restrictions largely a thing of the past for Australian and <a href="https://www.newshub.co.nz/home/travel/2022/12/fiji-more-popular-with-kiwi-tourists-than-it-was-pre-covid-19.html">New Zealand tourists</a>, Pacific destinations are enjoying the return of visitors – albeit at a <a href="https://devpolicy.org/the-pacific-emerging-from-covid-slowly-20221019/">slower pace</a> than in other parts of the world. Tourism in Fiji, Samoa, Vanuatu and the Cook Islands was <a href="https://www.imf.org/-/media/Files/Countries/ResRep/pis-region/small-states-monitor/pacific-islands-monitor-issue-17-october-2022.ashx">hit hard by the pandemic</a>, but <a href="https://www.massey.ac.nz/about/news/pacific-islands-resilient-as-covid-19-topples-tourism/">patience and resilience</a> are starting to pay off. Foreign dollars are once again circulating in those small economies. Recently, <a href="https://www.mvariety.com/business/kiribati-welcomes-first-cruise-ship-visit/article_30ca4be0-b0f7-11ed-9b9d-93619a4dfba6.html">Kiribati welcomed</a> its first international cruise ship since 2020. But this isn’t a simple case of returning to normal. The past three years have allowed time for reflection, leading to a rising awareness of <a href="https://southpacificislands.travel/pacific-sustainable-tourism-leadership-summit-calls-on-pacific-leaders-to-work-together-to-build-resilient-futures/">possible alternatives</a> to pre-pandemic tourism models. From senior levels within governments to grassroots tourism operators and citizens, there has been serious discussion about the resumption of business as usual, including several <a href="https://southpacificislands.travel/2021-ends-on-a-high-with-pacific-islands-tourism-research-symposium/">regional symposiums</a> hosted by the South Pacific Tourism Organisation. Issues of sovereignty and future resilience have been very much to the fore – quite untypical in a global tourism industry largely focused on <a href="https://etc-corporate.org/news/europes-tourism-rebound-predicted-to-continue-into-2023/">boosting numbers</a> as soon as possible. Questions remain, however, about the gap between rhetoric and reality. <h2>Flipping the narrative</h2> The <a href="https://southpacificislands.travel/2022-pacific-sustainable-tourism-leadership-summit/">Pacific Sustainable Tourism Leaders Summit</a> in November 2022 brought together tourism ministers and industry stakeholders to discuss the future of regional tourism. This led to a <a href="https://southpacificislands.travel/pacific-sustainable-tourism-leadership-summit-calls-on-pacific-leaders-to-work-together-to-build-resilient-futures/">regional commitment</a> signed by 11 countries focused on promoting sustainable tourism. Essentially, the aim is to flip the narrative: rather than Pacific nations being seen as dependent on tourism, regional tourism itself depends on the Pacific and its people surviving and thriving. Accordingly, Pacific countries are calling for fairer and more meaningful relationships with tourism partners. Cook Islands’ associate minister of foreign affairs and immigration, Tingika Elikana, urged other Pacific leaders at the summit to rebuild tourism in a way that was <a href="https://www.fijitimes.com/inclusive-pacific-summit-calls-on-regional-leaders-to-work-together/">equitable and inclusive</a>, "[it] is crucial that lessons are learned from recent crises and that steps are taken to embed long-term inclusivity, sustainability, and resilience into our tourism offering as it faces evolving challenges and risks." Vanuatu has been heading in this direction since early in the pandemic, when it made “destination wellbeing” <a href="https://www.traveldailymedia.com/vanuatu-tourism-adopts-well-being-approach-for-covid-19-recovery/">central to its tourism recovery</a>. The aim of “moving beyond solely measuring visitor arrivals and contribution to GDP” then fed into the country’s <a href="https://tourism.gov.vu/images/DoT-Documents/Presentations/Vanuatu_Sustainable_Tourism_Strategy_2020-2030-2020_.pdf">Sustainable Tourism Strategy</a>, launched at the height of the pandemic. <h2>Push-back on resorts and cruise ships</h2> This reappraisal of scale and priorities has perhaps been most evident in Fiji where there has been <a href="https://www.fijitimes.com/project-unoriginal/">strong opposition</a> to a US$300 million mega-project proposed by Chinese developers. The hotel, apartment and marina complex would be built in an area containing one of the last remaining remnants of mangrove forest near the capital, Suva. Conservationists and local residents have been critical of the <a href="https://www.rnz.co.nz/international/pacific-news/484141/conservationist-calls-on-fiji-govt-to-preserve-rare-mangrove">environmental</a> and <a href="https://www.fijitimes.com/how-can-fiji-supply-water-to-project/">infrastructural</a> impact of the proposed development, as well as the <a href="https://www.fijitimes.com/project-unoriginal/">authenticity of its design</a>. There is <a href="https://www.rnz.co.nz/international/pacific-news/484710/costly-development-of-suva-forest-may-now-not-happen">now doubt</a> about whether the government will renew the developer’s lease, due to expire in June. The minister for lands and mineral resources has said “there’s been a lack of transparency” from the developers, and that he “will continue to monitor the remaining conditions of the development lease”. A leading opponent of the project, Reverend James Bhagwan, <a href="https://www.rnz.co.nz/international/pacific-news/484710/costly-development-of-suva-forest-may-now-not-happen">told Radio New Zealand</a>, "we'’re not anti-development, but what we’re saying is we need to look at development from a perspective that places the environment at the centre, not at the periphery. There is a precedent here: approval for a multi-million-dollar resort and casino development on Malolo island was revoked in 2019 after another Chinese developer, Freesoul Investments, destroyed part of a reef, dumped waste and disrupted traditional fisheries. In 2022, the High Court fined the company <a href="https://www.newsroom.co.nz/resort-developers-found-guilty-over-fiji-island-disaster-1">FJD$1 million</a>. It was the first time a developer had been punished for an “environmental crime”. Environmental concerns are also causing other Pacific countries to resist a return to mass tourism. In Rarotonga, Cook Islands, annual visitor numbers before the pandemic were ten times the island’s local population. The ability to cope with that level of tourism has since been <a href="https://www.rnz.co.nz/international/pacific-news/443141/cook-islanders-considering-how-much-tourism-is-too-much">seriously questioned</a>. And in French Polynesia, the government has <a href="https://www.nzherald.co.nz/travel/french-polynesia-the-latest-country-to-ban-mega-cruise-ships/RXY2PDLCWPAIZRVNENLHJ6Z2N4/">banned port calls</a> for cruise ships with a capacity greater than 3,500 passengers. The decision was based on concerns about air pollution, stress on the marine environment and social impacts. Daily cruise arrivals to Bora Bora are now restricted to 1,200 passengers, much to the <a href="https://www.rnz.co.nz/international/pacific-news/407885/bora-bora-calls-for-ban-on-large-cruise-ships">relief of locals</a>. <h2>A new kind of tourism?</h2> In the face of uncertainties due to climate change and geopolitical tensions in the region, it’s encouraging to hear local voices being heard in debates about the future of Pacific tourism – and political leaders appearing to respond. The Pacific Island Forum leaders’ retreat in Fiji late last month discussed the tourism industry. The forum’s signature <a href="https://www.forumsec.org/2050strategy/">Blue Pacific Strategy</a> for regional co-operation recognises tourism is an important component of national development, and the need to balance economic pressures with environmental and cultural protection. But despite the apparent political will and regional focus on building resilience, tourism development will undoubtedly continue to challenge the desires and initiatives of Pacific peoples seeking more sustainable futures. While the policy rhetoric sounds good, it remains to be seen whether Pacific governments will remain steadfast and united under mounting pressures from major cruise operators, Chinese commercial interests and large hotels looking to maximise occupancy rates. Many Pacific people reported the natural environment – along with social, spiritual, physical and mental wellbeing – <a href="https://www.internationaljournalofwellbeing.org/index.php/ijow/article/view/2539">improved during the pandemic pause</a> in tourism. But the reality of putting local wellbeing ahead of profits and increased tax revenue is yet to be fully tested as tourism bounces back. Images: Getty <em style="box-sizing: border-box; color: #212529; font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; font-size: 16px; background-color: #ffffff;">This article originally appeared on <a href="https://theconversation.com/resistance-to-mega-tourism-is-rising-in-the-south-pacific-but-will-governments-put-words-into-action-201071" target="_blank" rel="noopener">The Conversation</a>.

International Travel

“Have a second phone”: Aussie spy chief’s warning on social media use

MPs have been urged to use a second phone if they want to access social media apps such as TikTok, after one of Australia’s top spy bosses spoke about how these apps use our personal information. Rachel Noble, the Director-General of the Australian Signals Directorate (ASD), recommended that politicians and their staff should adopt the practice during a Senate estimates hearing. She also said that having a phone without access to social media was the only way to have “absolute certainty” of data privacy. “Our advice was, frankly, for people who are members of parliament who might be particularly targets of espionage … that if you wanted absolute certainty that your social media app couldn’t have access to those things … would be to have a second phone which you exclusively use for that,” Ms Noble said. The warning comes after it was reported earlier this year that the ASD had confidential meetings with politicians and their staff to warn them that some apps undertake excessive data collection and request access to contact lists, location data and photos. Last year, the Department of Home Affairs restricted TikTok use on work phones, joining the Department of Defence in doing so. During the hearing, Ms Noble said that in some cases social media apps were collecting additional information extending “beyond the content of messages, videos and voice recordings”. “Social media apps are monetising what you do on your phone, what you access, what you look at for how long, who your friends are – they will seek to get demographics of your friends in order to push you the information and get you to buy things,” she said. With some apps headquartered outside Australia, such as China, Ms Noble said the information collected could be accessed legally or be subject to covert collection. Sectors of the Australian public service aren’t the only ones restricting use of social media apps on work phones, with parliaments in the United States and New Zealand warning against using TikTok on government devices. Image: Getty Images

Technology

How do I find out what my superannuation fund invests in? A finance expert explains

You want your superannuation savings to be invested in things that also serve the planet’s long-term interests. But how can you be sure your fund’s values align with yours – or even its own claims? This question has become increasingly pertinent as demand for environmentally and socially sustainable investments <a href="https://asic.gov.au/about-asic/news-centre/find-a-media-release/2022-releases/22-141mr-how-to-avoid-greenwashing-for-superannuation-and-managed-funds/">grows</a> – and with it incentives for financial institutions to put the best spin on their offerings. One consultancy specialising in “responsible investment” reckons <a href="https://thenewdaily.com.au/finance/superannuation/2021/08/16/greenwashing-super-funds/">10% of the funds</a> it has examined do not have the sustainability orientation they claim. Among those <a href="https://www.edo.org.au/2022/08/10/hestas-fossil-fuel-investments-may-amount-to-a-breach-of-the-law/">accused of greenwashing</a> in recent months is one of Australia’s biggest super funds, HESTA (the industry fund for health and community service workers), which has promoting its “clean energy” credentials while still holding shares in fossil-fuel companies <a href="https://www.ai-cio.com/news/australias-hesta-accused-of-greenwashing/">Woodside and Santos</a>. So how can you check what your superannuation fund invests in? Super funds are legally obliged to disclose how they invest your money in two different disclosure documents – a Product Disclosure Statement and a Portfolio Holdings Disclosure. Both will be available on a super fund’s website, though how easily you can find them will vary. The rest of this article is going to explain what information these documents provide, how useful this information is likely to be, and your best bet to ensure your super fund reflects your values. <h2>The Product Disclosure Statement</h2> Product disclosure statements are required by the financial regulator (the Australian Securities and Investments Commission) for all financial products. This document outlines the most basic but important information of an investment product’s features, benefits, risks and costs, including fees and taxes. The format is standardised, with one section (Section 5) covering with “How we invest your money”. The information it contains is broad. At best you’ll learn how the fund splits its investments between safe and riskier assets, and between different asset classes – Australian shares, international shares, property trusts, infrastructure trust, cash and so on. <h2>Portfolio Holding Disclosure</h2> For a comprehensive look at where your money is invested in, you can consider the Portfolio Holdings Disclosure. This document lists a fund’s complete holdings – including the percentage and value of every single company stock held. Portfolio holdings disclosures are relatively new, being obligatory only since March 2022 under <a href="https://www.legislation.gov.au/Details/F2021L01531">legislation</a> meant to improve transparency in the sector. However, super funds aren’t obliged to provide this information in a consistent, easily understandable way. For a non-expert who doesn’t know what to look for, the level of detail can be mind-boggling. You may find yourself scrutinising a spreadsheet listing thousands of items. The Australian Retirement Trust’s Portfolio Holdings Disclosure for its “Lifecycle Balanced Pool”, for example, has more than <a href="https://www.australianretirementtrust.com.au/investments/what-we-invest-in/superannuation-investments">8,000</a> line items. Some super funds have made the effort to provide this information in a more user-friendly format. An example is Future Super, which allows you to <a href="https://www.futuresuper.com.au/everything-we-invest-in/?utm_source=google&utm_medium=cpc&utm_campaign=1757241588&utm_content=68234193065&utm_term=future%20super&campaigntype=SearchNetwork-1757241588&device=c&campaignid=1757241588&adgroup=68234193065&keyword=future%20super&matchtype=p&placement=&adposition=&location=9069039&gclid=CjwKCAjwmJeYBhAwEiwAXlg0AYOEe2tJViZiZBgUk3bt1h9LNuHx1jWnGy6VzqGaNjBzOEi60852JRoCel8QAvD_BwE">search and filter</a> portfolio holdings by asset class and country of origin. But if your concern is to avoid investing in some specific activity such as in mining fossil fuels or gambling, you’ll need to know the companies and other assets you want to avoid for this to be helpful. <h2>Your best options</h2> This is not to say portfolio holding disclosure obligations are useless. They are incredibly useful – a huge leap forward in the sector’s accountability. They just aren’t designed for consumers. So there is still much work to be done to make the sector truly transparent. What would really help is independent certification and ratings of super products, similar to government websites and programs that certify energy efficiency and allow comparison of electricity plans. In the meantime, I can offer you one big tip. Choose a specific superannuation product that markets itself on its environmental or social sustainability credentials. Most super funds now provide these choices alongside their more traditional investment options. There is a variety of “screening” approaches to ethical investments. Some exclude entire sectors. Others include the best environmental and social performers even among “sinful” industries such as tobacco or weapons. So just because a super product is marketed as “ethical” or “sustainable” doesn’t guarantee you will agree with all its investments. But there is a much higher likelihood of it living up to its claims due to greater scrutiny by third parties such as environmental groups as well as the financial regulator. The Australian Securities and Investments Commission put super funds on notice earlier this year with a “<a href="https://asic.gov.au/regulatory-resources/financial-services/how-to-avoid-greenwashing-when-offering-or-promoting-sustainability-related-products/">guidance note</a>” about the growing risk of greenwashing in sustainability-related financial products. It reminded funds that “making statements (or disseminating information) that are false or misleading, or engaging in dishonest, misleading or deceptive conduct in relation to a financial product or financial service” is against the law. So super funds know their portfolios are being scrutinised. Switching your investment option or fund is simpler than you think. You only need to fill out and lodge a form. Just be sure to compare fees and performance, and seek a second opinion from trustworthy adviser before “voting with your wallet”. Image credits: Getty Images This article originally appeared on <a href="https://theconversation.com/how-do-i-find-out-what-my-superannuation-fund-invests-in-a-finance-expert-explains-188802" target="_blank" rel="noopener">The Conversation</a>.

Retirement Income

The tricky notion of ‘value’ in the arts

There’s plenty of discussion about arts funding in Australia – but are we ready to tackle tough questions around the “value” of the arts? That’s a challenge that will involve scrutinising the “benefits” delivered by arts programs and rethinking some of our ideas about impact. Recently these questions have been framed in terms of measurement – a phenomenon that has to do with an increased emphasis on what is termed the “<a href="https://theconversation.com/go-on-then-what-are-the-creative-industries-18958">creative</a>” or “cultural” industries. <h2>Welcome to the arts industry</h2> Governments and policy makers concerned with the allocation of scarce resources, and with the demise of traditional economic drivers for development, have turned to these sectors as areas of potential growth. The word “industry” nicely moves the whole area away from anything “non-productive”. This framing of the arts as an industry has fuelled the sometimes strident debate over funding models for the arts, particularly when a funding cut has taken place. Yet for better or worse, the arts and related cultural phenomena represent activities that now have value and benefits for government – so there will be policy delivered upon art producers regardless of the debate. The key issues for all is defining and measuring all the possible permutations of value. <h2>Intrinsic and instrumental benefits</h2> Some clarification is possible if we separate instrumental benefits from intrinsic benefits. Instrumental benefits are those that pertain to social, economic or policy outcomes. An outcome of a community-based theatre production might be to involve disadvantaged sectors of the community, thereby increasing social inclusion. Similarly, a sculpture trail might be established in an economically-depressed region, with the aim of increasing local employment. Such benefits are increasingly cited in the conversations surrounding the impact of the arts. The intrinsic benefits of the arts are less obvious. While not being ignored by arts organisations, and of interest to many artists, the “impact” of art on an individual, a community or on society is a nebulous concept. How did the art resonate with the viewer? Was the community intellectually stimulated? Did the art make a lasting impression? Did it increase social bonding? Much of the policy work done on measuring intrinsic impact is done in the performing arts. Theatre, opera and music companies have a particular interest in measuring intrinsic impact, as their revenue streams rely on a paying audience, and indeed one that returns for future performances. Intrinsic impact factors such as audience engagement and stimulation are part of the concept of “<a href="http://www.australiacouncil.gov.au/resources/reports_and_publications/subjects/arts_sector/artisticvibrancy">artistic vibrancy</a>” that the Australia Council uses as a criterion in its <a href="http://www.australiacouncil.gov.au/artisticreflectionkit">Artistic Reflection Kit</a> for arts organisations. <h2>Did the art make a difference?</h2> There is little to guide us in understanding such issues in a broader arts context. Certainly museums and galleries, as well as major events such as the <a href="http://www.biennaleofsydney.com.au/">Biennale of Sydney</a> undertake visitor surveys. But their findings are frequently framed in relation to audience development or marketing strategy. Engagement sometimes simply means: how many people went, and where were they from? While this sort of information is vital in a world where competition for the cultural tourist is fierce, it does not assist us in understanding the basic question of whether the art, in whatever form, made a “difference” to those that viewed it (however that may be defined) and how that might be considered a “value”. Of course, it can be argued such a question is irrelevant in an artistic sense. Many see any measurement of artistic value as further evidence of the commodification of art. Art producers frequently reject the materialistic concept of “product” being applied to their creative output, and clearly consumer demand is not generally the primary driving force behind art and other cultural-based production. <h2>Product-driven artists</h2> Even so, artists do need to be product-driven. If they are not they risk their artistic integrity, the very thing that challenges their audiences. This means that conventional techniques to “sell” artistic production do not necessarily work. For any exhibitor of challenging art this is a common problem. Do you keep churning out those room-filling blockbuster exhibitions – or curate something that your audience might potentially not actually like? Perhaps splitting value into instrumental benefits and intrinsic benefits is actually unhelpful because it artificially separates the individual/ community/ emotional from the policy/ economic. By this I mean that if a concert does not engage and resonate with visitors by having some intrinsic value, then any other subsequent instrumental benefit simply does not flow on. In other words, if the audience does not like the art, they will not “consume” it (buy, view, etc.). <h2>Art for individuals and communities</h2> For me, taking such an holistic view of artistic endeavours recognises that there is an interconnectedness between individual benefits and societal benefits that is indeed important. What benefits the individual may well benefit that individual’s community – and vice versa. Does this make impact any easier to measure? Or value any easier to define? Perhaps not immediately. But it does provide an alternative way of conceptualising value in the arts, one that may be used to reframe a debate that tends to be weighted toward measuring instrumental benefits. It’s not just that funding bodies find it easier to measure instrumental benefits, it’s that the intrinsic value of art is, by its very nature, difficult to measure. How do you measure intellectual stimulation? Emotional engagement? Joy? Sure, there is research conducted in these areas, but it is not finding its way into the debate over the value of the arts. And until it does the arts will continue to be valued more for its role as a driver of economic development than as a cure for the soul – or worse still, not valued at all. Image credits: Getty Images This article originally appeared on <a href="https://theconversation.com/the-tricky-notion-of-value-in-the-arts-20408" target="_blank" rel="noopener">The Conversation</a>.

Art

‘Patently ridiculous’: State government failures have exacerbated Sydney’s flood disaster

For the fourth time in 18 months, floodwaters have inundated homes and businesses in Western Sydney’s Hawkesbury-Nepean Valley. Recent torrential rain is obviously the immediate cause. But poor decisions by successive New South Wales governments have exacerbated the damage. The town of Windsor, in the Hawkesbury region, has suffered a particularly high toll, with dramatic flood heights of 9.3 metres in February 2020, 12.9m in March 2021 and 13.7m in March this year. As I write, flood heights at Windsor have reached nearly 14m. This is still considerably lower than the monster flood of 1867, which reached almost 20m. It’s clear that standard flood risk reduction measures, such as raising building floor levels, are not safe enough in this valley. We’ve known about the risk of floods to the region for a long time. Yet successive state governments have failed to properly mitigate its impact. Indeed, recent urban development policies by the current NSW government will multiply the risk. <blockquote class="twitter-tweet"> BBC weather putting Sydney’s downpour into context. More rain there in 4 days than London gets in a year. <a href="https://t.co/FDkBCYGlK7">pic.twitter.com/FDkBCYGlK7</a> — Brett Mcleod (@Brett_McLeod) <a href="https://twitter.com/Brett_McLeod/status/1544071890431623169?ref_src=twsrc%5Etfw">July 4, 2022</a></blockquote> We knew this was coming A 22,000 square kilometre catchment covering the Blue Mountains and Western Sydney drains into the Hawkesbury-Nepean river system. The system faces an <a href="https://theconversation.com/sydneys-disastrous-flood-wasnt-unprecedented-were-about-to-enter-a-50-year-period-of-frequent-major-floods-158427" target="_blank" rel="noopener">extreme flood risk</a> because gorges restrict the river’s seaward flow, often causing water to rapidly fill up the valley after heavy rain. Governments have known about the flood risks in the valley for more than two centuries. Traditional Owners have known about them for millennia. In 1817, Governor Macquarie lamented: <blockquote> it is impossible not to feel extremely displeased and Indignant at [colonists] Infatuated Obstinacy in persisting to Continue to reside with their Families, Flocks, Herds, and Grain on those Spots Subject to the Floods, and from whence they have often had their prosperity swept away. </blockquote> Macquarie’s was the first in a long line of governments to do nothing effective to reduce the risk. The latest in this undistinguished chain is the NSW Planning Minister Anthony Roberts. In March, Roberts <a href="https://www.smh.com.au/national/nsw/nsw-planning-minister-scraps-order-to-consider-flood-fire-risks-before-building-20220321-p5a6kc.html" target="_blank" rel="noopener">reportedly revoked</a> his predecessor’s directive to better consider flood and other climate risks in planning decisions, to instead favour housing development. Roberts’ predecessor, Rob Stokes, had required that the Department of Planning, local governments and developers consult Traditional Owners, manage risks from climate change, and make information public on the risks of natural disasters. This could have helped limit development on floodplains. <blockquote class="twitter-tweet"> Michael Greenway knows that as soon as he sees floodwater, it’s time to get the three boxes of family photos and move to higher ground. He’s lived in his Richards home for years and has experienced six floods - three of which have been this year <a href="https://t.co/t8Tgckc5lx">https://t.co/t8Tgckc5lx</a> <a href="https://twitter.com/hashtag/NSWFloods?src=hash&ref_src=twsrc%5Etfw">#NSWFloods</a> <a href="https://t.co/ErN6sf6hBn">pic.twitter.com/ErN6sf6hBn</a> — Laura Chung (@Laura_R_Chung) <a href="https://twitter.com/Laura_R_Chung/status/1543890156675276800?ref_src=twsrc%5Etfw">July 4, 2022</a></blockquote> Why are we still building there? The Hawkesbury-Nepean Valley is currently home to 134,000 people, a population <a href="https://www.infrastructure.nsw.gov.au/expert-advice/hawkesbury-nepean-flood-risk-management-strategy/" target="_blank" rel="noopener">projected to</a> double by 2050. The potential <a href="https://theconversation.com/to-stop-risky-developments-in-floodplains-we-have-to-tackle-the-profit-motive-and-our-false-sense-of-security-184062?utm_source=twitter&utm_medium=bylinetwitterbutton" target="_blank" rel="noopener">economic returns</a> from property development are a key driver of the <a href="http://www.jstor.org/stable/26393302" target="_blank" rel="noopener">lack of effective action</a> to reduce flood risk. In the valley, for example, billionaire Kerry Stokes’ company Seven Group is <a href="https://www.smh.com.au/national/how-raising-the-warragamba-dam-wall-could-be-a-win-for-billionaire-kerry-stokes-20220222-p59yke.html" target="_blank" rel="noopener">reportedly a part owner</a> of almost 2,000 hectares at Penrith Lakes by the Nepean River, where a 5,000-home development has been mooted. Planning in Australia often uses the 1-in-100-year flood return interval as a safety standard. <a href="https://nccarf.edu.au/living-floods-key-lessons-australia-and-abroad/" target="_blank" rel="noopener">This is not appropriate</a>. Flood risk in the valley is increasing with climate change, and development in the catchment increases the speed of runoff from paved surfaces. The historical 1-in-100 year safety standard is particularly inappropriate in the valley, because of the extreme risk of rising water cutting off low-lying roads and completely submerging residents cut-off in extreme floods. What’s more, a “medium” climate change scenario will see a <a href="https://www.infrastructure.nsw.gov.au/expert-advice/hawkesbury-nepean-flood-risk-management-strategy/resources/publications-and-resources/" target="_blank" rel="noopener">14.6% increase</a> in rainfall by 2090 west of Sydney. This is projected to increase the 1-in-100 year flood height at Windsor from 17.3m to 18.4m. The NSW government should impose a much higher standard of flood safety before approving new residential development. In my view, it would be prudent to only allow development that could withstand the 20m height of the 1867 flood. No dam can control the biggest floods The NSW government’s primary proposal to reduce flood risk is to <a href="https://www.infrastructure.nsw.gov.au/expert-advice/hawkesbury-nepean-flood-risk-management-strategy/" target="_blank" rel="noopener">raise Warragamba Dam</a> by 14m. There are many reasons this <a href="https://www.giveadam.org.au/" target="_blank" rel="noopener">proposal should be questioned</a>. They include the potential inundation not just of <a href="https://www.smh.com.au/national/traditional-owners-launch-federal-bid-to-stop-raising-of-warragamba-dam-wall-20210128-p56xkt.html" target="_blank" rel="noopener">cultural sites</a> of the Gundungarra nation, but threatened species populations, and part of the Blue Mountains World Heritage Area. The <a href="https://www.infrastructure.nsw.gov.au/media/2855/infrastructure-nsw-resilient-valley-resilient-communities-2017-jan.pdf" target="_blank" rel="noopener">cost-benefit analysis</a> used to justify the proposal <a href="https://www.parliament.nsw.gov.au/committees/inquiries/Pages/inquiry-submission-details.aspx?pk=65507" target="_blank" rel="noopener">did not count</a> these costs, nor the benefits of alternative measures such as upgrading escape roads. Perversely, flood control dams and levee banks often result in higher flood risks. That’s because none of these structures stop the biggest floods, and they provide an illusion of safety that justifies more risky floodplain development. The current NSW transport minister <a href="https://www.smh.com.au/national/nsw/emergency-minister-says-raising-dam-wall-could-lead-to-more-development-on-floodplain-20210329-p57evo.html" target="_blank" rel="noopener">suggested such development</a> in the valley last year. Similar development occurred with the construction of the Wivenhoe Dam in 1984, which hasn’t prevented extensive flooding in <a href="http://www.jstor.org/stable/26393302" target="_blank" rel="noopener">Brisbane</a> in 2011 and 2022. These are among the reasons the NSW Parliament Select Committee on the Proposal to Raise the Warragamba Dam Wall <a href="https://www.parliament.nsw.gov.au/committees/listofcommittees/Pages/committee-details.aspx?pk=262#tab-reportsandgovernmentresponses" target="_blank" rel="noopener">recommended</a> last October that the state government: <blockquote> not proceed with the Warragamba Dam wall raising project [and] pursue alternative floodplain management strategies instead. </blockquote> What the government should do instead The NSW government now has an opportunity to overcome two centuries of failed governance. It could take substantial measures to keep homes off the floodplain and out of harm’s way. We need major <a href="https://www.parliament.nsw.gov.au/committees/inquiries/Pages/inquiry-submission-details.aspx?pk=65507" target="_blank" rel="noopener">new measures</a> including: <ul> <li>preventing new development</li> <li>relocating flood prone residents</li> <li>building better evacuation roads</li> <li>lowering the water storage level behind Warragamba Dam.</li> </ul> The NSW government should help residents to relocate from the most flood-prone places and restore floodplains. This has been undertaken for many Australian towns and cities, such as <a href="https://www.sciencedirect.com/science/article/pii/S2212420914000028" target="_blank" rel="noopener">Grantham</a>, Brisbane, and <a href="https://nccarf.edu.au/living-floods-key-lessons-australia-and-abroad" target="_blank" rel="noopener">along major rivers worldwide</a>. <a href="https://www.mdpi.com/2073-4441/5/4/1580/htm#B10-water-05-01580" target="_blank" rel="noopener">Relocating residents isn’t easy</a>, and any current Australian buyback and relocation programs are voluntary. I think it’s in the public interest to go further and, for example, compulsorily acquire or relocate those with destroyed homes, rather than allowing them to rebuild in harm’s way. This approach offers certainty for flood-hit people and lowers community impacts in the longer term. It is patently ridiculous to rebuild on sites that have been flooded multiple times in two years. In the case of the Hawkesbury-Nepean Valley, there are at least <a href="https://www.theaustralian.com.au/nation/politics/federal-government-insurers-stop-housing-in-floodrisk-zones/news-story/cba71269eff2b0ea00d93445ff0e9f73" target="_blank" rel="noopener">5,000 homes</a> below the 1-in-100-year flood return interval. This includes roughly <a href="https://www.hawkesburygazette.com.au/story/7657492/near-1000-flood-related-home-insurance-claims-already-in-hawkesbury/" target="_blank" rel="noopener">1,000 homes flooded</a> in March. The NSW government says a buyback program would be <a href="https://www.smh.com.au/politics/nsw/farcical-minister-shoots-down-flood-relocation-says-residents-know-the-risks-20220308-p5a2qg.html" target="_blank" rel="noopener">too expensive</a>. Yet, the cost would be comparable to the roughly $2 billion needed to raise Warragamba Dam, or the government’s $5 billion WestInvest fund. An alternative measure to raising the dam is to lower the water storage level in Warragamba Dam by 12m. This would reduce the amount of drinking water stored to supply Sydney, and would provide some flood control space. The city’s water supply would then need to rely more on the existing desalination plant, a <a href="http://www.sciencedirect.com/science/article/pii/S1364032116001817" target="_blank" rel="noopener">strategy assessed as cost effective</a> and with the added benefit of bolstering drought resilience. The flood damage seen in NSW this week was entirely predictable. Measures that could significantly lower flood risk are expensive and politically hard. But as flood risks worsen with climate change, they’re well worth it.<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/186304/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/jamie-pittock-7562" target="_blank" rel="noopener">Jamie Pittock</a>, Professor, Fenner School of Environment & Society, <a href="https://theconversation.com/institutions/australian-national-university-877" target="_blank" rel="noopener">Australian National University</a> This article is republished from <a href="https://theconversation.com" target="_blank" rel="noopener">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/patently-ridiculous-state-government-failures-have-exacerbated-sydneys-flood-disaster-186304" target="_blank" rel="noopener">original article</a>.

Legal

Couple tackle the Nullabor to raise funds for polio charity

A Tasmanian couple are jumping on their bicycles ahead of their 2750-kilometre journey - and they’re doing it to raise funds for a good cause. Phil and Joyce Ogden, who have been members of Rotary for over a decade, are undertaking the trek from Perth to Adelaide as part of an epic fundraiser for Rotary’s END POLIO campaign. The campaign, which was started over 30 years ago by Rotary, UNICEF and the World Health Organisation, has been driving towards the goal of completely eradicating Polio, beginning with a project to vaccinate children in the Philippines against the disease in 1979. Now, Polio is believed to only be naturally spreading in Afghanistan and Pakistan, but according to the <a href="https://apps.who.int/gb/ebwha/pdf_files/wha65/A65_20-en.pdf" target="_blank" rel="noopener">World Health Assembly</a>, failing to eradicate the disease would be a “global health emergency”. “We feel the enormous effort which has gone into turning the tide of the disease will be lost if pressure, and fundraising, is not maintained until the final handful of cases is consigned to history,” the Ogdens said in a message to all Rotarians. With the support of their South Launceston Rotary Club, the Odgens have planned to begin their trip in mid-May and hope to raise awareness of the cause along the way. “If we take our collective eyes off the ball, the disease will re-establish,” the couple said. “So, we are still committed to making our personal donations every year but felt we might harness another of our passions, cycling, to push things along - once again with the assistance of Rotary.” With limited sources of water and no shops to buy food from along the Nullarbor, the couple will carry a week’s worth of food and two days of water at a time, and they’re relying on dehydrated food which will be mailed ahead of them. Their upcoming journey isn’t a first for the Ogdens, who have covered more than 100,000 kilometres from crossing the European Alps, the Pyrenees and the Rockies. Heather Chong, the Tasmanian District Governor, praised the pair and described them as “adventurous philanthropists”. The couple have started an <a href="https://raise.rotary.org/phil-ogden/fundraiser" target="_blank" rel="noopener">online fundraiser</a> with a goal of raising $40,000. As of publication, the fundraiser has already collected $10,000 in donations, with every $1 donated prompting the Bill and Melinda Gates Foundation to contribute $2. Image: Supplied

Caring

Why doesn’t the government have a duty of care to children’s futures?

Federal judges <a href="https://www.bbc.com/news/world-australia-60745967" target="_blank" rel="noopener">have deemed</a> that the Australian government doesn’t have a duty of care to protect children from the harms of climate change, overturning last year’s landmark decision. Eight teenagers and an 87-year-old nun convinced Federal Court judges that Susan Ley, the Australian Environment Minister, had a duty of care to protect children from future harm caused by climate change when assessing fossil fuel projects. They <a href="https://www.sbs.com.au/news/article/the-australian-government-has-a-duty-of-care-to-protect-children-from-climate-harm-court-rules/grhgp8t8y" target="_blank" rel="noopener">initially</a> sought an injunction to stop the expansion of a coal mine in New South Wales, which is expected to add an extra 170 million tonnes of fossil fuels to the atmosphere. However, the injunction wasn’t issued since the judges believed the minister hadn’t yet violated her duty of care. The government appealed the court ruling and all three judges sided with the minister for various reasons, including that there wasn’t “sufficient closeness” between the minister’s decision to approve the mine and “any reasonably foreseeable harm” that comes from it. Despite the initial decision being successfully challenged, the teens could still take the case to the country’s highest court. “Today’s ruling leaves us devastated, but it will not deter us in our fight for climate justice,” 17-year-old Anjali Sharma said in a statement released by the teenagers’ lawyers in mid-March. 15-year-old Izzy Raj-Seppings, another of the teens involved in the case, said their lawyers would review the judgement, and that “we may have more to say in the coming weeks”. “While today’s judgement did not go our way, there is still much to celebrate. The court accepted that young people will bear the brunt of the impacts of the climate crisis.” Image: BBC News

Legal

Australian government appeals ruling protecting Aboriginals from deportation

The Australian government has made an appeal against a High Court decision that Aboriginal Australians can’t be aliens, claiming the decision threatens to confer “political sovereignty on Aboriginal societies”.Lawyers for the government made the claim in an appeal against the Love and Thoms decision, which bars the deportation of Indigenous non-citizens. They claim that the ruling threatened the position that Aboriginal sovereignty did not survive the colonisation of Australia.<a href="https://www.theguardian.com/law/2022/feb/01/aboriginal-spiritual-connection-to-land-no-bar-to-deportation-morrison-government-says" target="_blank" rel="noopener">The Guardian</a> reports that the submissions, lodged on Friday, also contain arguments that the spiritual connection Aboriginal Australians have with the land doesn’t create a “special relationship” to the commonwealth.What is the Love and Thoms decision?In February 2020, four out of the seven judges ruled that Aboriginal Australians were not aliens under the Australian constitution and couldn’t be deported, prompting the release of New Zealand-born man Brendan Thoms from detention.Thoms and Papua New Guinea-born Daniel Love, who both have one Indigenous parent, had their visas cancelled and faced deportation from Australia after serving time in prison.Lawyers for the two men, with support from the state of Victoria, argued that the government can’t deport Aboriginal or Torres Strait Islanders even if they don’t hold Australian citizenship.In separate judgements, justices Virginia Bell, Geoffrey Nettle, Michelle Gordon and James Edelman made the ruling based on the three-part test established by the Mabo native title cases that assess a person’s claim to be Aboriginal based on their biological descent, self-identification, and recognition by a traditional group.By April 2021, nine people were released from immigration detention as a result of the ruling, with Guardian Australia revealing the government was seeking to overturn the decision in October of the same year.Why is the government appealing the decision?In November 2021, the federal court ordered for the release of Shayne Montgomery, a New Zealand citizen whose visa was revoked by former home affairs minister Peter Dutton after he was convicted of a non-violent aggravated burglary in 2018. The court ruled that Mr Dutton “failed to give any degree of consideration” to Mr Montgomery’s claims of Aboriginality. Though he wasn’t biologically descended from an Aboriginal person, the court said it was “not reasonable” to conclude Mr Montgomery was not Aboriginal since he was culturally adopted by the Mununjali people in Queensland.In an appeal against that ruling, the federal government is now asking that the federal court overrule Love and Thoms.With the retirement of two of the four judges who originally made the decision, assistant attorney general Amanda Stoker has noted in a 2020 research paper that a challenge to the decision could see it get reconsidered by the new bench.In October, immigration minister Alex Hawke <a href="https://www.theguardian.com/australia-news/2021/nov/19/judge-orders-new-zealand-man-who-had-visa-revoked-by-peter-dutton-to-be-freed-from-detention" target="_blank" rel="noopener">said</a> the government had “no intent to deport an Aboriginal from Australia”, despite making an appeal alongside home affairs minister Karen Andrews to restore their power to do so.He said the case was about “a complex question of law, it’s not about an opinion of the government, and it has to be tested and resolved”.“That’s what the government is doing. Of course, there is no intent to deport an Aboriginal from Australia, ever.”Kristina Kenneally, the shadow home affairs minister, has said Labor “respects the decision of the high court” in Love and Thoms, and that the government should “abide by the ruling”.The matter is yet to be listed for a hearing.Image: Getty Images

Legal

What a disaster: federal government slashes COVID payment when people need it most

With Australia’s official COVID-19 infection numbers topping <a href="https://www.nytimes.com/interactive/2021/world/australia-covid-cases.html">100,000 a day</a>, the federal government has slashed its last remaining pandemic support payment. The decision is ill-timed, irresponsible and heartless. It is stripping away support for those most affected by the pandemic at the time they need it most. It will place those in low paid and precarious work in further financial stress as they lose income to isolate when infected or in close contact with someone else with COVID-19. The Pandemic Leave Disaster Payment was introduced in August 2020 in response to concerns casual workers and others without sick or pandemic leave entitlements could not take time off work when infected or in contact with someone with COVID-19. The leave payment was initially available to those not qualifying for JobKeeper – or, after JobKeeper ended in March 2021, the “disaster payment” introduced in response to <a href="https://theconversation.com/support-package-for-sydney-better-and-more-fit-for-purpose-than-jobkeeper-164394">the Sydney lockdown</a> in July 2021. Since that payment ended the Pandemic Leave Disaster Payment is the only individual financial support the federal government provides. Available to people who had contracted COVID, were a close contact or needed to care for someone who had COVID, until this week it paid A$750 a week for two weeks. You could claim the payment regardless of the number of hours of paid work you lost. On January 18 the rules tightened – a move announced via a <a href="https://ministers.pmc.gov.au/mckenzie/2022/changes-pandemic-leave-disaster-payment">press release </a> on January 8 (a Saturday). Now it only pays $750 if you lose 20 hours or more of paid work a week. If you lose 8-19 hours you get just $450 a week. If you lose less than eight hours you get nothing. Getting the payment has also been made more difficult by imposing a 14-day time limit to apply, from the start of the isolation period. To qualify, you must show evidence of a positive PCR or rapid antigen test. Considering the difficulty of obtaining RATs, and delays in PCR test results <a href="https://www.smh.com.au/politics/victoria/test-samples-no-longer-suitable-after-seven-day-wait-20220108-p59ms1.html">of a week or more</a>, this is a unreasonable and unnecessary constraint. <h2>Flawed eligibility rules</h2> A major flaw in the eligibility rules for the leave payment it is not available to people receiving social security payments. This excludes all JobSeeker recipients, despite about <a href="https://data.gov.au/data/dataset/dss-payment-demographic-data/resource/80cc89a3-3208-4e0d-9745-598f7a882e28">one in four</a> being in some form of paid work – generally low-paid casual jobs. The leave payment has been a vital part of the economic supports to help people stay safe and protect their loved ones and the community. The peak body for the community services sector, the Australian Council of Social Service, has <a href="https://www.acoss.org.au/media-releases/?media_release=another-income-hit-for-casual-workers-massive-cut-to-pandemic-leave-disaster-payment">condemned this decision</a>. It says cutting the payment will leave people without enough to cover basic costs, let alone the extra costs of isolation such as delivery fees, rapid tests (if you can get them) and personal protective equipment. <h2>Worst time possible</h2> There could scarcely be a worse time to cut this payment, with Australia now in the worst stage of the pandemic. Between August 5 2020 and July 8 2021 the Pandemic Leave Disaster Payment provided <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp2122/Quick_Guides/COVID-19DisasterPayments">almost 15,000 grants</a> to support those in need. During this period the peak COVID case rate was just over 500 day, in August 2020. Consider, therefore, the likely need now we’re at more than <a href="https://www.nytimes.com/interactive/2021/world/australia-covid-cases.html">100,000 a day</a>. With no other form of federal income support available you may apply for an unemployment or sickness payment like JobSeeker. But Services Australia advises this will be paid about <a href="https://www.servicesaustralia.gov.au/when-youll-get-your-first-jobseeker-payment?context=51411">two weeks after</a> a claim is granted. That is of little help to cover rent while you’re isolating with COVID. JobSeeker is also a maximum of $315 a week – inadequate to cover basic costs. This cut will affect many of the same people <a href="https://www.dailytelegraph.com.au/news/national/pm-announces-national-day-of-thanks-for-pandemic-heroes/news-story/174c8ccb94814aaa554d79eea0193e4f">lauded as the heroes of pandemic</a> – essential workers employed casually in health and aged care, supermarkets, hospitality venues and warehouses. It will also hurt temporary visa holders, who are entitled to the leave payment and do not qualify for any other federal income support. Last week <a href="https://www.acoss.org.au/media-releases/?media_release=community-sector-calls-for-collaboration-and-decisive-leadership-from-national-cabinet-to-deal-with-covid-debacle">ACOSS called for</a> the establishment of a civil society COVID Rapid Response Group to work alongside National Cabinet. We need the interests of people most at risk in the room at the highest levels when decisions like the future of the Pandemic Leave Disaster Payment are made. Cutting this payment now is effectively telling low-paid workers at the worst stage of the pandemic in Australia that they’re on their own.<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; text-shadow: none !important;" src="https://counter.theconversation.com/content/175146/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/cassandra-goldie-94635">Cassandra Goldie</a>, Adjunct Professor and UNSW Law Advisory Council Member, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a> 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-a-disaster-federal-government-slashes-covid-payment-when-people-need-it-most-175146">original article</a>. Image: Mick Tsikas/AAP

Retirement Income

Government funds bail out festival cancellations with Event Saver Fund

As another year of music festivals and summer events have been cancelled in the eleventh hour by the pandemic, the NSW government has put their hand up to help the arts. The state government recently announced the Event Saver Fund, which is aimed at financially supporting the state’s music industry that has been devastated by the latest wave of Omicron. At a recent press conference, NSW Treasurer Matt Kean revealed that a $43 million fund has been established for organisers of the cancelled events to be financially supported if they've been cancelled or may be affected by changes to public health orders. “This fund is a $43 million fund that will ensure that we will underwrite sunk costs for the festivals that could be impacted by changes to public health orders,” he said. The fund will help organisers to pay their staff and suppliers, as well as recoup other costs lost in the event planning that got cancelled or cut short due to lockdowns or border closures. Minister for the Arts Ben Franklin said the vital funding will give event organisers to continue to plan festivals without the stress of a last-minute cancellation costing them thousands. “Major events provide tremendous social benefits to the community, bringing us together to enjoy live performances,” he said. “As we look to rebound from the effects of the past two years, this funding will help support local jobs and ensure major event organisers can plan with confidence to safely deliver their events in 2022/23.” Australian Festivals Association chair Julia Robertson welcomed the Event Saver package, and emphasised how much the industry has suffered since the start of the pandemic. “This package is really great for building confidence,” she said. “For helping those festivals that have got events coming up — to maintain those festival lineups — but also to those events that have had to be cancelled over the last couple of weeks due to the Omicron variant. “We will be able to help those events recover some of those costs that they’ve lost. We’ve got a really long way to building that confidence for the festival industry, so thank you.” Image credits: Getty Images

Music

Labor’s proposed $10 billion social housing fund isn’t big as it seems, but it could work

The centrepiece of Labor’s election program so far is its A$10 billion social housing policy, officially called the <a href="https://alp.org.au/policies/housing_future_fund">Housing Australia Future Fund</a>. In the first five years the fund would be used to build <ul> <li> 20,000 social housing properties for people on low incomes - 4,000 of the 20,000 for women and children fleeing violence and for low income older women at risk of homelessness </li> <li> 10,000 “affordable” housing properties </li> <li> $200 million for the repair, maintenance and improvements of housing in remote Indigenous communities </li> <li> $100 million for crisis and transitional housing for women and children fleeing violence and for low income older women at risk of homelessness </li> <li> $30 million to build more housing and fund specialist services for veterans who are experiencing or at risk of homelessness </li> </ul> Although needed, its a far short of the 100,000 extra social housing units we would have had if social housing been growing in line with total housing in recent years, a gap that is climbing by 4,000 homes a year. And, like the frilled-neck lizard, the $10 billion looks much bigger than it is. Labor could probably do what it has promised to do for $450 million per year. Instead, it says it would borrow $10 billion at low interest rates, invest the money for much higher returns, and use the proceeds to pay for the program. If the fund earns 4.5% more than the cost of borrowing it’ll get the $450 million per year. Rather than use the money to build the houses it will use the money to fund service payments to community housing providers who build them. As Labor points out, it’s a mechanism used by the current government, which has set up five such funds in addition to the <a href="https://www.futurefund.gov.au/">Future Fund</a> used to fund public service pensions (of which more later). <a href="https://images.theconversation.com/files/440171/original/file-20220111-13-1erhnaj.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/440171/original/file-20220111-13-1erhnaj.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="" /></a> <a href="https://alp.org.au/policies/housing_future_fund" class="source">Extract from Labor's Housing Australia Future Fund election policy</a> Two of these funds, the Medical Research Future Fund and the Disability Care Australia Fund are actually bigger than the proposed Housing Fund. A problem with this structure designed to make the commitment look bigger than it is is that spending on social housing will depend on the returns of the fund. Allocating money from one source to spending on one particular purpose is called <a href="https://www.cis.org.au/app/uploads/2015/07/pm75.pdf">hypothecation</a>, a word closely related to “<a href="https://english.stackexchange.com/questions/429589/is-hypothecate-anything-to-do-in-origin-or-meaning-with-hypothetical/570700">hypothetical</a>”. <a href="https://images.theconversation.com/files/440181/original/file-20220111-19-6m0mfi.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/440181/original/file-20220111-19-6m0mfi.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" alt="" /></a> Medicare funding is independent of the levy. Dean Lewins/AAP The Medicare Levy of 2% of most taxable incomes is intended to be for funding Medicare, but funds only part of it. In contrast, there doesn’t appear to be any plan to guarantee payments for social housing if in any year the Social Housing Fund fails to make money. The bigger question is whether it makes sense for governments to use funds like the Future Fund to put money into income-generating investments in private companies (the Future Fund invests in <a href="https://cdn.theconversation.com/static_files/files/1918/20200630_-_Top_100_largest_listed_equity_holdings.pdf">Apple, Microsoft and the Commonwealth Bank</a>) or to use any available funds to pay down government debt. The answer depends in part on whether the profits the funds earn are genuine or mere compensation for the risky business of investing in shares, which can always go wrong. My work on the so-called “equity premium”, the excess return for investing in shares, suggests that is <a href="https://core.ac.uk/download/pdf/15061616.pdf">genuine</a> and exceeds what’s needed to compensate for risk, making investment in the stock market an appealing option for governments in the absence of better opportunities. But the premium is not limitless, for two reasons. One is that if governments borrow enough and buy enough shares, we can reasonably expected the government’s cost of borrowing to rise and the rate of return on shares to fall, reducing the equity premium. The other is that if buying shares is pursued far enough, governments will become major, or even majority, shareholders in large businesses, effectively becoming owners. <h2>Future funds should invest in what governments do best</h2> Long experience suggests that while governments are quite good at running some types of businesses (especially those involving infrastructure and requiring large amounts of capital) they are not nearly as good at running others. Retailing comes to mind. If we accept that large debt-financed public investment can make sense, it follows that governments should own as much as 100% of some types of businesses (businesses such as Telstra come to mind) and little or none of others, such as shopping centres, which Australia’s government <a href="https://www.canberratimes.com.au/story/7139681/the-sale-of-belconnen-mall/">did indeed once own</a>. And that was generally the way Australia’s economy worked during the brief period of broadly shared-prosperity in the mid-20th century. Governments borrowed at low rates and invested in physical and social infrastructure, such as roads and communications services. The more funds there are like Labor’s proposed Housing Australia Future Fund the more likely it is we will get back there.<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; text-shadow: none !important;" src="https://counter.theconversation.com/content/174406/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/john-quiggin-2084">John Quiggin</a>, Professor, School of Economics, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> 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/labors-proposed-10-billion-social-housing-fund-isnt-big-as-it-seems-but-it-could-work-174406">original article</a>.

Real Estate

That reverse mortgage scheme the government is about to re-announce, how does it work?

Many Australians have never heard of the <a href="https://www.servicesaustralia.gov.au/pension-loans-scheme">Pension Loans Scheme</a>, and many more assume it’s just for pensioners, which is understandable given its name. That’s why the government is poised to rename it the Home Equity Access Scheme and make the interest rate it charges more reasonable, in the mid-year budget update on Thursday. The soon to be renamed scheme is best thought of as a <a href="https://www.investopedia.com/mortgage/reverse-mortgage/">reverse mortgage</a> where instead of paying down a home loan each month, the homeowner borrows more against the home each month, paying off what’s borrowed when the home is eventually sold. Although reverse mortgages have been provided commercially for some time, the number of providers has shrunk as large banks have <a href="https://download.asic.gov.au/media/4851420/rep-586-published-28-august-2018.pdf">left the field</a> in the face of increased scrutiny and compliance costs. The government version is misleadingly named the Pension Loans Scheme (PLS), even though it is available to all retirees with homes and not just pensioners. It was introduced by the Hawke government in <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/FlagPost/2015/February/The_Pension_Loans_Scheme">1985</a>. The maximum amount that can be made available under the scheme and the age pension combined is <a href="https://www.servicesaustralia.gov.au/how-much-you-can-get-under-pension-loans-scheme?context=22546">150% of the full pension.</a> This means a retiree who is on the pension can get extra fortnightly payments from the scheme to bring their total payment up to 150% of the full pension. If the retiree is not on the pension they can get the entire amount of 150% of the pension via the PLS. The payments stop when the loan balance reaches a <a href="https://www.servicesaustralia.gov.au/maximum-loan-amount-under-pension-loans-scheme?context=22546">ceiling</a> which climbs each year the retiree gets older and climbs with increases in the value of the home. The ceiling for a 70-year old with a home worth $1,000,000 is $308,000. The key difference between the PLS and commercial reverse mortgages is that the size of its lump sum payments is limited. Payments under the PLS have no impact on the pension, whereas commercial reverse mortgages can trigger the means test. <a href="https://images.theconversation.com/files/437703/original/file-20211215-13-kxrv2s.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/437703/original/file-20211215-13-kxrv2s.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="" /></a> Colin Zhang, Macquarie Business School As attractive as the PLS might appear, hardly any of the four million or so Australians aged 65 and over have taken it up, perhaps as few as <a href="https://newsroom.unsw.edu.au/news/business-law/budget-changes-make-pension-loans-scheme-more-attractive-senior-homeowners">5,000</a> – one in every 800. So in this year’s May budget the government announced two changes to make it more attractive. One was a “<a href="https://cdn.theconversation.com/static_files/files/1902/PLS_2021-22-budget-16_%281%29.pdf">no negative equity guarantee</a>”. Users would never be asked repay more than the value of their property, even if the property fell in value. The other was the ability to take out up to <a href="https://cdn.theconversation.com/static_files/files/1902/PLS_2021-22-budget-16_%281%29.pdf">two lump sums per year</a> totalling up to 50% of the full pension in addition to fortnightly payments. Total government payments would remain capped at 150% of the pension. <h2>New brand, same scheme</h2> That second change won’t begin until July 1, 2022 and is likely to be re-announced in Thursday’s mid-year budget update. Also announced in the budget was a decision to raise awareness of the scheme “through improved public messaging and branding” something which is also likely to be re-announced on Thursday along with the new name. The other change expected on Thursday is a lower interest rate charged on the sums borrowed. In January 2020, the rate was cut from 5.25% to 4.5% in accordance with cuts in other rates. From January next year it should reduce further to <a href="https://www.theaustralian.com.au/nation/politics/scott-morrison-opens-up-mortgage-loan-scheme-to-help-elderly-fund-their-own-retirements/news-story/9f8c56fbba899f6b76c72ce51ceb9331">3.95%</a>. <h2>Attractive, but not riskless</h2> There remain risks associated with taking advantage of the scheme. One is that if you live long enough you are likely to eventually hit the ceiling and be unable to take out any more money, suffering a loss of income. If you chose to sell your home and move to an aged care service, you need to use a big part of your sale proceedings to pay what’s owed. Other risks are that neither the interest rate nor home prices are fixed. Just as the government has cut the rate charged in line with cuts to lower general interest rates, it might well lift it when interest rates climb. And home prices can go down as well as up, meaning that, at worst, all of the value of your home (although no more) can be gobbled up in repayments.<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; text-shadow: none !important;" src="https://counter.theconversation.com/content/171671/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/colin-zhang-1234147">Colin Zhang</a>, Lecturer, Department of Actuarial Studies and Business Analytics, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a> and <a href="https://theconversation.com/profiles/ning-wang-1297929">Ning Wang</a>, Associate Research Fellow, <a href="https://theconversation.com/institutions/university-of-wollongong-711">University of Wollongong</a> 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/that-reverse-mortgage-scheme-the-government-is-about-to-re-announce-how-does-it-work-171671">original article</a>. Image: Shutterstock

Real Estate

Health experts call for government ban on the sale of cigarettes and other tobacco products

Image: Getty Australia’s state governments must set an end date for the sale of cigarettes through retailers including supermarkets, according to public health experts. In an article published in the Medical Journal of Australia on Monday, researchers from the University of Queensland said anti-smoking measures such as plain-packaging laws and health warnings were no longer enough, insisting Australia now needed to address the supply side of tobacco consumption. The researchers said a product as harmful as cigarettes should not be available for purchase in supermarkets. “Despite tobacco’s legal status, it fails to meet consumer safety standards,” the authors wrote. “Consumer and drug regulatory systems would prohibit the sale of cigarettes as a new consumer product today. “Governments should set target end dates for tobacco sales and support retailers to transition to a smoke‐free society.” Lead author of the article and tobacco health expert Coral Gartner said Australia’s state governments were falling behind the general public in anti-smoking sentiment. “Most international governments, including Australia, are lagging behind the significant public support for ending tobacco retailing,” Dr Gartner said. “Research shows half of all adults in Australia, New Zealand, Canada, England and Hong Kong want tobacco sales phased out.” Last November, the Netherlands passed laws preventing supermarkets from selling cigarettes from 2024 and in April, the New Zealand government proposed several new measures that would significantly reduce the number of tobacco retail outlets. Dr Gartner said that setting a specific date for when the sale of cigarettes would end in Australian would provide tobacco retailers with certainty and assistance in future planning, make it easier for people to quit smoking, and assist the government to plan for reductions in tobacco tax revenue.

Caring

Museum calls on Dutch government for a $270 million helping hand

The Dutch government is backing an expensive venture by Amsterdam’s Rijksmuseum to purchase a $270 million Rembrandt self-portrait. The painting, known as The Standard Bearer (1636), is one of the last masterpieces by the Dutch artist still in the hands of a private collector. The artwork is going up for sale by the Rothschild family, who have had the painting in their possession since 1844, after it belonged to the King of England. Financial pledges have come from The Rembrandt Association, the Rijksmuseum Fund, the Dutch state and the museum’s acquisition fund in order to afford the artwork’s hefty price tag. According to the Rijksmuseum director Taco Dibbits, the organisation has been trying to procure the painting for almost five years. In a statement, the museum said that the 22 works by Rembrandt in the Hague’s collection provide an “overview of the artist’s life,” and that the present work, being “one of the first paintings that Rembrandt made after he established himself as an independent artist in Amsterdam … has so far been the missing link in this overview.” While the sale has yet to be closed, Dutch officials are already celebrating the new addition to the world-famous collection. Ingrid van Engelshoven, the Dutch minister of education, culture, and science, said in a statement, “After a journey of centuries, The Standard Bearer is now returning home for good.” Image credits: Getty Images

Art

The compelling case for a future fund for social housing

As more and more Australians are forced into private renting, including Australians who once would have owned homes or lived in social housing, more are living in <a href="https://www.acoss.org.au/wp-content/uploads/2018/10/ACOSS_Poverty-in-Australia-Report_Web-Final.pdf">poverty</a>, suffering <a href="https://grattan.edu.au/wp-content/uploads/2018/11/912-Money-in-retirement.pdf">financial stress</a> and becoming <a href="https://blog.grattan.edu.au/2019/06/who-is-homeless-in-australia/">homeless</a>. Social housing – where rents are typically capped at 25% of tenants’ incomes – used to make a big difference to the lives of many vulnerable Australians. Infrastructure Victoria has found that it makes a big difference to homelessness. Only 7% of renters in social housing subsequently become homeless, compared to 20% of private renters. But the stock of social housing – currently around 430,000 dwellings – has barely grown in 20 years, during a time Australia’s population has grown 33%. Given that most social housing tenants stay for more than five years, the stagnating stock of such housing means there are few openings available for people whose lives take a turn for the worse. We not only have fewer social houses per person, we also have vastly fewer openings for anyone looking. <h2>The fund would leverage cheap money</h2> Social housing is expensive. The capital cost per unit over and above what is recouped in rent amounts to about A$300,000. A new Grattan Institute paper released on Monday makes the case for a $20 billion federal government <a href="https://grattan.edu.au/news/a-place-to-call-home-its-time-for-a-social-housing-future-fund/">Social Housing Future Fund</a>, which would make regular capital grants to state governments and community housing providers. Future funds are not unusual. The <a href="https://www.futurefund.gov.au/about-us/who-we-are/board-of-guardians">Future Fund Board of Guardians</a>, chaired by former Commonwealth Treasurer Peter Costello already manages $247.8 billion in assets across six funds addressing problems ranging from covering federal public servants’ superannuation entitlements to drought to disability care to medical research. <a href="https://images.theconversation.com/files/434062/original/file-20211126-27-iuq4w2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/434062/original/file-20211126-27-iuq4w2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" alt="" /></a> Peter Costello chairs the Future Fune Board of Guardians. Dean Lewins/AAP The endowment for the Social Housing Future Fund could be established by borrowing at today’s ultra-low interest rates. Some states, including Victoria, NSW, and Queensland already operate social housing investment funds, some financed by privatisations, others financed by government borrowing. The funds would be managed by the existing Future Fund Board of Guardians with only the returns above inflation used to provide capital grants for housing, maintaining the real value of the fund over time. Capital grants for new social housing units would be allocated by the existing <a href="https://www.nhfic.gov.au/">National Housing Finance and Investment Corporation</a> via competitive tenders after specifying dwelling size, location and subsidies for tenants. As is the case with the existing Future Fund, the funding would be off budget, with only each year’s profits or losses affecting the budget balance. The extra $20 billion in gross government debt would be small compared to the nearly <a href="https://www.abc.net.au/news/2020-10-09/federal-budget-2020-debt-deficit-blowout-explained/12741472">$1 trillion</a> currently on issue, supported by about $500 billion a year in federal government revenues. <h2>How much could a $20 billion fund support?</h2> A $20 billion fund that achieved after-inflation returns of 4-5%, could over time provide $900 million each year – enough to deliver 3,000 extra social housing units a year in perpetuity, assuming capital grants of $300,000 per dwelling. Starting in 2022-23, the fund could build 24,000 social housing dwellings by 2030, and 54,000 by 2040. Future governments would be at liberty to top up the fund, helping expand the social housing share of the national housing stock. <hr /> <a href="https://images.theconversation.com/files/434215/original/file-20211127-23-1xithw8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/434215/original/file-20211127-23-1xithw8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="" /></a> Assuming $300,000 capital grant per dwelling, indexed to inflation. <a href="https://grattan.edu.au/news/a-place-to-call-home-its-time-for-a-social-housing-future-fund/" class="source">Source: Grattan analysis</a> <hr /> The <a href="https://alp.org.au/policies/housing_future_fund">Labor Party</a> has proposed something similar, in which funds are used for annual service payments to community housing providers rather than via upfront capital grants. The on-budget cost of our proposal would be modest: about $400 million a year, or less than 0.1% of federal government spending in the form of interest costs. Alternatively, part of the above-inflation return from the fund each year could be used to cover these costs, leaving $500 million available to fund the construction of nearly 1,700 new social housing units per year with no hit to the budget. The Commonwealth should require state governments to match its contributions. <h2>States could double the money</h2> Any state that did not agree to provide matching contributions would be ineligible for capital grants for social housing in that year, with the savings reinvested in the Future Fund and distributed across all states the following year. If matched state funding was forthcoming, the fund could provide 6,000 social homes a year – enough to stop social housing shrinking as a share of the total housing stock. This would double the build to 48,000 new homes by 2030, and 108,000 by 2040, boosting the current stock by one quarter. <hr /> <a href="https://images.theconversation.com/files/434216/original/file-20211127-23-h5zalb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/434216/original/file-20211127-23-h5zalb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="" /></a> Assuming $300,000 capital grant per dwelling, indexed to inflation. <a href="https://grattan.edu.au/news/a-place-to-call-home-its-time-for-a-social-housing-future-fund/" class="source">Source: Grattan analysis</a> By itself, a Social Housing Future Fund wouldn’t solve the housing crisis for low-income Australians. We would still need to boost rent assistance for people on income support and do more to boost housing supply to bring rents down. But it would give a much-needed helping hand to some of our most vulnerable, and keep social housing there for future generations should they need it.<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; text-shadow: none !important;" src="https://counter.theconversation.com/content/172508/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/brendan-coates-154644">Brendan Coates</a>, Program Director, Economic Policy, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> 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-compelling-case-for-a-future-fund-for-social-housing-172508">original article</a>. Image: Shuttershock

Real Estate

Dad spends daughter’s wedding fund on car and holiday

After posting about his situation on <a rel="noopener" href="https://www.reddit.com/r/AmItheAsshole/comments/mhgoq5/aita_for_spending_my_daughters_wedding_fund_on_a/" target="_blank">Reddit</a>, a father has been questioning whether it was wrong of him to spend the $35,000 (AUD $45,045) he had saved for his daughter’s wedding on gifts for himself instead. In the post, he explained his daughter’s wedding had been postponed for more than a year, ending with her choosing to elope rather than going through with the ceremony. Having saved the cash for the wedding fund, the man said he was ‘thrilled’ that his daughter was still able to get married, but also that he could ‘put [the money] to other use’. He revealed that he used the money to treat himself to a new car and take his wife on a holiday. ‘I didn’t think this was controversial,’ the man said. But, his decision has caused major controversy. Just weeks after the daughter had eloped, she asked whether she could dip into the fund of savings to put a down payment on a property. After learning that he had spent the cash, his daughter and ex-wife called him out as ‘selfish’. Her dad defended himself, saying, ‘I never told her it was a wedding or whatever she wanted fund, so I didn’t think I did anything wrong.’ But he’s questioning whether his opinion was biased. ‘I’m a blue collar guy. She knew that I had money put aside for her wedding,’ he added. ‘I never told her it was a fund for her to use on whatever. I paid for her [university] and planned on paying for her wedding but beyond that didn’t plan on paying her way through life.’ The Reddit post received over 1,000 comments, many sided with him and supported his decision to spend the money he’d earned on himself. ‘[This man] paid for his daughter’s entire [university] tuition and living expenses so she’s starting out in life with zero debt,’ one user replied. ‘Isn’t that gift enough?’ Another said, ‘[Your] daughter is allowed to be disappointed, but not an ungrateful, entitled brat.’ Offering a more neutral view, a third commenter said, ‘At the end of the day, it is your money and adult children are not owed houses, cars or weddings by their parents’, claiming they ‘personally’ would have ‘at least given her some of the money as a wedding present.’

Money & Banking

We’re back!

<div class="post_body_wrapper"> <div class="post_body"> <div class="body_text redactor-styles redactor-in"> Facebook has finally removed the ban on news and other information sites in Australia, restoring hundreds of pages in an instant. The ban included local sites, such as ABC and The Guardian but also included international pages such as The Wall Street Journal and CNN. The ban lasted eight days and caught attention worldwide, but was lifted one day after the Australian Government passed its news media bargaining code, according to <a rel="noopener" href="https://www.dailytelegraph.com.au/technology/facebooks-australian-news-ban-remains-despite-senate-passing-news-code-changes/news-story/f1b8b029bc99a9d34c77c56a9a221ec3" target="_blank">The Daily Telegraph</a>. The code included amendments discussed in talks between Treasurer Josh Frydenberg and Facebook CEO Mark Zuckerberg. Facebook removed news content in response to the federal media bargaining code as it aims to force internet giants to pay news publishers for generating content that the websites host. Facebook's global affairs vice-president Nick Clegg argued that Facebook had no choice but to remove all news content from the platform to evade Australia's news code. Mr Clegg said executives felt they had only two responses to laws drafted by Australia’s competition watchdog: agree to “open-ended subsidies … or remove news from our platform in Australia”. “It wasn’t a decision taken lightly,” he said. “But when it came, we had to take action quickly because it was legally necessary to do so before the new law came into force, and so we erred on the side of over-enforcement. “In doing so, some content was blocked inadvertently. Much of this was, thankfully, reversed quickly.” </div> </div> </div>

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Dad spends daughter’s wedding fund on car and holiday

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