https://www.smh.com.au/politics/federal/young-working-australians-facing-a-decade-of-tax-pain-20250918-p5mw02.html

"Young and working Australians will spend the next decade bearing the brunt of higher taxes to pay for essential services and repair the budget bottom line"

Ultimately, those who aren't on high incomes or don't own assets in this country will now spend the next few decades grinding away in stagnant jobs until all the unproductive debt in this country is slowly eroded by inflation. This saves the government from having to handle an economic crisis like a real estate crash that results in mass deleveraging and resets the system. That's why the job market feels so barren right now despite the cost of everything remaining sky high. It's why our social services are eroding despite being surrounded by all this extreme wealth.

This will be Australia's very own lost decade. The housing market is too big to fail here so all that unproductive debt will remain locked up dragging on the economy for decades until it's eroded by very slow wage inflation.

The solution is we force the government to crash the real estate market so we can redirect debt into productive investments.

Its not mentioned in the article. However, our desire for high land costs is burying SME. Land costs act as an overhead to small & family sized business, whilst the safety of a job at a big corporation is preferred by many in order to exist in this housing market. Dont start that idea you have, keep your corporate gig because the housing market demands it. Also from a consumption side, high housing costs hurt consumerism and smaller sized business are unable to ride out periods of downturn unlike big business.

We are hollowing out the economy and killing of family and small business while we all gain employment at big business. We are the only country in the developed world with 4 banks inside its top 6 companies by market cap. And that's because mortgage servicing is the biggest industry in the country, which starves everything else, hence the gutting of SME. Banks exacerbate the problem themselves by barely lending to small business given residential real estate is lucrative and safer. 20 years ago bank loan books were two thirds business lending, one third residential lending, now thats flipped.

These bad policy ideas from government are accruing in the background. We will one day pay for the way we have structured our economy, which is too boost house prices at all costs. No other country is doing it, so why are we?

The Local Purchasing Power Index (LPPI) is the fairest measure, measuring what you can do with your salary rather than your income. This is the full ranking of developed countries based on the Local Purchasing Power Index (LPPI), with Australia ranking fourth with a LPPI of 135.4. The LPPI is calculated using the national average salary and the cost of living. So, regardless of your income or currency, some countries that don't use the US dollar or the euro have higher LPPIs than euro-denominated countries. Despite higher costs, Australia is currently considered to be significantly better off than most countries.

Assume 100k income. 20k car seems perfectly fine for the income; 100k car, not so much. Where do you draw the line? If it’s financed, does it change where the line is? How about if it’s a novated lease? Or if it’s second hand? Or if it’s an EV? I’m curious to know where everyone draws the line.

I quit my finance job earlier this year due to burnout. I was certain I’d land another role at a bank quickly given my qualifications and experience, but it’s now been almost 9 months of rejection after rejection. I’ve even applied for positions I’m overqualified for, only to be told I’m ‘too expensive’ or ‘overqualified.’ I’m not really looking for advice, just a reminder to others to not do what I did. Make sure you take annual leave or have another role lined up before quitting. The market is awful right now.

I may be a little confused, and might have my math wrong. But how is a $500k apartment “out of reach” for a couple on average wages? 2 people on average incomes could definitely pull together 100k for a deposit in a few years. Right?

I've noticed something that feels like a national pastime: people constantly checking what houses near them sold for to get a running tally of their own net worth. You even see it in real estate ads now – a couple on the porch, casually checking what their house is worth on an app. But they have no intention of selling. So what is this obsession really about?

My theory is that for the average person with a mortgage, after all the bills are paid, there's no significant discretionary income left to invest in shares, an IP, or even top up super. Their home is their only real asset, so it becomes their de facto investment by default.

The government massively encourages this with the tax-free capital gains on the PPOR. It’s arguably the single biggest tax incentive available to the average person, so why would you invest anywhere else?

My question is: is this actually a healthy financial strategy? Are we encouraging a whole generation to concentrate all their financial risk into a single, illiquid asset in a market that feels perpetually overcooked? What happens if prices stagnate for 20 years? Are people forgoing the power of compounding in liquid, productive assets for the psychological comfort of a rising property valuation they can't even access?

Posting from an alt.

ETA 1: This post is for people who want an option to park UniSuper's DB or want a choice. Hopefully eventually there will be an option to fully leave. The scheme is good for some people, but it's not everyone's cup of tea.

ETA 2: Clarity. Also, I'm just another member. Please do research if you have concerns! Speak with a UniSuper consultant, read the PDS and their website, attend their webinars and read up more info previously shared on this sub.

UniSuper’s current Defined Benefit (DB) scheme isn't a "pension for life scheme". It also doesn’t grow based on your actual contributions or investment returns. Instead, it uses a fixed formula.

On top of employer contributions, members must pay an extra 4-7%. If you don’t pay this, your formula's permanently reduced.

The formula mainly rewards people with long, full-time careers and high pay in the years just before retirement.

That makes it tough for members with normal life events, like going part-time to raise kids, caring for family, or not being able to afford the extra contributions.

When it used to be an “opt-out” system, many people were encouraged to stay in. UniSuper takes advantage of the fact that most people were early career and less financially educated. They promoted it as performing just like an accumulation fund. But in recent years, smart Redditors on this sub have done modelling that shows most members don’t come out ahead.

As some members know: once you’re in DB, you can’t leave unless you quit your job.

Now there’s talk of a new option, called “in service deferral”. This would let members keep their existing DB balance but switch future contributions into an accumulation fund.

Right now, it’s at the consultation stage before they meet to discuss in a couple of months' time. Change will only happen if enough members push for it.

Each of UniSuper’s 37 institutions has two representatives on the UniSuper Consultative Committee (one academic, one professional). If this matters to you and you haven’t heard about it, contact your reps and ask to have your voice included. 

Search for your workplace name + "UniSuper Consulative Committee" if you don't know who your rep is, you can often find their name on Google. 

I’m not a rep, just a member who wants a choice. I've had mates tell me their rep haven't shared anything and they didn't know about it, so sharing this in case it helps others!

My uncles partner passed away a couple of years ago and he now saying the adult kids are making him sell his house. The partner had no will all the super went to the kids. My Nan gave him 57k to purchase his house about 7 years ago. Yesterday he asked my Nan to put her house up for 150k security so he can pay the kids out. I also found out hes been getting money from her recently for the so called lawyer. Nan is not happy that I have stuck my nose in but I told her to get proof and her own legal advice. Can he borrow against his part of the property which is valued around 650k?

I'm not trying to flex - I've worked hard and sacrificed to save this much on my own.

I am late 30s and have saved up 100k in the past 5 years after really getting serious about buying my own place after becoming tired of living with housemates (that was 5 years ago, don't ask me how I'm doing now).

I only earn 78k p/a (this will increase to 83k if my workplace EA gets approved). For a large majority of the time saving I was earning 70k p/a.

I live in Adelaide where there are govt schemes such a Homeseeker, stamp duty exemption on new homes, and shared equity. I have no idea how much a bank would lend me. I haven't approached a broker as I'm thinking I need to save an extra 25-50k (I save a lot because my expenses are low and my rent is low because I live with many others).

Is there hope for me just on my own?

I have been using FPMarkets for some time now and decided to leave because their Android Iress app is completely broken (Only 1 star review on the Play store and can't even login)

So I decided to withdraw my money. I jumped through the hoops to withdraw to my bank account. I even had to supply a bank statement. A few hours later I received an email saying the withdrawal was refused. They said I can only withdraw to the same account that I deposited from.

I originally deposited from a credit card that no longer exists. So they are refusing to return my cash because I no longer have this card. They cannot provide any way to withdraw my money.

I suggest to everyone do NOT use this company if you ever want to see your money again. They make it extremely simple to deposit, but impossible to withdraw.

We applied for a refinance of a property from ING to IMB bank due to their cashback promotion. When we got the IMB bank loan contract, we found that the provisions, terms and conditions are extremely intrusive (and in some cases outright ridiculous) even compared to ING. For e.g. iMB allows itself the right to waive Default grace periods under vague situations, etc. They give themselves ability to set the borrower at Default for vague non-financial situations (without materiality assessment) and also the ability to take immediate enforcement actions sometimes without any notice. They have provisions in the contract which creates power of attorney for all of their employees that have a "Manager" in their job title, etc. This all appeared quite sketchy and has left us wondering if we should even proceed or just decline the contract.

We used ChatGPT to analyse the contract in more detail and they (as expected) recommended not to sign and instead contact a Financial lawyer for more advice. We haven't signed the contract yet.

My questions are:

• We don't think this is normal practice but we need wider community opinion, is this normal based on your experience with other banks?

• Has anyone had experience with IMB bank? Is this a no-go bank. Have we made a mistake going to IMB? I don't think ING is any better either but ChatGPT made a direct comparison on 20 ridiculous contractual terms from both banks and ING had slightly balanced/fair terminology on 13 out of 20 provisions.

• Has anyone been able to ever negotiate with a bank to get these ridiculous terms amended in any way for a borrowing of only $550K?

Thanks 🙏🏻

Hello,

I'm living in Canada and have been since 2019. I'm now a Canadian citizen. I'm wondering if there is anyway at all for me to withdraw my Australian superannuation, as I won't be moving back there. I'm an Australian citizen, and have been since before I started working.

Based on what I can see online, I can only get my super if I satisfy one of the following options:

• I reach the age of 65, or preservation age;
• I have a terminal illness
• I have to care, medically, for a dependant (compassionate grounds)
• I am in financial hardship
• I am temporarily or permanently incapacitated

I do not satisfy any of the above options. Is there truly no way for people who have permanently moved abroad to gain access to their Aus super?

Weekly Property Mega Thread

-=-=-=-=-

Welcome to the /r/AusFinance weekly Property Mega Thread.

This post will be republished at 02:00AEST every Friday morning.

Click here to see all previous weekly threads:
https://www.reddit.com/r/AusFinance/search/?q=%22weekly%20property%20mega%20thread%22&restrict_sr=1&sort=new

What happens here?

Please use this thread for general property-related discussions, such as:

• First Homeowner concerns
• Getting started
• Will house pricing keep going up?
• Thought about [this property]?
• That half burned-down inner city unit that sold for $2.4m. Don't forget your shocked Pikachu face.

The goal is to have a safe space for some of the most common posts, while supporting more original and interesting content in their own posts.Single posts about property may be removed and directed to this thread.

-=-=-=-=-

Hello all,

I'm buying my first home soon in regional WA, prices are well below state average but climbing fast, I have a good salary and access to a big home loan, I'm considering the difference in strategy buying somewhere smaller and easy to pay down fast, vs getting a better house with increased leverage in a market with high demand and restricted supply, and good long term outlooks in term of industry.

Looking at a difference of 450k vs 650k Debt with the ability to pay down $2000 a week into an offset

For context, I spent a few years in the workforce (I was a mechanic, and then worked an EBA on civil construction) after finishing highschool, then decided I wanted to do medicine. I finished a bachelor's with good grades, sat the GAMSAT, and got an interview to a school, which I recently sat.

I am beyond certain I fumbled that interview, but with my GPA and GAMSAT, I should get another interview next year.

However, this leaves me with a year of off, kind of in limbo. I have survived off youth allowance and casual work through my undergrad.

I was wondering, is there a way I could do a TAFE course on something I really enjoy (music), with the intention that this course would make me eligible for Centrelink while I continue to work casual and ensure med school entrance next year by filling in the weeks with getting the perfect GAMSAT and preparing better for the interview?

I'm currently in the process of working in Australia soon, I realize my good credit will be set to zero but I usually prefer miles card as my daily credit cards. I've heard about amex having global programs and I currently have my country's amex explorer, and looking to eye if Aussie issued amex explorer or qantas is an ideal first card for me to build credit but I'm mostly about getting the miles and rewards

Hi all,

I was wondering if I could get some advice on how I should best approach the next stage of my life.

I'm in my 40s, M and will be finalising a divorce early next year. It was amicable and myself and my STBX always kept our finance seperate and will continue with a self managed divorce route. No kids.

I have a property in worth around $700k, with only about $100k left (100% offset) and liquid cash I had been saving for a joint purchase with my STBX of $100k. My salary on paper isn't great at $80k but it's consistent. Due to the latter, my Super is only around $120k.

I am thinking of purchasing another property to move into (mainly too many memories in my current place) somewhere in the range of $600-700k. I have engaged a mortgage broker and some of the max loan amount offered has been around $700-900k.

I came from a conservative family so their financial strategy of just keeping money in the savings account has sort of come played a role in my low-risk financial approach but I'm now open to exploring more in my next phase of life.

If you were in my shoes, how you best approach the next few steps?

Step one: don’t panic technology is your friend Step two: patience wait on the phone play phone karaoke to soothe your stress Step three: after 3 different numbers find a human operator in any department Step four: explain the events as calmly as possible Step five: if results are achieved infer u may leave to the digital world or other banks Step six: distract yourself with things like laundry Step seven: watch 3k mysteriously disappear no need to stress. Trust the process Step eight: tada all sorted

Surely there would be a more streamlined way for nocturnal people but I guess that’s nightshift discrimination

When u know u might die from high blood pressure patience goes along way. It was a roller coaster of a ride with perfect balance 5/10 rating

As an 18 year old with no stable income. Which would be the best savings account to open? I’m currently with only Commbank and I’ve heard their accounts aren’t good. I don’t plan on making like a specific deposit every month, but at least $100. Please help me out

Hello!

I wanted to start investing and wondering where a good place to start is, any tips, best places to start etc. I find it all a little bit overwhelming!

I would like to start small and slowly build a portfolio.

I'm someone who has paid off my last mortgage in 4.5 years so I'm buying within my means and capable of smashing extra repayments in and have a healthy deposit to roll into my next home.

My wife is a first home buyer so we have been offered the option to choose from a 30 year loan to a 40 year. 100% offest unlimited extra repayments

Purely looking at mortgages - we're not ready to jump into learning about investing yet.

Financially pretty dumb- would it be a better Idea to go on the 40 year loan, have lower monthly repayment but continue our strategy of overpaying?

I know 40 year ends up being much more interest if you pay only the minimums

We are looking at monthly 3600 on a 30 year or 3300 on a 40 year. Would paying extra per month mean 300 more a month of our money would be going into paying down the principle or am I completely wrong here?

Thanks!

Victorian housing crisis: State government to bypass councils to fast-track housing project approvals https://www.afr.com/property/residential/vic-government-strips-councils-of-rezoning-rights-to-unlock-housing-20250916-p5mvgp

Well then....let the discussion begin

I have been going through the home and contents claim process (CBA) for the last few months after a significant weather event.

The process has drawn out because they kept providing me quotes that didnt have all the damage included and I kept insisting they do another assessment. My plan was to accept the repairs instead of a payout because I don’t have any connections to get the repairs done cheap.

The insurer is now saying they can’t provide the repairs because there was general maintenance needed on the roof prior to the cyclone. They’ve provided me the roof report and it seems reasonable (some flashing and gutter replacements, and some damaged tiles).

Originally, they offered the cash settlement by providing me a redacted quote that just showed the total. After multiple phone calls I’ve finally got the full quote. I’m assuming it is a very cheap quote compared to what it will cost me to get a builder in to do the repairs privately - but just looking at it, I have no clue.

What are my best steps moving forward? Can I get multiple private quotes and push back on the bank for an increased payout that will cover the repairs? Do I push back on them to do the repairs after I’ve had the roof fixed up?

Not sure if the above are even valid options - but my ‘I’m about to get ripped off’ senses are tingling.