Innholdsfortegnelse for August 2025 i Money Magazine

Want to futureproof your career? We have the answers in this issue, and (spoiler alert) the jobs that will thrive are a fascinating intersection of the old and the new. The high electrical needs of renewable energy (as outlined by the chair of The Superpower Institute, Rod Sims, on page 20), combined with the immense computational power it takes to validate transactions on the crypto blockchain and fuel AI means electrical skills – from engineers to electricians – are going to be in huge demand. That, and a shortfall of people entering this field, is why the Federal government is offering up to $10,000 for apprentices to study electrical trades. On the other hand, according to the World Economic Forum's Future of Jobs Report 2025, on page 53, ‘new’ roles such…

The full impact of the ETF industry on the self-directed investor has not yet been realised, but it is my belief that the effect will be just as profound as the use of digital recording in popular music. To the casual reader, that opening statement reads like uninspired clickbait for a Daily Mail story, but I've chosen the analogy with care. One of the first major successes of digital recording was 1980's Hotter than July album by Stevie Wonder. On the back cover, Stevie thanks Sony for developing the technology that made it possible. The reason for the thank-you note was because of the difference in recording techniques. In digital recording, the music is recorded as a series of ones and zeroes. The other recording medium is magnetic analogue tape,…

There's no doubt that working from home has been the key workplace trend of the 2020s so far. Whether it's permanent or done as part of a hybrid arrangement, millions of us are doing it and the ATO provides tax deductions for some of the costs that we incur. But are you claiming tax deductions for everything you're entitled to? If you are in employment but work from home, either occasionally or all the time, you are entitled to deductions for costs arising from working at home. The expenses that you can claim include: • Heating, cooling and lighting • Cleaning costs • Decline in value (depreciation) of home office furniture and fittings, office equipment and computers (for items of more than $300) • Computer consumables, stationery, telephone and internet…

Australians are being urged to stay vigilant after the National Anti-Scam Centre (NASC) revealed scammers are impersonating the Australian Competition and Consumer Commission (ACCC) by spoofing its official phone numbers. Fraudsters have reportedly used real contact details of the consumer watchdog, freely available online, to make their calls look legitimate. Victims have reported scammers pretending to be ACCC officers asking for sensitive information or claiming to represent unrelated organisations, sometimes even speaking in languages other than English to confuse or pressure targets. The ACCC says it would never coldcall Australians asking for passwords, banking details or payment. They do not charge for their services or threaten people over the phone. “If you receive a call claiming to be from the ACCC where personal information such as passwords or bank details…

It may not seem like it, but Australia is home to a diverse banking landscape. There's the Big Four, of course, but there are also international banks, customer-owned banks, regionally focused banks, digital banks and banks that cater to Australians in specific industries. There are currently 83 authorised deposit-taking institutions (ADIs) operating in the country, according to the Australian Prudential Regulation Authority. That doesn't include subsidiaries; for instance, Bankwest is a subsidiary of the Commonwealth Bank. There's no shortage of choice either, depending on what you want from your bank. For many, choosing a bank will be a matter of cost. Specifically, how competitive the interest rates and fees are on products such as bank accounts, savings accounts and home loans. What we want from our banks When global public…

Fewer than 10% of Australians now smoke daily, but vaping is surging, with vape use tripling between 2019 and 2022–23, according to the Australian Institute of Health and Welfare. Produced in candy flavours and sleek formats, vapes have become a gateway habit for many young people. In response, the Federal government has banned disposable vapes, and limited nicotine vapes to pharmacyonly distribution via prescription. By restricting imports, the rules have strengthened enforcement against illegal vapes. Yet just as with tobacco, a black market persists. From July 1, 2025, only TGAcompliant nicotine vapes can be sold in Australia. New rules restrict flavours and ingredients, limit nicotine strength, and mandate pharmaceuticalstyle packaging. The reforms aim to tighten quality control and curb the appeal of vaping.…

Generation Life's Felipe Araujo points to three features that are unique to investment bonds. 1 Certainty – investment bonds sit outside a will An investment bond nominated in favour of a particular beneficiary is a non-estate asset that cannot be challenged in the same way as a will. Araujo says this provides the upside that “investment bonds bypass probate, ensuring faster distribution of asset”. 2 Confidentiality As investment bonds don't need to go through probate, the proceeds of an investment bond can be paid confidentially. As McGuire puts it: “No other family member knows who received a particular inheritance.” This makes it possible to pass on wealth to a particular beneficiary without raising the ire of other relatives. 3 Control – a direct say in who gets what and when Araujo explains that…

IS THAT A THING? Bear with me here because we're talking about the consequences of the US-China trade war, which as we've learned by now, changes by the day. After mooting the plan in February then backing off in late April, US President Donald Trump abolished the exemption from duties on goods worth less than $US800 ($1227) coming into the US. At time of print, they were subject to the general 54% tariff Chinese imports or a flat fee of $100. (The tariff was originally 120% but was reduced for 90 days while trade negotiations were taking place.) While the trade war is about bigger things than a $10 shirt bought from one of China's online mega-retailers, the removal of this exemption (known as the de minimis exemption) is important…

It is worth looking at examples of the costs of electrification, and the logical first example is solar. Most solar now comes with a warranty of 20 to 30 years; some companies even warranty solar for 40 years. Most solar installations on households or businesses cost around $1 per watt of ‘nameplate’ capacity. Nameplate capacity is the system's capacity at noon on a sunny day. This is an edited extract from Plug In! The Electrification Handbook by Saul Griffith with Laura Fraser (Black Inc, $27.99). To translate this into real-world performance, we use a number called the capacity factor. Typical capacity factors for rooftop solar in Australia are 0.14–0.19. This means that if you have a 1kW module, it will generate 1kW at noon, but over the course of the…

Returns by asset class year-to-date (YTD) 2025 As we enter the second half of 2025, it is worthwhile taking stock of how key asset classes are performing to the year to date. The table above provides a comprehensive look across key asset classes represented in Australian investor portfolios. An underlying ETF represents the performance of the individual asset class, and 2024 returns provide some context. Given everything that has been thrown at the markets in the first half of this year – tariffs/policy uncertainty in the US, US recession/China slowdown risks, geopolitical tensions (war in Middle East), rising US fiscal deficits/debt risks etc – all asset classes, barring a few, are enjoying another year of solid gains. Since uncertainty remains on many fronts – especially on US policies and tariffs…

Markets go up. Markets go down. But for most investors, it's the going down part that gets the blood pressure rising. And with talk of tariffs, global conflict, the risk of a US recession, inflation not yet dead, and consumers pulling back, you could be forgiven for wanting something - anything – that feels solid. That's where defensive businesses come in. The idea is simple enough: if you own companies that are stable and dependable, you might sleep a little easier when markets get wobbly. But be careful: defensive doesn't mean risk-free. Just ask investors who thought toll roads and airports were sure bets before a pandemic set in. And don't mistake defensive ‘businesses’ for defensive ‘stocks’ – even the strongest company isn't immune from share-price volatility. But for the…

Association of Superannuation Funds of Australia (ASFA) 1800 812 798 (outside Sydney) 9264 9300 (Sydney) superannuation.asn.au Australian Communications and Media Authority 1300 850 115 acma.gov.au Australian Competition and Consumer Commission 1300 302 502 accc.gov.au Australian Energy Regulator aer.gov.au/consumers/making-a-complaint Australian Financial Complaints Authority 1800 931 678 afca.org.au Australian Securities and Investments Commission (ASIC) 1300 300 630 asic.gov.au Australian Securities Exchange (ASX) 131 279 asx.com.au CPA Australia 1300 737 373 (within Australia) +61 3 9606 9677 (outside Australia) cpaaustralia.com.au Do Not Call Register To reduce telemarketing calls 1300 792 958 donotcall.gov.au/contact-us/contact-details Fair Trading/ Consumer Affairs ACT: 132 281 NSW: 133 220 NT: 1800 019 319 QLD: 137 468 SA: 131 882 TAS: 1300 654 499 VIC: 1300 558 181 WA: 1300 304 054 Financial Counselling Australia National Debt Helpline: 1800 007 007…

CALENDAR OF EVENTS Friday, August 1 Cotality dwelling prices Thursday, August 7 Balance of trade Tuesday, August 12 RBA interest rate decision Wednesday, August 13 Westpac consumer confidence index Thursday, August 14 Unemployment rate There's a role for AI in our financial lives, but not at any cost It's hard to think that as little as three years ago more Australians would have associated artificial intelligence (AI) with science fiction rather than as a fixture of modern life. But that's no longer the case. For many, it's become an ingrained part of working life. Whether that's using generative AI to draft emails or summarise reports, it's proving to be a handy work sidekick. The reach of AI isn't going to be limited to the office however. A recent survey conducted…

BOOK OF THE MONTH THE FUN FINANCE FORMULA by Queenie Tan (Wiley, $32.95) Budgeting is a dirty word for many savers but it doesn't have to be, according to author and personal finance expert Queenie Tan. The way you think about money can shape your financial future, so in her book, The Fun Finance Formula, Tan sets out to help readers see money as a tool for freedom rather than a stressor. It's a must-read for anyone starting out on their financial journey or needing some direction along the way. This book breaks it down step by step minus jargon or judgement – just strategies to help you save, spend and invest in a way that aligns with your values. Five readers can win a copy. In 25 words or…

Most investors are considering pursuing more active strategies with their portfolios as a result of ongoing global trade tensions. That's according to Schroders’ 2025 Global Investor Insights Survey, which collected the thoughts of nearly 1000 institutional investors and wealth managers. Four in five respondents reported that they were likely to adopt a more active, less passive, approach to their investments in the coming year, with concerns over tariffs by far the largest driver. In fact, roughly two-thirds (65%) of investors identified tariffs as their top macroeconomic concern – five times higher than the next highest risk identified (the threat of an economic downturn). “Against the backdrop of trade and geopolitical uncertainty, investment priorities have shifted, with resilience now front of mind,” says Simon Doyle, chief executive of Schroders Australia. “Since…

Profile Rod Sims Rod Sims AO has had a storied career. Serving as principal economic adviser to former Prime Minister Bob Hawke, Sims went on to chair the ACCC, the National Competition Council, NSW State Rail Authority and IPART, which regulates transport, energy and water prices. Aside from teaching at the Australian National University, he's now chair of The Superpower Institute, a renewable energy thinktank he co-founded with economist Ross Garnaut in 2023. Rod Sims doesn't do small reform. As Bob Hawke's chief economic fixer, he oversaw some of Australia's most important reforms: dismantling tariffs, establishing the Hilmer competition review, and helping privatise Qantas, CSL, and CBA. Later, as ACCC chair, he spent a decade kneecapping monopolists and taking on the likes of Google and Facebook. He earned a reputation…

QUAFF 2024 Little Yering Pinot Noir $24 This is a regional Victorian pinot from the Yarra Valley's Yering Station that is the epitome of easy drinking. It is light yet intense, fine and silky smooth: showing redcurrant, strawberry and red plum flavours, some underlying power and good length. Satisfying. SPLURGE 2022 Yalumba ‘Vine Vale’ Grenache $40 From a small vineyard in the Barossa comes this wonderfully intense red with refined power and deep, silky smooth, even plush, texture. Sourced from two old grenache blocks (planted in 1929 and 1949), it's hard to believe the ‘Vine Vale’ will improve with age. Indeed, who would bother finding out? This is grenache at its finest and most flavoursome.…

Hi Paul, I'm 64 and my wife is 59. We own our home, have two investment properties, which are rented out, plus a vacant block of land that I bought around 38 years ago as an investment, and we both have some superannuation. We have a small loan on one of the rental properties – about $300,000. I am looking for advice about the best way to set ourselves up for retirement. Neither of us is working currently, having semi-retired. I am thinking of selling the vacant block of land to pay off the debt. My main concern is around the remaining two properties. Should I look to: 1. Sell the older of the two properties, which is 59 years old? The house is valued at about $1 million with…

Can you claim your financial adviser fees at tax time? One of the most common questions I hear is: “Are my financial advice fees tax deductible?” The answer? Sometimes, but not always. The deductibility of advice fees has been a grey area for years, but the ATO's recent determination (TD 2024/7) and supporting guidance from FAAA, CPA Australia, CA ANZ and the Institute of Public Accountants have finally brought clarity to what individuals can claim, and under what conditions. What might be deductible? Under the Income Tax Assessment Act 1997, advice fees may be deductible in two cases: • When they relate to producing assessable income (section 8-1), or • When they relate to managing your tax affairs (section 25-5). That means certain fees you pay to your adviser could…

As tobacco taxes increase, so do the resources to help you quit for good. Talk to your doctor or pharmacist about quitting Your GP or pharmacist is a good first point of contact if you're thinking about quitting smoking or vaping. How can Quitline help? Quitline counsellors can help you create your own step-bystep plan to quit smoking or vaping and support you throughout your journey to give up smoking. My QuitBuddy My QuitBuddy is a free app that helps you get, and stay, smoke-free and vape-free. It gives you tips and distractions and charts your progress. Nicotine replacement therapy (NRT) You can buy nicotine patches at pharmacies, supermarkets or online. Patches are also available at a discounted price on the Pharmaceutical Benefits Scheme (PBS). To get nicotine patches at…

Ending a relationship in your senior years comes with its own set of challenges. My mother, Rosemary, had a ‘silver’ divorce, a late-life split with my dad after 43 years of marriage. She was 67 years old. Divorce at any age is difficult but it can be devastating when you are older. It wasn't feasible for Rosemary to go back to work to pay her bills. Silver divorces, or marriage breakdowns for the over 50s, are on the rise. Nearly one in three divorces involves someone aged 50 and older. There are many reasons why this age group grows apart. The kids leave home and it turns out that they were the glue that kept the parents together. There can be financial motives such as an inheritance on the horizon…

Like so many others, 27-year-old journalist Andrew McKean's cryptocurrency investment journey has been marked by significant ups and downs since he first dipped his toes in Bitcoin almost 10 years ago. “I was one of the investors that got caught out when Bitcoin hit that huge peak in 2017. I think I bought within a week of the peak. It wasn't a lot, probably about $2000, but I was at uni at that point, so it was a decent amount of money for me. “It fell about 50% in a matter of weeks so I just cashed out. I was a classic sucker jumping into something I didn't understand. So it was a really stupid investment, in my mind, at that point.” That was the first time McKean got burnt,…

I did a course in financial product marketing once, back in 1994. In those days the financial product landscape was the Wild West. Whatever you could get away with was up to you. Caveat emptor, let the suckers beware. On the course, we ripped apart a product that was labelled a ‘capital guaranteed leveraged equity investment’. One of a stable of products at the time issued by the cleverest of well-known Australian financial product providers. It was an educational exercise in how to achieve a premium, quality, guaranteed return, for the issuer, at the expense of the client, and this particular product had been picked out by our lecturer as the pinnacle of all rip-offs, a product that ‘dazzled with complexity’ and, in so doing, was dripping in fees and,…

As AI continues to reshape the workforce, we must urgently reimagine how we prepare students for this new reality. Banning or limiting AI tools in schools, as some institutions are doing, including China's recent move to block primary students from using AI for homework, is not just short-sighted, it's counterproductive. Trying to keep students away from AI is like banning calculators in the 1980s. Instead of fearing the technology, we should teach students how to use it ethically, effectively and with purpose. AI will be a fixture in every future workplace. Delaying AI education only increases the skills gap and disadvantages in the future workforce as well as our long-term economy. The real issue is not whether students are using AI, but whether they truly understand the material. That is…

MORE SHARES STORIES ON P80–85 Virgin Australia IPO takes flight Virgin Australia has enjoyed a triumphant return to the ASX, marking a new chapter for the country's second-largest airline after a turbulent few years. Listing under the ticker VGN, shares debuted at $2.90 on June 24, soaring to $3.42 within two days before settling around the $3.10 mark. The rally was helped by a ceasefire between Iran and Israel, sending oil prices lower and making jet fuel cheaper – a positive for airlines battling tight margins. Virgin's comeback comes after it fell into voluntary administration in April 2020. It was bought by US private equity firm Bain Capital for $3.5 billion, which has since reduced its stake to 40% post-IPO. Qatar Airways still holds about 23%. Investors are snapping up…

Need Paul's help? Send your questions to: Ask Paul, Money magazine, Level 7, 55 Clarence Street, Sydney NSW 2000 or money@moneymag.com.au. Paul can't personally answer your questions other than in the Q&A column. By submitting your question to Money, you consent to having your question and the response you receive from Paul published in the print and digital edition of Money. Will wants to spend his savings to be eligible for the age pension. Hold off on the spending spree and get some advice first Q After the sale of our house, do we have to provide evidence to Centrelink of what we spend our money on, if we go on a spending spree for age pension cut-off purposes? Thank you for your question, Will. Fortunately, while we have perfectly…

LISTEN UP Sony – WH-1000XM6 Headphones Thanks to the wonders of noisecancelling technology, that new album doesn't have to be drowned out by outside noise. With an in-built HD noisecancelling processor, that's exactly what Sony's latest WH-1000XM6 Wireless Noise Cancelling Headphones are designed to do. In fact, the adaptive sound-control feature means the headphones’ ambient sound settings will automatically adjust to the surrounding environment to create a better listening experience. Users can control it with their voice, hands or head movements. The headphones have a battery life of up to 30 hours’ playback time and come in black, midnight blue or platinum silver. Cost: $699.95 sony.com.au SMALL STUFF Denon – AH-C840NCW Earbuds Wireless earbuds have been a revelation for people wanting a lightweight option to listen to music and podcasts…

Jim, you have built a very good asset base with your home, two investment properties, vacant land and some super. Property has been an excellent investment. This is hardly a surprise when we look at population growth. When I was born in 1955, the population was some 9.2 million. Today it is approaching 27 million. The pressure on property prices would be nowhere near as significant if a greater percentage of our land mass was appropriate for large towns and cities. The reality is we cluster around our coastline and inland areas with productive land and reasonable rainfall. Property is a simple asset; in that it is driven by supply and demand. We have a limited supply of land with the infrastructure needed for modern life: schools, hospitals, entertainment, restaurants…

Imagine standing in front of a wall of cereal boxes – each colourful, each shouting something about fibre or wholegrains or heart health. How do you choose which one to buy when you are in a rush and just want something for breakfast? Now, replace those cereal boxes with credit cards, banks, super funds, or insurance plans. The way we might choose a cereal isn't that dissimilar to the way we would choose financial products. Well, that is, we think we choose. But most of the time, we don't. Deeply human not stupid In the split second before we decide, a thousand things happen behind the curtain of consciousness – biases, hunches, heuristics – all heavily influenced by experience and emotion. What looks like a rational decision is often something…

When it comes to house prices, the expression location, location, location is spot on. In our diverse real estate markets, the value of any property is strongly impacted by its location, and not just the suburb or the street but also its proximity to several micro factors, which can either add or detract from its appeal and, in turn, its value. THE GOOD 1 Being near a school is usually a plus: Domain's 2023 School Zones Report shows that across the nation's capitals almost half of primary and secondary school catchment zones outperformed the house price growth of the suburb they are in, commanding up to a 10% premium. Even better is being near a school that is highly rated. The price of a house located in a high-performing school…

Over the next few weeks superannuation fund members will receive their annual statement via email or through the post. It's an important document that reflects how well your investment has performed plus much more besides. The more you engage with your super the better off you will be in the long run. It will help you make informed decisions, give you peace of mind and avoid potential headaches further down the track. Many fund members end up in a default fund, a MySuper balanced fund, because they have left the decision to their employer rather than doing some research and choosing a fund that works best for them. Fortunately, there are guardrails around default products. If they underperform for two consecutive years, they can no longer accept new members. Together…