Income Protection Australia News
Fri, 05 October 2007
MBF To List On ASX
MBF Australia said it intends to demutualise and list on the Australian stock exchange in an attempt to grow and diversify its business.
The health insurer said its plans have been endorsed by the MBF Council.It said a share market listing is likely in calendar 2008.
The board believes that demutualising is in the best interests of policyholders, that it will maximise MBF's future growth potential and enhance its ability to compete in a rapidly changing environment," chairman John Conde said.
Fri, 02 November 2007
Income protection insurance
11/21/2002
For anyone with big debts such as a sizeable mortgage, a small business that is growing or school fees for more than one child, losing the ability to earn income can be a financial disaster - in the same league as retrenchment or having a small business fail.
Many will need more than basic workers' compensation - covering employees for work-related accidents and illness - and government sickness benefit, available as part of the social security safety net.
If you want more than this - up to 75 per cent of your regular income - the insurance sector offers income protection, income replacement and salary continuance insurance. They are one and the same.
Source: E News Room
Fri, 02 November 2007
Do I Need Income Protection Insurance?
SOURCE: Malcom Wybrow, PS News Personal development .
It's a widely held belief that young people tend to think they are invincible. "It's not going to happen to me!" That's the likely reason why thoughts about getting the right Income Protection insurance are far from their minds when they start work in the Public Sector.
Do I Need Income Protection Insurance?
Just examine the road accident statistics, the number of serious sporting injuries and the fact that one person in seven between 20 and 30 goes into hospital each year. It's easy to see there is a very real possibility that any young person could end up without their most valuable asset - their capacity to earn an income.
It's one reason why many Public Sector super schemes include Income Protection premiums as an option with superannuation payments. But once you recognise the need for this vital protection, you must be sure this option is the one offering cover to suit your needs, lifestyle and goals.
Sun, 18 November 2007
Rudd unveilsmaster plan
The first act of Prime Minister Kevin Rudd if he wins saturay's election will be to ratify the Kyoto Protocol on climate change, the Labour leader has revealed.
As the final countdown to the November 24 poll begins, Mr Rudd outlined to THE HERALD SUN his top five policy goals for the first 100 days if Labour Forms Government.
Declaring Christmas Day and Boxing Day the only holidays the first Labour cabinet in 11 years would enjoy over the summer break if victorious, he promises to oversee the implementation of policies in all portfolios.
SOURCE : The Herald Sun Nov 18 2007
Sat, 24 November 2007
Low-paid workers don't trust AWAs
November 22, 2007 01:51pm
A THIRD of low-income workers on Australian Workplace Agreements do not trust their employers and are unhappy with working conditions, a survey has found.
Additionally, 23 per cent – almost one quarter – of lower paid workers on AWAs claimed their bosses were not allowing them to meet family responsibilities, the Monash University study says.
The national survey of 1023 employees, carried out by the Australian Centre for Research in Employment and Work (ACREW), focused on five key areas, including experiences of employment, employee influence and involvement, and management.
Survey leader Julian Teicher said workers' experiences of their jobs and employers was generally positive but the attitudes of low income workers on AWAs was vastly different.
SOURCE HERALD SUN
Mon, 03 December 2007
One of Australia's biggest non-bank lenders has called on the federal government to give tax breaks for first home buyers.
LABOR's draft laws to scrap individual work contracts will go to cabinet before Christmas and be introduced early next year, but Australia's Workplace Ombudsman has warned that until then, employers who coerce workers into signing Australian Workplace Agreements will be hunted down and prosecuted.
SOURCE: ABC Mon 3 DEC 2007
Sun, 09 December 2007
Health Ministers meet to tackle hospital funding
PM - Friday, 7 December , 2007 18:18:00
Reporter: Rebecca Barrett
MARK COLVIN: Commonwealth-State relations got their first real road test since the federal election today, at a meeting of the nation's Health Ministers. And if we're to believe them, it was all sweetness and light.
The Ministers said after their meeting in Hobart that the blame game on health had ended. Their task was to begin discussing the next hospital funding agreement. The Federal Government had come with an offer of $600-million to start clearing elective surgery waiting lists around the country.
State and territory ministers now have a week to come up with plans to wipe out the backlog. The new Commonwealth money should start flowing early in the New Year.
SOURCE : ABC RADIO NEWS 7 December 2007
Mon, 17 December 2007
Please help us to restore our fragile environment.
Ten more years at the current growth rate of green house pollution will kill us all. It must be dealt with now. That is right now!! Even if we stopped polluting today it would take thirty years for the earth to recover. That’s Thirty years. But it won’t happen that way will it? There is no way it will stop tomorrow, but it must be stopped or we humans as a species, and nearly every other species on earth are doomed.
It is therefore vitally important that you/we make people who count aware of the LEA technology.
Now that we are ready to showcase our technology it is time to act. Others, who support the coal, oil, and uranium industries are lobbying government’s world wide to push their own agendas. They have years of experience, and the know how, financial backing and networks to help them to “play the game” Remember Big Business does not take kindly to what they see as competition. In reality what we propose for our technology actually helps them to extend their resource life and by so doing make them more money. Take oil for example, what if the diminishing supply could last for an extra ten years, what would it be worth a gallon or litre then? We are not in opposition to these people, we want to fit in alongside them and help them as well.
Source: extract from open letter www.lutec.com.au LU Brits & John Chritie
Thu, 27 December 2007
Banks revisit IT options
18 December 2007
While no contracts have been signed yet, three of the big four banks are investigating upgrades of their core transaction processing systems. Sources told The Australian that the three projects would cost a total of around $3 billion and that CBA is furthest down the track. The other two candidates are National Australia Bank and ANZ with NAB saying that it is still looking at options and ANZ refusing to comment ahead of a shareholder meeting today. While IT companies have been selling the idea of major overhauls to the banks they have so far been resisted in favour of smaller projects aimed at decoupling customer-facing systems from their core banking engines.
SOURCE:The Australian
Sat, 05 January 2008
Mental health related to income: research
Saturday, 13 October 2007
Source: ANU
Income can be a determinant of mental health risk, especially in cases where income is lost suddenly - economic shock - when people can slip into depression, according to research presented at a conference at The Australian National University.
Joanne Epp, a PhD student at the University of New South Wales, has been examining the link between socio-economic status and mental health.
She says there is a relationship between being financially well and mentally well.
"People are more likely to have a mental illness if they are from a low socio-economic background, but income is not a factor for people with other chronic conditions, like diabetes, heart disease or asthma," she said.
Ms Epp says the research considers a number of variables, including education.
Those with higher education and higher income are less likely to have mental illness than others.
She says income support for people who are suffering economic shock could go some way to preventing stress that leads to mental illness and should be considered by governments.
Ms Epp presented the findings of this project thus far at the Emerging Health Policy Research Conference held by The Menzies Centre for Health Policy, a joint initiative of The Australian National University and the University of Sydney funded by the Menzies Foundation.
The annual conference gives new researchers in the field of health policy research an opportunity to promote their work.
Mr Robert Wells, Co-Director the centre said there was a great deal of important work being done by new researchers to the field of health policy.
"All of the people presenting at this conference are doing doctoral or post-doctoral research. These researchers are the next generation of leaders in health care research and they have a great deal to contribute to the health care debate in Australia.Their work will have implications for health policy into the future," he said.
For more information:
Jane O'Dwyer Media Manager The Australian National University
Mon, 14 January 2008
New rules for debenture ads
20 December 2007
The Australian Securities and Investments Commission has issued tough new guidelines for companies offering debenture products. They will no longer be able to use terms such as "secure", "guaranteed" and "no fees", nor will they be allowed to advertise an interest rate unless the credit rating for the product is given prominent disclosure. Any advertisements offering debentures to retail investors will have to include a statement warning that investors risk losing some or all of their money. The new rules come into force from January 2008.
By The Financial Review
Mon, 21 January 2008
Tourism industry welcomes crackdown on rogue operators
The tourism industry has expressed its support for a Federal Government plan to create a national accreditation system for tourism operators.
The move is designed to weed out rogue practices in the industry.
The proposal will be considered at a meeting of state and territory tourism ministers in March.
Olivia Wirth, from the Tourism and Transport Forum, says it is great news that nationally recognised standards are back on the Government's agenda.
"It's very important to have consistent industry standards across all Australian tourism products so that consumers - whether they're from overseas or from Australia - know that what they're paying for is exactly what they're going to get," she said.
SOURCE:ABC NEWS 20 Jan 2008
Sun, 10 February 2008
Keeping it clean
SOURCE Plugger.com February 04, 2008 08:49am
Article from: Font size: + -
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NOW green is the new black, claiming a move to limit or negate the effects of your carbon emissions is a major marketing tool for many small businesses.
After all, if there are two companies offering the same products or services for exactly the same price, there's little doubt consumers would pick the company that claims to be more environmentally friendly than the other one.
But just as these claims turn into campaigns, it's understandable a degree of cynicism dawns.
Experience tells consumers there can often be a big gap between the claim and the fact.
The Australian Competition and Consumer Commission is on to this by identifying last month the need to provide guidance to consumers and businesses on claims being made about carbon offsets.
Wed, 20 February 2008
Deductions and illegal income
Until recently, Australian courts had not distinguished between legal and illegal businesses in the collection of taxes. Consequently, a drug dealer was able to claim a deduction for income derived from illegal businesses. The ruling in "La Rosa v Federal Commissioner of Taxation" meant that a convicted drug dealer was given a tax break. After an outcry from the public, the Australian Government added s 26-54 to the Income Tax Assessment Act 1997 to disallow deductions for income from illegal businesses
Source - Australian Tax Review
Feb 19, 2008
Wed, 27 February 2008
Farm income tipped to soar
February 19, 2008 12:00am
Article from: Font size: + -
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A BIG rebound from the drought is forecast to raise farm GDP by $2 billion and lift farm incomes for next financial year by 43 per cent, according to NAB.
The bank expects the rural boom to add about half a per cent to overall GDP in 2008-09.
NAB agribusiness economist Frank Drum said that early forecasts "point to an above-average rebound from drought in 2008-09 -- an increase of almost 30 per cent, following a fall of over 20 per cent during the past four years".
He said that the 43 per cent jump in net value of farm production would result in the overall farm GDP number jumping by $2 billion to about $7 billion. This follows an estimated increase of $2.7 billion in 2007-08 to around $5 billion. The previous year, 2006-07, was a devastating drought year.
There are high hopes for grain production, but irrigation farmers along the Murray system face an uncertain outlook.
Mr Drum said widespread recent rains, along with record grain prices, were expected to result in a 65 per cent increase in winter crop production. "Producer intentions point to an expanded winter cropping program in 2008-09 with wheat production forecast to increase by 74 per cent," he said.
Ron Storey, from Australian Crop Forecasters, said grain growers north of Dubbo were quietly confident about the winter cereal crop, even though planting was still three months away.
But Mr Storey said southern NSW, Victoria, South Australia and Western Australia had different soils, and were more dependent on rain during the growing season. "It is also more of a winter rainfall area," he said.
While the summer rains through southern Australia are welcome, it is too early to benefit planting. "If we were having these sorts of rains on Anzac Day, people would say 'fantastic'. Cautious optimism is the way I would describe it," Mr Storey said. "There is a little bit of feeling that the weather pattern does appear to have changed."
Mr Storey said farmers were now planning their crops, taking a low-risk approach. "But with the price incentive there, people are wanting to plant a crop. Prices are at all time highs, they are excellent," he said.
NAB said the outlook for irrigated agriculture "remains in the balance". While water storages in Queensland and northern NSW have filled in the recent rain, "further inflows into key storages in the lower half of the Murray-Darling Basin are required to ensure increased allocations to irrigators this year".
Storages in the Murray have fallen to 20 per cent capacity, well below the long-term average of 65 per cent.
The improved season means producers, who had to sell off stock during the drought, will now be holding onto their livestock to increase their numbers.
SOURCE: HERALD SUN FEB 19 08
Wed, 27 February 2008
Farm income tipped to soar
February 19, 2008 12:00amA BIG rebound from the drought is forecast to raise farm GDP by $2 billion and lift farm incomes for next financial year by 43 per cent, according to NAB.
The bank expects the rural boom to add about half a per cent to overall GDP in 2008-09.
NAB agribusiness economist Frank Drum said that early forecasts "point to an above-average rebound from drought in 2008-09 -- an increase of almost 30 per cent, following a fall of over 20 per cent during the past four years".
He said that the 43 per cent jump in net value of farm production would result in the overall farm GDP number jumping by $2 billion to about $7 billion. This follows an estimated increase of $2.7 billion in 2007-08 to around $5 billion. The previous year, 2006-07, was a devastating drought year.
There are high hopes for grain production, but irrigation farmers along the Murray system face an uncertain outlook.
Mr Drum said widespread recent rains, along with record grain prices, were expected to result in a 65 per cent increase in winter crop production. "Producer intentions point to an expanded winter cropping program in 2008-09 with wheat production forecast to increase by 74 per cent," he said.
Ron Storey, from Australian Crop Forecasters, said grain growers north of Dubbo were quietly confident about the winter cereal crop, even though planting was still three months away.
But Mr Storey said southern NSW, Victoria, South Australia and Western Australia had different soils, and were more dependent on rain during the growing season. "It is also more of a winter rainfall area," he said.
While the summer rains through southern Australia are welcome, it is too early to benefit planting. "If we were having these sorts of rains on Anzac Day, people would say 'fantastic'. Cautious optimism is the way I would describe it," Mr Storey said. "There is a little bit of feeling that the weather pattern does appear to have changed."
Mr Storey said farmers were now planning their crops, taking a low-risk approach. "But with the price incentive there, people are wanting to plant a crop. Prices are at all time highs, they are excellent," he said.
NAB said the outlook for irrigated agriculture "remains in the balance". While water storages in Queensland and northern NSW have filled in the recent rain, "further inflows into key storages in the lower half of the Murray-Darling Basin are required to ensure increased allocations to irrigators this year".
Storages in the Murray have fallen to 20 per cent capacity, well below the long-term average of 65 per cent.
The improved season means producers, who had to sell off stock during the drought, will now be holding onto their livestock to increase their numbers.
SOURCE: HERALD SUN FEB 19 08
Sun, 09 March 2008
Rent rises hitting low-income families
Posted Tue Jan 15, 2008 10:04am AEDT
Welfare groups say rising rents are having a huge impact on Queensland's low-income families, particularly in regional areas.
New figures from the Residential Tenancies Authority show the average weekly rent for a two-bedroom unit rose 10 per cent in the past 12 months.
In north-western Queensland, rents rose an average of 58 per cent.
Jill Lang from the Queensland Council of Social Service says that extra money is leaving a big hole in the family budget.
"That immediately impacts on all the basics, whether it's the cost of food or kids' school costs," she said.
"You probably throw in transport as well with the rising petrol prices. It means people are just doing without some of the really essential things for children and families, they can't afford it."
SOURCE: ABC NEWS
Sat, 22 March 2008
News 'won't fight Microsoft for Yahoo'
March 11, 2008 - 7:41AM
Rupert Murdoch said on Monday his News Corp would not get into a fight with Microsoft Corp over Yahoo Inc, confirming what most industry and Wall Street observers suspected.
Murdoch's company has been in talks with Yahoo over a transaction to combine News Corp's MySpace Internet social network and other Internet assets with Yahoo, a source familiar with the talks said earlier.
"We're not going to get into a fight with Microsoft, which has a lot more money than us," Murdoch told investors at the annual Bear Stearns media conference.
Microsoft has made an unsolicited $US41.4 billion ($A44.71 billion) bid to buy Yahoo.
Time Warner Inc has also held talks to combine its AOL Internet division with Yahoo, another source said last week
SOURCE:SMH
Thu, 17 April 2008
Stocks to watch
17/04/2008 4:58pm
Stocks to watch on the Australian stock exchange at the close of trade:
WPL - WOODSIDE PETROLEUM LTD - up 99 cents to $59.29
Tropical cyclones off Australia's north west coast, shut downs and maturing fields have curtailed Woodside Petroleum oil and gas production and sales for the first quarter of 2008.
FPA - FISHER AND PAYKEL APPLIANCES HOLDINGS LTD - up 22 cents, or 11.7 per cent, to $2.10
Whitegoods manufacturer Fisher & Paykel Appliances Holdings will close its Brisbane plant with the loss of 310 jobs as part of a strategy to concentrate its production operations in Thailand, Mexico and Italy.
WES - WESFARMERS LTD - steady at $36.97
Wesfarmers is considering an equity raising as it seeks to refinance $4 billion in bridging finance used to fund its $20 billion takeover of the Coles retail empire last year.
PPT - PERPETUAL LTD - down $2.08, or 3.55 per cent, to $56.52
Losses to Perpetual stemming from one of its credit funds ballooned by more than $6 million last month to $26 million, setting it up for a fall in annual profit, as hostile market conditions eroded its funds under management.
ALZ - AUSTRALAND PROPERTY GROUP - up five cents to $1.645
Australand Property Group has reiterated its earnings guidance for calendar 2008, despite challenging conditions in the property sector and volatile credit markets.
OXR - OXIANA LTD - up 12 cents, or 3.6 per cent, to $3.45
ZFX - ZINIFEX LTD - up 49 cents, or 4.9 per cent, to $10.49
Oxiana managing director Owen Hegarty has endorsed his predecessor Andrew Michelmore as the right candidate to lead an expanded group amid shareholder disdain at the proposed management change.
PSA - PETSEC ENERGY LTD - up 1.5 cents to 77.5 cents
Mid-tier oil and gas company Petsec Energy has substantially lifted production during the March quarter but has conservatively tipped a less buoyant result for the balance of this financial year.
VPG - VALAD PROPERTY GROUP - steady at 78.5 cents
Valad Property Group has been given the green light for the development of Gold Fields House in Sydney, and sold its Craigieburn and Shepparton sites in Victoria and Paradise Point in Queensland.
SUN - SUNCORP METWAY LTD - up five cents to $13.50
Suncorp Metway has bought 56 ATMs in Westfield Shopping Centres throughout Australia from Citigroup for an undisclosed sum.
WYL - WATTYL LTD - down 23 cents, or 12.2 per cent, to $1.655
Paint maker Wattyl Ltd expects earnings before interest and tax in the second half to fall to between $10 million and $12 million from the $12.8 million made in the first half.
CMW - CROMWELL GROUP LTD - down 0.5 of a cent to 79.5 cents
Property and funds manager Cromwell Group Ltd has appointed former Investec Bank Australia Ltd chief executive and executive chairman Geoffrey Levy to the role of non-executive chairman.
CRT - CONSOLIDATED RUTILE LTD - down 4.5 cents, or 11.11 per cent, to 36 cents
Mineral sands miner Consolidated Rutile Ltd (CRL) expects profit to more than halve this year as production slows.
SRL - STRAITS RESOURCES LTD - up 39 cents, or 6.28 per cent, to $6.60
Straits Resources plans to streamline its operating structure by tipping its coal assets into its 51 per cent owned unit Straits Asia Resources Ltd
Source: Compare Shares
Sat, 17 May 2008
Budget set to target high income earners
Posted Sun May 11, 2008 10:20am AEST
Federal Finance Minister Lindsay Tanner says high income earners will have to carry the burden of spending cuts in this year's Budget.
The Government has signalled it intends to means test family payments like the baby bonus and today confirmed it will increase taxes on luxury cars.
Mr Tanner says high income earners did well under the previous government.
He says there is now a need to protect lower income earners from what has to be a tough Budget.
"We are doing our best to look after people on lower incomes and inevitably that means more of the burden will be carried by people at the upper end of the income scale," he said.
"But that's fair enough because those people, myself included, have had a very good run."
SOURCE: ABC NEWS
Sun, 25 May 2008
Cindy McCain tax returns: $6.1 million income in 2006
Republican John McCain earlier today released his medical records. Now his campaign is offering up summary pages of his wife Cindy's 2006 tax returns.
Her income that year as $6.1 million -- including about $300,000 in salary, $743,000 in capital gains and $4.6 million in real estate, royalties and partnerships. She paid about $1.7 million taxes.
The two summary pages can be seen here. Cindy McCain, heiress to a beer-company fortune and president of the company, keeps her finances separate from her husband's and recently vowed never to release her tax returns.
The Associated Press says a summary of Mrs. McCain's 2007 returns will be released when it's available.
An overview of John McCain's tax documents is here.
May 23, 2008
The Democratic National Committee said Friday that the summary documents for 2006 were "woefully inadequate." "It is laughable for the campaign to release so little information and say they are being transparent. This is another indication that John McCain is not serious when he says he wants to run a transparent campaign, and a disturbing sign that a vote for John McCain is a vote for four more years of secrecy," DNC spokeswoman Karen Finney said in a statement.
SOURCE: USA TODAY ON POLITICS
Sat, 31 May 2008
Rudd defends petrol policy
May 31 2008
In an article from AAP PM Kevin Rudd defends the petrol price policy.
Stating "there is no silver bullet to fix the problem,through the Budget, the Government had done "as much as we physically can" to help."
Mr Rudd was grilled by voters for almost an hour by TV studio audience But it was the price of petrol that dominated the discussion.
He said the price of petrol, which hit a record high of $1.62 per litre in capital cities earlier this week, was largely out of his control.
"When it comes to things you do not have direct control over, obviously in terms of the global price of oil, then what you can do is simply act in the other areas to make sure that there are some more dollars to draw upon in terms of the family budget."
Mr Rudd also defended the planned FuelWatch program and criticisms that the Government would simply be watching fuel prices while the coalition's policy of reducing the fuel excise by five cents per litre would have a real impact.
He said the responsible course of action was to maximise competition among the petrol companies.
All this on the back of fuel companies release of net profits being made public.
Caltex reported net profit after tax in 2007 was $444 million on a replacement cost of sales basis, which removes the effect of oil price movements.
Royal Dutch Shell and BP, Europe's two largest oil companies, both saw first quarter profits jump thanks to record crude prices and higher natural gas prices.Shell's first quarter profits rose 25pc to $9bn, while BP's profit soared to $7.6bn from $4.6bn in the same period.
While US Based Chevron posts record $18.7 billion profit in 2007, the fourth consecutive year that the San Ramon company made record amounts of money.
Other companies have made even more. Exxon Mobil, the country's largest oil company, reported on Friday that its 2007 profit hit $40.6 billion, a 3 percent increase from 2006, while sales passed $404 billion. No American business has ever scored a higher profit.
"The major oil companies' incredible profits, boosted by multibillion-dollar tax subsidies to the industry, are ultimately clobbering taxpayers," said Judy Dugan, research director for the Foundation for Taxpayer and Consumer Rights.
Here in Australia it seems the skyhigh price of petrol will soon be felt more than just at the bowser, with the earnings of companies expected to be downgraded as profit margins are squeezed by higher oil prices.
The usual suspects of airlines and transport companies are in the sights of analysts at the moment, as they question what effect on the bottom line there will be from oil prices remaining above the $US130 per barrel mark.
However, the effect of higher oil prices will be felt across the market, particularly in the second half of the year, as the input and transport costs move higher and the spending patterns of consumer are crimped as they pay more for fuel.
It needs to be remembered that despite the current hubbub surrounding fuel prices, Rudd and Wayne Swan have not actually done anything from a serious policy perspective that will bring down the price at the petrol bowser for consumers.
Whilst a showdown with the states is looming over the proposal to scrap the GST that is levied on the fuel excise.
In reality, Rudd has only moved to include the GST arrangements on excise in the broad review of the national taxation system to be headed by Ken Henry.
The inquiry could report defiantly that the ``tax on a tax'' should be scrapped but the government does not have to follow suit. Like the majority of these reviews, the recommendations could be ``reviewed' by the government with little actual outcome.
The "tax on a tax" issue and fuel prices is an issue that if continued could see prices hikes for us all in groceries, produce and most consumer goods which will undoubtedly severely effect the economy and affordability crisis looming for all Australians.
How much longer Mr Rudd do we need to allow the Oil companies to create record (almost criminal) amounts of profit and seemingly hold the world to ransom with fuel prices, whilst almost all governments worldwide claim to be powerless in the effort to control ever increasing bowser prices ?
Do we see a whole transport industry crippled, or smaller operators closed their doors due to rising costs leading to major shortages of basic living needs shortages in groceries and produce before any steps by not only governments, but bodies like the ACCC.
The Mega rich tyccons of places like Dubia must be rubbing thier wallets daily whilst planning more spectacular and incredible feats of architecture rising up out of the once deserted strip that was named the main street of dubia in the early 90's.
Author: Craig OBrien
Sources: ABC NEWS, AAP, NEWS.COM, The Chronicle, Bloomberg
Tue, 10 June 2008
Fuel Prices: The Mass Debate
10 June 2008
Or How to Knock About 50c a Litre Off the Price Of Fuel
First and foremost this debate should be centred on Diesel NOT Unleaded. Why? You may ask. Just look at the increase in supermarket prices for your answer. While it may cost you $5 or $10 extra to fill your tank everything that is transported (which is everything) rises as Diesel rises. My average basket at the supermarket per week has increased on average $30 and that’s for one person. Australia’s whole economy is tied to Diesel and therefore it should be afforded the same priority and status as water i.e. an essential commodity.
I own a small transport company and I have had to significantly raise my prices twice in the past year just to maintain profit margins. This cost you money too.
I am compelled to write this letter because I am sick of all the namby-pamby pussyfooting around everyone seems to be doing about the current fuel debate. I have spent considerable time researching this area because it affects my income. Contained herein is the WHOLE truth about the debate, the WHOLE big picture, if you will. NO-ONE till now has had the testicular fortitude to stick their necks out and present the WHOLE argument about just how much we are being RIPPED OFF. If you want the truth and the WHOLE truth read on.
DON’T – Listen to spin doctors from the oil companies. THEY HAVE A VESTED INTREST TO KEEP FUEL PRICES HIGH.
DON’T – Listen to the government – state or federal. THEY HAVE A VESTED INTREST TO KEEP FUEL PRICES HIGH.
DON’T – pay too much attention to news or current affairs programs. THEY HAVE THEIR OWN AGENDAS.
So here we go, how to make fuel cheaper!
FIRSTLY – DISBAND FUEL PARITY
Parity, for those that don’t know, is government sanctioned price fixing (simple as that). Parity allows fuel companies to sell their products for the highest current price they find in the Asia Pacific region. It completely disregards supply and demand economics and eliminates any need for competition amongst themselves.
Don’t believe me? Just look at the price of Diesel. If you remember growing up when Diesel was always 10-15c p/l cheaper than Petrol you might understand this more.
How can a product that costs far less to produce (partially a by-product of producing Unleaded as well) and a product that Australia uses more of than any other fuel be MORE EXPENSIVE than Unleaded? Simple, ring Singapore, where they don’t use a lot of Diesel and import all their fuel, find out how much it’s selling for there and charge the same here – sound fair? NOT!
Any other industry who tried this one would be hauled of to the High Court quick smart and prosecuted for price fixing! Oh but hang on, our government ALLOWS them to do this
NUMBER TWO – BARRELL PRICE
That price the news loves to show us each night is the PREMIUM GRADE crude oil price. Australian oil companies DO NOT buy PREMIUM GRADE crude oil! In fact Australia produces around 70% of its own oil and imports about 30%. The cost of production per litre produced here is cheaper than that of imported fuel, but in no way is this factored into the pump price, because they don’t need to (SEE PARITY ABOVE) we pay a pump price based on PREMIUM GRADE crude oil price the same as if we imported all of it, say somewhere like Singapore! Starting to get the picture?
NUMBER THREE – LEVIES
Everyone knows that both State and Federal Governments take a large slice of the cost of a litre of fuel. This equates in total to about 46% of the price per litre. This money is used for infrastructure, road trauma etc. etc. so fair enough right? WRONG!
What is wrong is that it is a PERCENATGE! Look at this. If a litre of fuel costs $1.00 then the Government gets 46c p/l, right? A week later fuel rises to $1.10 p/l; the Government gets 50.6c p/l, bingo! Something tells me that in one week, their costs, IN NO WAY have gone up 9%!
As I stated previously – THE GOVERNMENT HAS A VESTED INTREST TO KEEP FUEL PRICES HIGH. THEY MAKE LOTS MORE FREE MONEY! Why else do they allow fuel companies to maintain PARITY?
If they changed the tax (sorry, levy) to a flat rate tied to the GDP then the fuel price would drop drastically and immediately!
NUMBER FOUR – GST - THE DOUBLE DIPP
Now this one is outright “THIEVERY” and also applies to cigarettes and alcohol.
GST = Goods and Services Tax, correct?
46% or 46c in every dollar in the price of a litre of fuel is TAX (sorry; again, LEVY).
What part of LEVY is a good or a service? YOU CANNOT TAX, TAX RIGHT? WRONG!
You do the math.
Say fuel costs $1.00 p/l – the GST component = 9c
But hang on a minute 46% or 46c of this is TAX!
i.e., 4.14c of the GST is ILLEGALLY CHARGED ON THE TAX COMPONENT! Not much you say?
FOR EVERY LITRE SOLD IN AUSTRALIA EVERY DAY!
That equates to millions of free dollars for the Government! I’ll say it one more time - THE GOVERNMENT HAS A VESTED INTREST TO KEEP FUEL PRICES HIGH. THEY MAKE LOTS MORE FREE MONEY!
The GST on fuel should be 5.4% not 10%. At $1.75 p/l this would drop the current price by around 8c p/l.
Feeling a little annoyed? You should be!
Even without disbanding parity and introducing real competition among fuel companies, you should be paying about 40c less per litre!
My name is Graeme Strempel, (gusto1@arach.net.au) and I run a small transport business, I happily welcome anyone, Government and fuel companies included to prove me wrong.
If you feel strongly about this issue then pass this missive on to everyone in your address book. Eventually someone might take notice.
SOURCE: GREAME STREMPEL
Mon, 23 June 2008
Fuel Price -World protests spread
Is Australia NEXT?, maybe we should be ??
Whilst I agree something needs to be done, some other countries methods are maybe a bit over the top, but i guess how else are they to be heard.....So what is next in the global debate that i simply describe as the OIL COMPANIES HOLDING THE WORLD TO RANSOME!.
Artcicle source ABC NEWS Fri Jun 20, 2008
Spanish farmers marched, Israeli truckers slowed rush-hour traffic and Nepali students stoned cars overnight in anger at rising fuel prices and inflation that they say are crippling their economies.
Protests by truckers, taxi drivers, fishermen and farmers demanding fuel tax breaks have spread across the world, increasing fears of political instability and a global economic downturn.
The oil price, which dipped $US3 to $US133 after China's announcement, has touched record highs near $US140 in recent months, fuelling inflation and squeezing business margins.
In Madrid, thousands of farmers brought traffic to a halt on the capital's busiest road to demand lower diesel tax to help cushion the blow of higher fuel costs and low producer prices.
"This is the last straw. If good spring rain hadn't arrived this year and last, we would already have gone bust," sugarbeet farmer Evaristo Ortega said.
"The price of diesel and fertiliser is impossible to bear."
Diesel prices have shot up to around 1 euro ($1.62), from 60 cents a year ago, farmers said as they marched past soccer club Real Madrid's Bernabeu Stadium carrying banners reading: "For the future of our countryside."
For Greeks, the cost of living has replaced unemployment as the top concern, unions said.
Food prices have risen and motorists pay 13 per cent more for fuel than a year ago and heating oil costs 38 per cent more.
Labour unions have called for rallies in Athens to protest against the conservative Government's failure to rein in the price increases.
"Business interests have staged a party while the Government is duping us with its ineffective measures to contain rising prices," president of Greece's largest labour confederation, Yannis Panagopoulos said.
But Germany and other European Union states said they would reject a fuel tax break plan sought by France to cushion rising oil prices.
A senior French official said President Nicolas Sarkozy would ask EU peers to back a reduction in value-added tax on petrol across the 27-nation bloc.
In Berlin, German Chancellor Angela Merkel told Parliament: "In our view, financial policy intervention, which is being discussed again and again ... should be avoided."
Swedish Prime Minister Fredrik Reinfeldt went further and told reporters that Europeans should work longer hours and pay less income tax to cope with rising prices.
"I am asking myself ... that we might ease up on income taxes to make work pay even further, so that people could react to the fact that an increase in the petrol price could be met by working some extra hours," Mr Reinfeldt said.
Mon, 30 June 2008
Queensland Roads Chaos over Fuel Prices
June 30 2008
In the Article below i simply stated what transport industry sources were planning,I actually got the month wrong and this is planned for the end of JULY 2008.
Wether you read this in Australia or any part of the world for that matter, please understand this is only my opinion, which is that i think whether you drive a car or own a whole fleet of trucks, ride a pushbike even, we all need to get behind this, because it affects every single one of us, from kids and those that use public transport like buses and trains, to every day people, everything including groceries, building materials, general freight, houshold goods, the list is never ending for what is being affected by the rising cost of fuel, and it affects us all. These cost are flowing back to us, the end user.
Those who may say it's extreme,i will agree with also, as i said though its all just my opinion, but what else and how else do we get our government and the oil companies (that continue to push up these prices for apparently no other reason that profit margins) to listen to the public ?
Use the media to our gain, because that is what they are doing to us, create a big enough event that will bring worldwide media attention, in other parts of the world far worse and things of a more extreme nature are being done in protest over fuel prices.
So...lets support this, if it happens join in the trucks drivers efforts, even if its in your car, on your bike, or on foot, the more people the better. Let Get the message across peacefully but clearly.
Truck drivers in Western Australia have threatened a "State of Chaos" within six weeks if they don't get relief at the petrol pump. The Transport Workers Union gave a taste of the disruption they can cause today by setting up a blockade around Western Australia's Parliament House.
Hundreds of trucks arrived at Parliament House early this morning. Police had to rush to set up barricades so parliamentarians would be able to get to work. The blockade caused chaos in a city that's not used to the kind of crawling traffic typical in Sydney or Melbourne. The Transport Workers Union secretary, Jim McGibbon, says there'll be worst to come if something's not done about the high price of petrol.
The same In Queensland with a planned blockade of all major roads is reported to be coming for the Brisbane Metro area and west to Toowoomba at the end of the month (July), sending a clear message to our PM about the crippling price of diesel soaring to as much as nearly $2.00 per litre in some parts of the state. Placing a clear emphasis on the importance of removing the "TAX on TAX" scheme currently in place and showing that the transport industry can clearly return the so called " Holding for Ransome" that oil companies worldwide are currently displaying.
This planned blockade of Queensland roads will be one on a scale to cripple all major roads in and out of Brisbane and Toowoomba for up to 48 hours according to industry sources.
As much as this planned blockade will send a clear message, it is yet to confirmed.
It would be a sight to see, though with continual pressure worldwide on relief for transport operators of all kinds, and the growing pressure on governments to remove exise and taxes, i think this kind of protest is almost A MUST to show our government the message of unity amongst the transport industry as a whole, from big operators to small and owner drivers !
Source : ABC news and Webmaster
Sun, 06 July 2008
Fuel Prices Increase 28.7%
Government Tries to Address Shock of Fuel Cost Increases with Cash Payments to the Nation's Poor.
(24/05/2008)
The much dreaded and long awaited increase in fuel prices was introduced at midnight on Friday, May 23, 2008, across Indonesia. Fuel prices increased an average of 28.7% in a bold step to reduce the crippling fuel subsidies paid from the Indonesian State budget, lately made even more burdensome by soaring world crude oil prices.
The Hikes in Prices
The Minister of Energy and Natural Resources, Purnomo Yusgiantoro, announced that the kerosene used for cooking in many low-income households would increase 25% from Rp. 2,000 (US$0.217) to Rp. 2,500 (US$0.271) per liter; premium gasoline would increase 33% from its price of Rp. 4,500 (US$0.489) to Rp. 6,000 (US$0.652) per liter; and diesel fuel increasing 27.9% from its price of Rp. 4,300 (US$0.467) to Rp. 5,500 (US$0.597) per liter.
Higher Prices May Await
The press conference formally announcing the price increase was attended by a large number of Cabinet Ministers making a public show of support for the controversial fuel price hikes. With the world price of crude oil now moving past the US$135 per barrel mark, none of the Ministers in attendance were prepared to offer any guarantees that prices won't be increased again if the price of world oil continues to soar to higher levels.
The Situation in Bali
On the eve of the fuel price increase, long lines began to form at gas stations across Bali as consumers attempted to "fill up their tanks" before the higher prices came into effect at midnight. A high police presence was obvious at many gas pumps in an effort to help maintain public order.
Bali Post also reports that 12 fuel hoarders were apprehended on the eve of the increase. The hoarders taken into custody were attempting to stockpile amounts ranging from as little as 150 liters to as much as 1,000 liters of fuel.
The manager of distribution for the State Oil Company Pertamina in Bali, Nusra J. Simanjuntak, told the press that fuel supplies in Bali remain adequate in the face of current daily consumption of 1,600 tons of premium, 400 tons of diesel and 475 tons of kerosene.
Cash Fuel Relief Payments
In an effort to ease the pain of the substantial increase in fuel costs and address widespread public discontent, the Government will introduce Cash Fuel Relief Payments (BLT) in ten cities starting from Saturday morning, May 17, 2008. The ten initial cities included in the program are Jakarta, Surabaya, Bandung, Makassar, Medan, Banjarmasin, Kupang, Yogyakarta, Palembang and Semarang. It's is not clear when the cash subsidy will be introduced in Bali where many local legislators and political leaders have called for Bali's Governor to refuse to participate in the BLT system. The relief program has been criticized in Bali by those concerned that the program will be riddled with corruption and other who feel that a "welfare state mentality" will be created among the Island's poorest citizens.
Those members of society determined to be eligible for assistance will receive a BLT card that qualifies them for a Rp. 100,000 (US$10.90) monthly cash subsidy to help offset higher food and general living costs.
The Department of Finance has allocated Rp. 4.1 trillion (US$445,7 million) to cover the cost of BLT program for its initial three months with a targeted 13.6 million recipients of an estimated total of 19.1 million people eligible for relief. The cash payments will be made to the public via the national Post Office System.
SOURCE: BALI NEWS
Thu, 17 July 2008
Virgin bows to fuel price pressure
June 09, 2008
VIRGIN Blue is set to whack the beleaguered tourism industry with a double whammy, flagging a new luggage tax for passengers and cutting flights to Queensland's Gold Coast.
Virgin Blue chief executive Brett Godfrey yesterday said skyrocketing fuel prices and greater security-screening processes had combined to severely increase check-in costs.
The budget carrier has also put Coolangatta services on the chopping block only days after the State Government delivered a $4 million rescue package when Qantas and Jetstar revealed flights between Cairns and Japan would be slashed.
"A bag costs us more to put through an aeroplane than a passenger," Mr Godfrey told Channel Nine.
"There's markets such as Coolangatta that has seen a 40-odd per cent increase (in) capacity this year, so even though that has been a profitable route for us in the past, maybe we have too much in there."
His comments came as Queensland Premier Anna Bligh stepped up her calls for national help as she labelled the issue one of "national significance" given the visitors Queensland attracts who travel elsewhere around Australia.
The State Government has been criticised over the past week after the Tourism Queensland budget was cut by $3 million before the rescue package emerged.
Federal Tourism Minister Martin Ferguson yesterday refused to comment on suggestions the Commonwealth was planning an assistance package for tourism operators.
But he said: "The problems facing the Queensland and Australian tourism sector are significant and require a serious, properly considered, strategic response rather than a knee-jerk reaction."
Ms Bligh insisted national help was needed given the "ripple effect" the state's tourism had across the nation.
"There has been discussions with the Federal Government (and) I expect we will hear something from Canberra in the not-too-distant future," Ms Bligh said.
"This is of national significance. This is not just an issue for Queensland."
Mr Ferguson said key stakeholders would meet with Tourism Australia and Queensland Tourism this week to work on a response.
Queensland Tourism Council chief executive Daniel Gschwind said tourism was a shared responsibility between states and the Commonwealth.
SOURCE: THE COURIER MAIL
Wed, 23 July 2008
Inflation surge dashes rate cut hopes
WED JULY 23
New figures show that inflation surged ahead in the June quarter to stand at 4.5 per cent for the year, well ahead of economists' forecasts.
The June quarter consumer price index (CPI) is up 1.5 per cent, sending the annual rise in the cost of living to 4.5 per cent.
The Bureau of Statistics says the quarterly rise is the highest for 17 years.
The Bureau says it is largest annual change since late 1995 - excluding the period associated with the introduction of the GST.
Among the factors driving the stronger-than-expected CPI result have been rises in the price of deposit and loan facilities, petrol, health services and housing.
The rise in the cost of living shows prices are increasing despite a slowdown in consumer spending.
The increase is well outside the Reserve Bank of Australia's (RBA) target band of 2 to 3 per cent.
Economists had earlier predicted increases of up to 1.3 per cent.
Federal Treasurer Wayne Swan has attributed the rise in inflation to rising fuel costs and the global credit crunch.
He also put some of the blame on the Howard government saying that reckless spending and a failure to invest meant the inflation rate was at a 16-year-high when Labor came into power.
He would not be drawn on whether the increase could lead to an interest rate rise.
Highest in 17 years
The drivers were financial services, fuel and clothing and footware. Food however was down by 0.1%.
The ABS says Perth, Brisbane and Darwin are the inflation capitals of Australia.
The Reserve Bank had been willing to tolerate a temporary inflation breakout, believing that rates increases to date, including independent rises by retail banks, had worked to reign in long-term inflation prospects.
But the figures keep the pressure on rates and analysts say that today's numbers give the Reserve Bank little scope to cut rates any time soon.
JP Morgan economist Helen Kevans predicts inflation will decline after peaking in the third quarter.
"So in terms of interest rates we believe the RBA will look through these elevated inflation readings going forward and leave interest rates on hold for the remainder of the year," she said.
SOURCE:ABC.NET
Sun, 03 August 2008
Ministers rally to support Brown
3 August 2008
Three cabinet ministers have rallied to the prime minister's defence, insisting he is the right man for the job.
Alistair Darling, Harriet Harman and John Denham declared their support for the beleaguered Gordon Brown in a Sunday tabloid newspaper.
It follows Foreign Secretary David Miliband's article discussing Labour's future without mentioning Mr Brown.
Meanwhile, former cabinet minister Stephen Byers has echoed Mr Miliband's call for Labour to start afresh.
Mr Darling, the Chancellor, deputy leader Ms Harman and Skills Secretary Mr Denham issued a public vote of confidence in the prime minister in the News of the World.
Ms Harman wrote that the party needs someone who has the ability to see Britain through the current economic downturn.
"When you face these kinds of global problems you need, as prime minister, someone who is respected on the international stage," she said.
"Someone whose hard work and ability over the last 11 years has made Britain better off.
"That's why I've no doubt that Gordon Brown is the right person for the job."
'Political mountain'
Mr Darling praised his "determination and strong purpose", while Mr Denham called for an end to the leadership speculation.
"I think Gordon Brown understands where the problems are coming from better than anybody else in British politics, and what we are going to do about them," wrote Mr Denham.
The BBC's political correspondent Iain Watson says while none of them attack Mr Miliband directly, their intervention is likely to be seen as a rebuff to the Foreign Secretary following his Guardian newspaper article.
He adds that is not clear whether declarations of public support highlight Mr Brown's strengths or are signs of his weakness.
'Afternoon stroll'
Speaking to the Observer, former transport minister Mr Byers said Labour had a "political mountain to climb in order to win the next election".
He added that the prime minister's "multitude of small policies are more suited to a Sunday afternoon stroll".
"We must come forward with bold and ambitious policies that begin to change the terms of political debate by putting Labour on the front foot and the Tories on the defensive," he said.
Speculation over Mr Brown's position has raged since Labour's recent by-election defeat in Glasgow East.
Even Sir Alan Sugar, entrepreneur and star of BBC1's The Apprentice, has spoken out about the prime minister's difficulties.
He advised Mr Brown to "kick out" members of the government failing to support his leadership and said current tough economic conditions were not his fault.
SOURCE: BBC NEWS
Sun, 17 August 2008
Why Warming Your Car in Winter is Burning a Hole in Your Pocket
17 August 2008
Winter is a difficult time for drivers. It does it's best to wreak havoc on your gas mileage. You may be playing the part of an unwitting ally to winter's effect on your fuel economy. Improperly warming your car up could be burning a hole in your pocket.
Drivers are in the habit of warming their vehicle up in winter temperatures. Drivers seem to be under the mistaken idea that they need to warm up their car for it to operate properly. By warming up they mean idling the car for a considerable amount of time before driving. This misnomer is costing you money.
Many drivers idle their car for 5 to 10 minutes in the winter to let their cars warm up. You should not let your car idle for more than 30 seconds. You need no more than 30 seconds of idling to circulate the engine oil before you can drive away on cold days
When you idle your car to warm it up you are burning gas but not going anywhere. When you let that happen you are getting zero miles per gallon. You may think that idling your car for few minutes or so is no big deal, think again.
To get an idea about how much fuel you are burning by letting your car idle for 5 to 10 minutes when you start it consider this. Assume you idle on the short side, only 5 minutes when you start your car in the morning. Most likely you idle for 5 minutes again, when you start your car again to drive home.
Therefore your car is idling for a minimum of 10 minutes a day. For illustrative purposes we consider winter to be four months long, or 120 days long. If a car is idling for 10 minutes a day for 120 days then it is idling for 1200 minutes during the winter period.
1200 Minutes is 20 hours. Think about it, warming your car for only 5 minutes per start amounts to your car idling and burning gas going nowhere, for 20 hours. Can you visualize your car sitting and idling for 20 hours? Of course not. Then why warm it up for the equivalent of 20 hours of burning gas when it is completely unnecessary?
Warm your car up by driving it. To operate efficiently your car needs to warm up other parts in addition to the engine. Tires, transmission, wheel bearings and other moving parts also need to warm up. Your car's catalytic converter doesn't function at its peak until it reaches between 400C and 800C. The only way these other parts warm up is by driving. The reality is, to warm your car up completely you have to drive it anyway.
To save gas and increase gas mileage in the winter one of the simplest things you can do is warm your car by driving it, not by idling. Not only will it save you gas and money but you will also be doing something positive for the environment. That warm car will stop burning a hole in your pocket.
Source:www.fuelcostangel.com/newsarticles
Sun, 24 August 2008
Aussie journalist abducted in Somalia named
Sun Aug 24 2008
A US-based blog has revealed the identities of the Australian journalist abducted by unidentified armed men in Somalia.
Authors of the Jawa Report claim Brisbane-based Nigel Brennan and Canadian Amanda Lindhout were the duo taken near Mogadishu.
"They were taken under the threat of firearms. It was an abduction," a security official at a hotel south of the capital told AFP, speaking on condition of anonymity.
A police officer confirmed the abduction on the road between Mogadishu and Afgoye, about 25km to the west.
The two journalists were to visit several refugee camps at Afgoye, the sources added.
"It's (clear) that they were kidnapped because their schedule was to come back to the hotel before 12 in the afternoon and we don't have their whereabouts," said Abdifatah Ajos Sanura, a director at the Shamo hotel where the pair stayed.
Journalists and humanitarian workers are frequently abducted in Somalia, a country torn apart by civil war since 1991. Most kidnappings include ransom demands.
The sister of the interpreter accompanying the two reporters also expressed anxiety about their whereabouts.
"They left this morning and all their phone numbers are switched off. We are not sure, but it seems that they were kidnapped," Sadia Mohamed said on Saturday.
The abduction comes amid ongoing unrest in Somalia, where Ethiopian troops ousted the Islamist militia which had controlled large parts of the Horn of Africa country in 2006.
The Islamists have since reverted to guerrilla warfare and have been targeting Somali government forces, Ethiopian troops and African Union peacekeepers almost daily.
The clashes have displaced hundreds of thousands of people and killed more than 6,000 people last year alone.
Islamists regained control of the southern Kismayo port on Friday, following three days of battles with militia groups that left more than 40 people dead.
SOURCE: NINEMSN
Tue, 02 September 2008
Famous bar defies Katrina, Gustav
September 02, 2008
JOHNNY White's, the New Orleans bar that famously stayed open during Hurricane Katrina, was today full of customers who chose to stay for a stiff drink instead of fleeing Hurricane Gustav.
"We never close," proudly reads a sign inside the bar.
The bar is on a corner of Bourbon Street, in the city's tourist district. It is small, with several bar stools but no tables.
Johnny White's prepared for Hurricane Gustav - which touched just west of New Orleans early today as a Category Two storm - by hammering planks of wood over its doors. But one door was left open wide enough so that thirsty locals could find refuge.
When Katrina struck in 2005 Johnny White's remained open - despite the widespread flooding, the looting, the general chaos, and even despite having no running water or electricity.
Fast forward to 2008: bartender Stephanie Blake said that she served Sunday drinks to 2000 people yesterday as Gustav barreled towards New Orleans and Mayor Ray Nagin ordered a complete evacuation.
"All the people were in good moods and positive," Ms Blake said.
"It's been like Mardi Gras," she said, referring to the famous city carnival. "I'm scared to see how much I rang up today."
Kelly, a long-time customer, spent the night at Johnny White's when Katrina struck.
"Here you never get flooded," said Kelly. "This is the highest area in the city - that's why the old city was built here 300 years ago.
"We stayed here in Katrina, it was fun. Then we had to leave because of the problems and tragedy everywhere," she said.
On one bar wall there is a mural of boxing great Muhammed Ali. Pictures of fake dollars illustrate the background of the bar. Pictures of customers and friends are attached to the roof.
SOURCE: NEWS>COM
Tue, 09 September 2008
Aussie pensioners asset rich, but income poor: study
Aug 13, 2008
The Federal Government has this week come under increased pressure to raise the aged pension rate, which is amongst the lowest in the OECD.
Now new research shows that while many elderly Australians are income poor, they are asset rich.
A University of New South Wales study has found that Australian pensioners are more likely to be home owners than their OECD counterparts.
And the author of the report is recommending that they tap into that wealth by selling their children's inheritance.
Frances, 67, lives in a relatively large Queenslander in inner-city Brisbane. She retired two years ago but found it difficult to survive on the pension, so she has gone back to teaching two days a week.
"I love the house because it is terribly conveniently placed and it has enough room so that when my children come home and grandchildren, there is room for them," she said.
"However, there is a lot of upkeep and overheads. It is an old Queenslander so it does require the replacing of the deck and painting and that kind of thing."
Frances is thinking of retiring for good soon and that means selling her house to secure more income, but she says it will be hard to part with the old Queenslander.
"In about 12 months' time I think it might be time that I have to sell my house to get some money," she said.
"I think about it all the time but everytime I think about putting it on the market, I can't do it.
"Emotionally I am just very attached. There are very happy memories in this house."
Her situation reflects that of most Australians facing retirement, according to a new study.
Dr Bruce Bradbury from the Social Policy Research Centre at the University New South Wales found that more elderly Australians owned their own homes compared to that of their counterparts in other wealthy nations.
But with pensions well below the OECD average, Dr Bradbury says many Australians are asset rich but income poor.
"In the average rich country, if you like, when people retire their income falls to a level of about two-thirds of their previous income," he said.
"In Australia on the other hand, the drop is down to about 50 per cent. The flip side however is that the Australian elderly have much higher rates of home ownership than the elderly in most other countries.
"We have around 85 per cent of elderly owning their own home compared to rates under 75 per cent or down in the sixties for countries like the UK."
Selling the inheritance
Dr Bradbury says most retirees live in houses that are much larger than they need or can afford to maintain.
He says people should start thinking about how to best take advantage of this wealth that is locked up in bricks and mortar and that, he says, means selling the children's inheritance.
"Making sure that reverse mortgages work and they are not too expensive. Covering the risks associated with them, for example, the risk of living too long and running out of money and making it easier to trade down your house," he said.
"Possibly reducing stamp duty for people in that, older people for example."
But National Seniors Australia CEO Michael O'Neill says for many elderly people, it is not an easy decision to sell the family home.
He warns reverse mortgages should be approached with caution, particularly if there is a downturn in the property market that could see house prices fall.
"You've had people enter into a reverse mortgage or some kind of mortgage based on a value now and with no repayments, reverse mortgages are about no repayments being made until the property is sold or it is taken out of the estate at the point of death," he said.
"It may well expose people who are involved in reverse mortgage for a fair period of time to having no interest left in their property when they most need it."
Mr O'Neill says this is not an option for those pensioners who are renting.
He is calling on the Federal Government to increase the single pension rate by at least $30 a week as part of the review into the aged pension announced by the Government this week.
"The situation for older Australians has deteriorated since the last budget and the report that the Government handed down, the Pensions Review Discussion Paper, only reinforces the fact that particularly the single aged pension is inadequate and that older Australians reliant on the single aged pension are doing it very, very tough," he said.
For 67-year-old widower Frances, increasing the single pension rate is the best solution.
"I think the Government needs to increase the pension. I had some superannuation but not a lot, because I had to work part-time because my children were small when I was widowed," she said.
"There are a lot of people like me, at my age, who are in that situation where they weren't able to establish a good superannuation pension.
"People who are on a good superannuation pension are on clover and good luck to them, because they have worked full-time for a long time, but there are a lot of people who weren't able to do that and we're not on clover. "
SOURCE: ABC NEWS
Tue, 23 September 2008
Mud rains on outback as red dust storms hit
September 23, 2008
SEVERE storms have ripped through parts of the country, depositing red mud everywhere, with high winds causing mayhem.
Alice Springs was hit yesterday with winds up to 110km/h tearing uprooting trees and tearing down roofs and powerlines.
Heavy rain also caused flash flooding, and a widespread power failure blacked out the town's traffic lights and cut electricity to most homes.
The storm - which was described by some residents as being "like a hurricane" - hit the town at 1.20pm.
Dust was swept into the air and turned the sky red. Cars were smashed by falling trees, roofs were destroyed and police directed traffic around the debris.
Motorists were warned to stay off the roads unless trips were essential.The weather bureau said 18mm of rain was recorded at Alice Plaza.
Businesses were forced to close their doors and workers joined in the clean-up around town.
Power and Water's area manager Alan Whyte said teams would work through the night to restore power to affected areas.
"The majority of homes in Alice Springs were without power after the storm,'' he said.
"There were major problems on the North Stuart Highway, with some big trees down.''
NT Emergency Service volunteers from Darwin also arrived in town this morning to help with the clean-up.
Winds of up to 120km/h also hit outback New South Wales, as huge dust storms gave way to heavy rain and caused widespread damage.
The storms swept across the west for more five hours yesterday, cutting a path of destruction, tearing roofs off buildings and felling trees.
In Broken Hill, residents could not see 5m in front of them as red haze clouded the town. A car was crushed by a tree and a pub lost its roof.
At Hay, a shed rolled down the main street while farmers had to muster stock to safety.
"It was just horrific, one of the worst and longest we've seen, it was so sudden we never knew what hit us," said Caroline Booth, who runs a sheep property at Booligal near Hay.
"It was not the typical rolling dust storm we usually get out here, the wind was picking up masses of dirt.
The rain was hardly enough to settle the dust.
"It wasn't raining rain drops it was raining mud drops," Bureau of Meteorology forecaster Michael Logan said.
"The light rain was not saturating, it was picking up the dust particles in the air and raining mud."
SOURCE: Northern Territory News, Daily Telegraph
Thu, 16 October 2008
Pollies to be kept off ABC, SBS boards
October 16, 2008
THE Federal Government will ban former politicians and senior government staffers from the ABC and SBS boards in a bid to depoliticise the public broadcasters.
Dispensing with former prime minister John Howard's "Christmas card list'' approach to board appointments, Communications Minister Stephen Conroy said today a new process would restore independence to the boards.
The position of a staff-elected director to the ABC board would be reinstated, Senator Conroy said.
The Government is calling for applications to fill four vacancies on the two boards with applications assessed by an nomination panel set up at "arms length'' from the minister.
Draft laws would be introduced soon requiring all appointments to be made on merit, Senator Conroy said.
"Further ensuring independence, former politicians and senior political staffers are ineligible for appointment to the boards,'' he said in Canberra.
On appointing the ABC chair, Senator Conroy said the Prime Minister would confer with the federal Opposition leader.
Senator Conroy also announced a public consultation on the public broadcasters' future and released a discussion paper canvassing key issues.
SOURCE : NEWS>COM
Wed, 29 October 2008
Insurers, carmakers queue up for US bailout
October 27, 2008
THE US Treasury Department is eyeing equity stakes in insurance companies, a sign of how the Government's $US700 billion ($1.13 billion) rescue program could turn into a piggy bank for a range of beleaguered industries.
The availability of US government cash in the middle of a global credit squeeze is drawing requests from insurance firms, carmakers, state governments and transit agencies. While Treasury intended for the program to apply broadly, the growing requests could put a strain on the $US700 billion, a sum that only last month stunned politicians.
MetLife and Prudential, two of the US's largest publicly traded life insurers, and New York Life Insurance, one of the highest rated insurers in the US, are interested in exploring a sale of equity stakes to the Government.
Broad participation in the rescue program would put more power in the hands of government to reshape the finance industry. On Friday, PNC Financial Services Group said Treasury would buy $US7.7 billion of preferred stock and warrants. The cash injection would help the bank purchase struggling National City.
In September, the Government extended an $US85 billion rescue loan to giant insurer American International Group in exchange for an 80 per cent stake.
Insurers are critical to market stability. Signs of eroding confidence at life insurers could further dent fragile business and consumer confidence. Insurers are among the biggest holders of the nation's corporate debt, with $US1.3 trillion on their books. They are long-term investors, holding the securities for years, even decades.
As they have sought to shore up their own balance sheets in recent weeks, insurance companies, like banks, have retreated from this role as lender, instead hoarding cash, according to Robert Riegel, a managing director at ratings firm Moody's Investors Service, which exacerbates the credit crunch.
Most insurance companies are financially sound but have seen their long-term investments and stock prices fall in value. Some have holdings of riskier alt-A and sub-prime-mortgage backed securities. Insurers have suffered losses in bond and preferred-stock holdings from the collapse of companies including Lehman Brothers. Insurers also have been hit with billions of dollars in unrealised losses as corporate bonds of all stripes suffered big declines. Low interest rates have dampened interest income and a prolonged economic slump could dent the variable-annuity business and even hurt sales of core life-insurance policies.
Insurers would normally tap capital markets to raise money. But many are loath to attempt selling common stock because their share prices have been so battered. That is one reason many insurers have been pushing the expansion of Treasury's equity-stake program to raise capital.
Treasury had already envisioned insurance companies using one element of its rescue program: selling bad assets, such as mortgage-backed securities, to the Government. But Treasury officials are considering whether to buy equity stakes in certain firms.
Under the terms of Treasury's plan, eligible insurers must be operated by either a financial institution holding company or a savings-and-loan holding company. The holding companies must also be regulated by a federal agency. The investment funds would come from Treasury's recently announced plan to invest $US250 billion in US banks. Treasury has already committed $US125 billion to nine large banks. More than 20 additional banks are expected to receive equity infusions in coming days.
Treasury Secretary Henry Paulson asked Congress for wide discretion in the program. That is prompting requests from myriad industries. Some want capital injections, others want to sell troubled assets, such as bad loans, to the Government.
The Financial Services Roundtable, a Washington trade group, sent a letter last week to Treasury asking for expansion of the Government's equity injection program to include broker-dealers, insurance companies, auto makers and foreign-controlled firms.
Auto makers are looking for a lifeline. Last week members of Michigan's congressional delegation sent a letter to Mr Paulson and Fed Reserve chairman Ben Bernanke, urging the Bush administration to allow auto companies to take part in the program, a move many in Detroit hope would smooth the way for a merger of General Motors with Chrysler.
SOURCE: WSJ
Tue, 18 November 2008
Rudd announces storm relief payment
November 18, 2008
Prime Minister Kevin Rudd has announced cash payments for people left homeless by Brisbane's violent storm, and promised more army help.
A severe storm hit Brisbane on Sunday, tearing off roofs, bringing down trees and powerlines, and leaving many without liveable homes.
Mr Rudd has likened the damage to a war zone after touring the devastation in the northern suburb The Gap with Queensland Premier Anna Bligh and Brisbane Lord Mayor Campbell Newman.
"This is a natural disaster big time," he told reporters on Tuesday.
He said 350 troops were being deployed to help in the clean up, but more would be sent if needed.
He also announced Centrelink would make payments of $1,000 per adult, and $400 per dependent child where the primary home was unliveable.
This was on top of the natural disaster relief arrangements activated on Monday.
Families Minister Jenny Macklin would announce further details on Tuesday, he said.
"This is just the beginning of what's going to be a very long-term clean up," he said.
"I think the important thing for us is to keep faith with the people who have been horribly affected by this, with only a few minutes notice in many cases."
More than 8,000 homes were still without power on Tuesday, and 800 to 900 calls for assistance were still to be answered.
More SES volunteers were expected later on Tuesday.
Ms Bligh said it may be several days before the full extent of the devastation is known.
Mr Rudd diverted his flight from Washington DC, where he had attended the G20 meeting on the weekend, to inspect the storm damage.
SOURCE : AAP
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