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Transcript

BONUS EP: The Federal Budget · She's On The Money

0:00
Speaker 1: She's on the Money. She's on the Money. Hello, and
0:14
Speaker 1: welcome to She's on the Money, the podcast for millennials
0:17
Speaker 1: who want financial freedom. And you're probably very very surprised
0:21
Speaker 1: that this little episode has popped up in your feet today.
0:23
Speaker 1: It is a budget Extravaganza exclusive special bonus Hippity hopperty
0:30
Speaker 1: Epity episode.
0:32
Speaker 2: Yeah, episode. I love that. I love that. It's also Wednesday,
0:36
Speaker 2: the twelfth of May, which for those of you who
0:39
Speaker 2: are is excited about the budget. To me, it's like
0:42
Speaker 2: New Year's Day but for the budget.
0:43
Speaker 1: Yeah, so it's party time, right, so you know that
0:45
Speaker 1: the second Wednesday of every May is a party. You're
0:49
Speaker 1: hungover because you've been celebrating the budget. And no doubt
0:52
Speaker 1: everybody that's listening to this has just woken up and
0:54
Speaker 1: they're like, oh my god, what did I do last night?
0:56
Speaker 2: That's right, the budget.
0:57
Speaker 1: I learned about finance.
0:59
Speaker 2: Not person has said that, not even I have said that, Tony.
1:03
Speaker 2: But that's okay. I'm glad we're excited about it, because,
1:05
Speaker 2: to be honest, Tony, what happened last night?
1:08
Speaker 1: The budget? Yeah?
1:09
Speaker 2: But like I took the team out for dinner and
1:10
Speaker 2: we watched the budget on a laptop at Pancake Parlor. Yeah,
1:14
Speaker 2: because we're really classy. And for those of you who
1:15
Speaker 2: don't know and haven't listened to that Friday Drinks episode, Tony,
1:18
Speaker 2: why's the Pancake Parlor special to us?
1:21
Speaker 1: Because I, for a little while voiced their campaigns. I
1:25
Speaker 1: was the official VEO.
1:27
Speaker 2: She do the singing of the Pancake Parlor ads. Anyway,
1:30
Speaker 2: you guys are not here to hear about Tony's escapades
1:33
Speaker 2: being the Pancake Parlor voice. What you are here to
1:36
Speaker 2: listen to is about how last night Treasurer Josh Friedenberg
1:40
Speaker 2: told Australians how the Morrison government plans to spend taxpayers
1:43
Speaker 2: money for the next four years. And while that doesn't
1:47
Speaker 2: sound super sexy, it does mean a lot for us.
1:50
Speaker 2: And to be honest, it is something that we should
1:52
Speaker 2: as young people be interested in. And I think that
1:55
Speaker 2: it's very hard and Tony, you and I were having
1:57
Speaker 2: this conversation literally before we hit Recard about why it's
2:01
Speaker 2: important because I watched the budget and when you and
2:04
Speaker 2: I talk about it, and you know the first Home
2:06
Speaker 2: super Savior scheme. Ye, the next question I always have is, well,
2:10
Speaker 2: what does that mean? Great? It's gone from thirty thousand
2:12
Speaker 2: dollars to fifty thousand dollars. What does that mean, how
2:14
Speaker 2: does that work.
2:15
Speaker 1: And how does that fit into my life? What does
2:17
Speaker 1: that change for me?
2:18
Speaker 2: Yeah? And what does that change for our community? And
2:21
Speaker 2: how can we help them fully understand this? And so
2:23
Speaker 2: that's what this episode is about. We're not going to
2:25
Speaker 2: touch on absolutely everything that happened in the budget because
2:28
Speaker 2: that would be incredibly dry, but we've pulled some main
2:31
Speaker 2: points out that we really think are going to benefit
2:34
Speaker 2: our community and we want to contextualize them and explain
2:37
Speaker 2: them to you so that you know, one we get it,
2:39
Speaker 2: but two we can just be like, yeah, tonight over dinner,
2:42
Speaker 2: we're going to be the most intellectual people, because you'd
2:44
Speaker 2: be like, so in the budget, do you watch it
2:46
Speaker 2: last night? And they'll be like no, You'll be like, yeah, okay,
2:48
Speaker 2: well I'll just.
2:48
Speaker 1: Love for bottle on this, So are you ready? I
2:51
Speaker 1: think it's also about including people into a side of
2:56
Speaker 1: the government and socially into something that they might not
2:59
Speaker 1: ever think that they fit into or that they were
3:02
Speaker 1: educated enough to actually chat about. Because I know personally,
3:05
Speaker 1: for me, I mean, I'm twenty seven, it wasn't until
3:08
Speaker 1: a few years ago and I started working in the arts,
3:10
Speaker 1: that I was like, actually, I do need to know
3:12
Speaker 1: what's going on in the budget because that's going to
3:15
Speaker 1: affect whether I can work, and you know how much
3:17
Speaker 1: money there's going to be for the arts, and you
3:19
Speaker 1: know different types of industries that don't automatically get lots
3:23
Speaker 1: of funding. So I think it's really important as well
3:25
Speaker 1: for people listening that if you don't know much about
3:29
Speaker 1: the budget, that's okay, but that's why we're here. We
3:31
Speaker 1: don't want anyone to feel stupid. We don't want anybody
3:34
Speaker 1: to feel left out. This is just one of those
3:36
Speaker 1: things that as you get a bit older, it's important
3:38
Speaker 1: to make sure that you were educated and you know
3:40
Speaker 1: how things can affect you exactly.
3:42
Speaker 2: And that's what you're going to get here, right, You're
3:44
Speaker 2: going to get what the she's on the money team
3:46
Speaker 2: thinks is important for you to understand out of the budget.
3:48
Speaker 2: That does not mean it's the entire budget, and you know,
3:51
Speaker 2: it's actually up to you to do a little bit
3:53
Speaker 2: more research and look into if you've got a specific
3:55
Speaker 2: area that you want to understand more deeply, google it.
3:59
Speaker 2: To be honest, there are so many great news websites
4:01
Speaker 2: out there. One of my favorite ones is actually the
4:03
Speaker 2: Daily oz on Instagram, and they've done an entire series
4:08
Speaker 2: covering all the topics that happened in the budget with
4:10
Speaker 2: a here's why it's important, this is what's happened. And
4:13
Speaker 2: I really liked it, and they literally posted it last
4:16
Speaker 2: night as the budget was happening, and I was like, Wow,
4:18
Speaker 2: these guys are wizards with content, So definitely go check
4:21
Speaker 2: them out if you want some more information. But Tony,
4:23
Speaker 2: why don't we get into this and maybe just bookend
4:25
Speaker 2: it with let's talk about topic A, C, and D,
4:28
Speaker 2: and we'll kind of have a heading and then maybe
4:30
Speaker 2: a paragraph below where we talk. Is that Is that
4:32
Speaker 2: going to work? I think? So? I think that'll work
4:34
Speaker 2: all right.
4:35
Speaker 1: So I feel like we should have a little bit
4:36
Speaker 1: of a chit chat before we get to the pist resistance,
4:39
Speaker 1: the thing that's on everybody's lips.
4:41
Speaker 2: What is that? Because I'm confused because I thought the
4:43
Speaker 2: entire budget was ever in everybody's lips.
4:45
Speaker 1: Well, okay, I'm sorry, but.
4:47
Speaker 2: I don't spoil it. Don't spoil it. We're waiting.
4:49
Speaker 1: We're waiting the grand finale. But so we've obviously both
4:53
Speaker 1: watched it. We know what's going on. Yeah, And we
4:56
Speaker 1: thought we'd go through a few little bits and pieces
4:59
Speaker 1: that kind of stuck that we thought would help our community,
5:02
Speaker 1: that they might see.
5:03
Speaker 2: We should genuinely understand because they are going to have
5:06
Speaker 2: an impact on our lives and on our communities.
5:09
Speaker 1: So first up, mental health, Yes, massive, huge, So there's
5:15
Speaker 1: going to be a new four hundred and eighty seven
5:16
Speaker 1: million dollar network of forty adult mental health centers.
5:20
Speaker 2: Which is massive. And there's an additional two hundred and
5:23
Speaker 2: seventy eight million in funding for Headspace, which is so good.
5:28
Speaker 2: As everybody knows they are a great cause, and I
5:30
Speaker 2: think that you know, them getting so much more funding
5:33
Speaker 2: is just going to be so impactful for us and
5:36
Speaker 2: excitingly enough. And I don't know if I should mention
5:38
Speaker 2: here that there could be like a bit of a
5:40
Speaker 2: trigger warning. We are going to be talking about suicide
5:44
Speaker 2: and eating disorders just in this. I don't want anybody
5:47
Speaker 2: to be, you know, blindsided by that. But when we're
5:50
Speaker 2: talking about mental health, I would really like to have
5:52
Speaker 2: the ability and the flexibility to be really frank about
5:55
Speaker 2: these things because they impact our community. They're really important,
5:58
Speaker 2: and I care a lot about them, but there's a
6:01
Speaker 2: new National Suicide Prevention Office which is so special and
6:05
Speaker 2: just steps in the right direction. Tony.
6:07
Speaker 1: Yeah. And I think it's also a huge, like you
6:10
Speaker 1: just said, step in the right direction, but that these
6:12
Speaker 1: things are actually being considered massive bullet points in terms
6:16
Speaker 1: of the budget, because many years ago, not that long
6:19
Speaker 1: ago actually, that it would just be considered part of
6:22
Speaker 1: the health part of the budget, whereas now it's its own.
6:25
Speaker 2: But it's so much bigger. And as a financial advisor,
6:27
Speaker 2: I see this in my office every single day, and
6:31
Speaker 2: you know, maybe historically it wasn't the case. So when
6:34
Speaker 2: it comes to insurance, and I'm always talking about the
6:36
Speaker 2: inputs of having income protection and you know, TPD and
6:39
Speaker 2: life insurance and trauma insurance and all of these things.
6:43
Speaker 2: I've done a pod on it, so if you don't
6:44
Speaker 2: know what I'm talking about, definitely go back and listen
6:46
Speaker 2: to that. But mental health comes up nine times out
6:49
Speaker 2: of ten with my clients because we are now seeking
6:53
Speaker 2: information and we're seeking help far more often than we
6:56
Speaker 2: were historically, and it's actually promoted that we do that.
6:59
Speaker 2: So it's not to say that these mental health issues
7:01
Speaker 2: didn't exist historically because they unequivocally did. But the thing
7:06
Speaker 2: is we're now talking about them, we're now seeking more
7:08
Speaker 2: help for them, and we're a better society because of it.
7:11
Speaker 2: But because more people are seeking more help, we need
7:13
Speaker 2: more funding. So it is so nice to hear that
7:16
Speaker 2: the federal government has committed more than two billion dollars
7:19
Speaker 2: in additional funding to prevent and treat mental illness, which
7:22
Speaker 2: I think is so special.
7:24
Speaker 1: Do you think that they've seen a real uptick in
7:27
Speaker 1: I know that through COVID there was a big increase
7:31
Speaker 1: in people accessing free mental health services. Do you think
7:35
Speaker 1: that that probably inspired this change in attitude.
7:39
Speaker 2: I absolutely think that that's what has happened, because it's
7:42
Speaker 2: something that once you get help and once you start,
7:46
Speaker 2: you know, seeing someone, it can be a massive step
7:48
Speaker 2: to take. I wish I did that earlier. And so
7:50
Speaker 2: many people reached out during COVID because they were in
7:53
Speaker 2: crisis mode, and a lot of people don't seek mental
7:57
Speaker 2: health support until they are in a crisis, which is,
8:00
Speaker 2: you know, great that we have that resource, but we
8:02
Speaker 2: should really be seeking mental health support before we reach
8:05
Speaker 2: crisis stage. And so knowing that this is going towards
8:09
Speaker 2: preventing mental health as well as looking after us is
8:13
Speaker 2: just so helpful. I think it's so important to discuss
8:15
Speaker 2: the impact that mental health has on us, has on
8:18
Speaker 2: our ability to work, to produce money, to look after
8:20
Speaker 2: our families, to interact with friends, to literally live our lives,
8:24
Speaker 2: like if you are not mentally well, like nothing else
8:27
Speaker 2: in your life is going to work. So I think
8:29
Speaker 2: it's really really special that they're doing this. And to
8:32
Speaker 2: dive a little bit deeper into that, that means that
8:34
Speaker 2: a half a billion dollars so much money has been
8:37
Speaker 2: set aside for new adult mental health centers, which we're
8:40
Speaker 2: in dire need of, which is great. The federal government
8:43
Speaker 2: really hopes that these centers, known as the head to
8:46
Speaker 2: Health Network, is going to help adults with moderate to
8:49
Speaker 2: severe mental illness, and we do need more support in
8:52
Speaker 2: that space. And then they've also set aside two hundred
8:55
Speaker 2: and seventy eight million dollars in funding for Headspace, and
8:59
Speaker 2: that's a part of the push to really improve services
9:01
Speaker 2: for young people with mental illness, which includes twenty six
9:05
Speaker 2: point nine million dollars for supporting people with eating disorders,
9:08
Speaker 2: which we don't speak enough about and so many people
9:12
Speaker 2: experience and it's not something I've ever spoken about before,
9:14
Speaker 2: but I've been through that, and I know what that
9:17
Speaker 2: is like on an incredibly deeply level. It is something
9:20
Speaker 2: that I struggled with four years, and to just know
9:23
Speaker 2: that that is now being put as a priority is
9:26
Speaker 2: just so important because when I was going through it,
9:29
Speaker 2: I was in my teenage years, and the support I
9:31
Speaker 2: genuinely don't think was there for my family. I was
9:34
Speaker 2: kind of like, you know, and not to talk too
9:36
Speaker 2: much about my own mental health, although I'm really happy too,
9:39
Speaker 2: it's just not the point of this podcast. When I
9:43
Speaker 2: was going through this, I did need to be hospitalized.
9:45
Speaker 2: It was very serious, but I was in limbo. I
9:48
Speaker 2: wasn't an adult, but I also wasn't a child, so
9:51
Speaker 2: I ended up in a different facility that wasn't actually
9:54
Speaker 2: catered towards, you know, the teenager that I was. I
9:57
Speaker 2: ended up in a child facility. I actually ended up
10:00
Speaker 2: on a pediatric ward, and you know, I actually needed
10:03
Speaker 2: to be surrounded by you know, people my age going
10:05
Speaker 2: through something similar, when in actual fact, I was surrounded
10:08
Speaker 2: by young kids, and you know, like, it's not the worst.
10:11
Speaker 2: I'm so grateful that I ended up getting the help
10:13
Speaker 2: that I needed and the support that my family was
10:15
Speaker 2: afforded at that time. But knowing that there's more support
10:18
Speaker 2: going into eating disorders for me personally is really special.
10:22
Speaker 1: I think as well, Like you said, you were shoved
10:24
Speaker 1: into a ward that wasn't really specifically for what you needed.
10:27
Speaker 1: You're talking like not having nurses that are qualified in
10:31
Speaker 1: what you need and also not prepared to deal with
10:34
Speaker 1: what you're going through. You know, So not only is
10:37
Speaker 1: that taking a toll on your mental health because you're
10:39
Speaker 1: not being supported and your family and friends, but also
10:42
Speaker 1: the people that are working in these situations helping people
10:45
Speaker 1: through things that they haven't been trained to deal with.
10:49
Speaker 1: That is incredibly difficult. And I think that you've hit
10:51
Speaker 1: the nail on the head because the fact that we're
10:54
Speaker 1: putting money into specialized parts of mental health rather than
10:58
Speaker 1: being like, oh, one size fits all kind of health
11:01
Speaker 1: and respect case it's not the case, Like mental health
11:03
Speaker 1: is so much more than just mental health, and to
11:06
Speaker 1: know it's being broken down is really great.
11:08
Speaker 2: And I want people to just be you know, it
11:10
Speaker 2: sounds entitled from my perspective. I just want people to
11:13
Speaker 2: be grateful for the opportunity that we have to live
11:15
Speaker 2: in such a beautiful country that affords us so many
11:18
Speaker 2: luxuries and securities and can you imagine other countries around
11:22
Speaker 2: the world putting so much money into mental health? Like
11:25
Speaker 2: we are so special.
11:27
Speaker 1: Yeah, we're very lucky.
11:29
Speaker 2: The additional thing on the mental health thing is also
11:31
Speaker 2: the suicide prevention, which is massive, Tony. They are allocating
11:35
Speaker 2: two hundred and ninety eight million dollars for suicide prevention
11:40
Speaker 2: and the main new initiative there is one hundred and
11:42
Speaker 2: fifty eight points six million dollars for aftercare plans, which
11:46
Speaker 2: hopes to ensure every person discharged from hospital following a
11:50
Speaker 2: suicide attempt is actually properly cared for in the months
11:53
Speaker 2: after they attempt suicide. How great is that?
11:56
Speaker 1: I think reading these things just doesn't seem like something
11:58
Speaker 1: that would ever be prioritized by our government. And it's
12:01
Speaker 1: just really really exciting that these things are being taken
12:04
Speaker 1: into consideration.
12:05
Speaker 2: Yeah, so let's stop talking about mental health, and you know,
12:09
Speaker 2: it's been really special. But what is the next interesting
12:11
Speaker 2: topic that we should touch on in this budget rap chat?
12:14
Speaker 1: Okay, Well, like you said, any change is good change,
12:16
Speaker 1: and now I want to chat about the environment.
12:19
Speaker 2: Kind of like from little things that big things grow
12:21
Speaker 2: and it's like about like trees and stuff. So that
12:23
Speaker 2: works for the environment.
12:25
Speaker 1: Right, Oh my god, I'm better at this job.
12:26
Speaker 2: I thought, Yeah, welcome, But the environment's really important to us,
12:30
Speaker 2: and it's important to the She's on the money team
12:32
Speaker 2: and you know, arguably our community, so it's really important
12:35
Speaker 2: for us to cover this topic, Tony. What are the headliners?
12:38
Speaker 1: So I think that people were shocked that there wasn't
12:41
Speaker 1: more going into the environment than there is, but still
12:44
Speaker 1: small change, good change. The federal government is planning on
12:48
Speaker 1: putting one point two billion dollars towards low emissions technology
12:52
Speaker 1: and a new National Recovery Resilience Agency to improve Australia's
12:56
Speaker 1: response to natural disasters, which obviously is a reflection after
13:00
Speaker 1: the fires and flooding we've experienced over the last couple
13:02
Speaker 1: of years. So that's really really exciting that the like
13:06
Speaker 1: we were talking about with the mental health stuff, prevention
13:08
Speaker 1: is better than cure, so that they can talk about,
13:11
Speaker 1: you know, in advance, like all right, if we do
13:13
Speaker 1: have another national natural disaster, that there's actually things in
13:17
Speaker 1: place beforehand that can help people like farmers or you know,
13:21
Speaker 1: all of those things. And I'm sure that that includes
13:23
Speaker 1: aspects of mental health being put into that as well.
13:26
Speaker 2: Yeah. Absolutely, so. I think that this one was an
13:28
Speaker 2: interesting one because when we talk about the overarching topic
13:32
Speaker 2: of environment, I was actually really disappointed with the outcomes
13:35
Speaker 2: because there was not that much for renewables, and I
13:38
Speaker 2: felt like that was a bit of a kick in
13:40
Speaker 2: the guts, given we're trying to move towards being more sustainable.
13:43
Speaker 2: But I can kind of see how this has eventuated.
13:46
Speaker 2: Right again, Let's remember it's a budget and we had
13:49
Speaker 2: a set amount of money to allocate. Given we've just
13:52
Speaker 2: gone through COVID nineteen and gone through the bush fires,
13:54
Speaker 2: which so many people tend to forget happened because COVID
13:58
Speaker 2: was same straight away and it came straight away. I
14:01
Speaker 2: think given we've been through all of that, it kind
14:03
Speaker 2: of makes sense for the government to have allocated it
14:06
Speaker 2: to the immediate needs of our people having suffered bushfire
14:09
Speaker 2: disaster and making sure that you know, we're sustainable moving forward,
14:12
Speaker 2: and that you know we are okay coming out of COVID.
14:15
Speaker 2: So it's a bit disappointing to have seen that, you know,
14:17
Speaker 2: there's not much for renewables because there was actually no
14:20
Speaker 2: new funding for renewables in the federal budget except for
14:23
Speaker 2: one thing, which was thirty million dollars for a battery
14:25
Speaker 2: and microgrid project which is going on in the Northern Territory,
14:28
Speaker 2: which is great, fantastic. I'm glad that's happening. But I
14:30
Speaker 2: think with this a lot of people are up in
14:32
Speaker 2: arms because they're oh my god, there wasn't enough contributed
14:35
Speaker 2: to renewables. I get it. I was really looking forward
14:37
Speaker 2: to that as well, and when I actually heard it
14:40
Speaker 2: for the first time, I was say, oh my gosh,
14:41
Speaker 2: this is so disappointing. But then looking at it going
14:44
Speaker 2: they had a budget, they had to allocate it, and
14:45
Speaker 2: what I think they've done here is put their people first.
14:48
Speaker 2: I think that's really important to preface as well, and
14:50
Speaker 2: remember that they're trying to make decisions that are best
14:53
Speaker 2: for us, even though renewables is important, Like I think
14:56
Speaker 2: how people are arguably more important in this here and now,
14:59
Speaker 2: having through truly two national disasters.
15:02
Speaker 1: And they needed to prioritize the exact same way that
15:05
Speaker 1: we as individuals need to prioritize our own budgets, and
15:09
Speaker 1: we need to say, Okay, this is affecting us right now,
15:11
Speaker 1: what can we do and yeah, whilst it is a
15:14
Speaker 1: bit of a letdown, I think that most people would
15:16
Speaker 1: be able to see the reasoning behind that. Yeah.
15:18
Speaker 2: Absolutely, And I think it's important to have these conversations
15:21
Speaker 2: as well, because I would assume that, you know, a
15:23
Speaker 2: lot of people don't see it the way that we
15:25
Speaker 2: do and go, Okay, why would they have done xyz.
15:29
Speaker 2: And I'm taking a bit of a stab in the
15:31
Speaker 2: dark here. I'm assuming those people who are up in
15:33
Speaker 2: arms about it probably didn't suffer dramatically from the bushfires.
15:37
Speaker 1: It's a good point.
15:39
Speaker 2: I don't know if it's the right point to make,
15:41
Speaker 2: but we're making it here.
15:42
Speaker 1: And now let's move on to women who we love.
15:45
Speaker 2: I do love women.
15:46
Speaker 1: We're women, we love women.
15:48
Speaker 2: I love women, women all around. Oh my god, let's
15:50
Speaker 2: talk about us.
15:52
Speaker 1: So an incredible statistic actually coming out of the federal
15:55
Speaker 1: budget that one point one billion dollars is going to
15:58
Speaker 1: go into the frontline work and the frontline of domestic
16:01
Speaker 1: violence services and financial support for women experiencing domestic or
16:05
Speaker 1: family violence.
16:07
Speaker 2: Yes, and I love this because it's just something that
16:09
Speaker 2: we get behind that she's on the money all the time,
16:12
Speaker 2: we talk about it. We try to give you as
16:14
Speaker 2: many financial resources as possible if you're experiencing domestic or
16:18
Speaker 2: financial abuse or violence. And a new scheme which is
16:22
Speaker 2: going to be trialed, is trialing up to five thousand
16:24
Speaker 2: dollars in financial support for women experiencing domestic or family violence,
16:29
Speaker 2: which honestly could be the key for a lot of
16:32
Speaker 2: people to be able to escape a situation they otherwise
16:35
Speaker 2: would have been able to. And I think that that
16:37
Speaker 2: is so cool, like so flipping cool that our government
16:41
Speaker 2: is now trying to support us in a way that
16:43
Speaker 2: we haven't been supported historically. And please don't get me wrong,
16:46
Speaker 2: they absolutely have been doing a lot historically to try
16:49
Speaker 2: and work out how to best support us, and a
16:51
Speaker 2: lot of banks have been doing this as well, where
16:53
Speaker 2: they give grants of you know, a thousand dollars or
16:55
Speaker 2: two thousand dollars if you're experiencing disadvantage to help you
16:58
Speaker 2: out in this situation. But to know that our government
17:01
Speaker 2: is now stepping in and going, do you know what,
17:03
Speaker 2: We're going to try all this see how it goes.
17:05
Speaker 2: And I low key have no doubt that this trial
17:08
Speaker 2: is going to go well.
17:09
Speaker 1: Yeah, I think it's just like you said, very powerful
17:12
Speaker 1: to give people that beacon of hope and that light
17:14
Speaker 1: to be like, you know what, you actually can reach
17:16
Speaker 1: out for help because it is actually available, and like
17:20
Speaker 1: we said earlier about the mental health chat, this might
17:23
Speaker 1: be a bit triggering for you. There's lots of places
17:25
Speaker 1: that you can contact, like safe Steps.
17:27
Speaker 2: Yeah, and we'll put a whole heap of them in
17:29
Speaker 2: the show notes for you. If you're experiencing this, that's
17:32
Speaker 2: absolutely something that we want you to be able to
17:34
Speaker 2: seek help for. And to be honest, if you're too
17:35
Speaker 2: overwhelmed and don't know how to do it, please dm us.
17:38
Speaker 2: We have this happen sadly too often where people damn
17:42
Speaker 2: us and they're like, hey, this is the situation, what
17:44
Speaker 2: do I do? We are happy to be that friend
17:46
Speaker 2: that helps you on your way and make sure that
17:48
Speaker 2: you get connected with the people that you need to
17:50
Speaker 2: be connected with, because I don't want anyone in our
17:52
Speaker 2: community feeling like they don't know who to reach out
17:55
Speaker 2: to or what the first step to take is. And
17:58
Speaker 2: sometimes it's really hard to talk to a friend about
18:00
Speaker 2: We are that friend my friends, So slide into our
18:02
Speaker 2: DMS if you need anything. Literally, but more on domestic
18:06
Speaker 2: violence services more than two hundred million dollars in additional
18:10
Speaker 2: funding has been put aside for frontline domestic violent services,
18:13
Speaker 2: which you mentioned before. But of that, twenty six million
18:17
Speaker 2: dollars is also in the year's federal budget for Indigenous
18:20
Speaker 2: Australians experiencing family violence. And so something that I think
18:24
Speaker 2: is really special here is that they've carved out a
18:26
Speaker 2: specific amount, whereas more often than not it's just for
18:29
Speaker 2: all Australians when in reality their experience is often very
18:33
Speaker 2: different to that of you or I, and you and
18:36
Speaker 2: I can't relate to that. But what I want to
18:39
Speaker 2: know is that they are well supported and have the
18:41
Speaker 2: tools and resources available to them, because more often than
18:44
Speaker 2: not they get left at the sidelines when that is
18:47
Speaker 2: not what should happen at all.
18:49
Speaker 1: Ever, everyone has the right to feel safe and reach
18:51
Speaker 1: out for support, and like we said, there's going to
18:54
Speaker 1: be there's lots and lots of good resources out there
18:57
Speaker 1: if you're experiencing any hardship.
18:59
Speaker 2: Yeah, and something else I just want to touch on, Tony.
19:01
Speaker 2: It really relates to women, and I think it's really
19:04
Speaker 2: important is the four hundred and fifty dollars Supernuation Guarantee
19:08
Speaker 2: threshold removal, which sounds like a mouthful, but essentially what
19:12
Speaker 2: that means is up until now, if you earned under
19:16
Speaker 2: four hundred and fifty dollars a month, you didn't get
19:18
Speaker 2: paid any super at all, which is so scary. Which
19:21
Speaker 2: is so scary, but also it means that so many
19:24
Speaker 2: women are you know, maybe going back a couple of
19:27
Speaker 2: days a week while they're being mums, or they're unable
19:30
Speaker 2: to work, or they're experiencing disadvantage so they just work
19:32
Speaker 2: once or twice a month to you know, keep mentally stimulated.
19:36
Speaker 2: So that's actually being removed, which means that every dollar
19:39
Speaker 2: that women earn is now going to also earn them superannuation,
19:42
Speaker 2: which is really special. And Tony, that movie is actually
19:46
Speaker 2: going to see more than two hundred thousand women in
19:49
Speaker 2: Australia benefited. How good is that.
19:51
Speaker 1: It's just you just don't think that those things exist
19:54
Speaker 1: and that it's going to affect that many people.
19:56
Speaker 2: But two hundred thousand people are now going to be
19:59
Speaker 2: paid to branuation because of our budget this year. That
20:03
Speaker 2: is so powerful, Tony.
20:04
Speaker 1: And because they're being seen, you know, the federal government
20:07
Speaker 1: have actually said like, look, this affects this many women
20:11
Speaker 1: across our nation exact we can actually make a difference.
20:14
Speaker 2: You know, we don't need to gender it. Budget isn't gendered.
20:17
Speaker 2: But at the end of the day, we are women
20:18
Speaker 2: and we obviously as a whole experience significant disadvantage when
20:23
Speaker 2: it comes to finances, like the gender pay gap still exists.
20:26
Speaker 2: But these are nice steps towards making sure we can
20:29
Speaker 2: be more financially stable. And then the second thing when
20:32
Speaker 2: we're talking about women, Tony, it's actually childcare. And you
20:35
Speaker 2: know it's not because just women use childcare. But from
20:39
Speaker 2: the first of July twenty twenty two, the government is
20:41
Speaker 2: going to be removing the ten thousand, five hundred and
20:43
Speaker 2: sixty dollars cap on the childcare subsidy, which benefits eighteen
20:47
Speaker 2: thousand families, not two hundred thousand, but like still eighteen
20:49
Speaker 2: thousand families, a lot of families. But wait, wait for
20:52
Speaker 2: the numbers that are okay for sing later. This subsidy
20:56
Speaker 2: is also going to increase for families who have more
20:58
Speaker 2: than one kid under the age of five in childcare
21:00
Speaker 2: by thirty percent, which is good up to a maximum
21:03
Speaker 2: of ninety five percent. But this childcare change is actually
21:07
Speaker 2: aimed at boosting workforce participation and women's economic security, which
21:12
Speaker 2: means that forty thousand more women are going to be
21:14
Speaker 2: able to work in extra day a week. How good
21:18
Speaker 2: is that? An extra day a week of work for women,
21:22
Speaker 2: regardless of the financial security that's going to provide for
21:25
Speaker 2: them and their families. Another day a week for them
21:27
Speaker 2: to contribute to their careers or their jobs, or their
21:30
Speaker 2: financial security and their future security in their jobs. That's wild.
21:34
Speaker 1: I love that, and also their mental health and their
21:36
Speaker 1: own identities exactly. We've talked to lots of new mums
21:40
Speaker 1: that have said, oh, you know, like working that one
21:42
Speaker 1: day a week just makes so much difference. It makes
21:44
Speaker 1: me feel like me and I gain so much from
21:47
Speaker 1: that one day, even though it might not be actually financially,
21:49
Speaker 1: but mentally you just.
21:50
Speaker 2: Feel so good.
21:51
Speaker 1: And the thought that that one day is going to
21:53
Speaker 1: now turn into two for so many people is.
21:55
Speaker 2: More women in the workforce more often. You'll love to
21:58
Speaker 2: see it. Oh, yes, come at me anyway, that's my
22:00
Speaker 2: side rant on your topic of women.
22:12
Speaker 1: So we can move now into the thirteen billion dollar
22:14
Speaker 1: boost into the ndis.
22:16
Speaker 2: Yes, that is so special as well.
22:19
Speaker 1: And a statistic that really shocked me. Well, I guess
22:21
Speaker 1: not really shocked me, but knocks me over a little bit.
22:25
Speaker 1: Is that the NDIS is accessed currently by roughly four
22:28
Speaker 1: hundred and fifty thousand Australians. Yes, and we're talking about
22:32
Speaker 1: thirteen billion dollars extra going into help all these people,
22:36
Speaker 1: like the mass amounts of people are that are accessing it,
22:40
Speaker 1: and it's actually set to grow to one hundred and
22:42
Speaker 1: twenty two billion dollars over the next four years.
22:44
Speaker 2: Yes, which is crazy numbers. But at the end of
22:47
Speaker 2: the day, I think I really get really frustrated when
22:50
Speaker 2: people say, oh, it's going to cost taxpayers x amount.
22:54
Speaker 2: Can we stop using this language because it's not going
22:56
Speaker 2: to cost you more. You're actually just going to continue
22:59
Speaker 2: to pay tax. If you said to me, hey, vitorrel, like,
23:02
Speaker 2: how do you want your tax distributed? I obviously want
23:05
Speaker 2: the NDIS, support it, and I'm grateful that that's what
23:08
Speaker 2: it's being allocated to. Could we just say, hey, taxpayers,
23:11
Speaker 2: money is going to be allocated to this special cause
23:13
Speaker 2: or you know this outcome which is so much more
23:16
Speaker 2: powerful than it's going to cost taxpayers xyz. It's such
23:19
Speaker 2: an entitled way of talking about money like we are
23:22
Speaker 2: and I've said this a million times, and I even
23:24
Speaker 2: said it already on this specific podcast episode. We are
23:28
Speaker 2: so lucky to live in a country that cares so
23:31
Speaker 2: much about us. That is a privilege that is denied
23:34
Speaker 2: to so many people around the world. And I genuinely
23:37
Speaker 2: am so grateful to live here. And I just hope
23:40
Speaker 2: that you know, obviously I want to change the financial
23:43
Speaker 2: lives of heaps of people, but I also want to
23:45
Speaker 2: be able to change the mindset of entitlement and what
23:48
Speaker 2: that actually means, and change this mindset of paying tax
23:52
Speaker 2: as being a bad thing to being something that we're
23:54
Speaker 2: grateful for. And I've said this so many times, like
23:56
Speaker 2: the more tax you pay, the more money you're inning,
23:58
Speaker 2: the better it is. Like, how great is it? Let's
24:01
Speaker 2: stop going, Oh, I can't believe I had to pay tax? Really,
24:03
Speaker 2: you can't believe you had to pay tax. Have you
24:05
Speaker 2: not been paying it for like the last ten years
24:08
Speaker 2: that you've been working? Have your parents not paid tax?
24:10
Speaker 2: Like where did you get this idea that you weren't
24:12
Speaker 2: going to pay tax this year?
24:14
Speaker 1: Yeah, that you're just very surprised that that's what a shock?
24:17
Speaker 2: I had to pay tax? Oh wow, I didn't even know.
24:20
Speaker 2: So I think that maybe that's coming from my place,
24:23
Speaker 2: you know, a bit of a place of entitlement where
24:25
Speaker 2: I can afford to pay tax and I absolutely get it.
24:27
Speaker 2: But I think that, you know, we are so lucky
24:29
Speaker 2: to live in a country that is so well supported.
24:31
Speaker 2: Like if we get sick, we go to a hospital
24:33
Speaker 2: that is free, we get the services for free. And
24:36
Speaker 2: you know, if we compare to what is the greatest
24:38
Speaker 2: country of all America, that's not the case. They could
24:41
Speaker 2: go to hospital and it'd be hundreds of thousands of
24:44
Speaker 2: dollars if they end up with an illness that they
24:46
Speaker 2: didn't foresee coming. Like it is insane to think that
24:50
Speaker 2: we can just freely get access to healthcare and benefits
24:53
Speaker 2: that we genuinely need.
24:54
Speaker 1: Yeah, so well said, And I think that lots of
24:56
Speaker 1: people saying that don't think that they're ever going to
24:58
Speaker 1: need to access these services that their taxes pay for.
25:01
Speaker 1: And God forbid, you don't have to, but that's what
25:03
Speaker 1: they're there for.
25:04
Speaker 2: Let's change our mindsets and see it as a thing
25:06
Speaker 2: that we're grateful for rather than a burden that we carry.
25:09
Speaker 2: Because I guarantee, when you start meeting the people that
25:11
Speaker 2: are engaging in these services, they're just so grateful to
25:13
Speaker 2: have the support because they so desperately need it. And
25:16
Speaker 2: you know you're helping someone that's never a bad.
25:19
Speaker 1: Outcome, no never, And speaking of bad outcomes, maybe it's
25:23
Speaker 1: a good outcome. Who knows? Here we are?
25:26
Speaker 2: Bad outcome? No?
25:27
Speaker 1: Here we are?
25:28
Speaker 2: Where are we r?
25:29
Speaker 1: At the grand Finale?
25:30
Speaker 2: Oh? Okay, hold on, hold on, guys, I don't even
25:32
Speaker 2: know what she's planned for grand Finale. I just have
25:35
Speaker 2: a whole heap of notes in front of me to
25:36
Speaker 2: prepare for whatever she might throw at me. So, Tony Lodge,
25:40
Speaker 2: what is the grand finale? What are you most excited
25:43
Speaker 2: about about the budget?
25:44
Speaker 1: Okay? So everything that we've seen online, everything that people
25:47
Speaker 1: have been talking about inside out shees on the money
25:49
Speaker 1: community everywhere, first time super Saber.
25:53
Speaker 2: Is that where we're going? Here we go? All right?
25:55
Speaker 2: The first home scheme? All right?
25:57
Speaker 1: So tell us about what it is for anybody that
25:59
Speaker 1: doesn't know, give a little brief, little titbit of.
26:02
Speaker 2: Titbit, titbit, tit bit. I don't know. I also don't mind.
26:08
Speaker 2: I hope everyone's still listening to usaf on. I love
26:11
Speaker 2: the beats between us. I hope everybody else loves them
26:13
Speaker 2: as much aside.
26:14
Speaker 1: All right, well now we're getting ow titbits out.
26:18
Speaker 2: So the First Home Super Saviors Scheme or the FAH
26:21
Speaker 2: double S was actually introduced by the Australian government in
26:25
Speaker 2: the federal budget for twenty seventeen twenty eighteen to reduce
26:28
Speaker 2: the pressure on housing affordability, which is very nice. Thank
26:31
Speaker 2: you couple meant for appreciate that, and a lot of
26:33
Speaker 2: our community has now used that. And the First Home
26:36
Speaker 2: Super Savior scheme enables you to use your superannuation fund
26:40
Speaker 2: to help you save for your first home. Sounds amazing, Yeah,
26:43
Speaker 2: sounds amazing. And what you could do historically was contribute
26:47
Speaker 2: up to thirty thousand dollars, so fifteen thousand dollars each
26:50
Speaker 2: financial year into your superannuation fund to help you save
26:54
Speaker 2: for your first home. And the benefit here was that
26:57
Speaker 2: instead of being taxed at your marginal tax rate, so
27:00
Speaker 2: for example, if you earn between thirty seven thousand and
27:04
Speaker 2: ninety thousand dollars that's thirty two point five percent of
27:07
Speaker 2: your income, you actually get to make use of the
27:10
Speaker 2: tax rate inside your super fund, which is only fifteen percent,
27:14
Speaker 2: so you get to pay less tax, which means that
27:17
Speaker 2: you end up with more casholer to spend on your
27:20
Speaker 2: future home. So it's kind of like the government going, oh,
27:22
Speaker 2: we'll give you a bonus if you do it this way.
27:25
Speaker 2: And for a lot of people it's a no brainer
27:27
Speaker 2: because you can dump that money in and then take
27:29
Speaker 2: it out for your first home.
27:31
Speaker 1: And the government's doing all the work for you.
27:33
Speaker 2: They're doing all the work for you, and all of
27:34
Speaker 2: the super funds are actually really well equipped to make
27:37
Speaker 2: sure this happens easily and well. I think one of
27:40
Speaker 2: the only catches here is that it's hard to withdraw
27:43
Speaker 2: if you decide not to purchase property because you will
27:46
Speaker 2: have to pay additional tax. You don't just get to
27:48
Speaker 2: put it in, pull it out, and then get it
27:49
Speaker 2: at the fifteen percent, which would be a money win, right,
27:51
Speaker 2: So I think that for us, that sounds good. That
27:54
Speaker 2: sounds great. So the first Home super Savior scheme has
27:57
Speaker 2: gone from being the thirty thousand dollars I just mentioned
27:59
Speaker 2: up to fifty thousand dollars, which is more money, and
28:03
Speaker 2: that is great. What does that mean, Tony?
28:05
Speaker 1: That doesn't mean What does that mean? Tell me? Oh, okay,
28:08
Speaker 1: I'm asking you.
28:09
Speaker 2: So historically, if we did the maths on that And
28:11
Speaker 2: when I say if, Tony, I mean I did the
28:13
Speaker 2: maths on that you've wanted to share it.
28:14
Speaker 1: I had to sit here while you did it, and
28:15
Speaker 1: you said, does this make sense? I went, yes, Victoria.
28:18
Speaker 2: Yes, Victoria Vine. Can we please get to the show.
28:21
Speaker 2: But I really wanted to talk numbers because so many
28:23
Speaker 2: people are like, great, well what does the fifty thousand
28:26
Speaker 2: dollar thing mean for me? So historically, if you put
28:29
Speaker 2: thirty thousand dollars into your superfund and you earned between
28:32
Speaker 2: thirty seven and ninety thousand dollars, which is what a
28:34
Speaker 2: majority of our community earned, So we're just going to
28:37
Speaker 2: use that as the example. And your marginal tax rate
28:40
Speaker 2: was thirty two five percent the net value of ten
28:44
Speaker 2: thousand dollars, and let's just break it down to ten.
28:46
Speaker 2: Even though I nos thirty infie me the net value
28:49
Speaker 2: of ten thousand dollars. So Tony, if you earned ten grand, yep,
28:52
Speaker 2: and then it was put into your bank account after tax,
28:55
Speaker 2: that would be six seven hundred and fifty dollars for
28:57
Speaker 2: you personally. Yes, that's what I take That's what you
28:59
Speaker 2: did take home, So we're talking take home pay. But
29:02
Speaker 2: if you instead decided to do a first home super
29:05
Speaker 2: Saver scheme and contribute more money to your super and
29:08
Speaker 2: you put that same ten thousand dollars into your super
29:10
Speaker 2: fund instead of your personal bank account, the net value
29:14
Speaker 2: of that ten thousand dollars is eight thousand, five hundred
29:17
Speaker 2: dollars instead of the six thousand, seven hundred and fifty,
29:20
Speaker 2: So that's more money. So that means that if you
29:22
Speaker 2: put ten grand into your super to save your first
29:25
Speaker 2: home instead of putting it into your bank account and
29:28
Speaker 2: just saving for it in the way that everybody else would,
29:30
Speaker 2: it means you have an additional seventeen hundred and fifty dollars,
29:34
Speaker 2: which is an additional twenty one percent of your income.
29:38
Speaker 2: That's a pretty good Like if we're going to compare
29:40
Speaker 2: it to investment return, that is pretty good, right tona roddy.
29:43
Speaker 1: And twenty one percent just sounds good as well. You're like, oh, yeah,
29:47
Speaker 1: an extra twenty one percent.
29:48
Speaker 2: Well, yeah, they're going to give you an extra twenty
29:49
Speaker 2: one percent. Obviously if you earn more, that is going
29:52
Speaker 2: to change in terms of what you would save. Yes,
29:55
Speaker 2: So hypothetically, if you earned between ninety thousand and one
29:58
Speaker 2: hundred and eighty thousand dollars, obviously because you then pay
30:01
Speaker 2: thirty seven percent on tax instead of thirty two point five,
30:05
Speaker 2: that saving would actually be twenty two hundred dollars, So
30:08
Speaker 2: you'd actually have twenty six percent more money having used
30:12
Speaker 2: the First Home Super Saver scheme. So if we actually
30:15
Speaker 2: calculate that out, that thirty thousand dollars, if we'd put
30:18
Speaker 2: it into our first Home Super Saver scheme, we would
30:20
Speaker 2: have made five two hundred dollars, but now it's increased
30:23
Speaker 2: to fifty thousand dollars. We're going to make eighty seven
30:26
Speaker 2: hundred and fifty dollars by making use of this scheme
30:29
Speaker 2: if we're buying first properties. And to me, that's a
30:32
Speaker 2: lot of money that could go towards like part of
30:34
Speaker 2: your stamp duty, it could go towards paying your solicitor.
30:36
Speaker 2: It could literally cover so many things. And who says
30:40
Speaker 2: no to free money when it comes to purchasing property,
30:42
Speaker 2: right will?
30:44
Speaker 1: You'd be crazy too, especially for the government.
30:46
Speaker 2: Exactly.
30:47
Speaker 1: So that's a lot of numbers, it's a lot of jargon,
30:50
Speaker 1: that's a lot of using percent and those kinds of things.
30:53
Speaker 1: So basically what it boils down to is is going to.
30:57
Speaker 2: Have more money to save for your first home. So figu'ably,
31:00
Speaker 2: if you put fifty thousand dollars into your first home
31:03
Speaker 2: Super Saver, the difference between you putting it into super
31:05
Speaker 2: and saving for it outside is eight thousand, seven hundred
31:09
Speaker 2: and fifty dollars, which is which a massive, very exchanging. Yeah,
31:12
Speaker 2: I know, jigs cute, we're cute together, which is eight thousand,
31:16
Speaker 2: seven hundred and fifty dollars, which is obviously a massive
31:18
Speaker 2: amount of money. But something I wanted to touch on, Tony,
31:21
Speaker 2: touch it. Okay. So one of the things that we
31:24
Speaker 2: were talking about in the office this morning and someone
31:27
Speaker 2: passed comment on was like, well, most home deposits more
31:30
Speaker 2: than fifty thousand dollars. Yeah, which is true. Absolutely, We're
31:33
Speaker 2: not saying use that scheme to save for your house
31:35
Speaker 2: deposit and that's all you're going to get. Like, you're
31:37
Speaker 2: still going to be expected to have to save outside
31:40
Speaker 2: of Super.
31:40
Speaker 1: Yeah, it's not just that betor a deal. They don't
31:43
Speaker 1: just pass you the check and go, here's your house deposit.
31:45
Speaker 2: You've got two hundred grand here, go for It's not
31:48
Speaker 2: going to happen that way, but the benefit here is
31:51
Speaker 2: up to fifty thousand dollars. You can make extra money
31:53
Speaker 2: on that. So let's see that is the value, because
31:55
Speaker 2: a lot of the comments I've seen recently are like, well,
31:58
Speaker 2: what house am I going to buy with a fifty
31:59
Speaker 2: thous and all the deposit? Well, firstly, a lot of
32:01
Speaker 2: houses they're just not near the Melbourne CBD or any
32:04
Speaker 2: CBD in Australia. But then two, I get that, but
32:08
Speaker 2: that is not saying that that's the only deposit you're saving.
32:11
Speaker 2: This is just a part of your deposit, and you're
32:13
Speaker 2: going to be saving in a bank account as well
32:15
Speaker 2: to reach your goal. And I think that it's really
32:18
Speaker 2: important to preface that because it's not the entire amount,
32:21
Speaker 2: but we just calculated that you're going to be eighty
32:23
Speaker 2: seven hundred and fifty dollars better off. I'll take it.
32:26
Speaker 1: Yeah, if free money, I'll have yours and I'll have
32:28
Speaker 1: sixteen grand playing exactly.
32:30
Speaker 2: Thank you, Thank you. Unfortunately that's not true. OK, take
32:33
Speaker 2: somebody else's. But if you could, like, I would definitely
32:37
Speaker 2: think about sharing.
32:38
Speaker 1: You with you. Thank you.
32:39
Speaker 2: I appreciate that I would share with you. Another thing
32:42
Speaker 2: I actually wanted to touch on there, which I had
32:44
Speaker 2: a heated conversation about last night because obviously I get
32:47
Speaker 2: really into the budget and what it means and so
32:50
Speaker 2: what we Yeah, no, I bet you didn't see that coming.
32:53
Speaker 2: I'm so surprised, shocking. So what the conversation was about was,
32:58
Speaker 2: you know, this first time super safort scheme is increasing,
33:00
Speaker 2: which obviously is going to increase the amount of fest
33:03
Speaker 2: home buyers who are able to access the market quicker,
33:05
Speaker 2: which is great. But they're like, Okay, but we actually
33:08
Speaker 2: have a demand problem and a supply problem, and does
33:11
Speaker 2: that not mean that the real estate market is going
33:12
Speaker 2: to become more competitive? Yeah, it's like, I get that, absolutely,
33:16
Speaker 2: but let's look at the flip side of this. And historically,
33:20
Speaker 2: so one of the benefits of being sixty five years
33:23
Speaker 2: old was that.
33:24
Speaker 1: You part from the fact that you don't have to
33:25
Speaker 1: work anymore.
33:26
Speaker 2: Well, if you'd saved an invested properly, and if you
33:28
Speaker 2: hadn't done that, maybe you were in a little bit
33:30
Speaker 2: of a pickle. But one of the benefits of being
33:32
Speaker 2: sixty five years old is you have access to the
33:35
Speaker 2: downsizer scheme, which means you can sell your family home
33:38
Speaker 2: and contribute three hundred thousand dollars to your superanuation if
33:42
Speaker 2: you need to top it up. Really and obviously you
33:44
Speaker 2: and I Tony can't contribute three hundred thousand dollars to SUPER.
33:47
Speaker 2: They wouldn't let us do that. Fine, but that's a
33:50
Speaker 2: massive benefit, and that's obviously going to be a really
33:52
Speaker 2: great boost. But what they've done is they've reduced that
33:55
Speaker 2: age to sixty years old instead of sixty five, which
33:58
Speaker 2: means people get an additional five years before what we
34:00
Speaker 2: call the preservation age or retirement age. And five years
34:04
Speaker 2: is a long time if you're putting money into SUPER
34:07
Speaker 2: to retire. Yeah, And because they've decreased that age to sixty,
34:11
Speaker 2: I genuinely think that there will be an increase in
34:14
Speaker 2: the amount of you know, people who are pre retirement
34:17
Speaker 2: downsizing their homes, which hopefully will help us with the
34:20
Speaker 2: demand problem that is going on, and we'll have an
34:22
Speaker 2: increased supply. Therefore we'll be able to meet the changing
34:26
Speaker 2: nature of people wanting to buy homes versus what is available,
34:29
Speaker 2: because at the moment, the problem is that we just
34:31
Speaker 2: don't have enough properties for the amount of people that
34:33
Speaker 2: want to buy them. And that happens with population growth
34:36
Speaker 2: because as you know, the population has grown. Therefore the
34:39
Speaker 2: houses that were existing before aren't enough to meet the
34:42
Speaker 2: current demand. And I think these two things are going
34:44
Speaker 2: to work in conjunction with one another to meet that
34:47
Speaker 2: supply and demand issue.
34:49
Speaker 1: So ultimately, there's basically no downside, No, absolutely not. We're
34:52
Speaker 1: giving people that was sixty five is now sixty the
34:56
Speaker 1: opportunity to downsize, beef up their superannuation, their best life exactly.
35:01
Speaker 2: And I've run the numbers on this as well, because
35:04
Speaker 2: I think it's really important.
35:05
Speaker 1: Like when did you find time?
35:07
Speaker 2: I just really like numbers. Anyway, we have a number
35:09
Speaker 2: of listeners who are actually in their sixties, which is
35:12
Speaker 2: so fun because they DM me and like, hey, I
35:14
Speaker 2: know I'm not like your quote target market, but like
35:16
Speaker 2: I really appreciate it. And I'm like I'm sorry, Like
35:18
Speaker 2: I know we've got this like perceived target market, but
35:21
Speaker 2: if you resonate with our community, you are welcome. I
35:23
Speaker 2: don't care who you are. All friends are on him Yeah,
35:25
Speaker 2: we're all friends here. Anyway. I want to contextualize this
35:29
Speaker 2: again because what does that really mean? So putting an
35:32
Speaker 2: additional three hundred thousand dollars in super sounds great, but
35:34
Speaker 2: bringing it forward five years, right, that's that's giving you
35:39
Speaker 2: time for compound interests to actually work some of its magic. Obviously,
35:43
Speaker 2: the longer it's in there, the more impact it's going
35:45
Speaker 2: to have. But if you sold your family home and
35:47
Speaker 2: put in another three hundred thousand dollars into bernuation at
35:51
Speaker 2: the age of sixty and you're planning on a fire
35:54
Speaker 2: at sixty five, you continue to work right like you
35:56
Speaker 2: just dumped you three hundred grand in still you know,
35:58
Speaker 2: let's disregard any other SUPER contributions. We're just talking about
36:02
Speaker 2: that three hundred thousand dollars. If the average rate of
36:04
Speaker 2: return is seven and a half percent, which we use
36:06
Speaker 2: on the POD as usually an average because it's an
36:09
Speaker 2: easy average, it's very normal. Sometimes it's higher, sometimes it's lower.
36:12
Speaker 2: That's our average. But if it compounded it's seven and
36:14
Speaker 2: a half percent, that three hundred thousand dollars over five
36:18
Speaker 2: years is going to generate you approximately one hundred and
36:21
Speaker 2: thirty six thousand dollars. So by making that decision, that's
36:25
Speaker 2: how much more money you would have. So instead of
36:27
Speaker 2: retiring with an additional three hundred thousand dollars in super,
36:30
Speaker 2: you're going to retire with an additional four hundred and
36:32
Speaker 2: thirty six thousand dollars in SUPER, and that is really
36:35
Speaker 2: really powerful because so many people just go, oh my god,
36:39
Speaker 2: I'm so stuck, like I need additional super and that's
36:41
Speaker 2: actually going to help them when they actually need it,
36:43
Speaker 2: not at the time that they're retiring, so that they
36:46
Speaker 2: can access it, because so many people don't think about
36:48
Speaker 2: retirement until it's arguably a little bit too late, and
36:52
Speaker 2: so many of us are like, oh my gosh, like
36:54
Speaker 2: what am I going to do? And so many of
36:56
Speaker 2: us just don't consider it until it is too late,
36:58
Speaker 2: and we're lucky that we've got shees on the money
36:59
Speaker 2: and hope in the future this isn't going to be
37:01
Speaker 2: a problem. But for so many people who didn't have
37:03
Speaker 2: the tools and resources that didn't have it because superannuation
37:06
Speaker 2: only got mandated, it only became compulsory in nineteen ninety two,
37:10
Speaker 2: so people who were working before that they might have
37:13
Speaker 2: had to but they might not have had SEP, but
37:15
Speaker 2: probably not, and it wasn't a priority because like, that
37:18
Speaker 2: wasn't what they were thinking. So for me, this is
37:21
Speaker 2: massive because for those people who maybe hadn't been thinking
37:24
Speaker 2: about retirement, did have their heads in the sand a
37:26
Speaker 2: little bit at the age of sixty, now have this
37:28
Speaker 2: chance to kind of, you know, produce a little bit
37:30
Speaker 2: more income than they had before with a tool that
37:33
Speaker 2: you know. Not everyone wants to sell their family home,
37:35
Speaker 2: but it is a really good option if you're in
37:37
Speaker 2: that position. But if you, at the age of sixty,
37:40
Speaker 2: make that decision. And I'm talking about this one obviously,
37:43
Speaker 2: maybe it's not you, maybe it's not related to you, Tony,
37:46
Speaker 2: But how special is it to have more knowledge and
37:48
Speaker 2: have more interest because our parents at that age, like,
37:50
Speaker 2: we all know someone in this age bracket that this
37:53
Speaker 2: information could benefit. Right, But also, I'm probably going to
37:56
Speaker 2: work until I die. Not the point. But if you're
37:59
Speaker 2: at sixty and you're like, yeah, I'm still young, fresh happening.
38:01
Speaker 2: I don't really want to retire at the age of
38:03
Speaker 2: sixty five, but like, I'd like the option if you're
38:06
Speaker 2: going to say, all right, I'm going to work to seventy.
38:08
Speaker 2: The power of compound interest means that three hundred thousand
38:11
Speaker 2: dollars contribution will more than double and it will be
38:15
Speaker 2: worth six hundred and thirty three thousand dollars to you
38:18
Speaker 2: personally by contributing that additional three hundred grand into super
38:22
Speaker 2: by making that decision, which means your money made three
38:25
Speaker 2: hundred and thirty three thousand dollars over ten years.
38:28
Speaker 1: What that is literally you being able to retire on
38:33
Speaker 1: a boat in Spain.
38:34
Speaker 2: Okay, that's not what it means, but it does mean
38:37
Speaker 2: that we are far more financially secure than.
38:40
Speaker 1: Yeah, financially secure.
38:42
Speaker 2: Yeah, Tony is going to be on a bug in Spain.
38:45
Speaker 2: But I think that that's really important to contextualize because
38:48
Speaker 2: you know, that sounds great and you kind of say
38:51
Speaker 2: it in passing and for a lot of us who
38:53
Speaker 2: watch the budget would have been like great, like the
38:55
Speaker 2: age has been dropped. But five years is so powerful
38:58
Speaker 2: and that is massive, and that is an opportunity that
39:00
Speaker 2: I think a fair few people will make. But then
39:03
Speaker 2: it ultimately has this what domino effect, So then more
39:06
Speaker 2: properties are going to be for sale, and then more
39:08
Speaker 2: millennials are going to be able to purchase those properties.
39:10
Speaker 2: And yeah, it's just really important to understand that everything
39:13
Speaker 2: does have a domino effect and somehow everything interrelates.
39:17
Speaker 1: So now that we've covered the first home super Savior
39:20
Speaker 1: scheme and how that's going to affect people at both
39:23
Speaker 1: ends of the spectrum getting into the property market and
39:26
Speaker 1: also maybe downsizing and coming out of the property market
39:30
Speaker 1: in the way that they've known it for the past
39:32
Speaker 1: forty years. Yeah, here's an ex big one.
39:35
Speaker 2: Oh gosh, I know where we're going with this, and
39:37
Speaker 2: I feel like a Victoria rant is coming. I'm so sorry,
39:40
Speaker 2: but I'm also not sorry.
39:42
Speaker 1: So we've seen this a lot.
39:44
Speaker 2: So we're not talking about the first home buy out
39:46
Speaker 2: super savior scheme. We're actually talking about the new single
39:49
Speaker 2: parent Family Home Guarantee, aren't we, Tony.
39:52
Speaker 1: Yes, So up to ten thousand single parents will be
39:54
Speaker 1: able to purchase a house with a two percent deposit.
39:57
Speaker 2: Yeah, which sounds great in theory. In theory, I'm going
40:02
Speaker 2: to throw out my opinion there and say I'm a
40:05
Speaker 2: little bit negative on it. You're right, there are going
40:06
Speaker 2: to be some people in our community that benefit massively
40:09
Speaker 2: from this. So we're not disregarding this, but I do
40:11
Speaker 2: think that this isn't as shiny as it looks if
40:14
Speaker 2: we break it down. So, to summarize, the government's new
40:18
Speaker 2: single parent Family Home Guarantee means that single parent families
40:22
Speaker 2: of any gender could be eligible to purchase their own
40:25
Speaker 2: homes up to city state value caps. So it's going
40:28
Speaker 2: to depend on what state or territory you live in
40:31
Speaker 2: with a two percent deposit, and it doesn't need to
40:33
Speaker 2: be their first home. So it's not the first Home
40:36
Speaker 2: Super Savior scheme. It's not first home, it's any home.
40:40
Speaker 2: But at the same time, they've also said that there
40:42
Speaker 2: are one hundred and twenty five thousand single parents, eighty
40:46
Speaker 2: percent of which are female, and these people will all
40:50
Speaker 2: be eligible for this scheme.
40:52
Speaker 1: So there's one hundred and twenty five thousand people that would.
40:54
Speaker 2: Be eligible for a scheme that has ten ten poul spots. Right, great, fantastic,
41:00
Speaker 2: But what really stresses me is that they haven't considered
41:04
Speaker 2: the financial implications of single parent families or the fact
41:08
Speaker 2: that they usually have a very difficult financial reality. I
41:11
Speaker 2: am a bit savage on this because I genuinely feel
41:14
Speaker 2: like it's going to disadvantage more people than it's going
41:16
Speaker 2: to advantage, and I think it's putting a lot of
41:19
Speaker 2: pressure on the idea that buying a family home is
41:22
Speaker 2: the be all and end all of success, and that
41:24
Speaker 2: is not true if you're a single parent. Sometimes buying
41:28
Speaker 2: a family home isn't actually in your best interest at all.
41:31
Speaker 2: Sometimes investing, you know, in shares is going to be
41:33
Speaker 2: the best option for you, because the financial commitment of
41:36
Speaker 2: a mortgage means that if you don't have an additional
41:38
Speaker 2: foregrande that month to meet mortgage payments, like you're in
41:41
Speaker 2: financial distress. Whereas if you don't have four grand that
41:43
Speaker 2: month to invest in shares, like you're right, we'll just
41:45
Speaker 2: invest next month, like there's no flexibility in a mortgage,
41:48
Speaker 2: and it's just a lot of responsibility. And what is
41:51
Speaker 2: already a single income household And you know, we've just
41:54
Speaker 2: gone through a pandemic where we've seen literally millions of
41:57
Speaker 2: people lose their jobs and I've never thought that. They
42:00
Speaker 2: never thought that they would lose their job, and everyone said, oh,
42:02
Speaker 2: it ever happened to me. But now hundreds of thousands
42:05
Speaker 2: of single parents have less income, and now they're being told, oh,
42:08
Speaker 2: but you can buy a house with you know, two percent,
42:10
Speaker 2: which is going to arguably excite a lot of people,
42:13
Speaker 2: But then they've only announced ten thousand spots, which is
42:16
Speaker 2: really disappointing. But at the same time, and now you
42:19
Speaker 2: have more money that you've borrowed, and therefore, as much
42:21
Speaker 2: as you only had a two percent deposit and interest
42:23
Speaker 2: rates are great, you're still paying interest on money that.
42:25
Speaker 1: You've borrowed and on almost of the entire loan.
42:28
Speaker 2: Yeah, pretty much the entire loan. And that's a financial
42:30
Speaker 2: impact in itself, because over the long term, you're going
42:33
Speaker 2: to be paying more interest on more money that you know,
42:35
Speaker 2: other people wouldn't have had to do. So we're backwards then.
42:38
Speaker 2: And I just feel like it is great, and if
42:40
Speaker 2: you're eligible, fantastic, But I really just don't think that
42:43
Speaker 2: people have considered it, and the eligibility criteria is so slim,
42:47
Speaker 2: and it's just so many people haven't considered it, and
42:50
Speaker 2: I'm just really frustrated about it because also, let's think
42:53
Speaker 2: about this more deeply, I don't think many banks are
42:56
Speaker 2: actually going to be approving loans of this year, like
43:00
Speaker 2: how many banks are willing to take it on. And
43:02
Speaker 2: we're already hearing from our community and I'm speaking to
43:04
Speaker 2: you every day, and some of you have said, well, Victoria,
43:07
Speaker 2: I have a twenty percent deposit, but a bank won't
43:09
Speaker 2: lend to me. And only last week we got a
43:11
Speaker 2: DM from somebody who said that their broker said, hey, yeah,
43:14
Speaker 2: actually come back when you've got a partner to buy
43:16
Speaker 2: them out, which is absolutely foul. But but it comes
43:19
Speaker 2: to the responsible lending laws, Like are we actually going
43:22
Speaker 2: to do this? Like is that what we're going to do.
43:24
Speaker 2: We're going to put you in a detrial mental position
43:25
Speaker 2: because it makes everybody else feel better, and it makes
43:27
Speaker 2: the government feel like they've outstretched this olive branch to say, hey, yeah,
43:31
Speaker 2: more people are in more property, when in reality, it's
43:33
Speaker 2: not putting their financial circumstances. First, how about you pay
43:36
Speaker 2: for us to get some financial advice, Like, how about
43:39
Speaker 2: you pay for us instead of giving us a massive discount.
43:42
Speaker 2: Why don't you just pay financial advisors so that they
43:46
Speaker 2: can put people in the best possible financial position for them.
43:49
Speaker 2: That's going to be far more powerful. Pay my salary,
43:52
Speaker 2: I'll go, do it? Do you know what I mean? Like, yes,
43:54
Speaker 2: it's so frustrating because I see it and people go, yeah,
43:56
Speaker 2: but Victoria really want to own a home and those
43:59
Speaker 2: lucky enough to afford financial advice and actually personalized advice.
44:03
Speaker 2: Some clients I've had who you know, they have great incomes,
44:06
Speaker 2: they might be dual income earners, And I say, okay, cool,
44:09
Speaker 2: but like, these are your goals, these are your values.
44:12
Speaker 2: You said you also want to purchase a house in
44:13
Speaker 2: the future, and one of My favorite things to do
44:15
Speaker 2: is projections to clients, which you're probably not surprised about.
44:17
Speaker 2: But what I get to do is plug into this
44:19
Speaker 2: really fancy software all of your life events and what
44:22
Speaker 2: your income is and what we expected to increase too,
44:24
Speaker 2: and you know how much kids are going to cost,
44:26
Speaker 2: and we can factor everything in and I can show
44:28
Speaker 2: you what your financial life looks like in an outcome
44:30
Speaker 2: to be like, Okay, cool, we'll reach your tirement with X.
44:32
Speaker 2: But if you didn't buy a house, this is what
44:34
Speaker 2: would looks like now. I have had clients turn around
44:37
Speaker 2: and say, hey, the you know how we said we
44:39
Speaker 2: wanted to buy a house. Now we've gone through this
44:41
Speaker 2: entire process, we actually don't think that's a priority for
44:43
Speaker 2: us anymore. Like you deserve the choice, You deserve that option.
44:48
Speaker 2: You deserve to be able to see the clarity around
44:50
Speaker 2: your financial situation. Because I bet if I said, cool,
44:53
Speaker 2: you'll get to your retirement. You might not own your
44:55
Speaker 2: own home, but you will have a free cash flow
44:57
Speaker 2: that comes in each and every single month, and you
44:59
Speaker 2: will never have to worry about paying a bill versus, hey,
45:02
Speaker 2: you're actually going to financially struggle each and every single
45:05
Speaker 2: day you're going to own your own home, but it's
45:07
Speaker 2: going to be a stretch and you're always going to
45:08
Speaker 2: have to think about scrimping on everything. Like those two
45:12
Speaker 2: situations are so different. But we have this value set
45:15
Speaker 2: that's ingrained in us that makes us think that we
45:17
Speaker 2: need to own property to be successful, and it is
45:20
Speaker 2: not the truth.
45:21
Speaker 1: And I feel like we're actively trying to change the
45:24
Speaker 1: social landscape of the expectations that buying a house means
45:28
Speaker 1: that you're successful because gone of the days when you
45:30
Speaker 1: grow up, you get married, you buy a house, you
45:32
Speaker 1: have a baby. That's not what people's standards and not
45:35
Speaker 1: And you know, requirements of happiness in life are.
45:38
Speaker 2: And if it's yours, great, that's fantastic. But I kind
45:40
Speaker 2: of want to be able to redefine what success looks like.
45:43
Speaker 2: And for me, it's happiness, it's wealth creation, regardless of
45:46
Speaker 2: how that happens. It's freedom of choice. It's not just
45:50
Speaker 2: owning a house and being able to say this is
45:51
Speaker 2: my address and I own that address. What does it
45:54
Speaker 2: mean in the grand scheme of things, arguably not that much.
45:57
Speaker 2: And I know that that's again my entitlement showing a
46:00
Speaker 2: little bit because I am a homeowner. But with home
46:03
Speaker 2: ownership comes a lot of costs. And let's pretend for
46:06
Speaker 2: a hot second that I was a single parent. You know,
46:08
Speaker 2: I've owned my own home. I didn't get access to
46:10
Speaker 2: this great scheme. But like a couple of months ago
46:12
Speaker 2: before I moved house, in my old house, the skylights
46:15
Speaker 2: broke when we had that hailstorm. And I'm really grateful
46:18
Speaker 2: that I was renting because that fee was covered by
46:21
Speaker 2: my landlords. But the skylights in my house was like
46:24
Speaker 2: three or four thousand dollars to get fixed. And if
46:26
Speaker 2: you're a single parent, having lumped on your three or
46:28
Speaker 2: four thousand dollar costs that you have to fix because
46:30
Speaker 2: my roof was literally leaking because there were hailstones coming
46:34
Speaker 2: through it. Like I wouldn't have had that capacity as
46:36
Speaker 2: a single parent to go, oh whatever an unexpected cost
46:39
Speaker 2: to two extente or four thousand dollars. There's so much
46:43
Speaker 2: more to property ownership than just getting into the market
46:46
Speaker 2: and just getting that home deposit saved and then purchasing
46:49
Speaker 2: your house. It's not just the mortgage repayments. It's the rates,
46:52
Speaker 2: it's the water, it's the home maintenance, it's everything else.
46:56
Speaker 2: And then if you compare that to renting nine times
46:58
Speaker 2: out of ten, renting actually ends up being more equitable.
47:01
Speaker 2: Even if we compare it to the monthly mortgage repayments,
47:04
Speaker 2: which is what most financial advisors will do for you,
47:06
Speaker 2: They'll say, Okay, well cool. If you bought your own
47:08
Speaker 2: home and saved up, you know, your mortgage repayments would
47:10
Speaker 2: be one thousand dollars a month, Tony. But if you
47:12
Speaker 2: went and rented, oh, to be one one hundred dollars
47:14
Speaker 2: a month, and you'll be like, oh, owning my own
47:16
Speaker 2: home makes sense. But they didn't tell you about the
47:18
Speaker 2: maintenance costs. They didn't tell you about the rates, they
47:20
Speaker 2: didn't tell you about all of the other unexpected costs,
47:23
Speaker 2: all regular costs associated with home ownership that weren't taken
47:27
Speaker 2: into consideration. It's not just the mortgage repayment.
47:30
Speaker 1: Well on that rat on that victoria divine.
47:33
Speaker 2: Yeah, sorry, I feel like is a safe space to
47:36
Speaker 2: relate it. Wrap it. Okay, Well, I think we've hit
47:38
Speaker 2: some really good points, and I'm going to chuck a
47:40
Speaker 2: thread into the Facebook group once this drops, which will
47:43
Speaker 2: probably be very soon, and we can have a further
47:46
Speaker 2: conversation and discuss all of the main points and what's
47:49
Speaker 2: going on, the only thing I ask is that we
47:51
Speaker 2: remain kind about it. And you remember that it is
47:54
Speaker 2: a budget and it is you know, someone allocating it
47:56
Speaker 2: based on what they think our needs are. And if
47:59
Speaker 2: that hasn't met your needs then okay, that is okay.
48:01
Speaker 2: But we don't need to savage it like She's on
48:03
Speaker 2: the Money community as a community of kindness. It's not
48:05
Speaker 2: one of savaging it and ripping other people down and
48:08
Speaker 2: saying your priorities are not mine, because in She's on
48:10
Speaker 2: the Money, everybody's priorities are valid. Yes, So on that, Tony,
48:14
Speaker 2: I think it is time to wrap the show officially.
48:17
Speaker 2: But before we do that, we'd like to acknowledge and
48:19
Speaker 2: pay respect to Australia's Aboriginal and to Oros Strait Island
48:22
Speaker 2: to peoples. They're the traditional custodians of the lands, the
48:24
Speaker 2: waterways and the skies all across Australia. We thank you
48:28
Speaker 2: for sharing and for caring for the land on which
48:30
Speaker 2: we are able to learn. Together, we pay our respects
48:32
Speaker 2: to elders past and present, and we share our friendship
48:35
Speaker 2: and dulk kindness. Now, you need to remember that the
48:37
Speaker 2: advice shared on She's on the Money is general in
48:40
Speaker 2: nature and does not consider your individual circumstances. She's on
48:43
Speaker 2: the money exists purely for educational purposes and should not
48:46
Speaker 2: be relied upon to make an investment or a financial decision.
48:49
Speaker 2: And we promise I am an authorized representative of Australia
48:52
Speaker 2: Pacific Funds Management Proprietary Limited ABN three four one three
48:56
Speaker 2: two four six three two five seven AFSL three three
48:59
Speaker 2: nine one five one And as always, cheers to our
49:02
Speaker 2: mate Tony Lodge for whipping this episode together in record
49:06
Speaker 2: time to get it in your ears at a time
49:08
Speaker 2: that it is most relevant. Good, I've got to go,
49:11
Speaker 2: I've got to go to go. Cut this all right,
49:13
Speaker 2: see you lady guys