Two-in-five Australians set to shop the End of Financial Year sales

New research from PayPal reveals that two-in-five (38%) Australians plan to shop during the End of Financial Year (EOFY) sales, but not predominantly for traditional tax-deductible work expenses. Instead, a significant portion of shoppers will be focusing on personal items such as clothing or fashion (51%), electronics (31%), homewares and garden items (26%), and health and beauty products (12%).

The current economic climate is a major factor influencing this broader bargain-hunting behaviour. More than half (52%) of Australians believe that online sales can help them manage cost-of-living pressures. Reflecting this sentiment, two-in-five (42%) will shop the EOFY sales online rather than in-store, driven by the convenience of price comparisons and the perception of better deals online.

“As the cost-of-living crisis continues, it’s clear that Australians are eager to save money whenever and wherever they can, looking to online sales events to help reduce spending,” said PayPal Consumer Shopping Expert Bonnie Brady. She advises that while sales can be an excellent opportunity to save on necessary items, planning purchases and setting budgets are crucial to avoid impulse buying and overspending.

However, the shift towards online shopping comes with increased security concerns. A substantial majority of Australians (93%) are worried about online security, with scams becoming more sophisticated and harder to recognise. This concern has grown over the past year, with two-in-five (40%) Australians more worried about online security than before.

Despite these concerns, there is a strong awareness of online security measures among Australians. About 84% feel confident in their understanding of how to protect themselves against scams, and 99% are familiar with key online safety techniques such as using complex passwords (87%), diversifying passwords (76%), and avoiding links in text messages (76%). Additionally, four-in-five (84%) prefer to use secure payment options like PayPal when shopping online.

Unfortunately, heightened vigilance against scams has led to some disruptions in legitimate activities. For example, 87% of Australians avoid phone calls from unknown numbers due to scam fears, and 15% have missed a genuine payment assuming it was fraudulent.

Bonnie Brady emphasises the importance of staying informed about online safety: “The convenience of online shopping has never been more popular, but we must all do the work to learn how to stay safe online, and to keep that understanding up as new threats emerge. The protective steps that each of us can take are simple and often free, but no one can take them for us.”

To help consumers shop safely and smartly during the EOFY sales, PayPal offers the following tips:

1. Plan purchases: Make a list and budget before shopping to avoid impulse buys.
2. Scrutinise suspicious sites: Look out for fake retail sites by checking for anomalies and verifying URLs.
3. Check reviews: Look up online reviews to avoid fraudulent sellers.
4. Understand return options: Ensure the retailer has a reasonable return policy.
5. Compare prices in real time: Use tools like PayPal Honey to find the best deals and apply discount codes automatically.
6. Keep financial details safe: Use secure payment methods like PayPal to protect your information.

These strategies can help Australians make the most of the EOFY sales while staying safe and within budget.

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Builders Respond to NSW Budget

Today’s NSW Budget offers significant measures to address supply barriers in the new home building sector, according to Master Builders Association of NSW Executive Director Brian Seidler.

Housing

“Treasurer Daniel Mookhey has appropriately placed housing at the heart of the budget, acknowledging that building the necessary homes and infrastructure is essential to tackling broader economic and cost-of-living challenges,” said Mr. Seidler.

Key Housing Initiatives:

• Speeding Up Development Approvals: Measures to expedite development approvals will reduce build costs and address delays in planning, which have historically extended build times.
• Investment in Social and Affordable Housing: A record investment in social and affordable housing aims to address the critical undersupply for vulnerable populations.
• Release of Government Land: The release of government land for both government and private home building is a long-advocated measure by Master Builders.
• Build-to-Rent Projects: These projects are welcomed as they diversify the NSW housing market and make rental accommodation more affordable.
• Higher Density Construction: With construction times increasing from an average of 22 months to over 30 months over the last decade, accelerating build times is crucial. The focus will be on overcoming labour shortages, low productivity, and delays in other approvals such as occupation certificates.

Business Support

“Building and construction businesses have faced rising operating costs and increased project risks for several years, with many struggling to stay afloat. Over 98% of the industry is comprised of small businesses, which are currently facing significant challenges,” said Mr. Seidler. He emphasized that a strong building and construction industry is vital for the economy, noting that every dollar invested in the industry returns three dollars to the economy.

Skills and Training

“Workforce shortages are a significant barrier to the building and construction industry, which loses 8% of its workforce annually, replacing only about half of those lost. Growing our domestic workforce is crucial,” stated Mr. Seidler.

Key Skills and Training Measures:

• Fee-Free Training: The budget includes additional places for fee-free training, particularly targeting construction apprenticeships.
• Industry-Led Training Organisations: There is a call for better support for vocational education and training providers outside of TAFE, emphasizing the role of industry-led registered training organisations and group training organisations in delivering this training.

Infrastructure

The Master Builders Association welcomes additional investments in transport and education projects, including upgrades to roads around the new Western Sydney airport. “As we build more homes, it’s crucial to have supporting infrastructure like roads, hospitals, and schools to support growing communities,” Mr. Seidler said.

Building Commission

“We welcome additional funding for the NSW Building Commission to enforce regulations and eliminate bad building practices,” said Mr. Seidler. The Master Builders Association has long supported an industry-specific building commission to ensure high standards in construction projects, meeting community expectations.

In summary, today’s NSW Budget introduces several positive measures that aim to enhance the building and construction industry’s ability to meet housing targets, support small businesses, address skills shortages, and ensure robust infrastructure development.

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Australian Energy Commission Signals Major Overhaul of Complex Electricity Pricing Amid Consumer Concerns

The Australian Energy Market Commission (AEMC) has announced plans to overhaul electricity pricing rules in response to growing concerns about complex and often punitive tariffs affecting many households.

Key Points:

• Revamp Announcement: Anna Collyer, Chair of the AEMC, will address these issues in her keynote speech at the Australian Energy Week conference in Melbourne, highlighting the need for new consumer protections amid the rollout of smart meters and changing tariff structures.
• Consumer Protections: The AEMC will introduce measures to protect consumers from unexpected tariff changes. This includes requiring greater notification and detailed information from retailers about how changes will impact users.

Background:

The AEMC, which sets the rules for retailers in the national electricity market covering about 10 million customers along the eastern seaboard, is addressing concerns about the rapid and radical changes to electricity pricing. Traditionally, households paid a flat rate for electricity, but the introduction of smart meters has enabled more complex tariffs such as time-of-use rates and demand charges. These changes, however, have left many consumers facing higher bills without understanding why.

Collyer’s Perspective:

Ms. Collyer emphasised the critical role of smart meters in transitioning Australia to renewable energy. She noted that these devices allow consumers to better manage their energy use, particularly in homes with rooftop solar systems. However, she acknowledged that not all consumers are willing or able to adjust their energy consumption habits significantly.

“We need to account for all types of consumers, not just those who thrive on more complexity,” Ms. Collyer will say. She also highlighted the importance of smart meters in the broader context of reducing peak demand and infrastructure costs.

Proposed Changes:

• Greater Transparency and Notification: New rules will ensure that consumers are adequately informed about tariff changes, including more detailed explanations and the elimination of up-front costs for smart meter installations.
• Review of Tariff Appropriateness: The AEMC will launch a review to assess whether current power charges are fair and effective in reducing peak demand and overall costs.
• Innovative Approaches: Collyer urged energy companies to innovate with the advent of smart technology, such as electric vehicles and internet-enabled appliances, which can adjust their energy use based on real-time pricing.

Industry Impact:

Collyer’s speech will also include a challenge to power companies to be more like “Uber, not the taxi; Apple, not Kodak,” encouraging them to embrace innovation rather than sticking to outdated practices.

Conclusion:

The AEMC’s proposed overhaul of electricity pricing rules aims to balance the transition to a greener grid with the need for consumer protections and transparency. By addressing the complexities and unexpected costs associated with new tariff structures, the commission hopes to ensure that all consumers benefit from the move towards smarter energy management.

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