Kelly O’Dwyer launches national money-making scheme

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One of the most disturbing findings of the banking royal commission was how financial institutions are taking advantage of Australians who have little or no idea about how the system works.

While the majority of YourLifeChoices members believe they’re fairly financially savvy, there are many who have no idea about their Age Pension entitlements, how superannuation works, how much and what types of fees they’re being charged by banks and super funds, or even how to apply for the Age Pension in the first place.

Around 70 per cent of the 5500-plus members questioned in the YourLifeChoices Insights Survey 2017 said that the Government doesn’t do enough to support retirees or to make the retirement income and Age Pension process simple to understand. That’s why YourLifeChoices has been delivering authoritative and essential retirement information for the past decade and longer.

Still, it seems the Government has finally seen the light, this week releasing its new financial literacy program.

Yesterday, the Minister for Revenue and Financial Services Kelly O’Dwyer launched the 2018 National Financial Capability Strategy at an event at Parliament House in Canberra. The new strategy replaces the 2014-2017 National Financial Literacy Strategy.

Ms O’Dwyer highlighted the Government’s commitment to helping Australians take control of their financial lives.

“We want all Australians to be in control of their financial lives. The strategy guides action across the government, business, community, education and research sectors to support enhanced financial capabilities in individuals, families and communities,” she said.

The strategy aims to help Australians:

  • manage their money day to day
  • make informed decisions
  • plan for the future.

According to Australian Securities and Investments Commission (ASIC) modelling, more than one in three people find dealing with money stressful and overwhelming, and that if financial capability levels for all Australians were lifted even slightly, consumer wealth and consumption would increase by $212 billion over the next 30 years.

“The 2018 National Financial Capability Program drives programs and initiatives that make a difference in people’s lives. We want more Australians to access information and guidance they can trust to ensure everyone can make informed decisions,” said ASIC chair James Shipton.

“ASIC is committed to financial inclusion and better outcomes for all Australians. People are at the heart of the financial system and at the centre of this national strategy. The financial sector as a financial community should be engaging in practices that promote fair consumer outcomes.

“In particular, we need to continue to encourage women to be more confident with money, young people to find the information they need when they need it and support Indigenous Australians to access appropriate financial products and services. We want to see more Australians in control of their financial lives and I look forward to working collaboratively under the 2018 National Strategy to advance this important work,” Mr Shipton said.

The online “strategy” tool is quite broad and offers information on most aspects of finance, including tax, benefits and social services. However, it seems once again, retirement income has been scantly covered. Fortunately, YourLifeChoices members know we keep them up to date on all their retirement rights and entitlements.

Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.

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Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?

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19 Comments

Total Comments: 19
  1. 0
    0

    Another “talkfest” generated by useless academics to pull the wool over our eyes and make it look as if they are doing something.

    • 0
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      I’m sure a few are making very good money planning and implementing and writing reports.

    • 0
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      You got it right, Pedro the Swift. Just more BS and games of ”let’s pretend”, and probably further excuses for not doing what is really necessary and beneficial. For example, how nice to be able to tell retirees ”well, we are showing you how to make money” rather than fixing the flaws in the pension system!

    • 0
      0

      Rainey – in yesterday’s article you lamented how so many are hard done by because they are financially illiterate
      Now here the government is offering a solution and you do nothing but criticize
      You are a professional whinger , typical leaner personality

    • 0
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      olbaid, you are a typical judgmental ASS relying on ASSUMPTIONS to peddle nonsense. Firstly, I am NOT leaner and I do NOT have a leaner personality. If I did, I wouldn’t have worked and earned my way to SFR from abject poverty with neither education nor good health nor opportunity nor guidance or support.

      Secondly, I am NOT a whinger. I AM a critic of moronic idiots with dumb notions. And this is the brainchild of a moron idiot. Before you can teach financial literacy, you have to understand the world the financially illiterate live in and the challenges they face. The government isn’t offering a solution. It’s either offering a lot of irrelevant and incomprehensible BS to people who don’t even know what they don’t know, or a bit of useless common-sense basic information to people who wouldn’t be alive if they didn’t already know that.

      The people who had problems with banks didn’t have problems because they didn’t have access to information and guidance. They had problems because they were either had no common sense and were too arrogant to pay attention to good advice, or because they are totally brainless and beyond educating about anything. Education won’t help them. They need PROTECTION.

      Is the government going to tell us which company share prices will rise and which will fall? Or which superannuation fund is guaranteed to continue to make double-digit returns and change a small flat fee? Financial stress is a result of low investment returns, high housing and power costs, high health costs, and a flawed pension system. ”Educating” the victims isn’t going to solve that.

    • 0
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      OGR, haven’t you noticed olbaid=Raphael? Not worth responding to him / it (automated robot).

      Yes, it’s just a pretend exercise to confuse people that they are trying to help.
      ASIC is blaming the victim for all their inaction!!!

      Rae is correct – now let’s keep a track of all people making money out of reports, so-called defective money planning, etc – all without any guarantees of results! With ASIC going back to sleep again?

  2. 0
    0

    Well, here’s a good chance for the Labor trolls to sink the slipper into the government which is trying to improve the lot of older Australians. If O’Dwyer does something she will get rubbished just as much as if she does nothing. Surely anything to improve financial literacy of older Australians to keep the bastards honest must be a good thing.

    • 0
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      Some governments were born to take the slipper to the guts…….. just saying…

    • 0
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      Failed your comprehension test again, Old Man?

      Did you not read the sentence ”However, it seems once again, retirement income has been scantly covered.” Or were you not aware that older Australians typically rely on ”retirement income”.

  3. 0
    0

    “Gunna do” now has another step that comes before it, called “should do”

  4. 0
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    Some good strategies but how is it been marketed. If you want to make a real difference, you have to teach financial literacy in schools. Unfortunately many children do not have good role models when it comes to saving and budgeting

    • 0
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      And many will deliberately do the opposite to what their role model did because they resent that all their wants weren’t indulged due to budget constraints.

  5. 0
    0

    A solution for those who cry fouls when they lose money when taking advise from a financial advisor.
    However I feel these very same whingers wont take advantage of the scheme . Who will they blame then and how will they try and screw the banks for handouts

    • 0
      0

      You’d have to be either a totally ignorant fool or a bat-eyed LNP troll to call this thought-bubble a ”solution”! They will pay lip service to providing information in language that only the university educated can understand, or else totally unhelpful basic crap that anyone with even one brain cell knows already, and call it a ”solution”.

      I’ve seen it before. When meat prices skyrocketed, brainless politicians went on television telling everyone ”it’s okay, because all you have to do is buy cheaper cuts. The cheaper cuts and cook them longer and slower. If you choose stewing beef over rib steak, the cost increases won’t make beef unaffordable.” Yeah, right! And poor people weren’t already buying stewing beef? These morons didn’t even comprehend that poor people didn’t know what rib steak was.

      Then there’s the ”it’s only the cost of one cup of coffee” BS touted when the cost of some essential rises. The poor dunces in Canberra can’t comprehend that those hurt most by such a price rise DON’T BUY CUPS OF COFFEE. They make their own.

      We are talking about over-paid wealthy morons who are totally illiterate about the real world trying to figure out how to teach the real world things the over-paid wealthy morons don’t have to have a clue about anyway because they’ve never had to worry about it.

  6. 0
    0

    Why do we have a Treasurer, a Finance Minister and a Minister for Revenue and Financial Services?

    What do these people actually do for their money other than hold a title?

    How exactly do you go about training those who don’t know into knowing? Many people are simply not that numerate or literate, and no amount of training will make them so, especially a few boring evenings sitting in a class room to hear a lot of empty words.

    • 0
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      Yep – better to sit at home and whinge about banks and super than to try and gain a little knowledge
      Not to be a financial whiz kid but to learn to ask the right questions and perhaps get 2 or 3 different opinions
      After all you wouldn’t have brain surgery without seeking a second or third opinion
      Or would you ?

    • 0
      0

      My point is that there are some people who simply are not numerate or literate – it is not possible to train them into that kind of thinking and calculation….

      Again – that’s why we have regulators and regulations and oversight of financial transactions – to protect those with the inability to do these things and prevent their being exploited.

      That’s what a civilised society does… but since we’ve been over-run by the Mediterraneos…..

    • 0
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      Seems some people don’t comprehend the meaning of ”aptitude”. People need a level of aptitude before they can master a skill. You can expose someone to all the knowledge in the world and if they have no aptitude in that area, they won’t master it. There’s also motivation – which may well be closely related to aptitude. Try telling someone with an addiction to gambling that they can solve their financial worries by stopping their gambling. They KNOW that, of course, but they have no motivation to fix their finances that way. They need a solution that’s more acceptable to them.

  7. 0
    0

    So millionaires are going to teach the down-and-out how to negotiate a pay-day loan from a loan shark who sees nothing but desperation and a great opportunity to take advantage of that desperation, or lack of reasonable collateral and a huge risk lending with no security? Only the dumbest politician could even conceive such an nonsense idea, but no doubt they’ll spend millions that COULD have been used to cut the GST on power bills or build public housing printing books filled with dumb clichés and over-paying their over-educated idiot mates to run classes that nobody has the time or energy to attend because there’s no benefit to listening to an over-educated idiot who has no idea what life is like in the real world.

    I can see it now. Dim-wits telling basic wage earners that they need to pay a $2000 consultant fee for advice before signing a personal loan agreement to get a little money to keep the electricity on.

    I could nominate some great candidates for the teaching jobs. Like the bank manager who couldn’t understand that when a lease ended, the payments stopped and I had more net income to lease another machine. Or the one who wanted to repossess a half-built house because I owed $100,000 and would need another $50,000 to complete it and finalize a secured sale at $700,000 within 3 months. Goodness, I had no income to make repayments! How could he possibly extend the loan to more than 20% of the collateral for a whole 3 months? No. Far better to sell the half-built house for peanuts, recover the $100K, and deny me my income for the year it took to build!


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