Scams, Savings & Small Mercies

Bank Games

I wonder if anyone who occupies the rarified air of a bank’s boardroom ever asks the question: “Why do people pick on us?”

Here’s why.

HSBC was fined $35 million after the Federal Court found its failure to protect customers from scams was widespread and systematic.

Between January 2020 and August 2024, the bank’s customers lost $34.6 million because of the bank’s failings. So, do you think that after being rapped on the knuckles the bank’s next thought would be for its victimized customers? Maybe even return their money? Not a chance.

One customer, who lost nearly $50,000, was initially offered $300 compensation. It took 12 months and the intervention of the Australian Financial Complaints Authority before the bank offered $45,000 which was accepted. There are many ex-customers in the same boat.

The bank’s security system let the thieves in through the front door, then it locked out the unhappy customers.

Super Salesmen

I’ve answered a fair few cold calls from telemarketers over the years. Usually, they call just as I am about to tuck in, so conversations are always short and never enjoyable -from the caller’s point of view.

Recently, an army of commission-seeking telemarketers has targeted retirees in an effort to have them switch their hard-earned retirement savings from one super fund to another. The callers can be very persuasive. Twelve thousand Australians transferred their super to the Shield and First Guardian funds which have since collapsed, sending $1 billion in retirement savings down the drain. Many customers were lured by telemarketers.

Such has been the uproar, that the government has decided to introduce laws that require telemarketers who are promoting super funds to be licensed and regulated. How that will work exactly is still being decided, but hopefully the callers will have something to lose if their words and actions cause pain to others.

Computer Says No

If you want to know whether an algorithm is working, there’s a simple test: ask the person forced to live with its decision.

More than 1,000 older Australians would offer a resounding no if they were asked to pass judgement on the government’s aged care assessment algorithm.

The Integrated Assessment Tool determines eligibility and funding levels for the Support at Home program. An assessor gathers information about an older person’s physical, social and personal circumstances, then the algorithm determines the level of support. The assessor cannot override the result if it understates the person’s needs, which appears to happen often.

In its first five months more than 1,000 people have sought a departmental review, with 207 successfully receiving a reassessment. The government says the system provides consistency and predictability. Critics argue that the algorithm is simply “cruel”, and people who need help may never know how to challenge the decision in the first place.

Meanwhile, former aged care inspector general Ian Yates has described Support at Home as a public policy failure, pointing to long waits for packages, reassessments and reviews. He says tens of thousands of people are waiting and the government is no longer publishing the numbers and waiting times.

An Attack of Common Sense

Sometimes a government backflip isn’t a sign of weakness. Sometimes it’s the sound of common sense finally clearing its throat.

The government has abandoned its plan to merge the Commonwealth Home Support Program into Support at Home. CHSP will remain a separate program, with funding extended through to 2029. The decision follows strong opposition from providers and a Senate inquiry that received more than 130 submissions and recommended against the merger.

CHSP provides entry-level services designed to help older Australians remain safely at home. Around 1,300 providers deliver these services including local governments, not-for-profits and community groups.

After all the talk of integration, transition and reform, the eventual answer was refreshingly uncomplicated: leave the thing that works alone. Not everything needs fixing simply because somebody has drawn a new organisational chart.

Going Up

Every now and then the financial machinery produces a pleasant noise.

From September 20, the maximum Age Pension rises by $36.80 a fortnight for singles to $1,237.70, while the combined rate for couples rises by $55.60 to $1,866. More than 5.3 million Australians receiving social security payments will receive increases through the latest round of indexation.

Then comes the fine print. Deeming rates will also rise from 1.25 per cent to 1.75 per cent for financial assets up to $66,800 for singles and $110,600 for couples. Above those thresholds, the deeming rate rises to 3.75 per cent.

So, yes, the pension is going up. And yes, the government has remembered your savings exist.

Going Down

There are two kinds of bank announcement: the ones they make sure you hear about, and the ones you discover by checking your statement.

CommBank has cut its 12-month special term deposit rate from 5.25 per cent to 5.15 per cent, while ANZ has reduced its best 12-month rate to 5.25 per cent. Smaller banks are offering rates up to 5.40 per cent for 12 months, with some paying even more over shorter terms.

The cuts suggest the big banks expect interest rates to fall rather than rise. The four major banks are forecasting cuts during 2027, although they disagree on exactly when the first one will arrive. That’s the joy of economic forecasting: you can be confidently wrong at a time of your choosing.

Small Victories

Coffee Cutback

Nearly three in ten Australians surveyed by Canstar have abandoned takeaway coffee for home brew, with the average cafe cup now costing $5.90. The humble kettle is having a moment.

Supermarket Safari

Eighty-one per cent of shoppers surveyed by Canstar have changed their grocery habits to save money, while 65 per cent now visit at least two supermarkets. Apparently, the weekly shop has become a competitive sport.

Health Hunt

Finder says 83 per cent of Australians with private health insurance stay with the same insurer long-term, despite comparable policies typically offering potential savings of $200–$400 a year. Loyalty remains admirable. So does checking the bill.

The Final Word

If there is a lesson to be learned from the shenanigans of scammers, telemarketers and algorithms, it’s that you should keep your money close and your scepticism closer. Never let anyone convince you that the fine print is merely decorative.

Someone Had to Say It!