Will Aussies back Holden's big punt?

The new Holden VF Calais. Source: Supplied

HOLDEN has opened the order books for the new Holden Commodore across Australia today ahead of its showroom debut next month - and punters can bet on its sales success.

As exclusively revealed by News Limited last weekend, the sharp new pricing rolls back the cost of a new Commodore by more than a decade.

The base model - now called Evoke - starts at $34,990 plus on-road costs, $5000 less than the outgoing Omega. The biggest savings are on the sports and luxury models, whose prices have been slashed by almost $10,000.
 
Holden is so confident about the new model it has confirmed it will increase Commodore production in the second half of this year.
 
The details on the best equipped and most technically-advanced Commodore ever made were released as online bookmaker Sportsbet opened up betting on whether Holden will stay inside the top three sellers this year.

 
Holden was knocked off the podium for the first time ever, by Nissan in February and Hyundai in March, but returned to third place year-to-date in April behind Toyota and Mazda.
 
Sportsbet is paying $1.50 for Holden to finish the year in second place, $2.50 to finish third, $6 for fourth, and $13 for fifth or lower.
 
For the true diehards, the bookie is offering $26 if Holden knocks off Toyota, market leader for the past 10 years in a row and which last month outsold second and third-place manufacturers combined.
 
"It appears unlikely that Holden will boot Toyota from the top spot, priced as a $26 long shot," says a Sportsbet statement.

But it adds that Holden is likely to recover later in the year with the arrival of the sharper priced VF Commodore, the Trax compact SUV and other models.
 
"Currently holding on to third position, Holden’s sales are expected to accelerate with an aggressive new pricing strategy and finish second in the ranks, priced as the $1.50 market favourite. With sizeable price cuts set to be introduced on new Holden models, the market suggests that prospective car buyers will stay loyal to the Aussie carmaker, and boost Holden’s ranking to second."
 
The new pricing reflects the actual transaction prices Commodores have been selling for over the past few years, but now everyone will get a fairer deal, not just those inclined to haggle.
 
The equipment list shows that every model - including all sedans, wagons and utes - will come with a rear view camera, front and rear sensors, self parking technology, and Pandora and Stitcher apps embedded into the sound system, making it the best equipped vehicle line-up ever produced in Australia.
 
Top models will also get a heads-up display which reflects the vehicle speed and other information into the driver’s line of sight, blind-zone warning, forward crash alert and a raft of other features.
 
Holden says it has been able to cut the cost of the new VF Commodore because it is cheaper to build. It uses more parts sourced from General Motors’ global suppliers (primarily the electronic “platform” which runs the car, and key components such as steering wheels, indicator and wiper stalks and other interior items).
 
In anticipation of new rules allowing the use of world-class ISOFIX child restraints in Australia, all Commodore sedans and wagons will come ready-fitted with the latch points (three across the back seat).
 
Meanwhile Holden has reached a new low when it comes to the Commodore’s fuel consumption. Every model uses less fuel than its predecessor.
 
The base model VF Commodore Evoke averages 8.3L/100km, which is 23 per cent less than the VE Commodore Omega’s 10.9L/100km of seven years ago -- and only 0.3 L/100km more than its four-cylinder Malibu mid-size sedan.
 
Other highlights: all automatic models can be started remotely, before you get into the car. It’s designed to warm the cabin in winter or cool it in summer.
 
Find out more at www.carsguide.com
 
This reporter is on Twitter: @JoshuaDowling

The new Holden VF Commodore Evoke.

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Aussies ditch their life insurance

Financial Services Council CEO John Brogden. Picture: James Croucher Source: National Features

THE number of Australians dumping their life insurance is at a decade high.

About one in five are failing to renew life insurance, taken out either as an extension on their default cover in their super fund or through individual policies, insurers say.

Financial Services Council chief executive John Brogden says the lapse rate is a worry for the nation, which has a chronic underinsurance problem.

"We are having high lapse rates, we are getting a higher level of non-renewals and it's at a 10-year high," he says.

"It's a concern that people aren't being covered and are dropping their cover."

Different types of personal insurance cover fall under the life insurance umbrella:

* Death cover pays a lump sum to your beneficiary if you die.

* Total permanent and disability insurance pays a lump sum if you are injured or disabled.

* Trauma insurance pays a lump sum if you are diagnosed with a specified life-threatening illness or injury.

* Income protection insurance covers you if you are sick or injured and cannot work.

Brogden says it's important Australians take time to look through their life insurance cover if they have any and determine whether it is enough.

"Believe me, $200,000 or $300,000 is not enough if you're 35 or 40," he says. "It's partly due to the cost of living.

"The more people who have insurance the less people who are on the welfare, it's a very simple formula."

Jim Minto, managing director at life insurer TAL, says "consumer affordability" and "price shopping" are to blame for the drop in cover.

"It's just the same as what is happening in retailing and general insurance; it's really shaking the life insurance industry because it never planned for it to be like this," he says.

"We are seeing people in tighter financial situations managing a budget that's tighter, tighter and tighter and they are more inclined to ask the questions, 'Do I need life insurance and is it too much?'"

The cost of life cover varies greatly, from a few hundred to thousands of dollars a year.

Mark Vilo, executive manager of insurer Asteron Life, also blames affordability for the high lapse rates.

"Regardless of whether life insurance is inside or outside of superannuation, 71 per cent of our business lapses is because of affordability issues," he says.

> PROTECT YOURSELF

If you died tomorrow, how would your loved ones cope financially? Work out the worst-case scenario and how those around you would survive financially.

* Would they be able to pay for expenses such as funeral costs, medical bills, taxes and debts?

* Before buying life insurance, check any cover you may have through your super fund, the amount of cover and if you can increase that level of cover if needed.

* Life insurance is a particularly important type of cover for people with children, debts (such as mortgages) and other hefty expenses (such as school fees or car loan repayments).

View the original article here

Belt tightening Aussies giving up the pies

Aussies are ditching meat pies as they try and save money. Picture: Brodie Campbell Source: adelaidenow

THE humble meat pie or sausage roll from the corner store has become the latest victim of cautious economic times.

Instead, we might treat ourselves to a chocolate bar as a "cheap and cheerful instant reward" to have with our home-made lunch.

Confectionary sales in convenience stores and petrol stations have climbed 19 per cent since 2010 while sales of baked goods have fallen nine per cent, according to an industry report by BIS Shrapnel.

"In these past two years we have seen a jump in chocolates and lollies which is very much a recessionary reaction," said head of BIS Foodservice Sissel Rosengren.

"It is because chocolates are a cheap way we can reward ourselves quickly.

"At the same time there has been the decline of the pie purchase at the convenience store because they can't compete with supermarkets and quick service restaurants."

Social researcher and statistician Charlie Nelson said "falling out of love with credit cards", unemployment prospects and losses sustained during the GFC had an impact on discretionary spending.

"A lot of these people are very, very determined to build their savings," he said.

"People are realising it's a couple of bucks a day but every year it's a few hundred bucks.

"People are feeling now that they have less money left over from meeting all their commitments than they did a year or two ago.

"You put all these things together, you don't like plastic any more, people are keen to save money, and concerns about unemployment, it's no wonder people are looking at ways to cut back on things."

Ms Rosengren said service station convenience stores had also grown, with their total market value almost tripling since 2010 helping squeeze out old-fashioned corner stores which are unable to compete with them, in addition to battling supermarkets and fast food outlets.

"The cost of living and the cost of food in this country has gone up astronomically since 2005," Ms Rosengren said. "It's a tough retail market out there and that is part of the reason behind the demise of the corner store."

Confectionery sales in the "route trade" market have grown 19 per cent since 2010 to $711 million with chocolate accounting for two-thirds of that at $457m.

Despite a 5 per cent drop in sales since 2010, drink sales still make up 59 per cent of the market worth $1.9 billion annually.
 

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Aussies fear 'working poor' future

One in two people polled by the ACTU fear a US economy-type future. Source: Supplied

ONE in two people are worried Australian workers could emulate America's working poor, according to an ACTU poll.

A February poll of 1000 people by the Australian Council of Trade Unions to be released today found people were extremely concerned the numbers of people stuck in low-paid insecure jobs were set to soar.

The issue is set to be debated at a summit today in Canberra, where Prime Minister Julia Gillard will speak.

Public hurls insults at Prime Minister Julia Gillard during question time

The survey follows Australian Bureau of Statistics research released just last month that showed Australia is in the grip of an underemployment epidemic, with 784,000 people struggling to find more hours to earn more pay.

About 55 per cent of people surveyed were very or extremely concerned about the growing numbers of an American-style "working poor'' in Australia and that their children would not have access to good jobs here when they grew up.

US economy still sluggish - Federal Reserve

Similar numbers were deeply worried about a rising inequality of incomes and the future of Australian manufacturing and "smart'' industries.

More than 40 per cent thought advances in technology would replace the need for human workers.

The federal government is cracking down on the 457 visa scheme for temporary overseas workers.

Women and older people were more likely to worry, as were people who had needed to sign up to welfare at some stage in their life.

It comes as the Federal Parliament examines a Greens bill that would allow long-term workers to apply to the Fair Work Commission to argue why their employer should move them from casual to permanent contracts.

The ACTU survey also tested perceptions of the $246-a-week New Start allowance.

ACTU says employers must modernise workforce

Younger people and those who had never received welfare were more likely to dub that amount "too generous'', compared to welfare recipients and older people, who said it was "not high enough''.

Iowa State Supreme Court in the US has ruled that a boss can sack a worker for being too attractive

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Aussies: Overworked and underwalked

MORE than half of all Aussies don't get enough exercise and women are the worst culprits, government figures show.

View the original article here

One in five Aussies struggle to find $1000

A total of 17 per cent of people would struggle to find $500 to $1000 to deal with an emergency. Picture: Luzio Grossi Source: news.com.au

ALMOST one in five Australians would struggle to come up with $1000 to deal with an emergency, while one in three people spend everything they earn.

A survey of almost 5000 Australians shows a deep divide exists between households that are financially prepared to cope with current and future expenses and those barely able to meet their everyday commitments.

It shows many Australians, including higher income earners, are unprepared for financial obstacles.

A total of 17 per cent of people surveyed would struggle to find $500 to $1000 to deal with an emergency, while 30 per cent were living from pay cheque to pay cheque.

More than 40 per cent of respondents said they were able to meet their monthly expenses, but a third admitted they were worried about their ability to do so.

Deanne Stewart, General Manager of BT, which financed the survey, says the results clearly show there are a large number of people struggling to cope financially day to day, and the problems are not always linked to the size of someone's pay packet.

"In many instances people are living in the hope that they will achieve their goals rather than planning for a fulfilling and secure future," Ms Stewart said.

"This has implications for their health and lifestyle, impacting on their levels of stress, and in the longer term influencing their enjoyment in the years after they finish work."

Surprisingly, 57 per cent of those surveyed had no regular savings plan.

This figure peaks among 45 to 54 year olds who are often nearing the height of their earning capacity.

It showed almost 40 per cent of people would not have enough savings to maintain their present lifestyle if they lost their income for three to six months.

A third of people worry about not being able to meet normal monthly living expenses and more than half can't save what they want to save.

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Aussies unaware of Big 4's reach

Most Australians are unaware of the reach of the big four banks. Source: News Limited

TWO in three Australians think there is not enough competition in the banking system, and they don't know the half of it.

When asked, Australians are alarmingly ignorant of the true reach of the big four bank's power.

Just 53 per cent of people are aware that Westpac owns St George, having taken it over in 2008, and that's the most informed we get.

An even slimmer 36 per cent know that BankWest is now owned by Commonwealth Bank.

Just 21 per cent are aware UBank is run by National Australia Bank, 14 per cent that RAMS is owned by Westpac and 12 per cent that Aussie Home Loans is one third owned, soon to be majority controlled, by Commonwealth Bank, pending regulatory approval.

Still, four in five Australians firmly believe the big four banks make excessive profits. And two in three want an inquiry to find out why.

The industry body representing credit unions and building societies, Abacus, will today launch a national campaign and website to lobby for an independent inquiry into the banking system.

The survey of 1000 Australians found 65 per cent think there is not enough competition in the Australian banking system.

When asked, people guessed the banks controlled around 70 per cent of all home loans. Figures released last week reveal the big banks are in fact writing 92 per cent of all new loans.

More than half of people, 54 per cent, feel big banks do not treat their customers fairly on home loan rates.

"Australians are angry about the dominance of the major banks,'' the chief executive of Abacus, Louise Petschler, said.

"The Balance Banking campaign will lobby for change to address the imbalance in banking, through a national debate and independent review of our banking system.''

Abacus will launch its website www.balancebanking.com.au today.

The Coalition has already vowed to hold an inquiry into the banking system if elected.

Who owns the smaller banks?

St George owned by Westpac since 2008
BankWest owned by Commonwealth Bank since 2008
UBank owned by National Australia Bank (founded by NAB in 2008)
RAMS owned by Westpac since 2008
Aussie Home Loans owned by Commonwealth Bank (intention to take majority stake announced in 2012)
Bank of Melbourne owned by Westpac since 1997
Bank SA owned by Westpac since 1997

View the original article here

Thousands of Aussies to lose up to $2000

Hayley White, 21, has at least five superannuation accounts. Picture: Peter Wallis Source: National Features

Money down the drain. Picture: Troy Snook Source: News Limited

HUNDREDS of thousands of idle superannuation accounts will be handed over to the Australian Taxation Office in the coming months if members don't take action to recover lost and unclaimed funds.

The ATO is likely to receive a massive windfall after recent changes were implemented allowing it to hold untouched super accounts with balances of up to $2000. Previously it could receive super accounts with balances of less than $200.

Superannuation fund providers have until May 31 to transfer these accounts across to the tax office.

Latest statistics show there are 3.4 million "lost" super accounts worth $16.8 billion and more than 2.8 million unclaimed super accounts totaling $887 million.

Lost super sits in funds and belongs to people who have usually changed their name, address or job and cannot be found by their fund.

Unclaimed super is when the member meets eligibility requirements to withdraw it but the super fund cannot contact them.

Members will lose insurance arrangements once their fund transfers their account balance to the ATO, but they will not have to pay any fees once they move across.

Sunsuper general manager of customer experience Teifi Whatley says Australians need to act now to retrieve their lost or unclaimed funds before their money is transferred.

"It is quite a significant amount of money that is going to be moved to the ATO," Whatley says. "There are a lot of super-fluous accounts floating around in the system ... every Australian has almost three super accounts."

Whatley says it is common for Australians to accumulate multiple super accounts as they change jobs, with many people failing to consolidate accounts.

An ATO spokesman says there are about 1.1 million accounts on the lost members register with balances of between $200 and $2000.

"Not all of these will be eligible for transfer as some may be receiving contributions and some will be reunited with their owner," he says.

The average balance of lost member accounts is $4940 and $317 for unclaimed super.

Australian Institute of Superannuation Trustees executive policy manager Tony Garcia says it is a simple process to track down your lost or unclaimed super.

"New enhancements to the SuperSeeker site following ATO consultation with the industry should make the process of finding super a lot easier," he says.

"The site is a lot more powerful and allows you to view and combine your current super accounts.

"You can find any lost super reported to the tax office and any super the ATO holds on your behalf, and transfer your lost super to the super account you want."

Customer service employee Hayley White, 21, has had many jobs and has left behind a trail of super accounts.

"I ended with a heap of super accounts and I don't really know what's in any of them," she says.

"I've got five accounts that I know of, there could be more out there."

White says her parents have encouraged her to roll all her accounts into one but she says she has put this off because she was not sure how to do it.

"I think it's one of those things you need a time to sit down and do it," she says.

White says she will look to consolidate her funds in the coming weeks.

WHAT DOES IT MEAN?

* If you have lost or inactive super accounts with less than $2000 in them, your money will be transferred to the ATO by the end of May.

* There is no formal opt-out. To to be excluded you need to contact each of your super funds.

* You could be classified as lost if your previous employer gave a super fund your wrong address.

* Getting your money back from the tax office requires a lot of time.

* You will lose any insurance arrangements you have with your fund.

* You will only be entitled to interest on the money the ATO holds on your behalf from July 1, and it's only at the rate of CPI, so you'll be disadvantaged if your superannuation fund's returns are above CPI.

Source: Sunsuper

Three steps to finding your super

Step one: All lost superannuation is reported to the ATO so first off you can go to Supertracker. It allows you to check your current super accounts that money has been paid into in the last two financial years, find lost super and find ATO-held super.

Step two:  Contact your previous employers to find out information about your former super fund. This will allow you to try to consolidate the funds with your current employer's super fund

Step three: If you think that your money may still be held by a specific superannuation fund rather than a holding fund then use the government's "Super Fund Lookup" search tool to locate the fund and give them a call.

View the original article here

Aussies unaware of Big 4's reach

Most Australians are unaware of the reach of the big four banks. Source: News Limited

TWO in three Australians think there is not enough competition in the banking system, and they don't know the half of it.

When asked, Australians are alarmingly ignorant of the true reach of the big four bank's power.

Just 53 per cent of people are aware that Westpac owns St George, having taken it over in 2008, and that's the most informed we get.

An even slimmer 36 per cent know that BankWest is now owned by Commonwealth Bank.

Just 21 per cent are aware UBank is run by National Australia Bank, 14 per cent that RAMS is owned by Westpac and 12 per cent that Aussie Home Loans is one third owned, soon to be majority controlled, by Commonwealth Bank, pending regulatory approval.

Still, four in five Australians firmly believe the big four banks make excessive profits. And two in three want an inquiry to find out why.

The industry body representing credit unions and building societies, Abacus, will today launch a national campaign and website to lobby for an independent inquiry into the banking system.

The survey of 1000 Australians found 65 per cent think there is not enough competition in the Australian banking system.

When asked, people guessed the banks controlled around 70 per cent of all home loans. Figures released last week reveal the big banks are in fact writing 92 per cent of all new loans.

More than half of people, 54 per cent, feel big banks do not treat their customers fairly on home loan rates.

"Australians are angry about the dominance of the major banks,'' the chief executive of Abacus, Louise Petschler, said.

"The Balance Banking campaign will lobby for change to address the imbalance in banking, through a national debate and independent review of our banking system.''

Abacus will launch its website www.balancebanking.com.au today.

The Coalition has already vowed to hold an inquiry into the banking system if elected.

Who owns the smaller banks?

St George owned by Westpac since 2008
BankWest owned by Commonwealth Bank since 2008
UBank owned by National Australia Bank (founded by NAB in 2008)
RAMS owned by Westpac since 2008
Aussie Home Loans owned by Commonwealth Bank (intention to take majority stake announced in 2012)
Bank of Melbourne owned by Westpac since 1997
Bank SA owned by Westpac since 1997

View the original article here

Aussies: Overworked and underwalked

MORE than half of all Aussies don't get enough exercise and women are the worst culprits, government figures show.

View the original article here