Is the New Reality a Cashless World? This article looks at global payment patterns and the advantages and disadvantages of a cashless economy. It also offers case studies on India and Sweden. Cashless Transaction A cashless transaction is a transaction that takes place between two persons, businesses, or organizations via an automated or online process. A digital transaction is a cashless transaction in which the transaction is completed without paper. Digital transactions include buying things from e-commerce websites, executing business contracts online, and even buying movie tickets through your smartphone app. Such operations are more precise, faster, convenient, and less complicated. Many people refuse to acknowledge that there are advantages to a cashless transaction because they cannot traverse digital gadgets or prefer to deal with cash. Continue reading to learn about various cashless transactions that make day-to-day trading easier. Global examples of a cashless world In 2014, global non-cash transaction volumes reached 387 billion, an increase of 8.9% from the previous year. The growth in developing countries was nearly 17 percent, compared to 6 percent in established markets, which accounted for most of the increase. Mobile card readers, electronic networks for processing high volumes of credit and debit transactions, and digitized private currencies have all posed a threat to cash's dominance in recent years. Since 2010, cards, particularly debit cards, have been the fastest-growing payment tool among established alternatives to money. In the meantime, check usage has been steadily declining for the past thirteen years. Although currency will continue to be used for the foreseeable future, several countries are moving toward a cashless society. Sweden has long been a proponent of cashless transactions, and the EU has placed limits on large cash purchases. China ranked fourth in terms of non-cash transaction volume in 2014, trailing only the United States, Eurozone, and Australia. According to financial analysts, eCommerce in China will be worth more than eCommerce in the United States, Japan, Germany, and France combined by 2020. Pros and cons of a cashless world In these cashless times, everyone must understand what a cashless economy is and its advantages and disadvantages. We'll go over the benefits and drawbacks of this cashless economy in this essay. Pros Reduced Crime Rates Carrying cash makes you a high-value target for thieves. It will be impossible to track your money or show that it is yours once it has been removed from your wallet and placed in a criminal's wallet. According to a study conducted by American and German academics, crime in Missouri decreased by 9.8% after They replaced cash welfare benefits with Electronic Benefit Transfer (EBT) cards. Paper Trails Created Automatically Similarly, in a cashless society, financial crime should disappear. Cash is commonly used in unlawful activities, such as illegal gambling or drug trafficking, because there is no transaction record, and the money is easier to launder. Money laundering becomes far more complicated if the source of funds is always known. When every payment you get is recorded, it's more difficult to hide income and evade taxes. Payments Across Borders Have Been Made Much Easier You may need to exchange your dollars for local currencies while traveling. If you're traveling in a country that supports cashless transactions, you won't have to worry about how much local money you'll need. Instead, your mobile device takes care of everything. Cons Privacy is sacrificed in digital transactions. Electronic payments do not have the same level of privacy as cash payments. You can spend and receive money anonymously with cash. You may have nothing to conceal or trust the organizations handling your data. The more information floating around online, the more likely it falls into the wrong hands. Hackers Pose a Threat to Cashless Transactions Hackers are the electronic equivalents of bank robbers and muggers. You're more vulnerable to hackers in a cashless culture. If you are targeted, and your account is emptied, you may not have any other options for spending money. Even if you're covered by federal law, restoring your financial position after a breach will be inconvenient. Technology may limit your ability to access funds. Glitches, outages, and unintentional errors can all cause problems, leaving you unable to buy what you need when you need it. Similarly, when systems fail, merchants are unable to take payments. In some ways, even something as basic as a dead phone battery might leave you "penniless." Security fears in a digital transaction world System safety Only an authorized person can access a program or software, making it secure. To maintain a system secure, the developer, the moderator during system support, and the user during system use should all be held accountable. People should use firewalls, encryption, biometrics, password protection mechanisms, and other countermeasures to defend a system from various attacks. Network safety A network is only secure if a network administrator manages it. The types of network security include firewalls, e-mail security, malware protection, network segmentation, access control, application security, behavioral analytics, data loss, and intrusion prevention, Virtual Private Network (VPN), and online security. Policies and practices that prevent and monitor unauthorized access, misuse, modification, or denial of a network and network-accessible resources should be enacted to preserve network security. Provisions of the law Another option to secure digital transactions is to draft and enforce strong digital transaction legislation, laws, rules, and regulations at the national and international levels. People are constantly dealing with the problems of contested transactions because no specific regulations or acts address digital transactions with non-financial institutions. Service providers and consumers could be held liable for safe digital transactions under legal laws. Anti-money laundering and counter-financial-terrorism legislation are also required. Financial and digital literacy Financial literacy refers to the capacity to comprehend and implement a variety of financial abilities, such as personal financial management, saving and investing. Digital literacy, on the other hand, refers to a person's capacity to access, assess, and generate understandable information using writing and other media on a variety of digital platforms. Along with sufficient financial knowledge, users should understand how to use a computer or mobile applications and networks to conduct secure digital transactions. As a result, service providers should simultaneously implement financial and digital literacy initiatives to educate their clients about secure digital transactions. Conclusion Certain firms would gain the most from a cashless society. While some people prefer debit and credit cards to cash because they are more convenient, businesses benefit from processing fees when customers use their apps and services to send and receive payments. Because handling currency is costly, companies would save money, and transactions will be easier to track if they switch to cashless payments.

Introduction How much sleep do you get? Most of us know that eight hours of sleep is recommended, but it might seem complicated with work, family, and social obligations often taking up more than 16 hours of the day. Maybe you've become accustomed to late flights, time zone shifts, and the occasional all-nighter. Perhaps you believe you can get by on four or five hours of sleep per night. Habits of deprived sleep habits of leaders The amount of sleep a leader receives and the "sleep culture" they instill in their subordinates are critical but frequently overlooked aspects of an organization's fabric. Sleep culture includes practices like responding to emails late at night or praising employees who do so. Because subordinates look to leaders for workplace cues, upper management's poor sleep habits are likely to rub off on the team. One study found that when supervisors had a lousy night's sleep, they were more likely to be abusive the next day, resulting in lower engagement and morale among subordinates. You still don't believe us? Here's evidence of the negative consequences of a lack of sleep on the leadership mentioned above attributes (emotional intelligence, passion and charisma, and practical problem-solving capabilities). Emotional Intelligence One study looked into how sleep affects the quality of the leader-follower relationship. During the first three months of working together, researchers tracked the sleeping habits of 40 managers and their 120 direct reports. According to the findings, chronically sleep-deprived leaders had worse connections with their employees and displayed more antagonistic attitudes, but the leaders were entirely ignorant of this dynamic. Charisma & Passion: We've all experienced being unmotivated, distracted, and low on energy after a night of poor sleep. The bad news is that those who are chronically sleep-deprived (get less than 7-9 hours of sleep regularly) may be experiencing these symptoms in varying degrees without even realizing it. "That doesn't apply to me," you could be thinking. I can always perform well with only a few hours of sleep." We're sorry to break it to you, but only 1-3 percent of the population falls into the "sleepless elite" category. You're most likely not one of them. Problem-Solving: A leader's capacity to make effective decisions is harmed by lack of sleep. In one study that looked at how people made financial decisions, one group was assigned 5 hours of sleep per night, while the other was given 8. One group was given 5 hours of sleep per night, while the other was given 8. Each group had the option of accepting a guaranteed amount of money or taking a chance on receiving a more significant amount of money with the risk of receiving nothing at all. The sleep-deprived group gradually changed toward the riskier option over a week, and strangely, they could not notice this movement in themselves. Five reasons why sleep is essential for businesses and organizations Getting enough sleep might save the United Kingdom up to £36 billion every year. Professor Culpin's research reveals that addressing sleep deficiency is critical to boosting productivity, employee wellbeing, and effectiveness, and he urges businesses to prioritize it. Professor Culpin shows how large percentages of working adults have never been so sleep-deprived in her book. Nearly half of the adult population in the United Kingdom and the United States does not get enough sleep. It negatively influences employees' ability to focus, make sound decisions, form relationships, and impact their health. Memory More sleep improves memory performance. Memory is essential for organizational success—such as remembering to arrive on time for meetings, recalling crucial sales data, or meeting a deadline—and an individual's fundamental identity. Decision-making Even one night of complete sleep deprivation can significantly impact one's ability to make appropriate decisions. Sleep-deprived people are more likely to get distracted by trivial matters, lose track of what has been said, and become distrustful. Creativity Tired minds produce tired thoughts. All parts of the creative process benefit from a good night's sleep, quantity, and quality. Health Even over a few nights, small changes in sleep duration or efficiency can cause health issues like elevated blood pressure, hunger regulation imbalances, and infection susceptibility. Mood One of the most common side effects of short-term and long-term sleep issues is a bad mood. Professor Culpin's recent research found that the most commonly stated result of lack of sleep was "irritability," followed by "feeling more anxious" and a desire to be "left alone." Alternatives organizations adopt healthy sleeping habits and how business leaders can partake in that. Encouraging and enabling healthy sleep are two surprisingly easy components of sleep leadership. Leaders who overtly emphasize the significance of sleep and implicitly emphasize the value of sleep by asking staff how they sleep are "encouraging." We contend that seeing these leadership actions causes employees to prioritize getting enough sleep. "Enabling" means taking concrete efforts to make healthy sleep more accessible, such as altering an employee's schedule or instituting a rule prohibiting late-night emailing. We contend that such behaviors create situations directly conducive to better sleep. Employers are interested in helping their employees understand how to achieve better sleep, given the toll bad sleep habits take on workers and the subsequent impact on productivity and healthcare expenditures. Here are five steps that businesses may do to help employees sleep better: Define your limits: The fact that people can work at any time and from any location does not mean they should. Researchers from Harvard Business School collaborated with teams from the Boston Consulting Group a decade ago to investigate what occurs when employees are compelled to take frequent vacations. 'After only five months, consultants on teams with scheduled time off viewed their work environments more favorably – on every dimension — than counterparts on non-experiment teams,' according to the findings. Set a positive example: Christopher M. Barnes and his colleague Gretchen Spreitzer, Ph.D., wrote in the MIT Sloan Management Review about how examples can operate adversely and positively: 'If executives send messages late at night, employees will feel pressured to check their email. Late at night.' To mitigate the issue, one executive continued to write emails late at night but scheduled them to be sent during regular business hours the following day.' Promote health benefits that address the underlying causes: Negative lifestyle factors, as previously mentioned, might have an impact on sleep quality. Smoking cessation programs, workplace fitness facilities, and wellness programs that encourage employees to get in shape can help workers improve their sleep quality and general quality of life. Conclusion Sleep issues, such as sleep apnea, could be a continuous lack of sleep. Multiple short pauses in breathing occur throughout the night with this situation. This poor quality rest can lead to various issues, including low energy and increased irritation, which can negatively impact your capacity to perform as a leader. Sleep apnea patients are also at a higher risk of significant health problems such as stroke, diabetes, and mood disorders such as anxiety and depression.

Introduction A sedentary lifestyle can be harmful to one's health. You have a better chance of living a healthy life if you spend less time sitting or lying down during the day. You have a lower chance of early death if you stand or move around during the day than sitting at a desk. You're more likely to be overweight, acquire type 2 diabetes or heart disease, and suffer from depression and anxiety if you lead a sedentary lifestyle. How Does Sitting affect the brain and productivity at the workplace? The importance of sustaining blood flow to the brain cannot be overstated. The brain requires enough oxygen to function correctly, and cutting off this supply can be catastrophic. A deadly stroke can occur when blood flow in the brain is disrupted, even in a small area. But, as many office workers do, can sitting in one posture for long periods truly impede blood flow to the brain? After all, our hearts continue to beat even while we're seated, don't they? The study focused on 15 people who worked desk jobs. They visited John Moores' research lab. They were required to sit at their desks for four hours, only getting up to use the restroom. They were instructed to get up and walk for two minutes on a treadmill during the second visit. They were told to sit at the desk for two hours and then walk for eight minutes on the last day. The individuals' brain blood flow was assessed using specialized headbands with ultrasound probes that tracked blood flow through one of the primary vessels delivering blood to the brain, the middle cerebral arteries. Blood flow decreased after the subjects were sedentary for four hours, unsurprising. Blood flow to the brain returned to normal when participants stood up and moved about. What are the health risks of prolonged sitting? That makes your heart and cardiovascular system perform more efficiently. When you're standing up, your bowels work more efficiently. People who are bedridden in hospitals frequently have bowel movements. Physical activity boosts your general vitality and endurance. Legs and gluteals: Sitting for long periods can cause the significant leg and gluteal muscles to atrophy and waste away. These huge muscles assist you in walking and stabilizing yourself. When these muscles are weak, you are more likely to get injuries from falls and strains when exercising. Weight: The digestion of the fats and sugars you consume is aided by moving your muscles. Digestion is less effective when you spend a lot of time sitting, so you retain those fats and sugars as fat in your body. Hips and back: Your hips and back and your legs and gluteals will not be able to support you as well if you sit for long periods. As you sit, your hip flexor muscles shorten, potentially causing problems with your posture. Anxiety and sadness: We don't know as much about the links between sitting and mental health as we do about the connections between sitting and physical health, but we know that people who sit a lot have a higher risk of anxiety and depression. Cancer: According to new research, sitting increases your risk of acquiring lung, uterine, and colon cancers. The reason for this is unknown at this time. Coronary artery disease: Long periods of sitting have been linked to heart disease. According to one study, those who watch more than 23 hours of television each week have a 64% higher chance of dying from cardiovascular disease than men who watch only 11 hours per week. Diabetes: According to studies, even five days of lying in bed might raise insulin resistance in the body (this will cause your blood sugars to increase above what is healthy). According to research, people who spend more time sitting have a 112 percent higher risk of diabetes. Varicose veins: Long periods of sitting might cause varicose or spider veins (a smaller version of varicose veins). This is because sitting causes blood to collect in the legs. Thrombosis of the deep veins: Sitting for an extended period on a long aircraft or car trip can develop deep vein thrombosis (DVT). A blood clot in the veins of your leg is known as a deep vein thrombosis. Ways to undo risks of prolonged sitting: Sedentary lifestyles are growing more prevalent in modern society. We spend a lot of time sitting, whether at work for long periods, traveling, watching television, or eating. However, you are mistaken if you believe that your hour-long intense workout at the gym or your morning jog would compensate for your lengthy sitting. According to a recent study published in the journal Health Psychology Review, focusing on physical activity and raising exercise levels did not significantly reduce extended sitting. The goal should be to reduce the amount of time spent sitting. If you ask health professionals, they will tell you that sitting for long periods is just as harmful as smoking. It has now become a significant public health issue. According to the World Health Organization, insufficient physical activity is the fourth most important cause of death worldwide. So, what are the options? Get up and move: If you find yourself hooked to your workplace chair for long periods, it's time to break the habit. Mickey Mehta, a fitness expert, says, "Every two hours, it is critical to get up from your seat. Stand up, take a few steps, take a deep breath, and stretch backward until your toes are touching." Also, every 45 minutes, get out of your chair and try working while standing. To help with this, some Indian companies have sit-stand workstations during work. Stretch a little more: Did you know that you can stretch at your desk? When breathing in, try retaining your stomach muscles for a few seconds, then releasing them when breathing out. Tilt your head back and forth, left and right. Next, sit up straight in your chair and straighten your left leg in front of you. Change the portion after a few seconds of holding the position. Try front kicks and sidekicks if you don't feel too self-conscious. Relief for the eyes: Working on a laptop or desktop for long periods negatively influences your eyes. So, every 45 minutes, take a break and gaze at a distant object for 10-15 seconds. Your eyes will be less stressed as a result of this. Teamwork: Encourage your coworkers to join you in stretching or going for a walk. Record your sitting time on a turn-by-turn basis and set targets for reducing your sitting time. When used alone, these methods can be ineffective, but they can be highly effective when used in a group. Conclusion You consume less energy when you sit than when you stand or move. According to research, long hours of sitting have been related to a variety of health problems. Obesity is one of them, as is metabolic syndrome. It is a group of disorders that includes high blood pressure, high blood sugar, extra body fat around the waist, and abnormal cholesterol levels. Too much sitting in general and sitting for long periods raises the risk of dying from cardiovascular disease and cancer.

According to a prominent government economist, sluggish wage and productivity growth are exacerbated by Australian businesses falling behind worldwide rivals in adopting new technologies. According to Treasury assistant secretary Meghan Quinn, Australia's wage and productivity problems are also due to a reduction in the number of new companies coming up and a lack of worker job switching. In industrialized economies, higher labor productivity growth is crucial in rising living standards. This is especially true in the eurozone, given the predicted significant increase in the workforce's age. According to recent research, while demographic effects have had only a minor impact on euro area productivity growth thus far, rates of workforce aging are expected to rise in the coming decades, resulting in the loss of roughly one-quarter of projected productivity growth over the 2014-35 horizon. Developed countries/fast-growing economies facing decreased productivity Productivity growth has traditionally been a significant predictor of a society's long-term prospects for wealth and growth. Changing trends in labor productivity growth have been factors in stabilizing or destabilizing distributional conflicts between capital and labor: as long as capitalism produced higher incomes for the majority of working people around the world – as it did in the decades following WWII – the legitimacy of income and wealth inequality was a less pressing social question due to the reduced distributional conflict between capital and labor. For a long time, capitalism appeared to deliver on its promise of making everyone better off. One of the key drivers of rising living standards in Australia has been productivity development. The greater the material quality of living of a society, the more commodities and services it can generate with a given set of inputs. We've decoded the most recent ABS productivity data so you can learn about and keep up with the patterns and innovations that have shaped Australia's recent productivity performance. In the third quarter, productivity in the United States plummeted to its lowest level since 1981, showing a dramatic slowdown in economic growth and increased hours worked. According to Labor Department numbers released on Thursday, nonfarm company employee output per hour fell by 5% annually in the third quarter. This compares to a 2.4 percent growth in the second quarter and a 3.1 percent fall predicted by economists in a Bloomberg poll. The pace of productivity increase can be pretty erratic. Business as the way to lift productivity & give recommendations to improve falling productivity Regardless of their industry, business leaders are always looking for methods to streamline their processes and work smarter, not harder. After all, individuals who accomplish more with less are more likely to succeed. Because the cost of labor is often a significant expenditure for many organizations, worker productivity is essential and substantially impacts a company's capacity to compete. As a result, it's critical to build a climate that inspires employees while also providing them with the tools they need to succeed – such as technology that minimizes wasted time and money – without sacrificing quality. Encourage employees to work from home. Maintaining a strict schedule can hurt employee morale and productivity. On the other hand, flexibility can help create trust and make employees feel appreciated. So, what does it mean to work flexibly? Flexible working is a manner that accommodates an employee's demands, such as allowing employees to work from home or having a relaxed start and stop timings. They enable employees to avoid commuting and have more influence over their personal lives. With the government's 'work from home' advice, many employees experienced the freedom of flexible working for the first time after the COVID-19 outbreak. Enhance staff engagement tactics Gallup research demonstrates that low employee engagement is a recurring problem for businesses of all kinds around the world: the study revealed that only 15% of full-time employees are 'engaged' at work, described as "very invested in and excited about their work and workplace" by the research firm. Employees are more likely to be engaged if they find their work personally rewarding and feel like they are being listened to on a human level. Although financial compensation for hard work is likely to encourage more of the same and help with increasing productivity, employees are more likely to be engaged if they find their work personally rewarding and feel like they are being listened to on a human level. Create a training plan Millennials consider training and development opportunities the third most appealing aspect of a potential employer. Training can reduce the frequency of errors and hence the need to repeat activities, but it can also make employees feel more appreciated by boosting their knowledge and skills. Showing your dedication to employee advancement as a firm will likely instill a sense of loyalty and inspire hard work in your employees, especially for middle managers, who are responsible for expressing the company's goal and organizing operations. Innovation state at the decreased productivity era According to the commission, economic growth per person has slowed to its worst rate in 60 years, both in terms of GDP per capita and income per person over the last decade. According to Commission Chairman Michael Brennan, Australians' average salaries would be a tenth, or $11,500, higher if the economy had maintained its pre-2012 growth over the past ten years. Even if the coronavirus-affected year of the previous decade is omitted from the commission's analysis, the last nine years have been the worst since the late 1950s. According to Mr. Brennan, global productivity growth has slowed in recent years. "The result has been a stagnation in the growth of living standards," he remarked. "Given that Australia's poor economic performance in the 1970s was a significant basis for the 1980s and 1990s economic reforms, the reality that the last decade of growth has been much worse demands additional consideration." During the 1960s, the average annual per capita income increased by 3%. In the 1970s, it plummeted to 1.2 percent before rising to 2.4 percent just before the global financial crisis. It has dropped to less than 1% in the last decade. According to the commission's findings, the slowdown in capital investment following the end of the mining construction boom in 2013 was primarily responsible for the drop in productivity growth across Australia. Technology creating a productivity discrepancy between companies Technology has the potential to either stifle or boost production. The difficulty lies in putting it into practice in a way that will benefit your team's performance. ITS has assisted hundreds of organizations in setting up and managing their technology so they can focus on their objectives. Learn how to get the most out of your technology and download our free eBook. Significant economic and productivity gap in China between top cities and lagging ones China has risen to the status of an upper-middle-income country. Going forward, it will be critical that poverty alleviation initiatives focus on the vulnerabilities faced by the significant number of individuals still considered poor by middle-income country criteria, including those residing in cities. China's rapid growth, fueled by resource-intensive manufacturing, exports, and low-wage labor, has reached its limitations, resulting in economic, social, and environmental imbalances. To address these inequities, the economy's structure must transition from low-end manufacturing to higher-end manufacturing and services and from investment to consumption. In the face of structural restrictions such as decreased labor force growth, reduced returns on investment, and slowing productivity, growth has slowed in recent years. The task now is to discover new growth drivers while also dealing with the social and environmental consequences of China's prior development path.  China's rapid economic expansion has outpaced institutional development. To further support the market system, the state's role must evolve and focus on delivering stable market expectations and a transparent and fair business climate and strengthening the regulatory system and the rule of law.

Introduction Lending money to a family member or acquaintance is a risky business that can go wrong quickly. You risk losing your money and jeopardizing a vital relationship. "Neither a borrowing nor a lender is," Polonius advises his son Laertes in Shakespeare's "Hamlet": "Loan oft loses both itself and friend." According to a recent poll by Bankrate.com, over half of respondents who lent money to friends or relatives experienced a poor outcome, 37 percent lost money, and 21 percent had a broken connection with the borrower. Cosigning a loan might result in both personal and financial difficulties. In the Bankrate study, over half (45%) of those who did this said it had a negative impact: Twenty-one percent said Lending money had harmed their relationship. As a result, 20% of respondents reported Lender abused their credit score. In the process, 18% said they lost money. Australian legislation for the family loan Gifts of money are recognized as part of the pool of assets in family law property procedures, meaning it could lose a considerable portion of your parents' hard-earned money! It secures their parents' money, but protects the money if the initial property buyer becomes involved in family law processes. If you have a loan agreement and clear proof of loan installments, They should repay the debt before distributing assets. If you're a lender, you can protect your interest in a property acquired due to a loan agreement by placing a mortgage or caveat on the borrower's property. A loan agreement assures that the money is not treated as a gift by the court and is treated as a debt. In that manner, an ex-partner doesn't end up with a substantial chunk of the money that They loaned initially to assist the buyer in purchasing their first home (and defeating the purpose of the loan in the first place). Step-by-step guide to going for a formal loan procedure with the family Only lending money to people you can trust If you're lending money with the hope of receiving it back, it's critical to be informed about who you lend to. Nearly a third of borrowers and lenders in the Lending Tree survey, for example, cited adverse outcomes such as resentment and bruised sentiments. Limiting loans to friends or family members, you trust to pay back what they owe will save you money and time in the long run. Loans Should Be Limited to What You Can Afford Consider the money as a gift when considering how much to lend to someone. Making a substantial loan to assist someone is wrong if it strains your resources. How much money could you lose before it hurts your finances? That's not to say you're assuming you won't get reimbursed. It assists you in establishing realistic lending boundaries with friends and family, so you don't find yourself in need of a loan later. Putting It on Paper When making a loan to friends or family, having a paper trail can help you avoid misunderstandings. Drawing up a loan contract that you and the borrower agree to and sign clarifies your responsibilities and provides legal grounds for action if you need to sue them later to recover your funds. It should include the following items in your loan contract at the very least: ● Names of you and the borrower ● The date on which the loan was approved ● The total amount of money lent ● A minimum monthly payment is required. ● The due date for payment ● If you're charging interest, the interest rate ● The ramifications of defaulting on a loan New guidelines and implications of ATO (Australian Taxation Office) regarding SMSF (Self-managed super funds) If you require assistance as a trustee or professional of a self-managed super fund (SMSF), we provide various services. Please contact us via our Contact page if you have any general questions that are not related to any of the situations listed here. You can also use our online peer-to-peer forum, ATO Community External Link, to discuss your SMSF and general super topics with other trustees and professionals in the industry. Service for SMSF early engagement and voluntary disclosure Our SMSF early engagement and voluntary disclosure service are available to SMSF trustees and professionals. This service enables you to contact us early in case of uncorrected violations. Complete the SMSF regulatory violation disclosure form (PDF, 305KB). This link will allow you to download a file or submit an application. Interest Rate As of August 2020, the average APR on a 24-month unsecured personal loan in the United States was 9.34 percent. Depending on the lender and your credit score, the rate you pay can range from 6% to 36 percent. 3 The average annual percentage rate on a 48-month secured new car loan is 4.98 percent. Conclusion There's no assurance that a family loan won't result in disappointment or disagreement, but it won't stop us from assisting those we care about. If you agree to lend money to your family, the most significant thing you can do is make a plan. Set expectations, draft a contract, and make sure your spouse knows the loan's existence.

Introduction Household debt has risen dramatically in Australia and worldwide during the last 30 years. This is regularly recognized as a critical danger to financial and macroeconomic stability in Australia and other nations with relatively large household indebtedness. Concerns about household debt risks are frequently expressed in the press and studies from financial analysts and international organizations (such as the Bank for International Settlements and International Monetary Fund). The deep worldwide downturn caused by COVID-19 has heightened these fears. The enormity of the risk posed by current levels of household debt will become more evident once people worldwide endure a significant loss in income. Issue of over-indebtedness The ABS does so because the OECD does so in the data it collects on its members, the world's wealthy nations. The OECD agrees that "They chose the three-year criterion to imply that a household saving one-third of its annual income would repay its debt in about 12 years based on current interest rates." That sounds more like a prescription for tremendous comfort, Utopia, than a measure of danger — another arbitrary rule-of-thumb, like "we must spend 2% of GDP on defense" or "Australian government spending should not exceed 25% of GDP." The ABS's income metric is "household disposable income," which is the household's income after taxes, Medicare levies, and surcharges have been removed. It's such a simple definition that it doesn't stand up to scrutiny. The debt-to-income ratio is simply misleading when viewed in isolation. In round numbers, if you have a household disposable income of $100,000 and debt three times that amount – $300,000 – and you're paying 5% interest (more than you should for a home loan), it'll cost you about $15,000 per year, or about $300 per week out of a nearly $2000 weekly income. That does not strike me as being "over-indebted." Facts and states of Australian households and their saving behavior over the years Australians have the second-largest household indebtedness in the world. We're aware of it, we're concerned about it, and there's mounting evidence that it's affecting our way of life. With household debt hovering above 120 percent of GDP — or all the country produces in a year — Australia is second only to Switzerland in terms of household debt, and we're not far behind. It wasn't always this way, with Australia's debt burden nearly tripling in the 28 years since its last recession in the early 1990s. And it appears that Australians have taken notice. Ninety percent of the approximately 55,000 people who took part in the ABC's Australia Talks National Survey said household debt is a national concern. On a personal level, 37% of millennials are having trouble paying off their bills, with nearly half stating that debt is a concern for them. So, where does all this borrowed cash end up? Professor Roger Wilkins of Melbourne University serves as the deputy director of HILDA, Australia's Household Income and Labor Dynamics Survey. It's similar to Australia Talks, which interviews 17,000 Australians each year about their lives and money, but it tracks the same families over time to see how their circumstances have evolved. Professor Wilkins claims that since HILDA's inception in 2001, house debt has more than doubled in real terms. Government failing to provide incentives for saving and impact The benefits and drawbacks of various stimuli can be evaluated using four criteria: efficacy in driving investment, revenue impact, economic efficiency, and tax administration impact. Low overall tax rates, preferential tax rates for specific assets, tax holidays, capital recovery allowances, investment tax credits, dividend treatment, excess deductions for designated expenses, special export incentives, reduced import duties on capital and raw materials, and protective tariffs are all examples of common incentives. The usefulness and impact of any instrument will be determined by local circumstances, investment characteristics, and other tax code factors. Because each device has advantages and disadvantages, ranking them necessitates policy judgments and technical study. Nonetheless, They can draw certain conclusions regarding the respective merits. Of the many tax incentives available, Even a zero-tax regime, for example, will not attract much investment if the investment climate has severe flaws that make ventures inherently unviable. As a result, concern about the design of tax incentives should not deflect focus away from other policies and programs that are needed to boost investor returns and minimize risk. Younger people are not used to saving. Millennials, born between 1981 and 1996, are now entering their working years. On the other hand, Millennials are frequently regarded as the generation that has hard time-saving money. According to Luno and Dahlia Research, 69 percent of the 7.000 millennials do not save daily! Always on the lookout for the Best New Things The first reason millennials are noted for rarely saving money is that they are often bored and always want to follow the current trends. For example, the latest cellphones, typically produced annually by various brands, are constantly jam-packed with eager millennials waiting in line to purchase them. You should realize that the newest smartphone is not inexpensive! Impulse Purchases Cashback and discounts? Please, yes! This is the millennial generation's biggest flaw. They find it difficult to conserve money since they can't say no to a cheap offer. Coupons and cashback can help you save money. Salary Stabilization Do you believe your expenses continue to rise while your salary remains unchanged? You are not alone; many millennials are experiencing this phenomenon, which makes it much more difficult for them to save money. Simply cutting costs isn't always enough. Debts in the Mountains Millennials frequently use credit cards or loans to meet their primary needs and secondary and tertiary demands as a result of their excessive spending. The issue arises when you fail to pay this loan on time. Rising indebtedness concerning reduced saving trends It's no surprise that Australians are among the world's most indebted people. Economists are attempting to figure out why we're not rushing out to the stores and spending as much as we used to when It slashed interest rates. One explanation is offered in a recent research report by Reserve Bank economists. "This RBA research demonstrates that households with a higher level of debt, even if they have the same level of wealth overall, would have lower levels of spending," says Zac Gross, a Monash University economics lecturer. He used to work at the Reserve Bank. Dr. Gross claims that various studies published following the global financial crisis in the United States indicated that locations with more enormous family debts were hit worse by the Great Recession. Impacts on the household that are into over-indebtedness That's no consolation to the people who struggle to make ends meet daily in this genuinely fortunate country. Still, despite our best efforts to convince ourselves that times are tough and getting worse after more than a quarter-century of recession-free growth, most of us are wealthier, and fewer are desperately poor. Yes, real wages are stagnant, but income disparity isn't worsening. Wealth inequality is becoming a concern in Sydney and Melbourne. At the same time, first-home buyers in both areas are working extremely hard but can be addressed. What's more, do you know about the OECD countries with the highest gross household debt ratios? Denmark, the Netherlands, Norway, Australia, and Switzerland ranked first through fifth in the OECD's ranking based on 2015 data. They're the countries that are wealthy, stable, and powerful enough to service their debts — the locations where you'd consider yourself quite fortunate to dwell. But don't let any of it stop you from having a bad day.