Australians are being urged to watch out for government impersonation scams with over $1.26 million lost from more than 7100 reports made to Scamwatch so far this year and in reality, losses are likely to be far greater.

There has been an increase in scams reported during tax time such as text messages claiming to be from myGov or from agencies claiming to help victims gain early access to their superannuation.

"Scammers are increasingly taking advantage of the financial difficulties and uncertainty generated from the COVID-19 pandemic to trick unsuspecting Australians," ACCC Deputy Chair Delia Rickard said.

"We are seeing two main types of scams impersonating government departments; fake government threats and phishing scams."

"Both of these scams can be quite convincing and can lead to significant financial losses or even identity theft."

In a fake government threat scam, victims receive a robocall pretending to be from a government department, such as the ATO or Department of Home Affairs.

The scammer will claim something illegal, such as tax fraud or money laundering, has been committed in the victim's name and they should dial 1 to speak to an operator.

The scammer then tries to scare people into handing over money and may threaten that they would be arrested if they refuse.

"Don't be pressured by a threatening caller and take your time to consider who you might be dealing with," Ms Rickard said.

"Government departments will never threaten you with immediate arrest or ask for payment by unusual methods such as gift cards, iTunes vouches or bank transfers."

In a phishing scam, victims will receive an email or text message claiming to be from a government department, such as Services Australia, requesting personal details to confirm their eligibility for a government payment or because the person may have been exposed to COVID-19.

The emails and texts will include a link and request personal details such as a tax file number, superannuation details or copies of identity documents.

"Don't click on any hyperlinks in texts or emails to reach a government website, always type the address into the browser yourself," Ms Rickard said.

"Do not respond to texts or emails as the scammer will escalate their attempts to get your money."

"If you're not sure whether a call is legitimate, hang up and call the relevant organisation directly by finding the details though an independent search," Ms Rickard said.

More information on scams is available on the Scamwatch website, including how to make a report and where to get help.

The ACCC also recommends that you report the scam to the government department that was impersonated.

Background

So far in 2020 (1 January-5 July) Scamwatch has received:

• 67 reports of scams involving impersonation of the Department of Health, or state Department of Health and Human Services, with losses over $8700
• 443 reports of scams involving Australian Federal Police impersonations with losses over $176,000
• 1,070 reports of scams involving Services Australia impersonations with losses over $94,000
• 1,638 reports of scams involving myGov impersonations with losses over $105,000
• 2,016 reports of scams involving Department of Home Affairs impersonations with losses over $99,000
• 2,389 reports of scams involving ATO impersonations with losses over $905,000.

Money and Life
(Financial Planning Association of Australia)

Superannuation is a handy way of saving for retirement, so that you'll have an income to live on once you're no longer working.

With Aussies living longer than ever before, you could be looking forward-to many happy years of retirement. Having a financial nest-egg to support you into old age is essential.

Australia's superannuation system is a highly regulated and efficient way of saving for your retirement. Your employer must pay a portion of your earnings into your superannuation fund, which invests them on your behalf.

Find out how to get the most out of your superannuation, the types of super funds and how much super you'll need to retire comfortably.

How much superannuation will I be paid?

In Australia, your employer is required by law to pay your super contributions once a quarter.

The current superannuation guarantee (SG) rate is 9.5%. So, your employer must pay a minimum of 9.5% of your ordinary time earnings (OTE) to a complying superannuation fund or retirement savings account.

The SG rate is due to rise to 10% on 1 July 2021, and continue to increase by 0.5% each year until it reaches 12% in July 2025.

Can I add to my super? 

Yes, you can! Making personal contributions to your superannuation is a great way to reach your retirement goals sooner.

One way to do this is through a salary sacrifice arrangement with your employer. This simply means that you pay an agreed amount from your pre-tax salary into your chosen superannuation fund with each pay.

It's a very tax-effective way to add to your super, as these contributions only attract tax at 15% (up to a certain level), which is generally less than your marginal tax rate.

Read more: Salary sacrifice: A lot less painful than it sounds

How much to contribute depends on several factors, including how long until you want to retire and your retirement goals. Speaking to a financial planner can help you evaluate the best options for you.

Superannuation co-contribution

You may also be eligible for contributions from the government to help you save for retirement. The super co-contribution and the low-income superannuation tax offset are both ways the government can add to your super. Find out more about government contributions on the ATO website.

How much super do I need to retire comfortably?

Research shows that many of us underestimate how much we'll need to live comfortably in retirement.

According to the MoneySmart website, how much you'll need depends on your big costs in retirement and the type of lifestyle you want to have. "If you own your own home, a rule of thumb is that you'll need two-thirds (67%) of your pre-retirement income to maintain the same standard of living."

The Association of Superannuation Funds of Australia (ASFA) estimates that single people will need just over $44,000 a year to be comfortable, while a couple will need just over $62,000 (excluding housing costs).

A 'comfortable' lifestyle is defined as one where you're able to take part in a range of leisure and recreational activities, while maintaining a good standard of living i.e. you can afford to purchase household goods, private health insurance, a reasonable car, clothes and domestic or occasional international travel.

Again, we recommend getting professional financial advice to help plan for your retirement and ensure you have enough super to retire comfortably. 

What are the different types of superannuation funds?

These days most people are able to choose their superannuation fund. You can also use the super fund nominated by your employer if you want to.

The majority of superannuation funds can be classified into one of these categories:

1. Industry super funds

Originally developed for employees of certain industries, many of the larger industry funds are now open to anyone to join. They often have lower fees and usually offer MySuper accounts.

2. Retail super funds

Usually run by financial institutions, e.g. a bank, or an investment company, and are open for anyone to join. They often have a wide range of investment options. However, fees can be on the mid-to-high side and can vary a lot between funds, as can returns.

3. Corporate super funds

These are organised by companies on behalf of their employees. They may be operated under a board of trustees, or managed by an appointed retail or industry fund. Generally speaking, the costs will be lower in a large employer fund than for small businesses.

4. Public sector super funds

These are for government employees only. They generally offer lower fees and return profits to the fund.

5. Self-managed super funds (SMSFs)

An SMSF is a private superannuation fund that you manage yourself. It's a growing sector which appeals to many people because it offers greater flexibility and choice in the type of assets you can invest in.

As the trustee of your own superannuation fund you're responsible for setting the investment strategy and complying with all of the tax, insurance and regulatory obligations. So it is more work and requires more financial and legal knowledge than a regular super fund.

Find out more about the pros and cons of having an SMSF.

If you're interested in setting up an SMSF, make sure you seek qualified financial advice on whether this is the right approach for you.

Related: Self-managed super funds: The importance of getting the right advice

What type of investments are available to me?

Within each super fund, you'll have a choice of super products, which are basically different ways to invest your superannuation.

These may include a different mix of asset classes, e.g. shares, property, cash and/or exposure to different markets. Each product carries a different level of risk and potential reward. Which approach is right for you will depend on several things, especially your age and stage of life, time to retirement and your retirement goals.

You should always seek financial advice before making any changes to your superannuation settings. A qualified financial planner can help you understand which superannuation product is right for you.

Related:What are the best investments for your retirement?

When can I access my superannuation?

You've spent years building up your nest-egg, so when can you make use of it? You can access your super once you meet one of the following conditions:

• when you turn 65 (even if you haven't retired)
• when you reach the preservation age and retire; or
• under the transition to retirement rules, while continuing to work.

There are also some special circumstances where you may be able to access your super early, such as severe financial hardship, including COVID-19.

Read more:COVID-19 Withdrawing super: What to consider

Matt Coughlan
(Australian Associated Press)

Farmers' financial skills and drought research will receive a boost through a $3.9 billion fund designed to prepare Australia for future crippling dry spells.

Almost $90 million from the first annual $100 million Future Drought Fund payout has been allocated across a range of drought-proofing programs.

A $20 million program will help farmers develop and improve detailed business plans.

Agriculture David Littleproud says the scheme was designed to do more than put together a budget.

"This is about risk management tools, about understanding how you can hedge your products in international markets," he told ABC television on Wednesday.

Farmers will get improved climate data to guide decision-making through a $10 million boost for digital information services.

National Farmers' Federation president Fiona Simson welcomed the focus on managing financial and climatic risks.

"As a nation, we have not yet got drought preparation, management and recovery right but today represents a landmark step towards significant improvement," she said on Wednesday.

More than $20 million will be spent on drought research while $15 million will be funnelled towards natural resource management.

Alliances of local councils will be able to share in $10 million to develop regional drought plans.

"These programs will give farmers and communities the tools they need to prepare for, manage and sustain their livelihoods during droughts," Mr Littleproud said.

Labor has previously criticised the fund for spending just $100 million a year from 2020 despite being first announced at the height of the drought in 2018.

The Future Drought Fund is expected to rise from an initial $3.9 billion to $5 billion in 2028/29.

Christine Flatley
(Australian Associated Press)

The head of Flight Centre has warned it could be three years before international travel returns to pre-coronavirus levels.

Graham 'Skroo' Turner says government policy around COVID-19 restrictions will determine how quickly the domestic industry bounces back, but those eyeing an overseas holiday will likely wait a lot longer.

"It's really up to the government on this sort of thing, and if they ease restrictions it will come back fairly quickly," he told ABC radio on Wednesday.

"Maybe 18 months to two years (international travel) might be back to 70 per cent, but it'll probably be three years before it's back to pre-COVID levels."

Mr Turner said the current policy requiring any returning international travellers to self-fund a two-week quarantine period in a hotel is a major deterrent.

He said other protocols such as pre-testing travellers and then re-testing them upon entry into Australia could be put in place instead.

"I think the protocols, pretty soon, will be to the stage where it will be probably nearly as safe as a two-week quarantine in a hotel," he said.

Flight Centre has stood down around 16,000 staff globally since the pandemic emerged at the start of the year.

Other major tourism players, such as Virgin and Qantas, have also been forced to shed thousands of staff as flights are grounded.

Mr Turner called on the federal government to either continue the JobKeeper wage subsidy program for the industry, or to implement a new scheme to help keep it afloat.

"I think it will be necessary, not just for travel, but for airlines and all tourism operators otherwise hundreds of thousands of jobs are going to be permanently lost for sure."

Paul Osborne and Katina Curtis
(Australian Associated Press)

A major review has called for a lift in the GST rate or a broader base, 20 years on from the introduction of the consumption tax.

But the architects of the tax warn the mammoth political task to change it shouldn't be done just to give governments more money to spend.

A six-person panel led by businessman David Thodey released a draft report of its review into federal financial relations on Wednesday.

The review was commissioned by NSW Treasurer Dominic Perrottet in 2019 but is expected to be influential as all governments consider tax reform and other ways to improve the federation amid the coronavirus pandemic.

The GST rate has stayed at 10 per cent, but the share of household spending subject to it has fallen from 60.8 per cent in 2001/02 to 55.4 per cent in 2018/19.

The review recommends state treasuries, in consultation with the Commonwealth, "assess and agree options for lifting the GST rate and/or expanding the base over the medium to longer-term".

Some of the revenue gained from changes should go to lower-income households.

The review also calls for the replacement of stamp duty with broad-based land tax, as has occurred in the ACT, as well as a national approach to payroll tax reform.

Former federal treasurer Peter Costello says the nation's taxes needs constant care and maintenance but the GST shouldn't be broadened or lifted for its own sake.

"People are saying let's increase the rate to do what?" he told ABC's Radio National.

"If all you bought, for example, was a slight reduction in the deficit, I don't think it would be worth it.

"But if by changing a rate or introducing a new tax you could abolish, I don't know, five other taxes, if you could radically reduce income taxes, if you could improve the company tax system now you're talking about something worth doing."

He said it was easy for states to call for changes to the GST because they didn't wear any of the political heat.

John Howard says it would be desirable to broaden the GST base and perhaps also increase the rate.

"But when and where, how and when that occurs, I'll leave to Scott Morrison and Josh Frydenberg," he told 2GB.

Australians could be persuaded to back reform if they could be convinced it was good for the country and poorer people would be supported, the former prime minister said.