February 2023 Newsletter

February marks the end of summer holidays for many of us and getting down to business for 2023. It can be a good time to reflect on plans and goals for the months ahead.

China’s plans to kickstart its economy after the pandemic shutdown have been dominating the news this month and will have worldwide implications, not the least for Australia. As our largest trading partner, an increase in demand is likely to bring improvements in our commodity prices, exports and share prices (particularly of companies exposed to China).

Australian shares were up nearly 8% in January while US stocks climbed by about 5% but the markets are nervously waiting for expected increases in interest rates by major central banks this month to help curb inflation.

Australia’s inflation rate jumped by 1.9% in the December quarter to 7.8% for the year. It was the biggest increase since 1990 and more than twice the rate of wage growth, despite the Reserve Bank’s moves to increase the cash rate during 2022.

The ANZ-Roy Morgan consumer confidence index increased slightly in January to finish at 86.8 points but it’s still 15 points behind the same time last year. The NAB business conditions survey recorded a third successive fall in December although business confidence improved slightly and remains well above average.

The Aussie dollar fell slightly from near eight-month highs, easing towards US70c ahead of the expected rate rises by major central banks overseas.

Now for Some exciting King & Whittle News!

King & Whittle is very proud of our association with the Thai Australian Chamber with our very own Director Robert Barrese as Treasurer, celebrating the Thai Honorary Consulate formal Introduction Proceedings.

It is with great pleasure that we announce the promotion of Gianni Versace to Client Services Manager.
Gianni has been a part of the King & Whittle family for nearly 10 years, and is a highly respected accountant, team member and friend of the firm.
He emulates the culture of King & Whittle and we are so proud. Gianni is an incredibly hardworking, talented and motivated accountant and he has developed such trusted relationships within the team and clients alike.
Congratulations Gianni!!!

Market movements - February 2023

Stay up to date with what's happened in the Australian economy and markets over the past month.

China’s plans to kickstart its economy after the pandemic shutdown have been dominating the news this month and will have worldwide implications, not the least for Australia.

Australian shares were up nearly 8% in January while US stocks climbed by about 5% but the markets are nervously waiting for expected increases in interest rates by major central banks this month to help curb inflation.
 

The new flexible workplace

After experiencing the highs and lows of working from home during the pandemic, more employees are seeking flexibility in their working lives and employers are looking for new ways to adapt.

While most businesses are operating again since the Covid-19 shutdowns, it has been far from business-as-usual. Apart from problems with transport disruptions and rising prices, severe staff shortages have been a constant concern.

An Australian Bureau of Statistics survey in mid-2022 found almost a third of businesses were finding it tough to recruit staff.ⁱ Most in demand were building trade workers, clerical workers, labourers, sales staff and hospitality workers. Engineering trades and information communications and technology professionals were also hard to find. Meanwhile the dire shortage of teachers, nurses and aged care workers threatens the smooth viability of the health, education and care sectors.

Flexibility is key

With no quick fix in sight and predictions that population growth and increasing demand will make it even more difficult to find staff, business owners need to find ways to adapt to keep their operations afloat with such a shortage of workers.

Pay rises and more flexible working conditions are becoming more common, a trend that translated into the highest annual rate of wages growth in a decade during the September quarter 2022.ⁱⁱ

But salaries are not the only issue.

More than money

In addition to better pay, a survey carried out last year found almost a quarter of Australian workers are also planning to change jobs for three other reasons: to progress their careers, or in the search for greater work-life balance.

These days more people are seeking more balance via flexible working conditions including different starting and finishing times that help parents of school-age children and shorter working weeks that allow staff to pursue other interests or meet family needs.

Working from home during the Covid-19 shutdowns gave many workers and employers an insight into a different and more flexible way of getting the job done.

Before the pandemic, only around 8 per cent of employees worked from home, according to a Productivity Commission research paper. During the shutdowns, a majority of mostly office-based workers were working from home.

Work from home here to stay

Today, many firms are testing their working from home policies to see what works best for them. A recent study by HR research and advisory group, Gartner predicts that nearly half of all employees will work remotely in the future.

What’s more, most employees want to work from home, at least some of the time, according to the Productivity Commission’s research. About three-quarters of workers surveyed believed they were just as productive working from home as from the office.

The biggest plus for employees was avoiding the dreaded commute. On the other hand, workers were concerned about the consequences for their careers in the longer term. It’s about finding the right balance that suits both employer and employee.

Businesses can successfully implement flexible working by providing the right tools for employees to work from home a few days a week, be clear on expectations when working remotely and continue to build team culture even when working remotely.

Weighing up productivity and costs

Some firms surveyed by the Productivity Commission anticipated an increase in co-ordination costs to manage a remote workforce. They also worried that working from home may reduce knowledge sharing and creativity and that workers may slack off.

Yet some business owners also see a silver lining, believing workers may be more productive at home because they have better control over their time. Firms also saw benefits in being able to tap into a bigger pool of labour and in saving office rent.

Flexible working conditions are also important to frontline or customer-facing workers who can’t work from home.

Gartner says its research has found frontline workers want control over their work schedule and paid leave. Frontline workers also want a say in what they work on, who they work with and the amount they work, says Gartner.

Finding new ways to attract staff and then keep them will be on the minds of many employers in 2023. In an uncertain world, one thing is certain - new ways of working will be established as we settle into a post-pandemic world. If you would like to discuss your business plan, give us a call.

i https://www.abs.gov.au/media-centre/media-releases/almost-third-employing-businesses-unable-find-suitable-staff

ii https://www.abs.gov.au/articles/12-things-know-about-australian-economy-right-now.

Being wary of scams and sharing your personal information

Key Points:

• Never use the same password or variations of the same password, utilise different numbers and letters with a mixture of capital and lower case letters

• Online quizzes may be fun but usually there is a catch, and that catch can be your personal data

• Scammers either attempt to build rapport with their targets or are very aggressive and frightening

This is doubled by the fact that more and more scammers are utilising the current COVID-19 crisis to target people through phone calls and email phishing scams.

It can be hard to differentiate between real or fake news, and genuine or false information in your emails and text messages.

While technology is a great way to create profiles for advertisers and companies, it is also an easy platform for scammers to use.

Older people are becoming warier of what they post online and on social media, but may not be as careful about the data they give away freely for competitions they enter or anything else that involves giving away personal information.

Elderly people are also more prone to falling victim to online and over-the-phone scams, which could result in substantial amounts of money being taken from your hard-earned savings.

It’s important to always double-check with someone you trust about whether you are making the right decision before handing over money or information.

One thing to keep in mind is scams are always developing and becoming more clever as the years go on. Always be vigilant with odd links, monetary requests you aren’t expecting, and be aware of who you are providing your personal information to.

Passwords: Variety is the spice of life

Using easy passwords to safeguard some of your most important assets can be really dangerous in today’s online climate.

Especially when you are storing away your hard-earned savings for retirement or a nice holiday.

Using really easy passwords, like ‘password’ or ‘abc123’, can be very easy to guess by hackers or even people you know.

Another concerning factor is the number of people who use derivatives of the same passwords.

For example, say you decided to make your password named after your cat, Fluffy. You used the same name as the basis for the password, but just added numbers to make it different between the multiple online accounts you have. Such as, your bank account password is ‘Fluffy1’, your superannuation is Fluffy followed by the day of your birth, ‘Fluffy25’.

While derivatives of the same password may make it easier to remember, it also makes it easier for someone to guess.

A good idea is to mix up your passwords where possible to make your online accounts safer. This means utilising a mixture of letters and numbers and a mixture of capitals or lower case letters.

If you are worried about losing your passwords, start using an online password manager to keep all of your passwords in one place under a strong primary password key.

Data is up for grabs

Data has been a massive commodity for advertising companies online, and offline, over the last decade.

Many older people may not be aware they are giving out their personal information for free while online.

While older people tend not to post too much revealing information on social media, it can be as easy as entering an online competition for you to have all your personal information stored and sold on to a third party.

The same goes for loyalty cards, if you spend $100 on groceries at a supermarket and use your loyalty card, that supermarket now knows how much you spend, what products you are buying and if you are able to withdraw and pay that much money.

This information is usually taken by those companies to try and sell you specific things based on your recent purchases, but this information is also a hot commodity for other companies to buy. You may never know how far your information can be passed along.

Similarly, some ‘fun quizzes’ online can not only take your personal data but also formulate a personal profile about you as an individual from the answers you chose in the quiz.

A good idea to be safe online is to reduce how much information you pass out, like phone numbers, home addresses and emails, and be careful with what you are engaging with online.

Scammers are not your friend

Many scams these days target older people online and on the phone. However, scams over the phone are more effective because it brings a human element into the ruse.

There are generally two types of scams, threatening and aggressive scams, or social engineering scams.

Threatening scams aim to scare the person on the end of the phone into making decisions on the spot, either forfeiting information or money.

These calls can be aggressive, like someone threatening to get the police involved and have you put in jail.

Social engineering scams are a lot sneakier compared to threatening scams, because they involve gaining your trust, resulting in you passing along your details or money to the scammer none the wiser.

Social isolation is a big problem with older people and scammers use this fact to engage and chat with an elderly target on the phone, convincing the older person they are trustworthy.

Because they take an interest in the person, a lonely older person may soon consider the scammer a friend and undertake what is being asked of them.

It’s important to regularly check your bank statements, especially since scams are carried out in lots of different smart ways.

Rather than taking out big amounts of money, scammers tend to take out $10 – $20 dollars on a recurring basis, so the withdrawal doesn’t look huge and cause suspicion.

‘Love’ scams are another popular and big-paying swindle. There are many stereotypical ideas of the love scam, generally around a far-off prince needing some financial assistance from you – his greatest love, however, that is not the most successful type of love scam.

In most cases, love scams involve an older man and woman, who has developed a relationship of some sort with someone, somewhere in Australia.

The scammer would first spend time creating a connection with the elderly victim before making up extravagant scenarios where they need the individual to pay money to help them.

It is an incredible form of emotional manipulation, which can result in a lot of money passing between hands.

Standing up to scammers

The best way to combat these types of scams is to never give your credit card or personal details over the phone.

No matter the business, a caller should never ask you to pay for something over the phone, especially for small transactions.

Additionally, when online or checking your emails, avoid pressing on dodgy links. If you receive an invoice from an unknown and weird email address, go to the actual company website, for example, Telstra, and see if you have any outstanding bills.

Another good option for when you receive a concerning call or odd email asking for money is to check with someone you trust.

The aim of these scams is to isolate you from the herd. Ask a friend or family friend about their opinion before paying any money.

And if the scammer is becoming aggressive in their communication with you, tell them you will contact the organisation directly and hang up.

You are well within your right to say you will call the company back directly on the official company number and pay a bill rather than right on the spot.

For more information or to report a scam, head to the Government Scam Watch website for more information.

Source:
This article was originally published on https://www.agedcareguide.com.au/information/being-wary-of-scams-and-sharing-your-personal-information. Reproduced with permission of DPS Publishing.

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