Innholdsfortegnelse for December - January 2021 i CHOICE

Colonial First State Investments was ordered by the Federal Court to pay a $20 million fine in late October for misleading or deceptive conduct on at least 12,978 occasions when communicating to its superannuation members. The tactic was an effort to convince members to stay with the firm’s FirstChoice Fund instead of switching to a MySuper product. Among the glaring falsehoods trotted out by Colonial First State: telling members that legislative changes required Colonial to contact them and direct them to stay in the FirstChoice Fund, and failing to tell members that if they didn’t make a choice they’d be moved to a MySuper product as is legally required. “The $20 million penalty handed down to Colonial is a timely reminder to superannuation trustees not to mislead members for their…

The recent release of a new Financial Difficulty Guideline by the banking industry was welcomed by Australia’s peak body for financial counsellors, Financial Counselling Australia (FCA). “It means that bank hardship responses will be more flexible, there will be better communication and more options for people doing it tough,” says FCA chief executive Fiona Guthrie. One aspect of the new guideline that’s still in play is the idea of a savings buffer. Bank customers would not be allowed to fall below this buffer, regardless of their level of debt. “A few years ago, a savings buffer was not even on the table,” Guthrie says. “We expect that trials of the new approach, which are underway in some banks already, will quickly show its value. It has never made sense for…

Google has overhauled its Pixel smartphone range with the release of the Pixel 6 Pro. It’s a flagship Android model designed to compete with the big dogs like Samsung and Apple. But while it’s not quite the cream of the crop, the 6 Pro rarely leaves you wanting more. It’s fast, has an excellent camera, a vibrant screen, a sleek new design and even some image and voice processing features that feel like they’ve been plucked straight from the future. But there are a couple of aspects that don’t quite live up to the “pro” part of the name – namely the battery, and the absence of some advanced photography features. This is one of two phones to use Google’s new proprietary processor, Tensor. Though it’s early days, Google has…

ASIC took legal action against timeshare scheme Ultiqa Lifestyle in early November for providing financial advice that went against the best interests of its members. It was the first time the regulator started civil penalty proceedings against a timeshare operator for offering advice that was inappropriate to the recipient’s circumstances, and it’s been a long time coming. From October 2017 to March 2019, authorised representatives of Ultiqa sold people into schemes with upfront costs from $10,000 to $25,000, and ongoing fees of up to $800 per year. Many members didn’t know what they were getting into. “Consumer harm can and has resulted when consumers are not aware of the upfront costs, ongoing fees or the nature of their investment – like how easy, or not, it is to exit [the…

For the most part, disability insurance bundled with your super account will pay out if you can show you can’t work again. But for some fund members (particularly those not in paid full-time work or doing a job classified as ‘hazardous’), a much tougher test applies. Despite the insurance being much less valuable for these members (as there’s a much lower chance of it ever paying out), they’re still paying the same premiums. Super Consumers Australia has been contacting funds asking them to remove these restrictive tests. Encouragingly, eight of those funds have dumped or will dump their junk insurance terms, and a further six have significantly reduced the impact. Disappointingly, however, a couple of funds have earned a lump of coal by clinging to their junk insurance. Super Consumers…

Model matters I called the Good Guys to enquire if they had a Russell Hobbs rice cooker RHRC1, rated by CHOICE at 89%. After a little fuss and fanfare they assured me they did. The store was closed due to the pandemic, so they sent an invoice to my phone. I paid the invoice and drove around to click and collect. The storeman loaded the rice cooker straight into my car and I was on my way. When I went to unpack the rice cooker I immediately saw it was a Russell Hobbs RHRC20, CHOICE rating 78%, not the item I requested. When I called, they told me I would have to bring the cooker back and it would take up to two weeks to refund my money. I asked why…

THE SUMMER ISSUE The COVID-19 pandemic has made many of us switch our travel focus from big overseas trips to rolling a hired caravan or campervan to a beach-side camping spot and staying put for a week or two. But how you hire that home-on-wheels has changed in recent years. The commercial companies that holiday-makers would traditionally turn to are now competing with peer-to-peer services – where people hire campervans, motorhomes and caravans directly from the owners. And given that one in five van owners use their van for fewer than seven nights of the year, it’s no wonder peer-to-peer services are booming. But there are potholes to avoid along the road. We steer you through what to expect. You might stumble across a restored vintage caravan or a near-new motorhome…

THE SUMMER ISSUE 1 Check and confirm the refund policy In a recent CHOICE survey, fewer than one in five (17%) people say they got a full refund after their travel plans were cancelled due to reasons associated with the COVID-19 pandemic. Others say refunds or other remedies took more than six months. That’s why it’s so important to thoroughly check terms and conditions before you book anything, and fully understand your rights to a refund in the event of a COVID-related cancellation. Fewer than one in five say they got a full refund after their travel plans were cancelled BEFORE YOU BOOK: ● Check your travel provider’s policy on cancellations and refunds in the terms and conditions, which you should be able to find on their website. The ACCC…

The CHOICE quarterly Consumer Pulse surveys consistently find that the cost of food and groceries is a significant concern for Australians. The most recent survey found that 63% of Australians are concerned about the current costs of household food and grocery expenses. So we created a shopping list of 29 items common to each supermarket to find where the biggest bargains can be found. We’ve also taken a look at online grocery delivery services – are they convenient? Do you get what you’ve ordered? Is it of a high quality? And does it arrive at your door in the specified timeframe? 63% are concerned about the cost of household food and groceries Cheapest groceries Similar to past results, Aldi has the cheapest groceries. Intensive price monitoring between Coles and Woolworths…

Agood soda maker can make entertaining easy and help you keep up your daily water intake. Whether it’s for plain sparkling water or a flavoured drink, you’ll want a soda maker that makes carbonating your water and refilling the gas canisters fuss-free. Our expert tester Adrian Lini made countless litres of soda water to find out which models came out best. A good soda maker can make entertaining easy and help you keep up your daily water intake We have a heavy emphasis on ease of use for this test, as some models are more fiddly to use than others, particularly when installing and removing gas cylinders. Water may also spill from the bottle, regardless of whether you’ve over-carbonated, so we’ve included a score for this and logged whether or not…

Cleaning the toilet is hardly a fun chore, especially if your toilet cleaner is a real stinker. With so many toilet cleaners on the market, we’ve put them to the test to see which will make light work of scrubbing the toilet clean. We’ve even compared them with water – and found that some clean no better than water alone! What makes a good toilet cleaner? The best toilet cleaner is one that can remove stains and particulate matter in minimal time and with minimal effort, leaving the bowl fresh and clean. It should also be easy to apply. Bottle necks are useful here – the angled necks help you squirt the cleaner under the toilet rim without spilling it or getting any on your hands. If you have young children…

Payday lender Ferratum was taken to court by ASIC in early November for a type of misbehaviour that has become all too familiar in the payday loan (or ‘small amount credit’) industry. Ferratum’s misdeeds occurred between March 2019 and August 2021 and involved a number of breaches of consumer credit protection laws, including charging prohibited direct debit credit card fees and incorrectly calculating the amounts borrowers had to pay when they repaid their contracts early (borrowers ended up paying more as a result). Given the types of loans on offer, it’s not surprising that Ferratum’s customers were already doing it tough before the lender made it worse. “The credit protection laws are designed to protect consumers who need to access small amount loans,” says ASIC deputy chair Sarah Court. “ASIC…

The NSW Independent Pricing and Regulatory Tribunal (IPART) has released a report saying customers that remain on their energy retailers so-called ‘standing offer’ or standard offer are paying too much for energy and could save hundreds of dollars by switching. “A typical customer could save more than $300 a year for electricity and $350 for gas by moving from their retailers’ standing offer to a better plan,” says IPART Tribunal member Sandra Gamble. “Customers should compare offers on the government-run EnergyMadeEasy website [energymadeeasy.gov.au] to get a better deal.” The report also found that 16 new energy retailers entered the NSW retail energy market in the past two years, bringing the total number of retailers to 40. Gamble says that as competition increases, products and services should deliver better outcomes for customers.…

The Queensland government is warning final year high school students to read the fine print on any travel plans, as the state approaches its vaccination milestones of 70 and 80%. ‘Schoolies’ often flock to Queensland’s Gold Coast at the end of the year to celebrate the end of schooling. The state government is warning school leavers to familiarise themselves with the vaccination goals of the state and its plans for gradual reopening to COVID hotspot areas such as Victoria and New South Wales. Commissioner for Fair Trading Queensland Victoria Thomson says students being given refunds on travel plans that are cancelled due to COVID will depend on the individual terms and conditions of different businesses. “Last year, when the pandemic was new and unprecedented, people may have been provided refunds under…

THE SUMMER ISSUE Are you a softie for ice cream? Buying it ready-made may be convenient, but making your own from scratch has its benefits too. Not only is it a fun, family-friendly activity, but it’s also a great way to go super niche and experiment with flavours. Homemade ice cream is also ideal if any members of your household have a food intolerance or specialist diet, as you know the exact ingredients that have gone into it. Homemade ice cream is ideal if anyone in your household has a food intolerance or specialist diet “Ice-cream makers can be a great option for anyone who has a lactose intolerance or who is vegan,” says Fiona Mair, CHOICE’s home economist. “You can also control what ingredients are added, so there are…

The CHOICE Expert Rating consists of performance (20%) and ease of use (80%). Our small appliances expert Adrian Lini looks at: PERFORMANCE ● Whether the machines can achieve a low, medium and high level of carbonation using either the automatic or manual settings (depending on type).● Consistency of the carbonation across ten bottles. EASE OF USE ●Ease of installing and removing CO2 cylinder: This should be simple and quick.● Ease of installing and removing bottle: This should be easy without the chance of water spilling.● Ease of controls: These should be simple and let the user control the amount of sparkle in the water.● Ease of using the supplied bottle and lid: Can it lay down in the fridge? Can the lid be secured tightly?● Water spillage: Does water spill…

THE SUMMER ISSUE The biggest change in ceiling fans in recent years is the introduction of models driven by DC (direct current) motors. Before then, fans were only available with AC (alternate current) motors, which have been around since the 1880s. Fans with DC motors are generally quieter than fans with AC motors. They also offer more speed settings, making them more versatile in creating the level of cooling you’re after. Closing the price gap AC motor ceiling fans still hold the advantage as far as price is concerned – some models are available for less than $100. But the gap has narrowed significantly. There are now several DC motor models available for less than $300, including a few that we’ve recommended. Fans with DC motors are generally quieter and offer…

THE SUMMER ISSUE As we wrote back in our Dec 19 issue, portable air conditioners now need to meet minimum energy performance standards (MEPS). They also need to clearly display what’s known as a zoned energy rating label (ZERL). It will show energy usage across different zones of hot, average and cold climates. If you live in a climate that’s very hot most of the time, such as in Darwin, you’d look at the energy use relevant to that zone, which would be higher than for an average or cold climate – the higher the number, the more out of pocket you’ll be when it comes to energy bills. This extra information will help you make a better choice at the checkout. If you live in a climate that’s very hot,…

THE SUMMER ISSUE Keeping your garden hedge neat and tidy is easy with the right sort of trimmer. But before you check out our performance and ease of use results, assess the hedges in your garden. Very woody hedges call for a powerful model with a large tooth gap. If you have a lot of hedging to do, consider factors such as the trimmer’s blade length, which could save on cutting time. Our test does incorporate ease of use, but try to handle the trimmer yourself (in a store, for instance) before you buy, just to see how it feels. Choosing a power type Hedge trimmers are electric, battery or petrol-powered. We haven’t tested petrol hedge trimmers. ELECTRIC Electric (AC) hedge trimmers are light and manoeuvrable, and there’s the advantage…

THE SUMMER ISSUE Airbags, stability control, autonomous braking systems… the list of safety features in modern cars is as long as your arm. But there’s one safety feature that’s often overlooked: your tyres. Good tyres with plenty of tread are essential for safe driving, but they also need to be correctly inflated or they may be ineffective in an emergency. What pressure are your tyres right now? When was the last time you checked them? Don’t know? Well, if you’re driving on under-or over-inflated tyres, you could be putting yourself, your passengers and other road users at risk. Driving on under-or over-inflated tyres can put yourself, your passengers and other road users at risk Why tyre pressure matters UNDER-INFLATION Low tyre pressure brings a range of problems, including higher fuel…

The Commonwealth Bank of Australia’s controversial school banking program Dollarmites was cancelled across the country in late October, following years of campaigning by CHOICE and other critics of school banking programs. The move followed a series of bans by state governments. New South Wales announced in mid-October that Dollarmites was no longer welcome at schools in that state, taking the lead from Queensland, Victoria and the ACT. The state bans followed a long-running CHOICE campaign that included a Shonky Award and meetings with state education ministers, urging them to drop the program. Commonwealth Bank announced it would be ending the 90-year-old program nationally from the end of 2021. The bank may have billed Dollarmites as a financial literacy initiative aimed at teaching kids how to save, but in reality the…

Since 1 November 2021, fully vaccinated Australians can depart Australia without seeking an exemption. While this would be a big relief for people who were separated from family overseas, it’s not a return to the pre-COVID international travel environment. Border settings and quarantine requirements in other countries continue to change, often at short notice. Before setting off, closely check the requirements of airlines, transit and destination countries (see smartraveller.com.au), as well as return arrangements to Australia. Travel insurance is essential, especially since some destinations require compulsory insurance cover. Check details of your insurance coverage, particularly how it applies to COVID-19 medical and cancellation cover. Example scenario: Angela and Thomas book one of the first flights out of Sydney to London to see their family. But a few days before their…

Tapping your loyalty card at the supermarket checkout, swiping right on Tinder, bingeing ‘Squid Game’ on Netflix, asking Siri for directions – every day in every way, businesses are collecting data about you, your preferences and your behaviour, and they’re using it to do everything from personalise your online experiences to knocking back your home loan application. Big data is big business, an estimated $139 billion globally last year alone. So what does this mean for Australian consumers, and should you be worried? CHOICE has been watching this space for the last few years and we’ve found more than a few things to be concerned about: we uncovered price discrimination on Tinder; identified data security risks at Equifax, one of Australia’s largest credit reporting agencies; and highlighted tenancy blacklists pushing…

A Senate inquiry has been called to investigate the collapse of the Sterling First managed investment scheme. More than 100 people have been left in financial ruin and uncompensated by the collapse of the property investment scheme in 2019. Many of the victims of Sterling First are elderly Australians who have lost their entire life savings and are facing homelessness. A CHOICE investigation in August 2021 interviewed victims of the collapse. Marsha, 80, and her husband lost most of their life savings. “We’ve lost $126,000 roughly. Emotionally it became very difficult for me because my husband had developed Alzheimer’s and he could not understand what was going on. So I pretty well coped with things alone and looked after him at the same time,” says Marsha. CHOICE will be appearing…

Q My wife recently damaged her Mazda while driving to Canberra. She is insured with AAMI and she cannot select her own repairer. She went to a local and trusted smash repair close to where we live and obtained a quote (we also got a quote from the local Mazda dealership). The repairs come in at about $4000. AAMI want her to take the car to one of their designated repairers. I’d prefer to use our local and trusted repairer. Do I have to use AAMI’s repairer? A CHOICE insurance expert JodiBird: As you note, AAMI doesn’t let you choose your own repairer, but it does guarantee repairs for the lifetime of the vehicle (see choice. choice.com.au/products/money/insurance/car/aami-comprehensive So should you have any issues with the repair, you should raise a complaint…

THE SUMMER ISSUE Aussies and the beach go together like avocado and toast. But as much as we love a seaside frolic, our sun-seeking way of life has a downside: our rates of skin cancer are among the highest in the world. In fact, melanoma – the most dangerous form of the disease – is often referred to as our country’s ‘national cancer’. If you’re determined to get your sand-and-sea fix while still staying sun-smart this summer, beach shelters and shades can be a good option. “Good-quality shade can reduce UV exposure by up to 75%,” says Heather Walker, chair of the Cancer Council National Skin Cancer Committee. “It’s one of the best and easiest ways to protect against UV radiation when used with other protective measures, such as sun-protective…

Camplify One of the best-known websites in the market, Camplify has thousands of listings. You can search for everything from budget hires to pet-friendly ones. Where in Australia it operates All states. Listings 6161 registered vehicles across Australia, NZ, Spain and the UK. Price range for listings $40–300 a night. Vehicle types Caravan, motorhome, camper trailer, campervan, expander, 4WD campers. Minimum hire period 2–3 days. Bond/security deposit Camplify holds a bond/security deposit on the hirer’s credit card. The amount depends on the van chosen and the liability held by the hirer. Excess fees Hirers are covered for damage at no extra cost but you can add an Accident Excess Reduction Package (Silver or Gold). Excess ranges from $500 to $5500 per incident, depending on the booking/vehicle type etc. and the package…

Composting is the decomposing of organic waste (any biodegradable material derived from a plant or animal) into a nutrient-dense mixture used to condition soil. With just air, water and your food scraps, microorganisms will convert your waste into a rich, earthy, dark compost. You’ll be amazed how much of your waste can actually be home composted and kept from landfill. Good compost requires a balance of green waste and brown waste – generally a ratio of 1:1 by weight. ● Green or nitrogen waste: Anything fresh, such as: food, fruit and vegie scraps, spent coffee grounds and tea leaves, wilted flowers, grass clippings.● Brown or carbon waste: Anything that once was alive or part of a living thing, for example, shredded paper, cardboard, toilet paper rolls, tissues, paper towel, hair, fur,…

Making coffee is as much an art as it is a science. A good coffee grinder will involve both in helping you achieve that perfect cup. Our expert test covers standalone coffee grinders as well as cheap all-purpose grinders designed for spices as well as coffee beans. How do coffee grinders work? A dedicated coffee grinder gives a superior flavour thanks to its even grind. The grinding is done by a burr – either conical or flat. A conical burr sits vertically inside a static outer ring, and grinds the beans against it. Flat burrs involve two identical parallel rings grinding the beans with pressure. There’s lots of debate as to which type of burr is better, but our tests focus on the end result – whether the grinder can…

CHOICE had a special adaptable chamber constructed for our ceiling fan tests, so that we can measure air movement accurately. The room is 4.5m x 4.5m and 3m high, and can be adjusted if needed. The walls have a gap at the bottom to let airflow created by the ceiling fan leave the room and not create any swirling effect that can affect the measurement. And another chamber surrounds the test room to make sure that no air movement from the surrounding area can affect results. We take air movement measurements along each diagonal at small intervals, with the initial reading at 50mm from the centre and one metre below the fan. We stop the readings when the average air velocity falls below 0.2m/s. We take measurements at the highest…

Smart speakers may appear the same as the Bluetooth speakers that you bust out for barbecues, but these internet-connected devices offer so much more. They combine the capabilities of wireless speakers with digital assistants like Alexa, Siri and Google Assistant. Together you can use them for all sorts of things, from playing music to controlling your security cameras. But over the years the term ‘smart’ has come to mean a lot of different things in the tech world. The features that define a smart speaker are a bit more specific than a smart TV or smart fridge, for example. So, we’ve put together a clear definition of what makes these speakers smart, with a guide on how to make the most of them. What is a smart speaker? The term ‘smart’…