Financial information,
not advice.
Clear, plain-English information about every financial topic that matters — without the hefty advice fee. Made for everyday Australians.
Start with your budget.
Everything else follows.
Understanding your cash flow is the foundation of every financial decision. Our free interactive budget planner shows exactly where your money goes — and where you can get ahead.
Free calculators
Explore your numbers with our interactive tools. General estimates only — not a substitute for professional advice.
Mortgage repayment
Estimate your monthly home loan repayments based on loan size, rate, and term.
Savings goal planner
See how long it takes to reach your target with regular savings contributions.
Compound growth
See the power of compounding on a lump sum investment over time.
Debt payoff estimator
See how long to clear a debt at a set repayment amount — and the total interest paid.
Popular guides
The most searched financial topics by Australians — explained in plain English.
What is LMI and how can I avoid it?
Lenders Mortgage Insurance explained — what it costs, who pays it, and your options for avoiding it with a smaller deposit.
How does salary sacrificing into super work?
Directing pre-tax salary into super can reduce your taxable income. Here's how it works, the caps, and what to consider.
ETFs vs managed funds — what's the difference?
Both pool your money across many assets, but the structure, fees, and trading mechanics are quite different. Here's a comparison.
Avalanche vs snowball — which debt strategy works?
Two well-known debt repayment approaches compared — one is mathematically optimal, the other wins on psychology.
First Home Buyer schemes in Australia — 2025 guide
FHBG, FHSS, stamp duty concessions and FHOG explained — eligibility, caps, and how to apply.
How to check if a financial adviser is legitimate
Before engaging any adviser, verify them on the ASIC Financial Advisers Register. Here's exactly how to do it.
Key concepts
What is a budget?
A plan that tracks income against expenses over a period — showing whether you're spending more or less than you earn, and where your money is actually going.
Emergency fund
A cash reserve for unexpected costs — job loss, car repairs, medical bills. A widely-referenced general guideline is 3–6 months of essential living expenses in an accessible account.
Savings goals
A defined target — house deposit, holiday, investment — with a timeframe and required monthly saving amount worked backward from the total.
Fixed vs variable costs
Fixed costs are the same each month (rent, loan repayments). Variable costs change (groceries, entertainment). The split determines where your budget has flexibility.
The 50/30/20 rule
The following is general in nature and does not take into account your objectives, financial situation, or needs. Before acting, consider whether it is appropriate for you. Consider speaking with a licensed financial adviser.
A widely-referenced budgeting framework that divides take-home income into three broad buckets:
Housing costs in major Australian cities often exceed 50% of income for many people, which may require adjusting the wants or savings categories. The value of any framework is building the habit of allocation — not hitting exact percentages.
Some prefer zero-based budgeting (every dollar assigned a job). Others prefer the envelope method. Any approach that keeps you tracking is better than none.
Interactive Budget Planner
Your Budget
Enter amounts in your preferred period — results update instantly
Common questions
Base your budget on your lowest realistic monthly income and treat extra earnings as a bonus to direct toward savings or debt. Keep a larger buffer — often 2–3 months of expenses — to smooth lean periods. Some people "pay themselves a salary" by depositing all income into one account and transferring a fixed amount weekly for regular expenses.
A savings account pays interest on your balance. An offset account is linked to a home loan — the balance reduces the portion of the loan that attracts interest. For example, a $400,000 loan with $20,000 in an offset means interest is only charged on $380,000. The effective return equals your home loan interest rate, which is typically higher than savings account rates, and is not subject to income tax on the "interest saved."
BNPL services (Afterpay, Zip, Klarna) split purchases into interest-free instalments and are now regulated as credit products in Australia. Missed payment fees accumulate quickly; BNPL usage may be assessed by home loan lenders; and the ease of use can encourage spending beyond your planned budget. It works well for planned purchases within budget — it's a different proposition when used to bridge income gaps.
Types of bank accounts
| Account type | Purpose | Interest | Access |
|---|---|---|---|
| Transaction / everyday | Day-to-day spending & bills | Minimal | Instant |
| High-interest savings | Building toward goals | Higher (often conditional) | Same-day |
| Term deposit | Locking in a fixed rate | Fixed, often competitive | Locked until maturity |
| Offset account | Linked to home loan | Effective return = loan rate | Full access |
Conditional bonus rates — read the fine print
Many high-interest savings accounts advertise a rate that only applies if you meet specific monthly conditions — minimum deposits, growing your balance, or a minimum number of card transactions. The base rate (without conditions) is often substantially lower.
A savings account advertised at 5.5% p.a. may have a base rate of 0.5% p.a. and a bonus rate of 5.0% p.a. — only paid if every condition is met that month. Missing one condition means earning the lower rate for the entire month.
The $250,000 Government Guarantee
Deposits held with Australian Authorised Deposit-taking Institutions (ADIs — banks, credit unions, building societies) are protected up to $250,000 per account holder per ADI under the Financial Claims Scheme (FCS). If you hold more than $250,000 in deposits, spreading across multiple ADIs extends coverage per institution.
How compound interest works on savings
Interest on savings is typically calculated daily and paid monthly. When that interest is added to your balance and earns further interest, the growth accelerates — this is compounding. Most accounts in Australia compound monthly.
Common banking questions
All three are APRA-regulated ADIs covered by the FCS. Banks are shareholder-owned. Building societies and credit unions are member-owned mutuals — members are part-owners. Because mutuals don't pay dividends to external shareholders, they sometimes offer more competitive rates or lower fees, though this varies. All offer comparable AFSL-regulated deposit products.
- Monthly account-keeping fees — often waived with a minimum deposit. Fee-free options are widely available.
- ATM withdrawal fees — using an out-of-network ATM can attract a fee. Eftpos cash-out at supermarkets is typically free.
- International transaction fees — typically 2–3% on purchases in foreign currencies. Some accounts waive these.
- Dishonour fees — charged when a direct debit fails due to insufficient funds.
- Term deposit break fees — breaking a term deposit early typically reduces the interest rate earned or attracts a penalty.
How credit scores work in Australia
A credit score is a number representing your creditworthiness based on your credit history, maintained by three bureaus: Equifax, Experian, and illion. Since 2018, Australia uses Comprehensive Credit Reporting (CCR) — meaning both positive (on-time payments) and negative (defaults, missed payments) information is reported. You're entitled to a free report from each bureau every three months.
Types of debt
| Type | Typical rate | Secured? |
|---|---|---|
| Home loan | Variable, near RBA rate | Yes — property |
| Car loan | Varies widely | Usually yes |
| Personal loan | Higher than home loans | Can be either |
| Credit card | Often 18–24%+ p.a. | No |
| BNPL | No interest (fees apply) | No |
| HECS-HELP | CPI indexation only | No |
Debt repayment approaches
General in nature. Does not consider your personal objectives, financial situation, or needs. Consider whether appropriate for your circumstances before acting.
Directs extra repayments to the highest interest rate debt first, while paying minimums on all others. Mathematically minimises total interest paid and is the fastest path to being debt-free. Works best when staying motivated by seeing the numbers improve rather than needing debts to disappear individually.
Directs extra repayments to the smallest balance first, regardless of rate. Each cleared debt frees up repayments that roll to the next smallest. Behavioural finance research suggests the psychological boost of eliminating debts can improve long-term follow-through — even if the avalanche is mathematically superior. Neither is universally "better."
On a credit card at 20% p.a. with a $5,000 balance, paying only the minimum can take over 20 years. An extra $50–$100 per month dramatically reduces total interest and time to clear.
Looking to finance a car, boat or personal purchase?
Understanding your options is the first step — and you've already done that. If you're ready to explore finance, Finfo works with a panel of lenders to help find a loan that suits your situation. No obligation, no pressure.
The home buying process
Stamp duty, cooling-off periods, and first home buyer grants differ by state — the general process applies broadly across Australia.
Before searching, most buyers seek pre-approval (conditional approval) from a lender. This assesses income, expenses, credit history, and existing debts. Pre-approval gives a borrowing capacity guide — not a guarantee. APRA requires lenders to assess your ability to service the loan at 3% above the current rate (the serviceability buffer).
Most lenders require 5–20% deposit. Below 20% generally triggers LMI. Budget for: stamp duty (check your state revenue office for current rates), legal/conveyancing fees ($800–$2,000+), building and pest inspections ($400–$800), and loan application fees.
Properties sell by private treaty (negotiation) or auction. Auction contracts are unconditional — no cooling-off period. Private treaty usually includes a cooling-off period (length varies by state). Always get a building and pest inspection on older properties. A solicitor or conveyancer reviews contracts before you sign.
Exchange creates a binding agreement. A deposit (typically 10%) is held in trust until settlement — usually 4–6 weeks after exchange. At settlement, the balance is paid, title transfers, and keys are handed over. Your lender's funds are drawn down at this point.
Fixed vs variable interest rates
General in nature. Does not consider your personal objectives, financial situation, or needs. Seek advice where appropriate.
| Feature | Fixed | Variable |
|---|---|---|
| Rate certainty | Set for term (1–5 yrs) | Can change with RBA |
| Extra repayments | Often limited | Usually unlimited |
| Offset account | Usually unavailable | Commonly available |
| Break costs | Can be substantial | None |
Split loans fix a portion while keeping the rest variable — providing some repayment certainty while retaining offset and extra-repayment flexibility.
LVR & Lenders Mortgage Insurance (LMI)
Loan-to-Value Ratio (LVR) is the loan as a percentage of property value. Borrowing $450K on a $500K property = 90% LVR. When LVR exceeds 80%, most lenders require LMI — a one-off premium that protects the lender (not you) against default risk. LMI can range from thousands to tens of thousands depending on loan size and LVR. Options to avoid it include a 20%+ deposit, a guarantor, or eligible government schemes.
Ready to speak with a mortgage specialist?
The numbers above are a guide. A broker can assess your actual borrowing capacity, compare loans across multiple lenders, and handle the paperwork — often at no cost to you. Finfo can connect you with a qualified mortgage specialist.
First Home Buyer schemes
Eligibility, caps, and availability change — verify current details with the relevant government agency before relying on any scheme.
Government scheme caps, income thresholds, and grant amounts are updated regularly. Check housingaustralia.gov.au, your state revenue office, and ato.gov.au before making financial decisions based on a scheme's availability.
Allows eligible first home buyers to purchase with as little as a 5% deposit without paying LMI. The government guarantees up to 15% of the loan. Places are limited each financial year and property price caps apply by location and metro/regional classification. Administered through Housing Australia (housingaustralia.gov.au) and participating lenders.
Allows first home buyers to make voluntary super contributions and later withdraw them (plus associated earnings) for a home deposit. Concessional contributions are taxed at 15% inside super. At withdrawal, concessional contributions and earnings are taxed at your marginal rate less a 30% offset. Applications must go through the ATO before signing a contract. Verify current annual release limits at ato.gov.au.
Each state and territory offers different stamp duty (transfer duty) concessions or exemptions for first home buyers — ranging from full exemptions below certain price thresholds to partial concessions. Check your state revenue office for current thresholds, as these are updated periodically and vary by property type (new vs established) and location.
A state and territory government grant for eligible first home buyers purchasing or building new homes. Amounts typically range from $10,000 to $30,000 depending on state — conditions include new construction requirements, price caps, and residency obligations. Apply through your lender or state revenue office. Availability varies by state; verify current amounts for your state.
Investment property concepts
General in nature. Property investment involves significant risk. Does not consider your personal objectives, financial situation, or needs. Seek advice from a licensed financial adviser.
Negative gearing occurs when property costs (interest, rates, insurance, management, depreciation) exceed rental income. The net loss can generally be offset against other taxable income — reducing income tax payable. It makes financial sense only when anticipated capital growth is expected to more than offset the ongoing cash shortfall. Capital growth is uncertain and is not guaranteed.
When an investment property is sold for more than its cost base, a CGT event occurs. Individuals holding a property for more than 12 months qualify for the 50% CGT discount — only half the net capital gain is added to taxable income. Tax payable depends on the individual's marginal rate at the time of sale. The cost base includes purchase costs and eligible capital improvements.
Investors can claim depreciation on depreciating assets (appliances, carpet, fixtures) and, for qualifying buildings, on the structure (Division 43 — building allowance). A Quantity Surveyor prepares a Tax Depreciation Schedule. These are non-cash deductions — no actual cash outlay, but they reduce taxable income. Eligibility rules have changed over time; verify current eligibility with a tax professional.
The four main asset classes
Cash & deposits
Bank accounts, term deposits. Low risk, low return, high liquidity. Protected by the FCS up to $250,000 per ADI.
Fixed income / bonds
Government and corporate bonds. Regular interest, capital at maturity. Credit risk varies by issuer.
Property
Direct real estate or listed REITs. Rental income plus potential capital growth. Less liquid than shares.
Shares / equities
Ownership in listed companies. Higher long-term return potential with higher short-term volatility. Returns via dividends and capital growth.
Shares, ETFs & managed funds
Direct shares are equity stakes in individual companies traded on the ASX through a broker or online platform. Returns come from dividends and capital gains. Concentration risk is higher — one company's performance significantly affects your outcome. Australian companies often pay franked dividends carrying imputation credits that can reduce the investor's tax liability.
Exchange-Traded Funds (ETFs) trade on the ASX and most track an index — such as the ASX 200 or S&P 500. They provide instant diversification across many companies. Management fees (MER) for index ETFs are typically low — often 0.03–0.5% p.a. — because the fund replicates an index rather than paying analysts. ETFs can cover bonds, property, commodities, specific sectors, or geographic markets. They trade throughout the ASX day, unlike traditional managed funds which price once daily.
Managed funds (unit trusts) pool investors' money under a professional manager. They typically price and transact once daily. Fees are generally higher than index ETFs. Listed Investment Companies (LICs) and Listed Investment Trusts (LITs) trade on the ASX and can trade at a premium or discount to their underlying Net Asset Value (NAV) — adding market price dynamics beyond the underlying portfolio.
Compounding — the effect of time
Compounding means returns earned on an investment generate further returns. The longer the time period and the higher the return, the more dramatic the effect.
These are illustrative. Real returns vary and are not guaranteed. Fees reduce the net return and compound in the same way — a 1% difference in annual fees has a meaningful impact over 20–30 years.
Investing a fixed amount at regular intervals (monthly, fortnightly) rather than a lump sum means you buy more units when prices are low and fewer when high — reducing the average cost per unit over time and removing the pressure of timing the market.
Cryptocurrency
Cryptocurrency markets are highly volatile and speculative. General in nature. Does not consider your objectives, financial situation, or needs. Consider your circumstances carefully.
Cryptocurrency is a digital asset on decentralised blockchain networks. Key points: extreme volatility (50–80% drawdowns occur); no FCS protection; ATO treats crypto as a CGT asset (every disposal is a CGT event requiring detailed records); and it is the dominant vehicle for investment scams in Australia. Consult ato.gov.au for tax guidance and ASIC Moneysmart's "Stop. Think. Protect." resources before investing.
Need a second opinion from a qualified professional?
General information can take you a long way — but when you're making significant investment decisions, a qualified second opinion is worth having. Finfo can connect you with a licensed adviser or accountant from our national network.
Superannuation — Australia's retirement system
Superannuation is a tax-advantaged savings structure for retirement. Employers are required to contribute a percentage of eligible employees' ordinary time earnings — the Superannuation Guarantee (SG). The SG rate is legislated at 12% p.a. from 1 July 2025 — verify current rate at ato.gov.au. Money in super is generally preserved until you meet a condition of release and cannot be accessed for everyday spending.
How super is taxed
- Contributions tax: concessional contributions (employer SG, salary sacrifice, personal deductible) are taxed at a flat 15% — lower than most marginal rates. High earners above $250,000 income pay an additional 15% (Division 293).
- Earnings tax: investment earnings during accumulation are taxed at a maximum of 15%.
- Pension phase: assets supporting an account-based pension generate tax-free earnings up to the Transfer Balance Cap (currently $1.9m — verify at ato.gov.au).
- At retirement: benefits from a taxed super fund are tax-free for members aged 60 and over.
The SG rate, concessional contribution cap, non-concessional cap, and Transfer Balance Cap are adjusted over time. Verify current figures at ato.gov.au before making decisions.
Contribution types
Made from pre-tax income — employer SG, salary sacrifice, and personal deductible contributions. Taxed at 15% inside the fund. An annual cap applies (verify current cap with ATO). Unused concessional cap can be carried forward up to 5 years if your Total Super Balance was below $500,000 at 30 June of the prior year — enabling catch-up contributions.
Made from after-tax money — already subject to income tax. No tax on entry to the fund. Earnings inside super still taxed at 15% in accumulation phase. An annual NCC cap applies (verify with ATO). The bring-forward rule allows eligible members under 75 to bring forward up to three years of NCC cap in a single year. NCC eligibility phases out as Total Super Balance approaches legislated thresholds.
Lower and middle income earners who make personal after-tax super contributions can receive a matching government co-contribution — up to $500 per year. The co-contribution phases out as income rises. Both income and contribution thresholds are indexed — verify current eligibility at ato.gov.au.
SMSFs — Self-Managed Super Funds
General in nature. SMSFs involve significant trustee responsibilities and legal obligations. Seek advice from a licensed financial adviser with SMSF authorisation and your accountant before establishing or joining an SMSF.
An SMSF is a super fund with up to 6 members who are also the trustees. Regulated by the ATO (not APRA). Offers greater investment flexibility — including direct property and specific shares — but transfers full trustee duties and personal legal liability onto the members.
ASIC's Information Sheet 274 suggests funds below $200,000 may not be cost-competitive on fees, though this depends on strategy and complexity. The Sole Purpose Test (SIS Act s62) is the most important compliance rule — the fund must be maintained solely for retirement purposes. Any present-day benefit to members from fund assets (living in a fund property, using fund-owned art at home) is a breach.
Not all licensed financial advisers are authorised to provide SMSF advice. When searching the ASIC Financial Advisers Register, look for SMSF authorisation specifically.
Need to speak with a qualified professional?
Setting up or reviewing an SMSF involves trustee obligations, tax strategy, and compliance that go beyond general information. Finfo has a national network of qualified accountants and licensed financial advisers who specialise in SMSFs and can work with you directly.
Personal insurance — the four main types
Pays a lump sum to beneficiaries on death. Designed to replace the financial support you would have provided — particularly relevant with dependants, a mortgage, or debts. Can be held inside super (premiums from super balance — potentially tax-effective but reduces retirement savings) or outside super (premiums from personal cash flow, benefits paid directly to beneficiary).
Pays a lump sum if you become totally and permanently disabled. The definition matters significantly: Own occupation — cannot perform your specific job (broader, higher cost, not available inside super). Any occupation — cannot perform any occupation suited to your education/experience (narrower, lower cost, commonly inside super). Check your existing super fund policy to understand which definition applies to your default cover.
Pays a monthly benefit — typically 70–75% of pre-disability income — if you cannot work due to sickness or injury. Key features: Waiting period — 14/30/60/90 days before benefits start (longer = lower premium). Benefit period — 2 years, 5 years, or to age 65. Indemnity basis — APRA changes from 2021 effectively ended agreed value policies; current IP policies are indemnity-based (benefit reflects income at claim time, not when policy was taken out).
Pays a lump sum on diagnosis of a specified critical illness (cancer, heart attack, stroke, organ failure) — even if you continue working or recover. Designed to cover medical costs, rehabilitation, and lifestyle adjustments. Generally only available outside super. The list of covered conditions and how they are defined varies between policies and significantly affects value.
Inside vs outside super
| Feature | Inside super | Outside super |
|---|---|---|
| Life & TPD | Available | Available |
| Trauma cover | Generally no | Yes |
| Income protection | Limited terms | Fuller terms |
| Premium tax | Paid from 15% super env. | After-tax income |
| Death benefit path | Via super estate | Direct to beneficiary |
Insurance decisions involve personal health, income, dependants, debts, and tax position. This comparison is general only. Speak with a licensed financial adviser.
Want to review your cover with a specialist?
Understanding how these products work is one thing — knowing whether your cover is adequate is another. A licensed insurance adviser can review what you currently hold (including inside super) and explain your options. Finfo can make that introduction.
General insurance
Home & contents
Home covers the building structure; contents covers your possessions. Insure for replacement value — not market value — to avoid underinsurance.
Car insurance
CTP (compulsory) covers personal injury. Third party property covers damage to others. Comprehensive extends to your own vehicle. CTP is mandatory in all states.
Private health
Hospital cover for in-hospital treatment. Extras for dental, optical, physio. Lifetime Health Cover loading applies if hospital cover isn't held before age 31.
Travel insurance
Covers medical emergencies, cancellation, and lost luggage. Disclose pre-existing conditions — non-disclosure can void cover at claim time.
🚨 Investment scam warning signs
Investment scams are the most costly form of fraud in Australia — Australians lose hundreds of millions annually. Cryptocurrency scams, romance baiting ("pig butchering"), and fake managed investment schemes are most prevalent. Stop if you see any of these:
- Guaranteed returns with no risk — this combination does not exist in legitimate investing.
- Pressure to invest quickly or a "limited time" offer.
- Someone met online (social media, dating apps) who introduces an investment opportunity.
- You cannot find the business on ASIC's registers.
- You're asked to pay taxes or fees before you can withdraw your "profits."
- You're told not to tell family or a financial adviser about the investment.
How to verify a financial adviser
Anyone providing personal financial advice in Australia must be on the ASIC Financial Advisers Register (FAR). To check:
- Visit moneysmart.gov.au/financial-advisers-register
- Confirm the registration is current (not suspended or cancelled)
- Check their authorised AFSL — the licence holder is responsible for the adviser's conduct
- Confirm product authorisations match what you need (e.g. superannuation, insurance, SMSF)
Scammers sometimes impersonate real AFSL holders. Always check the register directly at asic.gov.au — not via a link provided by the person claiming to be an adviser.
Need to speak with a qualified professional?
Sometimes general information isn't enough — your situation is specific and you need someone who knows the full picture. Finfo can connect you with a qualified accountant or licensed financial adviser from our national network, at no cost to you.
AFCA — making a complaint
The Australian Financial Complaints Authority (AFCA) is the external dispute resolution scheme for financial services complaints — free to consumers. It covers financial products, advice, super, insurance, and banking. You must first complain to the firm directly (Internal Dispute Resolution). If that fails or the firm doesn't respond in time, escalate to AFCA at afca.org.au or 1800 931 678 (free call).