Do you even need an agent to sell your house? + My pre-Christmas financial challenge

Hi everyone,

A bit of a travel week for me this week with the highlight being a return to the Koch family roots. I spent Wednesday and Thursday at a two-day regional board meeting with the South Australian Tourism Commission on SA’s beautiful Yorke Peninsula.

The Kochs were part of an immigration program in the 1830s which saw German Lutherans leave their homeland and settle in SA. Many settled in the Barossa and started the wine industry while others, like my mob, became farmers around the Ardrossan area. So, it was great to go back to the region and chat with local tourism operators.

But I’ve also kept a close eye on a lot of new developments on the finance front.

In this newsletter:

• Jobs market weakening even further. Could it decide a rate cut?

• The federal government rethinks superannuation tax.

• How strong sharemarkets underpin strong superannuation returns.

• The cost-of-living crisis is still hitting Australian households.

• In a booming property market, do you still need an agent … or can you DIY sell?

• Secret accounts: Are they good or bad?

• The pre-Christmas financial fitness challenge.

The jobs market is starting to weaken even further

It is going to be a very interesting Reserve Bank board meeting on Melbourne Cup Day.

As I said last week, a stronger-than-expected September quarter CPI figure released the week before could see interest rates kept on hold for some time … or even rise if the CPI figures come in at over 3 per cent.

But the RBA is not only tasked with keeping inflation under control, it also has a responsibility to keep people in jobs. Yesterday, the unemployment rate unexpectedly jumped to 4.5 per cent in September - its highest level in nearly four years - as more people looked for work and employment growth slowed.

It’s a weak result that adds weight to calls for future rate cuts to help stimulate the economy and support job creation. The figure also caught economists off guard and marks the fifth straight month of disappointing jobs data.

That’s a worry.

Net employment increased by 14,900 in September from August, when it fell a revised 11,900. That was below market forecasts for a 20,000 gain. While full-time jobs increased by 8,700 in September after a steep 48,600 drop in the previous month, part-time employment rose by just 6,300. Hiring has slowed to a monthly average of 12,900 so far in 2025, down from the 2024 average of 32,600.

Across states and territories, Queensland, the Northern Territory and the ACT had the lowest jobless rate at 4.2 per cent in September, followed by Western Australia, New South Wales and Tasmania (all 4.3 per cent). Victoria has the highest unemployment rate at 4.7 per cent - the highest since October 2021. South Australia came in at 4.5 per cent.

Why the federal government is rethinking superannuation tax

Taxing unrealised gains on investments is incredibly messy and goes against the spirit of investing, so it’s good to see the federal government has had a rethink of its proposed new tax changes on superannuation balances over $3 million.

The tax will now be based on realised capital gains, along with interest and dividends.

But that’s not the only change to the original proposal.

There will now be two superannuation balance tax thresholds:

• Earnings on balances above $3 million will attract a 30 per cent concessional tax rate (balances under $3 million remain at 15 per cent).

• Earnings on balances above $10 million will be taxed at 40 per cent.

Both the $3 million and $10 million thresholds will now also be indexed in line with the Consumer Price Index and will increase in $150,000 and $500,000 increments. There will also be a cap on how much you can transfer into a transition-to-retirement component.

The government reckons around 90,000 superannuation accounts will be caught by the $3 million balance threshold, and another 8,000 will have the $10 million balance tax applied.

As I’ve said before, I don’t believe massive superannuation balances should benefit from the same concessional tax treatment as the average Australian. Super was designed to help people save for a comfortable retirement - not to serve as a tax haven for the ultra-rich.

Let’s not forget - the country and all taxpayers effectively subsidise these tax concessions. We’re the ones paying for it. And we shouldn’t be footing the bill for the generous tax breaks going to people with superannuation balances over $3 million or even $10 million. They’re more than wealthy enough to look after themselves.

Another important superannuation change also happened this week, affecting the Low Income Superannuation Tax Offset. This offset ensures low-income earners don’t pay more tax on their super contributions than they do on their regular income.

From 1 July 2027, the maximum offset will increase to $810, up from the current $500, and the income eligibility threshold will rise from $37,000 to $45,000. This change will mean approximately 3.1 million Australians will be eligible to receive the offset.

Higher sharemarkets continue to drive superannuation returns

Speaking of super, with international sharemarket returns staying strong, superannuation research house SuperRatings estimates the median balanced option returned 0.8 per cent to members over September. The returns cap off a strong first quarter of the new financial year, with the median balanced fund expected to return 3.6 per cent over the last three months.

The median growth option is estimated to grow 0.9 per cent in September, while the median capital stable option is estimated to return a more modest 0.5 per cent.

Pension returns were also positive for the month, with the median balanced pension option increasing by an estimated 0.9 per cent. The median capital stable pension option is estimated to rise 0.6 per cent over the month, while the median growth pension option is estimated to rise 1 per cent for the same period.

The cost-of-living crisis is not easing - times are still tough for many Aussies

Just 7 per cent of Australians believe the cost-of-living crisis has improved over the past year, despite months of financial resilience and government support, according to Compare the Market’s 2025 Household Budget Barometer.

Adding to the gloomy outlook, just 22 per cent felt optimistic about the future of the economy, despite progress on wrangling inflation and a lower cash rate.

While budget pressures persist, the nationally representative report reveals that Australians are actively countering rising costs by seeking out greater savings.

Analysis found that nearly three-quarters of Australians surveyed (73 per cent) had shopped around for a better deal in the past 12 months.

Year-on-year, there’s been a 2 per cent increase in people searching for cheaper car insurance (up to 47 per cent in 2025), a 4 per cent jump in people comparing their home and contents cover (up to 32 per cent), and 4 per cent more people switching and saving on their electricity plans (up to 34 per cent).

Meanwhile, the report boasts other insights around financial pressures, including:

• Average insurance premiums in Australia’s five largest capitals surged in the 12 months to September 2025, with the cost of covering a four-bedroom home up nearly 23 per cent, and a typical car up almost 18 per cent.

• Credit card debt among survey respondents rose 9 per cent year-on-year, while Buy Now, Pay Later usage jumped 8 per cent.

• The median quarterly electricity bill held steady at $350 in 2025 (or $1,400 annually), unchanged from the median spend in 2024.

• One in five Australians surveyed (21 per cent) rated groceries as their most worrisome household bill, with the average person spending $10,304.32 on groceries each year.

It’s great to see that comparing, switching, and shopping smarter have become key tools helping Australians navigate a tough few years of financial strain. Prices aren’t coming down - so we’re simply getting better at finding value ourselves.

The report also highlights the growing role of intergenerational support, with grandparents helping their adult children, and young people offering a lifeline to ageing family members.

While the government has chipped in with rebates for energy and childcare, the most meaningful support has come from individuals stepping up for their families. Tough times often bring out the best in our communities - but everyday Aussies shouldn’t be left to carry such a heavy load alone. We need stronger action from governments and regulators to step in and hold companies to account when price hikes go too far.

To help Aussies get more bang for their hard-earned buck, I’ll be hosting a live Q&A on Facebook and TikTok on Wednesday, October 29 at 11am: HOW TO BE A BILL GENIUS: What your providers don’t want you to know. Joined by Chris Ford from Compare the Market, we’ll unpack the savviest tips and tricks to save potentially hundreds, even thousands, on your household bills. Hit the ‘Going’ button and bring your questions!

In a booming property market do you need a real estate agent?

Property is being snapped up like toilet paper during a pandemic right now. With low supply and high demand, homes aren’t staying on the market for long, which has led some people to ask:

“Do I need a real estate agent in a booming market to sell my home?”

It’s a fair question. Skipping agent fees and pocketing the commission (which can be hefty with rising prices) is tempting.

But selling a property is a big task - and not everyone should go it alone. A good agent brings experience, negotiation skills, a list of already interested buyers they have met at other property viewings, and manages the stressful parts. That kind of value can go well beyond dollars.

Still, if you’re curious about the DIY route, here's what you could save and also what’s involved.

A hot market

Australia’s housing market is just getting warmer, along with the weather.

According to Cotality, September saw the strongest monthly rise in national dwelling values since October 2023. Their most recent Home Value Index below shows properties have risen another 0.8 per cent nationally:

Property supply is at historic lows, with listings 5.8 per cent below last year and 16.7 per cent below the five-year average … fewer homes are hitting the market and it’s increasing competition and pushing up values.

What’s more, the national median time on the market to sell a property is just 35 days (as of the end of June 2025). In cities like Perth, it’s a very quick 13-14 days.

In this kind of ‘seller’s market’, you might be tempted to sell your property yourself - and save on the commission.

How much agents charge

Agents typically charge 1.5 - 3 per cent of the sale price.

Commissions are generally lower in metro areas and higher in regional ones. There are also additional costs such as listings, advertising, photography, signage, floor plans, and styling.

For a $1.5 million home, a 2 per cent commission is $30,000. Add marketing, and you could be looking at $35,000 - $40,000. For more ‘premium’ listings, this can easily go beyond $50,000.

Sale by owner

Keeping that commission yourself is obviously appealing. But there are other pros to managing your own property sale.

You control the process and talk directly to buyers … giving them genuine insight into the home and neighbourhood.

You also set the viewing schedule around when it suits you and can choose to be flexible with this.

If you enjoy it and feel confident, handling price negotiations can be fun. Highly organised people who are good with paperwork may also prefer to control things.

If this all appeals, here’s how to sell your property yourself.

DIY property sale

• Do your homework - Research similar sales in your area. Use online tools and get an independent valuation (by a property valuer, not just the local real estate agents).

• Prepare the property - Clean, declutter and consider staging by a professional property stylist. Use quality photos and make your home feel warm at viewings - bake biscuits beforehand or light scented candles.

• List your property - Use private-sale platforms to access major sites (a few are: Sale By Owner, Buy My Place, Property Now, Minus The Agent). Packages usually cost around $800 - $1,200 (or more depending on listing type and any additional costs - don’t get stung, know what these are before you agree).

• Market it - Share your property listing on social media, tell friends and family, consider targeted ads, and letterbox drop in your neighborhood.

• Manage viewings - Hold open houses and answer any questions from prospective buyers. Be prepared to be a salesperson by showcasing and highlighting your property’s best features.

• Negotiate and accept an offer - Know your bottom line. Once you agree on a sale price (and other negotiated things like settlement periods), engage a solicitor or conveyancer.

• Finalise legal steps - Private sales still require contracts, cooling-off periods, and title transfers - so legal diligence is a must.

When it’s best to use an agent

DIY owner sales are not for everyone. Consider an agent if:

• Your property is unique or high-end - Distinct homes such as ‘heritage listed’ or ‘luxury’ need expert marketing and reach.

• You don’t have time - If you don’t have the time to dedicate to every step of the process, then you probably should outsource it.

• You’re not confident negotiating - Agents are professional negotiators who are skilled at creating buyer competition and securing a top price - often covering their fee.

• You wish you had a buyer network - Agents know who’s in the market and how to reach them.

My opinion?

Yes, in this market of undersupply and high buyer demand, you can very likely sell your home without an agent and potentially save tens of thousands.

But it takes effort, skill, and a lot of time. It’s also a stressful experience for some and for this reason alone, it isn’t for everyone.

Interestingly, ‘For sale by owner’ homes make up just 1 per cent of Australian residential property sales, so it’s safe to say most Australians still prefer using an agent.

So be honest with yourself and ask: “Do I have the mental and emotional energy, along with the time and skills to sell my property myself?”

Whatever you choose to do, just remember the goal is the same: getting the best result for one of your biggest assets.

When a ‘secret’ account does (and doesn’t) make sense

Hiding things in a relationship is a bad habit, whether it’s the purchase of new clothes or a small ding on your partner’s car. And while these sorts of guilty tales don’t usually cause too much trouble, hiding significant amounts of money from your partner certainly can.

It is financial infidelity.

There are also some people in relationships where they are financially bullied - to the point where they have no idea about the family finances, with a controlling partner who refuses to reveal what they do with the cash.

I have seen so many people distraught and penniless when a controlling partner walks out on them and takes the family assets with them. Then this is followed by a long and costly legal process to get it back.

And then there are others who suspect their partner has a secret stash, but this is denied whenever the subject is broached.

So while I never condone financial secrets in any relationships, there can be circumstances, for example escaping domestic violence and financial infidelity, where some people may need to squirrel money away.

Here are a few tips and tricks to do just that:

• Making small deposits into a high-interest savings account is the best place for a secret stash. The money will accrue at a decent rate of interest, and deposits can be made in person at the bank to avoid leaving a trail of personal statements. If that’s a hassle, a good strategy is to set up direct debits under an unsuspecting title, like ‘magazine subscription’.

• If you want to be really secretive, turn internet browsers on to ‘private’ or ‘incognito’ browsing mode so that any online banking visits don’t show up in the internet history. And when setting the account up, be sure to arrange for statements to be emailed to a private personal email address or posted to work.

• As for getting the cash, overdrawing cash for groceries, arranging for bonuses to be paid in cash or into a separate account, and overpaying credit card bills are all common ways to keep the money accruing in relative secrecy.

Suspect financial cheating?

If you’re the one playing detective, internet history, email, receipts, and increased use of cash for transactions are all likely places to start the search. That said, it’s often as simple as looking for bank statements posted in a partner’s name or from an unfamiliar bank.

That includes credit card accounts, too. If an overpayment is made on a credit card (a repayment above the amount of credit outstanding), the account will go into surplus and create what’s effectively a new savings account. Very sly.

If your bank accounts and credit cards are in joint names, you have every right to ask the bank for account details and have them send statements to you personally.

By the same token, PayPal accounts can be used to make secretive payments, so if there’s an unusual amount of visits to this virtual wallet site, it’s probably worth asking a few questions.

Outside the obvious places, social media can be a real eye-opener too, with people putting more and more of their life on social and professional networks like Facebook, Instagram and LinkedIn. Perhaps it’s a bit of bragging, a few lavish photos, or new relationships with finance professionals - the information on your partner’s socials can give you a sense of whether they’re living beyond their (and your) means, and make you legitimately ask where the money is coming from.

Yes, there may also be more legally questionable ways to crack the secrecy, however, even within a relationship, some types of monitoring can be illegal and should be avoided.

A word of warning

Please be conscious about reading too much into things because you’ll just end up getting paranoid! The sooner you can talk issues through with your partner, the better.

As to going about the money confrontation, make sure it’s done with a cool head in a private place. If you discover questionable accounts or payments, leave it for a few days to clear your thoughts and then raise the issue.

Remember, it’s not always untoward, so the last thing you want to do is dive in with wild accusations that you’ll regret later.

That said, to keep this sort of snooping out of a loving relationship in the first place, all it takes is a regular and open discussion about finances. And if you do want to save a separate stash for a rainy day, let your partner know that you’re saving a personal emergency fund for whatever reason.

The pre-Christmas challenge

As we all start to prepare for Christmas and the summer holidays, it’s important to make sure our finances are in good shape to enjoy every moment.

Here are a few challenges for you to complete which will make an enormous difference to your finances.

• Find out your credit rating: Get a copy of your credit file so you know what’s on it. Then set up an alert service so you’re notified of any irregular activity.

• Upgrade to a better card: Rewards, rates and fees change often, particularly when official interest rates are changing so rapidly. So search comparison websites to make sure you have the right credit card for you.

• Triple the return on savings: Do you have cash going nowhere in a savings account? Bank savings accounts typically pay less than 1 per cent. You can open an online account with a number of financial institutions which pay between 4 and 5 per cent at call.

• Track your returns: It's a pain to figure out how your investments are doing, especially if your money is scattered among several accounts. Spend time setting up a portfolio tracker so that you can start calculating your own rate of return.

• Find out if you're being paid what you’re worth: Before you can make your case for a raise, you need something to measure yourself against. Go to a recruitment website like seek.com.au and price your job.

• Estimate your life insurance: How much coverage is enough? For a fast ballpark estimate, multiply your annual income by five, but it also depends on your obligations and stage of life. Life cover should at least be enough to pay off any debts and have some left over to provide for any surviving relatives.

• Save more of your wage: Set up an automatic debit which kicks in on pay day and sweeps 10 per cent of your salary into a separate investment account.

• Assess recurring charges: Scan your credit card statement for those automatic monthly charges you normally just pay. Ask yourself whether you're getting your money's worth. How often do you go to the $75-a month gym? How about that cheese-of-the-month club? Cancel what you're not using.