Editor’s letter

Should you ditch your plans to start a new business, change jobs or buy a house because of the recession? Put your big projects on review, sure, but keep your eyes open for opportunities that wouldn’t have come up if not for Covid-19 – and there are plenty of them out there.

Just last month, one of the big banks decided to reduce its lenders mortgage insurance (LMI) cost to just $1 for eligible first-time home buyers. That’s even cheaper than buying a chocolate bar these days and I bet it wouldn’t have happened if we didn’t have a crisis that forced us to re-evaluate the way home loans are structured and what would work for consumers.

It’s not so much that LMI costs a buck but it sends a strong signal to the banking sector that radical changes are possible to keep businesses buoyant and the economy afloat. It’s a win for banking customers and you can find out more about how LMIs work in this issue (page 54).

The tax office has also relaxed its rules on what qualifies as home office tax deductions. I use the term “relaxed” very loosely here as there’s nothing relaxing about dealing with your taxes, but considering the ATO now counts “a laptop on the couch” as meeting the guidelines of a dedicated workspace then it’s definitely worth reading our work-from-home article (page 58).

In every issue, we try to come up with a mix of stories that are low-touch and high-touch in terms of the level of effort you need to put in to take advantage of the finance tips and money-saving ideas. Our cover story (page 34) explores what you can do for your family to help them avoid the financial rut that could set in when money is tight. But when blood ties are involved, it pays to define the boundaries and expectations well beforehand. Turn to page 51 to avoid any drama at your next family gathering.

We hope this issue helps you get those big projects back on track.