Australians splashing around millions on race day

Australians splashing around millions on race day

The 154th Melbourne Cup will again bring the nation to a standstill tomorrow. But are Australians galloping ahead of themselves and splurging on their credit cards to get in on the festivities?

Throwing the money on the horses

“Total expenditure equates to about $1,287 for each separate visit to the four-day Melbourne Cup Carnival,” IBISWorld general manager (Australia) Karen Dobie said in reference to 2013’s spending. 

IBISWord predicted a 12.4 percent increase in spending by Melbourne Cup attendees between 2012 and 2013. Coming into 2014, this figure could well increase again. 

In 2013, expenditure was predicted at $68.1 million. But just what are Aussies spending their money on when it comes to this famous event?

Looking good and eating well

According to IBISWorld, the biggest sector for Melbourne Cup spending was food and beverages, which marked an estimated 3.3 percent increase year-on-year to 2013.

During 2012, Aussies forked out $162.5 million on food and beverages during the Melbourne Cup Carnival — a figure that surged to an estimated $167.9 million the following year.

But Aussies aren’t just pulling out their credit cards for canapes and champagne. 

Fashion and beauty spending reached $46.7million dollars in 2012, and this figure jumped 13.9 percent to $53.2 million the following year. While a new dress, fascinator or trackside-ready pair of shoes could be highly desirable, you might start to wonder if Aussies’ savings accounts are taking a hit in order to keep up with the hype.

Betting a popular Aussie sport

It’s not just the Melbourne Cup that captivates the nation’s residents — and their wallets.

Events such as the Brownlow Medal are surging in popularity, according to new research from IBISWorld.

“The Brownlow Medal is the most prestigious individual honour in the AFL, and is quickly becoming the most popular betting event on the Australian sports calendar outside of the Melbourne Cup,” explained IBISWorld Industry Analyst David Whytcross.

“Australians are increasingly betting on the outcome of such events, with spending on sports betting forecast to rise to $425 million this year.”

In fact, the horse and sports betting industry is set to grow over the years ahead, thanks to better technology and more products on the go. Aussies are even betting via their smartphones nowadays.

While an event like the Melbourne Cup and the prestigious Brownlow Medal can drum up national pride and make a positive contribution to local economies — if not the national economy — individuals should be aware of the impact on their credit cards if they get a little too into the betting spirit! 

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Do you need a bank account to get a credit card?

To get a credit card, you need to show proof of income, which will almost certainly require you to have a bank account.

Can I link a bank account to Paypal?

Paypal is a safe and convenient way to pay online without the need to share your financial details. You can send and receive money or accept credit and debit cards as a seller using Paypal.

It’s easy to link your bank account to a Paypal account and start making transactions within minutes.

To start, you first need a Paypal account (it’s free to join). When setting up your Paypal account, you will be prompted to link a credit card or bank account (or both if you wish).

PayPal works without a balance; you can use Paypal to shop or send money when your balance is zero.

When your Paypal balance is zero, Paypal will ask you to choose your preferred payment method at the checkout.

This could be either your linked bank account or credit card. Your bank details can be updated if you change banks or credit cards.

Can you get a payday loan without a bank account?

Yes. Some payday lenders are willing to transfer loans to prepaid debit cards instead of bank accounts.

Can foreigners open bank accounts in Australia?

Many Australian lenders allow foreigners to open bank accounts in Australia. Often, this can be done before you arrive in the country – with no Australian address required. When you get to Australia, you can pick up your debit card, using your passport as identification.

Can you deposit money into somebody else's bank account?

One of the easiest banking tasks in the world is depositing money. You can even deposit money into someone else’s bank account if you wish.

The basic information you need to deposit money into a third-party bank account is:

  • Payee’s name
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  • BSB (or bank code, which is the branch identifier)
  • Account number

Including the name of the financial institution isn’t necessary – particularly with online banking – because the BSB will identify this for you.

A handy tip is to record yourself (or add a personal message) in the transaction description or reference. This will show up on the recipients account, letting them know who’s paid them the money.

How do you transfer money from PayPal to a bank account?

Transferring money from PayPal to an Australian bank account is simple. Just follow these three steps:

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  • Follow the instructions

The money will take three to seven business days to reach your bank account.

Once you’ve made the transfer request, it can’t be withdrawn.

How can I wire money to a bank account?

You can wire money to an Australian bank account either through your own bank or by using a money transfer company such as Western Union or MoneyGram. Either way, you’ll need the other person’s name, BSB number and account number. If you use a money transfer company, you might also need to provide the recipient’s address for large payments.

How do I open a new bank account?

There are a number of ways to open a new bank account – online, over the phone or in the branch. The trick is to decide what type of bank account you want beforehand.

It might sound like a simple enough task, but there are literally hundreds of bank accounts to choose from. And each offer their own banking features and benefits.

A comparison site like RateCity can help you work out what bank account product matches your needs.

Once you’ve made up your mind what you want, it’s advisable to have the following information ready for the application process.

  • A couple of forms of identification (such as driver’s licence, Medicare card, passport)
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  • Residential address, contact phone number and email (though email is not essential)

What do you need to open bank accounts?

Opening a bank account is one of the simplest online tasks you could perform. The hard part is deciding which type of bank account you want to open.

All banking institutions have a website where you hit ‘apply’ on the account of your choice and step through an application in less than 10 minutes.

Here’s a list of information that is generally required for applications.

  • Identification (driver’s licence, passport, proof of age card, proof of citizenship and/or birth certificate)
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If you decide to open a new account at the branch, make sure you ask beforehand what information you need to take with you, or take all of the above to be safe.

How to transfer money to another bank account

Transferring money to another bank is often called a bank transfer, and it can be done a few different ways.

Customers generally need three pieces of information to transfer money to another bank account. Customers need the account name, BSB and account number of the account they wish to transfer money to.

One way of transferring money to another bank account is in a branch with the help of a staff member; they will often give you a receipt as well as confirmation of the transfer.

Transfers can be also made via internet banking and phone banking.

Some banks also allow customers to make transfers via partnered ATMs, especially if the account is with the same bank.

Can the government take your money from your bank account?

There are some instances when the government can take money from your bank account. This generally occurs in situations where you have an outstanding government debt.

Before it can take money from your bank account, the government authority owed money would first need to issue a garnishee notice. 

A garnishee notice is issued by the government agency (such as Centrelink or the ATO) to a third party that holds money for you or owes you money.

To take money from your bank account, your bank would be issued with the garnishee notice requiring it to pay ‘your money’ to the requesting agency to satisfy the debt.

How do I open a bank account if I'm under 18?

The good news for savvy young folks like you wanting to take charge of your finances is that there are many bank accounts available for under-18s.

For bank accounts that require you to be 18 or older, you’ll have to rope in a parent or guardian to open the account for you.

Otherwise, you can apply by yourself online or at the branch of the bank, credit union or building society that has the account you would like to open. 

If applying online, you might be asked for a form of identification. For under-18s, this could be a Medicare card you’re listed on, your birth certificate and/or your current home address.

In most cases, you can verify your identity online (at the time of applying) or at the branch afterwards.

Can debt collectors take money out of your bank account?

Many people find themselves struggling to cope with debt at one time or another. In these cases, a debt collector could contact you to demand payment for a debt, to explain the consequences of you failing to pay a debt, or to organise alternative payment arrangements.

If you’re contacted by a debt collector, you may be wondering what their rights are and whether they can take money out of your bank account.

Creditors cannot access money in your bank account unless a court order (also known as a ‘garnishee order’) is made to allow creditors to recover debt by taking money from your bank account or salary.

If this happens, the creditor can take money out of your bank account unless you pay the debt in full or make an alternative payment arrangement such as paying in instalments through the court.

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The traditional way to deposit cash into your bank account is to go to a branch and give it to a teller. These days, many banks will allow you to make deposits through an ATM as well.