Notice of Special General Meeting

The Special General Meeting of Community First Credit Union Limited ACN 087 649 938 trading as Community First Bank (Community First) will be held on Thursday, 12 December 2024 at 2.00pm at 67-73 St Hilliers Road, Auburn NSW 2144.

Explanatory Notes in relation to the Annual General Meeting are included at the end of this Notice. Please read these notes carefully.

Agenda

  1. To consider and, if thought fit, to approve the following special resolution submitted by the Board of Directors:
    That the members of Community First Credit Union Limited approve the proposed total transfer of business by Illawarra Credit Union Limited to Community First Credit Union Limited, and that the proposed transfer take effect on 1 February 2025 or on such other date as the Australian Prudential Regulation Authority determines.

    Notes

    To be passed, this resolution requires the approval of at least 75% of the votes cast by members at the Special General Meeting, in person or by proxy.

    The reason for the proposal along with additional information is set out in the Information Document enclosed with this Notice. Please read the Information Document carefully.

    Your Board resolved to approve this proposal and recommends that you vote FOR this resolution.

  2. If members approve the special resolution in Agenda Item 1, to consider and, if thought fit, to approve the following resolution to pay a benefit to each director not continuing on the board after the transfer of business:
    That the members approve and authorise payment by Community First Credit Union Limited, immediately prior to the transfer of business from Illawarra Credit Union Limited taking effect, to each of the following persons if they are a director of Community First Credit Union Limited at that time.
    • Mr Ken Pickering of $245,150
    • Ms Nuria Kelly of $211,820
    • Mr Stuart Korchinski of $211,820
    • Mr Rocky Scopelliti of $211,820

    subject to a condition that the person must not nominate to be an elected director of Community First Credit Union Limited for 3 years after the transfer of business from Illawarra Credit Union Limited to Community First Credit Union Limited. These payments are separate from, and in addition to, the remuneration of directors under Rule 16.1 of Community First Credit Union Limited’s Constitution.

    The purpose of this resolution is to pay benefits to the Directors who will not be joining the board of the merged company, acknowledging their contribution to the mutual over a number of years. The amount paid to each non-continuing Director is the equivalent of 3 times their average director’s annual remuneration over the last 3 years.

    These payments are separate from, and in addition to, the aggregate director’s remuneration members have previously approved.

    Please note that the transfer of business can proceed whether or not members approve payment of these director benefits.

    Information about non-continuing Directors:

    Mr Pickering, Ms Kelly, Mr Korchinski and Mr Scopelliti will not proceed to the new organisation as Directors if the merger resolution is approved. Details containing their relevant experience can be found on the Community First Bank website and in the annual report.

    As a condition of receiving the benefit, Mr Pickering, Ms Kelly, Mr Korchinski and Mr Scopelliti must agree not to nominate to be an elected director of Community First Credit Union Limited for a period of three years after the transfer of business.

    Your board resolved to approve this proposal and recommends that you vote FOR this resolution.

By Order of the Board

Hung Truong
Company Secretary
24 October 2024

Proxies

You can appoint a proxy to attend and vote at the meeting on your behalf. Your proxy does not have to be a member of the company.

An Appointment of Proxy form is available on this web page. It includes instructions on how to vote using a proxy. Please read these instructions carefully.

To be valid, your Appointment of Proxy form must reach the company no later than 48 hours before the start of the Special General Meeting.

Notice of meeting

Members who are entitled to vote at the meeting can request Community First to give personal notice of the meeting and this can be done by contacting Community First on 1300 13 22 77.

View Merger Updates here

Notice of 2024 Annual General Meeting

Our Annual General Meeting will be held on Thursday 28 November 2024.

The Annual General Meeting of Community First Credit Union Limited ACN 087 649 938 trading as Community First Bank (Community First) will be held on Thursday, 28 November 2024 at 2.00pm at 67-73 St Hilliers Road, Auburn NSW 2144.

Explanatory Notes in relation to the Annual General Meeting are included at the end of this Notice. Please read these notes carefully.

Agenda

  1. Minutes: To consider the minutes of the 64th Annual General Meeting held on 16 November 2023.
  2. Financial Statements and Reports: To receive Community First’s Financial Report, Directors’ Report and the Auditor’s Report for the period ended 30 June 2024.
  3. Director Appointments: To consider, and if thought fit, pass each of the following as separate resolutions:

    Appointment of Stephen Nugent
    3.1 That Stephen Nugent be reappointed as a Director of Community First Credit Union Limited.

    Appointment of Nuria Kelly
    3.2 That Nuria Kelly be reappointed as a Director of Community First Credit Union Limited.
  4. Directors’ Remuneration: To consider, and if thought fit, pass the following resolution:

    4.1 That the maximum aggregate remuneration of Elected Directors be set at $688,670 for the financial year ending 30 June 2025.

Proxies

You can appoint a proxy to attend and vote at the meeting on your behalf. Your proxy does not have to be a member of Community First. An appointment of proxy form can be obtained by contacting Community First on 1300 13 22 77.

To be valid, your Appointment of Proxy form must reach Community First no later than 48 hours before the start of the Annual General Meeting.

By Order of the Board

Hung Truong
Company Secretary
24 October 2024

Explanatory Notes

The Explanatory Notes that follow provide important information regarding the terms of business to be considered at the Annual General Meeting.

Agenda Item 1: Minutes
Members will be given an opportunity to consider and note matters contained within the minutes of the 2023 Annual General Meeting held on 16 November 2023. The minutes will be available at the meeting or by contacting Community First on 1300 13 22 77.

Agenda Item 2: Financial Statements and Reports
Section 317 of the Corporations Act 2001 requires that the Financial Report, Directors’ Report and the Auditor’s Report be presented at the Annual General Meeting.
Members will have a reasonable opportunity at the meeting to ask questions and make comments on these reports and on the business and operations of Community First. A copy of the 2024 Annual Financial Report will be available on our website at www.communityfirst.com.au at least 21 days before the Annual General Meeting.

Agenda Item 3: Director Appointments The Directors appointed at this Annual General Meeting will hold office for a term ending at the conclusion of the Annual General Meeting in 2027.
A postal ballot was not necessary this year because the number of eligible nominations received equalled the number of vacancies to be filled. Accordingly, the appointments may be made by separate resolutions at this Annual General Meeting.

3.1 Appointment of Stephen Nugent

In accordance with the Constitution, Mr. Nugent retires by rotation. Being eligible, he offers himself for appointment for a further term. Mr. Nugent has been interviewed by the Board Nomination Committee, and in the view of the Committee, has demonstrated his ability to meet the requirements to be a Director of Community First.

Mr Nugent joined the Board as a Director in May 2002. Stephen has more than 40 years experience in the banking, finance and insurance industries and was formally the Chief Customer Officer for The Hospital Contributions Fund of Australia Limited (HCF). Stephen is also a Director of the Customer Owned Banking Association and the Sydney Children’s Hospitals Network.

Stephen brings to the Board a wide range of experience in project and operations management, process improvement and reform programs focused on digital transformation, sales, marketing, customer service, retail banking, financial and property management, hospitality, retirement aged and home care, strategic planning and compliance.

3.2 Appointment of Nuria Kelly

In accordance with the Constitution, Ms. Kelly retires by rotation. Being eligible, she offers herself for appointment for a further term. She has been interviewed by the Board Nomination Committee, and in the view of the Committee, has demonstrated her ability to meet the requirements to be a Director of Community First.

Ms Kelly joined the Board as an Associate Director in May 2002 and was elected to the Board in 2003. Nuria has more than 20 years experience in financial planning and management, with qualifications from the Securities Institute of Australia and an Associate Diploma in Accounting and a Diploma of Law. Nuria has retired as principal of a Financial Planning and Stockbroking Practice with Bridges Financial Services (IOOF) and brings to the Board her experience of working closely with Community First Members through her financial planning and stockbroking role. Nuria was also previously Head of Financial Services Sydney with RSM Australia (RSM Bird Cameron).

Recently she has been working as a Governance and Risk Management Consultant, assignments have included senior manager executive positions such as Head of Legal and Compliance for financial services firms. She is a Fellow of the Governance Institute of Australia and a member of the Institute of Public Accountants.

Nuria was also a Director of Foot of the Mountains Pty Ltd which owned retail businesses in the Blue Mountains up to December 2019.

Agenda Item 4: Directors’ Remuneration
4.1 The Board is seeking approval of aggregate remuneration for Directors be set at $688,670 for the financial year ending 30 June 2025.

The Board has an established method for developing the recommended level of directors’ fees to be submitted for approval by members at the Annual General Meeting. The recommendation is based on the results of the independent annual Mutual Financial Board Remuneration Survey conducted by external Management Consultants and other market surveys.

Appointment of Proxy form

View the 2023/24 Annual Report

Notice of Meeting

Members who are entitled to vote at the meeting can request Community First to give personal notice of the meeting and this can be done by contacting Community First on 1300 13 22 77.

Why rental yields matter for investors

Thinking of an investment property? There are suburbs where rent returns can outpace mortgage interest rates.

Like the sound of a 9% rental yield? How about 13%? For investors keen on pocketing healthy rent returns at a time of high interest rates, it pays to know where to look.

Price growth tends to hog the headlines. But rental income can go a long way towards helping investors manage the ongoing costs of a property including repayments on an investment home loan.

And it turns out that some neighbourhoods are punching above their weight for exceptional rental yields.

What is rental yield?

Rental ‘yield’ is measured as the annual rent on a property divided by its market value, expressed as a percentage.

For instance, if an apartment rents for $500 a week, it will generate $26,000 in annual rent. If the unit is valued at $600,000, the ‘gross’ (before costs) rental yield will be 4.3%.

Individual investors may find their ‘net’ (after costs) yield varies from official figures. That’s because net yield takes into account all the costs associated with a particular property – ranging from strata levies on an apartment to land tax on a house.

That said, the beauty of knowing a property’s gross rental yield is that it lets you compare the rent returns on different properties, different locations and various types of properties.

Where rental yields can top 9%

Properties that notch up high rental yields can be attractive to investors who rely on their rental as a source of personal income. The rent these dwellings generate can go a long way to paying for key property expenses such as mortgage interest.

When it comes to looking at high-yield suburbs, it makes sense to have some context. As a guide, the median gross rental yield for apartments and units nationally is 4.5% according to CoreLogic, while the median gross rental yield for houses is 3.5% 1 .

The thing is, you could earn more – a lot more in fact, depending on where you buy as noted below.

Data from PropTrack, the research arm of listing portal realestate.com.au, shows that across our capital cities, Moulden – an outer suburb of Darwin, tops the leaderboard for yields on houses, returning a healthy 7%.

If you’re hungry for higher yields, apartments in Melbourne’s Caulfield East are recording yields of 10%. In Orelia, a southern suburb of Perth, units are dishing up yields in the order of 9.2%.

Top 5 suburbs for rental yield – capital cities

For truly supersized yields, it can pay to look at regional locations.

Topping yields for houses in regional locations is Kambalda East, located 630 kilometres east of Perth, where investors can earn gross rental yields of 12.2%.

Western Australia also takes out the title for highest gross rental yields on regional apartments. Investors in Peggs Creek (1,527 kilometres north of Perth) can earn a yield of 13.9%, or 13.8% in South Hedland (1,1616 kilometres north east of Perth).

Top 5 suburbs for rental yield – regional markets

The catch of high rental yields

Of course, not everyone wants to invest in a location that’s a day’s drive from a major city.

But the catch of high yields isn’t just about the tyranny of distance.

According to PropTrack, suburbs in Darwin have historically had higher yields relative to other capitals because a larger proportion of households rent their home, meaning there is higher demand for rentals 4 .

The same logic applies to many mining regions, where the population may be transient. This explains why many of the regional locations with the highest yields are heavily dependent on mining and resource activity.

What matters is that you choose the investment property and location, that meets your personal strategy – whether that is a healthy rental yield or strong capital growth. And for many investors, capital growth is where the action is.

Over time, capital growth can be worth a lot more than higher annual rents. Moreover, some investors actually prefer properties with low rental yields as this can boost the benefits of negative gearing, allowing the investor to enjoy tax benefits.

The bottom line

The main point is that rental yields vary widely – not just within the same city, but even within the same suburb. So, it is definitely something for investors to consider as rent can be a valuable source of income to help manage property costs.

Bear in mind too, there can be a sizeable difference between gross and net yields depending on the property you select. This can make it worth looking into the ongoing costs, which may include strata levies (for units and townhouses), land tax, council rates, insurance and likely repairs and maintenance expenses. On the plus side, many of these cost may be tax deductible.

However, as a long term investor, it is worth looking at the capital growth prospects of a location because in many cases, this is where the big gains can be found over time.

To start your property journey, take a look at the investment home loans offered by Community First. Our competitive rates and interest-only options can help you enjoy success as a property investor.

Sources:

1 https://www.corelogic.com.au/__data/assets/pdf_file/0017/23651/CoreLogic-HVI-Aug-2024-FINAL.pdf
2 https://www.realestate.com.au/news/property-investing-hotspots-the-suburbs-where-investors-are-getting-the-best-returns/#yield
3  https://www.realestate.com.au/news/property-investing-hotspots-the-suburbs-where-investors-are-getting-the-best-returns/#yield
4 https://www.proptrack.com.au/insights-hub/the-capital-city-suburbs-with-the-highest-investment-yields/

We will be closed for Labour Day

Our call centre and stores will be closed during Labour Day on Monday 7th October and re-open as normal on Tuesday 8th October. You can still check your account balances or make transfers using CFB Internet Banking and Mobile Banking.

Blockheads beware – the one factor the reno shows don’t address

Home renovation shows are in abundance, they inspire plenty of Aussies to launch their own renovation projects. But there’s one key factor the shows don’t address.

Popular renovation reality shows have inspired plenty of Aussies to renovate their own home or rise to the challenge of buying a ‘fixer upper’.

While small screen renovations make for compelling viewing, these shows often gloss over one key factor: How to pay for the project.

Planning a renovation project

It’s no surprise that renovation reality shows focus on the latest home designs, with a bit of human drama for added interest.

A major renovation can add tremendous value to a property, and enhance the residents’ lifestyles but there is plenty to sort out long before you start comparing colour swatches and carpet samples.

Having your plans approved by the local council is an absolute must-do though it can be a drawn out process.

In NSW, for example, in 2022-23 it took an average of 106 days for a development application (DA) to be approved. In some areas that timeframe pushed out to 281 days 1 .

It is also critical to set a renovation budget. The cost of home improvements varies widely. According to trades site HiPages 2 , in 2024, you can expect to be quoted:

  • $10,000 – $45,000+ for kitchen renovations
  • $2,000 – $10,000+ for garden renovations
  • $10,000 – $35,000+ for bathroom renovations
  • $10,000 – $15,000+ for living room renovations
  • $2,000 – $35,000+ for bedroom renovations.

Whatever the final cost appears to be, think about adding a bit more. Renovation budgets have a habit of blowing out, and it’s important to allow some wiggle room.

Where does the money come from?

If your renovations are smaller in scale, you may be able to pay for the project using personal savings. The advantage is that you won’t pay additional funding costs such as interest. However, it makes sense to ensure you still have sufficient funds to cover unexpected or emergency bills.

Further along the scale, you may want to use a personal loan.. Community First comes to the party with a variety of options.

Our unsecured Home Improvement Loan can provide the cash you need to make your home projects happen. Borrow from as little as $1,000 with loan terms from 1-10 years, and enjoy the freedom to pay out your loan early without penalty.

Our low rate Green Loans are especially designed to fund environmentally-friendly home improvements. Loans start from just $1,000 and can be used for ‘green’ projects such as installing solar panels or rainwater tanks.

For a major renovation project, a home loan top up may be an easy solution. This can also be an opportunity to review your old home loan and check if it’s still the right choice for your needs.

Refinancing to a Community First home loan can give you the potential savings of a competitive rate, while also providing the funding needed to complete improvements. You may be able to borrow against up to 80% of the available equity in your home which can be an alternative way to finance a renovation, giving you the benefit of competitive home loan interest rates.

Finally, for smaller projects you can also consider a low rate credit card. Ours come with one of Australia’s lowest ongoing credit rates and with up to 55 days interest free, it can be a handy companion in your wallet.

Create your own winning renovation

Renovation projects can be highly rewarding, and hopefully yours won’t have all the drama of an episode of a reality TV show.

If you get the plans right, and secure the funding best suited to your needs and budget, you can definitely come out a winner.

To learn more about financing your next home improvement project, call the Community First team on 1300 13 22 77, or visit one of our Community First stores.

Credit eligibility criteria, terms and conditions, fees and charges apply.

This information on this website is general advice only and does not take into account your objectives, financial situation or needs (your “personal circumstances”). Before deciding whether to buy any product on this website you should consider your personal circumstances. You should read and consider the Terms and Conditions when deciding to use any product (terms and conditions, fees and charges may apply). Our product Conditions of Use are available on this website.

1 https://www.planning.nsw.gov.au/policy-and-legislation/housing/housing-supply-insights/quarterly-insights-monitor-q4/development-assessment-pathways
2 https://hipages.com.au/article/renovation_guide_how_much_does_it_cost_to_renovate

Changes to our Term Deposit interest rates

We’ve recently changed our Term Deposit interest rates

Changes to Term Deposit interest rates

Effective Tuesday, 17 September 2024, a number of Term Deposit interest rates have changed:

Balances $5,000 – $49,999 & Balances $50,000-$99,999

  • Interest rate for 2 & 3 year terms have decreased by 0.10% p.a.

Balances $100,000 – $249,999 & Balances $250,000-$1,000,000

  • Interest rate for 2 & 3 year terms have decreased by 0.10% p.a.

To view our current Term Deposit interest rates, click here. 


Last updated: 17 September 2024

The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product.

Our 15-year partnership with McGrath Foundation surpases $1.5 million milestone

Since 2009, we’ve donated over $1.5 million to the McGrath Foundation with the support of our wonderful members who choose our pink debit and credit cards.

Community First Bank is proud to reaffirm its ongoing support for the McGrath Foundation, a partnership that has generated over $1.5 million in donations since 2009. This significant achievement underscores our unwavering commitment to this meaningful cause.

For a decade and a half, Community First Bank has been dedicated to making a positive difference through its partnership with the McGrath Foundation. With the support of members who choose Community First’s pink debit and credit cards, funds have been raised to support the McGrath Foundation who raise money to fund McGrath Breast Care Nurses right across Australia and invest in their professional development to ensure people with breast cancer receive the highest standard of care.

McGrath Breast Care Nurses provide trusted, consistent and knowledgeable support for families by offering medical expertise, clinical care and psychosocial support from the time of diagnosis and throughout treatment. There are now more than 233 McGrath Breast Care Nurses in communities across Australia who have supported more than 143,000 families since 2005.

The ongoing impact of breast cancer

Breast cancer remains the most commonly diagnosed cancer among women in Australia. In fact, one in seven women in Australia will be diagnosed with breast cancer at some point in their lives. This year alone, an estimated 58 people will receive a breast cancer diagnosis every day.

The incidence of breast cancer in Australia is on the rise, with 20,973 women and 221 men expected to be diagnosed this year. While the number of cases continues to grow, there is hope—relative survival rates for women have significantly improved over time. The five-year relative survival rate has increased from 77.3% in 1989-1993 to an encouraging 92% today 1 .

Reaching a marvelous milestone through Pink Card initiatives

Community First’s innovative Low-Rate Pink Credit Card donates half of the annual fee each year and the Pink Everyday Account donates a portion of the monthly fee. Together, the pink card products have made raising over $1.5 million possible.

These contributions are crucial in funding McGrath Breast Care Nurses, with approximately $140,000 required to support one nurse for a year.

“Community First Bank is deeply committed to supporting the McGrath Foundation and the essential work they do in our communities,” said John Tancevski, CEO of Community First Bank. “We are incredibly proud of the collective efforts of our staff, members, and partners in reaching this remarkable milestone.

“The McGrath Foundation’s mission to provide vital support to those affected by breast cancer aligns closely with our values, and we are honoured to contribute to their ongoing efforts.”

Still more work to do

Despite significant progress, breast cancer remains a serious concern, and it is estimated to be the second leading cause of cancer death among women, following lung cancer. In 2023 alone, an estimated 3,305 lives were lost to breast cancer, including 3,272 women and 33 men. “These sobering statistics highlight the ongoing need for research, awareness, and support for those affected by this disease,” John Tancevski added.

“In light of these realities, and as we continue our partnership with the McGrath Foundation, Community First is committed to increasing awareness and encouraging greater participation from our employees and members in these vital initiatives.”

If you’d like to contribute to the McGrath Foundation and support individuals and families affected by breast cancer, consider applying for one of Community First’s pink products. Credit eligibility criteria, terms and conditions, and fees and charges apply.

Community First is honoured to be part of the McGrath Foundation’s ongoing mission, making a positive impact by funding McGrath Breast Care Nurses, who offer expert knowledge, personal care, and genuine compassion to those in need.

You can apply for the Low Rate Pink Credit Card or Pink Everyday Account from anywhere in Australia by visiting www.communityfirst.com.au or calling 1300 13 22 77.



1. Deloitte Access Economics analysis of McGrath Breast Care Nurse data and 2016 Census Data
2. Health Consult, “Evaluation of the Second Federal Government Funded Breast Care Initiative – Final Evaluation Report” 2016
3. Australian Institute of Health and Welfare 2024. Cancer data in Australia. Cat. no. CAN 122. Canberra: AIHW. Accessed 15 August 2024; https://www.aihw.gov.au/reports/cancer/cancer-data-in-australia

5 game-changing trends revolutionising banking and payments

New technology has shifted customer preferences and behaviours, especially with the rise of more convenient forms of payment. Here are five trends you may have noticed.

In an increasingly digital age, the way we do things tends to change pretty quickly, and banking is no exception. Payment processes will likely change even further in the future.

While many customers love their new ways of banking, some will miss habits of the past, such as stepping into branches for all banking services and banking cheques. Customer-owned banks recognise that and are always looking for new ways to provide the best service to members, while keeping a lid on costs.

With that in mind, here are five trends that are changing the way customers pay and interact with their bank.

1. Cash is no longer king

Only a decade ago, it was fairly common for people to load up their wallets with cash before a trip to the shops; however, that’s becoming a thing of the past.

With new, more convenient ways to pay – such as debit/credit cards, PayID, Apple Pay and Google Pay – few Australians now carry cash. The change has happened very quickly. Reserve Bank of Australia data shows one-in-20 people used cash for all in-person transactions in 2022, compared with one-in-10 three years earlier.

2. Cheques are being phased out

Before the explosion of new payment options, if you had a big item to buy, you probably would have used a cheque. However, Federal Government data shows there has been an almost 90 per cent drop in cheque use in the last decade, with cheques now making up less than 0.2 per cent of non-cash retail payments.

As a result of this shift in consumer behaviour, cheques are being phased out. By 2027, no more personal cheques will be offered or accepted in Australia.

3. Mobile wallets are replacing physical wallets

Many Australians have now ditched their bulky pocket wallet for a more convenient mobile wallet. Digital cards are stored securely inside the mobile wallet, with security features such as FaceID to ensure only their owners use them.

4. AI and apps are being used for personal finance

With the emergence of artificial intelligence technology, more Australians are turning to AI for tasks like budgeting and smart shopping. For example, AI shopping apps can help customers shop for specific looks by identifying brands using a photo. At the same time, they can hunt the web for the cheapest price.

5. Transactions are happening more quickly

Digital technology allows us to send money instantly and this capability is being expanded for international transactions. For customers, this means super-fast and transparent transactions, which can make it easier to manage our money, pay others or do simple tasks like split the bill at dinner.

Again, with the pace of new payment technology, we expect an ever-emerging range of new ways to pay, just around the corner.

We’re here to help

While navigating change can feel daunting for some, feel free to reach out to our friendly team if you need any assistance on managing your banking or getting the most of the services available to you.

This information is general advice only and does not take into account your objectives, financial situation or needs (your “personal circumstances”). Before deciding whether to buy any product you should consider your personal circumstances. You should read and consider the Terms and Conditions when deciding to use any product (terms and conditions, fees and charges may apply). Our product Conditions of Use are available at communityfirst.com.au

Important Changes to Apple Pay

From September 2024, there will be important changes to our Debit Cards in Apple Pay.

Important changes to Apple Pay transactions

From September 2024, there will be important changes to our Debit Cards in Apple Pay which will impact how Apple Pay Mobile Wallet transactions are routed and processed. 

What’s changing? 

All Community First Debit Cards are Multi-Network Debit Cards meaning you can make transactions using either the eftpos or Visa network.

From September 2024, in Apple Pay you will no longer have the choice to select the payment network when you transact in-store. The Network Selection will be performed by the merchant instead of you, the cardholder, meaning when you pay using your card, it’s up to the merchant to choose whether the transaction is an EFTPOS or a Visa transaction.

You can still use Apple Pay the same way you always have by double clicking the side button and authenticating with Touch ID, Face ID or passcode.

Depending on the type of transaction account you hold and which the card is linked to, this means you may also incur a transaction fee depending on how the merchant chooses to route the transaction. 

Will the change apply to everyone with a Debit Card provisioned in Apple Pay? 

Users who upgrade to iOS 18 and/or WatchOS 11 and provision a Community First Debit Card to apple Pay will no longer have the choice to select the payment network (eftpos or Visa) when they transact in-store. This choice will reside with the merchant instead.

What if I have an iOS/WatchOS older than iOS18/WatchOS 11?

Both existing and newly provisioned Community First Debit Cards in Apple Pay with an iOS/WatchOS older then iOS18/WatchOS 11 will continue to have user choice. 

Why the change?

When a merchant (e.g. a shop or business) accepts payment from a customer via a debit or credit card, the merchant is charged a fee by their bank or payments provider. The Rserve Bank of Australia (RBA) has decided that the Merchant should be able to choose how the transaction gets routed as they are the ones who are incurring the fees.
In Australia, debit card transactions can be processed through either eftpos or the Visa/Mastercard network. The cost the merchant faces from their financial institution for accepting a debit card transaction can vary depending on which network the transaction is processed through. For this reason, the RBA expects mobile wallet providers, to support Merchant Choice Routing.

We’re happy to help

If you do have any questions about this change or would like help managing your accounts or cards, please feel free to give us a call on 1300 13 22 77.

When a customer makes a payment with their dual-network debit card, the merchant may choose to send the transaction via the debit network that costs them the least to accept. This is known as ‘least-cost routing’ or ‘merchant-choice routing’. If the merchant chooses not to route, the transaction will be sent via the default network. If you perform a transaction that a merchant chooses to route via a different network, it does not affect which account the funds are pulled from, and the different networks offer similar protections to the cardholder from fraud and disputed transactions for in-person transactions. If you would like more information on Merchant Choice Routing, please visit the RBA’s website.

Most debit cards in Australia have a functionality that enables a payment to be processed via either EFTPOS or one of the two international networks – Visa/Mastercard. These are called Dual-network or Multi-Network debit cards. Community Firsts Debit Cards are Dual-Network Debit Cards.

You can determine whether your dual network debit card supports both networks by using your iPhone and following these steps;

1. Open the Wallet app.
2. Tap on your card.
3. Tap the More button
4. Tap Card Number. Within the Card Number section, if you see Mastercard or Visa and eftpos network, then the card is a dual network debit card.

When using your Community First Debit Card you can always select a particular network by inserting your Debit Card into a terminal to make a payment. When doing this you will be asked to select which network to use.
If you’re making a contactless payment by tapping your Community first Debit Card on a terminal, the transaction is automatically routed to the default network programmed on the card.

A transaction fee may apply depending on which account the transaction on the Debit Card is linked to and which network the transaction is processed through. Generally, Community First transaction accounts that charge a fee for EFTPOS transactions will be affected. This is because you could be charged an EFTPOS fee for what you thought was a Visa transaction, as a result of the merchant routing the transaction via a different network. To view a copy of our current fees and charges visit www.communityfirst.com.au.

These changes only apply to dual-network debit cards; it does not affect members using credit cards.

There’s nothing you need to do; the change will happen automatically.

How to spot and avoid investment scams

Investment scams top the list when it comes to scam losses in Australia. In 2024, reported investment losses have been trending down but remain high, with nearly $80 million lost so far this year according to Scamwatch data.

So, what is an investment scam, and how can you spot and avoid them?

According to COBA Financial Crimes and Cyber Resilience team, scammers often prey on people’s anxieties and desire for quick financial gains – especially during the cost-of-living crisis – promising high returns with little or no risk.

“Investment scams exploit the desire for financial security to deceive victims into investing money in fake or non-existent opportunities. Investment scams are often high value and can result in victims losing their entire life savings,” COBA Chief of Financial Crimes and Cyber Resilience Leanne Vale said.

“They often impersonate legitimate financial institutions or government agencies, making it difficult for individuals to distinguish between genuine investment opportunities and scams. It’s important to research any investment opportunity to make sure that it matches your expectations and can be verified through the appropriate channels,” she added.

Here, the COBA Financial Crimes and Cyber Resilience team share their top tips on how to spot and avoid an investment scam.

What is an investment scam

There are a myriad of investment scams floating around, but what they have in common is that there is a promise of high returns, usually with little to no involvement from the investor other than to send funds.

Scammers offer investments in unregistered securities, such as stocks, bonds, or promissory notes, without proper authorisation from regulatory authorities. These investments may be entirely fraudulent or involve exaggerated claims about potential returns.

Scammers promote investments in offshore accounts or entities, claiming they offer higher returns, tax advantages, or secrecy. However, these investments often involve significant risks and lack regulatory oversight, making them vulnerable to fraud.

Investment scams are marketed using very convincing websites, endorsements and collateral, making them difficult to identify.

Crypto scams involve the promise of high returns, anonymity, and guaranteed profits. They leverage the ‘unknown’ of cryptocurrency to deceive investors into investing money, only for the funds to disappear or provide little to no return.

How to detect an investment scam

Detecting an investment scam requires vigilance and a healthy dose of scepticism.

Here are some red flags to watch out for:
  1. Unrealistic promises: Be wary of investments that promise guaranteed high returns with little or no risk. If it sounds too good to be true, it probably is.
  2. Unsolicited contact: Be cautious of unsolicited investment offers, especially those that come through email, social media, or phone calls. Legitimate investment firms typically don’t solicit business this way.
  3. High-pressure tactics: Scammers often use high-pressure tactics to rush you into deciding to invest. This gives the victim little or no time to investigate the legitimacy of the offer.
  4. Lack of transparency: If the person offering the investment is unwilling or unable to provide evidence that the investment or company is real, then it likely isn’t.
  5. Unregistered or unlicensed operators: Check if the person or company offering the investment is registered or licensed with the relevant Australian financial authorities, such as the Australian Securities and Investments Commission (ASIC). ASIC’s MoneySmart has an investor alert list which can help you find out which entities are not to be trusted.
  6. Difficulty withdrawing funds: If you have difficulty withdrawing funds from an investment, it could be a sign of a scam. Legitimate investments should allow you to access your money when you need it.
What to do you if spot an investment scam

Even if you’ve managed to avoid losing money to an investment scam, reporting it is still crucial – report the scam to National Anti-Scam Centre (NASC) – Scamwatch.

By sharing your story, you contribute to protecting others and stopping these criminals.

If you have lost money as part of the investment fraud, immediately report the transaction(s) to your bank or financial institution and complete a report through ReportCyber.

Customer-owned banks are dedicated to safeguarding their customers from scams and fraud. In November, 55 mutual banks and credit unions demonstrated this commitment by joining forces to launch the Scam-Safe Accord. This industry-wide initiative represents a united front against scammers and reinforces the banking sector’s determination to strengthen consumer protection. Find out more about the Scam-Safe Accord here.