In our fast-paced world where technology keeps zooming ahead, you’ve likely heard a buzzword: Artificial Intelligence, or AI for short.
But what is AI? What are the key concepts to understand? What are people talking about in AI? And how might it impact the world of personal finance and consumer rights? In this article, we’ll break it all down for you.
Imagine your brain is like a giant sponge, soaking up information and learning new things every day. Now, think of a computer trying to do the same thing. Artificial Intelligence, or AI, is like giving a computer a mini-brain that helps it learn and think, just like how you do. So, just as you learn to play a game better – the more you play it, the better you get; a computer with AI can learn to do its tasks better the more it does them. But just like all tools, it’s neither good nor bad by itself – it all depends on how people choose to use it.
When people talk about AI, they’re often referring to technologies that allow machines to mimic human intelligence. This can include recognising patterns, making decisions, and even understanding human language. You might hear terms like ‘Machine Learning’, where computers are trained to make predictions based on data, or ‘Neural Networks’, inspired by our brain’s structure, enabling machines to process vast amounts of information in intricate ways. Other terms include a particular type of Neural Network called ‘Deep Learning’, which is like a big, layered cake; the more layers it has, the more intricate it is. Deep Learning has many layers, helping machines make decisions after looking at loads of information.
If you’ve ever spoken to Siri or Alexa, they understand and reply to you because of ‘Natural Language Processing (NLP)’; it’s like teaching a computer to chat just like a friend. When you combine Deep Learning and NLP, you get a model like ChatGPT; which allows it to understand user inputs, generate human-like text based on vast amounts of data it is trained on, and engage in dynamic conversations.
Another AI concept is ‘Generative AI’. It’s where the system can generate new, previously unseen data from the information it’s been trained on. This ‘creation’ means it can whip up brand new content, such as images, music, texts, or even videos, based on what it’s learned; it’s like giving the computer its own imagination.
In today’s fast-moving tech world, many people are talking about AI and its impact on everything. From ethics to employment, AI’s influence is undeniable. There are calls for clear guidelines to ensure AI’s decision-making is transparent and fair, especially as it becomes an integral part of sectors like healthcare. Its ability to assist in diagnostics and treatment is seen as revolutionary. Still, this capability raises questions about patient data and privacy.
The workplace is also feeling AI’s presence, with debates on how it might reshape job roles or introduce entirely new career paths. In education, the potential for AI to offer personalised learning experiences is being explored, highlighting the technology’s adaptability across various sectors.
Well, imagine if your savings account had its own brain, helping you to save better and spend wisely. That’s what AI in personal finance would be like. AI can look at how you spend money and it can also help automate tasks, like sorting out bills. This means that, in the future, managing money could become much easier because AI will be like a smart assistant helping you make money decisions.
However, with all this cool tech stuff, there’s something we need to watch out for, our privacy and rights. Since AI would need to know about our spending habits and financial details to help us, this information must be kept safe and not misused. We need rules to ensure that companies using AI to help us with our money are also protecting our data and not using it in ways we don’t want.
As for our rights as consumers, it’s all about ensuring everyone gets a fair deal and isn’t tricked into buying things they don’t need or want. With AI, shops might know what you like and show you ads or offers tailored just for you. But it’s also essential to know you have the choice and control. Just because AI suggests something doesn’t mean you need to get it. AI tools are there to assist, but the final choice should always be yours.
In wrapping up, it’s essential to understand that Artificial Intelligence allows computers to process information, interact in human-like ways, and even produce new content. But as with all technologies, it’s about how we use it. AI offers both challenges and opportunities, and our responsibility is to ensure its application is both beneficial and ethical. As we move forward in this tech-driven era, it’s vital to be informed, ask questions, and understand the implications of AI in our daily lives.
Super can be much harder to quantify if you are a member of MSBS or DFRDB, known as defined benefit schemes. This is because the bulk of your super benefit will likely be in the form of a lifetime indexed pension, based on your years of service and final average salary. The longer you stay in Defence, the larger your lifetime pension. This cannot easily be compared to a standard accumulation super fund. Please contact the Commonwealth Superannuation Corporation (CSC) for an estimate or your current benefit.
If you have an accumulation super fund, like ADF Super, it’s much easier to compare the superannuation you get from Defence with that of a civilian employer. Generally employers pay super at a rate of 9.5% of your ordinary salary and allowances, Defence pays super to accumulation fund members at a rate of 16.4%, well above the minimum requirement.
You may not appreciate the value of your generous superannuation benefits now, but you certainly will in years to come.
ADF members receive, statutory death and invalidity cover, and rehabilitation services if needed. To replace this cover in civilian employment, you may need to take out personal insurance, such as death, disability, trauma and income protection. The cost would depend on your age and personal circumstances but could cost thousands of dollars a year.
The ADF offers free education and training and/or study assistance schemes. If you’ve been receiving tertiary education at no cost or received any form of study assistance, consider what it might cost to continue your education outside Defence.
Take some time to think about these and any other benefits provided to you by Defence to get a better understanding of the real value of your employment package.
As an ADF member you will usually receive subsidised housing or rental assistance if you are not living in your own home. If you buy a home to live in you may be eligible for a range of other assistance schemes.
If you are receiving rental assistance you can calculate the value by multiplying the fortnightly assistance amount by 26 to get an approximate annual benefit.
If you’re in service housing you can estimate your benefit by deducting the rent contribution taken out of your pay, from the amount of rent you would pay each fortnight for a similar property in the same area. Multiply the result by 26 to estimate your annual benefit.
Housing assistance schemes for members buying a property include the Defence Home Ownership Assistance Scheme (DHOAS), Home purchase assistance scheme (HPAS) and Home purchase or sale expenses allowance (HPSEA)
Serving ADF members receive a range of healthcare benefits, including free medical and dental treatments, rehabilitation services, psychological support and access to fitness facilities like gyms, pools and sporting fields.
To put a value on these benefits, think about what you might be paying for if you were not an ADF member. For example, what would it cost you for private health insurance, prescriptions, physiotherapist, dentist, specialist visits, gym membership or other fitness related costs?
Medicare covers the costs of being admitted to hospital as a public patient, some of the fees charged by GPs and other medical professionals, and subsidised prescription costs for medicines listed on the Pharmaceutical Benefits Scheme (PBS). ADF members don’t pay the Medicare levy, currently 2% of taxable income.
Private health insurance covers some or all of the cost of a range of services not covered by Medicare, for example, a private hospital and the doctor of your choice, as well as ancillary services such as dental, optical and physiotherapy, not covered by Medicare.
Your pay consists of a base salary, with the addition of employment-related allowances. Your base salary can be found at the top of your payslip on the right, listed as ‘Annual salary’. If you need help reading your payslip, see the ADF guide on Pay and Allowances.
Note: From 13 May 2021, service, trainee, reserve and uniform allowances will be rolled into a single ‘Military salary’.
The earnings section of your payslip lists any allowances you receive. The amount in the ‘Current’ column is the amount you get every fortnight for each allowance. You can add allowances by typing in the name of the allowance in the ‘Add allowance’ box and clicking the + symbol.
A deployment provides some ADF members with additional allowances that are not part of regular pay. We have not included these allowances in the calculation of your remuneration package, however, you may want to take the additional deployment allowances into account if you are comparing your ADF remuneration with civilian employment.
Medium-term goals are those that you want to achieve in 3-6 years. This could include saving for a home deposit, paying off your car or paying down all your loan debts. Having a budget and your goals written down.
Long-term goals are plans you want to achieve in around 7 years or more. This could include buying a home or paying off your mortgage, paying for your children’s education or saving for retirement.
For long-term goals think about investing some of your money. Get some financial advice to work out a good investment strategy to reach your goals.
Be financially fit from ADF Consumer Centre on Vimeo.
MSBS is a hybrid defined benefit and accumulation super scheme which closed to new members on 30 June 2016. If you are an MSBS member, your benefit will consist of a lifetime indexed pension (employer component) based on your final average salary and years of service. Some or all of this benefit can be taken as a lump sum when you have met a condition of release (the defined benefit). The scheme also has a member component made up of your compulsory and voluntary personal contributions, ancillary contributions and investment returns, that you will also receive as a lump sum when you have met a condition of release (the accumulation benefit).
The pension component can be taken from age 55. If you are retiring or resigning from the ADF after reaching age 55 or are entitled to a Class A or Class B invalidity pension, you will be eligible for a pension when you leave the Service. For all other members, your employer benefit will freeze and be preserved, increasing with CPI each year, until you are eligible to receive it.
The member component of your benefit may be left in MSBS, where it will increase with investment returns each year until you access it, or it can be rolled over to another complying super fund.
For more information contact the Commonwealth Superannuation Corporation (CSC).
If you joined the ADF for the first time after 30 June 2016, you will fall under the ADF superannuation arrangement, and will be a member of an accumulation fund, such as ADF Super. If you had previously served, and are a member of MSBS, you will be re-entered into MSBS on rejoining the Service.
For accumulation fund (eg. ADF Super) members, your benefit will be a lump sum based on contributions and investment returns. When you leave Defence, your money can be left in the fund, where it will continue to grow with investment returns until you meet a condition of release, or it can be rolled into another super fund.
If you’ve been in the Service for more than 12 consecutive months, you can keep your ADF Super account when you transition out and your new employer can contribute to ADF Super. In this case your insurance cover will change so contact the Commonwealth Superannuation Corporation (CSC) to find out what you need to know.
DFRDB is a defined benefit super scheme which closed to new members on 30 September 1991. If you are a DFRDB member, you will receive a lifetime indexed pension based on your final salary and years of service. Part of your benefit may be commuted into a lump sum, and you may receive an additional lump sum from your MSBS ancillary account, made up of voluntary personal contributions, amounts transferred in from other funds and other contributions, plus investment returns.
For more information contact the Commonwealth Superannuation Corporation (CSC).
Short-term goals are things you want to achieve within the next couple of years. These goals could be to pay off your credit card debt, buy a new TV, go on a holiday or buy a car. Whatever you have in mind, set yourself a realistic timeframe. The best way to save for short-term goals is to reduce your spending on non-essential items, like entertainment, dining out, memberships or subscriptions. It is often easier to stay on top of your spending if you use cash, EFTPOS or a debit card when shopping instead of using your credit card.
Make your savings work for you by putting your money into an account where it will grow. Savings accounts are great because you can earn compound interest on your savings. If you’re on a low income, you may qualify for one of the savings programs offered by some charitable organisations.