It says there is no updates for my mac, but I do not have the newest version. It is needed for my new iphone 5.

Because you need to buy a Mac OS X 10.6 DVD.

(74808)

No upgrade to the next version of OS X has ever been free.

Updates to the version you are already running are free.

Start by checking if you can run Snow Leopard:

Requirements for OS X 10.6 'Snow Leopard'

http://support.apple.com/kb/SP575

OS 10.6 Snow Leopard is once again available for $19.99 from the Apple Store:

http://store.apple.com/us/product/MC573/mac-os-x-106-snow-leopard

and in the UK:

http://store.apple.com/uk/product/MC573/mac-os-x-106-snow-leopard

but nobody knows for how long it will be available.

When you have installed it, run Software Update to download and install the latest updates for Snow Leopard.