Author: victoria

Smart tax and super planning before EOFY

Tax time is just around the corner, so now is the time to make sure you’re prepared for 30 June.

Each year, the ATO highlights its areas of focus. Taking a few minutes now to review these can help you avoid issues when lodging your return.

Work-related deductions under scrutiny

This year, the ATO is focusing on work-related deductions and income that’s not declared on tax returns.

If you are claiming work-related expenses, ensure they meet the ATO’s three golden rules:ⁱ

1. The expense must be directly related to earning your income

2. You must not have been reimbursed

3. You must have records to support your claim, such as receipts or a logbook

For working from home expenses, you can use either the actual cost method or the fixed rate method.

Instant asset write-off

The instant asset write-off remains an important tax concession for Australian small businesses in the 2025–2026 financial year. Eligible businesses with an aggregated turnover of less than $10 million can immediately deduct the business portion of eligible assets costing less than $20,000, instead of depreciating them over several years. The asset must be first used or installed ready for use between 1 July 2025 and 30 June 2026.ⁱⁱ

Don’t overlook income

The ATO is also paying close attention to undeclared income. This includes:ⁱⁱⁱ

• Cash payments

• Interest income

• Rental income

• Earnings from crypto assets

For those with a side hustle, check whether it may be considered a business. All business income, regardless of amount, is assessable and must be declared.^iv

If you intend to claim deductions for business expenses related to your side hustle, ensure they are directly connected to earning that income and are supported by receipts.

Time for a portfolio review

Recent market volatility makes this a good time to review your investment strategy.

Checking your capital gains or losses before 30 June allows you to take action where appropriate.

For example, you may consider realising capital losses to offset gains from assets such as shares, property or crypto.

Tax timing strategies

If you have regular deductible expenses, such as investment loan interest or annual costs, it may be useful for some to prepaying them before 30 June to claim a deduction for this financial year.

You may also consider the timing of income expected before 30 June. Deferring income until after the end of the financial year may help reduce your tax liability.

Tax rates are also changing for lower income earners. From 1 July 2026, the rate for income between $18,201 and $45,000 will reduce from 16 per cent to 15 per cent, with a further reduction to 14 per cent the following year.

Super contribution strategies

The end of the financial year is an ideal time to review your super contributions.

If you plan to contribute before 30 June, check when your employer will make their contributions. The introduction of Payday Super means some employers are contributing earlier, which may affect your contribution caps.

For SMSF members, make sure that:

• All contributions are received by the fund’s bank account by 30 June

• Minimum pension payments are made

• Asset valuations are up to date

• Fund records are current

Be alert for tax time misinformation

The ATO is warning taxpayers to be cautious about the growing wave of tax “tips”, shortcuts and refund claims circulating online.

Content from social media, “finfluencers” and even artificial intelligence tools can sound convincing, but it is not always accurate or relevant to Australian tax law. Acting on this kind of advice can lead to incorrect claims, delays in processing returns and, in some cases, penalties.

Larger refunds, easy deductions or so-called “loopholes” should always be checked against trusted sources.

Ultimately, you are responsible for the accuracy of everything included in your tax return, regardless of where the advice came from.

Taking a few extra minutes to verify information before you lodge can help you avoid costly mistakes and keep your return on the right side of the rules.

Please get in touch if you need any help preparing for the end of the financial year.

Source: https://www.ato.gov.au

Tax Alert June 2026

Prepare your business for tax changes and Payday Super

Recent updates from the ATO highlight a mix of proposed tax changes and compliance priorities, with new draft legislation under consideration and practical guidance released ahead of the Payday Super changes starting 1 July 2026.

Check eligibility for tech booster deduction

Small businesses are being encouraged to review their eligibility for the government’s proposed Technology Investment Boost, although the legislation is yet to be passed.ⁱ

Under the original proposal, eligible businesses could claim a bonus tax deduction of up to $2,000 for technology spending. This applies to investments exceeding $4,000 in areas such as digital systems, e-commerce platforms, cyber security and online marketing tools.

Businesses with annual turnover of up to $10 million may qualify, with eligible expenditure incurred between 1 July 2025 and 30 June 2027.

While not yet law, reviewing planned or recent technology spending may help businesses act quickly if the measure is enacted.

Standard $1,000 deduction proposal

Another proposed measure is the introduction of a standard $1,000 deduction for work-related expenses, with draft legislation released for consultation.

If implemented from 1 July 2026, the deduction would be available to taxpayers earning employment income. Taxpayers with work-related expenses below $1,000 could claim the standard deduction without detailed receipts.

Importantly, existing rules will remain available for those with higher expenses, or for individuals earning only business or investment income.

The proposed deduction would sit alongside other claims, meaning taxpayers could still separately deduct investment expenses, charitable donations, and union or professional association fees.

Preparing for Payday Super

With Payday Super due to get underway on 1 July 2026, the ATO has released checklists and guidance to help employers prepare.ⁱⁱ

The new regime will require super contributions to be paid at the same time as wages, rather than quarterly. To support the transition, the ATO has published resources covering:

• Key pre-implementation tasks

• Managing pay runs across the June–July transition period

• Single Touch Payroll reporting requirements

• Ongoing compliance under the new system

Employers are encouraged to review payroll systems, processes and cash flow implications now to ensure a smooth transition.

GST reporting thresholds in focus

The ATO is also reminding growing businesses to review their GST reporting obligations as turnover increases.ⁱⁱⁱ

Businesses that reach $10 million in GST turnover must move from Simpler BAS to full BAS reporting and adopt a non-cash (accrual) accounting method for GST.

Once turnover reaches $20 million, GST reporting must shift from quarterly to monthly lodgment.

The ATO says it’s noticed some businesses are failing to update reporting methods after crossing these thresholds and they will contact businesses directly.

Fuel tax credit rate changes

Taxpayers claiming fuel tax credits should ensure they are applying the correct rates following changes from 1 April 2026 to temporarily reduce fuel excise by 60.9 per cent.^iv

As fuel tax credits are based on the excise duty payable on fuel, there will be different rates that apply before and after that date.

In addition, the heavy vehicle road user charge has been reduced to zero for the period 1 April to 30 June 2026.

Digital lodgment for partnerships

The ATO continues to expand digital reporting requirements, with all partnerships now required to lodge Statements of Distribution (SODs) electronically.^v

This applies regardless of the size of the partnership. Lodgment can be completed through standard business reporting-enabled software or via a registered tax agent.

The digital data enables the ATO to cross-check that partners are accurately reporting their share of income in their individual tax returns.

Strengthening business security

Finally, the ATO is encouraging businesses to review access to their online accounts as part of good governance and fraud prevention.^vi

Business owners should:

• Regularly review authorised users in the Relationship Authorisation Manager

• Remove access for staff who have left or changed roles

• Check permissions for sensitive functions within ATO Online Services for Business and the Australian Business Register.

Keeping access controls up to date is a simple but effective way to reduce the risk of unauthorised activity.

Source: www.ato.gov.au

Finding your flow in thirds the 3-3-3 productivity hack

If your workday and list of things to do often feels unrelenting, you are not alone. For years, hustle culture glorified long hours, constant motion, and sacrificing rest to prove commitment. It promised success, but left many busy professionals drained, distracted, and stuck in a cycle of busyness without progress.

Structured focus offers a smarter alternative. Instead of working harder, break your day into manageable blocks, and get more done without the chaos. It’s simple, practical, and surprisingly effective for those who need to reclaim control over their time.

Why hustle culture is out and thirds are in

Hustle culture teaches that long hours equal achievement and that success comes only through constant activity. Back-to-back meetings, late-night emails, and glorified exhaustion are all symptoms of this mindset. While it may create the illusion of productivity, the reality is often stress, fatigue, and diminishing returns. The resulting lack of productivity is the opposite of what hustle culture was trying to achieve.

Structured focus provides a more appealing alternative to the ‘nose to the grindstone’ approach and one of the easiest methods to employ is known as ‘3-3-3′.

The 3-3-3 method divides your day into thirds for focused work, shorter tasks, and maintenance activities, prioritises quality over quantity and focus over frenzy. It allows high-value work, smaller responsibilities, and upkeep to coexist without competing for attention.

The benefits of working in thirds

Dividing your day into thirds offers several key advantages. It reduces stress by providing clear boundaries between different types of work, improves productivity by dedicating time to high-value tasks, and encourages sustainable performance over the long term. Working in thirds also gives a sense of control, transforming productivity from a stressful race into a deliberate, satisfying practice.

Making the 3-3-3 method work for you

Implementing the 3-3-3 method is simple but you do need a plan. It’s important that you stick to your plan. Don’t let extra tasks sneak in and steer you off course. Three tasks shouldn’t turn in seven. If you finish your three tasks early, take a break, go for a walk or make a cup of tea and think about what you accomplished. If you start adding more tasks, you could begin to feel overwhelmed, which may eventually lead to burnout.

Consistency is key. Practicing this approach day after day turns structured focus into a habit. Adjust the timing to suit your personal rhythm, but keeping the principle of thirds ensures your workday stays organised, productive, and balanced.

Working in thirds transforms the workday from stressful chaos into a structured, rewarding practice. For busy professionals, it is a game changer – a simple, practical way to work with focus, clarity, and calm accomplishment.

Federal Budget 2026-27 Analysis

Reform and resilience in uncertain times

Treasurer Jim Chalmers has framed the 2026 Federal Budget as “the most important and ambitious budget in decades”.

“This Budget is about getting us through the global oil shock and taking pressure off Australians while building a stronger economy, better tax system, a more sustainable budget and lifting living standards,” the Treasurer told Parliament.

With an overarching theme of ‘reform and resilience’, the Federal Government is aiming to shore up investor confidence at a time when the global economy teeters thanks to war in the Middle East and the disruption of global oil supplies. Despite the challenges, Treasury says Australia’s economy continues to grow faster than every major advanced economy.

For households and wage earners, the Budget delivers a mix of targeted cost-of-living relief and significant structural reform, particularly in tax and housing.

The big picture

At the headline level, the Budget forecasts an underlying cash deficit of $31.5 billion in 2026–27, an improvement of $2.8 billion on the mid‑year update, despite slower global growth and higher oil prices.

Economic growth is forecast to slow from 2.25 per cent this financial year to 1.75 per cent in 2026–27, reflecting weaker international conditions, before gradually strengthening over the medium term. Inflation is expected to rise temporarily in the June quarter to around 5 per cent driven largely by fuel and transport costs linked to the war‑driven global oil shock. Despite this near-term pressure, the Government continues to project a return to a balanced budget in the mid-2030s followed by modest surpluses.

The Treasurer maintains that budget repair is being driven primarily by savings and spending restraint, rather than broad-based tax increases.

From a policy perspective, the Budget rests on five pillars: managing the global oil shock; easing cost‑of‑living pressures; lifting productivity; reforming the tax system; and strengthening national resilience. Each has direct implications for household finances, superannuation, investment structures and long‑term planning.

The Treasurer has made clear that a major goal is to “rebalance the tax system” so that wage earners are not treated substantially differently from those who earn income through assets and investments.

While some measures will take years to flow through, the direction is to prioritise the national security, energy supply, productivity and care sectors, while accepting political risk, to strengthen the economy over the medium to long term.

Cost-of-living

The Government has been careful to structure cost-of-living measures so that they don’t meaningfully add to inflation. The most prominent initiative is the Working Australians Tax Offset, providing a $250 offset for more than 13 million employees from the 2027–28 income year.

In addition, workers will be able to claim a $1,000 instant tax deduction for work-related expenses from 2026–27, without the need to keep receipts.

Income tax thresholds will also be adjusted. From 1 July 2026, the 16 per cent tax rate, applying to income between $18,201 and $45,000, will be reduced to 15 per cent before falling further to 14 per cent from 1 July 2027.

The government will increase Medicare Levy low-income thresholds by 2.9 per cent from the 2025–26 income year, a change expected to benefit more than one million lower-income Australians who will remain exempt from the Levy or pay a reduced rate.

Productivity

Productivity comes in for renewed focus, reflecting concern that long-term improvements in living standards can’t be sustained without structural change. The Budget allocates funding aimed at reducing red tape by an estimated $10.2 billion per year, including faster environmental approvals and streamlined foreign investment processes.

Housing construction remains a central productivity priority. New funding for local infrastructure is designed to support up to 65,000 extra homes, alongside measures to fast‑track skilled migrant trades and improve construction capacity.

Investment in transport infrastructure also features prominently, with $8.6 billion committed to nationally significant road and rail projects, improving freight efficiency and workforce mobility particularly across the regions.

Taken together, these measures represent a shift toward capability building. For business owners and investors, the emphasis is on reducing friction, improving labour supply and supporting capital investment that lifts output over time rather than fuelling higher prices.

Tax reform

The most debated element of the Budget is the tax reform package directed at property investors and discretionary trusts.

From 1 July 2027, negative gearing will be limited to new housing, with existing arrangements grandfathered. At the same time, the 50 per cent capital gains tax (CGT) discount will be replaced with cost-base indexation, alongside a new minimum effective tax rate of 30 per cent on capital gains.

The CGT settings for super and self-managed super funds will remain unchanged, which means investors will continue to receive a CGT discount of 33.33 per cent for relevant assets held for over 12 months in super.

The Government argues these changes are essential to address intergenerational inequity and housing affordability, while continuing to support investors who add to new housing supply. Treasury modelling suggests a modest impact on rents over time, with savings redirected toward care services and tax relief for wage earners.

Trusts have also been brought into the Government’s tax reform agenda, with a new minimum 30 per cent tax rate to apply to discretionary trust distributions from 1 July 2028. The measure is aimed at improving integrity and reducing income‑splitting arrangements that allow some taxpayers to pay significantly less tax than wage earners on comparable incomes.

Housing affordability

The Treasurer aims to address housing shortages and affordability, by increasing total investment to $47 billion and supporting an estimated 75,000 additional Australians to achieve home ownership over the next decade through the tax reform package.

The Government claims around 65,000 additional homes will be delivered over 10 years through its support for new developments. A new $2 billion fund has been established to help local governments and state utilities build the infrastructure needed to support new housing.

To free up additional supply, the Government is extending the ban on foreign buyers purchasing established homes until mid-2029.

Aged care and health

Health and aged care receive significant additional funding as demand continues to rise. The Budget commits $25 billion in additional hospital funding over the medium term, alongside incentives to expand bulk billing and reduce strain on emergency departments.

The Government has confirmed further reductions in the cost of medicines, building on earlier PBS reforms, with cheaper scripts and faster access to newly listed drugs funded through additional PBS investment.

Aged care reform focuses on both supply and workforce sustainability. The Government will fund incentives to support construction of an additional 5,000 residential aged care beds per year by 2029.

The NDIS also features prominently, with continued efforts to rein in unsustainable cost growth and strengthen integrity. Measures include tightening eligibility, reducing rorting and redirecting funding towards participants with the highest needs.

Future proofing

The focus on national resilience is a defining characteristic of the Budget. Fuel security is front and centre following the global oil shock, with measures to secure domestic fuel reserves, reserve 20 per cent of gas exports for Australian use and provide concessional finance to logistics and manufacturing firms most exposed to price volatility.

Defence spending also rises sharply, with a record additional $53 billion committed over the coming decade. The focus is on readiness, supply chains and regional security, reflecting growing geopolitical risk in the Indo‑Pacific and beyond.

Looking ahead

The outlook remains uncertain. Treasury acknowledges the risk of further inflation spikes if global energy markets deteriorate, with worst-case scenarios still modelling inflation above 7 per cent and higher unemployment. But the central forecast avoids recession and assumes gradual improvement from late 2027 onward.

If you have any questions about how the 2026 Federal Budget may affect your personal finances, please contact us to discuss.

Information in this article has been sourced from the Budget Speech 2026-27 and Federal Budget Support documents.  

It is important to note that the policies outlined in this article are yet to be passed as legislation and therefore may be subject to change. 

2025 Year in review: It was a soft landing for Australia

Many investors breathed a sigh of relief at having survived (and even thrived) the turbulent economic and political events of 2025.

Super funds posted strong double-digit returns for the 2024-2025 financial year. Australia recorded modest economic growth, while inflation cooled a little throughout the year – albeit with a slight uptick at year’s end – and house prices surged before hitting the brakes in December. Share markets reported respectable gains locally and some surging profits globally. 

The big picture

Markets and economies around the world have danced to the tune of the Trump Administration’s second term in office and reacted to wars and unrest in the Middle East and Ukraine.

The US President’s often surprising policy twists and turns, particularly a punishing new tariff regime, saw markets falter and exporters of goods and services to the US plunged into uncertainty.

The Australian dollar reflected the choppy conditions, hitting lows just under 0.60 USD in April before recovering slightly by year-end at just under 0.67 USD, this was buoyed by our strong iron ore exports and the growing demand for lithium, copper and rare earths.ⁱ

The artificial intelligence revolution was another feature of the year, driving US share markets ever higher with some fearing the bubble is overdue to burst. 

Economy

Inflation’s stubborn resistance to the Reserve Bank’s measures to bring it down could lead to further interest rate rises in 2026.

The Consumer Price Index in January recorded an annual rate of 3.4 per cent, down 0.4 per cent on the previous month. The RBA’s flexible inflation target aims to keep the cost of living increases between two and three per cent.

The cash rate began 2025 at 4.35 per cent but after three cuts during the year, it was down to 3.6 per cent in December. The RBA is due to meet in February to consider its next move.

In the US, the Federal Reserve also cut rates three times, putting the interest rate to a range of 3.5 – 3.75 per cent.

The Australian economy grew 2.1 per cent in the year to September in a massive improvement on the previous year’s growth of 0.8 per cent.

Property

After two uneven years, home values surged again in 2025 by 8.6 per cent, adding about $71,500 to the national median.ⁱⁱ

It’s the strongest calendar year performance since the remarkable 24.5 per cent increase in 2021.

However, values softened in December, recording the smallest monthly increase in five months.

Darwin delivered the best performance with an 18.9 per cent gain in values during the year while Melbourne took the wooden spoon with a 4.8 per cent increase.ⁱⁱⁱ

Share markets

Global equity markets proved that they could thrive, even in a higher-interest rate environment, and the AI revolution moved from the hype phase of the previous year to serious players in 2025.

While ‘The Magnificent Seven’ tech stocks have long ruled the S&P 500, in 2025 just two outperformed the index with a gain of 64.8 per cent for Alphabet and 38.9 per cent for Nvidia.^iv

It was a slower pace for Australian markets with the S&P/ASX 200 delivering a solid total return of 6.8 per cent. While the big banks faced some pressure on margins as interest rates peaked, the materials sector was supported by the global energy transition. Dividend yields remained attractive, continuing Australia’s tradition of providing reliable income for retirees and SMSFs.

Commodities

Precious metals drove commodity values in the past year with investors looking for security amid interest rate movements and geopolitical tensions.

Silver was up by an astonishing 182 per cent during the year, but a sell-off in December saw the price finish the year with a 147 per cent gain.^v

Meanwhile, gold’s safe haven status during times of uncertainty saw it jump by 65 per cent during the year.

Looking ahead

It seems likely the issues that dominated the financial markets in 2025 may continue to shape performance and returns this year.

Global politics and war are likely to move commodity prices and equity markets while the contrariness of US foreign policy will both spook and buoy investors.

In Australia, all eyes will be on the RBA, with high levels of speculation as to where interest rates will be heading in 2026.

i Australian Dollar | Trading Economics

ii Home Value Index: Softer landing after strong 2025

iii Home Value Index: Softer landing after strong 2025

iv Which Magnificent 7 Stock Had the Best Year in 2025? | Investing.com

The silent partner in your wealth plan

When you think about building wealth, you may picture investments, property and superannuation. But there’s another critical element: insurance. It’s the silent partner in your financial strategy, quietly working behind the scenes to protect everything you’ve built.

Strategic asset allocation is the hallmark of a robust wealth plan, using diverse holdings to build long-term financial success.

Yet, defending a portfolio against unforeseen events and ensuring a smooth estate transfer is just as vital. That’s where targeted insurance solutions come in.

Far from being just a safety net, insurance can be a tool that preserves your assets and keeps your plans on track even when life delivers the unexpected.

Insurance can help to create a more resilient wealth plan, especially for those with complex estate considerations. In other words, the right cover can make all the difference between maintaining your lifestyle and facing financial hardship.

Safeguarding your family

Life is unpredictable. Illness, injury or premature death can derail even the most carefully designed financial plan.

The risk is magnified if wealth is concentrated in illiquid assets such as private business interests or large property holdings. Beneficiaries often need immediate access to cash to cover any outstanding debts, taxes that may be owing, and to manage business continuity. If funds are not available, the executor may be forced to sell the core portfolio, or business assets quickly, and potentially at a loss.

That’s where life insurance, Total and Permanent Disability (TPD) cover and trauma insurance can play an important role as a structural defence mechanism for a portfolio and an estate.

Life insurance provides a lump sum to beneficiaries after your death, allowing them to secure their future. TPD cover steps in if you suffer a permanent disability and are unable work again, providing the funds for medical care and living expenses. Trauma insurance covers serious illness such as cancer or heart disease, giving you financial breathing room during recovery.

Income protection insurance is another valuable way of providing income if illness or injury stops you from working. It pays up to 75 per cent of your income and helps you to avoid dipping into your savings or selling assets at the wrong time.ⁱ

These policies can mean peace of mind for families, helping to protect assets and ensuring that wealth transfers happen as you intended.

Protecting your business

Insurance is also a cornerstone of small business risk management strategy.

Assessing and managing risks may highlight the need for a range of insurances such as flood and fire, theft, public liability, professional indemnity and cyber liability. These covers can help to defend your business against the crippling expenses that may follow unexpected events.

Risks can also be personal.

Business partners can use life insurance policies to safeguard their interests in case one business partner dies, providing the funds to buy the partner’s share of the business from their estate. Without a policy, the surviving partner may struggle to buy out the deceased’s share, forcing a quick sale of the business at a discount. With the right cover, the transition can be smoother, preserving value for the families involved.

Meanwhile, key person cover helps to protect against the financial impact of losing a vital team member to illness or if they die. In the event of a claim, the business will receive the insurance benefit.

Car, home and contents

If your car was stolen or damaged, will your insurance cover its replacement? If your home was completely destroyed tomorrow, do you have adequate insurance to rebuild as well as buy new furniture and fittings? These are things you need to consider when taking out insurance.

Reviewing your cover

Life changes and so should your insurance. Too little cover in any area of your life could leave you exposed, too much could mean unnecessary premiums.

Regular reviews can ensure your various insurances fit with your goals and current circumstances. It’s about having the right cover at the right time.

Insurance doesn’t generate returns, but it protects the foundation of everything you’ve built. Without it, one unexpected event could unravel years of planning.

A few smart decisions now can make all the difference when life doesn’t go according to plan.

Please call us to talk about how your current cover fits with your financial strategy.

i Income protection insurance – Moneysmart.gov.au

Designing the future, you want

As we tick over into a new year, many of us feel the instinctive pull for change – a desire to feel better, do better and make life feel more aligned to our values and goals. While this wave of motivation is in full force, it can quickly fade if you don’t have direction and a plan in place.

Thoughtfully planning out what it is you want to achieve and how you go about achieving it, can provide clarity and structure and ensure you stay on track.

As we look toward to the year ahead, now is the perfect time to set out a framework that supports lasting progress, not for the first few months, but throughout the whole year.

We explain how setting realistic goals can help you grow, stay motivated and create a year you can be proud of.

Reflecting on the past

Before we start to look forward, we must look back. Reflect on what you achieved in the past year – think about where you felt a sense of accomplishment as well as the areas that you may have fallen a little short and may need improvement for the year ahead.

Writing each of these down makes it easier, so you can avoid repeating the same patterns, especially for the things that didn’t go according to plan.

Next, you need to align your goals to what matters to you. What are your true values? Many goals are set based on what we think other people expect or what we think we should be doing. If you’re creating goals for these reasons, you are probably setting yourself up for failure.

Some considerations for values that are important to you could be health and well-being, career growth, family and relationships or financial stability.

Building the framework

Now, we’ve all heard about setting SMART goals (Specific, Measurable, Achievable, Relevant and Time- bound), but what about ‘systems’?

Author of Atomic Habits, James Clear, states that when we are not achieving our goals, or breaking certain habits, it may not be about the goals that are being set but the system we are using to achieve the goals.

Clear uses a framework called Four Laws of Behaviour Change, which set rules around achieving goals, or breaking bad habits. The four laws are as follows:

Law 1 – Make it obvious

Law 2 – Make it attractive

Law 3 – Make it easy

Law 4 – Make it satisfying

These laws are designed to create a simple, effective framework to keep you focused on your goals.

Implement and execute

Here are some examples of how you can use this system to create simple habits to achieve your goals.

Law 1: Make it obvious

• Design your environment so the cue for your habit is right in front of you

  Example: Put your gym clothes on the bed the night before

Law 2: Make it attractive

• Pair habits with something you enjoy

  Example: Only listen to your favourite podcast while walking

Law 3: Make it easy

• Reduce friction-make habits as convenient as possible

• Start small:

  • Do 2 push-ups

  • Meditate for 1 minute

LAW 4: Make it satisfying

• Reward yourself immediately after the habit

• Track habits so you feel progress

• Create a “don’t break the chain” streak

Cultivating small daily habits will keep you motivated. Fostering sustainable habits and seeing the gradual change each day will give you the dopamine hit you need to continue on your journey. When you start to feel overwhelmed, the process feels like a hard slog, and you are less likely to stick to it.

Remember, you don’t need to overhaul your life, it’s about creating small habits that are going to be more manageable to help you achieve big goals, whatever they may be.

Set yourself up for kicking goals

Setting goals for 2026 is an opportunity to shape your life intentionally rather than drifting through the year on autopilot, which we tend to do if we don’t carefully and thoughtfully plan ahead.

With reflection, clarity, systems, and flexibility, your goals can become powerful tools for transformation. Start early, stay curious, and give yourself permission to evolve along the way.

Here’s to a purposeful, aligned, and fulfilling 2026.

Strategies for an unexpected retirement

The best time to start planning for retirement is yesterday.

But the second-best time? Today.

About two-thirds of Australians retire earlier than they anticipated because of unexpected events such as job loss or redundancy, they need to care for a family member, have a sudden illness or injury, problems at work or a partner’s decision to retire.ⁱ

But, whether you’re in your 50s, 60s, or even beyond, it’s never too late to take meaningful steps toward a more secure and fulfilling retirement.

The good news is that with the right guidance and a few smart moves, you can still build a retirement plan that reflects your values, supports your lifestyle and gives you peace of mind.

Where to begin

Before you make any changes, it’s important to understand your current financial position. This includes:

• your superannuation balance

• other savings or investments

• debts such as your mortgage, credit cards and personal loans

• expected retirement income sources including the Age Pension, rental income and part-time work

Boost your super

Even if you’re starting later, there are ways to accelerate your super growth using:

• Salary sacrifice Contributing pre-tax income into super can reduce your taxable income while boosting your retirement savings.

• Personal contributions You may be eligible for a tax deduction or government co-contribution depending on your income.

• Catch-up contributions You may be eligible to add to your super but be aware of the caps on contributions.ⁱⁱ

These strategies can be especially powerful in your 50s and 60s, when your income may be higher and retirement is on the horizon.

It’s also a good idea to regularly consider your super investment options and review your risk tolerance and time horizon.

Deal with debt

If possible, getting your debt under control before you retire is a useful strategy.

You could consider using your superannuation or other savings or downsize your home to pay off a mortgage or other loans. But first, it’s essential to carefully check the tax impact, the effect on your super and whether any potential government benefits will be affected.

Reassess your lifestyle goals

Retirement isn’t just about money, it’s about how and where you want to live, how much travel you’d like to do and if you’d continue to work part-time.

Clarifying your lifestyle goals helps shape your financial strategy. It also ensures your retirement plan reflects your values, not just your bank balance.

How much will I really need?

Aim to create a retirement budget. Estimate your future expenses including housing, food, travel and healthcare and compare them to your expected income. This helps identify any shortfalls and guides your savings strategy.

You will also need to consider the amount of time you might spend in retirement. This will depend on when you retire (planned or unexpected) and how long you live. This is called longevity risk. Given life expectancy is unpredictable, there is a possibility that your retirement savings may not last throughout retirement.

Understand your entitlements

Many Australians are eligible for government support in retirement, including:

• Age Pension Based on income and assets, available from age 67 (for those born after 1957).

• Concession cards For discounts on healthcare, transport and utilities.

• Rent assistance If you’re renting privately and receive the Age Pension.

Even if you don’t qualify now, you may be able to restructure your finances to maximise future entitlements.

Review regularly and remain flexible

Retirement planning isn’t a one-time event. Life changes and so should your strategy. Regular reviews help you:

• Adjust for market movements or legislative changes

• Update your goals and spending patterns

• Ensure your estate planning is current

Flexibility is key. Whether you retire gradually, take a sabbatical, or pivot to a new venture, your plan should evolve with you.

Next steps

Retirement planning is about taking the next step rather than chasing perfection. Whether you’re starting late or simply refining your strategy, every step you take now helps shape a more secure and meaningful future.

And remember that retirement isn’t an end point. It’s a new beginning even if you retire earlier than you anticipated. With the right plan in place, you can step into this next chapter with clarity, confidence and purpose.

We’d be happy to help you review your current retirement plan and identify any gaps in retirement goals and create a strategy should you need to retire earlier than expected.

i Retirement and Retirement Intentions, Australia, 2022-23 financial year | Australian Bureau of Statistics

ii Understanding concessional and non-concessional contributions | Australian Taxation Office

Protecting what matters most

We plan for holidays, home renovations, and retirement but we’re less likely to plan for the unexpected. Life insurance is one quiet but powerful way to protect the people you love from financial stress if something happens to you.

Whether you’re raising a family, supporting a partner, or building a business, life insurance helps ensure that your legacy includes stability rather than uncertainty. It can be a powerful tool for your family’s financial resilience.

Life insurance is designed to provide a lump sum payment to your nominated beneficiaries when you die or, in some cases, are diagnosed with a terminal illness. The payout can help ensure that your loved ones aren’t left scrambling to cover costs such as mortgage repayments or rent, outstanding debts, funeral costs and living expenses during an already emotional time.

It can be particularly helpful if:

• you have dependents who rely on your income

• you’re the primary breadwinner or contribute significantly to household finances

• you have joint debts with a partner

• you want to leave a legacy or charitable gift

• you’re a business owner

Even if you’re young and healthy, life insurance can be affordable and locking in a policy early may mean lower premiums over time.

How much life insurance do you need?

There’s no one-size-fits-all answer, but a good starting point is to ask yourself: “If I were gone tomorrow, what financial gaps would my family face?”

Here’s a simple framework to help you estimate your coverage needs:

1. Calculate your financial obligations

Start by listing the major expenses your loved ones would need to cover:

• Mortgage or rent: how much is left to pay?

• Living costs: groceries, utilities, transport, childcare

• Children’s education: school fees, uniforms, university costs

• Debts: credit cards, car loans, personal loans

• Funeral and legal costs: can be around $10,000–$20,000ⁱ

Add these up to get a baseline figure.

2. Consider your income

How long your family would need financial support. Multiply your annual income by the number of years you’d want to replace it, for example, five to 10 years.

If you earn $100,000 and want to provide seven years of income, that’s $700,000.

3. Factor existing assets

Do you have savings, superannuation, or investments that could help cover costs? Subtract these from your total needs to avoid over-insuring.

4. Account for inflation and future needs

Costs rise over time, and your children’s needs will evolve. It’s wise to build in a buffer of say, 10-20 per cent to future-proof your coverage.

5. Review regularly

Your life changes, and so should your insurance. Marriage, children, mortgages and career shifts can all affect how much cover you need. We can help with a regular review to ensure your policy stays aligned with your goals.

Different types of life insurance

There are a few key types of cover to be aware of:

• Term life insurance pays a lump sum if you die or are diagnosed with a terminal illness.

• TPD (Total and Permanent Disability) covers you if you’re permanently unable to work due to illness or injury.

• Trauma insurance pays a lump sum if you’re diagnosed with a serious illness like cancer or stroke.

• Income protection replaces a portion of your income if you’re temporarily unable to work.

Life insurance in super

For many Australians, life insurance is already tucked away inside their superannuation fund. Most super funds automatically include a basic level of life cover and TPD insurance, and some also offer income protection.ⁱⁱ

Premiums are typically lower than retail policies and are deducted from your super balance. In many cases, you won’t need to complete a health check to get default cover, and the premiums may be more tax-effective depending on your circumstances.

While insurance in super is convenient, it’s not always comprehensive and it’s not guaranteed to suit your needs in the long term.

If you’re relying on insurance through super, it’s a good idea to review your fund’s policy and consider whether it’s enough especially if your circumstances have changed.

If you’re unsure where to start, we’re here to guide you through the options, crunch the numbers, and make sure your policy reflects your values and responsibilities

i The Cost Of A Funeral In Australia | Finder

ii Insurance through super – Moneysmart.gov.au

What are the SMSF investment restrictions?

About SMSF investment restrictions

SMSFs are complex, here we have outlined some of the restrictions to help you before you make any decisions on self-managed super fund (SMSF) investment. You must ensure you understand any restrictions on SMSF investments to avoid any penalties.

There are some exceptions, however, generally your SMSF must not:

• lend or provide financial assistance to members or related parties

• acquire assets from members or related parties

• use collectables and personal use assets in a way that provides a present-day benefit

• allow trust distributions owing to the SMSF to remain unpaid

• breach the in-house asset rules

• borrow money.

No one associated with your SMSF should get a present-day benefit from its investments.

If you don’t comply with the investment restrictions, the ATO may take a range of actions, including:

• imposing penalties

• making the fund non-complying

• disqualifying you as a trustee

• prosecution of trustees.

Who are related parties?

A related party of your SMSF includes:

• all members of your fund

• associates of fund members, which include

  • the relatives of each member

  • the business partners of each member

  • any spouse or child of those business partners

  • any company or trust the member or their associates control or influence

• standard employer-sponsors (employers who contribute to your SMSF for the benefit of a member under an arrangement between the employer and a trustee of your fund)

• associates of standard employer-sponsors, which include

  • business partners and companies or trusts the employer controls (either alone or with their other associates)

  • companies and trusts that control the employer

  • relatives of an employer sponsor.

A relative is any of the following:

• a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child of the member or their spouse

• a spouse of the member and any individual specified above.

Loans and financial assistance

Your SMSF can’t provide loans, or direct or indirect financial assistance, to a member or a member’s relative. For example, you can’t use your SMSF as guarantor for a loan for a member or a member’s relative.

Loans must:

• be in the best interests of the members

• comply with the SMSF’s investment strategy

• be conducted on a commercial arm’s length basis.

If you run a business through your SMSF, you also can’t overpay a member or relative of a member for their services. If you employ a member or a relative of a member, their salary or wage must not be higher than the standard salary for that type of role.

Acquiring assets

Your SMSF can’t acquire an asset from a related party unless the price reflects the market value and is:

• a listed security (for example, shares, units or bonds listed on an approved stock exchange)

• business real property

• an asset specifically excluded from being an in-house asset.

You must also ensure the market value of your fund’s in-house assets doesn’t exceed 5% of the total market value of your fund’s assets.

Crypto assets and private company shares are not listed securities and can’t be acquired from a related party.

If an asset is not acquired or sold at arm’s length, all or part of any income from the transaction may be non-arm’s length income and taxed at the highest marginal rate.

To help you comply with the requirements, use the valuation guidelines for self-managed super funds.

Collectables and personal use assets

Where your fund invests in collectables and personal use assets, this must be for genuine retirement purposes, not to provide any present-day benefit.

Assets such as artwork, boats, jewellery, vintage cars and wine are described as collectables and personal use assets.

Natural diamonds (including pink diamonds), when held in loose form, are not considered collectable or personal use assets. As such, they do not have specific storage and insurance requirements. However, for these types of assets it is recommended trustees:

• hold adequate insurance

• consider storage arrangements.

‘Diamonds held in loose form’ means they cannot be mounted, integrated into or used as an item for adornment or other purposes which would be inconsistent with the holding of the diamond in loose form for investment purposes.

Collectables and personal use assets can’t be:

• used by or leased to a related party (if leased to an unrelated party it must be at arm’s length)

• stored or displayed in the private residence of a related party (this includes all parts of the land the residence is situated on and all buildings on that land, such as garages or sheds)

• displayed in any other premises owned by a related party (they can be stored there provided they’re not visible to clients and employees).

You must keep a written record of the reason for deciding where to store the assets.

Collectables and personal use assets must be insured. You should consider the availability and cost of insurance before investing in them. Items must be insured within 7 days of the fund acquiring them and the fund must be listed as the owner and beneficiary of the policy.

These assets can be sold to related parties provided the sale is at market value as determined by a qualified, independent valuer.

Unpaid trust distributions

If your SMSF is entitled to a distribution from a related trust but you allow it to remain unpaid, you may contravene the:

• in-house asset rules

• arm’s length rule

• sole purpose test.

In-house assets

You are restricted from having in-house assets that comprise more than 5% of the market value of the SMSF’s total assets.

An in-house asset is any of the following:

• a loan to a related party of your fund

• an investment in a related party of your fund

• an asset of your fund that is leased to a related party, such as business equipment or machinery.

Any lease must be made on an arm’s length basis and reflect the market value.

If at the end of the financial year your SMSF’s in-house assets exceed 5%, you must prepare a written plan to reduce in-house assets to 5% or below. This plan must be prepared before the end of the following financial year. Trustees must also ensure the plan is carried out.

There are some exceptions to in-house assets, including:

• business real property that is leased between your fund and a related party of your fund

• some investments in related non-geared trusts or companies.

The in-house asset rules for assets owned before 11 August 1999 were defined differently. If your SMSF owns assets that were acquired before this date, you should review your fund’s investments to ensure you are complying with the current rules.

Decrease in asset values due to COVID-19

Some SMSFs may have experienced a decrease in asset values due to the economic impact of COVID-19. If this resulted in a breach of the in-house asset rules as at 30 June 2020, or the in-house assets being more than 5% of the total assets, the fund was required to prepare and implement a rectification plan by 30 June 2021.

Business real property

Business real property generally means land and buildings used wholly and exclusively in a business. It’s an exception to the in-house asset and related party acquisition rules.

If business real property contains a dwelling for private or domestic purposes such as a farm, it can still meet the requirements of being used wholly and exclusively in a business if:

• any dwelling used for private or domestic purposes is in an area of land no more than 2 hectares, and

• the main use of the whole property is not for domestic or private purposes.

Running a business in an SMSF

If running a business through an SMSF, it must be:

• allowed under the trust deed

• operated for the sole purpose of providing retirement benefits for fund members.

The rules governing SMSFs prohibit or limit some activities available to other businesses, such as entering into credit arrangements or having overdrafts.

You should get professional advice before running a business through your SMSF.

It is important to ensure the sole purpose test is not breached. Issues that attract our attention include those where:

• the trustee employs a family member (we look at things like the stated rationale for employing the family member and the salary or wages paid)

• the ‘business’ is an activity commonly performed as a hobby or pastime

• the business run by the fund has links to associated trading entities

• there are indications the fund’s business assets are available for the private use and benefit of the trustee or related parties.

Contact us if you have any questions regarding your SMSF, we’re here to help.

Source: ato.gov.au April 2025
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/smsf-investing/restrictions-on-smsf-investments/what-are-the-smsf-investment-restrictions.
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From bad reputation to dream destination

When you start researching for a trip overseas it’s easy to be swayed by what can be a lingering bad reputation of a region or country. The landscape of travel is constantly shifting and what may once have been a no-go zone can now be a dream destination – and vice versa.

Some of today’s most compelling places to visit were once dismissed as too dangerous, politically unstable, or simply unattractive. Thanks to urban renewal, political shifts, and the sheer resilience of local communities, these destinations have reinvented themselves and now welcome travellers with open arms.

Here are a few places that were once avoided but now deserve a spot on your bucket list.

Albania: Europe’s little secret

Let’s start with Albania. The once-hermit kingdom of Europe, it spent most of the 20th century shut off from the world under a dictatorship. Today? It’s a Mediterranean dream in disguise.

While tourists crowd into Italy and Greece, Albania’s beaches remain blissfully peaceful. The mountains are rugged, the food is incredible (think olive oil, cheese and stunning wines), and the prices? Almost suspiciously low. It’s a reminder that the best destinations are often the ones that haven’t been given the glossy treatment – yet.

And by going now, you’re not just ahead of the trend, you’re helping shape the nation’s tourism story from the ground up.

Rwanda: The quiet recovery

Few countries have flipped their narrative like Rwanda has. Once known for the horrors of the 1994 genocide, it is now one of Africa’s safest, cleanest, and most forward-thinking destinations. Kigali, the capital, is plastic-free, progressive, and is pulsing with creativity.

But the real magic lies beyond the city. Rwanda’s forests are home to some of the world’s last remaining mountain gorillas and tracking them in Volcanoes National Park is one of the most profound wildlife experiences on the planet. It’s not cheap, but every permit supports conservation and local communities so you can feel good about travelling with purpose.

There’s a quiet pride here and a sense of renewal. And for travellers, it offers that rare thing: a trip that’s humbling, hopeful, and unforgettable all at once.

Sri Lanka: The comeback island

Hop over to Sri Lanka, and you’ll find another country rising from the ashes of conflict and challenges. After decades of civil war, the 2004 tsunami, and an economic tailspin that led to widespread protests in 2022, the island nation has really started to shine as a holiday destination.

From leopard-spotting in Yala National Park to sipping world-class tea in the hill country, the island is a compact slice of paradise. The trains rattle their way through lush green hills, elephants roam wild, and its beaches are postcard perfect. Sri Lanka isn’t hiding its past; it’s simply writing a better future. It’s travel that feels good – and does good.

Vietnam: From conflict to cool

Vietnam is a nation that’s spun a difficult history into a compelling narrative. Once the setting for a war that defined an era, it’s now the backdrop for stunning cuisine and jaw-dropping natural beauty.

But what links Vietnam to places like Sri Lanka is its authenticity. The chaos of Hanoi’s Old Quarter, the sleepy magic of Hoi An, the emerald waters of Ha Long Bay all strike a chord when you remember just how far the country has come.

And yet, prices remain low and you can still find yourself the only tourist at a countryside café sipping egg coffee like a local.

The final boarding call

So, what do these places all have in common? They’re not perfect. And that’s exactly why they’re perfect. Destinations that have overcome hardship – be it conflict, natural disasters, or political upheaval – often offer something more rewarding than your average sun-and-souvenir spot.

These are places where your visit helps fuel recovery, where locals genuinely want to welcome you back, and where the scars of the past give way to a kind of hospitality you won’t find in more polished places.

So, skip the predictable and go where the stories are. Because sometimes, the best places to visit are the ones that were once off the map entirely.

Note: It’s crucial to stay informed about the current safety situation in any destination, even those that have undergone positive transformations. 

Smart moves before the financial year ends

The end of the financial year is an opportunity to optimise your financial strategy, take advantage of tax deductions, and set yourself up for the new financial year.

Whether you’re looking to maximise tax benefits, rebalance your investment portfolio, or to simply ensure you’re ticking all the right boxes, smart end of financial year (EOFY) planning can make a big difference.

So, to finish the financial year on a high note, start by mapping out your finances and investment portfolio and collect all the relevant documents. It can be a tedious task if your filing isn’t up to scratch, so it can be useful to set up a system as you go to make it easier for the next financial year.

You will need your bank statements, superannuation fund statement, self- managed super fund (SMSF) paperwork if relevant, a record of any capital gains or losses from the sale of assets such as shares or property, details of share dividends including any dividends earned through a Distribution Reinvestment Plan, and records of any other investments or income received.

Looking for deductions

On the other side of the ledger, there are limits on deductions for most categories of expenses but it’s a useful exercise to gather the evidence of all costs associated with employment and income-producing investments – whether or not they’re tax deductible.

For the most part at least, some deductions are allowed for certain work-related costs, donations over $2 to approved not-for-profits, the costs of managing your tax affairs, eligible investment property expenses, income protection insurance premiums (if the premiums are paid outside of your super fund), and expenses linked to a financial investment – such as attending a seminar directly related to the investment or the cost of account keeping fees on bank accounts used only for investment.ⁱ

The ATO is keeping a close eye on work-related expenses and working from home deductions this year, saying there must be “a close connection to your income earning activities, and you should be prepared to back it up with records like a receipt or invoice”.ⁱⁱ

Get ahead with early payments

One way of maximising deductions in this financial year is by paying early deductible expenses due next year such as insurance premiums, subscriptions, or business rent if applicable. But remember to check first to see which expenses may be eligible to prepay.

Small businesses also have access to an instant asset write-off for the business portion of assets under $20,000, that were purchased and used in this financial year. The instant asset write-off is available to businesses with an annual turnover of less than $10 million.ⁱⁱⁱ

Review your portfolio

At this stage of the year, it’s a good time to take stock of your investments including shares, superannuation and property. You may want to check that your investment strategy is still appropriate for your needs and expectations and review any underperforming assets.

The review will help you to decide whether you have an opportunity to top-up your super fund or SMSF. If you have funds to spare, making the most of the total contribution amount allowed both in this financial year and for the last five years, could give your retirement planning a serious boost.

It’s also a chance to review super indexation changes due from 1 July to see if there’s a need to take action before 30 June or to wait. For example, the amount that can be transferred into the retirement phase (known as the general transfer balance cap) will increase to $2 million on 1 July, up from $1.9 million this financial year. That might affect the decision to begin a pension this month as opposed to next.

There’s a lot to consider right now to make sure you’re optimising tax savings and that your planning today leads to a financial reward tomorrow. Give us a call if we can help.

i Deductions you can claim | Australian Taxation Office

ii ATO unveils ‘wild’ tax deduction attempts and priorities for 2025 | Australian Taxation Office

iii Instant asset write-off for eligible businesses | Australian Taxation Office