For many investors, it’s not simply that super remains attractive but that the rules continue to change. Understanding these changes can help ensure your strategy takes advantage of available opportunities while staying on track with your financial goals.

A changing tax environment

Outside of super, tighter rules around the use of discretionary trusts and closer scrutiny of income distributions have reduced some traditional tax planning flexibility. Combined with the ongoing treatment of capital gains, this has made tax outcomes in non-super structures less predictable for some investors.ⁱ In contrast, superannuation continues to provide favourable tax treatment. This is a key reason why super is becoming increasingly important in long-term financial planning.

Payday Super – boost your retirement savings

One of the more practical changes is the introduction of Payday Super, which requires employers to pay super contributions at the same time as wages rather than quarterly.ⁱⁱ While this is primarily an administrative shift, it can have a real impact on individuals’ super balance. More frequent contributions mean compounding begins earlier. Over time, this could lead to improved retirement outcomes.

Higher contribution caps create more opportunities

From 1 July 2026, the concessional superannuation contribution cap (including employer contributions and salary sacrifice) increased to $32,500 from $30,000 in the 2025-2026 financial year.

Non-concessional caps have also increased, from $120,000 in 2025-2026 to $130,000 in the 2026-2027 financial year, enabling larger after-tax contributions. This can be particularly relevant for individuals who have accumulated savings outside super and wish to transfer funds into a more tax-advantaged environment.ⁱⁱⁱ

Carry-forward and bring-forward rules

Two existing rules continue to offer significant opportunities when used effectively.^iv

The carry-forward rule allows those with a total super balance below $500,000 on 30 June in the previous financial year to use unused concessional cap amounts from previous years. This can be especially beneficial for those with irregular income patterns, such as business owners or individuals returning to work after a break.

The bring-forward rule allows you to make several years’ worth of non-concessional contributions in one year, subject to eligibility criteria. This can be particularly useful when receiving an inheritance, selling an asset or restructuring investments.

Parental leave contributions

Another important development is the extension of super contributions to government-funded parental leave, introduced last year. It recognises the long-term impact that time out of the workforce can have on retirement savings, particularly for women.^v While the financial impact may appear modest in the short term, over time the effect of compounding can be meaningful.

Division 296 tax

One of the more widely discussed measures is the Division 296 tax, which applies an additional tax on earnings associated with super balances above $3 million.^vi

While this affects a relatively small proportion of investors, it represents an important shift in the superannuation landscape. The measure is designed to target very large balances, with the objective of limiting the extent of tax concessions at higher levels of wealth.

Transfer Balance Cap increase to $2.1 million

The increase in the Transfer Balance Cap to $2.1 million is another positive development, particularly for those approaching or entering retirement.

This cap determines how much can be transferred into the tax-free retirement phase. An increase allows more capital to benefit from a zero per cent tax rate on earnings, enhancing after-tax income in retirement.

Bringing it all together

Superannuation continues to offer a compelling tax environment, particularly when compared with other investment strategies that are facing increased complexity and scrutiny.

Contribution caps, along with carry forward and bring forward rules, provide multiple pathways to build super balances over time. Changes such as Payday Super and parental leave contributions highlight the benefits of regular, ongoing investment into super and the power of compounding. While new measures such as Division 296 introduce additional considerations, they do not diminish the overall value of super for most investors.

With so many superannuation options, our team are ready to help you find the plan that suits you the best, contact us here.

i Capital Gains Tax and Discretionary Trusts Reform | Treasury.gov.au

ii Payday Super | Fair Work Ombudsman

iii Contributions caps | Australian Taxation Office

iv Carry forward and bring forward rules | ATO

v Paid Parental Leave Superannuation Contribution | ATO

vi Better Targeted Super Concessions is law | ATO

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But alongside that good news is a quieter reality that deserves attention. 

Researchers now talk about the difference between lifespan and healthspan. Lifespan being the total number of years we live and healthspan is the number of those years we live in relatively good health, free from chronic illness or disability. 

Ideally, those two would move closer together. Increasingly, they are not. 

Globally, the average gap between lifespan and healthspan is now 9.6 years. Around the year 2000, that gap was closer to 8.5 years. By 2019 it had widened to 9.6 years, an increase of roughly 13 per cent in less than two decades.ⁱ In human terms, that means many people are spending close to a decade of later life managing ongoing health conditions rather than enjoying full independence and vitality. 

Those years matter. They are years spent adjusting, adapting and sometimes relying on more support than expected. 

The changing shape of ageing 

Today, many of the conditions that shape later life are chronic rather than sudden. Heart disease, diabetes, arthritis, respiratory illness and cognitive decline often develop gradually and require long-term management. 

These are not just medical diagnoses. They influence how easily someone can travel, maintain a home, participate in community life or simply move comfortably through their day. 

Life expectancy here remains among the highest in the world, which is something to appreciate. But living longer also increases the likelihood of living with at least one ongoing health condition. Women, in particular, tend to live longer than men and often spend more years managing illness. 

This is not a reason for alarm. It is a reason for thoughtful preparation. 

Why this conversation belongs in financial planning 

When most people think about retirement planning, they think about numbers. How much is enough? How long will savings last? What return might be achievable? 

But behind every financial plan is a human story. 

A longer life can bring extraordinary opportunities: more time with family, more experiences, more freedom. It can also bring periods of vulnerability. Planning with compassion means acknowledging both possibilities. 

Even within a strong public healthcare system, there can be significant ongoing out-of-pocket costs. Specialist appointments, diagnostics, medications, dental care, physiotherapy, mental health services and other supports can become part of regular life over time. 

Private health insurance premiums also tend to rise with age. Having a financial buffer can ease stress during times when health already demands attention. 

Support at home or in care 

Many people hope to remain at home as they age. That may involve home modifications, mobility equipment or in-home assistance. If residential aged care becomes necessary, accommodation payments and ongoing fees can meaningfully affect retirement savings. 

Thinking about these possibilities in advance is not negative. It is an act of care for your future self and for those who may help support you. 

Protecting quality of life 

Healthspan is not only about avoiding illness. It is about preserving dignity, connection and purpose. It is about being able to visit loved ones, participate in meaningful activities, pursue interests and remain engaged with the world. 

Financial flexibility helps protect those choices. It allows room to adapt, rather than react. 

Planning for both vitality and uncertainty 

The widening gap between lifespan and healthspan gently reminds us that retirement planning is about more than longevity projections. 

Some people will enjoy decades of robust health. Others may face health challenges earlier than expected. A well-constructed financial strategy considers both strength and uncertainty. It balances enjoying the present with preparing for potential future care needs. 

At its heart, planning is not about fear. It is about reassurance and confidence. 

Adding life to years 

Living longer is a gift. But the real aspiration for most of us is not simply to add years to life. It is to add life to years. 

Understanding the growing divide between healthspan and lifespan allows for more honest conversations about what ageing may look like. And it reinforces why financial planning is ultimately about wellbeing, not just wealth. 

A thoughtful plan cannot control every outcome. But it can provide stability, options and peace of mind. And in the later chapters of life, those things matter deeply. Contact us today to get yours right.

i Washington Post | wellness 

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The good news is that planning ahead and financial advice can provide choices and help avoid some of the stress.

Here are five things worth considering.

1. How will you pay for your room?

Room prices vary but average just over $600,000 across Australia. And with choices on how to pay, it is important to understand your options and the implications of each one.

You will have a choice to pay a lump sum, known as a Refundable Accommodation Deposit (RAD), make ongoing Daily Accommodation Payments (DAPs), or use a combination of the two.

You should seek advice to run the numbers on cashflow and overall wealth position to decide which option might work best for you.

2. Could your super help fund the move?

Your SMSF may be one of your largest financial assets, so it shouldn’t be overlooked when considering how to fund aged care.

You might consider withdrawing money from super to help pay a RAD rather than selling other investments, especially as these withdrawals are tax-free after age 60.

But before withdrawing money, it is important to understand what you may be giving up. The lump sum is mostly refundable when you leave care, but if you have taken it out of your SMSF, you won’t be able to put it back in.

3. Don’t forget about tax after death

Your super may be tax-effective while you are alive, but tax may be payable when it passes to beneficiaries such as adult children. The potential tax consequences for your estate might influence whether retaining money in super or using it to fund aged care is the better strategy.

It is also a good time to review your binding death benefit nominations and broader estate planning arrangements.

4. Who will manage your SMSF if you can’t?

One of the most important questions is also one of the easiest to put off – what happens if you can no longer manage your own financial affairs?

If illness or declining capacity means you can no longer perform your role as SMSF trustee, it is critical to have an appropriate enduring power of attorney in place so that person can take over the legal responsibilities.

Think carefully about who you appoint. They may ultimately have considerable control over one of your largest assets.

5. Rethink the structure

For some people, this planning process may raise another question: is an SMSF still the right structure for the next stage of life? This thinking will be impacted by the reasons why you set up an SMSF and the benefits it offers you – and every person needs to consider this for their own situation.

Need help with aged care decisions?

These are not decisions you should make alone. We offer licensed and specialist aged care advice, to help you make the right choices. If you’d like to talk through your situation or understand your next steps, reach out to our team today to discuss your situation here.

Our team are ready to help you plan ahead and provide financial advice to help you make the right choices for you and avoid some of the stress. Contact us here.

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The good news is that you may not need to find the money or cash your investments to pay this full amount as a lump sum.

When moving into residential aged care, you will be given a choice on how you pay for your accommodation. You can pay the full amount as a lump sum, known as a Refundable Accommodation Deposit (RAD), or pay a Daily Accommodation Payment (DAP), or you can choose a combination.

So, where do interest rates come into it?

If you choose the daily payment option, the amount you pay is calculated by converting the lump sum into a daily fee using a government-set interest rate called the Maximum Permissible Interest Rate (MPIR). When official interest rates increase, this flows through to a higher MPIR which currently sitting at 8.43% per annum – considerably higher than just a few years ago.

The rate is locked in when you enter care (unless you move rooms) but the higher current rates may change affordability and funding decisions for families now looking at care options. A strategy that may have made sense when interest rates were low may no longer be the most cost-effective approach today.

Under the current rules, you also need to take into account the impact of inflation-linked indexation each six months if you choose the daily payment option.

Make it your choice

One of the biggest misconceptions we still encounter is that the aged care provider decides how accommodation must be paid. Providers can set the room price, and some may prefer a lump sum, but the choice is yours.

You have the right to decide whether to pay a lump sum, a daily payment, or a combination option. Most people start with a daily payment and then if they choose, can pay the lump sum (in full or part) at any time after entry.

Because these decisions can have a significant impact on your cash flow, age pension, investments and even the value of your estate, it’s worth taking the time to seek advice before making a commitment.

Every family’s financial situation is different. Understanding your options and developing a strategy that suits your circumstances can help you make the most of your available resources and provide greater peace of mind during what is often a significant life transition.

The right advice won’t change the interest rate, but it can help ensure you’re paying for aged care in the way that’s right for you.

We offer licensed and specialist aged care advice, to help you make the right choices. If you’d like to talk through your situation or understand your next steps, book a conversation with our team to discuss your situation.

The post Why higher interest rates could make aged care more expensive appeared first on Direct Advisers.

Every year, around this time, I find myself wishing clients a ‘happy new financial year’. I get some funny looks. But I genuinely think 1 July deserves more credit than it gets.

We mark birthdays. We mark New Year’s Eve. But 1 July offers a unique opportunity to stop and check in on your money, your plans, and whether they still match where you’re at. I encourage you to pour yourself a cup of tea and work through our Clarity Checklist.

Check your super contributions

From 1 July, the amount you can contribute to super before tax, your ‘concessional contributions’, rises to $32,500 a year. If you’ve paid off the mortgage, the kids have moved out, or your income has settled into a more predictable rhythm, this is worth a second look. Many people set their super contributions years ago and never revisit them. A higher cap might mean an opportunity to put more away and reduce your tax at the same time.

It’s also worth checking whether you have unused cap amounts available from previous years. If your super balance is under $500,000, you may be able to carry forward unused concessional cap amounts from up to five years ago, on top of this year’s $32,500. For some people, that adds up to a much bigger contribution window than they realise.

Review your insurance

If you’re debt-free, congratulations, that’s no small thing. But it could be also worth checking whether the insurance you still hold, inside or outside your super, still earns its keep.

Premiums tend to climb as we get older. If the original reason for that policy (a mortgage, dependent children, a particular risk) no longer applies, it might be costing you more than it’s protecting.

Take stock of your net position

Once a year, I recommend to clients that they sit down and look at the full picture: everything they own, everything they owe, and how that’s shifted since last year.

Has your position improved? Stayed steady? Slipped a little? Whatever the answer, it tells you what to do next, whether that’s increasing your contributions, paying down debt faster, or simply confirming you’re on track.

If you’re drawing a pension, your minimum changes

If you receive an income stream from your super, known as an account-based pension, your minimum payment is recalculated every 1 July, based on your balance on that date and your age.

If you turned 65 this financial year, your minimum jumps from 4% to 5% of your balance. The same step-up happens again at 75 (6%) and 80 (7%). It’s a detail that’s easy to miss, but getting it wrong can have tax consequences, so it’s worth confirming with your fund or adviser.

Keep an eye on the Age Pension thresholds

For anyone close to the Centrelink asset test limits, there are other dates worth knowing. The lower asset threshold is indexed on 1 July, and the cut-off limits are indexed three times a year: 20 March, 1 July and 20 September.

If you’re near the Centrelink thresholds, even a small change in your assets, or the indexed figures themselves, can affect what you receive.

The updated thresholds for most individuals this financial year are:

Pensions Means Testing

Pension — Income free areas

Pension — Income limits — Resident

Pension — Assets free areas — Homeowner

Pension — Assets free areas — Non-homeowner

Pension — Assets limits — Resident — Homeowner

Pension — Assets limits — Resident — Non-homeowner

Make a New Financial Year Resolution

Unlike those commitments we all make at the start of each calendar year (how’s that gym membership going?), I encourage you to make a simple New Financial Year Resolution that’s easy to keep. Just 10 minutes to check in on your super, your insurance, your pension, and your current situation.

If you see something that no longer fits – fix it, flag it with your adviser, or come and talk with me. Making changes now really will make it a Happy New Financial Year.

To find out how we can help secure your financial future, Contact Us or call 02 6583 7588.

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Time for a portfolio review

A good first step is to review your investment strategy. With recent market volatility, things may have shifted and your risk tolerance may have changed considerably.

It’s also worthwhile checking your capital gains or losses before 30 June, as this 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.

Super contribution strategies

You should also check your super contributions as early as possible. If you have not reached the Super Guarantee (SG) contributions cap of $30,000, or $120,000 for non-concessional contributions, you may be eligible to make additional contributions to your super.

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.

You will also need to find out the cut-off date from your super fund, which is generally 25-26 June.

Speak to us about the various ways you could boost your super before the EOFY.

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

Division 296 super tax

It’s also important to note that Division 296 tax comes into effect on 1 July 2026 and applies to investment earnings earned during 2026–27 and the following financial years.

For those whose total super balance exceeds $3 million on 30 June 2027 there will be a 15 per cent additional tax on the proportion of earnings corresponding to the Total Super Balance (TSB) between $3 million and $10 million and an additional 25 per cent tax on the proportion of earnings corresponding to TSBs above $10 million.

Tax timing strategies

If you have regular deductible expenses, such as investment loan interest or annual costs, it may be useful for some to prepay 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.

Tax returns done right

While planning ahead for the EOFY is key, it’s also important to take the time to understand what the ATO is focusing on when it comes to preparing your tax return post June 30.

This year, the ATO will be 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:

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.

If you work from home for all or part of the week, you can use either the actual cost method or the fixed rate method.

Don’t overlook income

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

• 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.

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. Your accountant will be able to determine what should be declared.

If you’d like to talk to us about ways to boost your super before EOFY or questions about your investment strategies, call today to ensure everything is in place before 30 June.

Our team are ready to help you feel confident in the new financial year, contact us here.

Source: https://www.ato.gov.au

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“It’s easy to feel uncertain when markets are volatile or the headlines seem overwhelming. In my experience, having a well-considered plan and someone to guide you through the decisions can provide enormous peace of mind. Often it’s not about making dramatic changes—it’s about understanding your options and knowing you’re still on the right path.”

– Ursula Boorman, Managing Director, Direct Advisers

Markets have lurched from one direction to another; interest rates have lifted faster than expected, with the possibility of more increases in the months ahead, and there’s no end in sight to the global uncertainty.

While the market shocks are interspersed with periods of relative calm, The Reserve Bank of Australia (RBA) warns that the disruption could pose challenges to our financial stability.ⁱ

Nonetheless, the RBA says Australia is “well placed” to handle the uncertain times.

For those heading into retirement and focused on income security rather than speculation, having a clear view of the different retirement income options can help.

Account-based pensions

One of the most common retirement income options is an account-based pension, often started using superannuation savings. Your money stays invested, and you draw a regular income from the account, choosing the payment amount (subject to minimum annual withdrawals set by law) and the investment mix.ⁱⁱ

The appeal here is flexibility. You can adjust payments and investment options, and the remaining balances can be left to beneficiaries in your will.

On the other hand, account-based pensions are directly exposed to market movements. So, when markets fall, your account balance may be affected. That could reduce your future income, particularly if you continue withdrawals during a market downturn.

The risk is most significant in the early years of retirement. Losses combined with regular withdrawals can permanently reduce how long savings last, a challenge known as sequencing risk. Understandably, many retirees respond by spending less than they could afford, even when markets recover, simply to avoid the fear of running out of money later in life.ⁱⁱⁱ

Lifetime annuities

Annuities offer a different approach. In return for a lump sum investment, annuities pay a guaranteed income either for a fixed period or for the rest of your life. Because the payments are not linked to daily market values, they could deliver a strong sense of certainty, particularly when it comes to covering essential living costs.^iv

Lifetime annuities can provide a guaranteed income stream for life and may help reduce the stress that can come from market volatility.

While Direct Advisers has always considered a broad range of retirement income options, the low-interest-rate environment of the past decade meant that many lifetime income products were less attractive than alternative retirement strategies. Locking in capital when interest rates were at historically low levels often limited the long-term value these products could provide.

As interest rates move closer to historical averages, we are seeing renewed interest in lifetime income streams and are actively researching the latest solutions available in the market. For some retirees, these products may once again play a useful role in creating greater certainty and stability in retirement income planning.

Combining income streams

Rather than choosing between flexibility and certainty, retirees may benefit from using multiple income streams. This approach combines a guaranteed income source with a more flexible one.

For example, a lifetime annuity might be used to cover the basics such as housing, food and utilities, while an account‑based pension funds discretionary spending, travel or unexpected expenses. Research suggests this could lead to more stable income and greater confidence to spend, even when investment markets are volatile.^v

By ensuring your essential expenses are covered regardless of market conditions, you may be less likely to panic or cut spending during downturns.

The Age Pension

The Age Pension is an important part of the retirement income picture for many. It provides a government-backed, inflation‑linked income that is not affected by market performance. For eligible retirees, it can act as a valuable safety net later in life, particularly if personal savings decline.

Some lifetime income products receive concessional treatment under the Age Pension assets test, which can improve eligibility or payment levels. Understanding how different income streams interact with Centrelink rules can affect retirement outcomes.^vi

Retirement income is about what fits, not forecasts

There is no single best retirement income option. Each comes with trade‑offs between flexibility, risk, growth potential and control. What matters most is how well an income strategy matches your spending needs, risk tolerance and desire for certainty.

The right structure could help to reduce stress and support more confident spending in retirement. Uncertainty doesn’t have to mean insecurity.

Confidence Comes From Having a Plan

Periods of uncertainty can leave many people wondering whether they’re doing the right thing. Whether you’re approaching retirement, managing your investments, planning for aged care, or navigating a major life change, it’s natural to have questions about what comes next.

The good news is that you don’t have to figure it all out on your own.

At Direct Advisers, we’ve been helping clients navigate life’s transitions, market cycles, and changing circumstances for decades. While we can’t control what happens around us, we can help you put a plan in place that reflects your goals, adapts as life changes, and gives you confidence in your decisions.

As Ursula often says:

“Peace of mind comes from knowing you have a plan—and that you’re not facing life’s financial decisions alone.”

If you’re feeling uncertain about your next step, or simply want reassurance that you’re on track, we’d love to have a conversation.

Book a chat with Ursula and the Direct Advisers team today and let’s talk about what’s important to you and the future you’re working towards.

👉 Book a Chat: Book a Chat with Direct Advisers

i The Global Macro-financial Environment | Financial Stability Review, March 2026 | RBA

ii Income streams | Australian Taxation Office

iii Which super funds offer income for life? | SuperGuide

iv, vi Income streams – Age Pension | Services Australia

v How product layering can support retirement outcomes | ASFA

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Families may be stressed and worried, and the financial choices involved can have long-term consequences that are difficult, and sometimes impossible, to undo. 

Yet many Australians are navigating aged care with incomplete, confusing, or simply wrong information.

“Aged care decisions are often made during some of the most emotional and stressful times in a family’s life. The right advice isn’t just about understanding the rules and fees—it’s about helping families make informed decisions with confidence, knowing they’ve considered all the options available to them.” – Ursula Boorman, Managing Director, Direct Advisers

Decisions may look deceptively simple

Australia’s aged care system is complex. Fees, contributions, pensions, the family home, estate planning and cash flow are all interconnected.

On the surface, it can feel like you’re choosing between a few payment options or financial decisions. In reality, small decisions can affect: 

• How much do you pay for care over time
• Whether you keep or sell the family home
• Pension entitlements
• The financial security of a spouse
• What’s ultimately left as an inheritance for the family.

These are some of the biggest financial decisions many people will ever make, and they may be forced to make them during a crisis. Paying for help at this time is crucial.

Information isn’t the same as advice

Many families rely on information from government agencies, aged care providers, placement services, or other well-meaning services. These people mean well. But information is not the same as advice. And not everyone has the expertise to help you.

Information tells you how the system works. Advice looks at your actual situation (your income, your home, your objectives) and helps you to decide what makes sense for you. Advice also looks beyond the immediate issues to consider your whole situation and how this may change over time.

The problem is that the line between the two can become blurred. Families may not realise when guidance has crossed into advice, or that the person providing it may not be licensed or accountable for the outcome.

The risk of unlicensed aged care advice

Unlicensed aged care advice may sound confident and reassuring, but it comes with real risks. Unlike licensed advisers, unregulated providers aren’t required to:

• Act in your best interests
• Hold professional qualifications specific to financial advice
• Carry professional indemnity insurance
• Belong to an external complaints authority, or
• Be accountable for the advice they give.

If something goes wrong, the consequences can be serious and you may have nowhere to turn. We’ve worked with families who have:

• Sold the family home unnecessarily
• Paid higher aged care fees than required
• Missed out on Centrelink entitlements
• Locked themselves into poor long-term outcomes
• Had to untangle decisions made in a rush
• Created legal disputes within the family.

These mistakes are rarely obvious at the start and may only become clear months or years later.

What licensed aged care advisers do differently.

Licensed aged care advisers operate under an Australian Financial Services Licence. That matters because it brings important consumer protections with it.

A licensed adviser must:

• Act in your best interests
• Meet strict education and professional standards
• Hold insurance that protects you if something goes wrong
• Belong to an independent complaints scheme to help you resolve issues
• Be accountable for the advice they provide.

Importantly, licensed advisers are required to consider how aged care decisions interact with pensions, tax, estate planning, cash flow and future care needs.

It’s the bigger picture that is so important.

Having an experienced adviser in your corner means you’re not navigating the system alone.  Professional advice does cost money. But what you’re paying for is someone who can steer you calmly through the complexities when you’re overwhelmed and help you avoid expensive mistakes. 

You Don’t Have to Navigate Aged Care Alone

Aged care is one of the most significant financial and lifestyle decisions many families will ever face. With ongoing changes to legislation, funding arrangements, and care options, understanding what is best for you or a loved one can feel overwhelming.

At Direct Advisers, we know that aged care isn’t just about numbers—it’s about people, families, and ensuring the right support is in place at the right time. Whether you’re planning ahead, responding to a health event, or helping a parent transition into care, having access to licensed aged care advice can provide clarity, confidence, and peace of mind when you need it most.

As Ursula often reminds clients:

“The best aged care decisions are rarely made in a rush. Taking the time to understand your options today can make a world of difference to the choices available tomorrow.”

Need help understanding your options?

If you or a loved one are considering home care, residential aged care, or simply want to understand how the recent changes may affect you, we’re here to help.

Reach out to the Direct Advisers team here for a confidential conversation and take the next step with confidence, knowing you have experienced guidance by your side.

The post Why licensed aged care advice matters more than ever appeared first on Direct Advisers.

But one of the greatest risks to that legacy can be the challenge of dealing with sudden wealth. When adult children inherit large sums or significant assets without preparation, sometimes the result is family tension, poor decisions or erosion of wealth.

While precise figures vary, research and industry experience consistently show that many families struggle to preserve wealth beyond the second and third generations, largely due to behavioural and governance challenges rather than investment performance.

Building financial literacy

Financial capability is developed over years of exposure, education, and experience.

The Australian Securities and Investments Commission (ASIC) MoneySmart program emphasises that financial literacy is a core life skill, not simply a technical ability.

While an inheritance may be some years off, parents who are expecting to pass on some form of an inheritance, should begin involving their children in financial discussions where appropriate. This might include reviewing investment portfolios together, explaining the complexities of how superannuation works or discussing the rationale behind major financial decisions. Understanding how risk is associated with investing, and ongoing tax obligations is also essential to create the whole picture.

Practical experience is just as important as theory. Allowing adult children to manage a portion of investments, under guidance, can build confidence and accountability. This phased approach reduces the risk of overwhelm later, when financial responsibility increases significantly.

Gifting or loaning?

Another important consideration when supporting the next generation is whether to provide financial assistance as a gift or a loan. The decision has both ethical and practical implications.

Gifting can provide immediate support without the burden of repayment, allowing children to purchase a home, invest or establish a business. But unequal gifting among siblings may create perceptions of favouritism, even if the intention is fair. Clear communication and documentation of the reasoning behind decisions is essential.

Loaning, on the other hand, can maintain a sense of responsibility and fairness.

Loans structured with clear terms can encourage financial discipline and avoid creating dependency. Families often formalise the arrangements with written agreements that set expectations for repayments and interest. There are also taxation and legal considerations.

The Australian Taxation Office may assess certain arrangements differently depending on whether funds are genuinely gifted or loaned. Professional advice ensures that intentions are reflected correctly. Ultimately, the choice between gifting and loaning may come down to the financial maturity of the recipient and your estate plan.

Preparing the next generation beyond money

Financial preparation alone is not enough. Inheriting wealth also involves emotional and behavioural readiness.

Open conversations about wealth, values and expectations are important. This includes explaining the purpose of wealth, whether it is to provide security, support philanthropy or create opportunities for future generations.

Governance structures, such as family meetings, investment committees or advisory boards can also help heirs understand their roles and responsibilities and encourage collaboration.

Philanthropy is another powerful tool for preparing heirs. Involving children in charitable giving decisions can instil a sense of social responsibility. It reinforces the idea that wealth is not solely for personal use, but also a resource to benefit the broader community.

Managing the transition

Gradual transition strategies can ease the adjustment for both parents and children.

This might involve progressively transferring control of assets. For example, adult children may first participate in decision-making, then take on increasing responsibility for managing investments over time. Trust structures are often used for staged distributions, allowing flexibility and protection.

Regular reviews are equally important. As family circumstances change, so too should the plan. Marriage, divorce, business ventures or health issues can all affect how wealth should be managed and transferred.

A legacy of capability

Successful intergenerational wealth transfer is not measured by the size of the inheritance but by the preparedness of those who receive it. Financial literacy, decision-making and open communication are the foundations of lasting wealth. By investing time in educating and including the next generation, families can reduce the risks associated with sudden wealth and create a legacy that endures.

If you’d like to discuss how to prepare your family for a successful wealth transition, we’re here to help. Contact our team here.

The post Investing for the next generation appeared first on Direct Advisers.

EOFY creates the perfect environment for fraud. With refunds, payment reminders, super contributions, and updated financial documents all top of mind, scammers rely on urgency and distraction to trick people into handing over personal or financial information.

Knowing what to watch for can save you stress, money, and headaches. This guide highlights the most common EOFY scams and offers practical tips to help protect your finances before you act.

Fake ATO communications

A common scam involves messages pretending to be from the Australian Taxation Office. These can arrive as emails, text messages, or phone calls, claiming that a refund is due or that a tax debt must be paid immediately.

Scammers create urgency by threatening penalties, legal action, or freezing accounts. They often ask for payment via unusual methods like gift cards, cryptocurrency, or direct bank transfer. The ATO will never request payment in these ways.

Always verify suspicious communications independently. Do not click links or provide personal information in response to unexpected messages. If in doubt, search online to find the correct contact details.

Phishing emails targeting business owners

EOFY is a particularly high-risk time for businesses. Scammers often send emails that look like they come from payroll providers, accounting software platforms, banks, or even bookkeepers.

These emails may request login credentials, bank information updates, or contain attachments that install malware. Verify any unusual requests by calling the organisation using a trusted phone number. Never rely on the contact details or links provided in the email itself.

Even seemingly minor requests can be part of a larger scheme. A small error in payment details can lead to ongoing losses if scammers are able to redirect multiple invoices over time.

Invoice and payment redirection scams

Businesses finalising accounts are often targeted with fake invoices or intercepted invoices that have altered bank account details.

Because these payments are routine and expected, they can be processed without question. Always double-check any changes to payment details with the supplier before sending funds. A quick verification call can prevent significant financial loss.

It’s also wise to keep a consistent process for approving payments, including multiple checks or sign-offs for large amounts, to reduce the risk of falling victim to invoice scams.

Superannuation and investment scams

Scammers take advantage of EOFY financial reviews by promoting fake investment opportunities or superannuation schemes that promise high returns or tax advantages. Some even claim to help access super early to “avoid tax” or “invest better.”

Be cautious of unsolicited offers and guaranteed returns. Only consider changes to super or investments through verified and legitimate channels. Check any adviser or company through the official regulatory registers before taking any action.

Social media and SMS scams

Short text messages or social media ads claiming you are eligible for a tax refund are increasingly common. These often contain links to fake websites that collect personal information. Scammers may use official-looking logos, branding, and URLs to make the message appear legitimate.

Do not click on links from unexpected messages. Verify the legitimacy of any refund or offer through official websites and use secure channels for submitting sensitive information.

Staying safe

At EOFY, it’s important to slow down. Scammers rely on urgency. Messages that pressure you to take immediate action or threaten consequences are red flags. Verify first, act second.

Keep devices and software up to date, use strong and unique passwords, and enable two-factor authentication where possible. Keep an eye on your accounts for unusual activity and regularly review payment processes to make sure safeguards are in place.

EOFY should be a time to tidy up finances and plan for the year ahead. Protecting yourself from scams ensures that money stays where it belongs and that EOFY is a time for financial clarity, not stress.

For any questions or concerns about suspicious communications, contact us. A quick check now can prevent problems later and give peace of mind while managing your EOFY finances.

The post Common scams to watch out for at EOFY appeared first on Direct Advisers.