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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“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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If the ballpark numbers are at least remotely close, the amount of assets set to be transferred from one generation to the next in Australia over the coming decades will amount to trillions of dollars.

According to estimates within a 2021 Productivity Commission report, Australians aged 60 and over will transfer $3.5 trillion or an average of about $175 billion per year in wealth in the next two decades. A 2024 report by JBWere Australia had an even higher estimate of $5.4 trillion for likely wealth transfers in Australia over the next 20 years.

The largest part of this great wealth transfer will be between members of the “Baby Boomer” generation (people born just after the end of World War II through to 1964) and their children and other heirs.

It will include family homes, investment properties, superannuation money, direct shares and a wide range of other financial and non-financial assets.

The value of inheritances is not only likely to grow dramatically as wealth levels increase but it will be an increasingly important source of future income and assets for younger generations.

Show me the money

Vanguard’s 2025 How Australia Retires research found that 21% of working-age Australians and 8% of retirees expect to use an inheritance as a source of their retirement income.

Furthermore, 13% of working-age Australians and retirees said the family home would become an inheritance for their beneficiaries or children and they planned to keep it within the family when they died.

The conversation around inheritances interweaves with Australian government research that many Australians are not exhausting their superannuation savings before they die.

The 2023 Intergenerational Report found that most retirees draw down at the legislated minimum drawdown rates.

“This results in many retirees leaving a significant proportion of their balance unspent, for example, a single retiree drawing down at the minimum rates would be expected to still have a quarter of their retirement assets at death,” the report noted.

Treasury estimates in the 2020 Retirement Income Review included projections from Treasury that outstanding superannuation death benefits could increase to just under $130 billion in 2059, assuming there’s no change in how retirees draw down their superannuation balances.

A touchy subject

Australians collectively had around $17.7 trillion in household wealth at 30 June 2025, according to Australian Bureau of Statistics data, including property and other investments, cash deposits, and superannuation.

Meanwhile, the 2025 UBS Global Wealth Report showed we ranked second in the world for median wealth per adult at US$268,424, and fifth for average wealth per adult at US$516,640.

There’s potentially a lot of household money to go around, and a lot to be inherited.

But inheritance planning, unlike succession planning within a business, is an area that’s rarely discussed at the family level.

Most families regard subjects such as death and the future division of wealth as unpleasant and potentially sensitive when multiple heirs are involved.

But there’s a lot to be said for having open discussions within your family about the intended treatment of assets and future inheritances.

Creating a valid will, and specifically documenting how you want your assets to be managed and divided after your death, should be a key step in the inheritance planning process.

Residential real estate and superannuation, which combined make up more than three-quarters of total household assets, are the largest components of most inheritances.

Ensuring that any superannuation you have left over at the time of your death is distributed according to your wishes requires you to complete a binding death benefit nomination form provided by your super fund.

Seek professional advice

It’s important to be aware of any potential tax implications. For example, while superannuation distributed to a surviving spouse or dependent children is generally tax-free, non-dependents (including adult children) may be required to pay tax on amounts they receive.

Those inheriting assets such as property and financial securities may also face tax issues.

Estate planning can be complex. Speak to us about helping you and your intended beneficiaries map out an inheritance framework that also identifies issues such as potential tax liabilities is a prudent step.

To ensure a smooth transfer of inheritance and put the right plan in place for you, contact our team here. 

Source: Vanguard November 2025

This article has been reprinted with the permission of Vanguard Investments Australia Ltd. Copyright Smart Investing™

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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.

Our team are ready to help you put your best foot forward in 2026, contact us here.

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

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“Financial planning isn’t just about figures — it’s about purpose. When you connect your money to what matters most in your life, you give your money meaning and power.”
— Ursula Boorman, Managing Director, Direct Advisers

Understanding your priorities can help you make more confident decisions, reduce stress, and build a life that reflects your values — not just your balance sheet.

Four out of five respondents to a 2024 survey wanted their investments to have a positive impact in the world.ⁱ

The survey, by the Responsible Investment Association Australasia (RIAA), found 79 per cent of investors would be more likely to invest in funds or products that have been independently verified as responsible or ethical. Animal cruelty was a top concern for 66 per cent, followed by human rights abuses – 60 per cent, gambling – 56 per cent, companies that don’t paid their fair share of tax – 55 per cent, as well as tobacco, weapons and firearms all at 55 per cent.ⁱⁱ

This growing interest in responsible investment saw assets under management in Australian funds rise 24 per cent to more than $1.6 trillion in 2024.ⁱⁱⁱ

Meanwhile, a 2025 survey of 3,500 high net worth Australian investors found that sustainable investing is gaining traction as long as appropriate returns, clear risk and return profiles, and transparent performance reporting are in place.^iv

Adding value

Aligning your investments with your values isn’t about changing the way you invest, it’s about adding an extra layer of meaning to the process and shaping your portfolio to reflect what’s important to you.

For some, that might mean supporting companies that innovate responsibly or treat employees well. For others, it could mean avoiding industries that don’t align with their principles. There’s no single ‘right’ approach because your values are unique to you.

And here’s the reassuring part: investing with your values doesn’t mean sacrificing returns. Many businesses that operate with strong governance and long-term strategies have shown to perform competitively over time. So, you can pursue financial growth while feeling confident that your money is working in ways that matter to you.

In fact, the RIAA noted in 2024 a ten-year return on RIAA-certified products of 13.9 per cent, compared with 9.19 per cent for the rest of the market (Australian share funds).^v

Of course, fundamental investment rules apply. Diversification is one of the keys to successful values-based investing. But it’s not about limiting your choices, it’s about finding the right mix of investments that meet both your financial and personal criteria.

A well-constructed portfolio can include companies across different sectors that align with your principles while still delivering strong performance. This approach ensures you’re not only investing with purpose but also managing risk effectively.

Taking the first step

Turning this idea into reality can be complex. Investors’ priorities are different, and the investment universe is vast. That’s where a financial adviser adds value.

At Direct Advisers, we believe financial advice should always start with you, your dreams, your values, and your priorities. Money shouldn’t be something you simply manage; it should be something that actively supports the life you want to live.

If you’re unsure whether your current financial strategy truly reflects your priorities, now is a great time to take stock. A conversation can help you:

• clarify what matters most right now
• understand how your finances support your goals
• identify opportunities you may have overlooked
• feel confident and in control of your future

Planning with purpose leads to peace of mind — and a wealth strategy that works for your life, not the other way around.

Ready to realign your finances with your priorities?

We can help you to align your portfolio with your values while keeping your long-term goals on track. Contact our team here.

i, ii From Values to Riches 2024: Charting consumer demand for responsible investing in Australia – Consumer Research

iii, v Record $1.6 trillion committed to responsible investing, but greenwashing remains a major concern – Media Release

iv New EY survey: Australian investors more likely to stick with their adviser, though shifting expectations are reshaping the wealth management landscape | EY – Australia

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Giving isn’t just an act of kindness; it can also be a smart financial move. From helping loved ones today to creating a legacy for future generations, strategic gifting can align with your broader financial goals.

After all, Australians are generous. We consistently rank among the most charitable in the world with a study showing that, in the past year, 56 per cent of Australians have donated money and 31 per cent have donated their time.ⁱ

Australia, as a wealthy but ageing nation, is well-placed to grow charitable bequests, but the reality is less encouraging. The number of people leaving bequests to charities is low and the size of the bequests also “falls far short of international peers”, according to The Bequest Report by JBWere.ⁱⁱ

Why planned giving matters

Often, giving is reactive rather than planned. We might respond to a donation drive, an emotional TV ad, a friend’s fundraiser or gift property or shares to a family member.

But giving can also be intentional. Some people choose to set aside a portion of their annual income, commit to monthly donations or include charities in their wills. Others join workplace giving programs or support causes that reflect their values. In this way, generosity becomes less about impulse and more of a conscious decision.

There may be advantages in taking a more strategic approach. It can amplify your impact, build your reputation, open doors to new networks and potentially deliver tax benefits. Donations to organisations with deductible gift recipient (DGR) status can help to manage your tax position by reducing taxable income. If you give more than $2 to an organisation with DGR status, you can claim a 100 per cent tax deduction for your donation.ⁱⁱⁱ

Planned giving can help to create a lasting impact, building a legacy for family and community. It integrates generosity into financial planning, ensuring investments reflect personal or family values. In this way, it becomes a tool for involving younger generations in financial governance, teaching responsibility and shared purpose.

Strategic gifting can include early inheritance, education funding or contributions to a family trust. These approaches can reduce future taxes on your estate.

Structured giving options for lasting impact

For those looking to make a lasting impact on their communities, structured giving vehicles offer flexibility and control.

It can create long-term financial stability to favourite causes, providing predictable funding for charities. It can potentially reduce complexity in estate planning and ensure your wishes are carried out; and donating assets may offset capital gains tax liabilities.

Unlike mass market or other forms of giving, such as direct donations to charities, crowd funding and volunteering, structured giving involves using a vehicle designed to enable giving such as:

• Private Ancillary Funds – often used by families and individuals able to make a minimum initial contribution of $500,000 with a plan to grow the fund beyond $1 million.
• Public Ancillary Funds – suitable for those with a lower entry point of $20,000
• Community foundations or giving circles – enable donors to pool resources for local impact. Entry levels can be as low as $2,000.
• Donor Advised Funds or sub funds – a simpler, more flexible structure allowing donors to distribute funds over time. They can be established relatively quickly with some recommending an initial donation of a minimum $20,000.

Structured giving can also occur without using a dedicated vehicle through, for example, corporate cash donations or larger scale and planned contributions from individuals and families.

Giving isn’t just about generosity, it’s about creating a lasting impact.

We can help to create a giving strategy that supports your family and backs the causes you care about. Contact our team here.

i World Giving Index | CAF

ii Bequest Report | JBWere

iii Inquiry Report – Future Foundations for giving | Productivity Commission

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“Life’s Transitions don’t just happen to others, they can happen to any of us. When a relationship ends, the financial choices you make now will shape your next chapter.” — Ursula Boorman, Managing Director

More than 47,000 divorces were granted in Australia in 2024, down 3 per cent on the previous year. At divorce, marriages had lasted around 13.2 years. The median age of those divorcing was 47.1 years for men and 44.1 years for women.ⁱ

Divorce reshapes your financial landscape, dividing assets, splitting incomes and doubling expenses as two households replace one. The cost of divorce can be as much as $870,000 per couple, according to one estimate, which also finds that women – particularly older women – often experience a 30-45 per cent drop in living standards.ⁱⁱ

This financial strain is compounded by legal fees, potential spousal maintenance, child support obligations and the need to reassess retirement plans.

Step 1: Get a clear picture of your finances

Start by taking stock of your financial position to provide clarity when negotiating settlements and planning your future.

• List all of your assets, including property, superannuation, vehicles, bank accounts and investments.
• Identify liabilities, such as mortgages, credit cards and personal loans.
• Detail your income source,s including employment, Centrelink, child support and spousal maintenance.

Step 2: Budget for your new life

Post-divorce budgeting is more than balancing numbers. It’s about redefining your financial identity. You may need to adjust your lifestyle, reconsider housing options and build an emergency fund to cushion unexpected costs.

Don’t overlook your credit health. Joint accounts and shared liabilities can affect your credit score, even after separation. Close or convert joint accounts, monitor statements and make sure that bills are paid on time. Maintaining good credit and cash flow is important for securing housing loans and for your future financial stability.

Step 3: Understand asset division and superannuation

Property settlements can be complex and have serious tax implications. Assets acquired before or during a marriage, including super, are usually part of the asset pool. Super accounts can be split as part of a settlement, transferring a portion from one partner to the other, a move that can significantly affect retirement planning.

Don’t forget that timing matters in financial decisions during divorce. Rushing into asset division or investment choices while emotions are running high can lead to costly mistakes. Take time to understand your options, get independent advice and avoid making decisions based on short-term comfort, such as keeping the family home if it will unreasonably strain your budget. A measured approach helps protect your long-term security.

On the other hand, don’t forget there may be legal time limits to settlements, both for married people and de facto couples.

Step 4: Plan for tax and legal issues

Divorce can trigger other tax consequences, especially when transferring or selling assets. But make sure you’re aware of the possible capital gains tax rollover relief and stamp duty exemptions that may apply in your circumstances.

It’s also important to update your will, powers of attorney and insurance policies as quickly as possible.

Because these decisions have long-term effects, it’s wise to seek guidance from not only your lawyer but also a tax specialist and we are here to assist you and assess your financial situation.

Step 5: Rebuild with purpose

Once the dust settles, it’s time to rebuild.

Take the time to:

• Set new financial goals
• Develop an investment strategy suited to your risk tolerance
• Maximise your super contributions where possible
• Plan for retirement with revised expectations.

Final Thought: A New Chapter Worth Planning For

When a relationship ends, it isn’t just the past closing; it’s the beginning of a new life chapter. At Direct Advisers, we believe that managing your finances with clarity empowers you to shape a future filled with purpose and peace of mind. Planning your finances is one critical step—but so too is recognising the value of this season of change and embracing the opportunities ahead.

If you’re in the midst of separation or simply want to prepare for whatever comes next, reach out to our team. We’re ready to guide you through this transition, helping you make smart decisions today so you can live the life you want tomorrow.

Book your Life’s Transitions review and start building your next chapter with confidence. Reach out with confidence here.

i Marriages and Divorces, Australia, 2024 | Australian Bureau of Statistics

ii 6 Steps to Financially Plan for Divorce | My Wealth Solutions

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Australia’s underlying level of inflation is continuing to fall, and which paved the way for another official interest rate cut when the Reserve Bank of Australia (RBA) board met earlier in the month.

It was welcome news for borrowers, but not for most savers – especially the millions of Australians with money tied up in savings accounts who are heavily dependent on regular account interest payments.

When borrowing interest rates are reduced, account savings interest rates typically fall in tandem.

In fact, many financial institutions who had been pre-empting another rate cut and had already quietly started to reduce their account savings rates.

According to rates comparison website Canstar, only a handful of banks are now offering savings rates above 5%. And, in the majority of cases, receiving those rates are conditional on meeting minimum monthly deposit amounts or transaction numbers.

Just like the rates on savings accounts, term deposit rates have also been declining steadily over time, since well before the RBA lowered its official interest rate by 0.25% to 4.10% in February this year – its first rate cut since November 2020.

In fact, RBA retail deposits and investment rates data shows term deposit rates across a range of durations have been steadily declining since July 2024.

For example, the average 12-month term deposit rate for a $10,000 amount has been progressively reduced nine times since July 2024, from a peak of 4.50% to an average rate of 3.70% at June 30, 2025.

The average three-year term deposit rate for a $10,000 amount has been progressively reduced six times over the same period, from a peak of 3.95% in July 2024 to 3.05% at June 30, 2025.

The chart below tracks the average 12-month term deposit rate for $10,000 amounts between January 1995 and July 2025, highlighting the rise in account interest rates from their historical low point in early 2022 to their peak, and then their gradual decline since the middle of 2024.

Going down: Average term deposit rates have slipped

Banks’ Term Deposit Rates ($10,000) – 1 Year (Jan 2015 to Jun 2015)

Source: Reserve Bank of Australia.

Past performance information is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. 

Implications for savers and retirees

Many Australians, especially retirees, rely on the interest earned on their savings to cover their living expenses, and any reduction in interest rates can mean a substantial decrease in their income.

This has been the reality for many people over the course of the last year, and further cuts are on the near-term horizon.

The decline in savings rates also has broader implications for the economy.

When savers earn less interest on their deposits, they have less money to spend, which can lead to a decrease in consumer spending. This, in turn, can slow economic growth, as consumer spending is a key driver of economic activity. 

Additionally, lower savings rates can discourage people from saving, which can have long-term implications for financial stability.

Turning savers into investors

New research released has estimated that the implementation of certain retail investment reforms in Australia could potentially unlock at least $185 billion in excess cash savings and help more Australians achieve greater financial security.

These reforms include facilitating access to affordable financial advice, introducing tax incentives to boost investment outside of superannuation, improving financial literacy levels, and increasing fee transparency and competition.

For retail investors, the decline in term deposit rates and savings rates presents a challenge. With returns on traditional savings accounts and term deposits declining, some investors may need to look for alternative investment options to generate income.

While there are other income-generating options available, such as dividend-paying stocks and bonds that typically offer higher interest rates than savings accounts and term deposits, it is important for investors to carefully consider the risks and rewards of these investments before making any decisions.

In the meantime, the income road ahead for many people needing to generate income from their savings may become increasingly challenging as interest rates continue to fall.

Source: href=”https://www.vanguard.com.au/personal/learn/smart-investing/investing-strategy/preparing-for-another-savings-pinch”>Vanguard August 2025
This article has been reprinted with the permission of Vanguard Investments Australia Ltd. Copyright Smart Investing™

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For many women over 55, this question becomes real after a major life transition. The death of a parent. The end of a long marriage. A late-career redundancy. An unexpected inheritance. These moments often arrive quietly but leave a profound mark.

As a female independent financial adviser, I work with women who find themselves at this crossroads. The path ahead might feel uncertain. But with the right guidance and support, it can also be purposeful, hopeful, and empowering—a new pathway toward clarity and confidence.

The Emotional Weight of Financial Change

Money is never just numbers. When it’s connected to loss, separation, or upheaval, it carries emotion—grief, guilt, fear, even resentment. For example, an inheritance that seems like it should bring relief might instead feel like a burden.

“What would Mum have wanted me to do with this?” is a common question.

Similarly, after divorce or redundancy, there is often uncertainty:

“Will I be okay on my own? Can I afford the future I want?”

These are deeply human questions, and they deserve a space where you’re heard—not rushed or overwhelmed.

What Real Financial Advice Looks Like in These Moments

Financial advice during major life transitions is not just about spreadsheets or super funds. It’s about:

• Slowing down the decision-making process
• Clarifying your new financial reality
• Understanding what options are available (without pressure)
• Exploring what matters most to you now, not who you were five or ten years ago

As an independent adviser, I don’t work for a bank or product provider. That means I can sit beside you, not across from you. My role is to offer perspective, structure, and calm—to help you make good decisions in your own time.

Rediscovering Purpose: The Role of Ikigai

In Japanese culture, there’s a beautiful concept called Ikigai—your reason for being. It sits at the intersection of what you love, what you’re good at, what the world needs, and what you can be paid for.

Even after a profound change, your Ikigai doesn’t disappear. It might evolve. It might get quieter. But with space and support, it can be rediscovered and reimagined.

When we make financial decisions aligned with your Ikigai, they tend to feel clearer, more confident, and more enduring. Money becomes a tool for living well—not something to fear or figure out alone.

You Don’t Have to Do This Alone

One of the most powerful things a woman said to me after receiving financial advice was this:

“I thought I had to know everything before I came to see you. But you helped me see that it’s okay to begin exactly where I am.”

You don’t have to know everything. You just have to take the first step.

Whether you’re navigating grief, freedom, fear, or all three at once—I’m here to help.

Let’s find your way forward—toward a pathway to good advice and a life that feels like your own again.

If you’re ready for thoughtful, independent financial advice that meets you where you are, reach out for a confidential chat.

By Ursula Boorman

Reference:
García, H., & Miralles, F. (2016). Ikigai: The Japanese Secret to a Long and Happy Life. Penguin Books.

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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. For help and advice, reach out to our team here.

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

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