Wealthy Me November 2025 Newsletter
As we step into a new financial year, it’s the perfect time to reflect on your financial progress and focus on the opportunities that lie ahead.
June delivered a mixed picture for the Australian economy. While headline inflation continued to ease, underlying inflation rose, reinforcing expectations that interest rates may remain higher for longer. Consumer confidence also slipped back into pessimistic territory, while Australian share markets remained volatile amid ongoing global uncertainty.
Globally, markets posted solid gains despite continued geopolitical tensions and concerns around inflation and policy direction. The Australian dollar also weakened, finishing the month at a three-month low.
In this month’s newsletter, we explore why superannuation is more relevant than ever, why maintaining perspective is key to long-term investment success, practical ways to strengthen your digital defences in the new financial year, and our July Market Movements & Review video for a snapshot of the latest economic and market developments.
If you are interested in discussing the topics raised in this month’s newsletter, please don’t hesitate to contact us.
In the meantime, we hope you enjoy the read.
All the best,
The Wealthy Me Team
A range of superannuation changes that came into effect on 1 July 2026, are reinforcing the role of super as one of the most tax-effective investment structures available.
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.
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.
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.
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
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.
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.
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.
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.
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.
Please get in touch if you’d like to discuss any of these superannuation options.
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
In the weeks after the Federal Budget’s announcement to change the rules for negative gearing and the reduction to Capital Gains Tax (CGT), headlines continue to spark debate, and a familiar question lingers: what does this mean for my investments?
With ongoing global developments layered on top, it can feel as though some form of action is required.
But for long-term investors, the Budget itself is rarely the greatest risk to financial success. More often, it’s how we respond to the surrounding commentary that has the bigger impact.
When dramatic Budget announcements coincide with global uncertainty such as economic shifts or geopolitical tensions, the pressure to act can build quickly. Yet, markets absorb new information fast and much of what is announced has already been anticipated and reflected in prices.
This is where discipline matters most. Reacting emotionally can lead to decisions that fall outside a well-considered plan, such as selling quality investments or adjusting strategies based on a single policy change rather than long-term fundamentals.
A useful example is the market reaction during the early stages of the COVID-19 pandemic in 2020. Global markets fell sharply as uncertainty surged and many investors were desperate to sell.
Yet those who stayed invested or continued regular contributions would likely have benefited from the strong recovery that followed over the next 12 to 18 months. In contrast, those who exited the market would probably have had to face the difficult decision of when to re-enter and risked missing a meaningful portion of the rebound.
A decade earlier during the Global Financial Crisis, the ASX 200 took a dive and investor confidence dropped significantly. Many investors chose to move to cash to protect themselves but the markets began recovering well before economic conditions fully stabilised.
Again, those who remained invested or continued adding to their portfolios, likely benefitted from the recovery while many of those who moved to the sidelines probably missed the rebound.
Another common trap is chasing trends.
A sector highlighted by Budget incentives or a widely discussed ‘hot stock’ can seem compelling. But, by the time an opportunity becomes mainstream, it’s often fully valued or even overpriced. That can leave investors buying high and, after sentiment shifts, selling low.
Chasing trends can also erode diversification. Concentrating on a narrow set of opportunities may increase exposure to specific risks and possibly reduce the balance that a diversified portfolio is designed to provide, particularly during periods of volatility.
By contrast, a well-constructed portfolio takes a broader view. It reflects your goals, time horizon, risk tolerance and income needs, while recognising that markets move through cycles and leadership shifts over time. Not every asset performs well simultaneously, and that is a feature of diversification, not a flaw.
Importantly, a sound financial plan is designed with change in mind. Market fluctuations, policy adjustments and economic cycles are expected, not exceptional.
While regular reviews ensure your strategy stays aligned with your circumstances, these reviews typically lead to measured refinements rather than abrupt changes.
It’s also worth remembering that the Federal Budget mainly introduces fiscal measures affecting taxation, spending and incentives across different parts of the economy. These changes tend to play out gradually. Markets, on the other hand, are forward-looking and incorporate expectations well in advance, which reduces the impact of any single announcement.
For most investors, success is more about maintaining consistency through varying conditions rather than predicting policy outcomes. This includes continuing regular contributions, staying diversified and resisting the urge to make unnecessary changes driven by short-term sentiment.
Periods of heightened uncertainty can be where professional advice helps to keep you focused on your long-term goals. We can interpret any market changes or developments that have occurred and you may be unsure about, assess what is genuinely relevant to your situation and, importantly, provide a steadying influence when noise and emotion begin to creep in.
Ultimately, the Federal Budget is only one of many factors that influence markets. Decisions driven by emotion, loss of diversification or departure from a disciplined strategy tend to have a far more lasting effect.
By keeping your focus on long-term objectives and maintaining a consistent approach, you can navigate uncertainty with greater confidence.
Contact us to discuss how current events affect your plan and keep your investment strategy aligned with your long-term objectives.
As a new financial year rolls around, most of us have been busy getting everything in order. While you are ticking off your financial housekeeping tasks, there is one important area that deserves a spot at the top of the list: your digital security.
It is easy to overlook, but reviewing your passwords, security settings, and multi-factor authentication (MFA) is one of the most valuable things you can do to protect yourself as you step into the new financial year.
Cybercrime is becoming more common and unfortunately, more convincing. Tax time is a peak period for scams, phishing emails, and identity theft attempts. With so much sensitive financial information being shared and accessed, even a small security gap can have serious consequences.
A weak password or an old login is not just a minor oversight. It can be the entry point to your bank accounts, emails, or business systems. Once someone gains access, the fallout can be costly and stressful so take steps now to protect your financial future.
If you are still using passwords you created years ago, or reusing the same one across multiple accounts, now is the perfect time to clean things up. Strong, unique passwords are the first line of defence against cybercrime.
Use long, unique passwords for each account
Avoid obvious choices like names, birthdays, or common words
Try using a passphrase, a string of random words that is easy to remember but difficult to guess
Consider a password manager to generate and store passwords securely
Think of this as clearing out risk, not just clutter. A small investment of time now can save a lot of stress later.
Make it easier with a password manager
Keeping track of strong, unique passwords does not have to be difficult. Password manager apps are designed to do the heavy lifting for you. They securely store your passwords, generate strong ones, and even autofill them when you need to log in.
Some popular options include:
LastPass
1Password
Dashlane
Bitwarden
Using one of these tools turns password management from a chore into a simple, reliable system. Many also include features like security alerts and password health checks, helping you identify weak or reused passwords before they become a problem.
Passwords alone are no longer enough. MFA adds an extra layer of protection by requiring a second form of verification, such as a code sent to your phone or generated by an authentication app.
Make sure MFA is enabled on your:
Email accounts
Banking and financial services
Government portals
Cloud storage and work systems
Even if someone obtains your password, MFA can prevent them from gaining access. It is one of the easiest, most effective ways to protect your accounts.
The new financial year is the perfect time to review your online accounts, just as you would review your finances.
Delete accounts you no longer use
Check for unfamiliar logins or devices
Update your recovery email and phone number
Review which apps have access to your accounts
This simple audit ensures your digital footprint is tidy and that only the accounts you actively use are connected to your personal and financial information.
Your devices; including phones, tablets, and computers, are part of your financial toolkit. They should be included in your new financial year housekeeping routine.
Keep your system and apps updated
Use trusted security software
Set up screen locks or biometric protection
Avoid using public Wi-Fi for anything sensitive, or use a VPN if needed
Taking care of your devices protects not just your accounts but the information stored on them.
A new financial year is all about getting organised and setting yourself up for success. While it is easy to focus solely on finances, your digital security deserves equal attention.
Because the reality is simple, it is far easier to prevent a security issue now than to deal with the financial and emotional cost of fixing one later.
Make digital security part of your routine to move into the new financial year with peace of mind.
Stay up to date with what’s happened in the Australian economy and markets over the past month.
June delivered a mixed picture for the Australian economy as the new financial year begins. Headline inflation eased, but underlying inflationary measures rose to their highest level in almost two years, reinforcing expectations that interest rates may remain higher for longer.
Domestic data highlighted ongoing structural pressures. Building approvals remained subdued, signalling persistent constraints on housing supply despite strong demand. Consumer confidence weakened, falling 2.9% to 80.6, returning to pessimistic levels after a brief improvement in May.
Australian share markets were volatile, with the ASX 200 moving within a narrow range as investors responded to shifting rate expectations and global uncertainty.
Globally, shares delivered strong gains, however, risks remain elevated. In the United States, concerns about policy direction and financial stability unsettled markets, while geopolitical tensions including the on-again off-again ceasefire in the Gulf continued to cause inflationary and supply risks.
Click the video below to view our update.
Please get in touch if you’d like assistance with your personal financial situation.
