As we begin 2026, we extend our warmest wishes for a year filled with health, happiness and success. We look forward to embracing fresh opportunities and new possibilities.

We start the year with the release of the latest inflation data. While figures were lower than expected, economists remain divided about a February rate hike.

There was a larger-than-expected fall in the consumer price index to 3.4 per cent, with the Reserve Bank’s preferred measure of trimmed mean inflation down to 3.2 per cent.

While consumers were cautious in the lead-up to Christmas, with the Westpac–Melbourne Institute Index slipping from 103.8 in November to 94.5 mid-December, early reports show sales over the Christmas period were up on previous years.

Unemployment remained at 4.3 per cent and equity markets closed the year solidly with the ASX 200 up by almost 10 per cent (including dividends), although still short of its October high.

Looking ahead, all eyes will be on the RBA’s February interest rate decision as well as the fallout from the US attack on Venezuela.

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

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

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

The big picture

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

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

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

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

Economy

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

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

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

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

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

Property

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

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

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

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

Share markets

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

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

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

Commodities

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

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

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

Looking ahead

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

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

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

i Australian Dollar | Trading Economics

ii Home Value Index: Softer landing after strong 2025

iii Home Value Index: Softer landing after strong 2025

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

Designing the future, you want

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

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

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

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

Reflecting on the past

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

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

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

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

Building the framework

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

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

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

Law 1 – Make it obvious

Law 2 – Make it attractive

Law 3 – Make it easy

Law 4 – Make it satisfying

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

Implement and execute

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

Law 1: Make it obvious

• Design your environment so the cue for your habit is right in front of youExample: Put your gym clothes on the bed the night before

Law 2: Make it attractive

• Pair habits with something you enjoyExample: Only listen to your favourite podcast while walking

Law 3: Make it easy

• Reduce friction-make habits as convenient as possible
• Start small:
  • Do 2 push-ups
  • Meditate for 1 minute

LAW 4: Make it satisfying

• Reward yourself immediately after the habit
• Track habits so you feel progress
• Create a “don’t break the chain” streak

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

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

Set yourself up for kicking goals

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

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

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

The silent partner in your wealth plan

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

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

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

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

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

Safeguarding your family

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

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

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

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

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

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

Protecting your business

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

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

Risks can also be personal.

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

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

Car, home and contents

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

Reviewing your cover

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

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

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

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

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

i Income protection insurance – Moneysmart.gov.au

The Gut-Brain Connection in Kids: Can Food Really Help Heal the Mind?

In today’s world, more children than ever are struggling with their mental health. ADHD, anxiety, depression, autism spectrum disorders—these conditions are on the rise, leaving parents searching for answers that go beyond prescriptions and quick fixes. What if one of the most powerful tools to support a child’s emotional and mental wellbeing is something as simple—and profound—as what’s on their plate?

Welcome to the gut-brain connection: a revolutionary shift in how we understand children’s mental health. And yes, food really can help heal the mind.

The Gut-Brain Connection in Kids

Did you know your child has two brains?

Not in the science-fiction sense, of course. But the gut—home to trillions of microbes—is so rich in neurons and so closely linked to the brain that scientists call it the “second brain.” This gut-brain axis is a two-way communication highway, and what happens in the gut can directly influence mood, focus, and behavior.

This means that inflammation in the digestive tract, imbalanced gut bacteria, or food sensitivities might not just show up as tummy troubles. They can show up as mood swings, anxiety, poor concentration, even sleep issues.

The Food-Mood Connection in Kids

More and more research is confirming what functional medicine experts like Dr. Mark Hyman and Dr. Tom O’Bryan have been saying for years: food isn’t just fuel—it’s information.

Certain foods can send calming, healing messages to the body and brain. Others can trigger inflammation, stress hormones, and neurochemical imbalances.

Here’s how food influences mental health in children:

Ultra-Processed Foods & Sugar: Linked to mood instability, aggression, and brain fog. Many ultra-processed foods also harm the gut microbiome.

Artificial Dyes & Additives: Common in kids’ snacks and cereals, these have been associated with increased hyperactivity and behavioral issues.

Gluten & Dairy Sensitivities: In some children, these can contribute to leaky gut and neuroinflammation, which may worsen symptoms of ADHD or anxiety.

Omega-3 Fats: Found in wild fish, flaxseeds, and walnuts, these healthy fats are crucial for brain development and mood regulation.

Protein: Found in lean meats, dairy, nuts, seeds, fish and legumes, protein supports the gut-brain axis by providing essential amino acids that fuel neurotransmitter production, helping regulate mood, focus, and behavior in children.

Fermented Foods & Probiotics: These nourish beneficial gut bacteria, supporting a healthy microbiome—and a more balanced mind.

The Microbiome-Mind Connection

The gut microbiome—the ecosystem of bacteria living in the digestive system—plays a key role in producing neurotransmitters like serotonin, dopamine, and GABA, which directly affect mood and focus. In fact, about 90% of serotonin is produced in the gut.

When a child’s microbiome is imbalanced (a condition called dysbiosis), it can lead to emotional dysregulation, irritability, and even symptoms that mimic psychiatric disorders.

So what can parents do? 

It starts with getting back to basics. Functional and integrative medicine practitioners recommend a whole foods diet focused on:

• Fresh fruits and vegetables (especially leafy greens and colorful veg)
•  Quality proteins (organic poultry, grass-fed meats, legumes)
•  Healthy fats (avocados, nuts, seeds, olive oil)
•  Fibre-rich foods to feed good bacteria
•  Removing or reducing processed foods, added sugars, and artificial ingredients

Even small shifts can make a big difference in a child’s behavior, sleep, and emotional regulation.

 Of course, food is just one piece of the puzzle. A truly holistic approach to mental health also includes:

•  Identifying and addressing nutrient deficiencies (like zinc, magnesium, Omega 3s, or B vitamins)
•  Supporting detoxification pathways
•  Creating calm, screen-free environments
•  Healing trauma and stress through connection, therapy, and mindfulness
•  Working with practitioners who seek root causes, not just symptom suppression

What this new wave of research and clinical experience is showing us is deeply empowering: mental health is not set in stone. And for children, especially, the earlier we intervene with supportive nutrition and lifestyle choices, the more profound the healing can be.

Food is not the whole answer—but it is a powerful place to begin. Because when we nourish a child’s body, we also nourish their mind.

Source:
Reproduced with the permission of the Food Matters team. This article by THE FOOD MATTERS TEAM was originally published at https://www.foodmatters.com/article/the-gut-brain-connection-in-kids-can-food-really-help-heal-the-mind

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

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

Australia key indices year to December			Share markets (% change) year to December
	2024	2025		2024	2025
Economic growth	2.1%	1.8%	ASX All Ordinaries	7.5%	6.8%
RBA cash rate	4.35%	3.6%	US S&P 500	24.2%	16.6%
Inflation (annual rate)	2.8%	3.4%	Euro Stoxx 50	8.3%	18.3%
Unemployment (seasonally adjusted)	3.9%	4.3%	Shanghai Composite	12.7%	18.4%
Consumer confidence	92.8	94.5	Japan Nikkei 225	19%	28.0%

Sources: RBA, ABS, Bloomberg, CoreLogic, Trading Economics, Westpac Melbourne Institute.

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. As one commentator put it: “Over the past 12 months, the US has seen every norm of economic policy – trade policy, fiscal policy, monetary policy – blithely tossed aside.”ⁱ

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.ⁱⁱ

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 eased slightly in November 2025, while figures released in early January 2026 showed 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.ⁱⁱⁱ

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, and some suggest the risk of further rate rises this year may keep prices in check.

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.^iv

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.^v

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.^vi

The remarkable run drew comparisons with the last bubble and ultimate crash in 1980, after a rise of 713 per cent.^vii

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

Continued demand from China kept the price of iron ore steadily increasing in the last half of 2025.

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.

AI capability and implementation will grow apace, which is likely to see action on equity markets, but don’t forget warnings that the bubble may burst.

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

i Investors Are Flying Blind Into Policy Uncertainty | Bloomberg

ii Australian Dollar | Trading Economics

iii Home Value Index: Softer landing after strong 2025

iv Home Value Index: Softer landing after strong 2025

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

vi Silver Price History United States 2025: USD Silver Prices

vii Gold, silver and palladium prices pull back sharply | ABC

With summer now upon us, it is the season of family gatherings, end of year celebrations, and holidays. We would like to wish you and your family a happy and safe festive season.

The economy came under renewed pressure in November as inflation accelerated. The first full monthly CPI release showed annual inflation rising to 3.8% in October, up from 3.6% the previous month. The Reserve Bank kept rates on hold in November and some economists are warning a rate rise may be on the horizon, possibly before the end of the year.

Despite the uncertainty, consumers may be getting their mojo back. The Westpac–Melbourne Institute Consumer Sentiment Index surged in November to its highest level since February 2022.

Unemployment eased a little to 4.3% in October after hitting a four-year high of 4.5% in September but wage growth remains higher, prompting concern from the RBA over the continued tight labour market.

Equity markets were volatile around the world thanks to uncertainty over the growing AI bubble, rising government debt and the ever-changing US tariff regime. Surging commodity prices halted the slide of the Australian dollar in the last week of the month with gold hitting record highs and iron ore prices holding firm. The Australian dollar hit a two-week high, finishing the month at $0.653.

How generosity can be part of your financial plan

It’s the season for gifts, sharing meals and spreading cheer. But what if your festive generosity could do more? What if it could ripple through generations, perhaps shaping futures and maybe reduce your tax bill?

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.

i World Giving Index | CAF

ii Bequest Report | JBWere

iii Inquiry Report – Future Foundations for giving | Productivity Commission

Your money, your priorities

Investing may be all about the numbers – growth, returns and risk – to build a secure future but increasingly investors are interested in an even more meaningful approach.

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. Investor’s priorities are different and the investment universe is vast. That’s where a financial adviser adds value.

A good adviser doesn’t just manage numbers. They listen and take the time to understand what matters most to you, whether that’s supporting certain industries, avoiding others or balancing ethical considerations with performance goals.

From there, they help design a strategy that reflects your values without losing sight of your financial objectives.

Advisers also provide clarity. With so many investment options available, it’s easy to feel overwhelmed. We can help you navigate choices, evaluate trade-offs, and ensure your portfolio remains diversified and resilient. We can also monitor your investments regularly, making adjustments as markets change and your priorities evolve.

So, if you’ve ever wondered whether your investments reflect your values, you can begin exploring the possibilities.

Start by asking yourself about the principles that are most important to you; the industry sectors you would like to support or steer clear of and how you would define success.

Then, give us a call. We can help you to align your portfolio with your values while keeping your long-term goals on track.

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

Celebrating with heart – not habit

As the festive season approaches, there is a noticeable shift in the air. The days grow longer, school terms wrap up, and communities across the country begin to prepare for end-of-year celebrations in all kinds of ways.

For some, it is about unpacking boxes of decorations, preparing familiar family recipes and racing around the shops. For others, it is time to plan a beach day, host a casual BBQ, or simply enjoy a well-earned break from routine.

The festive season in Australia looks different for everyone. That’s part of what makes it so special. We live in a society full of rich cultural traditions. Some festive traditions have been passed down for generations, such as midnight Mass, lighting candles for Hanukkah, or gathering for a family meal on Christmas Day. Others have come to us through popular culture, often shaped by images of snowy winters and roaring fireplaces that don’t quite fit our sunny, southern hemisphere reality.

Think hot roast dinners in 35-degree heat, matching Christmas jumpers despite the sweat, and singing about snowmen and sleighbells.

And that’s okay. That’s part of the rich tapestry that is celebrating the festive season.

However, while tradition can be beautiful, it’s also worth asking yourself: do these traditions still bring joy to my life? Or am I doing them out of habit or obligation?

Reducing stress, reclaiming joy

The lead-up to the holidays can easily become overwhelming. This time of year often brings with it a long list of expectations about what to cook, how to decorate, where to be, and what to buy.

Trying to meet every expectation, real or imagined, can drain the joy right out of what is meant to be a time of celebration.

By letting go of pressure and embracing flexibility, we can shift the focus back to what really counts. Laughter. Connection. Rest. Reflection.

It is okay to opt out of what no longer fits. In fact, doing so often creates more space for what actually feels meaningful.

Rethinking what celebration looks like

While traditions can be a wonderful way to connect with our roots, they are not set in stone. Over time, life changes. Families grow and shift. Priorities evolve. The way we mark special moments can grow with us.

So, it is worth pausing to ask: are these traditions still adding joy to my life? Or am I continuing them out of pressure, or a sense of obligation?

Giving yourself permission to do things differently can be both freeing and fulfilling.

Making meaning in your own way

Reimagining tradition does not mean abandoning everything you love. It means choosing what feels right for you and creating space for joy, connection and rest – however that looks.

You might decide to swap the roast for prawns and salad and the pudding for a pavlova. Or ditch the mess of wrapping paper and presents in favour of shared experiences. You could even celebrate on a different day to reduce stress. Some people find joy in having a picnic in a beautiful location, taking a family beach walk at sunset, or simply spending the day unplugged from screens.

For others, creating new traditions might involve volunteering in the community or cooking dishes from their cultural heritage.

Whether your festive season is full of people or quiet moments, it only needs to reflect what matters most to you.

The season is yours to shape

There is no one way to celebrate. What is right for one person may not suit another and that is the beauty of it. The festive season does not have to look a certain way to be valid or joyful.

You might still love baking the same cake your grandmother made or singing carols in your street. Or you might find joy in starting completely new customs that reflect your values and lifestyle today. Either way, the important thing is that your celebrations feel true to you.

Small moments can become meaningful rituals too. A quiet morning coffee, a favourite song playlist, or calling someone you have not spoken to in a while are all things that can bring warmth and joy without adding stress.

Whatever this season means to you…

We hope it brings you joy.

Australia’s economy remained under pressure in October with a surprise bump in inflation, dampening hopes of a rate cut and prompting some economists to predict the next move in interest rates may be an increase.

Headline CPI rose to 3.2% in the September quarter, up from 2.1% in June, the highest quarterly rise in more than two years.

News of the higher-than-expected inflation numbers was followed by the biggest daily fall in the Australian share market in two months. Wall Street ended the month subdued with mixed results over concerns about no further rate cuts this year but optimism about US-China relations after a positive meeting between the leaders.

The lift in inflation appears to have rattled consumers. The Westpac–Melbourne Institute Consumer Sentiment Index fell 3.5% in October, adding up to a 6.5% drop in the past two months after gains between May and August when rate cuts were giving a boost.

The Aussie dollar strengthened by the end of the month, closing at US65.4c, making up some of the lost ground of the previous fortnight.

Unemployment rose to 4.5% in September, the highest in nearly four years.

RBA Announcement – November 2025

At its latest meeting, the Reserve Bank Board announced it was keeping the cash rate on hold at 3.60 per cent.

Please click here to view the Statement by the Monetary Policy Board: Monetary Policy Decision.

We’re watching closely what the banks do with their rates, as some of Australia’s biggest lenders may make changes to their rates despite the cash rate being on hold.

Please get in touch if you would like to discuss recent rate movements or if you would like to review your finance options.

Your retirement. Your way. Your adventure.

Retirement has often been seen as a time to slow down and enjoy the simple pleasures of daily life. And for many, that’s the dream. But retirement is no longer defined by one image or one path. In fact, it can be something much more expansive. Today, retirement is increasingly viewed as a time of freedom, possibility, and reinvention.

Retirement isn’t about stepping back. It’s about stepping into a new chapter where you decide what comes next.

Even if you are not yet there, and retirement is still a way off, it’s never too soon to think about who you want to be, what gives you joy, and start to gravitate towards living your dreams.

Let go of conformity, embrace freedom

Of course, you can live your dreams at any stage of your life but the exciting part about retirement is that you are no longer bound by the expectations that shaped your earlier years. You don’t have to earn a living anymore, so what you do with your time can be driven purely by passion, curiosity, or purpose.

For much of our lives, we learn to conform. We wear the suits, follow the rules, meet the deadlines, and often suppress our wilder ideas or untapped creativity to fit the roles expected of us, whether as professionals, parents, providers, or partners.

But something shifts later in life. With age often comes clarity, and a new kind of confidence. Retirement can be the moment when we stop asking what others think we should do and instead, begin to ask what our hearts are calling us to do.

This is your opportunity to push boundaries, shed old labels, and express your true self without apology. It is a time to honour your inner voice, whether that means embracing bold adventure, creating, starting over, or simply doing what feels meaningful to you.

Unconventional can be unforgettable

Retirement can be the perfect time to try something unexpected or bold. Consider these inspiring examples:

Isabella Rossellini

After being let go by Lancôme at age 45 for being “too old,” Rossellini redefined what aging looks like. She went back to school in her 50s to study animal behaviour, wrote books, bought a working farm, and later, in a full-circle moment, was rehired by the same brand that once let her go. Now in her 70s, she continues to model, act, write, and farm, all on her own terms.

Diana Nyad

At 64, Nyad swam from Cuba to Florida, a journey of 110 miles through open ocean, after four earlier attempts. It was a dream she had carried her whole life, and she proved that persistence and passion don’t expire with age.

Harriette Thompson

Harriette ran her first marathon in her 70s and, at 92, became the oldest woman ever to complete one. Her story is a celebration of physical endurance and mental strength at any age.

Anthony Hopkins

Well into his 80s, the Oscar-winning actor continues to create. He acts in major films, paints, composes music, and shares his work with younger generations online. He shows that creativity and passion do not have a use-by date.

Mother Teresa

Mother Teresa received the Nobel Peace Prize at age 69 for her work with “Missionaries of Charity,” a world-wide organization that helped the sick, the poor, the dying and left an incredible legacy of benevolence that continues today.

Finding your joy

This chapter of life gives you the rare opportunity to redefine yourself, or finally be yourself, in ways that may not have been possible earlier in life.

Whether your dream is to travel the world, volunteer overseas, write a novel, take up painting, or pursue a long-held interest that never fit into your working life, now is your chance.

And it doesn’t have to follow tradition. Retirement can be adventurous, creative, active, or entrepreneurial. It can be spent on a cruise ship, in a mountain village, running marathons, making movies. And you don’t have to set the world on fire – if what makes you happy is watching your roses bloom then go for it! The point is, this part of your life, is yours to shape.

Retirement is a time to live fully and follow your own path to what brings you joy.

What will your next chapter be?

Investing in rare earths requires patience and perspective

Few investment sectors combine geopolitical intrigue, technological innovation and long-term growth potential quite like rare earth elements (REEs).

For Australians, the recent deal with the United States to supply rare earths to seed US$8.5 billion worth of new projects, has thrust the sector into the spotlight.ⁱ

What are rare earths?

Rare earth elements are a group of 17 metallic elements that, despite the name, are not particularly rare but are difficult and costly to refine. Their unique properties are essential in the powerful magnets that drive electronic devices such as headphones, speakers and computers, wind turbine generators, electric vehicles and medical technology such as magnetic resonance imaging (MRI).ⁱⁱ

Almost half of the world’s known reserves of rare earths are in China. It’s estimated 44 million metric tonnes dwarf our 5.7 million and the 1.9 million in the United States. Brazil has about 21 million metric tonnes.ⁱⁱⁱ

Production and processing

Reserves are one thing but production and processing is what makes the difference for investors.

China is leading the field by a wide margin. It extracted and processed some 270,000 tonnes in 2024. The US was next with 45,000 tonnes, followed by Myanmar (31,000) and Australia, Nigeria and Thailand, each on 13,000 tonnes.^iv

Australia’s strategic position

The deal recently signed in Washington – the US-Australia Framework for Securing Supply of Critical Minerals and Rare Earths – commits both countries to investing at least US$1 billion each over the next six months to accelerate mining, processing and supply chain development for critical minerals.

Two of the projects were announced by Prime Minister Albanese after his recent meeting with US President Trump.

One project, the Alcoa-Sojitz Gallium Recovery project in Western Australia, will provide up to 10 per cent of total global supply of gallium, essential for defence and semiconductor manufacturing.

The second, the Arafura Nolans project in the Northern Territory, aims to supply 5 per cent of global rare earth demand by 2029.^v

A recently announced third project, Astron Corporation’s Donald Rare Earth and Mineral Sands project in western Victoria, is expected to become the fourth-largest rare earth mine in the world outside China.^vi

The landmark Australia-US deal is a response to China’s dominance in the rare earths market and Beijing’s recent export restrictions on rare earths, which have left many nervous about vulnerabilities in the supply chains for defence and high-tech industries.

Investment opportunities and risks

For some investors, rare earths may be seen as a long-term opportunity given a prediction by the International Energy Agency that demand could double by 2040.^vii

There are several ways to invest including:

• Directly in ASX-listed companies such as Lynas Rare Earths (LYC), Arafura Rare Earths (ARU) or Iluka Resources (ILO)
• Through exchange traded funds (ETFs) or managed funds that offer exposure to rare earths miners and processors
• In private equity and venture capital. For high-net-worth investors, early stage mining and processing ventures may offer high risk, high reward potential

Of course, there are risks worth considering including geopolitical volatility, growing environmental concerns over the high water and energy demands, and China’s ability to flood the market or further restrict exports, which could cause price volatility.

In any case, patience will be required. Mines can take as long as seven years to become operational.^viii

The bottom line for investors is while rare earths are a sector still maturing, they are critical to a range of industries and expected to increase in value over the next decade. However, their share prices are sensitive to global headlines, politics and policy changes, so volatility is to be expected – particularly in the current environment. 

As always, there is a lot to consider when weighing up investment opportunities and we are here to discuss any aspect of your investment strategy.

i Historic critical minerals framework| Prime Minister of Australia

ii What Are Rare Earth Minerals Used For? | The Institute for Environmental Research and Education

iii, iv Mapping rare earth supplies | ABC News

v Historic critical minerals framework| Prime Minister of Australia

vi Donald rare earth mine given major project status | ABC News

vii Outlook for key minerals | IEA

vii Many details remain buried in Australia-US rare earths deal | Crikey

Super tax shake up

Superannuation tax rules are changing again and there are implications for those with very large balances as well as those on lower incomes.

In a nutshell, the new plans include:

• more targeted tax rules for people with very large super balances
• extra support for low-income earners who contribute to super
• indexation (automatic increases) to make sure the tax thresholds keep up with inflation
• the removal of the proposed tax on unrealised gains

The new super tax rules will begin on 1 July 2026 and will be based on your total super balance as at 30 June 2027.

The changes follow feedback from industry groups, financial experts, and the public. Treasurer Jim Chalmers said the updates are designed to make the system fairer while still meeting the government’s goals.ⁱ

New rules for higher balances

If your total super balance (TSB) is more than $3 million, you’ll be affected by new tax rates on earnings.

Here’s how it works:

• for balances between $3 million and $10 million, earnings will be taxed at 30 per cent instead of the usual 15 per cent for the proportion of earnings between the thresholds
• for balances over $10 million, a tax of 40 per cent will apply on the proportion of earnings over the threshold

These are still concessional rates, meaning they’re lower than the top personal income tax rate, but they’re higher than the standard super tax rate.

The thresholds will be indexed over time. The $3 million threshold will increase in steps of $150,000 while the $10 million threshold will increase by $500,000 each time.

This means fewer people will be affected in the future as the thresholds rise with inflation.

Only a small number of Australians will be affected by the new rules. Less than 0.5 per cent of super account holders are expected to have balances exceeding $3 million in the 2026-27 financial year. The $10 million rule is expected to apply to fewer than 8,000 accounts, less than 0.1 per cent of all super accounts.ⁱⁱ

If you’re affected, you can choose to pay the tax from your super account or from funds outside of super.

No tax on unrealised gains

One of the most controversial parts of the original proposal was a tax on unrealised gains, meaning increases in the value of assets that haven’t been sold yet (such as property or shares).

This idea has now been dropped.

Instead, the new tax will only apply to realised gains (actual earnings such as interest, dividends or profits from selling assets).

Extra top-up for low income earners

The government is increasing support for low-income earners through the Low Income Superannuation Tax Offset (LISTO).ⁱⁱⁱ

LISTO is a 15 per cent tax offset paid by the government into the super accounts of people earning up to $37,000 a year and is worth up to a maximum of $500.

From 1 July 2027, the current LISTO income threshold will increase to $45,000 to match the top of the second income tax bracket. Around 3.1 million Australians will then be eligible for LISTO.

The maximum government top-up payment will also be increased from $500 to $810 to account for the recent increase in the Superannuation Guarantee (SG) rate to 12 per cent.

Special rules for defined benefits funds

Some judges and politicians are members of defined benefit super funds, which work differently from regular super accounts.^iv

Because it’s harder to calculate earnings in these funds, the government will develop equivalent arrangements to apply the new tax fairly.

We’re here to help you understand how the changes may affect your super and your long-term financial goals, so please give us a call.

i Reforms to support low-income workers and build a stronger super system | Treasury Ministers

ii https://www.superannuation.asn.au/media-release/proposed-super-tax-changes-will-make-system-fairer-for-low-income-workers-asfa/

iii Low Income Superannuation Tax Offset | Treasury.gov.au

iv Super contributions to defined benefit and constitutionally protected funds | Australian Taxation Office

Beware pushy sales tactics targeting your super

How to keep your super safe

The Australian Securities and Investments Commission (ASIC) has warned Australians to beware of high-pressure sales tactics aimed at getting people to switch superannuation providers.

The regulator has warned that “clickbait” ads, comparison websites and promises of unrealistic returns are among the tactics being used to entice Australians into switching their retirement savings, sometimes into risky or unsuitable schemes.

Here’s what to look out for — and what to do if you’re contacted.

Why you might be targeted

Promoters of these schemes often benefit financially when you switch your super.

For example, they might charge fees to your super fund for providing advice. They might also recommend setting up a self-managed super fund, which would incur set-up and ongoing administration fees, even if the product isn’t appropriate for you.

They could also benefit from fees or commissions for moving your superannuation into a different financial product.

Often, the salespeople will make you feel like you need to decide immediately or risk missing out. But it’s important to push back and take time to stop and think before risking your retirement savings.

During sales calls, the caller may transfer you to a licensed financial adviser. ASIC warns this can be a “tactic to show they are legitimate, but they will pass you back to the salesperson to collect information, provide the advice and close the deal.”

If you’re after financial advice, you can contact us.

Red flags to watch for

ASIC warns that consumers should be alert to these tactics and be cautious when contacted to review or switch their superannuation.

ASIC says red flags include:

• High pressure sales tactics.
• Cold calls.
• The touting of free superannuation ‘health checks’ and prizes (often via social media advertisements or websites).
• Offers to find and consolidate ‘lost super’ for free.
• The involvement of unlicensed people in the advice process.
• Predominant engagement over the phone with limited in-person client contact with a financial adviser.
• Poor or no product disclosure.
• Promises of high or unrealistic returns.

What to do if you’re contacted

If you receive a suspicious or unsolicited call about your superannuation, ASIC suggests:

• Hanging up immediately.
• Blocking the number of the caller and consider joining the Do Not Call Register.
• Reporting it to your super fund — if you have given out personal information, call your current super fund and tell them so they can block withdrawals.
• Talk to someone you trust – like a family member, friend, or speak to us.

How to check your super safely

If you’re wanting to check up on your super, keep in mind the Australian government has built an online comparison tool that can help.

The ATO’s ‘YourSuper comparison’ tool compares super funds that offer a ‘MySuper’ product. MySuper products are designed to be simple, low cost and easy to compare.

A good place to start your research is your annual super statement, which includes details about your fund’s fees and investment performance. Often, you can access a digital copy via your super fund’s website or online portal.

By being more engaged with super, you can make sure it’s working as hard as it should.

We can help you determine which super fund best suits your needs.

Source: October 2025
This article has been reprinted with the permission of Vanguard Investments Australia Ltd. Copyright Smart Investing™

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The Trustee has contracted with VIA to provide some services for Vanguard Super. Any general advice is provided by VIA. The Trustee and VIA are both wholly owned subsidiaries of The Vanguard Group, Inc (collectively, “Vanguard”).

We have not taken your or your clients’ objectives, financial situation or needs into account when preparing our website content so it may not be applicable to the particular situation you are considering. You should consider your objectives, financial situation or needs, and the disclosure documents for the product before making any investment decision. Before you make any financial decision regarding the product, you should seek professional advice from a suitably qualified adviser. A copy of the Target Market Determinations (TMD) for Vanguard’s financial products can be obtained on our website free of charge, which includes a description of who the financial product is appropriate for. You should refer to the TMD of the product before making any investment decisions. You can access our Investor Directed Portfolio Service (IDPS) Guide, Product Disclosure Statements (PDS), Prospectus and TMD at vanguard.com.au and Vanguard Super SaveSmart and TMD at vanguard.com.au/super or by calling 1300 655 101. Past performance information is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. This website was prepared in good faith and we accept no liability for any errors or omissions.

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© 2025 Vanguard Investments Australia Ltd. All rights reserved.

Few investment sectors combine geopolitical intrigue, technological innovation and long-term growth potential quite like rare earth elements (REEs).

For Australians, the recent deal with the United States to supply rare earths to seed US$8.5 billion worth of new projects, has thrust the sector into the spotlight.ⁱ

What are rare earths?

Rare earth elements are a group of 17 metallic elements that, despite the name, are not particularly rare but are difficult and costly to refine. Their unique properties are essential in the powerful magnets that drive electronic devices such as headphones, speakers and computers, wind turbine generators, electric vehicles and medical technology such as magnetic resonance imaging (MRI).ⁱⁱ

They’re also used in lighting as well as screens and displays for TVs, smartphones and monitors and are vital in advanced defence systems.

In 2023, Australia was a top five global producer of 14 mineral commodities, including rare earths in addition to the more familiar bauxite, black coal, cobalt, gold, iron ore, lead, lithium, manganese, uranium and zinc.ⁱⁱⁱ

Nonetheless, we’re a relatively small player in the market.

Almost half of the world’s known reserves of rare earths are in China.

China’s  estimated 44 million metric tonnes of reserves dwarf our 5.7 million and the 1.9 million in the United States. Brazil has about 21 million metric tonnes.^iv

Production and processing

Reserves are one thing (and exploration in Australia and around the world is continuing apace to discover new fields) but production and processing is what makes the difference for investors.

China is leading the field by a wide margin. It extracted and processed some 270,000 tonnes in 2024. The US was next with 45,000 tonnes, followed by Myanmar (31,000) and Australia, Nigeria and Thailand, each on 13,000 tonnes.^v

Australia’s strategic position

The deal recently signed in Washington – the US-Australia Framework for Securing Supply of Critical Minerals and Rare Earths – commits both countries to investing at least US$1 billion each over the next six months to accelerate mining, processing and supply chain development for critical minerals.

Two of the projects were announced by Prime Minister Albanese after his recent meeting with US President Trump.

One project is the Alcoa-Sojitz Gallium Recovery project in Wagerup, Western Australia. 

The Australian federal government will provide up to US$200 million in concessional equity finance for the project. The US government is also making an equity investment and Japan has provided about half of the project costs so far.

The project will provide up to 10 per cent of total global supply of gallium, essential for defence and semiconductor manufacturing.

The second project is the Arafura Nolans project in the Northern Territory. 

The Australian federal government is making a USD$100 million equity investment in the project. Once operational, this project is expected to supply 5 per cent of global rare earth demand by 2029.^vi

A third project has also recently been announced: Astron Corporation’s Donald Rare Earth and Mineral Sands project in western Victoria. A joint venture between Astron Corporation and the US uranium company Energy Fuels. It’s expected to become the fourth-largest rare earth mine in the world outside China.^vii

The landmark Australia-US deal is a response to China’s dominance in the rare earths market and Beijing’s recent export restrictions on rare earths, which have left many nervous about vulnerabilities in the supply chains for defence and high-tech industries.

The agreement aims to diversify global supply chains so that other countries rely less on China by accelerating project approvals, supporting local processing and encouraging more private investment through government-backed financing.

Investment opportunities and risks

For some investors, rare earths may be seen as a long-term opportunity given a prediction by the International Energy Agency that demand could double by 2040.^viii

There are several ways to invest including:

• Directly in ASX-listed companies such as Lynas Rare Earths (LYC), Arafura Rare Earths (ARU) or Iluka Resources (ILO)
• Through exchange traded funds (ETFs) or managed funds that offer exposure to rare earths miners and processors
• In private equity and venture capital. For high-net-worth investors, early stage mining and processing ventures may offer high risk, high reward potential

Of course, there are risks worth considering, with geopolitical volatility topping the bill. For example, global tensions or a change of mind by President Trump could easily disrupt the Australia-US deal.

Other risks include growing environmental concerns over the high water and energy demands for extracting and processing rare earth elements. There is also the risk of market manipulation and China’s ability to flood the market or further restrict exports, which could cause price volatility.

In any case, patience will be required. Mines can take as long as seven years to become operational.^ix

The bottom line for investors is while rare earths are a sector still maturing, they are critical to a range of industries and expected to increase in value over the next decade. However, their share prices are sensitive to global headlines, politics and policy changes, so volatility is to be expected – particularly in the current environment.

As always, there is a lot to consider when weighing up investment opportunities and we are here to discuss any aspect of your investment strategy.

A look at global rare earths mine production in metric tonnes in 2024, as per data from US Geological Survey.

ABC News Graphics

i Historic critical minerals framework| Prime Minister of Australia

ii What Are Rare Earth Minerals Used For? | The Institute for Environmental Research and Education

iii Geoscience Australia

iv, v Mapping rare earth supplies | ABC News

vi Historic critical minerals framework| Prime Minister of Australia

vii Donald rare earth mine given major project status | ABC News

viii Outlook for key minerals | IEA

ix Many details remain buried in Australia-US rare earths deal | Crikey

Information and resources to help you care for an older Australian.

Caring for the elderly or aged means caring for someone who is either:

• older than 65
• older than 50 for Aboriginal or Torres Strait Islander people.

It may be your parent, grandparent, extended family member or loved one.

You have access to the same services and payments as other carers. You may need to take time off work for caring responsibilities. You’ll need to make sure you also care for yourself.

When you care for an older Australian

Any help and support you offer, including physical and personal care, and emotional and social support, makes you a carer. The support could be unpaid or paid.

You may be able to get different payments, depending on the level of care you’re giving. These payments include:

• Carer Payment, an income support payment if you give constant care to someone who has a disability, has a severe medical condition, or is an adult who is frail aged
• Carer Allowance, a fortnightly supplement if you give additional daily care to someone who has a disability, has a medical condition, or is frail aged
• Carer Supplement, an annual payment that helps cover costs when caring for someone with a disability or medical condition. You’ll get Carer Supplement if you’re getting Carer Payment or Carer Allowance for a period that includes 1 July.

There are challenges to caring for someone. A key element of caring is good communication between you and the person you’re caring for. This includes having tough conversations with the person you care for about the type and level of care they need.

Levels of care

It’s good to discuss care needs early on. This means you and the person you care for can adjust the support needed over time. There’s help for the person you care for to remain independent and in their own home.

Help in the home

Services you can get can vary depending on need. This may include help with shopping or cooking, or help with accommodation and care services. Services Australia can help with some costs if you need help living at home or you’re entering an aged care home. There’s a lot to consider when you think about aged care.

On the My Aged Care website you can:

• read more about help at home
• use the Assessment Eligibility Checker to check if you qualify.

Services Australia have Aged Care Specialist Officers (ACSOs) who can provide you with financial information about aged care services. They can also help you understand the services and support available to you.

Source: Services Australia

Australia’s economy showed resilience in September, with inflation remaining sticky and the RBA holding rates steady at 3.6%.

Headline CPI rose more than expected, from 2.8% to 3% prompting analysts to push back forecasts for further rate cuts until November or early 2026. Core inflation fell slightly to 2.6%, edging closer to the RBA’s target band, but price pressures persist in housing and services.

GDP grew 0.6% in the June quarter, driven by a rebound in consumer spending and solid wage growth. The unemployment rate held steady at 4.2%.

Despite cautious consumer sentiment – the Westpac-Melbourne Institute Consumer Sentiment Index fell 3.1% in September – business confidence remains upbeat, particularly in retail and manufacturing.

Despite the August/September period noted for being seasonally weak, markets remain at near record levels. The ASX 200 was supported by strong performance in banking and mining stocks. US equities, meanwhile, continue to push higher off the back of the AI boom and anticipation of rate cuts.

Commodity prices and risk appetite helped the Australian dollar touch an 11- month high before easing slightly.

Market movements and review video – October 2025

Are you a glass-half-full or glass-half-empty investor?

When you think about the markets, do you see promise or peril? Are you the type to believe the glass is half-full, or do you focus on the half that is not there?

Your investing outlook can shape your decisions, influence your risk tolerance, and impact your long-term results. But which approach truly works best? Should investors lean into optimism or prepare for the worst?

The historical case for optimism

Historically, optimism has served investors well. Over the past century, markets in developed economies have consistently trended upward. Despite wars, recessions, political turmoil, and financial crises, the long-term direction of major stock indices like the S&P 500 has been positive. Investors who maintained confidence during turbulent times and stayed invested often reaped the rewards of compounding growth. This pattern suggests that a fundamental belief in human progress and economic expansion is more than just hopeful thinking.

Optimism encourages long-term thinking. It allows investors to endure volatility, view market declines as temporary setbacks, and see opportunities where others may only see risk. Warren Buffett, one of the world’s most successful investors, has repeatedly emphasised the importance of having faith in the future. As he famously said, “I am an optimist. It doesn’t seem too much use being anything else.” That sentiment reflects a mindset that has allowed him to stay the course through numerous economic cycles, always betting on the long-term resilience of markets and the human spirit.

The value of pessimism and caution

However, optimism alone is not enough. Investors who ignore risk in favour of hope can find themselves vulnerable when markets correct or when unexpected events occur.

Pessimistic investors tend to focus on risk management, as a pessimist always keeps in mind the possibility of the worst outcome. A pessimistic outlook helps investors anticipate potential downsides and implement strategies to mitigate risks, such as diversification and hedging. This cautious approach reduces exposure to unnecessary risks and prepares them for uncertain times.

Additionally, pessimistic investors are more likely to develop contingency plans for various scenarios, including economic downturns or unexpected personal events.

Thinkers like Nassim Taleb have built entire investment philosophies around recognising fragility and preparing for the unexpected. He is quoted as stating, “Invest in preparedness, not in prediction.” His approach emphasises the importance of stress-testing ideas and maintaining a strong margin of safety.

Balancing both perspectives

Many of the best investors are neither permanent optimists nor permanent pessimists. Instead, they are what we might call rational optimists. They believe in the long-term potential of markets and innovation but constantly evaluate risks and remain grounded in reality. This blend of forward-looking confidence and present-day caution allows them to stay invested without becoming reckless.

Rational optimism is not about predicting every up or down in the market. Rather, it is about applying common sense, preventing avoidable mistakes, and trusting that the long-term trend of progress will continue, even if the road is sometimes rough.

A practical, realistic approach

In practice, rational optimism means staying invested during downturns while managing risk thoughtfully. It involves having a plan that includes diversification, consistent rebalancing, and emotional discipline. It also means resisting the urge to overreact to headlines, hype, or fear.

The optimistic side helps investors believe in the future and recognise long-term opportunities in innovation, global growth, and improving productivity. The cautious side ensures they are not overexposed, overleveraged, or overconfident.

A rational optimist wins in the long run

The most successful investors are those who combine the belief in long-term progress with a realistic understanding of their tolerance of risk and risk management strategies. Investors should lean toward optimism to build wealth but temper it with a healthy scepticism to protect it. The ideal mindset is neither naive nor cynical. It is confident, but not careless. Hopeful, but prepared.

As Buffett suggested, it does not do much good to be anything other than optimistic. But as the great investors remind us, that optimism must be paired with careful thought and strategy. Believe in sunshine but carry an umbrella. The markets, much like life, reward those who prepare for the storms but never lose sight of the clearing skies that follow.

New aged care act: what you need to know

Sweeping reforms to aged care are set to begin on 1 November to help improve the quality, transparency and flexibility of care.

With more care levels, clearer pricing, and greater control over how your funding is used, the new system aims to better match services to individual needs. Providers will be required to offer detailed cost breakdowns, empowering you to make informed decisions about your care.

While the reforms are a step forward in care quality, they also come with changes in how services are funded and that may mean higher out-of-pocket costs for some.

What you pay depends on your financial situation – whether you receive a full or part pension or are self-funded – and the services you access.

As the aged care landscape evolves, staying informed is key to making confident choices. Whether you’re planning for yourself or supporting a loved one, understanding the new system will help you access the right care at the right time. 

Help at home

From 1 November the current Home Care Packages will be replaced by a new program called Support at Home.

The key changes include:

• Eight levels of care (up from four) to better match individual needs
• Extra funding for assistive technology, home modifications and palliative care

Services are expected to remain the same but the way you pay for them may change.

• For example, clinical care (such as nursing or physiotherapy) will be fully funded by the Government.
• You may pay more for everyday living services (such as meal preparation or cleaning) than you do for independence supports (like personal care or transport).
• The out-of-pocket costs for everyday living will range from 17.5 per cent for full pensioners to 80 per cent for self-funded retirees.
• Non-clinical support, like showering, will cost five per cent for full pensioners to 50 per cent for self-funded retirees.

If you were approved for a Home Care Package on or before 12 September 2024, you will be eligible for fee concessions to ensure you are not worse off under the new rules.

The package level you are assigned sets the total funding available to pay for care, with 10 per cent allocated to the care provider to cover the cost of care management.

You then work with your provider to decide how you want to spend the rest of the budget. The provider will set their fees for services and you will make a contribution based on your income.

Residential aged care

Room prices in aged care facilities have been steadily rising following an increase in the Refundable Accommodation Deposit (RAD) threshold from $550,000 to $750,000.

Higher RADs mean you may need to use more of your savings or income to cover aged care costs.

From 1 November 2025, anyone who moves into care after this date and pays a RAD, will have two per cent of that amount deducted each year, for up to five years.

You can still opt to pay a Daily Accommodation Payment (DAP), but this will increase every six months in line with inflation.

Other fees include:

• the basic daily fee (set at 85 per cent of the single age pension)
• a means-tested fee or non-clinical care contribution
• potentially a higher everyday living fee (previously known as extra or additional services)

Fee caps and planning ahead

The lifetime cap on aged care contributions continues. You won’t pay more than $130,000 (indexed) over your lifetime towards home care and residential care combined.

Understanding how the changes affect your financial future is vital. You’ll need to consider:

• whether someone will remain in the family home
• your current income and assets
• potential age pension entitlements
• estate planning strategies

Use the government’s fee estimator at MyAgedCare to get a clearer picture of your potential costs.

Get advice early

Navigating aged care can be complex and the upcoming changes add new layers of decision-making.

We can help explain your options, structure your assets, minimise fees and plan for your future care needs.

If you would like to discuss your aged care options, please give us a call.

Estate planning

How to develop an estate planning strategy to deal with your assets in the event of your death.

Estate planning involves developing a strategy to deal with your assets after you die – the legal instruments and structures, such as a will, you put in place to transfer your assets in the event of death.

Tax is a major consideration in estate planning, and strong governance relating to the tax aspects of estate administration can help manage the risks.

Ensure you or your staff have sufficient knowledge and skills to meet your responsibilities. Be prepared to seek assistance from external advisers on more complex tax issues.

Developing an effective strategy

Estate planning may be considered as part of your overall succession plan for your business. You may need to seek specialist advice on the most appropriate estate planning strategy.

Have a process in place to periodically review your strategy in conjunction with your advisers, including your legal, tax, superannuation and financial advisers.

Beware of schemes that claim to have estate planning purposes but are merely tax avoidance arrangements. An effective tax governance framework includes processes for evaluating various arrangements and the tax risks involved.

Preparing a valid will

If someone dies without a valid will, this is called ‘dying intestate’, and their assets are distributed according to the inheritance laws of the states and territories of Australia. In this case there is a risk that the undocumented intentions of the deceased person in relation to their estate may not be fully acted on.

Depending on the marginal tax rates of different beneficiaries, intestacy could potentially lead to an overall imbalance in the distribution of an estate due to higher rates of tax payable by some beneficiaries.

Planning ahead can avoid this result. When preparing a will, the will maker and their advisers can assess opportunities to manage the tax implications for beneficiaries.

Administering a deceased estate

As executor of a deceased estate, you need to understand your tax obligations, including:

• notifying us that you’ve been appointed as executor
• lodging a final return, and any outstanding prior-year returns, for the deceased person
• lodging any trust tax returns for the deceased estate
• providing beneficiaries with the information they need to include distributions in their own returns and, in certain cases, paying tax on their behalf
• paying tax on the income of the deceased estate.

Testamentary trusts

A testamentary trust is a trust established under a valid will, but it’s not the same trust as the deceased estate. A testamentary trust functions in a similar way to a discretionary family trust, with certain provisions of the will operating like a trust deed.

Like any trust, a trustee of a well-governed testamentary trust will:

• properly understand the tax profile of potential beneficiaries in the light of intended tax outcomes
• lodge a tax return for every financial year that it is in existence
• maintain proper trust account records (such as trustee resolutions, detailed financial statements and reconciliations), especially where a trustee is streaming capital gains or franked dividends
• fully document capital gains tax events, cost bases, and rollovers and other concessions claimed.

Depending on who is appointed as the trustee and appointor of the testamentary trust, there may need to be a high level of co-operation between family members to ensure that necessary tax, financial and other information is shared for the trust to operate effectively.

A well governed testamentary trust will ensure that tax outcomes are achieved and, more importantly, complex family or legal disputes can be prevented.

Capital gains tax

Special capital gains tax (CGT) rules apply to the transfer of any CGT assets from a deceased estate. You should seek specialist advice in relation to the CGT implications of passing on or disposing of the assets of a deceased estate.

Keep complete records of CGT assets. These will be needed by the executor and any beneficiary who receives a CGT asset from the estate.

Superannuation and death benefits

Ensure you understand the tax issues around estate planning and superannuation.

For example, the tax impact of distributions made under a binding death nomination is usually one of the major considerations in estate planning.

Assets held by a person in their superannuation fund are not automatically included in their estate. In the absence of a binding death benefit nomination, the trustee has the discretion to pay the benefits of the deceased to any of their superannuation dependents instead of the estate (rather than according to the will, which only deals with the estate assets), and of deferring tax consequences. Where a nomination is in place, the benefits will be paid to the nominated beneficiaries.

It’s good practice to regularly review the need for any nominations to ensure your superannuation benefits will be passed on to your nominated beneficiaries, and that the nominations are valid and effective. Seek advice on the tax implications.

Example: Reviewing your strategy as circumstances change

As part of your estate planning strategy, you make a binding death nomination to provide for your under-age children who would receive the benefit tax free. You get advice to ensure that the nomination is valid and effective.

You provide for your older children, who would be taxed on receipt of superannuation death benefits, in your will.

After some years, when all of your children are older, you review your strategy and make a new nomination that better suits your family’s tax situation.

Because your personal circumstances change from time to time, it’s important that you regularly review the estate planning and income tax consequences when it comes to the distribution of your superannuation assets to your beneficiaries. Areas that warrant attention include:

• the distinction between a ‘superannuation dependent’ and a ‘tax dependent’
• interaction with testamentary trusts
• effecting the reversion of a pension to spouse
• realising fund assets for payment to beneficiaries

Feel free to contact us if you have any questions.

Source: ato.gov.au
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/newsroom/smallbusiness/ . Important: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. 
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Private vs government-funded elderly care: what’s best for your loved one?

Older Australians can access both government-funded and private aged care services, each with different costs, eligibility rules and flexibility. Understanding the differences between these options can help you or your loved ones make informed choices about the right support at home or in care.

Elderly care is currently one of the most invested programmes by the Australian government. Over 1.3 million Australians are estimated to be currently receiving aged care services with a significant increase over the years. Given this growing population of elders, there is a focus on providing them with the right and deserved care. 

The government through various programmes like the Commonwealth Home Support Programme (CHSP), Home Care Packages, and the soon-to-be-launched Support at Home program have been committed to providing quality elderly care services to all citizens who are 65 and above (50 and above for Aboriginals). However, there is always a limit to every government-funded programme like eligibility and the long list of applicants. 

But you or your loved ones don’t necessarily have to wait for the government-funded programme. You can go for private aged care services. With private aged care services, you don’t need to meet certain requirements as outlined by the government. We will try to explain everything you need to know about choosing between the two elderly care options so you can make informed choices.

Understanding the two elderly care options 

Every Australian aged 65 and above is entitled to aged care services. This service can be government-funded or private. Both care types are good and offer a wide range of services. But in case you are divided about which to choose for a better support with respect to your needs, we will help you. First, you have to understand how both care types work.

Government-funded elderly care

Government-funded aged care referees to services that the government offers to older adults to help them live better, especially at home. These are provided under different programs such as Home Care Packages (HCP), Commonwealth Home Support Programme (CHSP), and the Support at Home Program which will be launched soon.

The government offers support and funding to participants of these programmes. With the provided support, elders can live comfortably and independently at home. The funding helps you to take care of your day-to-day needs and other financial needs you might have.

To access these programmes, you are required to meet certain eligibility requirements and pass an assessment by My Aged Care, the official providers of government-funded aged care services in Australia. The eligibility requirements include:

• You must be 65 years and above or at least 50 for Aboriginal and Torres Strait Islander people
• Require assistance at home
• Have physical or cognitive impairments 
• Homeless or at risk of becoming homeless

If you’re 65 and above or you have a loved one within the age bracket, you should check to see if you’re eligible for government-funded aged care services.

Government-funded aged care programmes offer a wide range of services, each tailored to the receiver’s basic needs and satisfaction. Depending on your needs, the services provided include:

Help at home

Here, your needs will be taken care of by trained caregivers in your home. You have nothing to worry about if you find it difficult to go through your day because you can’t perform tasks such as:

• Cooking
• Cleaning
• Laundry
• Bathing
• Moving around
• Using the bathroom

All these and more will be taken care of by caregivers who are trained to provide you with personalised services to meet your needs. Health professionals are also included in case you have health issues that may require a routine check-up and monitoring.

Short term care

If you need help after being discharged from the hospital or just had surgery, short-term care is your best choice. You will be provided adequate support to help you get the much-needed rest for quick recovery. You will receive help with: 

• Meal preparation
• Home arrangement
• Mobility
• Bathroom assistance
• Medication monitoring
• Monitoring for fall risks
• Taking a walk when necessary
• Physiotherapy is applicable, etc.

Aged care homes 

For those who can’t live independently, you have the option of moving into a retirement home. You will receive adequate care and support at a subsidised rate as set by the government.

Private elderly care services

Private elderly care services are very much like the government-funded ones. The only difference is in the funding. While the government provides funding and subsidies in the government-funded elderly care, individuals have to pay out of their pockets for private aged care services. Private aged care is provided by individuals or corporate agencies for a price, according to your needs.

In private elderly care, there are no eligibility criteria or assessments. You can hire a professional caregiver to help you in any way you deem fit. In light of this, private care is your go-to option if you happen not to be eligible for government-funded aged care services even though you need the help.

Services under private care include

• Private home care services for those who wish to remain at home while maintaining independence and dignity 
• Retirement community services if you wish to be a part of one and be taken care of by trained caregivers 
• Private nursing home services for those who wish to go into a nursing home.

Basically, private aged care provides the same services as the government-funded one. The only difference is that you have to pay for the services you receive. So if you wish to switch from a government-funded care package to a private one or add it to your government-funded care package, rest assured that you will receive as much care as you’ve been receiving all along.

Differences between private and government-funded elderly care services 

Different people have different opinions about which elderly care service is better. To answer the question, certain factors will have to be examined and only after then can you choose which you believe is better, according to your needs. To start off, let’s talk about the cost as it’s usually the crux of the matter for many people. 

Cost comparison and affordability

When it comes to affordability, government-funded aged care services take the lead. Under government-funded aged care services, you receive monthly funding which can be used for a number of needs like:

• Personal care 
• Meal preparation
• Laundry and house cleaning 
• Health care needs 
• Home modifications
• Transport support
• Assistance with social life
• Assistive technology
• Respite care 

All these services and more will be provided through the funding. The funding doesn’t exactly cover everything but you get to pay less through subsidies and set contribution caps. This way, you receive all the services you need in exchange for a small amount of contribution. Unless you require extra services not covered by the funding, you are good to go with handling the cost.

On the other hand, private aged care services come at a relatively high cost. You have to undertake payment for all the services you receive. Service charge may be calculated hourly or daily, depending on your agreement with the provider or private caregiver. Without government regulation, different providers offer their services at a wide range of prices.

Realistically, government-funded aged care is the way to go if you are not financially buoyant. Without enough pension funds or support from well-to-do family members, you will find it difficult to pay for private aged care services. 

Quality of care and service delivery

Quality of care can be seen from different perspectives. When it comes to deciding which aged care services provide better quality care, we can analyse it from three perspectives: training, availability and flexibility.

• Training

When it comes to training, government-funded elderly care can be said to be ahead. This is because government-approved providers ensure adequate screening and training before hiring a support worker. In addition, workers are bound to discharge their duties with diligence as misconduct can lead to punishment.

This is not to say that private aged care providers do not screen or train their workers but without government supervision, one cannot be sure of the hiring standard in place. Private support workers may or may not have the needed experience to perform their duties diligently.

• Availability

Due to the large number of participants in the government-funded programmes, the private aged care providers are relatively more available. Providing you with the right care when you need it is important, hence a good reason to consider private aged care services.

• Flexibility 

Private aged care services offer more flexibility than the government-funded ones. While the government is trying hard to ensure that services are tailored to every participant’s needs, there are still obstacles that must be overcome. Private care services are available at your disposal as long as you can pay, unlike the government-funded ones which limit the services provided to only the basic needs of the participant.

Personalisation and control

Personalisation is an important aspect of elderly care. Due to individual differences and differences in needs, no two individuals have exactly the same needs, hence a need to tailor services provided accordingly. In this aspect, the private aged care providers tend to offer better personalisation than their government-funded counterparts. 

In private aged care, the care receiver as well as their family can decide the kind of services they want and how they want them. Whereas in the government-funded care, services provided are mostly according to assessment which may or may not cover all the major needs of the participants.

However, efforts have been in motion to ensure a more flexible service option for government-funded aged care services. With the rolling out of the Support at Home program by November 1, care receivers will have more control over the kind of services they receive and how effectively their needs can be taken care of. This is a much-needed improvement which will give the government-funded elderly care programme a more efficient structure.

Combining both for better outcomes

Man’s needs are insatiable. According to Petyr Baelish, a character in the popular TV show, Game of Thrones, “It doesn’t matter what we want, once we get it, we want something else.” As a care receiver, your support needs evolve over time and somehow, the things you needed the most in the past may become the least of your needs as time goes by.

With these evolving needs comes the extra support and care you would require. As a government-funded elderly care receiver, these services may go beyond the scope of your support package. In such a situation, you might consider adding private care services to augment the situation.

This hybrid elderly care service offers more benefits than the individual services alone. You get to enjoy more flexibility and support of any kind without limits. A case study will help you understand this better.

Mr Smith is a participant in the government-funded elderly care programme. However, he has cancer. But he won’t stay in the hospital or nursing home, rather he has chosen to be at home. The government-provided elder care services manage his day-to-day requirements, ensuring his comfort at home.

However, he needs more than just that. He needs someone to monitor his condition and take emergency measures to keep him stable. This would require having a health professional around. So he hires a private nurse who comes in to ensure he’s adhering to his medication and taking his vitals to ascertain any development.

Mr Smith pays extra for the private nursing care but it’s worth it. His family and loved ones will rest assured that he’s in safe hands. That is the beauty of a synergy between private and government-funded elderly care services.

How to decide what’s best for your loved one

Knowing the pros and cons of both private and government-funded elderly care services may not be enough. Yes, you know what each service type offers but how do you know it’s the right one for your loved one? To solve this puzzle, here are some important questions to ask yourself:

• How urgent is your loved one’s need?

If your loved one needs urgent assistance, you should consider private care. The reason is that the application process and long wait list associated with government-funded elderly care may endanger your loved one’s life. When it comes to quick service delivery, go for private care as they are always ready to offer their services without ado. 

On the other hand, if your or your loved one’s needs are not immediate, then wait for government-funded aged care services. You can start early by getting all the information you need about eligibility criteria, support options and related fees from My Aged Care. Equipped with the right information, you can fast-track your enrollment into the programme. 

For example, you can start now to learn everything you need to know about the soon-to-be launched Support at Home program to be a part of the first recipients of the numerous benefits of the programme.

• What is your loved one’s current health status?

If your loved one has health issues in addition to being old, you may consider getting them private aged care. Private care workers are more readily available to assist your loved ones with health-related support of any kind. However, if you find out that your loved one’s needs are within the provisions of the government-funded elderly care services, then you can go with it. 

For support involving help with cognitive and/or mobility needs as well as chronic health conditions, you should probably get private aged care services. Here you can hire the right professional (s) to handle your loved one’s case, ensuring they are alright at all times.

• What’s your financial Situation?

As explained earlier, private care is expensive compared to government-funded elderly care services. There are no subsidies to help reduce costs so you have to pay in full for all your services. Also remember that as your needs keep evolving, so does the cost of providing for them increase. 

Getting government-funded elderly care should be fundamental in this case. So you start off with your immediate needs which the government-funded services can take care of, then you could go for a hybrid support when these needs go beyond your support plan provisions.

• What’s your availability?

You may want to still be involved in the care of your loved one such that you go for respite care where a caregiver comes in from time to time to take care of your loved one while you’re at work, on holiday, or just getting some rest. In this case, government-funded care is okay. Not much needs to be done. The caregiver can come in from time to time to check on your loved one while you stay with them and make sure they are safe and comfortable. 

If you still can’t decide which support type you should go for, consider speaking to a support provider. They will provide you with a clearer understanding of the available support options for both and how effective they can be in providing for your needs.  

Conclusion 

Private and government-funded elderly care services share many similarities in services provided but differ in how these services are delivered and the costs of accessing them. While private aged care services may be expensive due to a lack of government funding, they offer a better value for your money. Government-funded elderly care services on the other hand come at a subsidised rate, allowing you to save money for other needs. Understanding that each of the two care options has its own pros and cons and that your decision to choose either of them should depend on your needs would go a long way in helping you make the right choice

Source: This article was originally published on https://www.agedcareguide.com.au/talking-aged-care/private-vs-government-funded-elderly-care-whats-best-for-your-loved-one. Reproduced with permission of Care & Co Media.
Important: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. 
Any information provided by the author detailed above is separate and external to our business. Our business does not take any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

As Trump abandons the rulebook on trade, does free trade have a future elsewhere?

The global trading system that promoted free trade and underpinned global prosperity for 80 years now stands at a crossroads.

Recent trade policy developments have introduced unprecedented levels of uncertainty – not least, the upheaval caused by United States President Donald Trump’s sweeping tariff regime.

This is presenting some fundamental changes to the way nations interact economically and politically.

The free trade ideal

Free trade envisions movement of goods and services across borders with minimal restrictions. That’s in contrast to protectionist policies such as tariffs or import quotas.

However, free trade has never existed in pure form. The rules-based global trading system emerged from the ashes of the second world war. It was designed to progressively reduce trade barriers while letting countries maintain national sovereignty.

This system began with the 1947 General Agreement on Tariffs and Trade, which was signed by 23 countries in Geneva, Switzerland.

Through successive rounds of negotiation, this treaty achieved substantial reductions in tariffs on merchandise goods. It ultimately laid the groundwork for the establishment of the World Trade Organization in 1995.

‘Plumbing of the trading system’

The World Trade Organization introduced binding mechanisms to settle trade disputes between countries. It also expanded coverage of rules-based trade to services, intellectual property and investment measures.

Colloquially known as “the plumbing of the trading system”, this framework enabled global trade to expand dramatically.

Merchandise exports grew from US$10.2 trillion (A$15.6 trillion) in 2005 to more than US$25 trillion (A$38.3 trillion) in 2022.

Yet despite decades of liberalisation, truly free trade remains elusive. Protectionism has persisted, not only through traditional tariffs but also non-tariff measures such as technical standards. Increasingly, national security restrictions have also played a role.

Trump’s new trade doctrine

Economist Richard Baldwin has argued the current trade disruption stems from the Trump administration’s “grievance doctrine”.

This doctrine doesn’t view trade as an exchange between countries with mutual benefits. Rather, it sees it as as a zero-sum competition, what Trump describes as other nations “ripping off” the United States.

Trade deficits – where the total value of a country’s imports exceeds the value of its exports – aren’t regarded as economic outcomes of the trade system. Instead, they’re seen as theft.

Likewise, the doctrine sees international agreements as instruments of disadvantage rather than mutual benefit.

The US retreats from leadership

Trump has cast himself as a figure resetting a system he says is rigged against the US.

Once, the US provided defence, economic and political security, stable currency arrangements, and predictable market access. Now, it increasingly acts as an economic bully seeking absolute advantage.

This shift – from “global insurer to extractor of profit” – has created uncertainty that extends far beyond its relationships with individual countries.

Trump’s policies have explicitly challenged core principles of the World Trade Organization.

Examples include his ignoring the principle of “most-favoured nation”, where countries can’t make different rules for different trading partners, and “tariff bindings” – which limit global tariff rates.

Some trade policy analysts have even suggested the US might withdraw from the World Trade Organization. Doing so would complete its formal rejection of the global trading rules-based order.

China’s challenge and the US response

China’s emergence as the world’s manufacturing superpower has fundamentally altered global trade dynamics. China is on track to produce 45% of global industrial output by 2030.

China’s manufacturing surpluses are approaching US$1 trillion annually (A$1.5 trillion), aided by big subsidies and market protections.

For the Trump administration, this represents a fundamental clash between US market-capitalism and China’s state-capitalism.

How ‘middle powers’ are responding

Many countries maintain significant relationships with both China and the US. This creates pressure to choose sides in an increasingly polarised environment.

Australia exemplifies these tensions. It maintains defence and security ties with the US, notably through the AUKUS agreement. But Australia has also built significant economic relationships with China, despite recent disputes. China remains Australia’s largest two-way trading partner.

This fragmentation, however, creates opportunities for cooperation between “middle powers”. European and Asian countries are increasingly exploring partnerships, bypassing traditional US-led frameworks.

However, these alternatives cannot fully replicate the scale and advantages of the US-led system.

Alternatives won’t fix the system

At a summit this week, China, Russia, India and other non-Western members of the Shanghai Cooperation Organization voiced their support for the multilateral trading system. A joint statement reaffirmed World Trade Organization principles while criticising unilateral trade measures.

This represents an attempt to claim global leadership while the US pursues its own policies with individual countries.

The larger “BRICS+” bloc is a grouping of countries that includes Brazil, Russia, India, China, South Africa and Indonesia. This group has frequently voiced its opposition to Western-dominated institutions and called for alternative governance structures.

However, BRICS+ lacks the institutional depth to function as a genuine alternative to the World Trade Organization-centred trading system. It lacks enforceable trade rules, systematic monitoring mechanisms, or conflict resolution procedures.

Where is the trading system headed?

The global trading system has been instrumental in lifting more than a billion people out of extreme poverty since 1990. But the old system of US-led multilateralism has ended. What replaces it remains unclear.

One possible outcome is that we see a gradual weakening of global institutions like the World Trade Organization, while regional arrangements become more important. This would preserve elements of rules-based trade while accommodating competition between great powers.

“Coalitions of like-minded nations” could set high policy standards in specific areas, while remaining open to other countries willing to meet those standards.

These coalitions could focus on freer trade, regulatory harmonisation, or security restrictions depending on their interests. That could help maintain the plumbing in a global trade system.

Source: The Conversation

In a world of constant financial noise, from market updates and interest rate speculation to economic forecasts, it’s easy to feel overwhelmed and choose to do nothing.

But inaction can be costly when it comes to building long-term wealth. Whether it’s leaving money in cash, delaying investment decisions or ignoring the power of regular contributions, the financial consequences of sitting still can quietly erode your future goals.

Small, consistent actions can make a significant difference over time.

Inflation is a wealth killer

One of the most overlooked risks of doing nothing is inflation. While your money might feel ‘safe’ sitting in a savings account or term deposit, its purchasing power is shrinking every year.

For example, if you’d tucked $10,000 under the mattress in 2014, ten years later in 2024 it was worth just $6926.70 in real terms, thanks to the average annual inflation rate of 2.7 per cent. That’s a 30.7 per cent loss in value without spending a cent.ⁱ

Even in low-inflation environments, the real return on cash is often negative once you factor in tax and inflation. In other words, while your account balance may stay the same or grow slightly, your ability to buy goods and services with that money is declining.

The ‘cost’ of cash

Holding too much cash for too long can be a drag on your portfolio’s performance. While cash plays an important role in managing short-term needs and emergencies, it’s not designed for long-term growth.

Consider this:

• Over the past 30 years, Australian shares have returned an average of 9.3 per cent per year, while cash has returned 4.1 per cent annually.ⁱⁱ
• That difference compounds significantly over time. Based on those rates, $100,000 invested in shares could grow to approximately $1.4 million in 30 years, while the same amount in cash might only reach around $330,000.

By staying in cash, investors miss out on the growth potential of other asset classes like shares, property or managed funds.

The perils of ‘set and forget’

Many investors start out with good intentions. They set up a portfolio, make an initial contribution and then leave it untouched for years.

While long-term investing is a sound strategy, neglecting your portfolio entirely can lead to missed opportunities.

Here’s what you need to be aware of:

• Asset allocation changes – Market movements over time can affect your portfolio’s intended risk profile.
• Dividends – If dividends are paid out and not reinvested, you lose the benefit of the compounding effect.
• Changing goals – Your financial needs are likely to change as you age, but your portfolio won’t reflect that it’s unless reviewed.

So, annual check-ups can help ensure your investments are still working for you.

Missed opportunities

Compound interest is one of the most powerful tools in wealth creation. But compounding works best if you’re consistently contributing and reinvesting.

Consider two hypothetical investors who both invest $10,000 earning an average 7 per cent per annum:

• Investor A contributes an extra $5,000 each year
• Investor B contributes nothing after the initial $10,000 investment

After 30 years (and not accounting for fees and other costs):

• Investor A may end up with more than $500,000
• Investor B may end up with around $76,000

The difference? Regular contributions and the magic of compounding.

Even small, consistent investments can grow into a substantial nest egg over time. The earlier you start, the more time your money has to work for you.

You can do your own calculations with ASIC’s MoneySmart calculator.

From passive wealth to active growth

The cost of doing nothing can be even more pronounced for high-net-worth investors. With larger sums at play, the opportunity cost of holding excess cash or delaying strategic investment decisions can translate into millions of dollars in missed growth over time.

While capital preservation is important, so is capital productivity. Allocating funds across diversified asset classes can help balance risk while enhancing long-term returns.

Inaction, especially in times of market uncertainty, may feel prudent, but it often results in underutilised capital that fails to keep pace with inflation or evolving financial goals.

And don’t forget that tailored investment strategies such as tax-effective structures, philanthropic planning, and intergenerational wealth transfer all need regular review and active engagement. A set-and-forget approach can lead to misalignment with changing personal circumstances, regulatory shifts or market dynamics.

The key is to stay engaged. Whether it’s reviewing your family trust, updating your estate plan or rebalancing your portfolio, small, strategic adjustments could have a big impact.

After all, your financial plan should evolve with you. A portfolio designed five years ago may no longer suit your goals, risk tolerance or tax situation. Life changes – marriage, children, career shifts, retirement planning – and your investments should reflect those changes.

The bottom line

Doing nothing might feel safe but it’s often the riskiest choice of all. Inflation erodes your savings; cash underperforms over time and missed opportunities can delay or derail your financial goals.

The good news is that you don’t need to make dramatic moves or chase market trends. By taking small, consistent steps such as contributing regularly, reinvesting earnings and reviewing your plan regularly, you can build a strong foundation for long-term financial success.

To make sure your current strategy is on track, give us a call. We’re here to help you take control and make your money work harder for your future.

i Inflation Calculator | RBA

ii Vanguard index chart 2025

The best time to start planning for retirement is yesterday.

But the second-best time? Today.

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

Whatever the reason, an unexpected retirement can disrupt your plans and finances.

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

In fact, many people find themselves revisiting their retirement strategy later in life often after career changes or family shifts.

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

Where to begin

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

• your superannuation balance
• other savings or investments
• debts such as your mortgage, credit cards and personal loans
• expected retirement income sources including the Age Pension, rental income and part-time work

Boost your super

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

• Salary sacrifice Contributing pre-tax income into super can reduce your taxable income while boosting your retirement savings.
• Personal contributions You may be eligible for a tax deduction or government co-contribution depending on your income.
• Catch-up contributions You may be eligible to add to your super but be aware of the caps on contributions.ⁱⁱ

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

If you have more than one super account, rolling them into one fund can reduce costs and be easier to manage. After all, multiple accounts mean multiple fees.

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

Deal with debt

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

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

Reassess your lifestyle goals

Retirement isn’t just about money, it’s about how you want to live. Ask yourself:

• Where do I want to live? (Downsize, seachange, stay put?)
• How much travel or leisure do I want to fund?
• Will I continue working part-time or volunteering?
• What legacy do I want to leave?

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

How much will I really need?

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

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

Resources to help calculate a retirement income include:

• The ASFA Retirement Standard, which gives you an idea of the cost of different retirement lifestyles.
• The Super Consumers Australia’s Retirement Savings Targets helps estimate the savings you’ll need based on your age and spending plans.

Understand your entitlements

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

• Age Pension Based on income and assets, available from age 67 (for those born after 1957).
• Concession cards For discounts on healthcare, transport and utilities.
• Rent assistance If you’re renting privately and receive the Age Pension.

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

Review regularly and remain flexible

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

• Adjust for market movements or legislative changes
• Update your goals and spending patterns
• Ensure your estate planning is current

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

Next steps

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

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

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

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

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