Tracking your spending is a way to take control of your money. Knowing where your money goes can help you spend less and save more.

1. Track your spending and expenses

First, get a clear view of where your money is going day to day.

Choose how long to track

One week for daily spending

Start small by recording your spending every day for at least a week. This way you can see all the money going out.

Fortnightly or monthly for recurring expenses

If you have some weeks or months with more expenses, commit to a ‘financial fortnight’ or ‘money month’. Tracking over a longer period gives you a more realistic picture.

Record what you spend

Get transaction statements

When you use a card or phone app to make a purchase, every transaction is recorded. Access these transactions through your online banking or hard-copy statements.

Use a phone app

An app is an easy way to track your spending at the time you spend. You can also set spending limits and reminders, and see your expenses at a glance.

Write it down

Record the amount, item (or store name) and date. Do this for both cash and card purchases as you spend. Or keep receipts and do your tracking at the end of the day.

Do it every day

Don’t worry about changing your spending habits straight away. Just record day by day.

To stay motivated, try tracking your spending with a partner or friend.

2. Look at your spending habits

At the end of your tracking period, look at your recorded transactions to see where your money is going.

It may surprise you how much small things can add up. You could also discover hidden costs. For example, account fees, subscriptions you don’t use anymore, or mistaken transactions.

You often find that, just by being more aware of your spending, you can start to spend less.

If you want to spend more mindfully, try taking a moment before you buy something. Ask yourself: Do I need this right now? Can I get it cheaper somewhere else? This helps you be in control of your spending choices.

3. Change your spending habits

Now you know where your money goes, making small changes can make a big difference. You don’t have to do everything at once — pick one spending habit to start with.

Separate needs from wants

Look at all your transactions and highlight what are ‘needs’ — essential items you need to live.

The ones left over are ‘wants’. These are the things you could cut back on or live without for a while, to save money. Is there anything you would like to change?

Find a quick win

Cancel anything you don’t need, like a subscription or membership you’re no longer using. Or try cutting back on one small, frequent expense, like takeaway food.

Start a savings habit

With the money from your quick win, start saving for the things that matter most.

Set up a savings account or an emergency fund.

Set limits and reminders

Knowing how much you spend on wants, try setting a realistic limit for the next week or month. This can help you avoid overspending.

Set calendar reminders for when regular expenses are due. Then put aside money to cover these payments.

Do a budget

Now you know where your money is going day to day, take it a step further and do a budget. This helps you prioritise where you want your money to go.

Having a budget lets you see how you’re going month to month, and year to year. So it is easier to stay on top of expenses and save for the things you enjoy.

For a step-by-step guide, see how to do a budget.
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/budgeting/track-your-spending
Important note: 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.  Past performance is not a reliable guide to future returns.
Important
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.

By doing a few calculations you can easily see if your portfolio is still on track.

If you’re someone who likes a good balance in your investing life, now may be a good time to do some calculations.

It’s not something you must do, but doing so may give you some extra peace of mind if your investment strategy involves having a specific percentage of your capital invested in certain asset types.

As asset values tend to rise and fall on an ongoing basis, your investment allocations may have moved out of alignment with your intended percentage exposures. This is sometimes referred to as portfolio drift.

And if your portfolio values have drifted significantly, you may be inclined to make some adjustments to rebalance your portfolio based on your preferred asset exposures.

Tracking portfolio drift

How often you choose to track your portfolio allocations is entirely up to you, although the start of a new financial year can be a useful trigger point.

That’s because it’s typically a time when you may be beginning to review your investment statements from the previous financial year ahead of lodging your next income tax return.

The easiest way to calculate movements in your asset allocations over the previous financial year is by taking snapshots at both the start and the end of the period.

If the structure of your investment portfolio has moved significantly out of alignment over time, you may decide to rebalance it so your allocations are recalibrated to align with your intended strategy.

If you need to, you can sell assets in your portfolio and then use the proceeds to top up your allocation to other assets that have fallen in value or experienced a lower rate of growth.

Or you can simply invest additional amounts into assets that have fallen in value while retaining your dollar exposure to the other assets in your portfolio.

Another option is to invest in diversified (or multi-asset) managed funds or exchange traded funds (ETFs) which have set percentage weightings to different asset types.

Professional portfolio managers rebalance these funds whenever their set investment allocation moves out of alignment, based on set tolerance levels.

Multi-asset funds are essentially ready-made portfolios which, depending on the investment strategy of the relevant fund, enable you to select higher or lower exposures to shares, bonds and other asset types.

But there’s a key difference between how professional portfolio managers can readily rebalance a portfolio versus the average do-it-yourself investor.

Generally, rather than having to sell assets to keep a portfolio aligned with its target asset allocations, a portfolio manager will use cash inflows to buy additional assets.

This reduces turnover of assets in the fund’s portfolio and greatly reduces the need to realise capital gains (or losses).

By contrast, DIY investors choosing to sell some assets in order to top up others will typically trigger a capital gains tax event. They generally don’t have the benefit of daily cash flows into their portfolio to top up ‘underweight’ asset types.

Staying balanced

Whether you leave it to the experts or do it yourself, from an investment strategy perspective there are clear benefits in avoiding portfolio drift as much as possible.

Rebalancing your asset mix keeps you aligned with your chosen investment strategy, based around your risk tolerance.

Ignoring portfolio drift can be detrimental over time. As well as drifting off your chosen investment course, you could also find yourself being exposed to unintended investment risks, for example by having higher or lower exposures to shares or bonds than you intended.

Feel free to contact us for more information.

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

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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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As the winter chill lingers, we look forward to the arrival of spring and brighter days ahead.

Interest rates and tariffs continue to influence markets globally.

In Australia, soft inflation data has paved the way for a possible rate cut. CPI slowed more than expected to an annual rate of 2.1% from 2.4% and core inflation – the RBA’s preferred measure – fell to 2.7% from 2.9%.

US interest rates were kept steady in July despite pressure from President Trump. The greenback eased in response, providing a small boost to the Australian dollar, which has been on a rollercoaster ride in recent times

The US S&P 500 and Nasdaq 100 continue to record all-time highs as tariffs begin to be locked in and AI investment takes off.

Meanwhile, the S&P ASX 200 experienced another volatile month, but the trend continued upwards and included an all-time high.

There are also signs of consumer optimism. The July Westpac–Melbourne Institute Consumer Sentiment Index found consumers buoyed by the chance of interest rate cuts this year.

Market movements and review video – August 2025

Planning is key as SMSFs enter new phase

Self-managed superannuation funds (SMSFs) have long been associated with older Australians and small business owners looking for greater control over their retirement savings.

But recent data suggests the sector is undergoing a quiet transformation.

Alongside tax reforms and persistent compliance challenges, younger people are slowly moving into the SMSF space. While 85 per cent of SMSF members are 45 years or older, there’s been significant growth in members aged between 25 and 34 years from just 2.4 per cent two years ago to around 10 per cent now.ⁱ

Almost 8,000 new SMSFs were established in the three months to the end of March 2025 with the number of new members increasing by 13,000. Australia’s SMSFs hold an estimated $1.02 trillion in assets with 26 per cent invested in listed shares and 16 per cent in cash and term deposits.ⁱⁱ

A new tax era

The new Division 296 super tax, due to apply from 1 July 2025, is aimed at those with total superannuation balances exceeding $3 million. An extra 15 per cent tax will apply to earnings on the portion of a member’s balance above $3 million, effectively lifting the tax rate on those earnings to 30 per cent.

What makes Division 296 particularly contentious is the inclusion of unrealised gains. For example, a share portfolio the SMSF holds has seen positive returns. Trustees may face tax liabilities on paper profits, even if assets haven’t been sold. This may cause issues for SMSFs holding illiquid assets such as property or farmland that has increased in value.

SMSF Australia and other industry bodies have raised concerns about fairness, complexity and the potential for unintended consequences.

Trustees with high balances should begin planning now before 30 June 2026, to consider asset rebalancing, contribution strategies and the timing of withdrawals. SMSF Australia recommends obtaining advice about your specific circumstances.ⁱⁱⁱ

The advice gap

Despite the increasing complexity of SMSF regulation, the vast majority of trustees continue to operate without professional advice. While the number of SMSFs using financial advisers has grown to 155,000, up from 140,000 in 2023, some 483,000 are not using a financial adviser.^iv

This could lead to costly mistakes, especially when navigating contribution caps, pension strategies or related-party transactions. SMSF Australia says that while there’s no legal requirement to obtain advice from a licensed financial planner, “unless you have the skills and expertise to do this yourself, it is certainly conventional wisdom to do so”.^v

The compliance burden

Every SMSF must undergo an annual audit by an approved SMSF auditor. This includes verifying the fund’s financial statements and ensuring it is compliant with super laws. Trustees are also required to value all fund assets at market value as at 30 June each year, using objective and supportable data.

For property and other complex assets, valuations can be time-consuming and costly. The ATO recommends using qualified independent valuers when assets represent a significant portion of the fund or are difficult to assess. Auditors may request evidence such as comparable sales, agent appraisals or formal valuation reports.^vi

Failure to maintain accurate records or provide sufficient documentation can result in audit delays, contraventions or penalties. Trustees must also ensure their investment strategy is regularly reviewed and documented, particularly when starting pensions or making significant contributions.

Looking ahead

As the SMSF sector evolves, trustees face a dual challenge: adapting to new tax rules and maintaining rigorous compliance. For those considering an SMSF – or already managing one – the message is clear. Getting financial advice can give you peace of mind when the rules are regularly changing.^vii

With Division 296 to contend with and a younger demographic stepping in, the sector is poised for both growth and greater scrutiny.

Whether you’re a seasoned trustee or just starting out, now is the time to review your fund’s structure, seek expert guidance and ensure your paperwork is in order. The future of SMSFs may be more dynamic than ever, but it will also demand greater diligence.

Contact us if you have any questions.

i Highlights: SMSF quarterly statistical report March 2025 | Australian Taxation Office

ii Self Managed Superannuation Funds – SMSF quarterly statistical report March 2025 – Data.gov.au

iii Understanding Div296 I How will taxation of unrealised gains work

iv New SMSF trustees propel uptake of financial advice, but $1 trillion sector still has significant advice gaps | Vanguard Australia

v What are the rules for Financial Planners giving SMSF Advice? – SMSF Australia

vi SMSF administration and reporting | Australian Taxation Office

vii About SMSFs | Australian Taxation Office

Keeping your cool when the markets heat up

Investing isn’t just a numbers game. It’s an activity that stirs various emotions from hope and optimism to fear and anxiety.

Whether the ASX is surging or stumbling, emotional responses to market movements can shape outcomes just as much as economic fundamentals. Understanding those responses is crucial to building resilience, especially in unpredictable times.

These patterns underscore the importance of long-term perspective, especially in a market shaped by both global sentiment and uniquely local factors.

How emotions enter the equation

We like to think our financial decisions are rational, but the truth is more complex. Investors aren’t robots crunching numbers in isolation. We are influenced by news cycles, cultural values and personal stories from friends, family and colleagues.

When markets rise, euphoria and FOMO can drive hasty buying decisions. During downturns, anxiety and regret can push investors to sell at a loss, despite having sound long-term strategies.

This pattern has played out across decades, from the dot-com bubble to the COVID recovery. And remember that emotional investing isn’t just a beginner’s problem. Even seasoned investors can be swept up by sentiment if safeguards aren’t in place.

Psychologists have long observed how financial stress activates similar responses to physical threats, triggering fight-or-flight instincts rather than thoughtful analysis. That’s why even well-informed investors may react defensively when facing market instability.

The good, the bad and the balancing act

Emotional investing isn’t all risk. In the right conditions, it reflects conviction, clarity and purpose. For example, values like patience and belief in the future can help investors stay committed during market dips.

Life changes such as home ownership, welcoming a child or retirement can bring useful emotional clarity to financial decisions. And ethical investing often stems from emotions such as care and connection to community.

When used with discipline, emotions can reinforce sound decisions rather than undermine them. Investors who use emotional clarity to establish long-term goals tend to feel more confident, even when short-term volatility strikes.

That said, emotions can also derail strategy. Panic selling during downturns, overconfidence after gains and herd mentality all pose risks.

The 2022 market correction saw many Australians pull out of super investments prematurely, missing the rebound that followed. These reactions stem not just from fear but also from a desire to act, even when patience may be more effective.

Learning from behavioural finance

Behavioural finance gives us tools to interpret emotional reactions. Biases like loss aversion, recency bias and anchoring affect decision-making in subtle but powerful ways.

These include:

• Loss aversion – People often feel the sting of losses more intensely than the joy of equivalent gains, which can lead to overly cautious or reactive choices.
• Recency bias – Recent events weigh heavily on perceptions, leading investors to expect trends will continue simply because they’ve just occurred.
• Anchoring – Fixating on a past portfolio value or arbitrary benchmark can skew rational assessment.

Recognising these tendencies helps investors avoid knee-jerk decisions and design portfolios that stay aligned with goals over time. It’s not about eliminating emotion; it’s about becoming aware of how it operates and mitigating its effects through smart responses.

After all, markets are always shifting. Emotions will always emerge. The goal isn’t to shut them out, but to understand them and develop structures to keep emotions from steering the ship. When investors learn to pause, reflect and act with intent, they not only improve outcomes but feel more confident in their journey.

If you’d like to explore strategies to build emotional resilience in your portfolio, or tools to help remove bias from investment decisions, please give us a call.

Assessment and eligibility for aged care services

Key points:

• My Aged Care will be your first point of contact if you are in looking to access Government funded aged care services
• A RAS or ACAT/S assessment can determine what services will best suit your needs
• If you are found eligible for government-funded services, you will then be able to start looking for aged care providers

UPDATE — from December 9, 2024, the Single Assessment System replaced the Regional Assessment Service, independent Australian National Aged Care Classification assessors and ACAT/ACAS specialists. Every approved assessor will be able to deliver an assessment for each level of support, whether in-home or for residential care. More information can be found on the Aged Care Guide website.

The first thing you need to do is register with My Aged Care. This is the agency that looks after all government-funded aged care programs.

When you first call the My Aged Care Contact Centre, on 1800 200 422, an operator will register you and ask you a number of questions about your personal circumstances and care needs.

These questions will be quite basic and shouldn’t take too long. All you will need is your Medicare card when you call as this information is stored with your other details on the My Aged Care database.

Examples of the questions you will be asked are:

• Are you currently receiving aged care services?
• Are you getting support from a carer or family member?
• Can you prepare your own meals and do housework?
• Do you need assistance taking a shower or bath and do you need help getting dressed?
• Are there any health concerns or did you have a recent fall?
• Do you feel lonely or isolated?
• Are there any safety risks in the home?

The aim of this screening is to figure out what needs and support you require and whether you are eligible for a further assessment in person.

Additionally, the information you provide during this quick process will be recorded on your application, so you don’t have to stress about remembering the information you provided during your eligibility check.

If you are worried about doing the eligibility check by yourself, you are allowed to have a family member, friend or carer with you for support while applying online or on the phone.

You can also nominate someone to apply on your behalf. In this case, you will need to appoint your family member, friend or carer as your representative on My Aged Care.

If you are successful in your application, the contact centre operator will refer you for either a RAS or ACAT/S home support assessment.

If the operator determines that you are eligible for basic home support through the Commonwealth Home Support Programme (CHSP) you will be assessed by a Regional Assessment Service (RAS).

Otherwise, if the operator believes you require higher care support, a member of an Aged Care Assessment Team/Service (ACAT/S) will visit you at home to assess you for a Home Care Package (HCP) that will meet your needs.

When you first contact My Aged Care, the contact centre operator will assign you an aged care client number and will open a central client record. This record will eventually contain your information about your assessed needs and government-funded care services you have been found eligible for.

What will a face to face assessment be like?

Your in-person assessment will be a lot more comprehensive than your over the phone eligibility check.

Be open and transparent about your wishes and what you believe will be of assistance around the home.

Your ACAT/S assessor may recommend things you haven’t even thought of, which will be of benefit around the home.

If you require higher level care than what a Home Care Package can offer, they may assess you as needing entry into an aged care home.

Checklist for a face to face assessment

To prepare for your face to face assessment, make sure to have:

• Medicare card and a form of identification, for instance, Department of Veterans’ Affairs (DVA) card, driver’s license, passport, or healthcare card
• Notes or referrals from your doctor
• Ask a support person to be present for the assessment if you want
• Prepared questions and information about aged care that you wish to discuss with the assessor so you have a better understanding about services
• Contact details for your doctor and any other health professionals you see regularly
• Information on support you receive from others or from the community
• Have a translator or Auslan interpreter pre-organised if you require it

What to expect

You may need to fill out an Application for Care Form which will be provided by the assessor.

You can expect a conversation with the assessor asking you about your needs or any health problems.

They will ask you about any support you receive, your current lifestyle, any health concerns or chronic illnesses, how you deal with day to day tasks at home, if you struggling with any cognitive issues or memory loss, whether you have problems at home or with personal safety, any activities you engage in with family or in the community, and they will ask if they can chat with your doctor.

If you have a family member, friend or carer with you, the assessor may ask you for permission to talk to them about any support they believe you might benefit from.

What next?

If you are eligible for CHSP service, you should be told during your face-to-face assessment.

However, if you are eligible for a Home Care Package, any short-term care options or nursing homes, there will be a period of time where your assessor reviews the information you provided and determines what option best suits you.

They will provide a recommendation to a “decision maker,” who will then make the final decision on your case.

You will receive a letter within two weeks of your assessment to let you know if you have been found eligible for aged care services.

Source:
This article was originally published on https://www.agedcareguide.com.au/information/assessing-your-needs. Reproduced with permission of DPS Publishing.
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.

Time to clear your digital cobwebs

Spring cleaning isn’t just for closets.

We’re used to tackling physical mess. We clear out closets, sort through garages, and sometimes even face that overflowing junk drawer in the kitchen. But there’s another kind of clutter we often ignore – the kind that lives on our devices, in our inboxes, and across the dozens of apps and platforms we use every day.

Our digital lives can become chaotic without us even realising it. Old files pile up, passwords go unchanged, unused apps stake up digital space, and outdated accounts hang around long after we’ve forgotten them.

Cleaning up your digital life isn’t just about tidiness. It’s about taking back control, reducing stress, and protecting your personal information. A little effort can help you make the most of the technology you rely on every day.

Start with the inbox

Email is one of the easiest places for clutter to grow unnoticed. Between unread messages, endless subscriptions, and decades of digital dust, many of us feel buried in content before we even open our inbox.

Start by archiving or deleting messages you no longer need. Use the search function to batch-delete emails from certain senders, especially those you no longer want to hear from. Unsubscribe from newsletters or promotional emails you tend to ignore and consider setting up filters to automatically sort messages into folders moving forward.

Even if you only clean up a few hundred emails, you’ll immediately feel a sense of relief. A tidier inbox helps you spot what’s actually important and reduces the mental load of “dealing with it later”.

Declutter your devices

Next, look at your phone and computer. These devices often become digital dumping grounds. Photos, documents, apps, and downloads accumulate over time and can start to feel overwhelming.

Begin by deleting apps you haven’t used in the last three to six months. If you’re not sure about something, check when it was last opened. Move photos and videos to cloud storage or an external drive to free up space. Organise documents into clearly labelled folders and delete duplicates or outdated versions.

Some parts of digital clutter are less visible but still worth clearing. Take a moment to empty your downloads folder, clear your browser cache, and remove temporary files. These forgotten corners of your devices can quietly slow things down and make everything feel more chaotic.

Audit old accounts

Over the years, you’ve probably signed up for countless shopping websites and other services, many of which you’ve long forgotten. These inactive accounts can pose security risks, especially if they’re linked to old or weak passwords.

Use a password manager to help identify and organise your accounts. Close the ones you no longer use and update the passwords for those you still need. Closing unused accounts limits the number of places your data is stored, which reduces your exposure in the event of a data breach.

This step may take a little time, but it’s one of the most powerful ways to protect your digital footprint.

Check your digital security

While you’re auditing, take time to strengthen your online security. Start with your most important accounts – like email, banking, and cloud storage – and make sure each one uses a strong, unique password.

Enable two-factor authentication where possible. This extra layer of protection only takes a few minutes to set up and can make a big difference in keeping your accounts secure.

Finally, don’t forget to check for software updates on all your devices. These often include important security patches, so keeping your system up to date is one of the easiest ways to stay protected.

Refresh your social media

Social media can be a powerful tool, but only if it reflects who you are now. If your feed feels stale or overwhelming, take a few minutes to clean it up.

Unfollow or mute accounts that no longer resonate with you. Curate your feed so that it reflects your current interests, values, and goals. This simple step can turn mindless scrolling, or doomscrolling, into a more positive, inspiring experience.

Digital spring cleaning is not about perfection. It’s about creating a digital environment that supports how you live and work right now. If this all sounds a little intimidating just take it one step at a time. Wherever you begin, the most important thing is to begin.

How to plan and stick to your renovation budget

Define your renovation goals

Renovations can be an exciting time to re-shape the look and feel of your home, however before you start getting into the details, it’s important take a step back and clarify ‘why’ you’re renovating. For instance:

Do you need more space? 

Is your kitchen too dated? 

Are you looking to boost your home’s resale value?

Being clear about what you’re trying to achieve is a great first step to help you focus on your renovation costs. Once you know what you’re aiming for, start with a list of must-haves and nice-to-haves so you can prioritise what is essential and what is an optional extra.

Be clear about your budget

Once you know what you’re looking to achieve, the next step is figuring out what you can afford. Take a good look at your finances and decide how much you’re comfortable spending without draining your savings. To help you plan, you can also use renovation and building calculators online to help you get a rough estimate of costs. If you think you’ll need to take on some debt, you have options like using equity, personal loans for renovation or construction loans. A personal loan borrowing calculator can offer some estimates on how much you can borrow. If you need support deciding, it’s best to get advice.

Use your home’s equity

If you’re looking finance a large-scale renovation without dipping too deeply into your savings, tapping into your home’s equity can be an option. Home equity is essentially the difference between what your home is worth and what you still owe on your mortgage. You can borrow against the equity by topping up your existing home loan. Your lender will do a valuation of your property to determine equity available and how much you can borrow, while keeping your loan-to-value ration (LVR) within acceptable limits. 

It’s important to be cautious that borrowing against your home’s equity means you’re taking on more debt, which in turn can carry more risk. That’s why it’s important to only borrow what you can repay and make sure your renovations boost your home’s value.

Get multiple quotes from your tradespeople

If you’re doing a big renovation or extension, you need plans and designs that you can get proper quotes on. Start by getting quotes from multiple builders or tradespeople, as it’s a great way to make sure you’re getting the best deal you can. You’ll be surprised how much these quotes vary. Also consider the contractor’s experience, how well they communicate as well as reviews and recommendations from friends and family.

Break down the costs

Review the costs of labour, materials, and any permits you’ll need and don’t forget to include taxes and fees in your calculations. 

The build costs will depend on a number of things, such as:

• The materials you want to use
• The tradespeople you employ
• The quality of work, finishes and fittings
• The size of the job
• The location of your site.

It’s always helpful to assume a project will cost more than expected. A 10-20% buffer in your budget will make sure you are ready if any emergencies or surprises appear, like hidden water damage or delays.

Remember: A budget that feels tight now will save you from financial stress later. Consider the maximum amount you’re willing to spend and work backwards to fit everything into that number.

Monitor your spending and adjust accordingly

When the renovation begins, it’s important to keep tracking costs against your budget and make sure you stay on track or are able to adjust if things take an unexpected turn. You might need to put off one part of the renovation or opt for less expensive alternatives to certain materials. Always pay contractors in stages as this will give you more control and ensure the work gets done right.

Think about long-term value

When you’re budgeting, think about the long-term impact of your renovation and focus on projects that improve your home’s functionality, energy efficiency or resale potential. If you can, include some basic energy-saving ideas in your renovation like:

• LED lights
• rainwater tanks
• quality insulation
• solar panels.

Think of your renovation as an investment that doesn’t just help you today, but for all the years to come.

Source: NAB
Reproduced with permission of National Australia Bank (‘NAB’). This article was originally published at https://www.nab.com.au/personal/life-moments/home-property/renovate/costs
National Australia Bank Limited. ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. The information contained in this article is intended to be of a general nature only. Any advice contained in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice on this website, NAB recommends that you consider whether it is appropriate for your circumstances.
© 2024 National Australia Bank Limited (“NAB”). All rights reserved.
Important:
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.

At its latest meeting, the Reserve Bank Board announced it was leaving the cash rate unchanged at 3.85 per cent.

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

The RBA had been widely expected to cut rates again after a decline in inflation and softer GDP growth.

With the cash rate 50 basis points lower than five months ago and wider economic conditions evolving broadly as expected, the RBA judged that it could wait for a little more information to confirm that inflation remains on track to reach 2.5 per cent on a sustainable basis.

Please get in touch if you would like to review your finance options.

With the shortest day now behind us and a new financial year underway, there’s fresh energy in the air and plenty to keep an eye on in the financial landscape.

Wars in Europe and the Middle East, volatile oil prices and shifting US policies are making headlines but failing to dampen the optimism of the markets.

The ASX closed the financial year with a near 10% return – its strongest since the COVID-19 crisis and despite US tariff threats.

Australia is somewhat insulated from the tariffs, but concern lingers that the federal government’s $1.5 trillion invested in the US, faces a tax hike.

The tariffs are a bigger risk for the US economy, with inflationary risks from tariffs possibly prompting rate increases. Nonetheless, Wall Street remains upbeat. The S&P 500 index surged to a four-month high in June on hopes of further rate cuts and smooth trade negotiations.

In Australia, forecasts of further interest rate cuts have fractured since tensions flared in the Middle East, with some expecting a July cut and others now tipping August.

The Aussie dollar has climbed to a seven-month high, while the US dollar tumbled to a three-year low.

Oil prices posted their sharpest weekly declines after a spike during June as the Middle East conflict reached boiling point.

Market movements and review video – July 2025

Less hibernate, more activate

When the temperature drops, it feels like more of an effort, but getting outdoors, even when it’s chilly, can do your brain and body a whole lot of good.

Let’s be honest – when it’s cold outside, the couch starts to look very attractive. You’ve got the heater cranking, you’re engrossed in the latest TV series with your favourite hoodie on, and venturing out into nature seems like a job for someone far more motivated. But here’s the thing; humans weren’t designed to hibernate through winter. We’re built to get out and about and move – year-round. 

Movement and exposure to natural environments – even just for short bursts – have so many health benefits. It can improve your body’s immunity, boost your mood, help you sleep better, and keep your body ticking over during the colder months.

Nature isn’t just nice – it’s medicine

It’s not just about ‘getting some fresh air’. Spending more time in nature has real, measurable effects on both the body and the brain.

A large-scale study found that spending as little as two hours a week in nature is associated with better physical health and significantly improved well-being.ⁱ That does not have to be two hours in one go – you can chip away at it over the week, whether it’s a morning stroll in a local park, a quick paddleboard, or a bit of time on the green practicing your putting.

Other studies have shown that being outdoors reduces cortisol levels (your main stress hormone), lowers blood pressure, and even enhances the overall function of your immune system. Yep – getting outside may help your body fend off seasonal bugs and colds. Exposure to natural light during the day also helps regulate your sleep cycle by supporting healthy melatonin production, so you’re more likely to sleep well and feel rested and refreshed.ⁱⁱ

A brain boost

It’s not just your body that benefits. Time spent outdoors has been shown to improve your mood, reduce stress and anxiety levels, and boost focus and memory.

It can also enhance the release of endorphins and dopamine, which are neurotransmitters that are associated with positive emotions, happiness, and well-being.ⁱⁱⁱ

The Japanese have long understood the benefits that nature has on our mood and have a practice known as ‘shinrin-yoku’ which translates as forest bathing. This simple but powerful act of spending time in a forest became popular in the 1980’s as a response to the high stress environment of corporate Japan. So, why not try a little shinrin-yoku yourself? After all, the bush is lovely when it’s cool and crisp and the smell of a forest after rain is also something special and can create a sense of connection to nature.

You don’t have to retreat all the way to the bush for some peace and tranquillity if you are an urban dweller though. Even a quick escape into the backyard for some vitamin D can offer mental breathing room and a chance to slow down and unplug.

Move it or lose it (and not just the summer fitness)

Of course, there are real benefits to combining nature and exercise, especially during winter, which is often when our healthy routines can sometimes fall apart. The activity levels drop, the comfort food kicks in, and suddenly getting out the door requires Olympic-level motivation.

Movement – especially in natural settings – helps counteract the physical slump.

You don’t have to run a marathon. A walk along the beach, a bit of trail hiking, or hitting a few balls on the golf course is more than enough to get the heart pumping and muscles moving. Even spending 20-30 minutes outdoors can lift energy levels and help prevent the aches and stiffness that creep in during the colder months. 

Worth the effort

Sure, it takes a bit more effort in winter, but nature doesn’t close for the season – and the rewards are still there if you’re willing to rug up and step out. So, whether it’s a bike ride, taking the dog for a walk or just having a potter around the garden, get out there.

 And hey, the couch will still be there when you get back. Probably with a hot cuppa waiting.

i https://www.nature.com/articles/s41598-019-44097-3

ii https://askthescientists.com/outdoors/

iii https://www.apa.org/monitor/2020/04/nurtured-nature

How to shift into pension mode

When and how you can access your super to start an account-based pension.

If our working years can be regarded as the time when we aim to build up our superannuation savings, our retirement years can equally be regarded as the time when we aim to spend them.

At least that’s the objective for most Australians. Which generally leads to the question: how do I start accessing my super funds when I do stop working, or maybe even before I stop working?

This article focuses on the basics, including the general eligibility rules around accessing your super and how to switch your super accumulation account to an account-based pension.

What age can I access my super?

To legally access your super, you generally need to have met a condition of release after turning 60-years-old.

You can do so by either stopping work completely (retiring) or by keeping working and starting a transition to retirement income stream (TRIS).

Doing so can enable you to reduce your current working hours and use your TRIS pension payments to top up your part-time income.

In either case, you have the options of turning on a pension income stream, making a lump sum cash withdrawal, or doing a combination of both. 

How do I start a pension account?

Importantly, to start accessing your super, you will need to roll some or all of it over from your accumulation account into a newly created pension account.

Those starting a TRIS continue to receive compulsory super guarantee payments from their employer (which are taxed at the normal rate of 15%) into their super accumulation account. The funds held in a pension account can be accessed, however keeping in mind that investment earnings in the pre-retirement phase are also still taxed at 15%.

Most super funds offer pension account products and different investment options, similar to their accumulation account products. Those with a self-managed super fund should contact their SMSF accountant and/or speak to us to facilitate the super rollover and pension account conversion processes.

You may need to contact your super fund to find out their process, which is typically as simple as lodging a request with your fund by filling out a form and providing information such as how much of you super you want to roll over, and where to.

Once your funds are in a pension account you could then take some out as a lump sum. The Australian Tax Office (ATO) has mandated minimum annual withdrawal amounts, which depend on your age.

There is a limit on the maximum amount that can be transferred as a tax-free retirement income stream from super to a pension account, known as the transfer balance cap. This is currently set at $2 million. The ATO keeps track of how much you transfer, and if you go over the cap it will levy an excess transfer balance tax.

If you have more than $2 million in super you have the option of keeping the excess in your super account and paying up to 15% tax on your earnings, or you can withdraw the excess super as a lump sum.

What are the tax considerations in pension mode?

If you’re aged 60 or over and fully retired, any income earned on your pension assets is tax free and so are the pension payments you withdraw.

Also, a major advantage is that the profits from any investments sold within a pension account are completely capital gains tax free.

What are the minimum pension withdrawal amounts?

Once you’ve rolled over some or all of your super to an account-based pension you are required by law to withdraw a minimum pension amount each financial year, which is a percentage of your account balance based on your age.

For new pensions, the minimum withdrawal amount is calculated on a pro-rata basis from when a pension commences to the end of the financial year.

There are restrictions on how much can be withdrawn tax free through a TRIS in a financial year if you’re under 65, until you’ve met a condition of release. The minimum withdrawal amounts is 4% of your super balance and the maximum is 10%.

The table below shows the required minimum withdrawal rates if you’re in pension phase and are fully retired.

Age on 1 July of pension commencement and on each 1 July thereafter	Minimum withdrawal amount based on pension balance for 2024/2025
Under 65	4%
65 to 74	5%
75 to 79	6%
80 to 84	7%
85 to 89	9%
90 to 94	11%
95 and over	14%

Source: Australian Tax Office

Any amounts leftover in your pension account when you die will go to your nominated beneficiaries. Depending on the type of beneficiary (reversionary, spouse, dependant or non-dependant) the amounts can be paid as an ongoing pension stream until the account runs out or as a lump sum.

Consider getting professional advice

If you’re wanting total financial flexibility in retirement, you could consider leaving part of your money in super, rolling over some of it into an account-based pension, and also withdrawing lump sums whenever you need to.

There are a range of benefits from adopting a combination of your options, although there may also be potential tax consequences for both you and your beneficiaries.

Managing the combination of a super accumulation account, an account-based pension, an Age Pension entitlement (if eligible), potential investment earnings outside of super, and irregular lump sum payments, can be highly complex.

Using our services is a worthwhile consideration as you weigh up all of your retirement options.

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

GENERAL ADVICE WARNING
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) (VIA) is the product issuer and operator of Vanguard Personal Investor. Vanguard Super Pty Ltd (ABN 73 643 614 386 / AFS Licence 526270) (the Trustee) is the trustee and product issuer of Vanguard Super (ABN 27 923 449 966). 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.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. Important Legal Notice – Offer not to persons outside Australia The PDS, IDPS Guide or Prospectus does not constitute an offer or invitation in any jurisdiction other than in Australia. Applications from outside Australia will not be accepted. For the avoidance of doubt, these products are not intended to be sold to US Persons as defined under Regulation S of the US federal securities laws. © 2025 Vanguard Investments Australia Ltd. All rights reserved.

How to bucket your money and save

What is bucketing your money?

Bucketing is a smart way to manage your money without complicated budgets or spreadsheets. You set up multiple bank accounts called ‘buckets’ and use each one for a specific purpose, like bills, savings or entertainment. Once your buckets are set up, it’s easier to see and control how you spend and save your money. This strategy is beneficial for anyone looking to save, reduce debt, control spending or achieve bigger financial goals. Bucketing can also help you save your money for larger but infrequent bills like car registration, school fees and energy bills.

Get started with bucketing your money

It’s easy to start bucketing and saving when you know the exact steps involved in the process.

Step 1. Work out your spending and group into categories

A good starting point is working out how you spend your money. An online expense tracker like the Spending tool, for instance, is excellent to help you see where your income goes. Next, group each category of your spending into a few themes. This could look like regular and daily expenses, emergency funds, splurge and savings. Then add up the amounts in each theme. These themes become your buckets. You can have as many buckets as you like, but here’s an example of how to group them:

Bucket 1 – Regular and daily expenses

This is for regular bills, rent, mortgage, debts, groceries, transport, school fees, insurances and holidays. This account should be linked to a debit card. 

Bucket 2 – Spending or splurge money

Use this bucket for fun money to splurge on things like socialising or treating yourself and others. This account should be linked to a debit card. You can use card controls to take control of your spending.

Bucket 3 – Emergencies and safety money

This one is for the big or unexpected expenses that can catch you off guard, like home or car repairs, dental work or paying off debts. This account should earn interest and have no debit card, so you’re not tempted to spend.

Bucket 4 – Savings

Use the savings bucket to put aside money for things like travel, a new car or reducing debt. Ideally this should be an account that earns interest and has no debit card.

Step 2. Open your bucket bank accounts

To implement this financial strategy, you’ll need to get started with a basic transaction account with your bank. After you’ve opened one account, it’s easy to open or add extra savings or transaction accounts. 

Learn how to open a bank account online.

Handy hints for setting up your buckets

Rename your accounts

When you open your accounts, you can name each account to match its purpose. For example, you could name them ‘Spending bucket’, ‘Fun bucket’, ‘Safety bucket’ and ‘Savings bucket’.

Step 3. Decide on your bucket amounts

This is a very important part of bucketing. The idea is money from your income ‘pours’ into each bucket in certain amounts that you decide. Ideally, all your income or wages should go into the first account, and from there you transfer money into each of your buckets.

As a guide, consider these percentages of your income for each account or bucket:

• Account 1 – Regular and daily expenses: 60%
• Account 2 – Spending money: 10%
• Account 3 – Emergencies and safety money: 10%
• Account 4 – Savings: 20%

Step 4. Set up regular deposits to your buckets

Now that you’ve worked out how much money goes into each of your accounts, you can automate transfers from your first account into the others. It’s a good idea to set up the transfers so they occur on the same day every month, soon after you get paid. This will help you avoid overspending on pay day.

Now you’re ready to start enjoying the benefits of bucketing.

Source: NAB
Reproduced with permission of National Australia Bank (‘NAB’). This article was originally published at https://www.nab.com.au/personal/life-moments/manage-money/budget-saving/money-bucket
National Australia Bank Limited. ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. The information contained in this article is intended to be of a general nature only. Any advice contained in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice on this website, NAB recommends that you consider whether it is appropriate for your circumstances.
© 2025 National Australia Bank Limited (“NAB”). All rights reserved.
Important:
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.

Portfolios for the risk we may not be imagining

Investors have faced a wild ride in 2025. The excitement may not be over.

Equity and fixed income markets took less than a month to recover after U.S. tariff announcements in early April sent them reeling, giving investors a valuable opportunity to reexamine their relationship with risk.

A healthy relationship with risk starts with understanding that downturns aren’t always as shallow and recoveries not always as swift as we’ve seen over the last 15 years or so. Three essential principles for dealing with risk can improve outcomes even if the ride gets wilder.

Principle 1: Be humble in the face of unknowable risk

The late financial historian Peter Bernstein once observed that certain risks are inherently unknowable ahead of time. These risks tend to be the most disruptive, having the potential to befall investors without warning. For example, a key factor in the 2008 global financial crisis that became clear only with the benefit of hindsight was the amount of systemic risk that had built up via credit derivatives. The degree to which risk-taking on credit—mortgage and corporate—was concentrated within the system was not well understood until the crisis deepened. This uncertainty drove the panic that set in at the height of the crisis.

“Equity market drawdowns can run longer and deeper than we’ve become accustomed to. It’s that potentially changing landscape that investors may want to prepare for.” —Kevin Khang, Vanguard Senior International Economist

In a similar vein, what alarmed the market about the recent tariff announcements was not that new tariff policies were being pursued. Rather, it was the magnitude and scope of these policies, and the pace at which they unfolded, that had been largely unknowable and exacerbated the volatility.

Truly disruptive risk is often unknowable ahead of time. Humility regarding this truth can help investors maintain a healthy perception of risk. Accepting that unknowable risks periodically roil markets can foster a flexible and measured response when tail risks—or extreme market developments—emerge, mitigating the impact of unforeseen events and preventing panic-driven decisions.

Principle 2: Have a robust asset allocation

Because the future is uncertain, and some risks are unknowable, it makes sense to find a robust solution—one that provides results that are good enough across a range of circumstances, rather than optimal under some scenarios but highly undesirable under others. More than being balanced by some combination of stocks, bonds, and cash and diversified within each asset class, a robust portfolio is one the investor can maintain, especially in extreme market conditions.1

Rigorous capital market return projections that consider the extremes are also critical to robustness. That’s because poor long-term results are a greater risk than short-term volatility for long-term investors. In practice, a robust approach to portfolio construction considers a diverse range of return environments over the investor’s investment horizon and achieves an allocation that would be suitable across these environments.

A new book by Joe Davis, Vanguard global chief economist, provides an example of such an approach for investors with seven- to 10-year horizons. Placing the odds of the economic environment fundamentally changing over the next decade at above 80%, this approach weighs two starkly different return environments. The resulting portfolio is robust for both: 1) an optimistic environment in which AI-driven productivity drives high economic growth and market valuations; and 2) a pessimistic environment where increasing structural deficits put upward pressure on inflation and yields, while pulling down equity valuations.  

Principle 3: Be optimistic but prepared for downturns

Balanced investors must thoughtfully manage downside risk. Sticking with an allocation during significant drawdowns requires realistic expectations about one’s tolerance for pain. In today’s market, this means having realistic expectations about potential drawdowns and not relying on overly optimistic return expectations based on recent performance.

Mild stock-price corrections of recent years could give way to deeper, longer-lasting declines

As the figure shows, the last 15 years have been favourable for U.S. equities, with shallow and short-lived drawdowns. Some investors may be tempted to look back over this period—which they consider to be “long”—and surmise that such relative market tranquility is here to stay. The quick snapback from the sharp declines after the broad U.S. tariff announcements on April 2 may only reinforce such a stance. But as we can see from previous decades, equity market drawdowns can run longer and deeper than we’ve become accustomed to recently. Looking forward, it’s that potentially changing landscape that investors may want to prepare for.

Feeling our way toward sources of future risk – and potentially recalibrating expectations

The confluence of forces that led to subdued downsides in the last 15 years may be evolving, creating a more challenging risk backdrop: 

• A renewed focus on fiscal responsibility may imply a reduced scope for fiscal stimulus in future economic downturns. 
• Adverse supply-side developments and the potential for stagflation might limit efforts by central banks to mitigate market volatility.
• The prospect of a rearranged global trading ecosystem has a wide range of significant long-term implications that could create sources of disruption—many of which are unknowable. 

For some investors, prudent risk management might mean recalibrating expectations to include deeper and longer-lasting drawdowns that are more in line with previous historical periods. Even if this recalibration doesn’t change one’s asset allocation dramatically, it may increase the odds of the investor maintaining their allocation during downturns.

If you have any questions regarding market fluctuations, contact us today.

Notes: 

All investing is subject to risk, including the possible loss of the money you invest. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Diversification does not ensure a profit or protect against a loss. 

Investments in bonds are subject to interest rate, credit, and inflation risk.

Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer’s ability to make payments.

Investments in stocks and bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. These risks are especially high in emerging markets.

This article contains certain ‘forward looking’ statements. Forward looking statements, opinions and estimates provided in this article are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, indications or guidance on future earnings or financial position and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these statements. To the full extent permitted by law, Vanguard Investments Australia Ltd (ABN 72 072 881 086 AFSL 227263) and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions.

1 Some investors may wonder what’s wrong with adjusting their allocations on the fly, based on changed perceptions of risk. In some cases, the answer may be “nothing.” But such cases are likely limited to instances where market volatility has convinced the investor or their advisor that they previously over- or underestimated their risk tolerance—and that a new target mix of assets would be better for the long haul. Otherwise, Vanguard research suggests that an annual rebalancing strategy is optimal for investors who do not harvest losses for tax purposes or seek to track a benchmark. For more information, see Yu Zhang et al., Rational Rebalancing: An Analytical Approach to Multiasset Portfolio Rebalancing Decisions and Insights, Vanguard, 2022; available at corporate.vanguard.com/content/dam/corp/research/pdf/rational_rebalancing_analytical_approach_to_multiasset_portfolio_rebalancing.pdf.

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

GENERAL ADVICE WARNING
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) (VIA) is the product issuer and operator of Vanguard Personal Investor. Vanguard Super Pty Ltd (ABN 73 643 614 386 / AFS Licence 526270) (the Trustee) is the trustee and product issuer of Vanguard Super (ABN 27 923 449 966).
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.
Important Legal Notice – Offer not to persons outside Australia
The PDS, IDPS Guide or Prospectus does not constitute an offer or invitation in any jurisdiction other than in Australia. Applications from outside Australia will not be accepted. For the avoidance of doubt, these products are not intended to be sold to US Persons as defined under Regulation S of the US federal securities laws.
© 2025 Vanguard Investments Australia Ltd. All rights reserved.

With the new financial year comes a fresh wave of superannuation changes that could make a real difference to your retirement savings.

Let’s unpack what’s changing – and how to make the most of it.

The SG rate hits 12%

One obvious lift to retirement incomes is the increase in the Super Guarantee (SG) rate from 11.5 per cent to 12 per cent. That means more going into your super account.

Your employer must now pay 12 per cent of your ordinary time earnings into your chosen super account. So, it’s a good idea to check your first payslips for the new financial year to make sure the changed rate is applied.

If you have a salary sacrifice arrangement, note that the SG calculation applies to your total salary, as if the arrangement was not in place.

For a quick update on what the change will look like for your super balance, check the MoneySmart calculator.

More for retirement phase

Beyond your regular contributions, the amount of super that can be transferred into the retirement phase – known as the general transfer balance cap (TBC) – has increased from $1.9 million to $2 million from 1 July 2025.ⁱ

If you exceed the cap, you’ll need to transfer the excess back to your accumulation account or withdraw it as a lump sum – plus, you may pay tax on the earnings.

If you’ve already started a retirement income stream, you’ll have a personal TBC – your own individual limit, which may be less than the general TBC. Your personal cap is based on the general cap at that time you started, adjusted for how much you’ve used and any indexation you’re entitled to.ⁱⁱ

For example, if you started a pension with $2 million on 1 July 2025, you’ve used your entire cap. The cap doesn’t limit the amount you can hold in super. If you have more than the cap available, the remainder can be left in your super fund’s accumulation account.

By the way, it doesn’t matter if, after a year of positive investment returns, your pension account has grown to say, $2.1 million. The transfer balance cap only applies to the amount you start the pension with.

You can check your cap in ATO online services, which records all the debits and credits that make up your balance.

Special rules apply for defined benefit income streams.

More qualify for after-tax contributions

The change in the general TBC to $2 million may also allow you to increase non-concessional (after-tax) contributions using the bring-forward rule. While the $120,000 annual limit on non-concessional contributions hasn’t changed, eligibility for using the bring-forward rule now applies to those with a total superannuation balance below the general TBC of up to $2 million.

The rule allows you to bring forward the equivalent of one or two years of your annual non-concessional contributions cap ($120,000), allowing you to make contributions two or three times more than the annual cap.

Your total super balance includes all your super interests – accumulation, retirement phase, and any rollovers. It may differ from your super fund’s account balance.

It’s useful to be aware of your total super balance because it determines your eligibility for a range of super rules. ATO online services will show your total super balance.

No change to contribution caps

While more investors may now be eligible to access the bring-forward rule, the caps on both concessional (before tax) and non-concessional contributions haven’t changed.

The tax paid on contributions depends on whether you’re paying from before-tax or after-tax incomes, you exceed the contribution caps, or you’re a high income earner.ⁱⁱⁱ

The concessional contributions cap is $30,000 and if you have unused cap amounts from previous years, you may be able to carry them forward to increase your contribution in later years. You can make up to $120,000 in non-concessional contributions each financial year and you may be eligible for the bring-forward rule allowing up to $360,000 in one contribution.

Not sure how the rules affect you? Talk to us today about how to stay ahead and make the most of your retirement savings plan.

Awaiting the new $3m tax

The proposed new tax on earnings above $3 million in super accounts, known as the Division 296 tax, has not yet been ratified by Parliament. Nonetheless, it is expected to be applied from 1 July 2025.

The new tax doubles the tax rate from 15 per cent to 30 per cent for earnings on balances that exceed $3 million.

It is expected to affect less than 0.5 per cent of investors or around 80,000 people.^iv

The taxable earnings are calculated by deducting your total super balance amount at the start of the year from the balance at the end of the year, adding some outgoings such as pension payments, and subtracting some items that increased the balance, such as super contributions.^v

An earnings loss in a financial year, can be carried forward to reduce the tax liability in future years.

ASFA, the Association of Superannuation Funds Australia, has provided a number of worked examples here that show the effect of the tax in different circumstances.

If you believe the new tax will affect you, please get in touch for more information.

i Transfer balance cap | ATO

ii Calculating your personal transfer balance cap | ATO

iii Concessional and non-concessional contributions | ATO

iv Better targeted superannuation concessions – factsheet (PDF)

v ASFA Fact Sheet: Understanding Div 296

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

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

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

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

Looking for deductions

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

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

ATO Assistant Commissioner Rob Thomson says the ATO is keeping a close eye on work-related expenses and working from home deductions this year.ⁱⁱ

“Work-related expenses must have a close connection to your income earning activities, and you should be prepared to back it up with records like a receipt or invoice,” says Thomson.

“If your deductions don’t pass the ‘pub test’, it’s highly unlikely your claim would meet the ATO’s strict criteria,” he says.

Get ahead with early payments

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

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

Review your portfolio

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

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

Don’t forget last year’s increases to the cap on super contributions, which may allow you to contribute more. The limit on concessional contributions (employer contributions and personal contributions that can be claimed as a tax deduction) increased to $30,000. The cap on non-concessional (or after-tax) contributions is now $120,000. You may also be eligible to carry forward unused amounts from up to five years before. Reach out to us if you are considering making any super contributions to ensure you don’t exceed the cap and your funds are deposited before the June cut-off date.

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

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

How to make use of a capital loss

Savannah bought $2,000 worth of shares (50 shares at $40 per share) in a large mining company.

After 18 months she sold the shares. They had fallen in price to $20 per share. She made a capital loss of $1,000.

Savannah also made a profit of $1,500 from selling other shares she held. She had held these shares for five years.

Savannah can deduct the $1,000 she made a loss on from the $1,500 capital gain. This leaves her with a profit of $500. As Savannah held the shares for more than 12 months, she only includes half the capital gain in her tax return. She’ll pay tax on this $250 at her marginal tax rate.

Source: Investing and tax – Moneysmart.gov.au

i Deductions you can claim | Australian Taxation Office

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

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

With Winter now upon us, it’s time to embrace the joys of the cooler months of the year.

Now that the federal election is out of the way, and another financial year is drawing to a close, it’s a perfect time to look back at all you’ve achieved over the past 12 months and focus on a fresh start for the financial year to come.

While market volatility continued, markets largely recovered from April’s losses in May. However, the legal and economic uncertainty of US tariffs remain a key concern for global and local markets.

The end of the month saw the S&P/ASX 200 react positively at first to the news that a US federal judge had blocked the tariffs. When an appeals court temporarily stayed the tariffs hours later, a mini sell-off followed. The index has jumpstarted its way to a three-month high, not quite back to its best in February.

There was a sigh of relief all round when the Reserve Bank lowered interest rates in May by 25 basis points to 3.85%. The RBA’s move came with a caveat that, while domestic demand “appears” to be recovering and real household incomes have picked up, the outlook is unclear because of both local and international developments.

Inflation was slightly higher than expected for the 12 months to April, but it remained within the RBA’s target range and many economists are predicting another rate cut in July.

Smart moves before the financial year ends

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

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

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

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

Looking for deductions

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

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

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

Get ahead with early payments

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

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

Review your portfolio

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

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

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

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

i Deductions you can claim | Australian Taxation Office

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

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

How the $3m super tax may affect you (and what to do next)

As the federal government moves to introduce a new 15 per cent tax on superannuation earnings above $3 million (known as Division 296 tax), concerns and debates have emerged about the broader implications for investment strategies, retirement planning, and even the property market.

It is intended that once passed by Parliament, the new tax – which doubles the tax rate from 15 per cent to 30 per cent for balances that exceed $3 million – will apply from July 1, 2025.

The tax change is expected to directly affect less than 0.5 per cent of investors or around 80,000 people.ⁱ

Treasurer Jim Chalmers describes the increase as “a modest change” that will make “concessional treatment for people with very large superannuation balances still concessional but a little bit less so”.ⁱⁱ

He says it will help fund other priorities such as Medicare, cost-of-living relief and tax cuts.

The Grattan Institute says tax breaks on super contributions cost the federal budget nearly $50 billion in lost revenue each year.ⁱⁱⁱ

The Institute says that, while super is intended to help fund retirement, it has become a “taxpayer-subsided inheritance scheme”. By 2060, Treasury expects one-third of super withdrawals to be as bequests – up from one-fifth today.

How will the rate be calculated?

The formula for the additional tax payment due calculates the difference between the member’s total superannuation balance for the current and previous financial years and adjusts for net contributions (which excludes contributions tax paid by the fund on behalf of the member) and withdrawals.

An earnings loss in a financial year, can be carried forward to reduce the tax liability in future years.

The calculation of earnings includes all unrealised gains and losses.

Implications for investors

The Grattan Institute says taxing capital gains as they increase removes incentives to “lock in” investments. “But it can create cash flow problems for some self-managed super fund (SMSF) members who hold assets such as business premises or a farm in their fund,” the Institute says.^iv

Many commentators speculate there will be a major change to asset allocation in super, particularly in SMSFs, as a result of the move to tax unrealised gains.

Meanwhile, one property analyst predicts a structural shift in property investment with commercial real estate becoming more attractive because of its stronger income yields relative to capital growth.^v

The new tax could also reduce the appeal of super as an inheritance tool with investors likely to explore alternative wealth transfer methods.

Navigating the changes

With the tax changes looming, we’re helping clients to ensure their portfolios will continue to meet their expectations.

For those looking to minimise their exposure to the tax, there are a number of strategies that may be useful.

These include:

1. Diversifying investments outside of superannuation by, for example, making direct investments in equities, bonds or private businesses.
2. Considering alternative retirement savings vehicles such as family trusts.
3. Actively planning to optimise tax efficiency by, for example, structured withdrawals to keep balances below the $3 million threshold, making use of tax exemptions and considering asset reallocation.

The new tax marks a significant shift in Australia’s retirement savings landscape. While the government argues that the measure is modest and targeted, its long-term implications—particularly the taxation of unrealised gains—could reshape investment strategies for high-net-worth investors.

For those nearing retirement with a high super balance, careful financial planning will be essential and all investors who could potentially be affected, should be reassessing their portfolios and weighing up whether alternate wealth management strategies may be an option.

Please get in touch if you would like help to navigate the changes.

i Better targeted superannuation concessions – factsheet (PDF)

ii Interview with Michelle Grattan, Politics podcast, The Conversation | Treasury Ministers

iii, iv Tax reform will make super fairer and the budget stronger – Grattan Institute

v $3 million superannuation tax change sparks property warning as ‘panic’ selling begins

Volunteering in retirement: finding purpose, structure, and joy

Retirement might be just around the corner, or maybe you’ve recently crossed that exciting threshold. You’ve worked hard for decades, and now ready to trade in the alarm clock for leisurely mornings and to-do lists that are actually fun. But as you move into the next phase of your life; a thought might cross your mind: What now?

While the idea of unlimited free time sounds wonderful at first, many people find that after the novelty wears off, there’s something important missing. Work often provides structure, purpose, and a sense of accomplishment. Without that, it’s easy to feel a little… adrift.

So, when you picture what your ideal retirement looks like, it can be a good time to think about what you still have to offer the world and consider volunteering. As well as helping others, you’ll also enrich your life in so many ways.

Enhance your life

A study commissioned by Apia found that more than half (56 per cent) of Australians over 50 years of age, are currently engaged with community or volunteer work.ⁱ And the benefits are not just the recipient of their support – it’s been proven that volunteering can boost your own happiness, your mental health, and even your physical well-being.ⁱⁱ It’s like a secret ingredient for a fulfilling retirement.

Retirement beyond the finances

Planning your retirement is more than just numbers on a spreadsheet; it’s about creating a fulfilling, meaningful lifestyle. Volunteering can help restore that sense of purpose when you are no longer working, and add structure to your days, all while benefiting others. Thinking about volunteering before you leave the workforce can give you a head start in discovering what really lights you up, and it will give you a smooth transition into the next chapter of your life.

Here are a few tips on how to get started, make your time count, and make sure you’re doing something meaningful and truly brings you joy.

Consider your skills

You have years of knowledge, skills and life experiences to draw upon and it can be enormously satisfying to use those to help others. Your contribution can reflect the skills you honed in the workplace or talents you developed along the way. Have you always been the go-to person for organising family events or helping friends with their tech problems? Think about how you can use your skills – whether that’s helping others, improving areas in your community – like gardening, or even just making someone smile.

Choose a cause that sparks your passion

Think about what has always inspired you. Volunteering is most fulfilling when it aligns with your interests and values. So, take a moment to consider what causes excite you and look for organisations that align with your passions – maybe a local food bank, animal rescue, or environmental group. Your volunteering experience should feel like a rewarding activity, not an obligation.

Start exploring early

Ideally, don’t wait until your last day of work to decide how you’ll spend your free time. Start researching volunteering opportunities in your community or online. Many organisations offer flexible, part-time opportunities, so you don’t have to dive in full force right away. There are so many options out there that can fit into your schedule.

Volunteering, however, you approach it, can open up a whole new world. Once you look for opportunities to assist others, you also enhance your own well-being in a myriad of ways. Working with other like-minded people can give you an incredible sense of community and connection, developing fantastic friendships along the way. Not to mention the sense of satisfaction you’ll feel as you learn new things and are exposed to new ideas

Consider how you can weave volunteering into your new life. It can be a way to make your retirement truly extraordinary, while also making the world a better place.

Volunteering ideas to consider

• Mentoring: Share your knowledge by helping someone in need of guidance – whether that’s through career coaching, tutoring, or life skills.
• Local charities: Get involved in your community by assisting with food banks, shelters, or organising fundraisers for causes you care about.
• Animal shelters: If you’re an animal lover, consider helping out at your local shelter, either by walking dogs or assisting with adoptions.
• Environmental causes: Join efforts to clean up parks, plant trees, or raise awareness about environmental issues.

i https://www.apia.com.au/apia-good-life/community-relationships/value-of-volunteering.html

ii https://pmc.ncbi.nlm.nih.gov/articles/PMC7375895/