Reform and resilience in uncertain times

Treasurer Jim Chalmers has framed the 2026 Federal Budget as “the most important and ambitious budget in decades”.

“This Budget is about getting us through the global oil shock and taking pressure off Australians while building a stronger economy, better tax system, a more sustainable budget and lifting living standards,” the Treasurer told Parliament.

With an overarching theme of ‘reform and resilience’, the Federal Government is aiming to shore up investor confidence at a time when the global economy teeters thanks to war in the Middle East and the disruption of global oil supplies. Despite the challenges, Treasury says Australia’s economy continues to grow faster than every major advanced economy.

For households and wage earners, the Budget delivers a mix of targeted cost-of-living relief and significant structural reform, particularly in tax and housing.

The big picture

At the headline level, the Budget forecasts an underlying cash deficit of $31.5 billion in 2026–27, an improvement of $2.8 billion on the mid‑year update, despite slower global growth and higher oil prices.

Economic growth is forecast to slow from 2.25 per cent this financial year to 1.75 per cent in 2026–27, reflecting weaker international conditions, before gradually strengthening over the medium term. Inflation is expected to rise temporarily in the June quarter to around 5 per cent driven largely by fuel and transport costs linked to the war‑driven global oil shock. Despite this near-term pressure, the Government continues to project a return to a balanced budget in the mid-2030s followed by modest surpluses.

The Treasurer maintains that budget repair is being driven primarily by savings and spending restraint, rather than broad-based tax increases.

From a policy perspective, the Budget rests on five pillars: managing the global oil shock; easing cost‑of‑living pressures; lifting productivity; reforming the tax system; and strengthening national resilience. Each has direct implications for household finances, superannuation, investment structures and long‑term planning.

The Treasurer has made clear that a major goal is to “rebalance the tax system” so that wage earners are not treated substantially differently from those who earn income through assets and investments.

While some measures will take years to flow through, the direction is to prioritise the national security, energy supply, productivity and care sectors, while accepting political risk, to strengthen the economy over the medium to long term.

Cost-of-living

The Government has been careful to structure cost-of-living measures so that they don’t meaningfully add to inflation. The most prominent initiative is the Working Australians Tax Offset, providing a $250 offset for more than 13 million employees from the 2027–28 income year.

In addition, workers will be able to claim a $1,000 instant tax deduction for work-related expenses from 2026–27, without the need to keep receipts.

Income tax thresholds will also be adjusted. From 1 July 2026, the 16 per cent tax rate, applying to income between $18,201 and $45,000, will be reduced to 15 per cent before falling further to 14 per cent from 1 July 2027.

The government will increase Medicare Levy low-income thresholds by 2.9 per cent from the 2025–26 income year, a change expected to benefit more than one million lower-income Australians who will remain exempt from the Levy or pay a reduced rate.

Productivity

Productivity comes in for renewed focus, reflecting concern that long-term improvements in living standards can’t be sustained without structural change. The Budget allocates funding aimed at reducing red tape by an estimated $10.2 billion per year, including faster environmental approvals and streamlined foreign investment processes.

Housing construction remains a central productivity priority. New funding for local infrastructure is designed to support up to 65,000 extra homes, alongside measures to fast‑track skilled migrant trades and improve construction capacity.

Investment in transport infrastructure also features prominently, with $8.6 billion committed to nationally significant road and rail projects, improving freight efficiency and workforce mobility particularly across the regions.

Taken together, these measures represent a shift toward capability building. For business owners and investors, the emphasis is on reducing friction, improving labour supply and supporting capital investment that lifts output over time rather than fuelling higher prices.

Tax reform

The most debated element of the Budget is the tax reform package directed at property investors and discretionary trusts.

From 1 July 2027, negative gearing will be limited to new housing, with existing arrangements grandfathered. At the same time, the 50 per cent capital gains tax (CGT) discount will be replaced with cost-base indexation, alongside a new minimum effective tax rate of 30 per cent on capital gains.

The CGT settings for super and self-managed super funds will remain unchanged, which means investors will continue to receive a CGT discount of 33.33 per cent for relevant assets held for over 12 months in super.

The Government argues these changes are essential to address intergenerational inequity and housing affordability, while continuing to support investors who add to new housing supply. Treasury modelling suggests a modest impact on rents over time, with savings redirected toward care services and tax relief for wage earners.

Trusts have also been brought into the Government’s tax reform agenda, with a new minimum 30 per cent tax rate to apply to discretionary trust distributions from 1 July 2028. The measure is aimed at improving integrity and reducing income‑splitting arrangements that allow some taxpayers to pay significantly less tax than wage earners on comparable incomes.

Housing affordability

The Treasurer aims to address housing shortages and affordability, by increasing total investment to $47 billion and supporting an estimated 75,000 additional Australians to achieve home ownership over the next decade through the tax reform package.

The Government claims around 65,000 additional homes will be delivered over 10 years through its support for new developments. A new $2 billion fund has been established to help local governments and state utilities build the infrastructure needed to support new housing.

To free up additional supply, the Government is extending the ban on foreign buyers purchasing established homes until mid-2029.

Aged care and health

Health and aged care receive significant additional funding as demand continues to rise. The Budget commits $25 billion in additional hospital funding over the medium term, alongside incentives to expand bulk billing and reduce strain on emergency departments.

The Government has confirmed further reductions in the cost of medicines, building on earlier PBS reforms, with cheaper scripts and faster access to newly listed drugs funded through additional PBS investment.

Aged care reform focuses on both supply and workforce sustainability. The Government will fund incentives to support construction of an additional 5,000 residential aged care beds per year by 2029.

The NDIS also features prominently, with continued efforts to rein in unsustainable cost growth and strengthen integrity. Measures include tightening eligibility, reducing rorting and redirecting funding towards participants with the highest needs.

Future proofing

The focus on national resilience is a defining characteristic of the Budget. Fuel security is front and centre following the global oil shock, with measures to secure domestic fuel reserves, reserve 20 per cent of gas exports for Australian use and provide concessional finance to logistics and manufacturing firms most exposed to price volatility.

Defence spending also rises sharply, with a record additional $53 billion committed over the coming decade. The focus is on readiness, supply chains and regional security, reflecting growing geopolitical risk in the Indo‑Pacific and beyond.

Looking ahead

The outlook remains uncertain. Treasury acknowledges the risk of further inflation spikes if global energy markets deteriorate, with worst-case scenarios still modelling inflation above 7 per cent and higher unemployment. But the central forecast avoids recession and assumes gradual improvement from late 2027 onward.

If you have any questions about how the 2026 Federal Budget may affect your personal finances, please contact us to discuss.

Information in this article has been sourced from the Budget Speech 2026-27 and Federal Budget Support documents.  

It is important to note that the policies outlined in this article are yet to be passed as legislation and therefore may be subject to change. 

There’s a particular kind of unease that creeps in when market headlines start mixing geopolitics with talk of oil prices and recessions. That feeling has been hard to avoid, as the escalating war in the Middle East spooked global markets and brought fresh uncertainty to an already fragile economic landscape.

For investors, watching so many forces moving at once and volatile numbers, there can be a strong temptation to “do something”.

Before reacting, a good understanding of what’s driving market movements is useful to assess the short and medium term. More importantly, it helps to work out how your long term strategy fits in.

Energy markets have felt the most immediate effect of the conflict. Iran is at the centre of one of the world’s most strategically important regions for oil and gas production.

As tensions escalated, markets quickly priced in the risk of supply disruptions, particularly through critical shipping routes in the Middle East. That alone has been enough to push oil and gas prices sharply higher.

History shows that energy markets tend to react first and fastest during geopolitical crises.ⁱ

Even when physical supply is not immediately interrupted, uncertainty itself drives speculative buying. Higher energy prices then feed into almost every corner of the global economy: transport, manufacturing, agriculture and ultimately household budgets.ⁱⁱ

Global share markets responded quickly to the crisis with sharp drops after the first bombs in Iran.

Share prices have fallen and recovered several times since the conflict began, often related to US President Trump’s announcements. But, in both Australia and the US, the markets were down more than eight per cent by the end of March. Technology stocks have fallen particularly hard.

The conflict has come at a time when the global economy was already fragile. Before March, analysts were debating whether the US economy would manage a “soft landing” or slip into recession as higher interest rates worked their way through the system.

Adding an energy price shock into the mix increases the risk that higher costs slow spending and investment. Rising fuel prices act like a tax on consumers and businesses. Money spent at the petrol station is money not spent elsewhere in the economy. As a result, concerns about slowing economic growth have been quick to re‑emerge.

In Australia too, there’s increasing talk of recession – as much as a 30 per cent chance within the next 12 months, according to AMP.ⁱⁱⁱ

However, Treasurer Jim Chalmers disagrees saying that, while the economy is expected to take a “sizeable hit”, a recession is not expected.^iv

The immediate effects

Market volatility is likely to continue with sharp price swings as the markets react to either good or bad news coming out of the Middle East.

For households, the most visible impact is likely to be at the pump and in their power bills. Widespread price rises here are likely to affect consumer confidence and spending patterns.

So-called “safe-haven” assets such as cash, government bonds and some currencies often benefit during uncertain times as investors look to defend their portfolios, however bond yields have experienced volatility as investors assess the evolving situation in the Middle East.

Gold was also once on the list of safe havens.  But, during the most recent crisis, its value has plunged nearly 15 per cent during the month. Nonetheless the price remains high – up by almost 300 per cent over the past decade.^v

While there’ll be plenty of market “noise” ahead, it’s important to remember that short‑term market reactions may be driven as much by emotion as by fundamentals. Fear, uncertainty and rapid shifts in sentiment often exaggerate price moves in the early stages of a crisis.

Looking further ahead

Looking beyond the immediate panic, the medium term (the next six to 18 months) will depend on how the world adapts to the energy prices shock.

Continued high oil prices can have several effects:

• Inflation pressures may linger. Energy price rises affect almost every sector of the economy. However, some sectors may perform better including commodities, energy companies and defensive assets such as infrastructure, healthcare, utilities and consumer staples.
• Economic growth may soften. Higher input costs squeeze businesses and reduce consumer spending power. Over time, this can weigh on economic growth and corporate earnings.
• Structural change can accelerate. Energy shocks often act as catalysts, encouraging investment in alternative energy sources, efficiency improvements and supply chain diversification. While disruptive, this can create long‑term opportunities in certain sectors and regions.

It is also worth remembering that energy shocks don’t last forever. Markets adapt, alternative supply routes emerge and prices eventually reflect new realities. The timing is uncertain, but history suggests that economies and markets are more resilient than they often appear in the heat of the moment.

Strategy over fear

Perhaps the most important thing to remember right now is that your financial plan was built for times like this.

Sound financial planning anticipates that markets will be periodically disrupted by wars, pandemics, financial crises and recessions.

Diversification is your first line of defence. A portfolio spread across various asset classes doesn’t eliminate volatility but it means that no single event can derail your entire financial position.

Ensuring your investment mix reflects your time horizon (the length of time you expect to hold an investment) and capacity for loss is your second.

The discipline required in moments of market stress is to distinguish between short-term fear and long-term strategy. Fear says: sell everything and wait for calm. Strategy says: stay invested, stay diversified and if anything has changed, let’s talk about it properly.

If the events of last month have raised questions for you, we’re here to help you navigate with confidence. Please give us a call.

i The Impact of Geopolitical Events on Oil Prices | Gulf News

ii Sheltering From Oil Shocks | IEA

iii Fuel surcharges are adding to consumers’ financial stress | ABC News

iv Chalmers says there is no ‘expectation’ of a recession | The Guardian

v Gold is meant to be a ‘safe haven’. Why is it crashing? | The Conversation

At its latest meeting, the Reserve Bank Board announced it was increasing the cash rate to 4.10 per cent.

The Board observed that while inflation has fallen substantially since its peak in 2022, it picked up materially in the second half of 2025. Information since the February meeting suggests that some of the increase in inflation reflects greater capacity pressures.

The conflict in the Middle East has resulted in sharply higher fuel prices, which, if sustained, will add to inflation. As a result, the Board judged that there is a material risk that inflation will remain above target for longer than previously anticipated.

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

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

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

March has arrived, and with that the weather starts to cool; this brings a fresh chapter and a chance to set your pace for the months ahead.

February delivered mixed signals for the Australian economy.

Labour market conditions were steady. The unemployment rate held at 4.1%, with 18,000 more people employed in January, driven by a rise in full-time jobs and partly offset by a fall in part-time roles.

Wage growth continued to edge higher, up 0.8% in the December quarter and 3.4% over the year, while household spending softened.

Inflation was slightly higher than expected, with CPI remaining at 3.8%, and trimmed inflation (the RBA’s measure of underlying inflation) increasing to 3.4%, up from 3.3%.

Reporting season added its usual volatility to the share market and the ASX hit several record highs towards the end of the month.

The Westpac–Melbourne Institute Consumer Sentiment Index fell further by 2.6% to 90.5 in February, impacted by February’s cash rate increase.

The Australian dollar strengthened, largely due to global risk sentiment, hitting a three-year high of USD 0.71 by month’s end.

The EOFY jobs that might matter more than you think

As the end of the financial year (EOFY) approaches, investors often focus on topping up super, maximising deductions, prepaying interest or reviewing portfolios. While these are all valuable activities, there are some less obvious tasks that can have a big impact on your tax position, wealth preservation and long-term planning outcomes.

Here are five areas that investors can often miss in EOFY planning.

 1. Capital gains in volatile markets

Investment markets have been volatile in recent years, with rapid movements in equities, property and fixed income. When investors buy and sell during choppy market periods, capital gains tax (CGT) considerations become even more important.ⁱ

It is the ideal time to assess whether:

You should realise gains this year or defer them – The decision can hinge on:

• Expected income this year vs next year
• Whether you qualify for the 50 per cent CGT discount
• Available capital losses
• Investment timeframes and risk appetite

You have unused capital losses – Losses can be used to offset realised gains, but they cannot be used against ordinary income. Some investors may find that realising strategic gains before 30 June allows them to “unlock” unused losses that have been sitting dormant.

Be aware of “wash sale” rules. Some investors plan to sell an asset to realise a loss and then quickly buy it back. The ATO calls this a wash sale and may deny the loss.ii

2. Superannuation recontribution strategies

A super recontribution strategy is sometimes overlooked because it requires coordination between pension payments, contributions and tax components. But, when used appropriately, it may significantly reduce future tax for beneficiaries and increase flexibility in estate planning.ⁱⁱⁱ

This strategy usually involves withdrawing a portion of your super (usually from the tax free and taxable components proportionally), then recontributing these funds back into super as a non-concessional contribution (if you’re eligible).

The result is that more of your balance becomes tax free, which can reduce or eliminate the “death benefits tax” that applies when super passes to non-dependent beneficiaries, such as adult‑children.^iv

3. Bringing forward deductions and deferring income

While prepaying expenses and deferring income is a well-known EOFY strategy, it may not be successful for everyone, so check carefully that it’s useful for you.

Bringing forward deductions – You may be able to prepay, interest on investment loans, income protection premiums, ongoing advisory fees, and professional subscriptions. But if you’re approaching income thresholds (such as Medicare Levy Surcharge minimums, private health insurance rebates or HECS/HELP repayment bands) it’s important to calculate whether prepayments will actually deliver you a benefit.

Deferring income – Small businesses using cash accounting may be able to defer invoicing until July and investors might choose to delay receiving distributions or bonuses. But don’t forget that deferring income may affect borrowing capacity or government payments.

4. Managing Division 7A loans

Division 7A can catch business owners off guard at EOFY. These rules apply when a private company lends money, pays expenses or provides assets to shareholders or their associates. If not handled correctly, the ATO may treat the payment as an unfranked dividend, resulting in significant unexpected tax.^v

To stay on top of your Division 7A obligations:

• Confirm all loans are documented
• Check minimum yearly repayments
• Consider whether to repay, refinance or restructure
• Don’t forget about company-paid personal expenses

A well-timed review can prevent unintended tax consequences and keep your structure compliant. 

5. Reviewing your records

Another often missed EOFY task is checking that your records and substantiation are complete before preparing your tax return.

The ATO is increasing its use of data matching programs, so having accurate documentation is essential. This includes keeping receipts for deductible expenses and retaining statements for managed funds and other investments.

EOFY planning is about much more than topping up super or gathering receipts. Hidden traps like CGT and Division 7A timing can create unnecessary tax if ignored, while proactive strategies such as recontributions can deliver long-term estate planning benefits.

By taking a structured approach, you can ensure every part of your financial picture is working together, and no opportunity is missed. We’re here to help. Please give us a call.

i Capital gains tax | ATO

ii Wash sales: The ATO is cleaning up dirty laundry | ATO

iii Super recontribution strategy: How it works | SuperGuide

iv Paying superannuation death benefits | ATO

v Loans by private companies | ATO

Ways to prevent family trust disputes

Most families don’t expect disputes to arise within their trust, especially when its purpose is to protect wealth and support loved ones. But misunderstandings about control, rights or responsibilities can quickly create friction.

A little upfront planning can help preserve relationships as well as assets.

When roles, expectations and powers are unclear, disputes can arise and often at the worst possible time, such as after the death of a family member.

Why governance matters

A trust deed sets out the legal framework, but it does not address family expectations, values or the “rules of engagement” around control, communication and decision-making. That’s where a trust charter or family constitution can be invaluable.

A trust charter is a non-binding but strategically important document that outlines:

• the family’s vision and values
• agreed principles for managing wealth
• expectations of trustees, appointors and beneficiaries
• communication protocols
• dispute resolution processes.

For more complex families, such as those with multiple branches, blended structures or significant operating businesses, these documents can prevent misunderstandings and provide clarity across multiple generations.

For example, disputes often arise because beneficiaries don’t understand the limits of their rights or the powers of trustees. Also, families often avoid talking about who will control the trust next.

In the longer term, a charter provides continuity as family members age, or retire, by providing younger family members with guidance about their responsibilities.

Trustee succession planning

A number of recent court cases have shown how the absence of agreed rules and communication channels can increase conflict, particularly when it comes to succession.

A trust’s long-term stability depends heavily on what happens when the original trustee, appointor or guardian dies, becomes incapacitated, or steps aside. Many families assume the deed will automatically produce a smooth transition. Often, it doesn’t.

The Cardaci dispute, an eight-year legal battle ending with a High Court decision in 2024, shows how messy trust control can become without forward planning. The case involved family members disputing the administration, decision-making powers and trustee conduct in a long running family business. The litigation demonstrates how disputes about control and succession can escalate unless families regularly review their trust structures and governance frameworks.ⁱ

Preventing disputes

Don’t be tempted to “set and forget” a trust. Keeping on top of new needs and expectations as well as changing family structures may save time and money later on.

1. Review the trust deed regularly

Trusts established decades ago often contain outdated provisions and restrictive definitions of beneficiaries. Major life events, such as marriages, divorces, deaths, business restructures, should trigger a deed review.

2. Create or update a trust charter

A charter can address:

• succession intentions for trustee and appointor roles
• the philosophy behind distributions
• how beneficiaries should communicate concerns
• expectations regarding involvement in the family business
• protocols for conflict resolution.

It means that all beneficiaries are “on the same page” and it reduces emotional decision-making.

3. Clarify trustee and appointor succession

Succession for these roles should be explicitly documented. Consider:

• who should take over, and whether they have the skills
• whether multiple appointors or trustees should act jointly
• how disputes between co-appointors will be handled
• what happens if successors divorce, die, or become incapacitated.

4. Prevent power imbalances

Many disputes are triggered when one family member gains disproportionate control. Solutions include:

• using corporate trustees with independent directors
• appointor committees rather than a single appointor
• including “fit and proper person” requirements for decision-makers
• requiring successor training or external advice. 

5. Document decision-making carefully

Courts expect trustees to act impartially and for proper purposes. Keeping clear records of decisions, especially when it comes to distributions, investments and amendments, can reduce the likelihood of misconduct allegations.

If you’d like support reviewing your trust governance or establishing a family charter, our team can guide you through the process.

i Key lessons from high court trust litigation

Warren Buffett: timeless lessons from a lifetime of investing

Warren Buffett has never looked much like a financial celebrity. He lives in the same house he bought in Omaha in 1958, prefers simple food, and has built one of the greatest investment records in history using his long-term value investing strategy.

Now stepping down at 95 years’ old from his role as CEO on the board of Berkshire Hathaway, one of America’s foremost holding companies, Buffett leaves behind a legacy that has earned him the enduring title of “the Oracle of Omaha.”

His story offers valuable lessons for anyone navigating markets, especially during times of uncertainty.

Time, patience, and the ability to change your mind

Perhaps Buffett’s greatest advantage was not a secret strategy or a rigid set of rules. It was time, combined with good judgment. He began investing as a teenager and stayed invested for more than seven decades. The power of compounding did much of the heavy lifting, but only because he stayed the course long enough to let it work.

As Buffett famously put it:

“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

That long-term mindset helped him ignore short-term noise, particularly during market downturns. When markets fell, Buffett did not panic. He looked for opportunity. 

“Be fearful when others are greedy, and greedy when others are fearful.”

But patience did not mean stubbornness. One of the most misunderstood aspects of Buffett’s success is the belief that he simply bought and held forever. In reality, he sold. He adapted. He exited investments when the facts changed. He acknowledged mistakes, sometimes very publicly, and moved on. Over time, entire sectors he once avoided were embraced, while others he once favoured were left behind.

“When the facts change, I change my mind. What do you do, sir?” 

His real edge was not blind adherence to a philosophy, but the ability to apply principles flexibly. He knew when to stay invested, when to add, and when to walk away. That combination, long-term conviction paired with the willingness to change course, is far harder than following any checklist and far rarer in practice.

Staying calm when markets are down 

Buffett’s calm during market stress has become legendary. He understood that volatility is not a flaw in markets. It is a feature of them. Declines were not signals to abandon investing altogether. They were moments that tested discipline and perspective and rewarded those able to separate temporary discomfort from permanent loss.

As Buffett succinctly observed:

“The stock market is a device for transferring money from the impatient to the patient.”

Importantly, his focus remained on underlying businesses and long-term outcomes, not daily price movements. That emotional discipline allowed him to act rationally when others could not, particularly during periods of widespread pessimism.

Investing in what you understand

Another cornerstone of Buffett’s approach was simplicity. He avoided businesses he could not understand and stayed within his “circle of competence.”

“Never invest in a business you cannot understand.”

This discipline kept him out of many speculative booms and fashionable trends. He was not trying to predict the next big thing. He was trying to make sensible decisions repeatedly over long periods of time, accepting that avoiding major mistakes can matter just as much as finding great opportunities.

A crucial caveat: context matters

While Buffett’s principles are powerful, his success is sometimes oversimplified. He invested with extraordinary scale, deep access, influence, and capital. He could survive mistakes that would permanently damage the average investor, negotiate unique deals, and wait far longer for outcomes to play out.

This means that while his thinking is broadly applicable – patience, discipline, and flexibility – his exact methods are not always transferable. Blindly copying concentrated bets or individual stock picks without those advantages can introduce risks that do not show up in hindsight success stories.

The real legacy

Warren Buffett did not succeed because he followed rules rigidly. He succeeded because he understood them well enough to know when to bend them, and when to abandon them entirely.

His legacy is not a list of stocks or a fixed formula. It is a reminder that successful investing is as much about judgment, adaptability, and emotional control as it is about time horizons or valuation metrics.

In that sense, Buffett’s greatest lesson is not “do what I did,” but “think carefully, stay patient, and remain willing to change when the world changes.”

At its latest meeting, the Reserve Bank Board announced it was increasing the cash rate to 3.85 per cent.

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

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

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

As we say goodbye to the summer holiday period, 2026 kicked off with some encouraging signs but it comes with a sting in the tail as global uncertainty continues to shake things up.

There was a surprise drop in unemployment in December to 4.1%, the number of jobs available increased and household spending grew.

However, these elements have also contributed to persistently increasing inflation. In a higher-than-expected result, CPI rose 3.8% in the 12 months to December, up on the November figure and exceeding forecasts by economists and the RBA.

Many commentators are now predicting at least two, and perhaps-even three, interest rate rises this year.

The Aussie dollar remains strong, finishing the month at US$0.70. It’s up 11.4% since US President Trump’s inauguration while the US dollar has suffered, falling 11.2% during the same period.

The S&P/ASX 200 climbed 1.8% in January, reaching 8,869 come month’s end, but there’s still ground to be made up to reach last October’s peak.

The Westpac–Melbourne Institute Consumer Sentiment Index slipped 1.7% lower to 92.9 in January from 94.5 in December.

RBA Announcement – February 2026

At its latest meeting, the Reserve Bank Board announced it was increasing the cash rate to 3.85 per cent.

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

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

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

Market movements and review video – February 2026

Position your portfolio for what’s next

A volatile geopolitical landscape, rapid technological shifts and evolving energy systems are helping to reshape investment returns.

As we settle into 2026, the challenge for investors is in understanding and taking advantage of (or avoiding, if necessary) these global trends.

The artificial intelligence boom has taken much of the oxygen in the market. The tech giants have committed massive infrastructure spending with global data centre investments reaching a record $61 billion in 2025, cementing the evolution from a speculative investment.ⁱ

These titanic financing needs are reshaping how capital is deployed, according to S&P Global 451 Research. More than $900 billion is needed for data centre investment over the next four years.ⁱⁱ

Some analysts warn of an AI bubble, noting that several of the Magnificent Seven stocks – the most influential companies in the US market – underperformed the S&P 500 in 2025. Others argue the boom has longer to run, citing historical cycles since 1920.ⁱⁱⁱ

Nonetheless, investment opportunities are beginning to broaden into software and services as the sector matures.

These investments have become a dominant contributor to growth in the United States, accounting for 80 per cent of private domestic demand growth in the first half of 2025. While the US and China are leading the data centre charge, commanding more than 60 per cent of global capacity, players across Europe, the Middle East and Asia-Pacific are racing to establish their own digital sovereignty.^iv

Australia ranks at the lower end of advanced economies in rates of adoption and trust in AI, according to a Reserve Bank report.^v

Yet, Australian research and development investment in AI is experiencing significant growth. AI-related patents, while still low by world standards, almost quadrupled in the last decade, according to a National Artificial Intelligence Centre report.^vi

The energy transition

The global energy mix is undergoing a significant shift with accelerating investment in electric transport, renewables and grids, driven by massive growth in demand and improved supply chains.

Capital flows to the energy sector rose to more than USD3 trillion last year and are forecast to hit USD3.3 trillion this year, partly fuelled by the dramatic cost reductions in solar power and battery storage.^vii

This surge in spending creates investment opportunities directly in equities focused on the energy value chain. Infrastructure funds and private equity are also targeting renewable generation and storage assets for long-term, inflation-linked returns.

Navigating wars and tariffs

The markets are digesting a fragmented global economy pushed and pulled by ongoing conflicts and the shifting US tariff policy that are affecting supply chains, inflation and risk.

The risks to financial stability are also caused by stretched asset valuations, sovereign bond market pressures and the rising influence of non-bank financial institutions, the International Monetary Fund warns.^viii

As a result, ‘safe havens’ have become a feature of many portfolios. Investors looking for protection from currency instability have headed to gold, pushing its price ever higher. Meanwhile, institutional investors have made defence stocks a cornerstone of their portfolios as many nations increase defence spending.

Beyond traditional assets

As traditional stock and bond correlations become less predictable, many individual investors are looking toward ‘alternatives’ in the hunt for stability . These alternatives include:

• Infrastructure – such as toll roads and utilities
• Private equity – offers a way to capture value in unlisted companies. New private equity funds are emerging to shake up the sector, allowing shorter term capital commitments.
• Private credit (or private debt) market – offers floating-rate exposure, which can be a valuable hedge if interest rates are high. In Australia, the $224 billion private debt market accounts for some 14 per cent of all corporate lending.^ix

Next steps

Looking ahead, success may hinge on positioning portfolios to capture emerging opportunities across technology, energy, geopolitics and alternative assets while mitigating the risks.

Please get in touch to talk about how to navigate the new opportunities.

i Investment in data centers worldwide hit record $61bn in 2025 | The Guardian

ii Data Centers: Are The Winning Odds Less Certain I S&P Global Ratings

iii US market boom-bust cycles – where are we now?

iv Look Forward: Data Center Frontiers | S&P Global

v Technology Investment and AI: What Are Firms Telling Us | RBA

vi Australia’s AI ecosystem | Department of Industry Science and Resources

vii World Energy Investment 2025 | IEA

viii Global Financial Stability Report, October 2025 | IMF

ix Australian Private Debt Market Review 2025

Travel – your passport to feeling young

Forget expensive creams, doing push-ups, or pretending you like kale. The real anti-aging secret might be digging out your carry-on bag.

Travel, it turns out, is basically a spa treatment for your brain, your body, and your soul, except, instead of coconut water, you get the thrill of new adventures and stories you will retell forever. Here’s why hopping on a plane, bus, train or cruise ship might be one of the most effective ways to feel younger.

New places flex your synapses

When you travel, your brain has to wake up.

New streets, new languages, new customs, new ways to say “hello” without accidentally insulting someone. Your brain is suddenly doing gymnastics instead of scrolling on autopilot. Learning and adapting keeps your mind flexible, curious, and sharp, which is basically the opposite of aging.

Think of it this way: every time you figure out a subway map in a new city, your brain whispers, “Okay, fine, I still got it.”

Moving without calling it exercise

At home, exercise feels like a chore. On vacation, walking 15,000 steps feels like exploring.

You climb stairs to viewpoints or lookouts, wander through neighbourhoods and chase sunsets without realising you have been active all day. Movement keeps joints happy, muscles awake, and your body feeling more alive, all without the emotional damage of looking at a mirror in a gym.

Anti-aging win, zero burpees required.

Stress packs its bags

The stress of our daily life has a way of settling into your shoulders like it pays rent. Travel shakes things loose.

When your biggest problem becomes “Which pastry should I try next?” your nervous system finally gets a break. Lower stress levels are linked to better sleep, better mood, and yes, slower aging.

Even when travel is chaotic it is a different kind of stress, one that often turns into laughter later. And laughter, as science and most of us will agree, is excellent medicine.

You remember who you are

Somewhere between schedules and responsibilities, adulthood has a way of making people forget their playful side. Travel brings it back.

You become the person who tries unfamiliar food, talks to strangers, gets lost, and becomes more spontaneous, more often. That sense of wonder, of being present and curious, is deeply connected to feeling young.

Wrinkles happen. Wonder does not have to disappear.

Time slows down

At home, weeks blur together. When you travel, a single day can feel enormous.

New experiences stretch time, making life feel fuller and richer. And feeling like life is full, not rushed, not repetitive, is one of the most underrated anti-aging benefits there is.

You are not adding years to your life. You are adding life to your years. Yes, it is cheesy, but it is also true.

Collect stories, not just souvenirs

Travel gives you stories that live longer than any face cream ever will.

Years later, you might forget emails and deadlines, but you will remember that tiny café, that wrong turn, the people you met by chance, and that moment you realised you were braver than you thought. Those memories keep you mentally young because they remind you that you are still growing, still learning, still becoming.

Aging is inevitable. Becoming boring is optional.

Final boarding call

Travel will not stop time, but it can remind you how to use it well. It wakes you up, loosens you up, and nudges you back into the world when life starts feeling a little too small or predictable.

So, consider this your friendly push. Book the trip you keep postponing. Take the long weekend even if the timing is not perfect. Go somewhere you have never been or return to a place that once made you feel wide awake and alive. Walk unfamiliar streets. Eat the pastry. Miss the train and laugh about it later.

You do not need a grand adventure or a faraway destination. You just need movement, curiosity, and the willingness to step outside your routine. Because the more you go out into the world, the more alive you tend to feel. And feeling alive is one of the best anti-aging strategies there is.

Protect and grow wealth in uncertain times

Interest rate swings, market volatility and global tensions make one thing clear: wealth management needs both protection and growth strategies to thrive.

Finding the balance between driving growth and safeguarding capital takes a disciplined approach to portfolio construction but it could help your wealth to endure, despite the ups and downs of the market and the impact of inflation on your purchasing power.

Many investors equate balance with diversification alone. But balance means understanding how each investment or exposure contributes to the twin goals of growth and protection and whether the portfolio is robust enough to withstand challenging times.

There’s no one-size-fits-all answer. Depending on age and stage in life, some investors are chasing aggressive growth while others want capital preservation.

A US study of almost a century of data confirmed that portfolios handle downturns better and recover faster if they combine growth assets with true diversifiers, including a mix of low-correlated investments and defensive assets.i

Low-correlated investments are assets that don’t move in the same direction as equities, helping to reduce overall portfolio volatility. Their correlation to stocks is low or even negative. Examples include government bonds, gold, some hedge fund strategies and commodities.

Defensive assets are expected to hold their value or outperform during market downturns. They’re chosen for stability and capital protection. Examples include cash, high-quality bonds, defensive equities (such as utilities, healthcare) and infrastructure.

The ‘cost’ of growth

Growth typically comes from listed equities, private equity, venture capital, real assets and exposures to big, long-term trends that may cut across multiple sectors. For example, healthcare innovation, energy transition or AI.

The catch? Growth invariably means volatility. If the markets dive you could feel pressure to sell at the worst time.

Defensive equities may help provide some balance. They’re shares in companies that tend to provide stable earnings and dividends regardless of whether the economy is booming or in a recession. They have strong cash flow because they sell needs rather than wants, such as power, food and medicine, and they have the ability to raise prices to cover rising costs without losing customers.

While portfolio protection starts with bonds and cash, some would say they’re not enough today and a broader range of assets may be more beneficial.

Other strategies

Other protective strategies may include buying bonds that mature at different intervals, such as every year for five years.

Physical investments, or real assets, such as real estate, infrastructure, commodities, natural resources and equipment can act as a hedge against inflation. When the cost-of-living increases, the value of physical assets tends to rise as well.

Alternatively, you could consider floating rate exposure or inflation-linked bonds (known as Treasury Indexed Bonds or TIBs in Australia and Treasury Inflation-Protected Securities or TIPS in the US).

Floating-rate bonds adjust interest payments as rates change, while TIBs increase principal and interest when inflation rises, providing a hedge against rising prices.

TIBs offer further protection with a built-in deflation floor that protects your original investment if prices fall.

Currency is the silent player

If you invest globally, currency matters. So, foreign exchange planning should be an intentional decision rather than a portfolio by-product.

The Australian dollar often falls when global markets panic so unhedged overseas assets can act as a shock absorber.ii

But full exposure can swing returns wildly. On the other hand, a partial hedging policy, for example, hedging some developed-market bond exposures, may balance volatility and opportunity.

Finally, protection is a liquidity plan. For families using trusts, SMSFs or investment companies, keep enough cash or short-term assets to cover 12–24 months of cash needs (tax, capital calls, distributions). That’s real protection.

Please give us a call to check your portfolio meets your current needs for growth and protection.

i It Was the Worst of Times: Diversification During a Century of Drawdowns

ii Drivers of the Australian Dollar Exchange Rate | Explainer | Education | RBA

Interest rate swings, market volatility and global tensions make one thing clear: wealth management needs both protection and growth strategies to thrive.

Finding the balance between driving growth and safeguarding capital takes a disciplined approach to portfolio construction but it could help your wealth to endure, despite the ups and downs of the market and the impact of inflation on your purchasing power.

Many investors equate balance with diversification alone. But balance means understanding how each investment or exposure contributes to the twin goals of growth and protection and whether the portfolio is robust enough to withstand challenging times.

There’s no one-size-fits-all answer. Depending on age and stage in life, some investors are chasing aggressive growth while others want capital preservation. The key is to ask:

• What am I earning and why? (High returns usually mean higher risk – are you comfortable with that?)
• How will the portfolio behave when it matters most? (Will it cushion losses or make them worse?)
• What investment decisions will I regret if inflation persists (for say, the next five years) or markets tank?

A US study of almost a century of data confirmed that portfolios handle downturns better and recover faster if they combine growth assets with true diversifiers, including a mix of low-correlated investments and defensive assets.ⁱ

Low-correlated investments are assets that don’t move in the same direction as equities, helping to reduce overall portfolio volatility. Their correlation to stocks is low or even negative. Examples include government bonds, gold, some hedge fund strategies and commodities.

Defensive assets are expected to hold their value or outperform during market downturns. They’re chosen for stability and capital protection. Examples include cash, high-quality bonds, defensive equities (such as utilities, healthcare) and infrastructure.

The ‘cost’ of growth

Growth typically comes from listed equities, private equity, venture capital, real assets and exposures to big, long-term trends that may cut across multiple sectors. For example, healthcare innovation, energy transition or AI.

The catch? Growth invariably means volatility. If the markets dive you could feel pressure to sell at the worst time.

Defensive equities may help provide some balance. They’re shares in companies that tend to provide stable earnings and dividends regardless of whether the economy is booming or in a recession. They have strong cash flow because they sell needs rather than wants, such as power, food and medicine, and they have the ability to raise prices to cover rising costs without losing customers.

While portfolio protection starts with bonds and cash, some would say they’re not enough today and a broader range of assets may be more beneficial.

Bonds, for example, have lost a little of their shine as the chief risk stabiliser after a crazy five years or so. The rollercoaster ride of historic low interest rates during the Covid era to the great reset from about May 2022 when the RBA’s (and the US Federal Reserve) rate hikes began. Both stocks and bonds crashed. Today, bond investors are enjoying a ‘rare sweet spot’ with yields well above the pandemic lows.ⁱⁱ

Because yields are higher, bonds now provide a significant income buffer. If bond prices fall slightly, the high interest payments can offset that loss. If rates stay the same or fall, investors lock in those higher yields.

Since most economists believe the hiking cycle is over or nearing the end, there is a chance that as central banks eventually cut rates, bond prices will rise, giving investors both high income and capital gains.

Other strategies

Other protective strategies may include buying bonds that mature at different intervals, such as every year for five years. Known as a bond ladder, this strategy means a portion of your money becomes available every year and it may provide some interest rate protection.

Physical investments, or real assets, such as real estate, infrastructure, commodities, natural resources and equipment can act as a hedge against inflation. When the cost-of-living increases, the value of physical assets tends to rise as well.

Alternatively, you could consider floating rate exposure or inflation-linked bonds (known as Treasury Indexed Bonds or TIBs in Australia and Treasury Inflation-Protected Securities or TIPS in the US).

Floating-rate bonds adjust interest payments as rates change, while TIBs increase principal and interest when inflation rises, providing a hedge against rising prices.

TIBs offer further protection with a built-in deflation floor that protects your original investment if prices fall.

Currency is the silent player

If you invest globally, currency matters. So, foreign exchange planning should be an intentional decision rather than a portfolio by-product.

The Australian dollar often falls when global markets panic so unhedged overseas assets can act as a shock absorber.ⁱⁱⁱ

But full exposure can swing returns wildly. On the other hand, a partial hedging policy, for example, hedging some developed-market bond exposures, may balance volatility and opportunity.

Finally, protection is a liquidity plan. For families using trusts, SMSFs or investment companies, keep enough cash or short-term assets to cover 12–24 months of cash needs (tax, capital calls, distributions). That’s real protection.

Please give us a call to check your portfolio meets your current needs for growth and protection.

Portfolio protection in a nutshell

• Include defensive equities and quality bonds
• Diversify with low-correlation assets
• Consider inflation-linked bonds or floating rate exposure
• Maintain liquidity for 12-24 months of cash needs

i It Was the Worst of Times: Diversification During a Century of Drawdowns

ii A terrific environment for bonds | Vanguard Australia FAS

iii Drivers of the Australian Dollar Exchange Rate | Explainer | Education | RBA

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

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

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

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

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

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

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

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

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

The big picture

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

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

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

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

Economy

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

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

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

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

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

Property

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

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

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

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

Share markets

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

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

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

Commodities

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

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

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

Looking ahead

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

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

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

i Australian Dollar | Trading Economics

ii Home Value Index: Softer landing after strong 2025

iii Home Value Index: Softer landing after strong 2025

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

Designing the future, you want

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

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

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

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

Reflecting on the past

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

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

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

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

Building the framework

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

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

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

Law 1 – Make it obvious

Law 2 – Make it attractive

Law 3 – Make it easy

Law 4 – Make it satisfying

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

Implement and execute

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

Law 1: Make it obvious

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

Law 2: Make it attractive

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

Law 3: Make it easy

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

LAW 4: Make it satisfying

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

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

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

Set yourself up for kicking goals

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

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

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

The silent partner in your wealth plan

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

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

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

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

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

Safeguarding your family

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

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

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

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

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

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

Protecting your business

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

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

Risks can also be personal.

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

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

Car, home and contents

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

Reviewing your cover

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

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

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

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

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

i Income protection insurance – Moneysmart.gov.au

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

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

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

The Gut-Brain Connection in Kids

Did you know your child has two brains?

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

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

The Food-Mood Connection in Kids

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

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

Here’s how food influences mental health in children:

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

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

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

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

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

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

The Microbiome-Mind Connection

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

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

So what can parents do? 

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

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

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

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

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

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

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

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

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

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

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

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

The big picture

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

The US President’s often surprising policy twists and turns, particularly a punishing new tariff regime, saw markets falter and exporters of goods and services to the US plunged into uncertainty. As one commentator put it: “Over the past 12 months, the US has seen every norm of economic policy – trade policy, fiscal policy, monetary policy – blithely tossed aside.”ⁱ

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

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

Economy

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

The Consumer Price Index eased slightly in November 2025, while figures released in early January 2026 showed an annual rate of 3.4 per cent, down 0.4 per cent on the previous month. The RBA’s flexible inflation target aims to keep the cost of living increases between two and three per cent.

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

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

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

Property

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

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

However, values softened in December, recording the smallest monthly increase in five months, and some suggest the risk of further rate rises this year may keep prices in check.

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

Share markets

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

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

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

Commodities

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

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

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

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

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

Looking ahead

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

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

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

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

i Investors Are Flying Blind Into Policy Uncertainty | Bloomberg

ii Australian Dollar | Trading Economics

iii Home Value Index: Softer landing after strong 2025

iv Home Value Index: Softer landing after strong 2025

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

vi Silver Price History United States 2025: USD Silver Prices

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

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

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

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

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

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

How generosity can be part of your financial plan

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

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

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

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

Why planned giving matters

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

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

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

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

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

Structured giving options for lasting impact

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

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

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

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

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

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

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

i World Giving Index | CAF

ii Bequest Report | JBWere

iii Inquiry Report – Future Foundations for giving | Productivity Commission

Your money, your priorities

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

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

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

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

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

Adding value

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

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

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

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

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

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

Taking the first step

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

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

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

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

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

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

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

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

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

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

Celebrating with heart – not habit

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

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

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

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

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

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

Reducing stress, reclaiming joy

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

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

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

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

Rethinking what celebration looks like

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

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

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

Making meaning in your own way

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

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

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

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

The season is yours to shape

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

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

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

Whatever this season means to you…

We hope it brings you joy.