Borrowing After 50

Borrowing after 50 remains possible but lenders apply stricter rules. The key change is the need for a documented exit strategy beyond employment income. Serviceability buffers and income assumptions become more conservative as retirement approaches. Preparation and clear evidence improve approval outcomes.

The Two‑Person Retirement

Retirement is rarely experienced as one shared financial journey. Couples often retire at different times and face different health paths. Spending patterns shift as needs and priorities diverge over time. Planning for two separate experiences creates a more resilient outcome.

Granny Flat Arrangements

Granny flat arrangements often mix family intentions with complex legal and Centrelink rules. Transferring assets for a lifetime right to live somewhere can trigger gifting issues. The structure used can affect pensions, tax outcomes, and future aged care eligibility. A clear written agreement is essential to protect all parties.

 

Q & A

1. What does an exit strategy mean when borrowing after 50?

It shows how the loan will be repaid once employment income reduces in retirement.

2. Is there still a tax issue with granny flat agreements?

No, but the CGT concession only applies if strict conditions are met and the agreement is formal.

3. How does the Age Pension change when one partner enters care?

Both partners can receive the higher single rate under illness‑separated rules.

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When the Loan Becomes a Gift

Family loans often fail because they rely on trust rather than documentation. Without a written agreement, courts and third parties may treat advances as gifts. This can cause problems in family law, bankruptcy, and Centrelink assessments. A simple loan document protects both sides and clarifies intent.

The Home You’re Sitting On

Many retirees hold most of their wealth in the family home. Reverse mortgages and the government’s Home Equity Access Scheme allow access without selling. HEAS offers lower interest and pension‑friendly treatment for modest income needs. Commercial products suit larger capital requirements but cost more over time.

Working Past 65

More Australians now work past Age Pension age, and the rules have changed. The work bonus, SAPTO, and super contribution changes improve outcomes for older workers. Super can still grow while a pension is paid. Understanding how tax, super, and Centrelink interact avoids costly mistakes.

 

Q & A

1. Is there a government reverse mortgage?

Yes, HEAS offers lower interest and pension‑friendly income options.

2. Do family loans really need written agreements?

Yes, documentation protects outcomes in court, bankruptcy, and Centrelink reviews.

3. How does SAPTO affect tax after 65?

It raises the effective tax‑free threshold for eligible seniors.

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When the Will Doesn’t Do What You Think It Does

Many people assume their will controls all assets, but that is rarely true. Super, jointly owned property, insurance, and trusts pass outside the will. These assets follow their own rules and nominations. Estate planning works best when all documents align.

EOFY Without the Last‑Minute Scramble

EOFY planning often focuses on super, but other decisions matter just as much. Capital gains, losses, deductions, and timing choices can reduce tax. Many of these actions remain possible weeks before 30 June. Planning early avoids rushed decisions and missed opportunities. 

Investment Bonds: The Quietly Useful Structure Most People Don’t Know

Investment bonds offer tax‑paid growth outside super. Earnings are taxed internally at 30 per cent and can become tax‑free after ten years. They suit high‑income earners, education savings, and those capped on super. They work best as part of a broader strategy.

 

Q & A

1. Does it matter how we own our home together?

Yes, joint tenancy bypasses the will while tenants in common does not.

2. How do prepaid expenses bring forward tax deductions?

Paying eligible costs before 30 June can shift deductions into this year.

3. What are investment bonds used for?

They offer tax‑paid growth for long‑term saving outside super.

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The Debt Nobody Talks About: HECS, HELP, and the Hidden Drag on Household Finances

Recent reforms have significantly changed how HELP debt works for Australian households. Balances were cut by 20 per cent, repayments shifted to a marginal system, and indexation is now capped. These changes free up meaningful cash flow during key earning years. Deciding how to use that cash flow now matters more than whether to repay HELP faster.

When One of You Dies: What Surviving Spouses Actually Have to Deal With

The months after a partner’s death involve complex financial and administrative decisions. Superannuation death benefits, Centrelink changes, and estate processes all require timely action. Many choices carry long‑term tax and income consequences. Planning these issues while both partners are alive reduces stress and costly mistakes later.

The Insurance Inside Your Super: What You’re Paying For and Whether It’s Enough

Most Australians hold insurance through super without fully understanding it. Default cover is convenient but rarely tailored to actual household needs. Policy rules can cancel cover quietly during career breaks or low balances. Regular reviews help ensure cover exists and works when it matters most.

 

Q & A

1. Why does tax increase so much after a spouse dies?

Income and assets shift to one person who loses access to couple tax thresholds and offsets.

2. Does super insurance continue during parental leave?

Cover can cancel after 16 months without contributions unless you actively opt in.

3. Should I still repay HELP voluntarily after the reforms?

Often no, unless clearing it improves borrowing capacity or meets a specific goal.

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Protecting Your Parents’ Money, and Your Own

Financial elder abuse often begins inside trusted family relationships, not with strangers or scams. It can involve pressure to lend money, act as guarantor, or hand over financial control. Many cases go unreported because older Australians fear conflict or shame. Clear boundaries, strong powers of attorney, and adviser oversight reduce the risk.

Why Fuel Costs What It Does and What It Means for Your Money

Record fuel prices reflect refined fuel shortages, not just higher oil prices. Australia relies heavily on imported refined fuel, which magnifies global disruptions. Higher fuel costs flow into groceries, transport, and inflation. This pressure increases interest rates and squeezes household budgets.

The 1 July Reset and What It Means for Your Household

Several tax and super changes take effect from 1 July 2026. These include payday super, higher contribution caps, parental leave super, and a new tax on large balances. Each change is modest on its own but meaningful together. Understanding how they interact creates planning opportunities.

 

Q & A

1. What does payday super mean for employees?

Super must be paid with wages, so contributions arrive faster and compound sooner.

2. What does financial elder abuse usually look like?

It often involves pressure from trusted family members rather than outright theft.

3. How should households handle rising fuel and interest costs?

Maintaining cash buffers and reviewing spending helps absorb short‑term pressure.

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 The US/Israel conflict with Iran is creating turbulence across global markets, with oil supply risks driving sharp price swings and dampening investor sentiment.

 

 

Please see the full article for more of Shane Oliver’s thoughts and further detail.

You can download and print the full article here.

Important note: While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided.  

Choppy Waters and Short Supply: What Australia’s Housing Crunch Means for Everyday Borrowers

Australia’s housing market faces structural challenges, with supply constrained by labour shortages, zoning delays, and infrastructure bottlenecks. Risky loan structures, such as 40-year terms and extended interest-only periods, are amplifying household vulnerability. Borrowers tempted by incentives or low repayments may underestimate long-term costs and exposure to rate rises. Practical resilience strategies include conservative borrowing limits, shorter loan terms, and diversifying beyond property to maintain financial stability.

From Money Printing to Rate Rises: What Broad Money Growth Means for Savers and Borrowers

Broad money growth plays a critical role in shaping inflation and interest rates, influencing household budgets and borrowing costs. The surge in money supply during 2020–21 helped fuel inflation, while recent stagnation explains its decline. If money growth accelerates again, inflation may remain stubborn, keeping interest rates higher for longer and eroding real returns for savers. Households should stress-test finances for higher rates, maintain buffers, and diversify investments to protect purchasing power.

Taming the Australian Share Market: Equal Weights, Factors and Discipline for Everyday Investors

The Australian share market is heavily concentrated in banks and miners, creating hidden risks for index investors. Strategies like equal-weighting and factor investing can improve diversification by spreading exposure across sectors and tilting towards value or smaller companies. These approaches are not about chasing trends but about maintaining balance and discipline over time. Regular rebalancing and a clear portfolio structure help investors stay on track without relying on market predictions.

 

Q & A

1. Salary sacrifice vs personal deductible contributions – what’s better?
   Both offer similar tax benefits; the choice depends on flexibility and timing preferences.
2. Do I still need personal insurance after paying off debts?
   Review existing cover to ensure it aligns with current income, loans, and family needs before adding new policies.
3. Is a will enough for estate planning?
   No – super, insurance, and beneficiary nominations require a broader plan to avoid delays and disputes.

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What to expect from the Australian property market in 2025

Residential real estate in Australia has shown resilience, recovering strongly since early 2023 despite recent minor price declines. The market is expected to experience a year of two halves in 2025, with a slower first half followed by increased activity as interest rates fall. Persistent high interest rates, affordability issues, and a housing supply-demand imbalance will continue to challenge the market. Strong immigration and demographic shifts will drive demand, particularly in urban centres like Sydney, Melbourne, and Brisbane.

 

An investor’s guide to potential U.S. policy changes in 2025   

U.S. policies are set for significant changes in 2025 under full Republican control, impacting economic growth, inflation, corporate earnings, and interest rates. Key areas to watch include tariffs, immigration, taxes, and deregulation, with mixed effects on economic growth and inflation. Corporate earnings are expected to benefit from tax cuts, while higher long-term interest rates are anticipated. Immigration restrictions may slow potential economic growth, but deregulation could support increased business activity, particularly in the financial and energy sectors.

 

Howard Marks warns of market froth  

Howard Marks highlights the potential for a market bubble, emphasizing the psychological elements of investor behaviour and the overvaluation of certain stocks. He points out the dominance of the “Magnificent Seven” stocks and their significant impact on market indices. Marks also discusses the historical difficulty of maintaining top market positions and the risks associated with high valuations. While he acknowledges current market exuberance, he stops short of declaring it a full-blown bubble, suggesting caution moving forward.

 

Q & A

1. I’ve heard that when my children inherit my superannuation, they will have to pay tax on it. Is this true, and how does it work?
2. I saw on the news that most markets are currently at all-time highs. Should I consider moving my superannuation into the “cash” option to avoid potential losses, and then reinvest once the market drops?
3. My mother is 85 years-old and we are looking to move her into aged care. I’m worried about how we are going to fund it. What are our payment options?

If you would care to share your experience with me, please comment below!