Most Australians assume certain financial rules are simple, but in reality, what Australians get wrong about homes, health, and income can lead to costly mistakes later in life.

The Main Residence Exemption

Most Australians assume their home is always exempt from capital gains tax, but the rules are more complex. Income use, absence, or estate transfer can reduce the exemption. The law applies proportionally based on time and usage. Understanding these rules helps avoid unexpected tax outcomes.

Private Health Insurance After 60

The decision to keep private health insurance becomes more nuanced after retirement. The Medicare surcharge often falls away, but rebates increase with age. The real question is access to elective procedures and waiting times. Policy structure and actual coverage matter more than headline premiums.

Franking Credits

Franking credits reduce or refund tax already paid on company profits. They provide modest benefits to working investors but can generate cash refunds in retirement. This makes them a valuable income source in pension phase super. Overreliance can create concentration and structural risks.

 

Q & A

1. Is private health insurance still worth it in retirement?

It depends on access to elective surgery, not just cost or tax benefits.

2. Does the six year rule fully remove capital gains tax?

No, it only protects part of the ownership period if exceeded.

3. Why is there a two year deadline on inherited property?

Selling within two years can preserve a full capital gains tax exemption.

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

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.

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

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.

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

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.

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

Retirement Income That Lasts: The Considerations That Matter Most

A strong retirement income plan balances reliability, inflation protection, and flexibility. The Age Pension often forms the base, supported by super and other assets. Growth assets help protect purchasing power over long retirements. Flexibility allows retirees to adapt spending as markets, health, and needs change.

Aged Care at Home: What It Costs and How to Plan for It

Most Australians want to age at home, but doing so requires planning and realistic cost assumptions. The new Support at Home system replaced Home Care Packages and uses eight funding classifications. Government funding covers much of the cost, but most people contribute based on their means. Planning early reduces stress and improves control when care needs increase.

Tax Planning Before 30 June: Strategies Beyond Super

EOFY (End of Financial Year) tax planning extends well beyond superannuation contributions. Timing asset sales, harvesting capital losses, and managing income can reduce tax. Prepaying legitimate expenses may bring deductions forward into this year. These strategies work best when aligned with your broader financial plan.

 

Q & A

1. How does prepaying expenses before 30 June work?

You may claim prepaid deductions this year if the service period meets the 12‑month rule.

2. What are the minimum pension drawdown rules?

You must withdraw a set percentage each year based on age to keep pension tax benefits.

3. What changed under the new Support at Home system?

It introduced eight funding levels and shared contributions based on financial circumstances.

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

 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.

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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.