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If the government cuts the current 50% CGT discount to 33% or even 25%, investors, ETF holders and even crypto investors are likely to be hit too.

This changes the equation for millions of Australians because, unlike property, the sharemarket is often the only realistic entry point for younger Australians trying to build wealth.

Many cannot afford investment properties, so they turn to shares, ETFs and long-term investing to get ahead outside of wages alone.

Now that path may become far less attractive.

Australians already take risks by investing their capital and bearing the losses when markets fall. Yet when they finally make a profit, the government now wants a larger cut of the reward.

The irony of this is hard to ignore.

Years of excessive government spending helped fuel inflation, which pushed interest rates higher and crushed household budgets.

Now, after Australians have already been squeezed by rising living costs, the proposed solution appears to be taxing investment gains even harder.

So, what does the change to CGT mean for investors? If the reward for holding long-term keeps shrinking, Australians may start questioning why they should sit through major downturns just to receive less favourable tax outcomes at the end of it.

The traditional buy-and-hold no matter what approach may become harder to justify.

Instead, this could push more investors toward becoming active risk managers rather than passive holders.

Protecting capital during major market downturns, taking profits when markets become overheated and managing tax outcomes more strategically may become increasingly important.

Because once investing becomes less rewarding, people do not just make fewer trades; they start changing the entire way they invest.

Whether you are young or nearing retirement, Australians who have never thought about actively managing their investments may soon be forced to learn because in this environment, simply holding and hoping may no longer be enough to maximise long-term returns.

What are the best and worst-performing sectors this week?

The best-performing sectors include Materials, up more than 4%, followed by Financials, up more than 2% and Industrials, up more than 1%.

The worst-performing sectors include Energy, down more than 6%, followed by Consumer Staples and Utilities, both down more than 2%.

The best-performing stocks in the ASX top 100 include Capricorn Metals, up more than 15%, followed by IGO Limited and Greatland Resources, both up more than 9%.

The worst-performing stocks include Light & Wonder Inc, down more than 10%, followed by A2 Milk, down more than 9% and Woodside Energy, down more than 7%.

What's next for the Australian stock market?

The All Ordinaries Index bounced back strongly this week with a solid gain of more than 1.5% by Thursday's close.

More importantly, the index once again found support around the 8900 level and refused to trade lower, which is a reassuring sign for the broader trend.

The week actually started off subdued, but momentum built significantly in the latter half as oil prices eased and renewed hopes of a ceasefire in the Middle East lifted investor sentiment.

This is exactly why I have continued to view this pullback as more of a manufactured crisis rather than a fundamentally broken market.

The headlines have certainly created fear, but underneath it all, many Australian companies remain in strong financial shape.

What is also helping our market is the continued strength in commodities, which is providing a much-needed tailwind for the Australian economy and the sharemarket alike.

That was reflected again this week, with the Materials sector leading the charge, while Energy pulled back sharply as oil prices cooled.

Once again, the market now turns its attention toward the key 9200 level.

This has become the major battleground for the All Ords, but there is an interesting characteristic about markets worth remembering, and that is the more times price tests a resistance level, the more likely it is to eventually break through it.

Each test tends to weaken the sellers sitting there, and if momentum continues to build, the market may finally have enough strength to push through.

One thing to be mindful of, however, is seasonality.

May has already significantly outperformed its historical average, and June is typically a softer month for our market, which could slow things down a little.

Right now, this feels like a catch-up rally after the sharp sell-off earlier in the year.

The broader picture remains constructive.

The market appears to be recovering, and this could very well be the turning point many investors have been waiting for, assuming, of course, we do not see a major escalation overseas.

I would also keep a close eye on China, because any stabilisation or recovery there could become another important driver for our miners and resource sector moving forward.

After the volatility we have had this year, it is worth appreciating the small wins.

The market is holding up far better than many expected, and that says quite a lot about its resilience.

Rate hikes return, so is it time to switch lenders?

Three consecutive rate hikes have wiped out 2025's rate cuts.

But homeowners don't have to just bear the extra cost.

Yes, you may be able to haggle with your lender for a rate discount.

But for a lower rate rate, it can pay to think about refinancing - especially if you look beyond the big banks.

At the time of writing, some of the best rates across the four major banks include:

• 5.84% - CommBank Digi Home Loan 5.84%
• 5.74% - Westpac online offer - Flexi First Option home loan
• 6.19% - NAB Basic variable rate
• 6.14% - ANZ Simplicity PLUS

If you're prepared to look further afield, you could get rates as low as:

• 5.59% - Pacific Mortgage Group
• 5.59% - Virgin Lite Home Loan
• 5.69% - Greater Bank
• 5.74% Reduce Home Loans

Some of these lenders, such as Reduce Home Loans, also offer a cashback sweetener for refinancers.

Property research group Cotality says that there is potential for further rate hikes ahead.

It could make now the time to see how your home loan rate shapes up.

Mother's Day spending jumps, even with cost pressures rising

Tomorrow, May 10, is Mother's Day, and despite rising living costs (and higher interest rates), Aussie mums look set to be spoiled.

ANZ Bank reveals customer spending remains resilient year-on-year.

In 2025, for example, ANZ customers spent $592 million nationally over the Mother's Day weekend, an increase of 6.6% on 2024.

Dining out proved the most popular way to celebrate, with spending also rising on travel for mums (up 15%), watches and jewellery (up 11.9%), and florists (up 7.81%).

ANZ's managing director of data and analytics, Joanna Gurry, says the data underscores Australians' enduring commitment to celebrating mums.

"Aussies love to spoil mum. Mother's Day remains a key moment on the retail calendar, with customers showing their appreciation through both traditional gifts and shared experiences."

ATO cracks down on dodgy tax tips ahead of June 30

As the clock ticks towards June 30, the Australian Taxation Office (ATO) is warning Australians to be wary of incorrect or misleading information, particularly claims promising greater refunds, shortcuts or hacks.

The ATO reports a rise in tax-related content and 'tips' being shared online.

ATO Assistant Commissioner, Anita Challen, says Australians should "think twice" before acting on information from artificial intelligence (AI) platforms, 'finfluencers', and even family or friends.

"In an environment where misinformation can spread within minutes, it's important to pause and check your tax information before you act on it," says Challen.

"Dodgy tax advice doesn't just mislead - it can also lead to significant penalties."

This tax time, the ATO will focus on areas where taxpayers are likely to make errors including work-related deductions and expenses, and omitted income.

"We understand apportioning expenses can be tricky," says Challen. "But don't fall into the trap of thinking if you intentionally claim a little more than you are entitled to, it'll fly under the radar and that the ATO won't notice."

The ATO is also reminding taxpayers to declare all sources of income including side-hustles, cash jobs, interest and rental income.

Savings hit record highs, but are you missing better rates?

Aussies are thumbing their nose at higher living costs by saving more - not less.

The latest figures from bank regulator - the Australian Prudential Regulation Authority (APRA), show Aussie households have amassed $1729 trillion in savings, up from $1682 trillion in December 2025.

Trouble is, we may not always stash cash in accounts that pay the highest return.

CommBank dominates the savings account market, with around $447,808 million of household savings.

But smaller banks can offer very compelling rates on spare cash.

As at early May, Rabobank is offering a 5.65% bonus rate.

Ubank is paying 5.60%.

ING is paying 5.65%.

These rates can come with strict terms and conditions to earn bonus interest. And some may be introductory offers. But now is the time to shop around and make your money work harder.

Banks on standby to support Aussies facing financial pressure

Over 80% of home loan borrowers are still ahead on their loan repayments and household deposits remain at record levels.

That said, Financial Counselling Australia (FCA) says the May rate hike will intensify financial pressure on households with mortgages who are already struggling.

However, homeowners don't have to suffer in silence.

The Australian Banking Association (ABA) is urging home owners with a mortgage to get in touch with their bank if they need support.

ABA CEO Simon Birmingham says, "Australian banks recognise that this week's interest rate rise will be difficult news for many households.

"You don't have to tough it out on your own - get in touch with your bank."

Depending on individual circumstances, assistance may include:

• Moving to interest-only payments for a period.
• Deferring payments temporarily.
• Restructuring the length of a loan to lower monthly repayments, and
• Providing flexible access to savings and term deposit products to support short-term cash flow needs.

The key is to act fast - certainly before you miss a repayment, which can leave a black mark on your credit record, potentially making it harder to refinance to a lower rate.

Generation Development Group (GDG) is positioning itself as a key player in Australia's wealth and retirement landscape.

Formerly known as Austock, GDG has expanded into a diversified financial platform across investment bonds, managed accounts and retirement longevity solutions.

Changing legislative and demographic trends are reshaping the advice landscape, opening opportunities for providers with innovative solutions.

Why investment bonds are quietly making a comeback

The constant tinkering with superannuation, including the recent Division 296 superannuation tax change, is prompting a reassessment of tax-effective wealth management strategies.

Within this context, investment bonds are undergoing a quiet renaissance, increasingly recognised as a tax-effective savings vehicle with flexibility for estate planning and intergenerational wealth transfer.

Are tax changes reshaping wealth strategies?

In our view the market growth opportunity appears to be significant as investment bonds move into the mainstream.

Industry estimates suggest more than $180 billion could flow out of the superannuation system in the coming years as a result of Division 296 tax changes.

Even a low-single digit re-allocation to investment bonds could represent a material uplift for a market that is estimated to be between $10-15 billion today.

This is before considering the several billion dollars contributed via non-concessional super contributions each year.

What the $180 billion super shift could unlock

Momentum is already building, with GDG recording accelerating gross inflows, up 58% over the last 12 months.

Potential changes to CGT discounts and negative gearing, if enacted, may further enhance the relative appeal of investment bonds.

What's driving 58% inflow growth right now?

Managed accounts are becoming a core mechanism for delivering wealth advice.

Recent estimates from Barrenjoey suggest managed accounts make up approximately 15% of total assets under advice in Australia, which is significantly below more mature markets, such as the UK, which may provide a runway for ongoing growth.

Why advisers are moving to managed accounts

GDG has established itself as one of the leading providers in managed accounts following the acquisition and integration of Evidentia and Lonsec Investment Management, with ~11% market share of a $256 billion sector by the end of 2025.

Inside the $256 billion market most investors overlook

The combination of two leading brands creates a scaled proposition to licensees and advisers across customised and ready-made solutions.

In a competitive market, leadership provides the scale to reinvest in product development, practice management, adviser engagement and data analytics.

While growth is unlikely to be linear, as the timing of flows can be lumpy, the current pipeline of opportunities provides support for a positive outlook over the short to medium term.

How GDG built an 11% share in a fast-growing sector

Tailwinds across GDG's product verticals continue to strengthen.

Over the medium term, we estimate that FUM growth could compound at 20-25% across investment bonds and managed accounts.

Could retirement products be the next big opportunity?

Retirement longevity solutions also remain a long-term opportunity.

The strategic partnership with BlackRock to develop new products has the potential to become a new growth driver, which we believe has little to no value ascribed to this opportunity yet.

For a capital-light business with strong unit economics, durable earnings growth and a highly motivated management team, we believe GDG can sustain multiple years of strong earnings growth.

On an FY27 P/E multiple of 25x, we believe the valuation has become more attractive relative to consensus EPS growth expectations of 23% over the next three years.

ESG isn't disappearing. It's adapting.

If you spend enough time in the responsible/ethical/sustainable investing world, you'll live through periods of strong inflows followed by moments of hesitation as investors lean in or pull back from investing in various shades of green.

During my time as a reporter and editor at FS Sustainability, I saw several of these cycles play out.

They were driven by shifts in policy, global crises like the GFC and COVID, domestic tragedies like the Black Summer bushfires of 2019-2020, alongside the maturation of the industry as it grappled with greenwashing and accountability.

ESG investing cycles are nothing new

Now in my current role as stewardship manager at U Ethical, the question I'm often asked is whether rising cost-of-living pressures and geopolitical volatility, most recently highlighted by the closure of the Strait of Hormuz, will cause investors to turn away from ESG.

As always when it comes to ethical/responsible/sustainable investing, the answer is a hearty "it depends."

According to Morningstar's Global Sustainable Fund Flows - Q4 2025 report, Australia and New Zealand sustainable funds saw inflows of US$400 million in net inflows during that quarter, noting "this continued the momentum from the third quarter's roughly US$ 330 million, bringing total net inflows for 2025 to around US$ 730 million".

ESG fund flows are shifting, not falling

However, those flows weren't evenly distributed.

Passive sustainable funds attracted US$660 million, while active strategies experienced outflows of US$260 million, with investors also showing a preference for fixed income. In other words, capital is rotating but not retreating.

Investors are recalibrating how they express their values alongside their investment objectives.

Fascinatingly, Australian consumers are connecting the dots between volatility in global oil markets, increased cost of energy and fuel and the possibility of managing this risk and are doubling down on rooftop solar backed with batteries.

Last year, the federal government introduced the Cheaper Home Batteries Program, which offers significant discounts for the upfront cost of installing small-scale solar battery systems in households.

The same dynamic is playing out across markets: money is moving, not leaving.

Households are already shifting their behaviour

The program proved so popular that in less than one year, Australia's residential battery capacity doubled and more than a quarter of a million units were installed across the country, according to the ABC.

This is a tangible example of values and economics aligning: investing in renewable infrastructure is not just an environmental decision, but a financial one.

Meanwhile, 2026 is the first full year where large entities like the big end of the ASX and financial institutions will report against mandatory climate-related financial accounting standards, meaning that taking climate into account when assessing risks and opportunities is no longer a nice to have, but the baseline.

ESG investing now extends beyond climate

Of course, the energy transition is only one dimension of ESG. Investors continue to engage across the full spectrum of environmental, social and governance issues.

At U Ethical, our philosophy remains unchanged.

We assess ESG factors as both risks and opportunities, focusing on those that are financially material to each company, and prioritising engagement where we can have the greatest impact consistent with our broader ethical framework.

Importantly, conversations with investors, advisers and researchers suggest that values-led considerations remain front of mind.

We are regularly asked about the implications of AI for valuations and inequality as well as impacts on hiring and the future workforce, biodiversity and nature-related risks, and modern slavery within global supply chains.

Demand for ESG is evolving, not disappearing

So while financial returns remain paramount-as they should be-demand for responsible and ethical investing has not disappeared. It has evolved.

Or, to borrow from Talking Heads: "the same as it ever was, the same as it ever was."

The supermarket's middle aisle might usually be a mix of impulse buys, from power tools to slippers, but once a year it turns into something closer to a budget ski shop.

And for plenty of Australians, it's worth lining up early to get in.

That's because the value is hard to ignore. Aldi says nothing in its 50-piece snow range is priced above $100, and some items cost less than $5.

In practical terms, you can kit out an adult for around $255, or get a child fully geared for about $187.

But there's a catch. Stock is limited, sizes can be patchy, and some items are gone within hours. So if you want to land a bargain, timing and strategy matter just as much as price.

Here's what to know before you go.

Prices are far below big brands

This is the main reason the sale has built a loyal following. Jackets, pants and thermals cost a fraction of what you would pay at a dedicated ski retailer.

For casual skiers, or anyone trying the sport for the first time, the ability to spend a few hundred dollars instead of well over $1000 is a big draw.

It lowers the barrier to entry and makes a snow trip far more accessible.

You can build a full outfit in one shop

The range is designed to cover the essentials. You will find jackets, snow pants, thermals, gloves, goggles and socks in one place.

For someone heading to the snow once or twice a year, that is usually enough. You do not need to overthink technical specs, and you can get everything sorted in a single visit.

More experienced skiers may find the range limited, especially if they are chasing specific features or premium materials.

But for most people, this is about practicality and value, not extreme performance.

The quality is better than you might expect

Aldi's snow gear has improved its reputation over time, and the numbers back that up.

Jackets and pants are typically rated to 12,000mm waterproofing and 10,000g breathability.

In simple terms, that sits in the mid-range. It is suitable for general snow conditions and moderate activity, keeping you warm and dry on standard resort days.

If you expect heavy snow, rain or more demanding conditions, you may need higher-spec gear. But for the average holiday, Aldi's offering is considered solid for the price.

The trade-off is consistency. Because it is a seasonal range, sizing can be hit or miss, and once stock sells out, it is not restocked.

The sale date matters more than you think

This is not a sale you can leave until the weekend after launch. Popular sizes and key items can disappear quickly, sometimes within hours.

That is why seasoned shoppers plan ahead, know what they want and arrive early on launch day. Turning up late or browsing casually can mean missing out entirely.

It is also easy to get distracted in-store, but this is one time it pays to stay focused and shop with intent.

There is a new way to buy, but it is limited

For the first time, some Aldi special buys will be available through the DoorDash delivery app.

That means you can order some items from the comfort of your couch instead of joining the pre-opening queue.

But don't put the car keys away yet. Aldi says this is only available for a limited range of smaller items like gloves and socks.

There is a backup plan if you miss out

If you do not manage to get what you want on launch day, there is still a potential second chance.

The Aldi store in Cooma, near the Snowy Mountains, has historically received leftover snow gear later in the season. If you are travelling to the snow in July or August, it can be worth checking in.

It is not guaranteed, but for flexible shoppers, it is another way to pick up a deal after the initial rush.

Why shoppers keep coming back

Aldi's ski sale sits in a sweet spot. The gear is affordable, good enough for most conditions, and easy to buy in one go.

The trade-off is scarcity. Limited stock, unpredictable sizing and high demand mean not everyone gets what they want.

For some, that is part of the appeal. For others, it is the main frustration. Either way, if you are planning to rely on Aldi for your snow trip, it pays to go in with a plan.

Reader question

Hi Paul,

What is the best option to invest for our children's education?

In the past my folks had a specific education saving or investment set up for me and my brother.

This does not appear to be an option with the major providers that I can find.

So far we have looked at ETFs, bonds set up in each child's name so we can claim the tax benefits, and simply setting up an offset account on our mortgage, which saves us in interest but doesn't have a growth option like investing.

Are there better managed options we can investigate?

We are looking to start with $20,000, $10,000 per child, plus monthly contributions.

We are not anticipating redrawing for a minimum of five years when the eldest starts high school.

PS. Our financial adviser was not much help for this one.

Paul's response

Hmm, I'm not impressed with your adviser, Haydn.

Investing for children may not make an adviser much in the way of fees, but it is a wonderful conversation.

We're talking about setting children up with money for the future but, more importantly, starting a conversation about saving, investing, compound interest and overall financial literacy.

That is one of the best skills we can give kids and grandkids.

This is a personal view, but with our kids and now grandkids, we prefer to invest as trustees for them using low-cost ETFs.

Another option my wife and I like is listed funds, such as Future Generation Global or Future Generation Australia.

What I like about these two funds is that the board and managers work on a pro bono basis, and 1% pa of net assets is donated to youth mental health.

Maybe this is an opportunity to teach your kids about something that is a responsibility of those of us who have done okay with money, to help others.

Our government cannot do everything.

A final idea, and one where I am totally biased, is Fundlater, a product offered by InvestSMART. My bias is that I chair the company and own shares in it.

But I think it is a great idea.

We've done this for our four little granddaughters.

You invest $4000 into Fundlater, we chose the ethical option, and InvestSMART adds $6000. This is paid back in $300 monthly amounts over 20 months. There is no interest, but there is a monthly account fee.

Once the app showing the four accounts is up, and while the little ones are too young to be involved, I do enjoy showing our adult kids how the grandkids' money is doing.

Extra money can be added at any time, such as birthdays, or you can add another $4,000 and off you go again. Clever idea, I wish I had thought of it.

Sure, bonds are also a simple option.

The real point here is no matter which way you go, you are doing something, and this is the real issue.

My parents did this for me and my sister and the money helped hugely with starting my business when I was in my late 20s.

It was also a topic of conversation over the dinner table a few times a year and developed my interest in money, which became my career.

What to read next

• Ask Paul: How to invest for our grandchild in Australia?
• Why parents are turning to bonds for kids
• Can I set up a super fund for my kids?
• How to help your kids manage an after-school job
• Public v private: How to plan to afford school fees

Australia's generous electric vehicle tax break is being wound back, shifting from a full FBT exemption to a phased reduction that will reshape the economics of novated leases.

Currently, many EVs provided through salary packaging or novated leases can be completely exempt from FBT, which has been a major driver of uptake.

What is changing with EV FBT exemptions in Australia?

Under the proposed changes:

• From April 2027, the full exemption will be restricted, particularly for higher-priced vehicles
• Vehicles above around $75,000 will no longer receive the full exemption, instead moving to a partial (around 25%) FBT discount
• By April 2029, all eligible EVs will lose the full exemption and instead receive only a reduced FBT concession

Importantly, existing arrangements - particularly novated leases already in place - are expected to be grandfathered, meaning current users won't be retrospectively impacted.

Who loses the most from the FBT changes?

The biggest impact will be felt by:

• Employees using novated leases, where the FBT exemption has been a key financial advantage
• Higher-income earners, who have disproportionately benefited from the scheme to date
• Buyers of higher-value EVs, especially those above the $75,000 threshold

The reason this matters is that the FBT exemption has been worth thousands of dollars per year in tax savings under a novated lease. Removing or reducing that benefit will directly increase the after-tax cost of running an EV through salary packaging.

In practical terms, this could mean higher lease costs, reduced salary packaging benefits and a narrowing of the financial gap between EVs and traditional vehicles.

Should you buy or lease an EV before 2027?

Timing is becoming critical.

For Australians considering an EV, acting sooner rather than later may lock in the current, more generous tax treatment - particularly if entering into a novated lease before the rules change.

Waiting until after April 2027 could mean materially lower tax benefits, especially for mid-to-high priced vehicles

This creates a potential "pull-forward" effect, where demand increases in the short term as buyers try to secure the full exemption before it is scaled back.

However, it's also worth noting that EV purchase prices are gradually falling and running costs remain significantly lower than petrol vehicles.

So while tax benefits may reduce, the overall value proposition doesn't disappear.

Will EVs still be cheaper than petrol cars?

Even with the changes, EVs are still likely to remain relatively tax-effective, but the advantage will be less pronounced.

A 25% FBT concession is still meaningful compared to the full FBT liability that applies to petrol or diesel vehicles.

EV also continue to benefit from lower running and maintenance costs, which sit outside the tax system.

For many users, particularly high-kilometre drivers, the total cost of ownership may still favour EVs

That said, the changes do signal a shift from "highly tax-driven decision" to more of a balanced cost and lifestyle decision.

Are EV tax breaks being removed completely?

One of the biggest misconceptions is that the EV tax break is being completely removed - it's not. It's being scaled back, not scrapped entirely.

Other key points people may overlook:

1. Grandfathering matters

Many existing arrangements are likely to be protected, so current lease holders may not be affected at all.

2. Not all EVs will be treated equally

Higher-priced vehicles will lose access to the most generous concessions first, which is a deliberate policy shift toward more "affordable EVs."

3. The tax benefit was never the whole story

Some buyers have focused heavily on the FBT exemption without considering:

• Running costs
• Charging infrastructure
• Resale value

4. Behavioural risk

There's a risk that some people rush into a novated lease purely for tax reasons without fully understanding the long-term financial commitment.

Conclusion

The FBT changes mark a transition from very generous, early-adoption incentives to a more targeted and sustainable policy.

For taxpayers, there's still a window to access the current benefits but the decision should be based on overall economics, not just tax savings.

For the market, EVs are likely to remain attractive but less of the decision will hinge on tax - and more on cost, practicality and long-term value.

For many investors, the word stagflation sounds like something best left in an economics textbook.

It may conjure memories of the 1970s when oil shocks, stubborn inflation, weak growth generated a market environment that challenged the standard playbook.

Australia battled double-digit inflation throughout most of that decade.

This story sounds familiar.

The combination of sticky inflation, a softening US labour market and rising fiscal strain across developed economies is pushing that era back into view.

Add a conflict that threatens global energy supply chains and you have a set of conditions that should prompt every investor to ask a serious question: does my portfolio reflect the world as it is, or the world as it was?

Stagflation is an uncomfortable mix.

Inflation stays higher than expected, while economic growth slows and confidence weakens. It is challenging because the usual policy responses can work against each other.

Cutting rates to support growth can risk reigniting inflation. Keeping policy tight to tame prices can put more pressure on households, business activity and markets. For investors, that means there is less room for complacency.

What is stagflation and why does it matter now?

The era of low inflation, strong growth and abundant conviction is behind us, at least for now.

What is emerging instead is a far less comfortable regime, where inflation remains sticky, growth is uneven.

Stagflation appears as the base case, a Goldilocks scenario of low inflation and high growth is not on the cards, with the best case being an awkward middle in which growth is uneven and conviction is low.

Understanding how portfolios performed during the last major stagflationary period can help investors think more clearly about the risks today.

What assets perform best during stagflation?

1. Gold tends to earn its keep when confidence in the broader system starts to erode

Gold was the standout of the decade, rising from around US$35 per ounce at the start of the 1970s to over US$500 by 1980.

Gold has been in the news recently for good reason. In periods of sticky inflation, policy uncertainty and geopolitical tension, gold can behave differently to other commodities because it is also a currency and a store of value.

It has been one of the standout performers in the current cycle, supported by central bank buying, investor demand and a renewed focus on portfolio diversification. Gold, and the companies that mine it, can play an important role when confidence in traditional financial assets is being tested.

2. Real assets matter

In a world where inflation proves sticky, owning assets with some linkage to prices can make a difference.

Toll roads, pipelines, utilities and airports tend to carry revenues explicitly or implicitly linked to inflation - when prices rise, so too, over time, do their cash flows.

In the inflationary period that followed COVID, specifically in calendar year 2022, global listed infrastructure outperformed broader developed market equities.

The logic is unchanged: assets with genuine pricing power, long-dated cash flows and inelastic demand are exactly what you want to own when inflation erodes the real value of everything else.

3. 'Value' companies outperformed

This may surprise investors conditioned by fifteen years of growth dominance, but the logic holds.

When inflation is elevated and discount rates rise, the present value of distant future earnings falls sharply.

Growth stocks, priced on earnings many years out, are disproportionately exposed. Value stocks tend to earn their returns sooner and cluster in sectors, materials, energy, financials, that benefit from inflation rather than suffering under it.

Is today's stagflation different from the 1970s?

It's worth noting that today's inflation has different drivers: tariffs, geopolitical fragmentation and energy supply disruption rather than pure oil shock. Central banks have more established frameworks.

Technology has introduced genuine productivity tailwinds.

But the underlying portfolio logic remains sound.

In periods where inflation is sticky and growth is below trend, owning assets with real cash flows, pricing power and inflation linkage can prove powerful.

Investors can no longer rely on the assumptions that defined the most recent cycles.

Simply riding the benchmark is unlikely to be enough from here.

Over the past five years, benchmark indices in Australia and the US have been driven higher by a narrow group of mega-cap stocks, creating a level of concentration that leaves passive investors more exposed than they may realise.

The next wave of equity opportunities is likely to come from outside those mega-caps, and it will demand a different set of exposures than the last five years.

History may not repeat.

But for those paying attention, it tends to rhyme. And there are opportunities for those who see that.

While fewer marriages are ending, women who separate continue to face far greater financial insecurity, housing risk and social stigma than men.

According to the Australian Institute of Family Studies, Australia's divorce rate fell to 2.3 per 1,000 people in 2023, the lowest level since the mid-1970s.

Divorce and divorcees are accepted as a part of modern life, and Australians are marrying less and being more intentional with who they choose to marry.

Yet women continue to carry the burden of the social stigma associated with marriage breakdown. Just like the women of the generations before them, they are also the ones most likely to be financially bereft following a divorce.

Divorce has never been equal for women

From the 19th and early 20th centuries, exclusion was the name of the game for divorced women.

Shunned from social circles and left without financial support, women who were brave enough and determined enough to obtain a divorce frequently lost custody of their children and were left destitute, as few worked outside the home.

For most of the population, especially women, divorce was close to impossible to obtain.

Laws overwhelmingly favoured men, who could divorce their wives for adultery in Victorian England. Women, on the other hand, were required to provide proof of adultery plus another transgression such as cruelty, incest or desertion.

Things did not improve through the mid-20th century, when divorce was widely viewed as a ruinous event for women. In countries where it was permitted, divorced women were judged, shamed and left financially and socially vulnerable.

In the lead-up to the introduction of no-fault divorce in 1976, which also happened to be the year marriage dissolutions peaked, women were in a stronger position to support themselves.

Women were more prevalent in the workforce and able to own property, vote and achieve financial independence.

However, women were still not spared the stigma of divorce. Viewed with suspicion and even regarded as a threat to married women, divorced women were often depicted in popular culture as pitiable, lonely or desperate for remarriage.

Why modern divorce still hits women harder

Today, divorce is commonplace, yet women continue to disproportionately carry the stigma attached to relationship breakdown.

Common tropes persist, with women accused of taking half of everything or labelled callous "gold diggers" who deliberately keep children from their fathers.

AIFS data shows the reality is very different. The social and financial divorce penalty still bites women harder.

Following separation, women's standard of living falls significantly, with women and children far more likely than men to experience financial hardship after divorce. Repartnering remains a key pathway out of financial difficulty for many divorced women and their children.

Divorce and separation frequently lead to homelessness for women, particularly older women, who are now the fastest-growing cohort of homeless Australians.

Those who have spent time out of the workforce raising families are often left in a precarious position after a marriage breakdown.

At every stage of life, women are more likely to be financially disadvantaged after divorce. Against this backdrop, the low divorce rate of 2.3 per 1000 people must be viewed in its broader social and economic context.

Low divorce rates do not mean happier marriages

The stigma once attached to blended families, second marriages and de facto relationships has largely faded, and fewer Australians are getting married in the first place.

Women are more independent than ever and increasingly expect equality within their relationships. As elsewhere in the world, the average age of marriage has risen.

Globally, divorce rates have plateaued or declined, from the United States to Sweden and Denmark, once described as "divorce capitals".

But fewer divorces do not necessarily mean happier marriages.

Australia's housing affordability crisis, combined with inflation, stagnant wages and persistently high living costs, has placed a prohibitive price tag on separation.

Domestic, family and sexual violence further compounds this reality. Countless women remain in harmful, unsafe or unfulfilling relationships because they feel they have no viable alternative.

Separation is often the most dangerous period for a woman escaping violence, raising the stakes and reinforcing the sense that leaving is simply too risky.

The real financial cost women pay after separation

At face value, divorce can appear to be largely about legal fees.

In reality, an underfunded court system burdened by delays, combined with the housing crisis and cost-of-living pressures, discourages many couples from separating at all.

Because women are more likely to have interrupted careers due to caregiving, they tend to have lower superannuation balances, less career capital and fewer advancement opportunities.

After divorce, men are more likely to remain in full-time work, while women juggle part-time employment with ongoing childcare responsibilities.

The numbers are stark. Women's household incomes fall by up to 29% following divorce, compared with around 5% for men. Men are also far less likely to fall below the poverty line.

Divorce can still represent freedom for women escaping unsafe and harmful relationships, but the system extracts a heavy and gendered price.

As primary caregivers, many separated women lose income security, housing stability and retirement prospects. Too often, they and their children lack adequate support to recover from trauma.

As a society, we must recognise that falling divorce rates do not always equate to good news. Systemic barriers must be dismantled, and meaningful support provided to those who would otherwise escape unsafe relationships.

Until it is genuinely safe for women to leave, Australia's low divorce rate should be seen for what it is, a reflection of the inequality that continues to define divorce for women.

Even before the conflict we're seeing in the Middle East and the associated disruptions to oil supply and petrol prices, inflation was persistent and well above the RBA's target range of 2% to 3%.

Australians are feeling the impact of rising prices in their hip pockets, and this has more serious implications for retirees and others who rely on investments for income.

We're already seeing prices rise across many areas - not just fuel, and the Reserve Bank of Australia (RBA) is warning inflation could surge above 5.0% this year.

This has the potential to leave retirees considerably worse off, particularly if their income is fixed, and not responsive to inflation.

High inflation erodes the value of returns

Inflation is already sitting at 3.7%, which has fuelled recent rate hikes, and while it's easy to assume higher interest rates are a plus for retirees, this doesn't paint the full picture.

Inflation reduces 'real' (after-inflation) investment returns. Put simply, the income you receive buys less than it used to.

Think of it this way.

Right now, it may be possible to earn around 5.0% on bank deposits. This may sound attractive. However, when we allow for inflation of 3.7%, the 'real' return drops to 1.3%.

It doesn't end there.

The Association of Super Funds of Australia (ASFA) says retirees are facing "higher inflation than the general population" because they spend more on essentials that have risen fastest.

This can be a real problem for retirees whose income streams are not indexed to keep pace with rising prices.

Those on a pension are not immune. As ASFA notes, the age pension has failed to keep pace with the cost increases retirees face.

The upshot is that high inflation can leave retirees financially squeezed - even when interest rates are rising.

In response, retirees may feel they only have two options - cut back spending, or dip into precious capital to maintain their lifestyle.

But there is another alternative that is often underutilised by Australians retirees. The solution can lie with diversification into established, income-generating investments such as credit.

Credit - low volatility, a shield against inflation

Credit simply refers to lending; it can be public (from a bank) or private (from investors). It's an asset class that has grown significantly in recent years, and as an income-generating investment, it can play a valuable role for retirees, especially when inflation is high.

Mortgages are a common form of credit and, similar to bank loans, the majority of mortgages involve a floating-rate that adjusts in line with interest rates. This may provide investors into these mortgage funds (known as mortgage schemes in the past) better rate protection than, say, other fixed-rate investments.

In addition, mortgages can be a source of predictable income when well managed in a diversified portfolio.

Investments into a mortgage scheme are not government guaranteed and they are not bank deposits. However, the returns can be attractive.

Inflation-responsive returns

As a guide to returns, La Trobe Financial's 12 Month Investment Account, recognised by Money magazine as Australia's Best Private Credit Fund - Mortgages for 17 consecutive years has a consistent track record of performance across market cycles.*

It not only gives investors competitive, inflation-responsive returns underpinned by mortgage assets back by Australian property, but the 12 Month Investment Account is also designed to provide regular monthly income.

In this way, retirees can be confident the investment aims to support a healthy 'real' return, while still having a reliable income.

With a track record spanning 70 years, La Trobe Financial has navigated the full spectrum of economic conditions and unexpected market events. This, combined with disciplined management, is giving Australians planning for retirement or already enjoying it, the opportunity to live their best life, the reassurance of income that's outpacing inflation.

If you're seeking a durable, inflation-responsive income solutions, contact the La Trobe Financial team on 1800 818 818 or visit latrobefinancial.com.au and find out more.

La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 Australian Financial Services Licence No. 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321. It is important that you consider the Product Disclosure Statement (PDS) before deciding whether to invest or continue to invest in any of the funds. The PDSs and Target Market Determinations are available on La Trobe Financial's website.

*Past Performance is not a reliable indicator of future performance

Any Financial product advice is general only and has been prepared without considering your objectives, financial situation or needs. You should, before investing or continuing to invest in the La Trobe Australian Credit Fund, consider the appropriateness of the advice having regard to your objectives, financial situation or needs and consider the PDS for the fund.

When considering whether to invest or continue investing in the La Trobe Australian Credit Fund, you should be aware that (1) an investment in the fund is not a term deposit, and your investment is not covered by the Australian Government's deposit guarantee scheme. Investing in the fund has a higher level of risk compared to investing in a term deposit issued by a bank and (2) there are other risks associated with an investment in the fund. The key risks of investing in the fund are explained in section 9 of the PDS, available on our website.

On this week's Friends With Money podcast, managing editor Vanessa Walker speaks with ACCC deputy chair Catriona Lowe about the regulator's romance scam awareness campaign and why these crimes cause serious financial loss and long-lasting emotional harm.

Lowe explains that romance scams involve fake relationships designed to steal money and personal data. They often start on dating apps or social platforms before quickly moving to encrypted messaging services. She outlines two common scam models, fast investment pitches and long-running "slow burn" requests, and reveals Australians reported more than $28.6 million in losses to Scamwatch through 2025.

The episode also explores the ACCC's taskforce approach, a new online relationship health check tool, the incoming scams prevention framework for banks, telcos and digital platforms, the role of organised crime and trafficking, and how AI could help defeat reverse image searches.

00:30 What are romance scams?

02:42 How big the losses are

04:45 How scams move online

06:18 Industry crackdown tools

07:49 Scams prevention framework

11:13 Who runs these rings

13:47 AI and future scams

16:08 Who is most at risk

19:02 Warning signs and next steps

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Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

Where can I listen to the podcast?

You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

Is the podcast suitable for beginners?

Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.

What topics does the podcast cover?

The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.

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New episodes are released weekly, so you can stay up to date with the latest financial tips and trends.

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Yes, full episodes with closed captions are available on YouTube.

Why subscribe to the Friends With Money podcast?

Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

Subscribe to the Friends With Money podcast today and start learning when it suits you.

The official cash rate was increased by 25 basis points to 4.35% by the Reserve Bank of Australia's (RBA) Monetary Policy Board this afternoon - the third consecutive rate rise handed down by the Board.

The latest decision means that the three cuts passed on by the Board last year have now been reversed, with the cash rate back to its highest level since November 2011.

Like in March, the verdict wasn't quite unanimous though, with eight Board members voting in favour of the rate rise and one member voting to leave rates steady at 4.10%.

What pushed the RBA Board to lift rates?

As usual, the issue of inflation was at the heart of the decision.

Last week the Australian Bureau of Statistics released its latest Consumer Price Index (CPI) which revealed that the headline inflation rate had ticked up to 4.6% over the 12 months to March.

The rate of trimmed mean inflation - which strips out more volatile price movements like the recent surge in fuel prices - was flat though, coming in at 3.3%.

The crux of the matter though is that both rates remain above the RBA's 2-3% target inflation band - a fact the RBA Board stressed in its post-meeting statement.

"As expected, developments in the Middle East are having an impact on inflation. Higher fuel prices are adding to inflation and there are indications that this is likely to have second-round effects on prices for goods and services more broadly.

"This inflation impulse is in addition to the high inflation recorded around the start of 2026, reflecting capacity pressures in the economy.

"In light of these considerations, the Board assessed that inflation is likely to remain above target for some time and that the risks remain tilted to the upside, including to inflation expectations."

Mortgage holders brace for further pain

After rate rises in both February and March, homeowners with a mortgage will barely have had time to adjust to their new, higher mortgage repayments.

So now that the cash rate has been increased again, how much more will borrowers need to budget for? Assuming that lenders pass on the latest rise, that is.

On the average new loan amount for owner occupiers of $736,000 and a typical variable rate of 6.00%, a 25bp increase would add roughly $120 each month.

The reality for many borrowers is that there's left room left to move in their budgets though.

Research conducted by Finder before today's RBA meeting found that one in 10 mortgage holders (9%) wouldn't be able to afford their mortgage if they were hit with two rate rises.

More concerningly, 3% of the borrowers surveyed said that they would only be able to absorb one more rate rise before falling behind on their loan.

"Speak to your lender as soon as possible if you're struggling - there may be options available to help you stay on top of repayments," says Richard Whitten, money and home loans expert at Finder.

"Refinancing or negotiating a cheaper rate could make a meaningful difference to your monthly costs."

Looking forward, borrowers - and everyone else - won't have too long to wait until the next potential rate change.

That's because the Reserve Bank Monetary Policy Board will convene again for its next meeting in six weeks' time on June 15 and 16.

Money's 2026 Life Insurance Awards bring you the best policies, from best-value data-based awards to leaders in innovation, for peace of mind in today's uncertain world.

Money, together with its research partner Rainmaker Information, recognises the best offerings in the insurance sector at the annual Life Insurance Awards. Now in its second year, these awards are underpinned by independent research and form part of Money's long-established suite of industry awards.

Life Insurance Awards promote the value of life, total and permanent disability (TPD), trauma and income protection insurance by recognising products that offer strong risk-mitigation solutions across superannuation, adviser and direct sales channels.

Life insurance plays a critical role in protecting Australians financially when the unexpected happens. It provides reassurance that loved ones will be financially secure by helping settle debts and mortgages, and ensuring income replacement to protect a family's lifestyle and future goals when someone is no longer here.

How different types of cover protect Australian families

If a severe illness or injury leaves you unable to work again, TPD insurance is crucial. It provides a lump-sum payment that can be used for rehabilitation, high medical costs, debt reduction and everyday living expenses, helping safeguard a family's financial future.

Trauma insurance provides a tax-free lump sum when serious conditions such as cancer, stroke or heart attack are diagnosed. This payment can be used to cover significant out-of-pocket medical expenses, mortgage repayments or ongoing rehabilitation at a time when income may be disrupted.

Income protection insurance replaces up to 70% of pre-tax income if illness or injury prevents you from working. It works as a financial safety net, helping cover essential expenses such as mortgage payments, school fees and utilities during recovery.

What the data shows about how Australians buy insurance

According to the latest available APRA data, a total of 29.1 million insurance policies were issued as of June 2025. About 75% of those policies were issued through a superannuation fund, with 12% sold through advisers, 9% sold directly to consumers and 4% arising from ordinary group policies.

While insurance through super remains the most affordable and popular option, industry research highlights a significant under-insurance gap. Millions of Australians are not adequately protected, with the largest gap among people under 35 years.

To better engage this younger, more digital-first generation, insurers are investing heavily in flexible product design and technology, offering streamlined digital experiences and more personalised solutions that help consumers make informed decisions.

Why direct and advised insurance is becoming more important

With adviser numbers shrinking and group insurance through super often offering limited or default levels of cover, access to quality and affordable life insurance solutions is becoming increasingly important.

In particular, the continued improvement of the direct life insurance market is critical to ensure everyday Australians can access suitable cover without professional advice.

Recognising that no single sales channel meets all needs, Money awards overall winners across three channels, super, advised and direct.

How Money and Rainmaker chose the overall winners

The winners for Life Insurer of the Year - Advised and Life Insurer of the Year - Direct were determined by benchmarking financial strength, market performance, product features, premium rates and adviser service quality or online experience.

The overall winner for Life Insurer of the Year - Group was determined using a combination of financial strength, market performance, product features, premium rates, service quality and membership attrition.

How super fund insurance was assessed

To identify the best insurance options through super, Rainmaker analysed more than 10,000 death and TPD, and income protection offerings from public offer super funds.

Policies were ranked based on premium value across different risk types, occupations, ages, waiting periods and benefit payment periods. All awarded super funds held a AAA rating.

How best-value direct insurance was identified

For direct insurance, Rainmaker analysed more than 25 products offered by eight issuers across death, TPD, trauma and income protection cover.

Pricing was assessed across various age groups, occupation classes and benefit levels. Winners were determined by combining the lowest price with strong product features, reflecting the importance of value for money.

How advised products were benchmarked

In the advised category, Rainmaker benchmarked products from 10 life insurers, assessing financial strength, market performance, adviser service quality, product features and pricing.

Lower lapse rates, health and wellness initiatives and product sustainability were also recognised when selecting overall winners.

Millions of Australians have life insurance through their super fund. For most people, it is simply reassuring to know their family would be financially protected if the worst were to happen.

What many members rarely consider is who actually provides that cover behind the scenes, and why that matters when insurance is delivered at scale.

Life insurance in super, explained

Superannuation funds do not insure members directly. Instead, they rely on insurance companies to provide group life insurance, cover that automatically protects members unless they choose to opt out.

Group insurance operates on a scale unlike most other forms of insurance. Some of Australia's largest super funds have more than three million members, all insured under the same arrangements.

That creates a challenge for insurers, who must deliver meaningful cover and pay claims while collecting minimal personal health information from individual members.

Delivering protection at scale

Balancing affordability, accessibility and sustainability across millions of members is a juggling act for insurers.

It is one that TAL has clearly mastered, earning it recognition as Life Insurer of the Year - Group in the 2026 Money Life Insurance Awards.

Jenny Oliver, chief executive of group life and retirement at TAL, says insurance within super plays an essential role for Australians who may not otherwise be insured.

"Insurance in super plays a unique role in providing meaningful protection to Australians who simply wouldn't have that cover otherwise, and that responsibility drives everything we do."

Why TAL was recognised

According to Oliver, TAL's recognition reflects continued investment in both products and member experience.

"This recognition reflects the strength of our products and services, and our continued investment in next-generation digital and service capabilities, ensuring we can support our fund partners and their members as the protection needs of Australians evolve."

TAL has operated in Australia for more than 150 years and is one of the country's largest life insurers, providing cover to more than five million Australians.

Claims performance that matters to families

For super members and their families, insurance only becomes visible when a claim is made.

In the past financial year, TAL:

• Paid $4.7 billion in claims
• Supported 54,357 customers and beneficiaries

Claims performance was a key factor considered in the assessment of group life insurers, reflecting the importance of reliability and scale in super-based cover.

Investing beyond claims

Alongside claims payments, TAL runs initiatives designed to support healthier outcomes for Australians.

One example is its SpotChecker campaign, which encourages Australians to develop healthy skin habits that can reduce the risk of skin cancer.

How the Money Life Insurance Awards are judged

The Money Life Insurance Awards are independently researched by Rainmaker Information.

Life Insurer of the Year - Group

This award recognises insurers providing group life insurance through superannuation funds and is based on a combination of:

• Financial strength
• Market performance
• Product features
• Premium rates
• Service quality
• Membership attrition

This approach ensures the award reflects both member outcomes and long-term sustainability of cover.

Read more: How Money chooses its Life Insurance Awards winners

Why this award matters to super members

Most Australians never actively choose the insurer behind their super fund's life insurance. But that insurer plays a critical role in delivering protection to millions of families at scale.

Understanding who provides that cover, and how those insurers perform, offers insight into an often-overlooked part of Australia's super system.

Understand how tax impacts your returns

One of the biggest costs most investors face is tax. Now is the time to ask, "What are you left with after tax?"

Tax-efficient investments do exist. Investment bonds, for example, are 'tax paid'. The investment bond issuer, rather than the investor, pays tax on the underlying returns.

While tax is capped at 30%, issuers aim to enhance underlying tax efficiency.

If you make no withdrawals within the first 10 years, you don't need to provide details of the investment bond, or its returns, in your annual tax return.* After 10 years, any withdrawals you make are fully tax paid and free from personal tax.

Capital gains tax needs to be managed

Tax time can be a sharp reminder of the impact of capital gains tax (CGT).

This is another area where investment bonds can deliver worthwhile tax advantages. No personal CGT applies to withdrawals or switches between investment options within an investment bond.

An investment bond can also be transferred to anyone, including a partner, trust or adult child, without triggering a personal CGT event.

Don't overlook super, but beware of potential tax traps

For many Australians, concessional super contributions provide an incentive to contribute to super and grow their future retirement nest egg.

The maximum level of concessional contributions you can make is $30,000 for 2025-26, increasing to $32,500 for 2026-27. This amount includes your employer's compulsory superannuation guarantee contributions plus any salary sacrifice contributions.

However, there are important limitations to be aware of.

If your income and concessional super contributions exceed $250,000, Division 293 may apply. This results in an extra 15% tax on the lesser of your concessional contributions or the amount above the threshold. Planning ahead is essential.

For Australians affected by Division 293, or the new Division 296 tax on earnings on total super balances above $3 million, investment bonds are proving to be a popular, tax-friendly alternative.

More importantly, investment bonds should be viewed as working alongside your other savings options, not replacing them. Always speak to a financial adviser for personal advice ahead of tax time.

*Investment bonds are 'tax paid' if held for at least 10 years without any withdrawals, and where the 10-year period has not been reset.

In part two of our car buyer's guide, we focus on what happens after you've made your choice, when fees, finance decisions and fine print can change the real cost of ownership.

From dealer delivery charges and loan structures to warranties, safety tech and resale value, these are the details that can add thousands to the price if you don't know where to look.

How to buy smarter and pay less at the dealership

When car dealers are most willing to negotiate

The last few days of the month are when salespeople will be most eager to meet the manager's margins.

Shop at the end of a calendar year or the very start of a new one, as the holiday period is when things tend to slow down in terms of showroom foot traffic.

Other hot times of year, figuratively, for deals include the end of March, in particular if you're buying a Japanese car, or the regular end of financial year sales in June.

Go to more than one dealership

Be willing to shop around. You do it for a fridge, TV or even a quote for a new bathroom, so why not work some different angles by calling dealerships that might not necessarily be the closest to you.

If you live in Sydney, call dealerships in Bathurst, Newcastle, Wollongong, Canberra or further afield. You might find the car you're looking for can be had with a welcome discount by just spending a few hours on the phone chasing prices.

Be prepared to walk away

If you're not happy with the service you receive or the price you're trying to agree on, be willing to walk.

It might end up with a follow-up phone call and a better bargain than you initially expected.

Dealerships are there to make money, not to be your friend. Don't be fooled by the million-dollar smile and have a price in mind that you are willing to pay.

Beware the add-ons

Many car salespeople work on commissions based on the accessories you add to the vehicle, or things like paint protection.

You should be able to negotiate a set of floor mats if they're not included in the price. And if you want the windows tinted, it shouldn't cost you $2000.

Paint already has a protective layer, the clear coat on top. If you're worried, consider going to a specialist car detailer for a ceramic treatment.

Do your research

Check the car brand's warranty information, maintenance requirements and roadside assistance program before you go for a test drive.

You're more likely to face 'extended warranty' upsells on used vehicles, but know what's offered from the factory so you don't buy something you don't need.

Most brands now offer a five-year, unlimited-kilometre warranty, and the majority also have capped-price servicing and roadside assistance for the same period as the standard warranty.

Question everything

If you were asked to pay an extra fee for your takeaway coffee, you'd want to know why, right?

It's the same for costs on your car-buying contract. You have a right to know what every charge relates to.

Do not back down if you think there are unfair fees or charges added.

What dealer delivery fees really cover

Arguably the darkest art in the new-car game is dealer delivery fees.

Some dealerships have added more than $10,000 to the asking price of high-demand vehicles, although typically the cost ranges between $500 and $4000.

Don't assume this covers the cost of transporting the car from the port.

An industry insider, speaking on the condition of anonymity, told Money the concept is widely misunderstood.

"Dealer delivery is a historical fee introduced back in the day when cars needed a lot of preparation work before they were handed over to the customer," the insider said.

"Contrary to perception, it does not cover the cost of getting the car to the dealer's front door. The dealership pays for delivery in the invoice cost of the car."

Dealer delivery is an extra layer of profit, but like the overall vehicle price, it is negotiable.

The fee typically covers basics like registration plates, a quick hose down, removal of transport plastic and, if you're lucky, some fuel in the tank.

Any new-car quote should include a clear breakdown of registration, stamp duty, GST, dealer delivery and luxury car tax, if applicable. Check the maths carefully, you'd be surprised what can sneak through.

Common car ownership mistakes and how to avoid them

Once the paperwork is signed, the focus shifts from buying well to owning wisely.

Some brands offer resale protection through guaranteed future value programs, which set expectations for a buy-out or trade-in value at the end of a loan term.

Otherwise, simple habits can go a long way.

Clean it

Keeping the exterior clean helps protect the paintwork, while a tidy interior adds resale appeal.

No one wants a used car that smells like spilled coffee or rotten bananas.

It might help to set a regular reminder, weekly or less often, rather than waiting for a service just to get a free car wash.

Maintain it

Stick to the service schedule, but don't feel locked into a brand dealership.

Authorised independent mechanics can often do a better job at a competitive price.

Servicing outside the brand network, as long as it's done by an authorised mechanic, shouldn't affect your warranty.

Put good tyres on it

Tyres are your only contact point with the road and a critical safety item.

Don't buy the cheapest option. Buy the best tyres you can afford.

Premium brands include Michelin, Continental, Pirelli and Goodyear. More affordable options include Kumho and Maxxis.

For off-roaders, consider Toyo, BFGoodrich or Cooper.

Owning an electrified car

Battery chemistry matters. If your EV has an NMC battery, setting a maximum charge limit of around 80% may improve long-term battery health.

If it has an LFP battery, you can generally charge to 100% regularly without significant degradation.

What new-car warranties really cover

New-car warranties vary widely.

At the low end, some brands offer three years or 100,000km. At the top end, coverage extends to 10 years or 300,000km.

Warranty paperwork can be cleverly worded, but Australian Consumer Law may still protect you against certain faults.

How to finance a car without overpaying

There are plenty of ways to buy a new car, but paying outright with cash is still the simplest.

It avoids interest and keeps costs down, even if it's not viable for most buyers.

"Ultimately, the best way to pay for a car is to buy outright and avoid interest," says Mike Costello from Cox Automotive Australia, "but that's not realistic for everyone."

Car loans are more profitable for dealerships, which is why special finance offers often exist when there's excess stock.

Loans can be fixed or variable, just like home loans. Fixed rates suit tight budgets. Variable rates can end up cheaper, or more expensive, depending on the market.

Many loans require a deposit and include a balloon payment, a larger lump sum due at the end of the term.

That balloon reduces monthly repayments. For example, financing a $60,000 car with a $15,000 balloon means repayments are calculated on $45,000.

Why comparing lenders can save you thousands

Many brands now offer low-rate finance as a quiet discount without cutting sticker prices.

Dealer finance can include higher fees or compulsory balloon payments. Bank loans may offer more flexibility, even if the interest rate is higher.

Online comparison tools can save you thousands over a five-year loan.

If you see 0% finance, read the fine print. Big fees and balloon payments often make the numbers work.

Refinancing is also an option if rates move or your circumstances change, but watch out for exit fees.

EV buyers may access generous novated lease deals, with repayments taken from pre-tax income.

"If you're buying an electric car, a tax-free novated lease is almost a no-brainer," says Costello.

How modern car safety systems actually work

Most new cars now come with a full suite of active and passive safety systems.

Active safety intervenes to prevent crashes, through braking, steering or speed control.

This includes automatic emergency braking (AEB), lane-keep assistance, adaptive cruise control, blind-spot monitoring and intersection assistance.

Some systems work beautifully. Others can feel intrusive, especially when speed-sign recognition gets confused.

Passive safety is what protects you once a crash occurs.

Seatbelts, airbags and the vehicle's crumple zones all fall into this category.

Family buyers should look for curtain airbags that extend to the third row in seven-seat vehicles.

In Australia, ANCAP ratings assess both active and passive safety across four criteria.

Five stars remains the benchmark, although the amount of technology required to achieve it can sometimes make a car feel overbearing to drive.

Every time pressure builds in the Australian economy, the same solution gets rolled out. The government squeezes the people who are easiest to tax and right now, that's everyday Australians trying to build wealth.

The push to change the capital gains tax rules isn't just a policy tweak, it's a signal.

If you're buying property, investing in shares or trying to get ahead outside of your salary, you're now the target. Not because you're the problem, but because you're visible, domestic and easy to reach. Meanwhile, the biggest pools of wealth in this country remain structurally protected.

Australia is one of the most resource-rich nations in the world, yet we behave like a middleman in our own economy.

We dig it up, ship it out, lock in long-term contracts and then act surprised when domestic prices spike or the domestic tax doesn't match the scale of what's leaving the country.

That's not bad luck, that's a policy choice because here's the uncomfortable truth, it's politically easier to tighten rules on mum and dad investors than it is to redesign how the country monetises its biggest advantage.

So instead, we get the illusion of action by tweaking capital gains, talk about reducing spending and, maybe, clipping a few programs.

It creates the appearance of discipline, without ever touching the core issue, which is Australia doesn't maximise what it already owns and that's where the strategy is broken.

If this budget was about strengthening the economy, the focus wouldn't be on extracting more from individuals, it would be about expanding the base.

That means working out how to capture resource profits, prioritising domestic supply before exports in critical sectors like gas, incentivising investment rather than discouraging it through tax creep and, most importantly, shifting from a tax what's visible mindset to a grow what's valuable strategy.

Sadly, we're taxing ambition while underutilising our resource advantage and that's the real risk.

And it feels like Groundhog Day because the system is broken.

The same people are repeatedly asked to contribute more, while the biggest levers for growth sit untouched.

At some point, that stops being economic management and starts looking like avoidance.

What are the best and worst-performing sectors this week?

The best-performing sectors include Energy, up more than 2%, followed by Real Estate and Industrials, both up under 0.5%.

The worst-performing sectors include Consumer Staples, down more than 6%, followed by Materials, down more than 3% and Healthcare, down more than 2%.

The best-performing stocks in the ASX top 100 include Atlas Arteria Limited, up more than 10%, followed by Mineral Resources, up more than 7%, and Whitehaven Coal, up more than 6%.

The worst-performing stocks include Westgold Resources, down more than 11%, followed by Ramelius Resources and Woolworths Group, both down more than 9%.

What's next for the Australian stock market?

Another week of selling pressure weighed on the market this week, with the All Ordinaries closing down 1.32% on Thursday.

The move was largely driven by ongoing tensions around the Strait of Hormuz, with no clear resolution in sight. That backdrop pushed oil prices higher, which in turn lifted the Energy sector as the standout performer.

At the other end of the spectrum, Consumer Staples came under heavy pressure, falling more than 6% as rising input costs and margin compression started to bite.

From a technical perspective, the market is now at a genuine inflection point.

This could still be a healthy pullback within the uptrend that began in March, but there are early signs the market may need more time to reset. Resistance at the 9200 level comes as no surprise, as once again it has held firm.

What looks increasingly likely in the short term is a period of consolidation.

Following the strength seen in recent months, the market may need to absorb gains and work through external uncertainties. That opens the door for a more sideways environment, potentially extending into the second half of the year.

On the downside, 8600 remains the key level to watch.

It's the logical area where buyers would be expected to step back in if weakness continues. A move toward that level wouldn't disrupt the broader structure and would still sit comfortably within a constructive trend. From there, another attempt at 9200 would be the natural progression.

A break below the March lows, however, would change the picture.

That would introduce a sequence of lower highs and lower lows, signalling a shift away from upward momentum.

A more constructive outcome would be a bounce from higher levels, around 8800, followed by a renewed push toward and potentially through 9200. That would confirm buyers are still active and willing to step in earlier, which is typically a sign of underlying strength.

In this kind of environment, discipline becomes critical. Bottom-picking can be expensive when volatility is elevated.

A more effective approach is to stay focused on liquidity, stick with relative strength and watch sector rotation closely.

When the index loses direction, that's often where the real opportunities start to emerge.

Property price growth has started to soften. In some markets, prices are even going backwards, according to Cotality.

National home prices rose just 0.3% in April, but competition is intensifying in the cheapest parts of the market where first home buyers are most active.

Over the course of April, the national median home value edged up by just 0.3% to $940,048, which is the lowest increase recorded by Cotality since January last year.

Melbourne and Sydney are proving to be the largest drags on growth, with property prices in both markets falling by 0.6% in April.

It was a different story in some of the other capitals though. Home values in Perth (up 2.1%), Brisbane (up 1.2%) and Adelaide (up 1.1%) all rose in April, though at lower rates than in previous months.

Interest from buyers also appears to be waning, with Cotality noting that estimated sales are down on previous years while listings are on the rise.

"The housing market was losing momentum from late last year as affordability and serviceability constraints weighed on demand," says Tim Lawless, research director at Cotality.

"Now we have the additional downside pressure of higher interest rates, sentiment has fallen off a cliff, and rising inflation is set to drive the cost of debt even higher."

More buyers are chasing fewer affordable homes

On the face of it, the news that price growth is softening (and even decreasing in some locations) would seem like a welcome development for first home buyers trying to enter the market.

But this isn't necessarily the case.

The growth in home values that is occurring is, according to Cotality, increasingly concentrated in the lowest price quartile - the segment of the market where first-time buyers are most active.

As prices become more expensive and borrowing capacity thanks to rising interest rates, Cotality notes that more buyers are competing for the most-affordable pool of homes.

"The largest difference between upper and lower quartile value growth is in Sydney, where lower-tier house values are up 2.9% year-to-date compared with a 3.3% fall across the most expensive quarter of the market," Lawless explains.

Is the Home Guarantee Scheme pushing up prices?

Last October, the federal government rolled out an expanded Home Guarantee Scheme (HGS) for first home buyers, which included higher property price caps, no income limits and unlimited places.

Six months on and roughly 60,000 people have made use of the expanded scheme to enter the housing market, according to figures from Housing Australia.

While helping thousands get a foot in the door, the scheme also appears to have contributed to a jump in prices at the lower end of the market.

Research released by Cotality last month found that in the six months since the revamped scheme began operating, homes with values under the scheme's price caps have risen by 6.7% - more than double the growth rate of those with values above the caps.

Of course, the redesigned scheme isn't solely responsible for price increases at the lower end of the housing market.

Cotality suggests that affordability and serviceability constraints were already pushing many buyers towards cheaper homes, including a large number of investors who entered the market at the tail end of last year.

Going forward, the impact of the scheme on competition and price growth is likely to lessen, though as Cotality notes, this will be as a result of more homes rising above the existing prices caps and more first-time buyers being constrained by higher interest rates and inflation.

Uni students targeted in 'quick-cash' money mule scams

As tertiary students across the country settle into the university year, ANZ and Griffith University, are urging students and young Australians to remain alert to a rise in so-called "quick-cash" money mule scams.

Criminal groups are increasingly targeting students - particularly those living away from home or studying internationally - both online and in person.

The crooks offer easy payments in exchange for access to bank accounts or identity documents.

The Australian Federal Police (AFP) has previously flagged this tactic as a growing threat to Australians.

According to the AFP, organised crime syndicates are offering several hundred dollars - sometimes with additional commission - for the use of bank accounts.

Identity documents such as passports and driver licences are also being sought so criminals can open fraudulent accounts in victims' names.

ANZ has observed increasingly brazen approaches, with scammers contacting students via social media platforms, messaging apps, and even in person near university campuses and student accommodation.

ANZ's Marc Broome, says, "Selling or 'loaning' your bank account or identity puts you at risk of being linked to money laundering and other crimes."

Over-60s sitting on $600 billion in home equity

Australians aged over 60 are sitting on $3 trillion in home equity, including around $600 billion that could be unlocked through equity release products, to boost retirement incomes and help older Australians stay in their homes.

That's the finding of Deloitte's 2026 Australian Reverse Mortgage Survey, which found reverse mortgages are currently used to access just 1% of the potential equity available among over-60s.

Deloitte Australia partner, James Hickey, says equity release products such as reverse mortgages and the government's own Home Equity Access Scheme can significantly boost retirement income and support retirees' standard of living.

However, he adds that use of these products is low, suggesting lack of consumer awareness.

Medina Cicak, chief commercial officer of Heartland Australia Bank, which contributed to the report, says, "Older Australians are not drawing more than required; on average, they access around 50% or less of their available equity."

The report shows that home improvements and paying off debt are the two most popular ways people use funds released via home equity.

One in seven Aussie drivers cut back or ditch car insurance as petrol costs surge

Fifteen per cent of Aussie motorists - around 3.2 million of us, have downgraded or ditched car insurance over the past 12 months as fuel costs surge according to Finder.

It comes as more than a quarter of Australians currently list petrol as one of their "most stressful" expenses. That's up from just 11% in January.

Finder's Taylor Blackburn says there is a worrying number of uninsured vehicles on Australian roads.

He adds that driving without sufficient insurance carries real financial risks.

"An at-fault accident could result in substantial out-of-pocket costs, particularly if multiple vehicles are involved.

"It's crucial for drivers to carefully consider their options before cancelling their cover entirely," warns Blackburn.

Not all drivers are cutting back - 10% say they switched providers to secure a better deal while maintaining the same level of cover.

Blackburn says the best way to save on car insurance whilst keeping your level of cover is to shop around.

NAB to roll out 700 new smart ATMs as cash use holds firm

NAB is bucking the industry trend with plans to roll out over 700 new smart ATMs nationally.

Paul Carter, NAB executive of retail banking, says the investment comes at a time when access to cash remains important for many Australians, even as parts of the banking sector scale back or step away from providing cash services.

"While many Australians are using digital banking more often, cash still plays an important role," notes Carter.

Across NAB's ATM network, more than 500,000 transactions are made every week, with over $8 billion withdrawn and $3 billion deposited in cash each year.

"Those numbers tell us cash is still very much part of everyday life," notes Carter.

Weaker borrowing power cools Australia's property price growth

Australia's housing market has continued to see gains into early 2026, with most capital cities reaching new price highs in the March quarter.

However,  Domain's latest quarterly property price report shows the pace of gains has slowed, roughly halving from the previous quarter.

But it's not demand that's softened.

The cracks starting to appear in the market are the result of weaker borrowing power, and buyers being "more cautious, more price-sensitive, and increasingly selective about where and what they purchase."

Sydney's median price has slipped just 0.04%, or $772 - its first drop since 2022.

Melbourne's median slumped by 0.6% or $6,357.

However, not every market is feeling the squeeze.

Several capitals posted "massive growth" over the quarter including Darwin, where prices leapt $56,818; Perth, with the biggest rise of $63,615; Adelaide, up $53,922; and Brisbane, up by just under $50,000.

In the first two months of 2026, markets followed the playbook. Developed ex-US and emerging market equities were outperforming with a strong global growth outlook and a weakening US dollar.

Gold was trading above US$5000 an ounce for the first time while US indices were treading water on AI jitters.

Then, on the last day in February, the US invaded Iran and began a war that remains ongoing today.

What Trump may have hoped would be a swift operation, toppling the existing leadership and spurring protesters to install a new government, has instead become his trickiest geopolitical entanglement yet.

Equity markets pared their early year gains to be trading down across the world over March, which have more recently rebounded on hopes of a resolution.

The short-term threat is the hit to global growth and inflationary pressure from higher oil prices.

Given the recency of the shock, its impact will only show up in hard economic data with a lag.

Suffice it to say, the longer the war runs, the greater the risk of global recession.

Our base case assumption remains a timely de-escalation without a severe shock to the global economy.

But in any case, it may be the longer-term implications that matter most for investors, long after any resolution in Iran.

Re-thinking portfolio satellites in a fracturing world

Portfolio satellites are used by investors alongside their core allocations to achieve specific goals. More than ever, investors should be considering using these satellites as hedges to geopolitical events.

Russia's invasion of Ukraine accelerated defence spending and European energy diversification.

The Iran conflict is now doing the same for global energy self-sufficiency while further fracturing the US security umbrella and embedding geopolitics as a structural driver of asset prices, rather than an episodic risk to be faded.

For investors, that argues the case for allocations to select exposures in portfolios going forward to help reduce portfolio volatility through a potentially prolonged period of geopolitical tension and global order reshuffling. These include:

Defence contractors

Global defence stocks have been among the best performing since the start of Trump's second presidential term.

In April of 2026 the US proposed a US$1.5 trillion defence budget for FY27, the largest in history and a 50% increase on FY26.

Across the Atlantic, Europe's rearmament is accelerating.

EU defence budgets have nearly doubled from €218 billion in 2021 to a projected €392 billion in 2025, marking the first year all EU-NATO members have hit the 2% of GDP threshold.

To unlock additional fiscal room, 17 member states have activated the EU's national escape clause, permitting defence spending above Stability and Growth Pact limits through 2028.

Germany alone has committed to €162 billion by 2029.

The direction of travel is clear, and defence contractors globally are set to be structural beneficiaries and a potential hedge to geopolitical threats that can cause broader equity market disruption.

Given the breadth of potential beneficiaries, investors can seek to gain diversified exposure to the global defence sector through an ETF, like Betashares Global Defence.

Uranium and energy security

Russia's invasion of Ukraine and the subsequent scramble to wean Europe off Russian oil and gas, thrust energy security to the top of the policy agenda.

The Iran conflict has now re-ignited energy self-sufficiency concerns globally.

As governments reassess baseload power and seek to reduce dependence on hostile suppliers, nuclear energy has re-emerged as a cornerstone of the solution.

As of the most recent COP (the United Nations annual climate change conference), 33 countries, including the US, France, UK, Japan, South Korea, Canada and the UAE, now back the pledge to triple global nuclear capacity by 2050.

With nuclear increasingly recognised as essential for energy independence, decarbonisation and AI-driven electricity demand, the uranium supply chain is entering a structural deficit that favours producers in allied nations.

Given the breadth of the uranium supply chain, spanning mining, exploration, development and production of uranium, modern nuclear energy, or companies that hold physical uranium or uranium royalties, diversified exposure, through an ETF like Betashares Global Uranium ETF, can provide efficient access to the theme.

Critical minerals

Critical minerals, inputs essential for AI data centres, EVs, renewable energy and defence technology, are at the intersection of future technologies and geopolitics.

China controls over 60% of global refined critical mineral supply and 90% of rare-earth magnets.

In response, Western allies are moving decisively: in February, ministers from 54 countries discussed a US proposal to reduce dependence on Chinese supply, while the EU, Japan, Mexico and the US agreed to create price support mechanisms and capital backing for critical mineral projects.

Both the US and Australia have established strategic mineral reserves, and the latest US defence budget dramatically expands investment in domestic critical mineral supply chains.

Selected producers from allied nations, Australia, Canada, Peru and Chile, are well-positioned as key beneficiaries of this government-backed push for supply chain resilience.

With supply chain resilience now a policy priority across allied nations, the opportunity spans the entire critical minerals ecosystem, from miners and processors in Australia, Canada and the Americas, to the companies supplying the inputs that make EVs, data centres and defence systems possible.

The Betashares Energy Transition Metals ETF is designed to capture that breadth, rather than making a bet on individual winners in what remains a complex and evolving structural shift.

The events of early 2026 have reinforced that geopolitics is no longer an episodic risk but a structural force reshaping economies, supply chains and capital flows.

Defence rearmament, energy self-sufficiency and critical mineral realignment are policy-backed, capital-intensive and multi-decade in nature.

For investors with a long-term horizon, maintaining diversified growth exposures to these themes is not simply a hedge against disruption, but a considered response to where structural capital is flowing today and, increasingly, where it may flow tomorrow.

Petrol and power prices have sent inflation back to 4.6%, reviving fears of another RBA rate hike.

Annual inflation has jumped to its highest rate in more than two years, according to new data released by the Australian Bureau of Statistics (ABS) this morning.

The Consumer Price Index (CPI) rose 4.6% in the 12 months to March - a sharp increase from the 3.7% rate recorded over the 12 months to February.

"Annual CPI inflation is the highest it's been since September 2023," says Sue-Ellen Luke, head of prices statistics at the ABS.

Underlying inflation (or trimmed mean) - which doesn't include the most volatile price changes in the basket of goods and services tracked by the ABS - remained steady at 3.3% over the 12 months.

Transport and housing costs rise

While petrol prices have come down in the last fortnight, motorists won't be surprised to learn that automotive fuel was one of the largest recent drivers of inflation.

"Automotive fuel prices rose 32.8% from February to March, which pre-dates the halving of the fuel excise on April 1," Luke says.

"The increase in March is the largest monthly increase since the series began in 2017, reflecting the impact of the conflict in the Middle East on fuel prices."

The recent spike in fuel costs ensured that transport category (up 8.9%), was one of the largest contributors towards the uptick in headline inflation.

The other was the housing category (up 6.5%), pushed higher by elevated electricity costs which, according to the ABS, are 25% higher than they were 12 months ago following the end of government energy rebates.

What could this mean for the May RBA meeting?

Next week the Reserve Bank of Australia's (RBA) Monetary Policy Board will meet for the third time this year, armed with the knowledge that inflation has crept even further above its desired 2-3% target band.

As it stands, experts suggest that the Board is more likely than not to hand down a third straight 25-basis-point rate rise on Tuesday afternoon which would take the cash rate from 4.10% to 4.35%.

Before this morning's inflation release markets were pricing in the chance of a rate rise at 76%, while all four major banks were predicting a 25bp hike.

"Although the quarterly increase in trimmed-mean inflation was slightly less than the market feared, it was still uncomfortably high and cements the case for a rate hike at next week's RBA meeting," says David Bassanese, chief economist at Betashares.

"Beyond May, however, the case for further rate hikes is less clear-cut. There has been some modest easing in trimmed-mean quarterly inflation over the last three quarters, and a 0.8% increase is arguably not bad given the surge in energy costs in the last month of the quarter.

"Much will depend on how long the Iran conflict persists and whether the Strait of Hormuz remains effectively closed."

Humans, it turns out, are spectacularly bad at planning for the future, especially when money is involved.

This is surprising, because we talk about the future constantly. We make New Year's resolutions, five-year plans, strategic roadmaps, vision boards and, occasionally, PowerPoint decks so optimistic they should come with sunscreen.

Yet despite all this enthusiasm, most of us remain deeply shocked when the future eventually arrives, behaving as if it were some sort of rude ambush rather than the very thing we'd been discussing since Tuesday.

Why your planning brain fails when it's time to spend

To understand why this happens, it helps to start with a simple truth, the part of your brain that plans for the future is not the part of your brain that will actually be there when the future shows up. This explains a great deal.

Consider a very ordinary scenario. You are lying in bed at night, filled with resolve. Tomorrow, you will wake early, exercise, eat sensibly, respond thoughtfully to emails and calmly navigate interpersonal conflict like a Tibetan monk with a calendar.

The future version of you is serene, organised and buys vegetables. Unfortunately, the next morning you wake up as you. Tired, mildly resentful and already running late. The monk has gone. The vegetables remain theoretical.

This is not a character flaw. It is neuroscience.

The brain is, at heart, a survival machine. It evolved to keep us alive long enough to reproduce, not to help us manage quarterly goals or retirement funds.

The emotional systems that drive behaviour, fear, desire, comfort-seeking and avoidance, are fast, ancient and extremely persuasive. They care deeply about now. The future, by contrast, is vague, abstract and emotionally underpowered.

From the brain's perspective, later is a rumour.

Why immediate rewards beat long-term financial goals

Psychologists call this tendency to value immediate rewards far more than future ones temporal discounting. A chocolate bar now feels real. Good health in 10 years feels hypothetical.

So we choose the chocolate and promise, very sincerely, to be healthier tomorrow. Tomorrow, as we have established, is not very reliable.

This is where Emotional Intelligence, EI 2.0, earns its keep. EI 1.0 taught us to notice emotions once they had already arrived, unpacked their bags and started rearranging the furniture.

EI 2.0 asks a more uncomfortable question, what emotional state is making this decision right now and would I agree with it if I felt different?

Because future planning fails most often not due to lack of intelligence, but due to emotional hijacking. We don't plan poorly because we lack information. We plan poorly because we plan while calm and execute while aroused.

Why financial plans collapse under stress

Research on affective forecasting shows that we are consistently terrible at predicting how we will feel in the future.

We assume our future selves will be more rational, more disciplined and less emotionally reactive than our current selves.

This belief has survived centuries of evidence to the contrary. It is one of humanity's most enduring delusions, right up there with "this meeting will be quick" and "I'll remember that password".

High emotional arousal collapses our planning horizon.

When emotional intensity rises, cognitive capacity shrinks. The brain shifts from long-term reasoning to short-term survival. This is adaptive if you are being chased by a tiger. It is less helpful when you are being chased by an email thread.

This is why so many future plans disintegrate under pressure.

The plan was designed by a calm brain for a calm world.

The execution happens in a noisy, unpredictable world filled with children, deadlines, wi-fi issues and someone asking "just a quick question" at precisely the wrong moment.

How to design money plans that work under stress

We need to reframe future planning as an emotional design problem, not a motivational one. Instead of asking "why can't I stick to my plans?" ask "what emotional states will sabotage this, and how do I design around them?"

This is why habits work better than goals, why exit strategies beat willpower and why reducing emotional friction is more effective than issuing stern internal lectures.

Good planners don't trust their future emotions. They respect them. They build systems that work even when motivation is low and stress is high.

The irony is that humans are not bad at planning because we are irrational. We are bad at planning because we are emotional and we keep pretending we are not.

Once we accept that our future selves will be just as human, just as tired and just as emotionally persuadable as our present selves, something remarkable happens.

Our plans become kinder, simpler and far more likely to survive contact with reality.

Why budgeting isn't about spreadsheets, but emotions

The future, after all, is not managed by spreadsheets. It is managed by nervous systems. And the sooner we plan for that, the better tomorrow will treat us. Even if tomorrow we still forget to buy vegetables.

Every meaningful financial journey begins the same way, one decision, one habit, one step, repeated. Even if the barbecue guests roll their eyes.

How to plan money decisions when motivation is unreliable

• Automate savings and bills so decisions are removed
• Design defaults for low-energy days
• Reduce friction for good behaviour, increase it for bad
• Plan exits for stress moments, not ideal conditions

If you need seven seats, a five-seater isn't going to cut it. Want a 10-speaker stereo but the car that better fits your needs has eight? You'll have to settle.

Be honest with yourself about what you want the car to do for you. You don't have to buy a vehicle that will tow up to 3.5 tonnes if your caravan is only 1800kg.

And spending $100,000 on a hardcore 4x4 dual-cab ute, just to go down an unsealed track to your favourite campground? Think about your actual lifestyle, not the life you'd like to live. It could save you heaps.

Then there's the budget. Most of us won't walk into a dealership with $60,000 cash. Instead, we'll investigate weekly repayments, finance options or leasing.

Car brands and dealerships regularly run promotional finance deals, and sharp rates could help your hip pocket substantially.

Fuel, upkeep, maintenance, tyres, insurance and parking should all be built into your budget. Don't just focus on the sticker price or minimum monthly payment.

Resale is the biggest cost for almost all vehicles, and it's common for new cars to lose more than 30% of their value after three years. Some do far worse.

Buying an electric vehicle (EV) might feel like a bigger gamble due to misconceptions around battery reliability and repair costs. But if you're shopping second-hand, you could pick up an absolute bargain.

Most new cars now come with a base level of safety tech, and almost every vehicle has a touchscreen media system.

However, technology becomes outdated quickly. Make sure you're happy with what's on board today, rather than worrying about what the next owner might want in five years' time.

New versus used: which is right for you?

New is exciting. Shiny. High-tech. Enviable. But it can also be nerve-racking and exhausting. Months of research, weekends spent trying to find trustworthy salespeople, then running the numbers and tackling the paperwork, that shine can wear off fast.

There are, of course, some clear upsides. Being the first person in the seat is a big one, and the bragability factor is real. New-car warranties, along with deal sweeteners such as free roadside assistance or capped-price servicing, can also make it easier to budget your running costs.

Technology is another major drawcard. Cars are effectively computers on wheels now, and newer models are often loaded with tech. That said, not all new cars are really new. Some have been on sale for a decade or more and aren't as cutting-edge as rivals. Examples include the Suzuki Vitara and Mazda CX-3, both launched in 2015.

Buying used can be a more affordable way into a 'new to you' experience and, in many cases, is the smarter move. If you're considering an EV, it's especially worth checking used listings first. You could save as much as $30,000 on a used or demo car with only a few thousand kilometres on the clock, sometimes more if there's been a model update.

"When you choose a demo or used vehicle, it allows you to dodge the instant depreciation of buying new," says Feann Torr, managing editor at Carsales. "Most brands offer longer warranties than they used to, and they're transferable. Lower upfront government fees and reduced insurance costs also mean demo or used cars are often the savvy choice."

Older used cars need more consideration. They may be out of warranty, increasing the risk of expensive repairs. Older tech can also be an issue, from outdated infotainment systems to slow EV charging speeds or old plug types.

Find the right size car for you

Small cars

Small cars are usually cheaper, more fuel efficient, easier to park and often more fun to drive. The trade-off can be lower safety scores compared with larger vehicles.

The Kia Picanto is a standout for budget buyers, starting at just over $22,000. It's tiny, but more practical than you'd expect. The Suzuki Swift is another popular option, with a fun personality and pricing under $25,000. The Skoda Fabia is also worth a look, offering clever interior space, European styling and a seven-year warranty for under $30,000 drive-away.

While traditional small cars have declined in number, the small SUV segment has boomed. Despite rugged looks and higher ride heights, many are essentially hatchbacks underneath.

Options that blur the lines include the value-focused Chery Tiggo 4 from $23,990. If you want a bit more space, the MG ZS or Suzuki Fronx are solid choices. For hybrids, the Toyota Corolla Cross is a great bridge between a hatch and a medium SUV, while the Hyundai Kona hybrid offers strong value. Prefer a sedan? The Hyundai i30 hybrid is ultra-efficient.

Medium family SUVs

Step up a size and you gain more boot space, five seats as standard, and usually more performance. Powertrain options are broad, including petrol, diesel, hybrid, plug-in hybrid and electric.

Our recent Best of the Best awards highlighted several standouts. The GWM Haval H6 hybrid starts from just over $33,000 drive-away. The Mitsubishi Outlander offers five or seven seats and front or all-wheel drive. The VW Tiguan is another polished option, particularly for urban drivers.

If plugging in appeals, the Chery Tiggo 8 Super Hybrid comes in under $50,000, offers three rows of seats and can drive nearly 100km on EV power alone. The BYD Sealion 6 is another strong option if you only need two rows.

Large SUVs

Big families often need bigger vehicles. While large SUVs can be harder to park and sometimes compromise boot space, hybrid options have helped rein in fuel bills.

One of the best people movers isn't an SUV at all. The Kia Carnival offers eight seats and loads of luggage space, with petrol, diesel and hybrid options available.

The Hyundai Santa Fe seven-seater has multiple variants, generous standard features and a choice of hybrid or turbo-petrol power. If you're trying to stay under $50,000, the MG QS offers three rows, bold styling and up to 10 years of warranty if serviced with MG.

Dual-cab utes

If a dual-cab ute suits your needs, there's no shortage of options. Just remember many are built on ladder-frame platforms, which can mean a firmer, less refined drive. Most are still diesel-powered.

Standouts include the GWM Cannon, which starts under $40,000 and offers strong value. The Mitsubishi Triton remains a solid mainstream pick, with up to 10 years' warranty when serviced with the brand. The LDV Terron 9, related to the MG U9, impresses with comfort and features.

For lifestyle buyers, the BYD Shark 6 stands apart. Its plug-in hybrid setup offers around 100km of EV driving and suits family buyers better than traditional work-focused utes.

Electric vehicles and plug-in hybrids

EVs can be brilliant, as long as you choose wisely. Range, charging speeds and tech-heavy cabins require adjustment. If you can charge at home, especially with solar, ownership costs can be significantly lower.

Choice has exploded in recent years, with China leading on tech, value and features. The Zeekr 7X offers luxury, comfort and more than 600km of range in mid-spec form for around $65,000. The MG IM6 delivers plenty of wow factor from just over $60,000. For a premium driving experience, the Porsche Macan EV sets the benchmark from about $130,000.

Eight things to check on a test drive

1. Comfort and driving position: If you're not comfortable the moment you adjust the seat and wheel, you never will be. Trust your first impression.

2. Blind spots: Check visibility past mirrors and pillars, and make sure shoulder checks feel natural.

3. Ride quality: Drive on the rough roads you use every day, not just smooth showroom routes.

4. Noise levels: Ask the salesperson to stay quiet and listen for tyre and road noise.

5. Parking ease: Test parking cameras, sensors and mirror visibility in real-world situations.

6. Cabin usability: Make sure storage, phone placement and charging options suit your habits.

7. Tech responsiveness: If the screen frustrates you in the showroom, it will frustrate you at home.

8. Safety features: Understand which alerts can be adjusted or turned off, and how easy that is to do.

Ready to go further? In part 2, we look at running costs, ownership traps and how to avoid buyer's remorse.

Reader question

Dear Paul,

I am working for a Perth, WA-based engineering company that is not paying our superannuation to employee funds.

This has been going on for a good 10 months from all past and present employee reports (along with other business financial struggles).

What happens if they close up/go bust? Then that super is not paid to us, is it? The government doesn't step in and cover this, does it?

And the ATO obviously isn't doing enough ensuring companies are compliant. I do wonder how in this day and age they're getting away with it from the ATO? - Nick

Paul's response

This is not good news, Nick. Not paying compulsory super, plus other business struggles is alarming.

They are required to pay your super at least quarterly and as of July 1 this year, employers must pay super at the same time as an employee's wages.

You have probably done this, but you should talk to your employer about resolving this issue. I suspect this will be unsuccessful, so it should be reported to the ATO via their online tool 'Report unpaid super contributions from my employer'. You will need your tax file number and your company's ABN.

I understand that many employees do not want to do this, fearing ATO action may hasten the company going into liquidation.

But in my experience, companies on the edge, who will not discuss how to resolve key issues such as super, are heading downhill.

The amount of super they owe you will only increase. If they fail, your super entitlements will be prioritised by the liquidator, but all too often employees do not get their entitlements.

In your shoes, I'd talk to the company about resolving late super payments. If this is unsatisfactory, report it to the ATO.

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For a digitally-native generation, it's easy to assume that Gen Z investors are building portfolios shaped by social media.

Research from the Australian Securities and Investments Commission (ASIC) suggests that assumption isn't unfounded.

Nearly two-thirds of Gen Z Australians use social media for financial information, while more than half trust "finfluencers" and even AI tools.

ASIC warns that this dynamic is contributing to riskier financial decisions.

But where Gen Z gets ideas and what they do with their money are not the same thing.

Data from Selfwealth by Syfe, based on more than 130,000 Australian investors, shows that Gen Z portfolios are not radically experimental or trend-driven. In fact, they look remarkably considered.

Gen Z investors hold an almost even split between ETFs and individual stocks, closely mirroring Gen X. This stands in contrast to other generations, Millennials are far more ETF-heavy, while Baby Boomers lean towards individual stocks.

If social media is such a dominant influence, why do Gen Z portfolios resemble those of a pre-digital generation?

Exposure doesn't equal execution

Gen Z may be discovering investing through TikTok or YouTube, but discovery is not decision-making.

ASIC research highlights that while social media is a primary entry point, 60% of Gen Z investors also use professional or formal sources, and half turn to family and friends for guidance.

What we're seeing is not blind adoption, but cross-referencing. Gen Z investors are combining digital discovery with more traditional financial principles, testing, validating and filtering what they consume before acting on it.

Social media, in this sense, is functioning less as a source of truth and more as a starting point. It is closing the awareness gap that existed for previous generations, acting as a gateway into broader financial education.

ETFs have reset the starting point

The more meaningful shift is structural.

ETFs have transformed diversification from a high-capital, complex strategy into the default entry point for new investors.

Today, just a single trade and decision point can immediately provide broad exposure to global markets, something that once required significant time, experience and confidence.

And that global diversification has become even more important - indeed, we've seen growing demand even just in the last quarter in the purchase of ETFs that offer international exposure versus purely domestic.

For Gen Z, that means they are enjoying a substantial leg up, by starting their investing journey already diversified.

This helps explain the balance we're seeing. ETFs form the foundation of portfolios, while individual stocks offer a way to engage more actively and express one's own personal views and "bets".

In many ways, younger investors are now using tools that enable more balanced outcomes than previous generations had access to at the same age.

A generation that's informed - but not immune

None of this contradicts ASIC's warning.

There are clear pockets of risk. Nearly one in four Gen Z Australians hold cryptocurrency, and many take a short-term or speculative approach, sometimes influenced directly by social media content.

Gen Z is not a monolith. While many are diversified and long-term focused, others are more exposed to hype-driven decision-making. For Selfwealth users, the former is more common.

Generational differences still matter

Looking across demographics reinforces this pattern.

When we look at our own Selfwealth by Syfe platform data, we see that Millennials, for example, are leaning more heavily into ETFs, with around 70% of their portfolios allocated to these vehicles, suggesting a strong preference for diversified, long-term strategies.

Baby Boomers, by contrast, remain more active stock pickers, with roughly two-thirds of their portfolios in individual equities.

Gen Z sits between these approaches, not as passive as Millennials, not as stock-heavy as Boomers, but notably aligned with Gen X in its balance.

That alignment is unlikely to be coincidental. While access to information and tools is reshaping how Gen Z invests, Gen X, who parent much of this cohort, may still play a quiet, supporting role in shaping attitudes to risk and diversification, whether through direct advice or observed behaviour.

This isn't simply behavioural. It reflects a convergence of better access to information, improved financial literacy, and tools that make diversification easier than ever before.

Rethinking the Gen Z narrative

The idea that Gen Z investors are impulsive or purely trend-driven doesn't fully hold up.

They are navigating a complex information environment shaped by algorithms, influencers and constant content.

But they are also demonstrating an ability to filter, balance and apply that information in a way that reflects long-standing investment principles.

For the industry, this presents both an opportunity and a responsibility: to meet Gen Z where they are, while equipping them with the tools and education needed to make informed decisions.

Because if the data tells us anything, it's this: Gen Z investors aren't simply following trends.

They're interpreting them, and often investing more thoughtfully than they're given credit for.

And while access and tools are doing much of the heavy lifting, habits still form early. In my own household, that means investing my children's savings in a globally diversified portfolio of ETFs from day one.

The biggest advantage you can give the next generation is firstly, time in the market, where compounding does the heavy lifting but even more importantly, to educate them on the importance of investing from an early age.

For many of us, higher interest rates chiefly mean higher home loan repayments. But the impact will extend a lot further, providing both opportunities and challenges for investors.

Let's take a look at five key ways rising rates are likely to reshape the investment landscape.

1. Returns on cash rise but there will be strings attached

On the face of it, higher rates can make savings accounts more attractive.

There is a catch though.

A large number of savings accounts impose strict conditions around deposits and withdrawals before 'bonus' interest is paid.

We know from a review by the Australian Competition and Consumer Commission (ACCC) that consumers often find it hard to meet these conditions.

In fact, the ACCC found that in any given month, over seven in ten bonus interest accounts didn't pay bonus interest.

A more certain return is available through private credit - essentially non-bank lending.

GPS Investments, for example, typically pays 1-2% more than cash deposits.

As a guide, our Arkus Fund pays a return of 6.50% with zero fees. And you get the same flexibility to invest on a regular basis as a savings account, with the option to make monthly withdrawals.

The added upside of a private credit fund is that you don't see your savings every time you bank online, which can reduce the temptation to dip into the funds.

2. Regular distributions are likely to make private credit even more attractive

As part of the 'fixed interest' class of investments, private credit funds can be a source of regular income, often with distributions paid monthly.

Right now, passive income can be especially valuable.

Australians are battling high living costs and skyrocketing fuel prices, yet the past year has seen wages growth of just 3.4% - below the rate of inflation of 3.7%.

It's not just about income. As the name suggests, private credit funds do not trade on public markets. This means there is none of the volatility we've seen on sharemarkets over the past year - volatility that can leave investors exhausted, and their portfolios worse for wear.

3. Investors may take unnecessary risks

As we all grapple with the cost-of-living crunch, it can be very tempting to look for investments promising elevated returns.

It pays to remember though that high returns always go hand-in-hand with increased risk.

In the private credit market, for instance, some funds are advertising returns of 10%-plus. Make no mistake, this sort of return can come with far higher risk than investors may realise.

These funds tend to have high loan to value ratios, with extremely low buffers if anything goes wrong. The underlying loans are often secured by second registered mortgages, which rank behind first mortgages in terms of repayment priority if a default occurs.

By contrast, at GPS, we always maintain lending buffers of at least 30%, and our loans are secured by first registered mortgages - the highest level of security, which lowers risk for our investors.

4. Experience will shine through

Whether it is listed companies, share funds or private credit funds, the next few months will test newcomers to the market simply because these asset providers lack experience across a range of economic conditions.

In the private credit market, a significant number of new funds have launched in recent months, often by providers with worryingly little experience.

This lack of experience means not every private credit fund will emerge from the current economic climate unscathed.

GPS Investments has been funding new homes in the south east Queensland growth corridor for over 30 years. This depth of experience backed by our conservative approach, and in-depth knowledge of the market we serve, saw us successfully navigate the global financial crisis as well as the COVID pandemic.

That experience will stand us - and our investors - in good stead as we forge a path through the current period of high rates.

5. Diversification is even more important

Diversification has long been seen as a cornerstone of successful investing. It reduces volatility, lowers risk, and helps achieve more consistent returns.

Diversifying is especially important as a risk management strategy when rates are rising as it helps soften the impact of stock market volatility.

Yet fewer than one in two Australians believe they have a diversified portfolio.

Now could be the time to add fixed interest investments such as private credit, to your portfolio.

It can give you the benefit of regular income and above-inflation returns. And options like the Arkus Fund, which charges zero fees, makes investors' money work even harder at a time when every dollar counts.

This week on the Friends With Money podcast, Money's managing editor, Vanessa Walker, is joined by motoring contributor and The Right Car host, Matt Campbell, to discuss the pros and cons of buying an EV.
Campbell explains the main barriers that held Australians back - price, range anxiety, resale and battery concerns, fit-for-purpose models, and charging infrastructure - then outlines what has changed, including emissions rules, improved plug-in hybrid and EV ranges, and growing price parity.

They cover economical charging (EV plans, solar and home batteries), insurance and resale considerations, suggested EV models across sizes, and why faster charging speeds are the next major battleground.

Episode timestamps

01:38 Why Aussies hesitated

03:14 Policy shifts and better range

05:23 Charging network bottlenecks

08:04 Cheapest ways to charge

09:19 Affordable EV price points

12:07 Must have features vs gimmicks

13:46 Hidden costs insurance and resale

16:01 Top picks small to large

18:27 Future faster charging tech

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Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

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You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

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Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

Subscribe to the Friends With Money podcast today and start learning when it suits you.

Tell us about your early years. What shaped your attitude toward money and independence? 

I grew up in a family that valued hard work and practicality. One of my earliest memories is spending what felt like hours wandering through Toys"R"Us fixated on a pretend cash register. My mum didn't say 'no' instead, she said, "If you think it's worth it, we'll buy it".

As a little girl, that question made me pause and think. I'd imagine what my life would look like with the toy and without it, and more often than not I'd end up deciding it wasn't worth it and walking away.

That simple lesson shaped my entire relationship with money: respect it, don't fear it, and treat it as a tool rather than a measure of who you are. From there, independence came naturally.

I grew to love the freedom of making choices, not just the ability to buy things, but the ability to choose not to, even when I could.

Growing up, did you always imagine yourself as an entrepreneur? 

Not in the traditional sense. I didn't grow up thinking I'd run a business, but I did always have the instincts, like selling baked treats at school, coming up with ideas, being obsessed with creating.

I just didn't know back then that it was entrepreneurship. Looking back, it makes perfect sense.

What was the first financial risk you took to bring your brand to life? 

The first real risk was spending my savings on equipment, ingredients and a logo before I had any certainty that people would buy my product.

It wasn't a small amount to me at the time and there was a very real 'this could flop' moment. In fact, I started multiple businesses that flopped before Cherry's Goods.

Did you fund the business yourself or seek investors? 

Self-funding meant slower growth at the start, but it also meant every decision aligned with my vision; also, I don't know any investors, ha ha.

You have more than 300,000 social media followers on TikTok. How does that translate into financial opportunity? 

TikTok and other social media platforms have opened a lot of doors. Strong social presence means fewer barriers between 
me and my customers; I can launch new products directly to an engaged audience.

TikTok is not just numbers; it's a community that actively supports what I create and that brings me so much joy because 
I love baking and hosting others in my own space.

Does the size of that audience create pressure to constantly perform or monetise? 

Absolutely. There's a constant, unspoken pressure to always be on, to keep creating, keep evolving, keep feeding the algorithm. And on the days I'm not posting, it can feel like I'm somehow slipping behind.

But I've had to remind myself that my real passion isn't in the performative side of it; it's in hospitality, in baking, and in crafting videos that feel thoughtful and high quality, not just constant.

What's the biggest misconception people have about influencer income? 

That it's easy or passive. People assume you just post content and money appears.

In reality, it's strategy, deadlines and negotiations. And income isn't consistent; it can be amazing one month and quiet the next. I'm just grateful I can still call this a hobby while I focus on my day job.

What's the toughest money decision you've made since starting your brand? 

Choosing to reinvest almost everything back into the business, rather than paying myself more, has been the toughest decision. It's never easy watching money come in only to send it straight back out into growth, especially when you're relying entirely on your own ideas to carry things forward.

But in a way, that's also the thrill of entrepreneurship: betting on your own ideas and building something bigger than the moment you're in.

How do you balance reinvesting in the business versus personal spending? 

I think this brings me back to my first answer. The same question I asked myself as a little girl at Toys"R"Us: do I want to spend 
my money for this or keep it for something more worthwhile.

I don't think you're truly an entrepreneur if you put yourself before your business.

What's the best money advice you've ever received? Did you follow it? 

'If the problem can be solved with money, it isn't really a problem.'

At first, I didn't fully embrace this; I've always had a naturally thrifty mindset. But once I did, it brought me both relief and a sense of freedom.

Suddenly, I felt less guilty about spending on solutions and more empowered to act on things I had been putting off.

Finish this sentence: Money is good for... 

...creating freedom. Freedom to choose to build the life you want on your own terms.

That's not a typo. It's more than the average Australian annual salary earned in a matter of weeks, and if you're thinking that's just hindsight, here's the key point. Zip Co and Technology One didn't just randomly spike.

They set up in the same way, same pattern, same opportunity, and right now there are plenty of stocks lining up with that exact same setup.

Sharp selloffs, panic and headlines, then a snap back. We saw it again with Mineral Resources back in April 2025. Around the $20 mark, the same pattern showed up.

A $10,000 position with disciplined risk could have turned into more than $200,000 within six months. Not bad, but this isn't about cherry-picking winners, it's about understanding the environment we're in.

Since COVID, market volatility hasn't just increased, it's structurally changed.

Measures like the S&P/ASX 200 VIX have shown repeated spikes well above long-term averages, reflecting faster reactions to macro news, interest rate shifts and geopolitical events. What used to take months now happens in days, and that compression in time is everything because it means fear-driven selloffs are sharper and the rebounds even sharper.

For traders who understand it, this is a dream environment. One clean setup can genuinely equal a year's income, but only if you know what you're looking for.

There's also been a structural shift in participation. Since 2020, retail trading activity surged globally, with millions of new investors entering the market through low-cost platforms.

Broker data and exchange reports across markets have consistently shown elevated account openings and trading volumes compared to pre-COVID levels. More participants mean more emotion, which equates to more volatility and more opportunity.

However, when we turn on the news, everything feels uncertain and it sounds like the world is falling apart. Yet the market keeps pushing toward all-time highs.

That disconnect confuses people, but it shouldn't because markets don't move on headlines. They move on positioning, liquidity and expectation, which is why in the current environment, the edge isn't in predicting the world, it's in focusing on companies.

If volatility is creating these exaggerated selloffs and quality companies are being dragged down by macro noise, are you looking at the next opportunity?

The same setup that created moves in Zip, Technology One and Mineral Resources is forming again. The difference this time is that most people won't act on it because in the moment it feels uncertain and risky, but that's exactly what opportunity looks like if you have the knowledge and skill to take advantage of it.

This market isn't going back to how it was anytime soon. Volatility is higher, moves are faster and opportunities are bigger. But with the right approach, even a relatively small amount of capital can yield massive results.

What are the best and worst-performing sectors this week?

The best-performing sectors include Consumer Staples, up more than 2%, followed by Real Estate and Industrials, both up under 0.5%.

The worst-performing sectors include Healthcare, down more than 6%, followed by Financials, down more than 3% and Energy, down more than 1%.

The best-performing stocks in the ASX top 100 include Treasury Wines Estate, up more than 13%, followed by James Hardie Industries, up more than 8%, and NEXTDC Limited, up more than 4%.

The worst-performing stocks include Cochlear Limited, down more than 43%, followed by Lynas Rare Earths, down more than 11% and HUB24 Limited, down more than 10%.

What's next for the Australian stock market?

Sellers took control of the All Ordinaries Index this week, pushing the market down 1.59% by Thursday's close. If that's starting to trigger flashbacks of previous selloffs, take a step back. The bigger picture tells a very different story.

Over the past four weeks, the All Ords has surged nearly 9% with no selling pressure. That kind of one-sided move doesn't last forever, which makes this week's pullback less of a warning sign and more of a reset. In many ways, it was overdue. Now comes the real test, the 9000 level. If the index can hold above this zone, the path towards new all-time highs remains firmly intact.

If 9000 gives way, the next key support sits between 8800 and 8600. Given the strength of the recent rally, even a move into that range would still fall within the bounds of a healthy pullback. In fact, considering how sharp the run-up has been, a fast, aggressive drop wouldn't be unusual. The critical point is this, the 8600 to 8800 region must hold.

A break below 8600 shifts the conversation entirely and opens the door to a more serious downturn. This becomes even more relevant when you factor in seasonality. Historically, May and June tend to be weaker months for the market, suggesting we could see increased selling pressure in the near term. The hope is that April's strength provides enough buffer to absorb that.

Looking ahead, the next directional clue is likely to come from sector rotation. Technology appears to be building momentum. Financials, on the other hand, have underperformed throughout April, but any rebound in May could help stabilise the index during a typically softer period. Materials have carried the market higher recently, which also makes them the most vulnerable to short-term profit-taking.

Put it all together, and the most likely outcome may not be a sharp move in either direction, but rather a period of choppy, sideways price action. If the Materials sector cools off while Financials pick up the slack, the index could grind rather than trend.

For now, it's simple, stay focused on the key levels. They'll tell you everything you need to know about what comes next.

Australia's biggest super fund, AustralianSuper, has warned members to expect higher insurance premiums.

Inflation-weary Aussies may shrug this off as just another price hike.

But the size of AustralianSuper's premium uptick may take members by surprise.

From May 30, life cover premiums will jump 20%, while premiums for total and permanent disability (TPD) cover will surge 40%.

Premiums for optional types of cover, such as income protection insurance, will climb by up to 38%.

AustralianSuper isn't the only fund to lift premiums. CareSuper flagged an uptick in premiums from April 2026.

This matters because AustralianSuper is a goliath of the industry.

It manages over $410 billion worth of retirement savings on behalf of over 3.6 million Australians. And although only around half these members have cover through the fund, the sheer scale of AustralianSuper would give it serious clout when it comes to negotiating a good deal with insurers.

So, why the premium hikes?

Why insurance premiums through super are on the rise

By way of background, super funds organise 'group' cover for members - think of it as buying in bulk - through third party insurance companies. AustralianSuper, for instance, partners with TAL for its member cover.

Part of the appeal of group insurance is that it's both affordable and automatic - there's no need for medical examinations.

That said, super funds are well within their rights to pass any premium hikes on to fund members.

Christine Cupitt, CEO of the Council of Australian Life Insurers (CALI), says, "Australia is reaching a tipping point. The entire safety net, not just life insurance, is under pressure."

Data from CALI shows mental health is now the leading cause of TPD claims, accounting for almost one in three claims paid.

Of particular concern, mental health-related TPD claims among Australians aged in their 30s have increased 732% over the past decade.

Mental ill health is also driving one in five income protection claims, with payouts totalling $887 million in 2024.

The rise in mental-health claims is deeply concerning, especially as almost one in two Australians may experience mental ill-health in their lifetime.

In terms of insurance, this raises the possibility of higher premiums across other funds.

In March, insurance giant Zurich announced it would increase TPD premiums in response to "an increase in the volume and complexity of claims, especially those related to mental health."

Save on premiums without scrimping on cover

On the plus side, the increase is relatively small in weekly dollar terms. Over time, however, even small increases can erode retirement balances.

The increase ranges from an extra 13 cents a week (TPD plus life cover combined) for a 20-year-old professional, through to an additional $7.72 weekly for a 60-year-old blue collar worker.

Still, every cent paid in premiums is money we don't have in retirement.

What can fund members do? Plenty. Here are a few options to protect your super savings and still have adequate cover in place:

Know if you have cover

More than one in four Australians do not know what insurance they hold through their super, according to Super Consumers Australia.

So, the first step is to log into your super account, and check the policies you've signed up for (if any) - and how much cover you have.

You may not have cover at all.

Super funds are required to cancel insurance on accounts that had been inactive for 16 months. Also, default insurance no longer applies for members aged under 25 or for account balances below $6,000.

Check your work rating

A 'work rating' helps your super fund classify your job into one of several risk-based categories, chiefly:

• Blue collar
• White collar, and 
• Professional.

Some funds drill deeper into occupations, and may include 'light blue collar' workers like flight attendants and hairdressers.

The main point is that higher risk jobs attract higher insurance premiums.

If your job is incorrectly classified, a quick call to the fund can sort this, and potentially see you save on premiums.

Rethink multiple super accounts

If you have more than one super fund - as four million Australians do - you could be doubling up on premiums.

This will eat into your super savings, and you may be paying for cover you can't claim. With income protection insurance, for example, the most you can usually claim is 75% of your income prior to falling ill even if you have multiple policies.

Consolidating all your super into a single account can see you save on insurance and fees. However, the picture can change if you have a pre-existing medical condition.

Super Consumers Australia warns that funds may impose exclusions or waiting periods for pre-existing conditions. Worst case scenario, a claim could be denied if you change funds.  The only way to know is to read a fund's product disclosure statement (PDS).

Consider insurance outside of super

Insurance through super tends to be cost-effective because it is purchased in bulk.

In addition, premiums are paid from contributions taxed at just 15% rather than after-tax income, which can be taxed at far higher rates.

The downside is that cover is not tailored to your needs.

To know if your level of cover meets your needs, jump onto the Moneysmart life insurance calculator (or your fund's equivalent).  You can always request an increase in insurance though this will mean an uptick in premiums.

Alternatively, it's possible to arrange insurance outside of super. This can especially apply to income protection insurance, which is not always available as a default option through super.  The added sweetener is that premiums on income insurance are usually tax deductible, when you pay for cover from your own pocket.

The bottom line

The ability of super funds to bulk buy insurance means members generally get a good deal on the cost of cover, even at a time when premiums are rising.

It is possible to compare premiums charged by different funds but it means poring over the fine print of PDS documents.

The more pressing issue may be knowing whether you actually have cover in place - and if it's the right amount for your needs. Hopefully you'll never have to rely on it, but if you do, the payout from insurance held in super can be a financial lifeline when the cover is set up correctly.

RBA takes to social media to sell rate hikes

If you can't beat influencers, why not join them?

This seems to be the logic behind the Reserve Bank of Australia's (RBA's) push to use social media to defend its interest rate decisions, with recent posts aiming to explain why a loaf of bread that cost $3 in 2016 now costs $5 or more.

Sadly, the message may not reach many inflation-weary Australians.

The RBA has only 17,000 followers on Facebook.

The UK equivalent, the Bank of England, has a more respectable 60,000 followers.

The Commonwealth Bank has a thumping 800,000-plus followers on Facebook.

Even so, banks don't just have the cache of soccer stars like Christino Ronaldo, who has amassed 171 million followers.

The RBA may also be discovering that social media can be something of a game of chance when it comes to garnering consumer support.

The central bank's post about the cost of a loaf of bread attracted several hundred comments - plenty of which may not have been what the bank was hoping for.

Comments included:

"I'd rather pay an extra $2 for a loaf of bread than an extra $200 on my mortgage"

"Bread is now $5, so to help you with that, we're going to make sure your mortgage is now $500 more than it used to be", and "Time to buy a Bread Machine".

One insightful reader summed up the situation, noting, "Guessing your social media team was hoping for 'positive' comments lol".

HSBC backs down on scamming court case

HSBC, one of the world's biggest banks, has tossed in the towel on a court fight against corporate watchdog - the Australian Investments and Securities Commission (ASIC).

In the first case of its kind in Australia, ASIC alleged that HSBC Australia didn't have adequate controls in place to detect and prevent scams, and to properly respond to customers who reported losing money to scams.

ASIC alleges that between January 2020 and August 2024, HSBC received approximately 950 reports of unauthorised transactions. This ramped up significantly from mid-2023 when scammers gained access to customer accounts by impersonating HSBC staff.

Some HSBC customers lost $90,000 or more to scammers, and ASIC says HSBC "failed to protect its customers".

In a remarkable turnaround, HSBC has given up its fight, admitting to a number of ASIC's allegations just weeks before the case was due to be heard in court.

It's not over yet.

HSBC will face a one-day hearing in mid-June.

At the time of writing neither HSBC nor ASIC have commented on the bank's about-face.

But it's sure to see other banks lift their game when it comes to protecting customers against cyber-crooks.

No more $50 showers for seniors

This week saw the Federal Government expand clinical care support for seniors under the Support at Home program to include showering, dressing and continence management.

Under the scheme, launched in late 2025, seniors are expected to contribute to the cost of various in-home services depending on their income.

The ABC reports some elderly Australians could end up paying $50 an hour for basic personal care services like showering.

Minister for Aged Care and Seniors, Sam Rae, says, "Showering, dressing, continence care - these aren't optional extras. They're the basics of ageing with dignity, and no older Australian should miss out because of cost."

However, Council on the Ageing (COTA) Australia says the expansion of care services only corrects a problem that should never have existed.

COTA Australia Acting CEO, Corey Irlam, says, "Basic care like showering should never have been treated as an optional extra in aged care.

"Returning crucial supports like showering and dressing into clinical care, where they are fully government funded, is a welcome 'win' for older people.

Seniors will still need to foot the bill for basic care until October 2026.

ABS launches national hunt for Census Field Officers

Keen to earn extra cash?

The 2026 Census could be a golden opportunity.

The Australian Bureau of Statistics (ABS) is hiring more than 16,000 Field Officers for the Census.

The hourly rate of pay is $31.19 plus super.

Emily Walter, Census National Spokesperson, says, "We need people from across Australia to join the Census team, to help us to ensure everyone in Australia on Census night is counted."

Field Officers will answer the public's questions about the Census, deliver Census letters and forms and follow up with those who have not responded.

"We're looking for people who are willing and motivated to help others and can communicate sensitively and respectfully," says Walter.

If you're interested, head to the ABS census website. Census night is August 11, 2026.

Only one in 10 Aussies feel comfortable buying at auction

If the idea of bidding at auction leaves you icy cold, you're not alone.

A survey by Great Southern Bank found only one in 10 Australians feel comfortable buying a home at auction.

Over 40% of Aussies say their preferred way of buying a home is a private sale through a real estate agent. Over one in four (27%) would rather deal directly with the property owner.

Among those who feel comfortable buying at auction, almost one third believe this method of sale might land them a better price, while 27% say they have more control over the outcome.

The reality however is that Sydney and Melbourne are the primary auction hubs across Australia. Auction sales represent a fraction of the market elsewhere.

Cotality notes that the ANZAC Day long weekend is set to see a lull in auction action, with 770 homes scheduled to go under the hammer this week, bouncing back to approximately 2660 homes the week after.

The possible class action relates to its 1Q FY26 results and downgraded FY26 guidance released on August 20, 2025.

After releasing its Q1 results, the James Hardie share price declined by around 34%, wiping billions of dollars from its market capitalisation.

Slater and Gordon said that on the basis of its investigations to date, the proposed proceeding is likely to allege that James Hardie engaged in misleading or deceptive conduct and/or breached its continuous disclosure obligations, in relation to its FY26 earnings guidance, first provided to the ASX on May 21, 2025; and failure to update market consensus on its 1Q FY26 performance until August 20, 2025.

The claim proposes to represent shareholders who purchased James Hardie shares on the ASX between May 21, 2025 and August 19, 2025.

"Our financial markets rely on companies providing prompt disclosure of all material information relevant to investment decision making," says Slater and Gordon head of class actions Emma Pelka-Caven.

"It is vital that listed companies are held accountable in circumstances that shareholders are misled, or material information is withheld."

This is not the first time James Hardie shareholders have encountered issues with its governance.

In October last year the ASX launched a review into listing rules related to shareholder approval requirements, particularly when it comes to mergers and acquisitions.

The ASX says due to "heightened investor interest" around James Hardie's proposed acquisition of US-based Azek, it decided to launch the review into shareholder approval requirements for mergers and takeovers of listed companies undertaking a significant transaction.

The ASX allowed James Hardie to proceed with a $14 billion transaction without an investor vote, which led to backlash from major investors including AustralianSuper, UniSuper, Aware Super and HESTA.

Following that three US pension funds lodged proxy votes to remove Anne Lloyd as James Hardie chair at the company's AGM, also in October 2025.

CalPERS, CalSTRS and the Florida State Board of Administration lodged proxy votes with Glass Lewis, calling for Lloyd to be removed as chair.

This article first appeared on FS Sustainability

While Chalmers did not say what the reforms will be, he was clear about what he does not want for the performance test.

"We have been trying to progress this work for some time, as you know. I want to be really clear that I have absolutely no interest in watering down or ditching the performance test. I see it as a really crucial part of the superannuation system," Chalmers says.

"There are also barriers to some types of investment, and we have indicated a willingness privately and publicly with the funds and publicly with all of you to reform the performance test if we can do that in a way that doesn't diminish the high standards and in a way that doesn't diminish super funds' responsibilities to members."

Chalmers added that despite having had discussions with the superannuation sector "for some time", there is still no consensus on how to move forward with the changes.

"We would prefer a consensus, if one is possible, but at the very least the paper that I'll be releasing with [minister for financial services] Daniel Mulino soonish will give you an updated sense of our thinking here in the hope that we can try and get some people around one of the options presented in the paper," he says.

Chalmers initially flagged changes to the superannuation performance test in August 2025 after hosting the Economic Reform Roundtable.

Speaking at the ASFA Conference in November 2025, Chalmers said Treasury had established a technical working group which was working on possible changes and how to enact them.

"That consultation will be really targeted with industry and with experts like yourselves, and it will be guided by three main principles. First, any change to the performance test must uphold member outcomes as the core purpose of the test. Secondly, changes must maintain an objective standard or benchmark for fund performance. And third, any changes must be enduring to set the test up for long term stability," Chalmers said at the time.

This article first appeared on Financial Standard

Reader question

Hi Paul,

I'm 59 years old and own my home outright. I also have an investment property in Hobart worth about $520,000, with a weekly rental income of $470 and a loan of $235,000.

As far as my debts go, I'm paying back a $253,000 loan on a second investment property, which is located in Western Australia. I have no other loans or debts to repay.

In the current property market, the investment property in Western Australia is worth about $820,000 and brings in a weekly rent of $650.

I have a superannuation balance of $400,000.

I work full time and earn a salary of $54,000 a year, but will usually work a few hours of overtime each week. I live alone and have no dependants.

Money is tight and I'm driving an older car, which is only worth about $5000.

I would love to know if you have any advice to help me achieve some degree of financial freedom. At the moment, I'm living week to week, but in an ideal world I would be in a position to retire in two or five years' time. And a newer car would be nice.

Should I keep struggling along as I am until I retire, or would it be a good idea to sell one of the investment properties and be debt-free until I reach that stage of my life?

I hope you have some advice and see a way forward for me. - David

Paul's response

Well, David, my first thought was about how you have come to hold one property in Hobart and one in WA. I presume you lived in both these locations, but you certainly have two investment properties about as far apart as possible.

Add your super into the mix and you have built a solid pool of investment assets. Let's take a look at this.

Your total gross assets are a very impressive $1,740,000. Deduct your debt of $488,000 and we get to your net assets, not including your car, of some $1.25 million. Of course, to this we would need to add the value of your home.

Doing the sums

From a cashflow viewpoint, I can see your problem with free cash.

The Hobart property is returning $470 a week, or about $25,000 a year. I'll guess the interest on your mortgage is $15,000. I think the remaining $10,000 will be absorbed by agent fees, insurance, rates, maintenance and all the usual costs of a property.

I'm going to assume a zero income return to you from this property.

Your WA property is returning $650 a week, or about $48,000 a year. Your interest on the loan of $253,000 I'll assume is some $34,000.

Here I am hoping you have some positive cashflow, but I doubt it is much. From the $14,000 that remains you have the same expenses as above, and a nearly identical mortgage amount. I'm thinking a surplus of maybe $4000 a year.

You'll clear about $45,000 from your salary, plus my guess at a surplus on your WA property, so after tax you will have about $48,000.

Not bad, but hardly a fortune.

Now I can see why money is tight and a better car unaffordable. My question to you is why?

With your fully owned home and net investment assets of $1.25 million, if you did not work at all, spread across a balanced portfolio, you could expect to earn about 8% a year on average over the long term. If you spent 5%, leaving the other 3% to keep pace with inflation, you'd have a bit over $60,000 to spend.

Obviously your age is important in regard to accessing super, but you have ample assets outside super.

My view is you are sacrificing lifestyle today to create arguably more wealth than you need in the future. I don't know your personal situation, but if you keep struggling to get by day to day and keep your $5000 car, you will die a very rich man with a very old car.

There may be personal reasons I don't know for you to scrimp and save today to have more wealth in the future. But based on what you have told me, I don't see the logic here.

Clearly you are living on your after-tax income, plus a bit from the WA property, totalling about $48,000. You have a pool of assets that, if you stop work, will deliver more than this.

I'm arguing that in all likelihood you are already financially independent.

I suspect you want to keep working. Your after-tax income will cover most of your costs. In your shoes, these facts would lead me to a simple conclusion.

I most certainly would not struggle until retirement.

I would be looking at the two properties and selling the one with the least upside and the lowest capital gains tax liability. I don't know your purchase price of each property, but let's say you sell Hobart.

After agent fees, this should clear some $275,000. Work out your CGT tax with your accountant. But you would have a very nice pot of money.

Focus on today

It sounds like you will work to retirement age, so I'd be buying a new car, taking a holiday and enjoying a few meals out with a nice, cold beer.

You should still have $200,000 left over. You can leave some in the bank and invest some in shares. The dividends would be some $7000. I'd improve my lifestyle by spending that without any guilt.

In fact, I'd happily run down the $200,000 up to my retirement.

You will still have money going into super. Your existing $400,000 will grow over the longer term. The property you keep, if well located, should grow in value and deliver increased rent.

You already own your home.

The caveat here is what I don't know about your situation. Please see a professional adviser if there is complexity that I know nothing about.

On the face of what you have told me though, scrimping and saving when you seem to have already covered your retirement income seems nuts to me.

I can say one thing with absolute confidence. There are no guarantees about how long we live. I've had five close mates from university die in their 50s and mid-60s in the past few years.

Sure, it is prudent to create wealth for retirement, but if you have already achieved this, which I suspect you have, it is time to focus on today.

You have worked and saved hard. Have some fun.

As I have said to Money readers for about 40 years, aiming to be the richest person in the graveyard is a silly plan.

What to read next

• How to plan your countdown to retirement
• The most dangerous number in retirement planning
• Can your super fund replace a financial adviser?
• How much super you need for a comfortable retirement now
• Why one-off financial advice is so hard to get

Not all employers do the right thing by their employees and pay the full 12% superannuation guarantee they are legally required to.

Each year, billions of dollars in superannuation owed to Australian workers is never paid. Industry Super Australia estimates unpaid super remains a multi-billion-dollar problem, leaving millions of workers short-changed when they retire.

Unpaid super is often described as wage theft, because it is money that belongs to you and should already be sitting in your super account.

Which workers are most affected by unpaid super

Workers in accommodation, construction and food services are among the most likely to miss out on superannuation payments.

Treasury analysis has shown unpaid super is far more common among small businesses, particularly employers with fewer than 30 staff and turnover under $10 million.

If you work casually, part-time, or change jobs regularly, you are at even greater risk of not being paid correctly.

The superannuation guarantee rate for 2026

The superannuation guarantee rate is now 12%.

The rate increased to 11.5% from July 1, 2024, then rose again to 12% from July 1, 2025, where it will remain legislated for now.

If your employer is paying anything less than 12% of your ordinary time earnings, they are underpaying your super.

How often employers must pay super in 2026

Until payday super starts, employers must pay super at least four times a year.

Some employers choose to pay super monthly or with each pay cycle, but this is not yet mandatory.

Super payment deadlines you should know

Super payments must be received by fund by:

• April 28, for work done between January 1 and March 31
• July 28, for work done between April 1 and June 30
• October 28, for work done between July 1 and September 30
• January 28, for work done between October 1 and December 31

If there is no payment in your super account on or before these dates, it is a red flag.

How to check if your super is actually being paid

Do not rely on your payslip alone. A payslip showing super does not mean the money has reached your fund.

To properly check:

• Log in to your super fund account
• Look for employer contributions, not just balances
• Match the amounts paid to your earnings and the 12% rate
• Check payment dates against quarterly deadlines

If payments are late or missing, follow up immediately.

What to do if your employer hasn't paid your super

1. Raise it with your employer

Ask why your super has not been paid.

Mistakes do happen, such as incorrect fund details or payroll errors, and these can sometimes be fixed quickly.

Make sure you keep records of emails, messages and payslips in case the issue escalates.

2. Report unpaid super to the ATO

If your employer does not resolve the issue, you can lodge an employee notification with the Australian Taxation Office.

The ATO enforces superannuation law. It can audit the employer, order back payments with interest, and apply penalties.

If an employer still fails to pay, your records and correspondence may be vital evidence in any future legal action.

Not all unpaid super is recovered, particularly if an employer becomes insolvent, which is why early action matters.

Unpaid super can also mean no insurance cover

One of the most serious consequences of unpaid super is losing insurance.

Most Australians have life insurance and total and permanent disability insurance through their super fund. In many cases, this cover only remains active while employer contributions are being received.

If contributions stop and you die or become disabled, your dependants may not receive insurance payouts unless they pursue legal action.

Insurance rules vary between funds, but regular super payments are often what keep cover in force.

Why unpaid super is hard to detect

One reason unpaid super is so widespread is that it is not paid with each wage.

Quarterly super payments mean delays, making it harder for workers to track and easier for employers to miss or avoid payments. It also slows detection and recovery by the ATO.

This is about to change.

Payday super starts on July 1, 2026

From July 1 2026, employers will be required to pay superannuation at the same time as wages.

About 9 million Australians are expected to benefit from payday super, which will significantly reduce unpaid super and improve retirement balances.

Treasurer Jim Chalmers has said a 25-year-old median income earner could be around $6000, or roughly 1.5%, better off at retirement under payday super because contributions are invested earlier.

More frequent payments will also reduce payroll risk for employers by preventing large unpaid super debts from building up.

What workers should do now

Until payday super begins, it is critical to keep checking your super account after each quarterly deadline.

If your super is late or missing, act fast. The longer unpaid super goes unnoticed, the harder it can be to recover.

Older Australians retiring without owning a home will need about double the superannuation of those with a paid-off property, if they want to enjoy a comfortable lifestyle, according to advocacy group Super Consumers Australia.

The 2026 Retirement Savings Targets for Renters report calculated that a typical single retiree who rented required $659,000 in super to ensure a financially secure future, compared to $322,000 for a retiree who occupied their own mortgage-free property. A couple renting would need a combined $786,000 in super compared to $432,000 for a couple who were homeowners.

Only 10% of retired homeowners were in financial stress, compared to almost half of retired renters, the report's author Katrina Ellis said.

"It wasn't a pretty picture and showed that retired renters were more than three times more likely to be in financial stress than homeowners," said Ellis, the deputy CEO of Super Consumers Australia.

 
How homeownership can improve retirement income

This latest study is another compelling argument of why it's vital to aim to have a fully paid off home when you retire.

Not only does it give you a roof over your head, it can also be used to improve your lifestyle in retirement. Many Australians enter retirement with more wealth tied up in their home than in their super and some may need to release some of this equity to give them more cash to enjoy their leisure years.

Two factors elevate the importance of homeownership in retirement planning. One is the fact that the family home is tax free - you pay no capital gains tax when you sell it. The other is that under our retirement system the family home is exempt from the assets test in assessing pension entitlements.

Why the family home matters under Australia's retirement system

Australia's retirement system is underpinned by three potential sources of income, a means-tested age pension, compulsory superannuation and voluntary savings inside and 
outside super.

The government's 2020 Retirement Income Review explicitly included homeownership as part of the third pillar.

"The home is the most important component of voluntary savings and is an important factor influencing retirement outcomes and how people feel about retirement. Homeowners have lower housing costs and an asset that can be drawn on in retirement. Using relatively small portions of home equity through the Home Equity Access Scheme (HEAS) or similar equity release products can substantially improve retirement incomes for many people," according to the review.

What is a home equity release loan or reverse mortgage?

A home equity release loan, also known as a reverse mortgage, allows you to convert some of your home's value into cash for other purposes - renovations, travel, funding in-home care, helping family or simply meeting day-to-day living expenses - all without needing to sell the property or downsize.

The loans can usually be accessed as a lump sum, regular income or a line of credit.

These products are offered by lending companies and the Commonwealth government, which runs the HEAS through Services Australia. One big advantage of the HEAS is its low interest rate, 3.95% compared with 8% to 10% from private sector lenders. Its drawbacks include the fact it can take some time to be approved - often two to three months - and it's more restrictive than some other products in the marketplace.

It's only available to people of pension age - currently 67 - and the maximum amount available via the scheme is 150% 
of the maximum pension rate. However, a retiree can choose to withdraw a smaller amount, can stop or start payments at any time, and can pay back the loan at any time. The HEAS was re-named and extended to self-funded retirees in July 2019 and the take-up has increased.

From July 2022 it was further extended so participants could also access up to two lump-sum advances a year, capped at 50% of the maximum annual rate of the age pension. At the same time a no negative equity guarantee was introduced, ensuring that the loan amount owed will not exceed the market value of the property used as security.

There are risks involved in all these schemes and it may have a long-term impact on your finances, so it's usually worth getting independent advice before you proceed.

What are the risks of using home equity in retirement?

If borrowing against your home is not for you, downsizing also provides another way of boosting your retirement income. This involves selling your current home and buying another and, in particular, can suit those who would prefer smaller and more convenient homes as they age.

The big drawback is that selling and buying is expensive. Costs include stamp duty, real estate agent fees and moving costs. Stamp duty on a $750,000 purchase, for example, varies from a low of $19,208 in the ACT to $40,070 in Victoria.

A plus for older people - 55 or older - is that if you sell a family home you have lived in for at least 10 years, you may be eligible to put some of the process of downsizing into your fund. This can amount up to $300,000 for each person and there is no upper age limit on taking advantage of this rule.

Can renting out part of your home increase retirement income?

If neither downsizing or borrowing against your home appeals, you could consider raising additional income by renting out part of your home.

This could work, in particular, if you have a home that would easily convert to dual occupancy or you're a person who doesn't enjoy living alone.

Remember it's important to make sure you are comfortable with anyone who is sharing your home and check out any potential tenants. You could also consider providing short-term accommodation.

Keep in mind that renting out part of your home will have tax implications, both income and capital gains, and could also impact any pension entitlements you receive from the government. You may need professional advice or check out the free financial advice information service provided by Services Australia.

How the Home Equity Access Scheme works

How it works is illustrated by case studies on the Pension Boost website (pensionboost.com.au). This company helps retirees apply for the HEAS for a fee ($440 for a pensioner and $660 for a non -pensioner).

It says it refunds these fees if the application is unsuccessful. And, of course, you can also apply for the scheme yourself through your Centrelink online account linked to MyGov for no fee. This site also enables you to calculate how much you can borrow.

How one retiree used HEAS to boost her income

One case study on pensionboost.com.au concerns 80-year-old Louise who owns a Brisbane apartment, valued at $525,000.

Louise is a single full pensioner who needs extra income to help pay for in-home care. It's estimated she can draw down $13,822 a year for 24 years with no impact on her pension, giving her a total annual income of $41,496 a year. After 10 years she would still own 73% of her property and after 20 years, 45%.

This week on The Friends With Money podcast, Money magazine's Ryan Johnson speaks with licensed Australian financial adviser and author Helen Baker to explain family trusts in plain English and challenge the idea they're only for the ultra-wealthy.

They break down how a family trust is its own entity, the roles of beneficiaries, trustees and the appointor (who holds ultimate power), and why separation of control matters for potential asset protection.

Helen clarifies that the trust owns the assets and beneficiaries generally have rights to income or capital distributions, not ownership, and discusses when a trust may be worth considering (often with significant funds, varying household incomes, or positive income/capital), how tax flexibility works via distributing income across beneficiaries, the need to distribute to avoid the trust being taxed at the top rate, costs to set up and run, risks of poor management, and why investment suitability and liquidity matter.

Episode timestamps

00:00 Family trusts explained

02:03 Trust roles breakdown

05:12 Who owns what

06:13 When trusts make sense

08:23 Tax flexibility in action

10:25 Your advisory team

11:57 Risks and penalties

12:56 Costs to run and unwind

14:55 Choosing investments

16:49 Who trusts are for

Listen to this episode of Friends With Money

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Subscribe to Friends With Money

Subscribe wherever you get your podcasts

Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

Where can I listen to the podcast?

You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

Is the podcast suitable for beginners?

Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.

What topics does the podcast cover?

The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.

How often are new episodes released?

New episodes are released weekly, so you can stay up to date with the latest financial tips and trends.

Can I watch episodes with captions?

Yes, full episodes with closed captions are available on YouTube.

Why subscribe to the Friends With Money podcast?

Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

Subscribe to the Friends With Money podcast today and start learning when it suits you.

Today's 60-64-year-olds have average super savings of $355,451. On the face of it, these seniors are well placed to enjoy a decent retirement. But there's a catch. We're living longer, have higher expectations for retirement and the age pension doesn't kick in until 67 years. As a result, our super has to do a lot of heavy lifting.

Australians are concerned about this. Research by UniSuper shows more than 90% of us worry about retirement. These uncertainties help explain why retirement planning is the leading driver for Australians seeking financial advice. That's great for those who can afford it, but many can't.

The median cost of ongoing advice in 2025 was $4668, according to online financial advice service Adviser Ratings. As a result, one in two Australians has never received advice on preparing for retirement.

The good news is super funds are filling the gap. Many have expanded their advice offerings, supported by new legislation that allows funds to provide limited personalised advice and deduct the cost from a member's account.

Every bit of quality advice helps. Aware Super reports members who received financial advice had, on average, 22% more in super, which equates to an extra $150,000 in retirement savings. With this in mind, let's look at the advice available through super funds.

What advice can super funds legally provide?

Most funds offer general advice through a phone or video call. It's not entirely free, as the cost is included in fund fees. But you've already paid those fees, so why not take advantage of the service?

General advice is limited to topics relating to your super and your fund's product offerings. While it doesn't consider your personal circumstances, it can help you get to know your super better.

What is limited personal advice through super funds?

For single-issue queries, such as investing in a transition-to-retirement account, your fund may offer non-personalised limited advice. The lines are blurred on cost. Some funds charge for this advice, others don't.

More broadly, several funds provide advice that sits somewhere between general and comprehensive advice. Cbus Super, for example, offers Advice Essentials Plus. It costs $990 and gives members access to retirement planning advice relating to Cbus Super products, potentially even taking into account the needs of a non-member spouse or partner.

Brighter Super offers a retirement health check at no additional cost - the service is covered by existing administration fees.

Members receive a plan showing their retirement outlook, including age pension eligibility and how long their savings could last.

How much does comprehensive retirement advice cost?

Comprehensive advice, which takes your full situation into account, is regarded as the gold standard. It may be delivered by a fund's in-house advisers or through a referral to an external service. The common thread is that it doesn't come cheap.

As a guide, Hostplus members can have their progress towards retirement assessed for a fee of $295. From there, comprehensive advice costs from $1500 to $4000.

At Vision Super, fees for comprehensive advice start at $2090. Fees for Brighter Super members start at $990.

Can digital tools replace retirement advice?

The thing is, you may not need to pay for advice at all. An increasingly sophisticated range of digital tools is available, particularly through the larger funds.

Aware Super, for example, offers My Retirement Planner, an online calculator that uses a member's current details to answer three key questions:
• How much money do I need in retirement?
• What will my super balance be when I retire?
• What will my retirement income look like, including possible age pension payments?

Building on this, in late 2025 Aware Super launched Retirement Manager. It's a digital tool that helps retirees set up an income stream, choose an investment option and model different income and spending scenarios.

Steve Travis, Aware Super's group executive for member growth, says Retirement Manager "takes the stress out of retirement planning, giving members the power and flexibility to create a personalised plan that can be easily adjusted as their needs and circumstances change".

Other funds are also investing in digital advice. MLC Super members can use Money View, an online tool that shows whether you're likely to have enough for retirement. It's backed up by MLC's Retirement Projector, which reveals whether your super is retirement ready.

Hostplus, winner of Money's 2026 Best of the Best award for Innovation in Digital Advice Tools, has developed SuperSmart, an education-led digital tool. Hostplus's Maurizio Lombardi describes SuperSmart as "a one-stop shop for members looking to uplift their super knowledge or seek advice, all seamlessly integrated to match individual goals and preferences".

Are super fund seminars worth attending?

Digital advice can be convenient and user-friendly. But there can be something very reassuring about sitting in a room full of like-minded people, listening to an expert explain the finer points of super and retirement planning.

That's exactly what fund seminars offer. Widely run by the major funds and usually free of charge, these events are a chance to learn, ask questions and walk away better informed.

How to get retirement advice through your super fund

The bottom line is the advice options provided by a super fund should be on your radar. They're likely to become increasingly important as you approach retirement.

As a starting point, pick up the phone and talk to your fund. The advice you receive may cost nothing, but it could mean a more rewarding retirement.

Correction: A previous version of this story incorrectly stated that a fee applied to the Brighter Super retirement health check. The information has now been updated.

Debt trouble rarely arrives with a show of fireworks. It turns up as an email, a late fee, a missed direct debit - then you're suddenly in a conversation where the other side sounds certain and you're trying to work out what happens next.

Australia's debt pile is enormous. Australian Bureau of Statistics data puts household debt at $3.33 trillion as at June 2025, with the average household carrying more than $313,000, mostly mortgages. This household debt sits at around 113% of GDP, keeping Australia near the top globally.

Debt isn't automatically a problem. It can bring a first home forward, fund study, grow a business or smooth a big cost over time. But when the debt goes bad, people come knocking.

Laurence Barlow was one of these knockers, a former debt collector who ran large teams collecting for banks and finance companies. That's why he's switched sides, launching Small Business Reboot to help people avoid the knock and know how to answer the door if it arrives.

"I've lost track of the number of people we've had to talk back from the edge because they're scrambling to pay creditors and save the home," says Barlow.

The Australian Financial Security Authority says creditor petitions (a court debt-enforcement process that ends in bankruptcy) climbed from a COVID-era low of 671 in 2020-21 to 1447 last year. The Australian Taxation Office was the largest petitioner by both volume and value, lodging 247 petitions worth $184 million.

"Whether it's a bank or the taxman, they want to know there's a plan," says Barlow. "The earlier you engage, the more options you usually have."

Q&A with Laurence Barlow on debt collection, rights and next steps

What triggers a debt collection notice in Australia?

When you take out credit, you enter a legal contract. It sets out how much you borrowed, the interest, fees, repayment dates and what counts as a default.

A debt collection notice is usually triggered when you miss a repayment or another breach. You'll get reminders, then a formal demand, then escalation to a specialist team or an external collection agency if nothing changes.

A default notice isn't a court order but the lender telling you what's wrong and giving you 30 days to fix it before enforcement.

What should I do in the first 48 hours after getting a debt notice?

First, breathe. A debt notice is scary. But then get organised.

Move the conversation into writing. You need a paper trail.

Start a folder and build a timeline: dates, amounts, who contacted you and how, what was said and how you responded.

Ask for the documents. Get a copy of the contract or agreement and a statement showing the amount, how it was calculated and what you've paid. You're checking whether the paperwork matches what you're being told.

What can debt collectors legally do?

When your account slips, my job as a debt collector was to open a dialogue and get things grounded in facts and process. I could be self-employed or hired by a lender or a debt collection agency.

I would contact you to seek payment, offer a settlement or a payment plan, or check why an agreed plan wasn't kept. If you're on a plan, debt collectors can follow up to review it and explain the consequences if it isn't working.

If the debt is secured against goods, and only after the proper legal steps, they can organise repossession - though that's never a surprise visit at that point.

What can't debt collectors do under Australian law?

There's plenty that debt collectors must not do - we weren't just going around hustling people. We were at pains to not harass people or use any overbearing tactics.

We could only call Monday to Friday between 7.30am and 9pm, no more than three times a week and never on public holidays. We generally only meet face-to-face if no one has responded to our calls.

We couldn't trespass, mislead you or discuss your debt with someone else without your written permission.

Finally, we were trained to not take unfair advantage of vulnerabilities. If someone was ill, elderly, living with a disability or clearly out of their depth, collectors are expected to take that into account and offer realistic options.

How can I dispute a debt?

If something doesn't add up, dispute the debt in writing and ask for evidence.

For most financial firms, you can raise a dispute through the Australian Financial Complaints Authority. Once you've lodged a genuine dispute, collection should pause while it's addressed.

You can dispute a debt if it's not yours, you don't owe the full amount or you have some other legal grounds to challenge it.

If it's more than six years (or three if you're in the Northern Territory) since your last debt payment - and there's not a court judgement against you - you can also dispute it.

If you've already paid back the debt, include proof of payment.

What if I'm struggling to pay my debt?

If you're struggling to pay, hardship isn't a moral failure but a legal pathway. Work out what you can genuinely afford. Use a simple budget (Moneysmart's budget planner is a good resource) and be honest about your essentials and other debts.

If there's nothing spare, call the National Debt Helpline for free, confidential support. A financial counsellor can help you map options and draft words to your lender.

Next, ask your lender for hardship in writing. Under the National Credit Code you can lodge a hardship notice and change your repayments - for example, smaller payments for longer, or a short pause with a catch-up plan.

Lenders must consider the request and respond within set timeframes. While it's assessed, pay what you can, don't agree to an amount you can't sustain and get any deal in writing.

What are some common pitfalls to avoid?

• Ignoring the notices

Ignoring notices escalates the process and is often when debt collectors get involved.

• Acting while overwhelmed

Panic makes expensive promises. Stabilise first: get everything in writing, gather documents, slow the timeline and put a sustainable plan in place.

• Lying to the debt collector

Be honest about your financial situation, including other debts. Being uncooperative or misleading usually makes things worse.

Where to get free debt help in Australia

Call the National Debt Helpline to speak to a financial counsellor who can assess your options and, if needed, talk to your creditor.

If it's legal - court papers, repossession, a disputed contract - contact your local Community Legal Centre or Legal Aid for free advice. ASIC's Moneysmart site explains how counselling works and links to services in your State.

And if it's involving small business debt, remember a personal guarantee can tie business borrowing to personal assets. Get advice early, especially before you sign anything new.

How to read a debt notice, step by step

Start at the top and work down like you're checking a bill.

• Sender: Is it your lender, a collector acting for them, or a law firm?
• Type of notice: Reminder, formal demand, default notice, or court document (very different stakes).
• Debt details: Account or contract number, what the debt relates to, and whether it's in your name.
• Amount claimed: Is it itemised (principal, interest, fees, legal or enforcement costs) or just a lump sum?
• Dates: When the payment was missed, the date of the notice, and the 'pay by' or 'remedy by' deadline.
• Next steps: What they say they'll do if you don't respond (collections, default listing, repossession, court).
• Contact and response method: Where they want you to reply and whether they include a reference number.

Case study: How a small business debt can threaten the family home

John and Marie ran a suburban e-bike shop. They'd done the hard yards and paid off the family home, the dream scenario.

Then the COVID-era supply mess hit. Stock arrived late, freight costs jumped, demand faltered and cashflow got ugly.

To keep the doors open, they took out a business loan and, like many owners, signed personal guarantees. They didn't fully grasp what that meant at the time. If the business couldn't pay, the debt could follow them home.

When the numbers stopped adding up, attempts to restructure the small business debt were met with talk of bankruptcy and selling the home.

"We were panicked," says Marie. "We wanted to retire in a few years and the thought of starting again was terrifying."

They were referred to Barlow, who says the first step was to slow everything down.

"Once we got the paperwork, we could separate what the lender was saying from what the documents actually allowed," says Barlow.

"We put a workable plan on paper, got the conversations into writing and took the heat out of it, helping protect their home when it came time to negotiate."

If you or someone you know needs support
National Debt Helpline: 1800 007 007
The Small Business Support Line (1800 413 828)

An estimated 6.2 million Aussies workers are set to land an instant tax deduction worth up to $1000.

It means workers will be able to knock a thousand dollars off their taxable income without having to stump up receipts.

The idea was first mooted in early 2025, as part of Labor's election promises, when they proposed a $1000 instant tax deduction for work-related expenses.

Federal Treasurer Jim Chalmers now says it's all about "making the tax system simpler and delivering more lasting cost-of-living relief".

The $1000 instant tax deduction will save time and money at tax time.

But there is a catch.

When you can claim the $1000 tax deduction

It won't kick in until next financial year.

You'll only be able to claim the $1000 deduction when you lodge your 2026-27 tax return in the second half of next year.

This is not a $1000 handout

A tax deduction lets you save on tax. It is not the same as a tax refund.

As a guide, 6.2 million workers - close to two in five taxpayers - are expected to benefit from the $1000 instant tax deduction.

However, the average tax saving will be around $205.

Around 3.3 million women are expected to pocket a tax saving of $200. The 4.5 million workers who earn less than $100,000 in taxable income, will see a tax saving of $195.

If you opt for the $1000 instant tax deduction, you can still claim other costs.

Donations to charity as well as union fees and memberships to professional associations, plus other non-work related deductions (like, say, investment expenses) can be claimed separately.

Remember, you'll need proof to claim these deductions.

Is it a good deal for Australian taxpayers?

The $1000 instant deduction builds on the $300 deduction that can already be claimed if you don't have receipts for work-related expenses.

An instant $1000 deduction sounds appealing but it could see leave workers seriously short-changed on their tax refund.

Tax Office data shows that Australians claim, on average, around $2700 in work-related costs - far more than the proposed new standard deduction.

Of course, if your work-related tax deductions next financial year total more than $1000, you can choose to claim these in the normal way, and give the instant $1000 deduction a miss.

The trouble is, you need to hold onto work-related receipts to know if this is the case, which reduces the savings on paperwork being touted by the Treasurer.

The bottom line is that if you normally have very few work-related deductions, the $1000 instant tax deduction may have the potential to boost your tax refund.

On the flipside, if you normally claim a large volume of work-related costs, or your work expenses typically total more than $1000, or you're simply not sure, it's still important to hang onto receipts to maximise your tax refund.

A new report reveals the strength of Australia's private credit sector compared to global markets, which is attracting substantial offshore capital, particularly from high-net-worth individuals, family offices and insurance companies.

This is according to the Australian Investment Council's (AIC) 2026 Australian private capital yearbook, which found that the country's economic outlook relating to tariffs, geopolitical tensions and demographic factors puts it in good standing among global private credit investors.

Private wealth investors are expected to deploy more capital to the sector, with "substantial potential" for large Australian private credit managers to attract Asian and European money. However, this is contingent on better promoting Australia's diversified economy internationally.

Preqin estimates there is $5.4 billion in closed-ended private credit funds, and a further $40 billion in net asset value in open-ended funds.

"The influx has been both beneficial and challenging - while validating the market's appeal, it has intensified the need for deployment discipline as managers compete to put capital to work," the report read.

"The sector anticipates accelerated growth driven by diversification demands from investors seeking alternative return sources."

Conversely, Australian investors are investing "significant capital" to global private credit funds.

Several issues in the local private credit market, however, play at large. This includes the need for deployment discipline and better enhanced transparency.

"A critical debate centres on appropriate fund structures for private credit. Do private credit's shorter-duration assets make it better suited to open-ended funds than traditional private equity? If so, private credit managers need to maintain rigorous discipline in managing capital flows and provide clear communication about redemption opportunities," the report said.

"There is broad emphasis on the importance of investor education around fund mechanics and the fine print governing capital access."

Overall, the Australian private capital sector reported assets under management (AUM) at record levels of $161 billion.

Private equity and venture capital together account for $72 billion. Assets across real estate, infrastructure and natural resources came to $83 billion.

Australian private capital funds also outperformed globally, delivering a return of 12.7% per annum, including both realised and unrealised returns.

Private equity saw $13.6 billion in deals across 147 transactions in 2025, with technology accounting for about one third.

AIC chief executive Navleen Prasad says the yearbook shows private capital is playing a bigger role in funding Australia's future, but that regulatory friction and uncompetitive policy settings risk pushing investment offshore.

"Other countries are falling over backwards to court international capital, including our world-class superannuation pool. Presenting a Team Australia front is smart, but where are the much-needed reciprocal programs selling Australian opportunities to international investors?" he says.

In recent years, the study found family offices became more active private capital investors, though in volume terms, institutional investors, including superannuation funds, still dominate.

Family offices' demand for venture capital is more pronounced. Almost half of all venture capital investors studied between 2021 and 2025 were active Australia-based family offices.

This article first appeared on Financial Standard

What if next week's CPI numbers aren't about inflation, but rather the system we're using to control it, which is starting to break?

April 29 could mark a major turning point for Australia, not because of the number itself, but because of what it forces policymakers to admit.

For the past two years, the playbook has been simple: raise interest rates, slow demand to bring inflation down.

But next week's CPI lands at a time when inflation is no longer being driven purely by demand.

It's being shaped by forces we can't easily control, such as energy dynamics, global supply chains, and structural constraints within Australia's economy. That's what makes the release of next week's data different.

If inflation comes in hot, the default response is to keep interest rates high, and maybe even push them further.

But here's the problem: higher interest rates don't produce more energy, fix housing shortages, or improve productivity. They simply compress the parts of the economy that are still functioning. In other words, policy risks becoming misaligned with the problem it's trying to solve.

For everyday Australians, this is where the real shift is happening. It's no longer just about higher repayments or cost-of-living pressure, it's about the structure of the economy changing underneath them.

If rates stay high to fight supply-driven inflation, growth starts to slow. Investment weakens, hiring slows, and the economy loses momentum in places unrelated to the original cause of inflation.

That's a very different environment from what people are used to, one where things don't collapse suddenly but quietly stagnate.

On the other hand, if CPI shows signs of easing, it creates room for policymakers to pause, but even that comes with a catch. A pause doesn't fix the underlying issues either, it just delays the adjustment.

That's why next week's CPI numbers matter more than most. It's not just a read on inflation, it's a test of whether the current strategy still works or whether Australia is heading into a period in which inflation remains elevated while growth slows anyway.

That's the uncomfortable scenario no one wants to say out loud.

Because if that's where we're headed, the implications are bigger than interest rates. It reshapes how Australians invest, businesses plan, and how the economy grows over the next decade.

So, when this number drops, don't just look at whether it's higher or lower than expected. Look at what it forces the RBA to do next, because that decision will tell you far more about the future than the inflation figure itself.

What are the best and worst-performing sectors this week?

The best-performing sectors include Information Technology, up more than 11%, followed by Real Estate, up more than 2%, and Materials, up more than 1%.

The worst-performing sectors include Industrials, down more than 2%, followed by Financials and Utilities, both down more than 1%.

The best-performing stocks in the ASX top 100 include Wisetech Global, up more than 19%, followed by Pro Medicus, up more than 17%, and Xero Limited, up more than 14%.

The worst-performing stocks include A2 Milk, down more than 18%, followed by Downer EDI, down more than 9%, and Ansell Limited, down more than 7%.

What's next for the Australian stock market?

The market pushed higher again this week, although in a much more subdued fashion, finishing Wednesday up just 0.19%. On the surface, it may not look like much, but context is everything.

Only a few weeks ago, the index was down more than 10%, and now, after a sharp three-week recovery, we're sitting just a few percentage points off the all-time high. That's a strong statement about both the market's resilience and the speed at which sentiment can shift.

This week, the technology sector stole the spotlight, surging more than 11%, which shouldn't come as a surprise.

As the market rotates back into a risk-on environment, tech is often one of the first sectors to rebound sharply, especially after the sustained pressure it's been under over the past year. When sentiment turns, these beaten-down sectors can move quickly.

From a broader perspective, the market is now back in a healthy upswing, but it's not without its challenges.

The 9200 level is looming as a significant resistance zone, and it wouldn't be unusual to see the price hesitate or even drift sideways as it tests this area. Strong rallies often need time to consolidate, particularly when they've been as swift as this one.

That said, there's still a considerable amount of capital sitting on the sidelines, and that tends to act as a cushion on any pullbacks.

Buyers are looking for opportunities, and that underlying demand can help support the market even if momentum slows in the short term.

The levels remain clear. A sustained break above 9200 would open the door for a continuation of the uptrend, while 9000 now stands out as a solid support level.

What makes this rally particularly interesting is the backdrop.

Ongoing geopolitical tensions and lingering recession concerns haven't disappeared, yet the market continues to push higher. It raises a fair question, is this smart money confidently positioning for what's ahead, or are they underestimating the risks still in play?

As always, the answer won't come from opinions or headlines, it will come from price.

Stay focused on the levels, respect the momentum, and let the market confirm the next move.

The war in the Middle East has dominated headlines since late February, when US and Israeli strikes on Iran triggered a conflict now into its seventh week.

The Strait of Hormuz has been closed, global oil supplies disrupted, and inflation is running high.

For many investors, the instinct is to sell. This instinct is almost always the wrong one.

Despite the severity of the conflict, the S&P 500 has just closed at a record high.

That is not an anomaly. It is how share markets have typically behaved through major geopolitical events for decades.

The historical pattern

History shows that after major geopolitical shocks, share markets are normally higher 12 months later, and in most cases go on to new highs.

In fact, in 19 of the past 20 geopolitical events since the end of WWII, the S&P 500 has been higher 12 months after the conflict began.

These events include the Korean War, the Cuban Missile Crisis, the Yom Kippur War, 9/11, the Iraq War and Russia's invasion of Ukraine.

Each one felt, at the time, like a reason to get out of the market. In every case, investors who stayed put were better off a year later.

The mechanics are straightforward. The worst of the fall typically happens in the first four to six weeks. After that, the worst-case scenario is already reflected in prices.

Unless an event materially changes the long-term economic outlook, and very few do, share prices begin to recover.

A decline of 10% or more tends to occur every 18 to 24 months. This is simply the volatility investors must accept when they invest in shares.

Recovery from these declines is the rule, not the exception.

Selling out of the market during a conflict requires being right twice, once on the way out and once on the way back in.

As Baron Rothschild famously put it, "Buy to the sound of the cannons, sell to the sound of trumpets."

This is far harder than it sounds. It means selling when things feel fine and buying when panic is at its peak.

Most investors manage the first. Very few manage the second.

A decline in portfolio value has roughly twice the emotional impact of an equivalent gain. That is why so many investors freeze at exactly the wrong moment.

The cost of freezing is significant.

An investor who stayed fully invested in the S&P 500 from 1995 to 2025 earned around 10.3% a year, according to Invesco.

An investor who missed just the 10 best trading days over that period earned a much lower 7.4% a year.

Those best days tend to cluster during periods of fear, which are the very moments investors feel most tempted to sell.

We saw this clearly during COVID-19.

After the initial lockdowns in March 2020, no-one could have predicted the share market would rise by 37% over the following 12 months.

Those who panicked and moved to cash missed the recovery.

Later research showed more than half of super fund members who switched investment options during this period would have been better off doing nothing at all.

What actually drives returns

Short-term price movements are driven by headlines. Long-term returns are driven by economics.

Over the next few years, the numbers that matter are unemployment, GDP growth, corporate earnings and inflation.

These determine whether businesses can grow profits, whether consumers can keep spending, and whether central banks raise or cut interest rates.

Wars and geopolitical events rarely change the long-term direction of the share market.

The takeaway

Any investment in shares should be made with a minimum three-year view, and ideally five to 10 years.

On that timeframe, the current conflict, like every conflict before it, is very unlikely to matter for returns.

Wars are devastating for humanity, but share markets are forward-looking and work through shocks far faster than most investors expect.

The S&P 500 reaching record highs during the conflict is not callousness. It reflects the collective judgement that earnings will still be growing 12 months from now.

The most effective response is usually the dullest one.

Keep a long-term view, stay invested and let fundamentals do the work. Time in the market beats timing the market.

One of the unexpected joys of being a father to two boys in their early twenties is stepping into the role of lead negotiator when a car needs to be purchased. It is enormously entertaining.

The modern car dealership is a living laboratory of behavioural economics.

It is a carefully engineered environment of polished floors, flattering lighting, warm coffee aromas and strategically placed price tags designed to stretch your expectations before you have even opened your wallet.

For someone who has spent a lifetime studying decision-making, it feels less like shopping and more like field research.

Why being willing to walk away changes everything

After a particularly enthusiastic Queensland hailstorm turned my son's beloved Mazda into something resembling a prop from an action film, we found ourselves in a dealership on a bright Saturday afternoon.

He had already found a near identical replacement, just a few years younger and with far fewer kilometres. He was in love.

From my perspective, this was a liability.

The first rule of negotiation is simple. You must be able to walk away. Salespeople can detect emotional attachment the way sharks detect blood.

How dealerships reset your sense of what a car should cost

Before we even met our opponent, the environment went to work. We were invited to wait in an exceptionally comfortable lounge directly opposite a curated display of their most expensive vehicles.

Prices glowed from digital screens in a way designed to recalibrate your sense of normal. This is anchoring at its finest.

If you first see six-figure numbers, five figures start to feel modest. It is clever, subtle and entirely intentional.

Then our salesman approached. Young. Slightly ill-fitted suit. Fresh from what I imagine was an intensive course titled Advanced Techniques in Persuasion and Complimentary Coffee Distribution.

Perfect. Let the games begin.

Why emotional attachment weakens your position

The test drive was designed to trigger attachment.

He wanted us to fall in love with the vehicle.

So we did the opposite. We pointed out every rattle, every scratch, every slightly questionable sound.

Not because we disliked the car, but because we needed to signal detachment. Desire weakens your bargaining position. Visible indifference strengthens it.

How freebies trigger pressure to overpay

Throughout the process he offered us coffee, cake, pens and various small tokens of hospitality.

This was reciprocity bias at work. When someone gives us something, however small, we feel an unconscious pull to return the favour.

We politely declined. Not because we do not enjoy coffee, but because we did not wish to feel even microscopically indebted over several thousand dollars.

Why written numbers feel more serious than they are

Then came the ceremonial writing of numbers on paper. It was a fascinating ritual.

His handwriting suggested he had lived most of his life in the presence of a keyboard, yet he persisted because most sales training states that the act of physically writing numbers creates a sense of weight and seriousness.

How low offers reveal the real price

We responded with an offer that was uncomfortably low. Not insulting. Not absurd. Just low enough to make him shift in his seat.

I have always told my boys that your first offer should cause mild discomfort. That is how you locate the true negotiating range.

The theatre intensified when he disappeared to speak to his manager.

We knew this meant either a bathroom break or a chocolate biscuit.

Upon his return to let us know our offer was too low, I excused myself to call my wife about whether we should exceed our planned budget.

In reality, that involved a very passionate discussion about dinner plans. Staying visible but out of hearing range, frowning thoughtfully, signalling reluctance. Negotiation is as much performance as mathematics.

After several rounds of this polite choreography and three separate attempts to stand up and leave, he returned with the news that our price had been accepted.

It was significantly below the asking figure.

When we finally left the dealership with the signed contract, there was much joy and high-fiving.

Not because we had won something grand, but because the process had worked exactly as behavioural economics predicts it will.

What behavioural economics teaches us about buying a car

What does this teach us about negotiation?

First, environments matter.

Anchors influence expectations long before numbers are discussed.

Second, emotion is leverage. If you fall in love, you cede power.

Third, reciprocity, scarcity and authority cues are not abstract theories found in textbooks. They are active forces shaping actual decisions in real time.

Finally, the ability to walk away is not just strategic theatre. It is psychological armour.

From a behavioural economist's perspective, negotiating the buy price of a car is less about clever lines and more about understanding impulses. Sales systems are designed to trigger them.

Good negotiators notice them. Great negotiators regulate them. When you can separate desire from decision, pause before reacting and remain detached from the outcome, you move from being steered by the process to steering it yourself.

And that, as it turns out, is a lesson far more valuable than a slightly discounted Mazda.

Amid Australia's home building boom, Zeher Khalil has become its most recognisable critic. Founder of Site Inspections and better known as the TikTok Inspector, he roams construction sites in a SWAT-like vest bristling with tools, drones buzzing overhead, calling out defects to an audience of millions. He has catchphrases, merch and a social media following that would make lifestyle influencers jealous. But behind the viral moments is a meticulous operator, calling out bad actors who exploit consumers and chip away at trust in Australia's most cherished asset, the family home.

Australia's home construction industry is, to borrow Zeher Khalil's favourite word, a shemozzle. You wouldn't know it from the paperwork. Compliant. Within tolerance. Approved for handover. Those were the words on the independent inspection report for one of Khalil's own builds, a verdict that should have reassured him. Instead, it left him unsettled.

He had expected scrutiny and to be made to defend his actions, but the bloke was just ticking boxes. "I found myself questioning the findings," he says. "It said the work was compliant, but I thought it hadn't gone hard enough."

For Khalil - a licensed builder with an engineering background - the issue was the lack of accountability. If compliance could be signed off without interrogation, what exactly was being verified? If the inspector was not looking into the detail, who was?

"That's when I realised the inconsistencies and knowledge gaps weren't just happening on building sites," he says. "They were happening during inspections too."

@siteinspections This $900,000 home dropped to just $175K after major defects were uncovered. The certifier approved it without key compliance certificates. The builder lawyered up and sent his own inspector who claimed everything could be fixed for ~$7,000. The insurance company quoted over $80,000 just to cover part of the repairs. Then the council gave the family 30 days to fix it or vacate. We weren't buying it, so we paid the builder a visit and uncovered one of the most shocking property investigations we've ever done. Watch the full story and learn how to protect yourself. #thetiktokinspector #building ♬ original sound - The TikTok Inspector - Site Inspections

Why Australia's building inspections fail buyers

Khalil began to assess every door, nail and waterproofing membrane, and traced each defect he found back to a specific clause in the relevant code or Australian standard.

"I treated it like detective work," he says. "If something was wrong, I wanted the exact why and the exact rule."

Soon after, he qualified as a building inspector - the expert prospective homeowners rely on to identify any faults before they put in an offer to buy. However, it wasn't until he turned the camera on the inspection process, and on himself, that everything changed.

Inside a building inspection with the TikTok Inspector

The drone rises slowly above a half-finished home in Preston, Melbourne's north. From the street, it looks complete. Timber frames are up and the roofline straight. Tiles neatly laid. But from above, something's not quite right.

The TikTok Inspector zooms in. Wedged into the roof structure is a length of timber that doesn't belong - greyed, cracked and visibly aged. The wood appears weathered, inconsistent with the new structural framing surrounding it. Yet the stage had already been signed off by a registered building surveyor.

"You've got to be kidding me," the TikTok Inspector says. "Good from far but far from good."

The footage pans across the site. Nearby, a wooden fence is missing boards.

For the homeowner, who had engaged Khalil for an independent inspection, the moment crystallised a fear that many buyers carry: that the biggest problems in a home are often the ones you can't see.

About 70% of existing homes have building quality problems, according to the Australian Housing and Urban Institute.

In NSW alone, the cost of non-compliant home building is estimated at $700 million per year. Another study of 346 Australian construction projects found that over six years, builders had to redo work 19,605 times to fix defects, costing about 39% of the original contract value.

Why trust is risky when buying a home

For most Australians, a home is the largest financial decision they will ever make, and one largely built on trust. Trust that their home is built to standard and not by rotting wood taken from an old fence out back. Trust that the sign-offs carry meaning.

Khalil had no intention of becoming the TikTok Inspector, only to restore this trust. "None of this was planned," he says. "I had zero intention to build a following or become a public figure."

Social media entered the picture almost by accident when a family member suggested he post videos during the Covid slowdown. Khalil was sceptical. "I thought TikTok was just dancing videos and stuff," he says. "But let's see what happens."

His early posts - voiceovers explaining compliance issues - went largely unnoticed. The information was there but the messenger was not.

"So, one day I thought, let's get uncomfortable," he says. "I turned the camera on myself and explained what I was seeing in my own words."

He uploaded the video and went to bed. "Overnight, the video had tens of thousands of views," he says. "I couldn't believe it."

"The attention was overwhelming. It felt out of control, and honestly, it scared me to the point where I deleted the video," he says.

How TikTok turned inspections into public accountability

The reaction forced him to reflect on something much older than social media.

"I grew up in a family who worked with their hands and took pride in doing things properly," he says.

"There was an unspoken rule in our house: if you're going to do something, do it right, even if it takes more time or effort."

That instinct had shaped his work as a builder. Now, it was shaping something larger. The video took on a life of its own. "I thought the attention was a one-off. But it turned out it wasn't."

Pushback from builders and growing support from homeowners

He kept filming. Each inspection became a form of public documentation, identifying defects, explaining why they mattered, and showing how they could be fixed.

The reaction was immediate, and divided. "There was a lot of criticism - online abuse, trolling, people trying to intimidate me," he says. "I'd never experienced anything like it."

Some of the pushback moved offline.

"There have been many attempts by builders to limit our access to the site," he says. "Some have tried to lock us out. Others have tried to make homeowners sign contracts that exclude me specifically."

@siteinspections A builder tried to stop our inspections and have our video removed. After documenting what happened on a Melbourne job site, an Intervention Order (IVO) was filed against us. The order restricted us from returning to the property and forced the video offline while the matter went before the court. We contested the application. The court has now dismissed the case, confirming that we are free to continue conducting inspections and publishing our reporting. In this video we break down: • What happened when we arrived at the site • Why access to the property was denied • The claims made in the court application • The legal arguments presented in court • And the final outcome of the hearing Our work exists to inform homeowners and raise standards in the building industry. When something goes wrong on a construction site, transparency and accountability matter. Now that the matter has concluded, we can finally share the full story. Watch the inspection that started it all. @The TikTok Inspector @Bastion Legal #siteinspections #tiktokinspector #builders #building ♬ original sound - Site Inspections

Access, however, ultimately sits with the homeowner.

"So long as the homeowner has given the builder a heads-up, the builder isn't legally allowed to deny that access. So, we always get to inspect eventually."

While there was resistance, there was also support. "Homeowners, trades, even people inside the industry were saying, 'Keep going, we need this'."

As the audience and Site Inspections grew, Khalil realised the videos were doing more than attracting attention, they were restoring clarity in an opaque market.

"I treated my camera like a tool to make invisible problems visible and help people understand what they're actually buying," he says. "If I was going to keep filming, it would be to share knowledge. And if attention came from it, that's fine, but it's not the goal."

The tools behind the TikTok Inspector persona

Despite the online persona, Khalil insists the inspections remain the bedrock of the business. His videos come later, often late at night.

"At the end of a long day of inspections, I'd go home, write reports and study. Then, at midnight or later, I'd think, okay, I need to explain this to people," he says.

Much of the early production was improvised. Editing, graphics and voice-overs were self-taught. Some recordings were made in his car, parked in the garage after his four children had gone to bed.

But as time went on and the views and scrutiny snowballed, the operation became more professional.

"Not to chase views, but to make sure what we were putting out was accurate, measured and in the public's interest," he says.

"The inspections drive the content, not the other way around. Social media is a tool. The technical rigour, the standards and the evidence come first."

Khalil does not see himself as an influencer but a part of a correction.

"The goal has always been to build a better system," he says.

Site Inspections is developing educational tools to help homeowners and industry professionals better understand compliance and risk. He expects it to be helping consumers soon.

"If there's a next chapter, I hope it's about moving from highlighting problems to helping the industry solve them at scale," he says. "That's where the real impact is."

What home buyers should do before signing a contract

After inspecting thousands of homes, Khalil's advice to buyers is to not rely on appearances. "Don't rely on how the home looks. Verify what it actually is," he says.

Before signing a contract, ensure the approved plans, the contract and the finished build align. Many of the most serious defects, he says, originate in the gaps between those stages.

"If something doesn't line up or if the answers you get are vague, hit pause," he says. "Asking hard questions early is a lot cheaper than discovering issues after settlement day."

He also warns buyers to pay particular attention to inspection clauses. "Most buyers don't realise that the words 'subject to building inspection' are meaningless if it's not properly defined," he says. "If you don't define what standards apply or what qualifies as a major defect, you're often locked into a dispute after the fact. Get clarity before you sign anything."

Is accountability improving in Australia's building industry?

Khalil is measured about the future. "I do think accountability is improving, but very unevenly."

Builders, he says, anticipating independent scrutiny often adjust behaviour pre-emptively.

"That tells you that accountability responds quickly to visibility."

Regulators have strengthened enforcement in parts of the country. But structural reliance on trust remains.

"Mistakes are always going to happen," he says. "But there's no consistent mechanism catching patterns early."

Until education, verification and accountability align, not only in documentation but on site, he believes defects will continue to surface post handover.

"There's clearer recognition these days that poor workmanship has long-term consequences for consumers and the industry as a whole," he says.

Which brings the story back to paperwork. Compliant. Within tolerance. Approved. These words are supposed to guarantee something. They should be more than a box to tick, they should mean a safe home that shelters the next generation of Australians.

"Anything less is a shemozzle."

ATO warns Australians about using super for dental work

Consumers are being warned about the hazards of drilling into their super fund to pay for dental work.

Ben Kelly, Deputy Commissioner of the Australian Taxation Office (ATO), says some health professionals may be using predatory practices to get consumers to inappropriately access their super to pay for medical bills.

"A red flag to look out for is health practitioners or third parties who use social media to advertise early access to super for cosmetic or dental procedures," says Kelly.

"This type of promotion is a clear warning sign that practitioners or third parties might be willing to exploit an individual's circumstances and encourage them to take risks with their super."

The ATO says consumers should be especially wary of health providers who ask for your myGov sign-in so they can 'apply for you'.

"Sharing your myGov details puts your identity security at significant risk," notes Kelly.

Australians withdrew $817.6 million from super to pay for dental treatment in 2024/25, a 55% increase on the year before.

Two-thirds of Australians only visit the dentist when they have a problem, and the Australian Dental Association says affordability is the main factor that keeps us away.

Free One Pass membership but is it a good deal?

OnePass is a loyalty scheme offering free delivery, supersized Flybuys points, and 365-day returns with major brands including Bunnings, Kmart, Target, Officeworks and Priceline.

Membership normally costs - $4 monthly or $40 annually.

However, this week saw Wesfarmers - owner of the brands listed above, announce a 6-month free trial to its OnePass program.

Wesfarmers is framing the offer as a helping hand for consumers during a time of surging fuel costs.

Bunnings Managing Director, Michael Schneider says, "We know that every dollar counts right now. Being able to shop online and have your order delivered for free makes a real difference to the weekly household budget."

That may be the case.

But research shows customer loyalty schemes do more than discourage consumers from shopping around.

The data collected through these programs enables retailers to generate personalised marketing, which further encourages more spending at the same store.

One in two refinancers sticks with their original lender

It seems there's nothing like the prospect of losing a customer for banks to rethink their home loan rates.

Research by comparison site Money.com.au found nearly half of mortgage holders (49%) u-turned on their plans to switch lenders after being offered a lower interest rate by their current bank's retention team.

Just 23% of home loan borrowers switched banks despite receiving a competitive counter-offer from their current lender.

Money.com.au's Debbie Hays says lenders often sharpen their pricing when a borrower signals they're ready to walk.

She adds, "In most cases, the best you can hope for is your bank matching the competitor's rate - they rarely beat it."

Even so, you can still be in front financially by avoiding refinancing costs like mortgage discharge and government fees.

New free tools to help plan your retirement

Over the next 10 years, 2.5 million Australians will hang up their work boots and head into retirement.

But one in two 55- to 66-year-olds are worried about running out of money.

One in three feel they're already falling behind when it comes to retirement plans.

In response, money watchdog - the Australian Securities and Investments Commission (ASIC), has launched a range of free and independent tools and resources to help Australians plan for retirement.

The tools, which can be found on Moneysmart's retirement hub, include a retirement planner, which shows you much income you can expect in retirement based on super savings, the Age Pension and other sources.

ASIC Commissioner Alan Kirkland, says, "It's natural to feel uncertain about retirement but without a clear plan in place that uncertainty can quickly turn into anxiety about whether you will have enough money.

"The new resources on Moneysmart can help people move from worry to clarity, and plan for their future with greater confidence."

Major lender cops $4 million fine for spamming

Latitude Financial - Australia's largest non-bank consumer finance company, has been slugged with a $3.96 million penalty for breaching spam laws a whopping 2.7 million times.

The Australian Communications and Media Authority (ACMA) found that between March 2024 and April 2025, Latitude sent more than 2.3 million messages promoting credit cards and other financial services.

The messages not only failed to provide accurate contact information (a must-have under Australian law), over 344,000 messages didn't have a working unsubscribe feature.

It's not the first time Latitude has been fined for spam breaches.

In 2022, the company paid a $1.55 million penalty for similar issues.

ACMA member Samantha Yorke says, "Latitude is now a two-time offender and it is disappointing that it let consumers down again.

Yorke believes there is "no excuse" for this non-compliance, adding, "The spam laws have been in place for more than 20 years."

Reader question

Hi Paul, I've been an avid Money reader for years. Thanks for all your great advice. I'm now a happily (almost) retired 61-year-old. When I separated about 8.5 years ago, I purchased a three-bedroom unit in a nice outer suburb of Melbourne.

However, I've recently been blessed with grandchildren, and they live about 30km away. I now want to be much closer to them. My unit is worth about $1 million and I have $1.63 million in my superannuation fund (Balanced fund, earning 8%pa over the past 10 years).

I'm drawing on this at $70,000pa, and I have $5000pa income. I have no debts, no other investments and minimal savings. I've chosen Kensington, but I will only be able to afford an apartment, as a two-bedroom cottage starts at about $1.2 million.

What is really going to hurt with this move is the amount of stamp duty ($55,000 for a $1 million property in Victoria), plus the buying and selling costs, maybe a total of about $80,000 all up. I think it might be wise to rent for a year or two, to make sure apartment living is for me and that I like the suburb.

If I sell my unit first, where would you recommend putting the proceeds, to support me paying rent (in the order of $700 per week)? I am concerned that if I end up moving twice, this would put a big dint in my super. - Fiona

Paul's response

I am very happy to hear that we have been of some help to you over the decades, Fiona. I'm even more pleased to hear about your financial position.

Owning your apartment, plus $1.63 million in super, leaves you in a position to make life choices. I have spent decades stressing this point.

Saving today and investing the money converts into wealth. Wealth as we get older gives us choice. But first I would argue is not to be out of the property market. I don't mind if you rent where you are now and then rent a place in Kensington.

But I do mind if you sell your apartment and rent for a couple of years. This leaves you at risk of market moves, and over a couple of years, the most likely outcome is that property moves up in value, not down.

Please don't risk part of the hard work you have put in. Rent out your apartment and rent in Kensington or put your place on the market and start looking to buy. The choice here is yours, but being out of the property market in our big cities and other growth areas is a dangerous game.

I agree about moving twice, so you may choose to go the rent route, but I would not be selling until you decided to buy. With money it is really important to eliminate unnecessary risk. And being out of the market is an unnecessary risk. All the best for your move.

What to read next

• How to downsize without losing your identity
• Selling the family home? Your guide to CGT
• How to plan your countdown to retirement
• Ask Paul: How to invest for our grandchild?
• The most dangerous number in retirement planning

They cover assessing family arrangements, assets and cash flow, likely lifestyle spending, and creating a wishlist while prioritising paying off non-deductible debt. Nick explains why life insurance often becomes less necessary as assets grow, and how to reduce investment risk in super as retirement nears while still keeping some growth for a 20- to 30-year retirement.

They discuss boosting super via salary sacrifice, personal deductible contributions, carry-forward concessional rules for balances under $500,000, and debunk the million-dollar myth, noting Centrelink can meaningfully top up income. The episode also covers downsizer contributions, part pension rules while working, concession cards, and applying via myGov within 13 weeks.

Episode timestamps

00:57 Five years out checklist

03:25 Rethinking life insurance

05:24 Super strategy and risk

08:54 One year out planning

11:28 Boosting super smartly

14:35 Downsizing and Centrelink

17:10 Purpose and part pension

21:10 Applying for pension cards

23:55 Retirement day logistics

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The move to expand prefabricated and factory-built modular homes as part of a multi-pronged approach to help solve Australia's seemingly intractable housing affordability problem got a boost, thanks to Bunnings' announcement in February that it would start selling modular pod houses.

The pods and studios are designed for backyards, though every council is different, and permit requirements can vary depending on size, use and location.

Australia's largest hardware and home improvement retailer now lists Elsewhere Pods' flatpack dwellings online and in store as a special order.

There are two models, a small 2.7m x 2.4m pod priced at $26,100 and a larger 4m x 2.4m studio at $42,900.

Bunnings says the units can be assembled in as little as two days, positioning the products as DIY-friendly solutions that can serve as crisis accommodation, home offices or teenage retreats.

How housing supply delays are worsening affordability

One of the biggest factors exacerbating our home affordability crisis is the lack of new supply and the increasing time it takes for standard on-site built homes to be completed.

Australia's national housing target is to build 1.2 million new homes over the five years from July 2024 to June 2029. But we are falling well behind this with the National Housing Supply and Affordability Council (NHSAC) predicting that Australia will miss its 2029 target by about 262,000 homes.

The factors causing this include severe workforce shortages and planning and regulatory delays that have increased the time taken to build a detached house by roughly 34% to 40% since the COVID pandemic.

With apartments it's even worse, with some reports that construction times have increased by up to 80% over the past 15 years.

Why construction costs are still climbing

Rising construction costs, with materials such as timber, steel and concrete jumping more than 40% in price since the start of the pandemic, have added to the woes.

Modular homes currently only make up about 8% of Australia's housing stock, but it's a sector gaining momentum.

"The Australia Prefabricated Construction Market was valued at US$8.35 billion ($11.8 billion) in 2025 and estimated to grow from US$9.01 billion ($12.73 billion) this year to reach US$13.17 billion ($18.60 billion) by 2031, at a compound annual growth rate (CAGR) of 7.88% during the forecast period (2026-2031)," stated a recent report into Australia's prefabricated construction market by market intelligence firm Mordor Intelligence.

"Tight housing supply, persistent skilled-labour shortages, and stricter energy-performance rules under the National Construction Code 2022 are steering developers toward factory-based production lines that compress schedules and curb cost overruns."

Why prefabricated homes can be faster and cheaper

A big advantage of prefabricated homes is that they only take about half the time to build as standard housing, one reason the Australian Federal government is investing $54 million to accelerate the adoption of modular and prefabricated housing.

Prefabricated homes often cost 10% to 25% less per square metre to build compared with traditional homes, according to data from the Housing Industry Association, with savings driven by reduced labour, minimised material waste, and faster, more predictable construction timelines.

Additionally, modular homes are generally of high quality and durable as they are built in a controlled, indoor environment, avoiding weather-related damage to materials, ensuring consistent quality. Many are also energy efficient and sustainable with better insulation, sustainable materials, and in-built off-grid capabilities like solar panels.

Many prefabricated homes can be customised and offer architecturally diverse designs, dispelling the myth that they are unoriginal or boxy.

Who modular homes and granny flats are actually suited to

While these types of secondary dwellings are usually considerably smaller than standard houses, they may indeed suit a large number of people. In Australia, 61% of households consist of one to two people, while three to four bedrooms make up 70% of our housing stock, according to analysis from leading real estate data firm Cotality.

Builders are responding to growing demand for modular homes with a Housing Industry Association (HIA) survey of builders in April 2025 showing that granny flat construction, mostly prefabricated, is set to take off across Australia. Respondents reported that they expected to build 10 times more granny flats this year than they did in 2022.

The origin of the sudden surge in granny flat construction lies in the planning system, says the HIA. NSW was the first State to make it much easier to build granny flats in 2009 and the others have followed, albeit some of them quite slowly.

What could hold prefabricated housing back

One of the problems associated with getting a loan to buy a prefabricated home has been lender hesitancy to come to the party because the home is built in a factory. This means lenders cannot use the building as security until it is installed, making them nervous.

This is being mitigated by the fact that at least one major bank, CommBank, is now offering tailored construction loans that allow for progress payments during the off-site, factory-build phase. Others will likely follow as the sector grows.

Another potentially considerable problem is the cost of transporting factory-built homes, usually on the back of a truck.

Depending on the complexity of the transport and lifting job, moving a home may cost anywhere from $5000 to well over $20,000, eating into cost savings from this type of home.