Looking beyond traditional asset classes

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Share markets and property dominate most investment conversations, but some investors are casting a wider net in search of new opportunities.

While alternative assets have long had a place in institutional portfolios, they’re becoming increasingly accessible to individual investors through managed funds, exchange traded funds (ETFs) and specialist investment vehicles.

Alternative assets can include infrastructure, agricultural investments, private credit, commodities and other investments whose performance may not closely follow traditional share markets.

For many investors, the appeal lies in the potential for more diversification, inflation protection and exposure to long-term structural trends.

As always, alternative investments come with their own risks and should be assessed against your overall financial goals, time horizon and tolerance for risk.

Powering the AI revolution

Artificial intelligence has become one of the dominant investment themes of the decade, but many are looking beyond software developers and technology companies to the infrastructure supporting the AI boom.

The increasing use of AI, cloud computing, streaming services and digital communications is driving unprecedented demand for data centres, fibre-optic networks and communications infrastructure. Global investment in data-centre capacity and AI infrastructure continues to accelerate as organisations require greater processing power and data storage capabilities.i

Today, digital infrastructure is as essential to modern economies as roads, railways, ports and electricity networks were in previous generations. Many of these assets generate long-term contractual revenue streams and may provide a degree of stability compared with more volatile sectors.

Investors are increasingly seeing digital infrastructure as a way to get exposure to long-term growth without relying solely on technology company share prices.

But the sector is not immune from risk. Rapid technological change, regulatory developments, high capital costs and growing energy demands all have the potential to influence future returns.

Agriculture feeding long-term growth

Agriculture continues to attract investor attention because it is linked to one of the world’s most fundamental needs: food production.

Population growth, rising incomes and changing dietary patterns are expected to support demand for agricultural products and food supply chains. International organisations continue to highlight the significant investment required to support future agricultural production and food security.ii

Agricultural assets can include farmland, water entitlements, agricultural infrastructure and businesses involved in food production.

Agriculture also has characteristics that differ from many traditional investments. Returns can be influenced by crop production, commodity prices, land values and global food demand rather than share market sentiment alone.

That said, agriculture is far from risk-free. Droughts, floods, changing weather patterns, biosecurity threats and geopolitical uncertainty can all affect profitability. Government policies, trade agreements and international tariffs also have the potential to significantly influence outcomes.

Despite these challenges, investors see quality agricultural assets as a potential source of diversification and long-term value.

Private credit stepping into the gap

Private credit has emerged as another area attracting attention. Rather than lending through traditional banks, private credit funds provide financing directly to businesses, property developments and other projects.

The sector has grown significantly in recent years as tighter banking regulations and changing lending conditions have encouraged many borrowers to seek alternative sources of capital.iii

Private credit can provide access to income streams that may differ from those generated by traditional bonds or listed shares.

However, this can be less liquid than listed investments and may involve higher risk if borrowers experience financial difficulties.

Critical minerals powering the energy transition

The global shift towards renewable energy, battery storage and electrification has also increased investor interest in critical minerals. Materials such as lithium, copper, nickel and rare earth elements are essential components in electric vehicles, batteries, renewable energy systems and modern technology.

Demand forecasts continue to be influenced by investment in clean energy infrastructure and the ongoing electrification of transport and industry.iv

However, critical minerals can be highly cyclical investments. Prices may be affected by changing technology, shifts in supply and demand, government policies and geopolitical developments.

The sector can offer significant growth potential but may also be highly volatile.

Emerging markets creating new opportunities

Some investors are also looking beyond developed economies in search of future growth opportunities.

Emerging economies such as India, Vietnam and Mexico have attracted increasing attention due to strong economic growth, expanding middle-class populations, growing consumer spending and increasing participation in global manufacturing and supply chains.

International forecasts suggest many emerging economies will contribute a significant share of future global growth.v

Supply-chain diversification has also created opportunities for a number of countries looking to attract manufacturing investment from multinational businesses.

Investment in infrastructure, telecommunications and digital connectivity may support future growth across parts of Africa, Asia and Latin America.

Emerging markets can offer attractive growth potential, but these opportunities are often accompanied by extra risk. Political instability, regulatory changes, currency movements and weaker governance frameworks can create higher levels of volatility.

As a result, emerging markets should be considered as part of a diversified investment strategy, rather than as a concentrated investment position.

Finding the right balance

Alternative investments can offer valuable opportunities to diversify sources of return and get exposure to long-term global trends. Sectors such as digital infrastructure, agriculture, private credit, critical minerals and emerging markets each present different opportunities and risks, making careful research essential.

While alternative assets may enhance diversification, they should not be viewed as a substitute for a well-balanced investment portfolio. Successful investing remains focused on aligning asset allocations with personal objectives, investment timeframes and risk tolerance.

For investors willing to look beyond traditional asset classes, alternative investments may provide another way to participate in some of the most significant economic and technological trends shaping the future.

i PwC | Global investment in AI infrastructure
ii UN | Food and Agriculture Organization
iii PwC | Private Credit Survey 2026
iv IEA | Global Critical Minerals Outlook 2026
v IMF | World Economic Outlook

What’s with all the questions?

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“How much do you earn?”  “Do you have any debts?” 

“How long have you been with your current employer?” 

At times, applying for a loan can feel less like a conversation and more like an extremely detailed interrogation. You might wonder whether we are helping you to secure finance or having a good old ‘sticky beak’ into your private financial affairs. 

You may be reassured to learn there is a reason behind every question we ask and every document we request. The intense interest in your financial life is because understanding your full financial position helps us find the right lending option for you. 

We need the full picture, not just the headline 

When people first come to us, they often start with the key details: “I earn this much, I want to borrow this much, and I have found this property.” 

Those details are important, but they are only part of the story. 

Lenders assess more than just your income and borrowing amount. They look at your expenses, existing commitments, financial history and overall position. A loan that appears suitable at first glance may not always be the best fit once all the details are considered. 

That is why we ask questions that reveal the full extent of your financial situation. Understanding the bigger picture helps us identify opportunities, anticipate potential challenges and find lending solutions that align with your goals. 

The aim is not simply to get a successful application approved. It is to help structure your finance in a way that works for your circumstances, both now and into the future. 

The considerations behind the questions 

Some questions may seem unrelated to getting a loan, but they help us understand what you are trying to achieve. 

Are you planning to start a family? 
Do you expect your income to change? 
Are you thinking about buying an investment property in the future? 
Do you want the flexibility to make extra repayments? 

These questions are not about making the process more complicated. They help us look beyond today and consider whether a loan will continue to support your goals over time. 

The lowest interest rate is not always the best loan if it does not provide the flexibility, features or structure you need. 

Yes, we really do need those documents 

Nobody gets excited about paperwork. We understand that gathering payslips, bank statements and supporting documents can feel like a chore. 

However, those documents play an important role in building a strong application. They provide evidence of your financial position and allow us to present your circumstances clearly to lenders. 

We are looking for opportunities, not problems 

A common misconception is that we are looking for reasons why an application will not work. The reality is the exact opposite. We are looking for ways to make your goals achievable. 

If there are challenges in your financial position, knowing about them early gives us the opportunity to explore solutions. It might mean improving your application before submitting it, finding a lender with more suitable policies or considering different loan structures. 

The more information we have, the more options we can explore. 

Why honesty helps your application 

It can be tempting to leave out small details because you assume they are not important or even try to cover up things you think won’t be viewed positively by lenders. However, surprises are rarely helpful during the lending process. 

Whether it is an existing debt, a change in income, upcoming plans or a financial commitment, having the full picture from the beginning allows us to provide better advice and avoid unexpected issues later. 

Our role is not to judge your circumstances. It is to understand them and work with you to find the best possible path forward. 

The more we know, the more we can help 

While you can avoid a lot of onerous paperwork with a broker, there is no getting around the fact that you need to provide information to support your application.  

Just remember when you feel like you are getting grilled, we need to get a good understanding of your financial position and goals to help make the process as painless and efficient as possible for you and get the right loan for your circumstances.  

Does your business need a valuation for the new CGT rule

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Many business owners don’t tend to think about getting a formal valuation until they’re preparing to sell. But proposed capital gains tax (CGT) changes, due to commence from 1 July 2027, may mean valuations become important even when a sale is years away.i

Business owners may wish to establish the market value of relevant assets and business interests as at 1 July 2027 in order to support future CGT calculations.

Even if you have no immediate plans to sell, maintaining accurate records and supporting documentation may help achieve better tax outcomes.

What are the new CGT rules?

From 1 July 2027, the existing 50 per cent discount for capital gains available to individuals, trusts and partnerships will be replaced by cost base indexation and a 30 per cent minimum tax rate.ii

The new regime will apply to all capital gains accrued from 1 July 2027 (subject to limited exemptions).

Depending on your circumstances, relevant assets may include shares in a private company, business premises, goodwill, investment assets and other interests subject to the CGT rules. Professional advice may be required to determine which assets are affected.

Business owners need to consider what records and information will be required to substantiate the market value of relevant assets and business interests at that date. These will be needed when a capital gain is crystallised in the future.iii

Supporting information

The ATO publication Market Valuation for Tax Purposes outlines the information it requires for a valuation and this is more than a simple monetary value.

An acceptable valuation needs to be objective and independent, based on recognised valuation methodologies and be supported by credible evidence. It must include details of the asset being valued, the date it was valued and clear records to explain the basis for the market valuation.

Valuations prepared by qualified professional valuers are generally regarded as more credible by the ATO and may provide greater protection where reasonable care has been taken and accepted valuation methodologies have been applied.

Advantages of a formal valuation

Obtaining a professional valuation can help to provide greater certainty regarding potential tax liabilities and may assist with future decisions about when and how assets are ultimately sold.

Subsequent accrued capital gains are subject to the new indexation and minimum tax rate.

If you choose not to establish a market valuation for your business assets, a prescribed formula will apply, which could result in more capital gain being attributed to the post 1 July 2027 period.iv

Act now or wait?

For many business owners, obtaining a formal valuation prior to or immediately after 30 June 2027 may not be necessary, as retrospective valuations can be prepared. However, you still need to gather and retain sufficient information so a professional valuer can reconstruct and support a valuation in the future.

If you anticipate a business sale, succession event, significant transaction or ownership restructure in the near future, it may be sensible to obtain a valuation close to 1 July 2027.

Other situations where a valuation may be warranted include a business with complex valuation considerations, shareholders who want certainty regarding future tax outcomes, or if your business has the size, value or industry profile of interest to the ATO.

Preparing your business for valuation

A supportable business valuation will require the collation of financial statements and management accounts, bookkeeping files and fixed asset registers for at least three years to 30 June 2027. Budgets, forecasts, business plans, project pipelines and relevant assumptions or working papers will also be required. The quality and completeness of these records can significantly influence the strength and reliability of a future valuation.

Valuers will also need information about employee entitlements, sales breakdown by client, abnormal income and expenses, and agreements with key customers and suppliers.

Your shareholder and ownership records, acquisition documents and board papers also need to be compiled.

Obtaining a current market valuation is not just about the new CGT rules. It can also provide valuable insights into your business, help with goal setting and could make obtaining finance easier

 i ATO | Reforming negative gearing and capital gains tax
ii ATO | CGT discount
iii ATO | Market valuation of assets
iv Budget 2026-27 | Tax Explainer

Estate planning – why it’s important to have a will

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What is your ‘estate’?

Your ‘estate’ includes everything you own – your ‘earthly possessions’, if you will. It can include for example cash, property, cars, boats, furniture, jewellery, family heirlooms, art, shares and more.

What is estate planning?

This is where you decide what will happen to your belongings after you pass away. By leaving a clear set of ‘instructions’, you help make sure that the people you care most about aren’t faced with any unnecessary conflict or uncertainty.

Why is estate planning important?

Even if you don’t have much money or property, planning your estate is the best way to make sure that special belongings go to the people who will treasure them. Often, it’s these items that matter most.

Why an estate plan is a good plan

  • Your assets get passed on to beneficiaries that you choose. If you pass away without a valid will (and in turn, without a valid estate plan) you’re considered to have ‘died intestate’ and your assets get distributed according to your state’s inheritance laws—not your wishes.
  • If you leave kids behind, you decide who cares for them and how—not the courts.
  • You minimise the tax your beneficiaries may pay when they inherit your assets.
  • You reduce the risk of conflict between family and friends when you pass away.

What’s in your will?

Your will is a legal document that’s part of your estate plan. It outlines how you want your estate to be managed and how you want your assets to be distributed when you pass away.

If you have a fairly straightforward estate and know how you’d like to distribute it, you can easily write your will yourself. It’s as simple as buying a will pack from Australia Post and select news agencies, or downloading it online.

For more complicated estates, it might be a good idea to get advice from a solicitor or the Public Trustee. You can then appoint them to be your executor.

Your will checklist

Your will should:

  • clearly identify your beneficiaries
  • clearly identify your executor
  • have the right date on it
  • be signed correctly
  • be witnessed correctly
  • list exactly how you want your estate to be distributed to your beneficiaries (including any plans if they pass away before you)
  • be up to date.

Should you review your estate plan?

Life is never predictable, so it’s a good idea to update your estate plan when things change.

Why you might change your estate plan

  • You get married.
  • You get divorced.
  • You have kids.
  • Your partner, dependant or loved one passes away.
  • You experience financial hardship.

Other things to consider

Organising life insurance and a funeral plan can make things easier for your family later. Learn the ins and outs of life insurance, or find out about estate planning in more detail with ASIC’s Moneysmart guide.

Source: NAB
Reproduced with permission of National Australia Bank (‘NAB’). This article was originally published at https://www.nab.com.au/personal/life-moments/family/will
National Australia Bank Limited. ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. The information contained in this article is intended to be of a general nature only. Any advice contained in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice on this website, NAB recommends that you consider whether it is appropriate for your circumstances.
© 2026 National Australia Bank Limited (“NAB”). All rights reserved.
Important:
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Teaching kids about money

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Raising your kids to be smart with money gives them vital life skills.

Helping younger kids understand money

As a parent, you can shape your child’s relationship with money from an early age.

 

You don’t need to be a money expert to teach kids about money. Simple conversations at home and everyday moments can help kids understand where money comes from, where it goes, and how to use it wisely.

Money conversations change as kids grow. What works for a young child will be different to what works for a teenager. But regular conversations can help build confidence and financial literacy over time.

How you earn money

Talk about how you earn the money you spend. 

Explain that you get paid for the work you do. Then show your child how you use that money to pay for things your family needs, such as food, clothes, transport and housing.

As kids get older, you can also talk about banks, savings accounts and digital payments.

What’s the difference between needs and wants?

Talk about how you decide what to spend money on. 

Needs are things we need for everyday life, such as food, housing and clothing. Wants are things we would like to have but can live without.

When your child asks for something, talk about whether it is a need or a want. This helps kids think about spending choices before they buy.

Show your kids where money goes

There are plenty of everyday opportunities to teach your kids about money.

When you tap and pay

Kids often see people pay with cards, phones and smart watches.

Explain that tapping to pay still uses real money from a bank account. Each purchase leaves less money to spend or save.

While shopping

Shopping can help kids learn about price, value and choice.

You can:

  • compare prices on similar products

  • point out discounts and special offers

  • look for the unit price (for example, price per 100g) 

  • compare which item offers better value

  • talk about whether something is a need or want.

When paying bills

Show your child a household bill, such as an electricity, internet or mobile phone bill. 

Talk about what the bill covers and how you use your income to pay for it. This helps kids connect earning money with paying for everyday things.

Looking for ways to practise at home? You can use Moneysmart’s primary school lessons and activities with your kids at home. They cover topics like needs and wants, budgeting, saving and making spending decisions. Explore primary school lesson plans.

Help kids learn by doing

As kids get older, they learn more when they start making their own money decisions.

Giving kids some responsibility for money can help them build confidence and learn from small choices while the stakes are low.

Should kids get pocket money?

There is no right or wrong approach.

Some parents give pocket money each week. Others link it to certain jobs around the house, such as:

  • mowing the lawn

  • vacuuming the house

  • making school lunches

  • hanging out and bringing in the washing

  • packing and unpacking the dishwasher

  • washing the car

  • taking out the rubbish

  • walking the dog.

Do whatever works for your family and circumstances.

Having their own money can help kids practise spending, saving and making choices.

Encourage your kids to save

Learning to save is an important life skill.

Piggy banks work well for younger kids because they can watch their money grow. 

As kids get older, a savings account can help them learn about banking, saving and interest, including the power of compound interest.

There are also apps to help kids save money and develop good money habits.

How can kids save for a goal?

Help your child save for something they really want.

When they want to make an impulse buy, talk about the goal they’re saving for and how today’s spending might affect it. 

You can use a savings goal calculator to help them see how different choices affect their progress.

Plan an event together

Invite your child to help plan a birthday party, family outing or special activity. 

Work through the costs together and talk about what fits the budget. This helps kids practise planning, prioritising and making spending decisions.

Do a budget together

Talk through parts of the family budget with your kids. 

Show them how much money comes in and how you use it for things like food, bills, transport and savings. This can help them understand the cost of living and how planning ahead helps. 

If they are earning money, show them how to create their own budget using this budget planner.

Help your kids learn with the budget planner

Track their spending

When older kids start earning or receiving money regularly, they may feel tempted to spend it all at once.

Show them how to track their spending so they can see where their money goes. This can help them make more informed choices about spending and saving.

Share their money

Some families include giving as part of learning about money.

If your child wants to support a charity or cause they care about, talk about how donations can help others and how giving fits alongside spending and saving.

Help teens build money skills for adulthood

Money conversations don’t stop when kids become teenagers.

As young people gain more independence, parents can still play an important role. You can help them build confidence, understand risks and prepare for bigger money decisions.

What should teenagers know before their first job?

Getting a first job is an exciting milestone.

It’s also a good time to talk about:

For many teenagers, this is the first time they earn and manage their own money.

How can I help my teenager manage money?

Teenagers often start saving for bigger goals, such as a concert, a holiday, study costs, a car or moving out of home.

Help them set a savings goal, create a simple budget and track their spending. These money skills can help them make confident financial decisions later in life.

They can also use the budget planner or savings goals calculator to make a plan.

Saving for a car

Many teenagers save for a car as one of their first big money goals.

Talk about the full cost, not just the purchase price. This may include registration, insurance, fuel, servicing, repairs and loan repayments.

Comparing options and planning ahead can help them make a more informed decision.

How can I help my teenager avoid money mistakes?

Encourage your teenager to ask questions before signing up for new products or services. A quick conversation can help them understand the costs, risks and alternatives before they commit.

Teenagers and young adults often make more money decisions online.

Talk about things like:

These conversations help young people recognise risks and make informed decisions.

Keep the conversation going

As your teenager gets older, they’ll start making bigger money decisions. 

They might start asking questions about managing money while studying, buying a car, moving out of home, rental bonds and leases, or saving for a home.

You don’t need to have all the answers. But your guidance still matters.

Talking through options together can help them build confidence and make informed choices.

Source: Moneysmart
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/family-and-relationships/teaching-kids-about-money
Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.
Important: Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Should you change your investment strategy because of the CGT changes?

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The capital gains tax (CGT) reforms have sparked debate about whether investors should favour income-producing investments over those focused on growth, in an effort to reduce their tax bill.

But a lower tax bill doesn’t necessarily lead to a better investment outcome.

New modelling of the reforms suggests that while higher-growth investments could face larger tax liabilities under the new rules, they may still leave investors with greater after-tax wealth over the long term.

Understanding the changes

Under the current rules, Australian investors who hold an asset for more than 12 months may be eligible for a 50% discount on capital gains.

From July 1, 2027, that approach will be replaced with an indexed cost-base methodology, designed to account for inflation when calculating taxable gains1. The proposal would also introduce a minimum tax rate of 30% on capital gains.

To understand how these changes could affect investors, here is a model of two hypothetical portfolios over a 20-year period.2

  • A higher-income portfolio generating 6% annual income and 4% annual capital growth.

  • A higher-growth portfolio generating 2% annual income and 8% annual capital growth.

Both portfolios were assumed to deliver the same total pre-tax return of 10% per year. The key difference is how those returns are generated. 

Different returns, different tax outcomes

The reforms produce very different tax outcomes for the two portfolios. Under the new rules, the higher-income portfolio is around $4,000 better off than under the current regime, while the higher-growth portfolio is about $29,000 worse off.

 

Portfolio

Current rules after-tax value

New rules after-tax value

Difference

Higher income
(6% income, 4% growth)

$180,448

$184,427

+$3,979

Higher growth
(2% income, 8% growth)

$234,906

$205,719

-$29,187

Note: The example is illustrative only and is based on the factors stated. It should not be taken to contain or provide an estimate, projection or guarantee of future investment returns or tax outcomes. 

The difference largely comes down to the relationship between capital growth and inflation. Investments with relatively strong capital growth generally benefit more from today’s 50% CGT discount, while lower-growth investments may benefit more from an indexation approach. Keep in mind a portfolio with greater exposure to growth assets would generally be expected to experience greater fluctuations and a higher risk of loss than a lower-growth portfolio.

However, tax is only part of the story. Despite facing a larger CGT bill under the new rules, the higher-growth portfolio still finishes with more after-tax wealth after 20 years, accumulating approximately $205,700 compared with $184,400 for the higher-income portfolio.

This is because a greater proportion of the higher-growth portfolio’s return remains invested and compounds over time. This highlights an important distinction: the investment that generates the lowest tax bill may not be the one that leaves you with the most money after tax. In some cases, paying more tax may simply be a by-product of generating higher returns. 

What about different markets?

This distinction may also be relevant when comparing different markets. Australian shares have historically delivered a larger portion of returns through income, while international shares have tended to generate more of their returns through capital growth. Under the reforms, those differences could lead to different tax outcomes, but investors should remain focused on total after-tax returns rather than tax outcomes alone. 

The bottom line

The CGT reforms could change the relative tax treatment of income and capital growth. While this modelling suggests lower-growth portfolios may benefit from an indexed cost base and higher-growth portfolios could face larger CGT liabilities, tax is only one part of the equation.

The modelling shows that even after paying more CGT, a higher-growth portfolio can still generate greater after-tax wealth over the long term because more of its return remains invested and compounds over time. However a higher growth portfolio would also increase the exposure to market fluctuations and a higher risk of loss.

The right portfolio will depend on an investor’s goals, risk tolerance and circumstances. Tax outcomes are not guaranteed and will vary between investors. Rather than focusing solely on minimising tax, investors should focus on maximising long-term after-tax wealth.

1. Note that if you had acquired assets prior to 1 July 2027, part of your capital gain may be subject to the CGT discount if it was held for at least 12 months; however this discount gain is deferred until you sell your asset.

2. The modelling assumes an Australian resident individual investor eligible for the CGT discount under the current rules and a $50,000 initial investment, a 20-year holding period, a marginal tax rate of 47%, annual inflation of 2.7%, reinvestment of after-tax income distributions reinvested annually, and payment of CGT at the end of the investment period. Investment fees, transactions costs and Medicare levy are not included.

Important Information
This article contains certain ‘forward looking’ statements. Forward-looking statements, opinions and estimates provided in this article are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, indications or guidance on future earnings or financial position and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these statements. To the full extent permitted by law, Vanguard Investments Australia Ltd (ABN 72 072 881 086 AFSL 227263) and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions. This article is not a substitute for tax advice; it has been prepared on a set of assumptions which may not be applicable to you. If you are in any doubt about your personal tax position, we recommend that you seek advice from a registered tax agent or a suitably qualified adviser.

Source: Vanguard
Reproduced with permission of Vanguard Investments Australia Ltd
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer. We have not taken yours and your clients’ circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our PDS or Prospectus online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.
© 2026 Vanguard Investments Australia Ltd. All rights reserved.
Important: Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Planning for change can boost retirement confidence

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For many Australians, retirement is no longer simply a question of whether they have accumulated enough money, it’s also about whether they feel confident enough to enjoy the life they have worked towards.

That confidence can be surprisingly difficult to arrive at.

 

The cost of living, healthcare expenses, volatile investment markets and longer life expectancies all make retirement planning more complex. At the same time, superannuation and retirement policy continues to evolve. Even when changes are intended to improve the system, speculation and media discussion can leave people wondering whether the plans they make today will still work tomorrow.

A recent survey found that only 52 per cent of Australians felt financially confident about retirement.i

Decisions and complexity

Australians are generally making decisions about superannuation, investments, tax, retirement income and government benefits, many years before they retire. However, important questions need to be asked before making a decision as these can have a significant impact at retirement.

Common retirement questions to consider include: When should I retire? How much can I afford to spend? Should I contribute more? Should my investment portfolio change?

Changes to the superannuation system can add another layer of complexity to these questions and so can discussions about possible changes. A media headline about superannuation or tax can prompt people to question whether their existing strategy remains appropriate, even when the proposed change may have little or no impact on them personally.

This is not an argument against reform – Australia’s retirement system needs to evolve to meet the needs of a changing society – but it does highlight the importance of having someone who can put changes into context.

With heightened geopolitical tension and market volatility, rising household budgets and healthcare pressures, these factors further impact how pre-retirees and those who have already retired, are feeling about their financial future.

Knowledge builds confidence

Research reveals that Australians who had a clear understanding of the actions they needed to take were three times more likely to feel highly confident about supporting their desired lifestyle in retirement.ii

It also matters for another reason. Lacking retirement confidence does not always sway people to save more in the years leading up to retirement, but it can lead them to spend less than they comfortably could afford to once they stop work.

Australia’s Retirement Income Review noted that many retirees were drawing down very little of their capital and that most people died with a substantial proportion of their wealth still intact.iii This does not mean leaving an inheritance is a bad outcome, but it does suggest that some people may be more cautious about spending money than they need to be.

For someone who has spent decades accumulating and protecting wealth, transitioning from saving to spending can be psychologically difficult. Without a clear understanding of what is sustainable, it can be tempting to keep working, delay experiences or simply spend less than their financial position allows.

The objective is not to encourage people to spend for the sake of spending. It is to give them the knowledge and confidence to make deliberate choices about their retirement lifestyle.

Confidence is about choice

Ultimately, retirement confidence should not be measured solely by whether someone believes they have “enough”.

It is about knowing what is possible. Can you travel? Help your children or grandchildren? Renovate the house? Pursue an interest? Spend more in the early years of retirement while you are healthy enough to enjoy it?

A good retirement plan should help answer those questions.

For some people, confidence may mean knowing they can afford to spend more than they initially thought. For others, it may mean making different choices about investments, tax or the timing of retirement. The important thing is knowing what choices to make.

Australia’s retirement system will continue to evolve. There will always be another announcement, another review and another headline about superannuation or tax.

The answer is not to try to predict every change. It is to have a plan that can adapt, and the knowledge to understand what those changes mean for you.

Because confidence in retirement is not simply knowing how much you have. It is knowing what you can do with it.

i AMP | Retirement Confidence Pulse 2026
ii Vanguard | How Australia Retires 2025
iii Australian Government Treasury | Retirement Income Review Final Report

Give your super a head start

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Let’s be honest, for many teenagers and young adults, starting a first job is an exciting milestone. But the focus is usually on the first pay packet, saving for a car, travel, study or eventually a home deposit. Superannuation probably sounds boring right now and often sits much further down the priority list.

It’s totally understandable. You want to enjoy the money you’re earning now, not thinking about how much you’ll need in 40 or 50 years’ time. Yet young workers have one advantage no older investor can buy: time. Understanding how your super works now could pay off later in life.

The power of compounding

One of the reasons super can be so effective over the long-term is the power of compounding. It creates a snowball effect. The returns you earn on your super, earn even more returns. Your super fund puts your money to work in assets like shares, property, and infrastructure, which continuously generate returns and interest. That can have a surprisingly powerful effect. The earlier contributions are made, the more time they have to grow.i

For example, a Sydney Morning Herald article calculated that a 30-year-old earning $100,000 who contributes an extra $50 a week via salary sacrifice could boost their retirement balance by almost $120,000 by age 65.ii

You might think that you need large sums of money to boost your super. In reality, even small, regular contributions can have a meaningful impact over time.

If you’re paying rent, studying or just trying to cover everyday costs, that’s good news. You don’t need to find hundreds of dollars a month to start making a difference.

Government co-contribution

One of the most overlooked super incentives is the federal government’s super co-contribution scheme.

Eligible low and middle-income earners who make personal after-tax contributions to their super may receive a government contribution of up to $500. For the 2026-27 financial year, the maximum entitlement is available for eligible individuals with income up to $49,293, phasing out at higher income levels.iii

If you’re working casually, part-time or while studying, this can be a simple way to give retirement savings an immediate boost.

Keep track of your super

A common issue some people face is having multiple super accounts after changing jobs. Multiple accounts can mean paying duplicate fees and, in some cases, insurance premiums that gradually reduce your balance.

While super stapling came into effect in 2021, it’s important to keep track of your super when you change jobs to ensure you don’t end up with multiple super accounts.

Balancing today’s goals with tomorrow’s

Most young workers are focused on the next few years rather than the next few decades. Your priorities are very different when you’re starting out your career, and your choices can feel far more immediate than retirement planning.

Building super doesn’t have to come at the expense of other financial goals. The aim isn’t necessarily to contribute large amounts when you’re just starting to earn some money. It’s about understanding the opportunities available, knowing how your super works and creating good financial habits early.

A good time for a financial health check

Starting a first job is the perfect time to start developing healthy financial habits.

Simple steps include:

  • checking that super contributions are being paid correctly

  • making sure multiple super accounts are consolidated where appropriate

  • understanding investment options in a super fund

  • reviewing fees and insurance arrangements

  • considering whether voluntary contributions are affordable

It might not feel so important now, but these small steps are often the foundation of good financial habits.iv

Looking after future you

Young Australians have legitimate competing priorities. Paying bills, managing study costs, catching up with friends and still having a social life and can often feel more urgent than retirement planning.

But super is one of the few financial areas where starting small and starting early can create a significant long-term advantage. Spending a little time on your super now could make life a lot easier decades from now.

So why not give your future self a little head start. When it comes to your super, making small contributions early on could be worth more than you think.

i HostPlus | Growing your super with compound returns
ii SMH | How young workers can add six figures to their super
iii ATO | Super co-contribution
iv Professional Super | The wealth-accelerating benefits of super for young professionals

The retirement gap we don’t talk about

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Retirement confidence isn’t just about your nest egg, it’s about your plan

Do you know how much interest you pay on your mortgage?

Chances are you do. Like many homeowners, you may follow the Reserve Bank’s interest rate decision closely. You know what your repayments are, how much rates have risen over recent years and what that means for your household budget.

Now consider another question.

Do you know the fees you pay on your superannuation account?

For many Australians, superannuation is their second largest asset after the family home. Yet recent retirement research found that one in two of us would not feel confident explaining the fees charged on their super account.1 At the same time, almost two-thirds could not correctly identify the age at which you can access super.2

The contrast is revealing.

The issue isn’t that Australians don’t care about retirement. It’s that retirement often remains a future problem until suddenly it becomes a present one.

Why confidence isn’t just about money

When Australians think about retirement, the conversation usually starts with money.

How much super do I need? Will I be able to retire comfortably? Am I on track?

They’re important questions. Yet one of the clearest findings from our research is that retirement confidence isn’t just about how much you’ve saved. It’s also about whether you’ve started planning for the future you want.

Australians with a retirement plan are significantly more likely to feel confident about retirement than those without one. Nearly half of working-age Australians, however, have no retirement plan at all.3

Too many Australians see retirement as a distant milestone rather than a life stage worth planning for today. As a result, retirement preparation is often delayed until people feel they have enough time, enough money or enough knowledge to tackle it properly. For many, that moment never quite arrives. 

The research also suggests many Australians are navigating retirement largely on their own. Around one in three rely primarily on their own research when making retirement plans, while partners, family and friends are consulted more often than financial advisers.4 This highlights how important it is that Australians have access to clear, practical information that helps them make informed decisions about their future.

A different retirement awaits younger Australians

In today’s economic landscape, it’s never been more important for young Australians to plan for the future.

While many of today’s retirees own their homes outright, our research shows younger Australians increasingly expect to enter retirement with mortgage debt or while renting. Combined with longer life expectancies, rising housing costs may make it more expensive to maintain the retirement lifestyle they hope to enjoy.

Yet planning for retirement doesn’t need to start with spreadsheets or complex calculations. It can begin with a much simpler question: what kind of life do you want to live?

This research found Australians overwhelmingly view retirement as an opportunity to maintain their independence, enjoy good health, spend time with family and friends, and pursue leisure activities. In fact, these lifestyle aspirations consistently rank alongside financial security as key ingredients of a successful retirement.

So, where do you want to live? Will you continue working? What role will travel, health and family play in your future?

These are lifestyle questions before they’re financial ones. Yet they often provide the starting point for a meaningful retirement plan. Once people have a clearer picture of the retirement they want, they are better positioned to make the financial decisions that support those goals.

Make a start

Retirement planning is not a single decision made at the end of a career. It is a series of decisions made over many years, often starting with one small step.

Take small, practical steps towards your financial future.

Getting started can be as simple as checking your super account, understanding the fees you pay, or having a conversation with your partner about your future. Small actions can build understanding, confidence and ultimately help Australians feel better prepared for retirement.

To start your retirement journey, talk to us.

Footnotes:
1. How Australia Retires 2026, 14
2. How Australia Retires 2026, 12
3. How Australia Retires 2026, 22
4. How Australia Retires 2026, 24

Source: Vanguard

This article has been reprinted with the permission of Vanguard Investments Australia Ltd. Copyright Smart Investing™
Reproduced with permission of Vanguard Investments Australia Ltd Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer. We have not taken yours and your clients’ circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our PDS or Prospectus online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance. © 2026 Vanguard Investments Australia Ltd. All rights reserved. Important: Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Aged Care 101: What is the Higher Everyday Living Fee (HELF)?

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The Higher Everyday Living Fee, or HELF, is a new optional fee that lets aged care residents pay for a more premium experience, from better meals to in-room entertainment. It’s completely optional, and declining it shouldn’t affect the standard care you receive. This guide breaks down what HELF actually covers, how it’s priced, and the exact questions to ask your provider before you sign anything.

When comparing aged care homes, you might have come across the term Higher Everyday Living Fee (HELF). This is HELF, introduced in November 2025, and made to give aged care home residents the option of a more premium experience. But what is it, how much is it, and how does it affect you or your loved one?

What is HELF?

In simple terms, HELF is a fee for extra services in residential aged care homes. This includes “higher living” services like premium meals, in-room television services, Wi-Fi usage, just to name a few. It’s taken over the need for multiple fees at once, like the Extra Service Fee and Additional Service Fee.

Is HELF compulsory?

The good news is that it’s a completely optional fee, and you can choose whether you or your loved one is willing to pay for the premium service. If you don’t choose to pay for this option, you shouldn’t be forced or charged for it by a provider. 

What if I don’t want to pay for HELF? Will I get less than others?

As per the law, non-HELF-paying residents will not be given lesser living conditions. All residential aged care residents will receive standard high-quality care and services under the Aged Care Quality Standards and the Service List, but HELF-paying residents will simply receive additional benefits. 

Choosing not to pay for HELF won’t prevent you from finding a place in a home, but a specific room you’re interested in may come with the fee built in. When looking at a particular facility, ask for the fee, and your right to decline it, in writing. Providers should be transparent and clear about how HELF comes into play in their particular facility. 

How much is HELF?

HELF is also not a “one size fits all” service fee. Each establishment and its provider sets its own price and services, all at its own discretion. Prices vary between different aged care homes and sometimes between rooms in the same facility. It’s important to ensure that you know exactly how much the home will be charging you for your specific choices. 

Before agreeing to anything in writing, make sure you’re clear on what you’re signing 

Here are some questions to ask your provider to get a better picture of how it will affect you: 

  • How much is HELF for this particular provider?

  • What are the premium services that come with this fee for this particular provider?

  • Do I still have to pay it even if I don’t use all the services?

  • How often is HELF charged?

  • How much notice will I get if the price goes up?

HELF is one part of a much bigger picture. When selecting a residential facility, you will encounter basic daily fees, means-tested care contributions, and accommodation costs, with this new premium option potentially added to the mix. None of it needs to be worked out alone, and none of it needs to be decided on the spot.

Your checklist

  • Take the price list home. 

  • Ask for the details in writing. 

  • Compare a few homes before you choose. 

  • If a fee isn’t clear, ask again until it is.

Understanding a fee like HELF is just one step in finding the right home. With the right questions, and the right support, that step gets a lot easier to take.

Source: AgedCareGuide
Reproduced with permission of Care & Co Media. This article was originally published on https://www.agedcareguide.com.au/talking-aged-care/aged-care-101-what-is-higher-everyday-living-fee-helf Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business. Our business does not take any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.