Australia’s high-net-worth investors are facing a pivotal moment. The Federal Government’s decision to cap superannuation concessions at $10 million, with a headline tax rate of 40 per cent on balances above this threshold, signals a fundamental shift in the nation’s retirement savings framework. For those accustomed to leveraging superannuation as a cornerstone of their wealth strategy, the landscape is changing—and fast. The New Reality: Superannuation’s Diminished Appeal T

At Wealth Effect Group, we are committed to keeping our clients informed of regulatory developments that may impact their financial strategies. The Australian Taxation Office (ATO) has recently signalled a significant shift in its approach to the use of family trusts by professionals, with a renewed focus on anti-avoidance provisions and personal services income (PSI) rules. Key Developments The ATO is preparing to release a final “practical compliance guide” (PCG) for person

The federal government has responded to fierce industry criticism, abandoning its plan to tax unrealised gains in superannuation. However, the revised Division 296 proposal, set to commence from July 1, 2026, will still impose significant new taxes on Australia’s largest super balances. Key Changes: No Tax on Unrealised Gains:  The most contentious element—taxing paper gains—has been dropped. Only realised earnings will be taxed, removing the risk of members facing tax bills

Let’s talk about something that’s been happening quietly in the background of Australia’s wealth scene: the rise of family offices. If...

By Andre Dirckze | Wealth Management Strategist. Gold Coast, May 26, 2025  — In the quiet corridors of wealth management firms and the boardrooms of self-managed super funds, a new acronym is causing a stir: Division 296 . It’s not just another line in the tax code—it’s a seismic shift in how Australia treats retirement savings. And for those with more than $3 million in superannuation, the clock is ticking. The Basics: What Is Division 296? From 1 July 2025 , individuals wi

In the wake of the government's recent adjustments to stage three tax cuts, affluent individuals are turning their attention towards...

Many Australians now potentially meet the criteria for being certified as sophisticated investors. However, it's crucial to thoroughly...

Australia’s federal election was held on Saturday 21 May 2022. The Liberal-National Coalition (LNP) government, led by Scott Morrison,...

With Australian businesses devoting more time and resources to finding new ways to reduce their carbon footprint ― and the investment...

Michael is age 60 and is the founder and 50% shareholder of a Gold Coast-based advertising company, while Helen, aged 55, is the...

This summary provides commentary on the economic view of the federal budget announcements and highlights key changes for investors,...

Russia’s invasion of Ukraine has been rapid and dramatic, but the likely economic consequences will be slower to materialise and by...

Equities were sharply lower across the globe following Russia's attack on Ukraine. Risk assets sold off by around 3% and most share...

Growth will slow in 2022 but settle at an above-trend rate for the second consecutive year. We expect the US to outperform Europe and...

The lower for longer theme faced its greatest challenge yet last year. The tussle between labour and capital for the spoils of growth was writ large with the crisis that hit the poorest cohorts of society the hardest while big business got bigger. The move to address income and wealth inequalities was elevated as a result. While much has changed in the past two years, we tend to be of the view that the structural trends that were driving the environment of lower growth, lower