Jacqueline Barton

The September quarter offered a sense of cautious optimism.

After two years of sharp policy moves and shifting sentiment, inflation finally showed signs of settling, and central banks began to hold steady. Growth has slowed, but in many ways, that’s the reset the global economy needed.

1. Gold shines as a global safe haven

Gold has been one of the strongest performers this quarter, rising to around US$4,100 an ounce in early October, its highest level on record. The climb reflects a mix of central banks increasing their reserves, investors seeking security amid geopolitical tensions, and ongoing uncertainty in equity markets.

For Australia, this surge carries weight. Treasury now expects gold exports to reach roughly A$60 billion in 2025–26, overtaking LNG as our second-largest resource export. That’s a valuable offset to softer demand for iron ore and lithium from China, as well as a boost to national income. Producers such as Northern Star and Newmont Australia are among those benefiting, supporting regional employment and investment in Western Australia and Queensland.

2. The US takes a measured approach

In the United States, the Federal Reserve trimmed its benchmark rate by 0.25% in September. Inflation has cooled to about 2.5%, close to the target, while growth remains moderate at a forecast of 2.3% for 2025. Markets were largely steady, with the S&P 500 edging up 0.4% over the quarter.

However, a late-September proposal to raise tariffs on Chinese goods reminded investors that geopolitics can shift market mood quickly. The broader theme remains resilience: the US economy appears stable enough to avoid recession, though momentum is softer than in previous years.

3. Australian shares reflect a focus on quality

Closer to home, the ASX 200 slipped 1.8% to finish near 8,880 points. Financials were a standout, led by ANZ’s ten-year high following its 2030 cost-reduction strategy. By contrast, technology, property, and healthcare stocks eased as investors favoured companies with reliable cash flow and steady dividends.

The mood across the market is one of discernment rather than exuberance. Investors are prioritising quality, income, and consistency, factors that tend to matter most as interest rates plateau and earnings normalise.

4. Interest rates: patience prevails

The Reserve Bank of Australia has kept the cash rate at 3.6% since May. Inflation has slowed to 2.1% and unemployment remains around 4.2%, suggesting the economy is holding up under tighter conditions.

The RBA has signalled no urgency to move rates. Markets currently expect the next change to be a cut sometime in mid-2026, though that could arrive earlier if spending or employment softens. For now, households and businesses can expect a period of relative stability after the sharp adjustments of recent years.

5. Oil prices and Australia’s balancing act

Oil prices have been volatile, fluctuating between US$82 and US$95 per barrel during the quarter as OPEC+ supply limits and regional tensions kept markets tight.

For Australia, the impact cuts both ways. Higher energy prices lift export income from LNG and petroleum, yet they also push up freight and production costs, which can feed into inflation. The RBA will be watching closely to ensure rising fuel costs do not erode recent progress on prices.

6. Policy developments to note

Several domestic policy shifts emerged over the quarter:

• Superannuation tax adjustments: The government confirmed that tax will apply only to realised gains on balances above $3 million, at 30% between $3 million and $10 million, and at 40% above that threshold.

• Critical-minerals initiative: Consultations began on a $1.2 billion national stockpile aimed at improving resource security and supply resilience.

• Industrial support: A $600 million assistance package was announced to maintain Glencore’s Mount Isa and Townsville operations, preserving regional jobs.

• Currency movements: The Australian dollar traded between US63 cents and US67 cents, supported by commodity strength but restrained by global uncertainty.

Each of these decisions plays into broader economic stability and highlights the government’s focus on long-term competitiveness and resilience.

7. The outlook for 2026

As 2025 draws to a close, the global economy appears to be finding a steadier rhythm. Inflation is moderating, labour markets remain firm and central banks are adopting a measured stance. For investors, the main message is balance: maintain diversification, stay focused on quality assets, and avoid overreacting to short-term market shifts.

Each of these strategies can be valuable, but they can also be complex to implement. Seek personal financial advice if you think they may suit your situation.

If you would like to discuss how these developments may relate to your financial goals, please reach out to the team at Stream Financial.

Selling the family home can be an emotional decision, but for many Australians it also represents one of the largest opportunities to strengthen their retirement position.

The government’s downsizer contribution rules allow eligible homeowners to transfer part of the sale proceeds into their superannuation in a tax-effective way. Understanding the finer points can help you decide whether this strategy fits your broader retirement plan.

Why downsizing can make financial sense

For people approaching or already in retirement, the family home often holds substantial untapped equity. Shifting to a smaller property can release capital that could otherwise sit idle. Adding those funds to super can offer significant tax advantages, since superannuation earnings are generally taxed at just 15 per cent in the accumulation phase and may become tax-free once converted to a pension account.

Superannuation is often one of the most tax-effective environments for long-term investing, so using the downsizer contribution rules can improve your retirement income potential compared to holding the money in a bank account or investment portfolio outside super.

How the downsizer contribution rules work

If you are 55 or older and have owned your home for at least ten years, you may be eligible to contribute up to $300,000 from the sale into your superannuation. For couples, that amount doubles to a combined $600,000 if both individuals meet the criteria.

To qualify, the home must generally have been your main residence for most of the ownership period, meaning you lived in it rather than renting it out. The contribution needs to be made within 90 days of settlement, unless an extension is approved, and you must provide your super fund with a completed Downsizer Contribution into Superannuation form.

Importantly, this contribution does not count toward your usual concessional or non-concessional caps, and it can be made regardless of your total super balance. Even those aged over 75 can use this rule, which is an exception to the usual contribution age limits.

The potential tax benefits

Beyond the immediate ability to move funds into super, the main attraction lies in the tax treatment. Super earnings are taxed at a maximum of 15 per cent while you are still in the accumulation phase, compared to marginal rates that can reach up to 45 per cent outside super. Once you start drawing a pension from your fund, both investment earnings and withdrawals are generally tax-free.

This structure can make a significant difference over the course of retirement, particularly if the proceeds of your home sale would otherwise sit in a taxable account generating interest or dividends.

What to watch for

Despite the advantages, downsizer contributions are not always straightforward. There are several considerations to work through before deciding whether the move makes sense.

Impact on Age Pension eligibility
Your family home is exempt from Centrelink’s assets test, but once sold, the proceeds become assessable if placed in super. This can affect both the income and assets tests used to determine your Age Pension entitlement. In some cases, a person who previously received a part pension may lose eligibility once their assessable assets rise. For others, the reduction in pension payments may be modest compared to the benefits of higher investment income. A financial adviser can model both scenarios before you sell.

Access to funds
Money contributed to super under the downsizer rules will generally remain preserved until you reach your preservation age and retire, or until you turn 65. If you are under that threshold, the funds may not be available for several years, so it’s important to keep enough cash or liquid investments outside super for short-term needs.

Investment risk
Superannuation funds invest across various markets, including shares, property and fixed income. Market movements can influence returns over time. If you have a low tolerance for volatility, consider reviewing your super’s investment mix to align with your comfort level before contributing a large sum.

Estate planning considerations
The home and superannuation are treated differently under tax law when passed on after death. A property can often be transferred to beneficiaries tax-free if it was your main residence. By contrast, superannuation death benefits paid to non-dependent beneficiaries may attract tax of up to 17 per cent on the taxed element and up to 32 per cent on any untaxed element. This distinction can be important when planning how your assets will be distributed.

Balancing lifestyle and financial goals

While the financial aspects are critical, it is worth acknowledging that downsizing is also a personal transition. You might choose to move to a coastal apartment, a smaller home closer to family, or a regional town that offers a slower pace of life. Each choice has financial implications as well as lifestyle ones.

It’s also worth remembering that not every downsize leads to a cash surplus. Depending on where you buy, transaction costs and price differences between markets can narrow the available funds for contribution. Careful budgeting and advice can help you see the full picture before you commit to a sale.

A considered decision

Downsizing can free up equity, simplify your lifestyle, and potentially improve your retirement income. Yet it can also introduce complexity in taxation, superannuation rules and Age Pension assessments. Each of these strategies can be valuable, but they can also be complex to implement. Seek personal financial advice if you think they may suit your situation.

If you would like to discuss how this applies to you, please contact our friendly team at Stream Financial.

When tax time rolls around, many Australians find themselves with a refund.

It can be tempting to think of it as free money, but it’s really just your own funds being returned after you’ve overpaid through the year.

Rather than letting it disappear on something fleeting, your refund can be the spark for long-term financial benefits. Here are eight practical ways to make it work harder for you.

1. Pay down high-interest debt

If you carry credit card balances or personal loans, using your refund to reduce them can bring an immediate return. Credit card interest often sits near 20% per annum, far above the cost of most mortgages. Clearing this debt frees up your future cash flow and gives you a stronger foundation for investing.

2. Invest in your own skills

Boosting your education or training can increase your earning power over time. Whether it’s a professional qualification, a technical course, or a short program to help you step up in your current role, this type of investment can pay dividends in career flexibility and higher income. In some cases, the cost may be tax-deductible if the course relates directly to your work.

3. Add to your super

Your employer’s contributions are important, but voluntary contributions can accelerate the growth of your super balance. Some people choose to arrange salary sacrifice through their employer and use their tax refund to offset the short-term drop in take-home pay. Depending on your income, you may also qualify for the government’s co-contribution scheme, which can add up to $500 a year to your super. That’s effectively a risk-free boost to your retirement savings.

4. Start or top up an investment portfolio

Managed funds and exchange-traded funds make it simple to start investing with relatively small amounts. For example, a $1,000 refund invested each year could grow substantially over two decades thanks to compounding returns, though of course actual performance will vary. The key is to give your investments time in the market rather than trying to time the market.

5. Create an emergency buffer

Unexpected expenses can arrive without warning such as a car repair, dental bill or appliance breakdown. Placing your refund into a high-interest savings account earmarked as an emergency fund means you can meet these costs without resorting to high-interest debt. For coastal households, where storm repairs or seasonal job fluctuations can occur, this buffer can be especially valuable.

6. Use your mortgage offset or make extra repayments

Home loans are usually the largest liability for Australian households. Placing your refund in a mortgage offset account can reduce the interest charged, often by more than you’d earn in a regular savings account. Alternatively, committing to extra repayments each year can cut years off your loan term and save tens of thousands in interest. Even a modest $100 per month, if sustained, makes a noticeable difference over the life of a loan.

7. Pay annual bills upfront

Insurers and councils often add surcharges to monthly payment options. Using your refund to pay car registration, property rates or health insurance in one go can save money over the year. It also reduces the stress of multiple monthly debits and helps smooth your household cash flow.

8. Leave room for enjoyment

Financial discipline doesn’t mean excluding enjoyment. Setting aside a small share of your refund for something memorable, perhaps a weekend away or upgrading gear for a favourite hobby, allows you to celebrate without sacrificing long-term benefits. Balance is important, and making conscious choices with your money can be more satisfying than letting it vanish without thought.

Bringing it all together

A tax refund can be a useful opportunity to improve your finances, whether that means reducing debt, increasing savings or investing for the future. Each of these strategies can be valuable, but they can also be complex to implement. If you would like to explore how they might fit with your goals, please reach out to the team at Stream Financial.

Funerals are one of life’s inevitable costs, yet many people avoid thinking about how they will be paid for. Planning ahead can spare loved ones from financial strain and provide peace of mind. One option that deserves consideration is a funeral bond, which allows you to set aside money in advance in a structured way.

Unlike funeral insurance, which involves paying ongoing premiums, funeral bonds work more like an investment that steadily grows until it is needed. They can offer flexibility, potential tax advantages and, in some cases, favourable treatment from Centrelink.

What a funeral bond is

A funeral bond is an investment product specifically designed to cover funeral expenses. It is generally offered by friendly societies, life insurance companies and some funeral directors. A friendly society is a member-based mutual organisation that provides financial services, often with a focus on community benefit.

When you purchase a bond, your money is pooled into a managed fund. The funds can only be accessed after you pass away, at which point the proceeds are paid to your estate or directly to your nominated funeral provider. Until then, the balance earns interest like other managed investments.

How Centrelink treats funeral bonds

For anyone receiving or planning to apply for the age pension, Centrelink’s rules are important. Funeral bonds are normally counted under the assets test. That means your share of the investment, plus any earnings, is included in your assessable assets and deemed to generate income.

However, there is an exemption. If the total value of your funeral bonds does not exceed the Funeral Bond Allowable Limit (FBAL) and you do not have a prepaid funeral arrangement in place, the bond can be disregarded under the assets test. The FBAL is indexed annually on 1 July and is currently $15,750. You can hold more than one bond, but the combined total across them must stay below this limit for the exemption to apply.

To illustrate: if you have one funeral bond worth $12,000 and another worth $3,000, both may be exempt from the assets test provided you have no prepaid funeral contract. If instead you have $20,000 across bonds, only the first $15,750 is exempt and the remainder is assessed.

It is essential to tell Centrelink about any funeral bonds, even if they are exempt, so your records remain accurate.

Benefits and conditions of funeral bonds

One of the main advantages of a funeral bond is that the proceeds are paid out tax-free. This ensures the funds are available in full when required, without reducing the benefit through tax at the time of payment.

Funeral bonds also give families flexibility. The money can generally be used with any funeral director, meaning your loved ones are not locked into a particular provider. Some bonds offer additional features such as covering the cost of transporting the deceased back to their home town or interstate, which can be valuable for those living away from family or who travel frequently.

It is important to note that conditions differ between providers. Some bonds pay out the full balance regardless of the actual funeral cost, while others only release the amount required for expenses. In many cases, any surplus after the funeral is returned to the estate. Reading the product terms carefully will help avoid surprises later.

Things to consider before investing

While funeral bonds can be a practical solution, they are not suitable for everyone. The money cannot be accessed during your lifetime, so you should be confident you can set it aside without affecting other financial goals.

It is also worth weighing them against alternatives. A prepaid funeral, for instance, involves paying a funeral director upfront for a specified service at today’s prices. This locks in arrangements but reduces flexibility. Funeral insurance spreads the cost over time but generally becomes more expensive in the long run, as premiums may continue indefinitely.

Each approach has strengths and drawbacks. Choosing the right one depends on your circumstances, your pension eligibility, and how much flexibility you want your family to have in the future.

A tool best used with guidance

Funeral bonds sit at the intersection of financial planning, estate management and aged care considerations. Each of these strategies can be valuable, but they can also be complex to implement. Seeking personal financial advice will help ensure the option you choose fits comfortably within your overall plan.

A practical way to prepare

By setting aside money in a funeral bond, you can ensure that funds are available when needed, ease the administrative burden on family members and potentially gain Centrelink advantages. While it may not be the most comfortable subject to consider, preparing in advance can be an act of care and foresight.

If you would like to discuss how this applies to you, please reach out to our friendly team at Stream Financial.

For many Australians, owning a home outright is a long-standing financial goal. Paying down your mortgage as quickly as possible feels like a natural priority, especially since interest on a home loan is not tax deductible. But when you’re ahead on repayments or have extra cash flow, it may be worth asking if putting more money into the loan is the most efficient use of your funds.

In some cases, alternative strategies can offer stronger long-term outcomes. Whether you’re mid-career with surplus income or nearing retirement with a manageable loan balance, it’s worth exploring where your money works hardest.

1. Consider salary sacrificing into super

Your home loan repayments are made with after-tax dollars. If you have a spare $80 a week, that’s money already taxed at your marginal rate. By salary sacrificing that amount into superannuation instead, you could contribute more before tax. For example, if you’re on the top marginal rate of 47 percent including the Medicare levy, you could contribute $150 from your pre-tax income, which becomes $80 less in your take-home pay. That contribution would be taxed at just 15 percent within the fund (or 30 percent for high-income earners), allowing more of your earnings to be invested.

If your super fund is generating a return that exceeds your mortgage interest rate, you may come out ahead. This is especially true over longer time frames where compound growth becomes significant. The trade-off is access, since superannuation is preserved until you meet a condition of release.

2. Explore investment options using borrowed funds

Another approach is to use surplus cash flow to support an investment loan. While your home loan interest is not tax deductible, interest on an investment loan typically is. This offers a different tax treatment that can improve the overall return. If the net investment performance (income and capital growth, after costs) exceeds the after-tax cost of your home loan, the strategy may help build wealth faster.

This route carries more risk and should align with your long-term objectives and comfort with market fluctuations. Property, managed funds or shares can all be considered depending on your financial position and time frame.

3. Weigh up liquidity, risk and time horizon

The numbers matter, but they are not the only factor. Mortgage repayments offer certainty and reduce household risk. Extra super contributions are tax-efficient but cannot be accessed until retirement. Investments may outperform over time but can fluctuate and require careful planning.

Each of these strategies can be valuable, but they can also be complex to implement. If you’re weighing up your options, our team at Stream Financial would be happy to help you explore what may suit your situation.

Across Australia, more than a million people hold more than one job. It’s often a way to build income, diversify interests, or bridge into a new career. But if an injury puts them out of work, even temporarily, the cracks in state-based compensation systems can quickly show.

Workers compensation is designed to cover medical costs and part of your income if you’re injured on the job. But when you work more than one job, that income support may not reflect your full weekly earnings.

Here’s how it works, and where support may fall short.

A case of competing rules

Brie is 30 and works two jobs. Her main role is as a learning support assistant for a local primary school, and once a week she also works as a disability support provider. Together, she earns around $2,360 per week.

After a serious fall at the school, Brie finds herself unable to work for at least two months. Because the injury happened at her main workplace, she’s covered by that employer’s workers compensation policy. This means her salary from the school is partly covered, along with medical expenses.

But what about her second job?

That depends entirely on the state or territory where she works. Workers compensation is state-based, and each jurisdiction has its own rules about whether secondary income is included in the calculation of payments.

For example:

• In NSW and WA, the law explicitly allows earnings from more than one job to be counted in the compensation formula.
• In Victoria and Queensland, the picture is less clear. Income from a second job may be excluded, especially if the injury occurred during the first job and the second employer is unrelated.

Even though Brie cannot work either job due to her injury, she may only receive compensation for the role in which the accident occurred. This can come as a surprise to those who rely on multiple streams of income, particularly where a second job provides significant supplementary earnings.

Compensation is capped and often decreases

Another common issue is that compensation is capped. In NSW, for instance, the maximum weekly payment as at July 2024 is based on 95 percent of income, capped at $2,569.60 per week. That equates to around $134,000 annually. Victoria uses a cap based on 95 percent of $2,800 per week.

For higher-income earners, this may be far below their actual pre-injury earnings. The gap may widen further over time. In many states:

• You receive around 95 percent of your income for the first 13 weeks
• After that period, payments may reduce to 80 percent, depending on your location and whether you’ve returned to any form of work

If you do return in a reduced capacity, your partial earnings are factored in, often using a new calculation to determine the top-up amount. Again, the rules vary by jurisdiction.

Where a financial adviser can assist

These complexities are rarely front of mind until someone is injured and dealing with financial stress. A financial adviser can help make this period easier by offering practical and strategic guidance.

Support may include:

• Reviewing your cashflow and helping to restructure a short-term budget
• Recommending a legal review if you may be entitled to additional compensation
• Assisting with hardship applications or loan deferrals
• Reviewing your super to determine if early access under hardship provisions is appropriate
• Checking your personal or super-held insurance for potential income protection or lump sum cover

An adviser can also help you prepare in advance. For those with more than one job or a variable income, income protection insurance can offer a broader and more predictable safety net. Unlike workers compensation, it can cover you across jobs and apply regardless of how or where the injury occurred.

Multiple jobs matter, but not always in the rules

Holding more than one job is common in regional towns, coastal communities and city suburbs alike. Yet despite being part of a growing economic reality, these arrangements are not always recognised fully by existing compensation systems.

If you are injured at one job and it affects your ability to work elsewhere, the financial shortfall can be substantial. And in some states, that gap is not covered at all.

If you’d like to understand how a compensation claim might affect your income or explore what cover is available to protect your situation, our team at Stream Financial is here to help.