Friends With Money

💰 How can investors maximise returns after Australia's biggest tax shake-up in decades?
❓ Question: With major tax reforms set to begin from July 1, 2027, what investment strategies could help Australians grow wealth more effectively while navigating the end of the 50% capital gains tax discount and changes to negative gearing?
✅ Answer: According to Nicola Field, one of Australia's most significant tax reforms in recent years will reshape the way investors think about property, shares, ETFs and wealth-building. While some traditional strategies may become less attractive, investors still have opportunities to maximise after-tax returns by focusing on income-producing assets, ETFs, investment bonds and superannuation. The key is understanding how the new rules change the tax treatment of different investments and preparing well before the reforms take effect.
💡 The government had two key goals in mind. The reforms aim to improve housing affordability by reducing investor competition for established homes while also ensuring higher-wealth Australians contribute more tax. According to Nicola Field, policymakers were responding to the growing dominance of investors in the housing market and concerns that wealthy Australians derive much of their income from more lightly taxed sources such as capital gains, trusts and dividends.
💡 Investment property rules are changing significantly. From July 2027, investors purchasing established properties will no longer receive the benefits of negative gearing. Capital gains on investment assets will also move away from the long-standing 50% CGT discount, with gains instead indexed for inflation and subject to a minimum tax rate of 30%. New-build investment properties will continue to enjoy more favourable tax treatment.
💡 Income-focused investments could become more attractive. Assets that generate regular income rather than relying heavily on capital growth may gain popularity under the new rules. Nicola highlights private credit funds, income-focused ETFs and high-dividend shares such as Telstra and Transurban as examples that may appeal to investors seeking tax-efficient returns.
💡 Investment bonds are enjoying a resurgence. Often overlooked, investment bonds offer a compelling proposition under the new regime. Earnings are taxed at a maximum of 30% within the bond structure, and withdrawals can be tax-free after 10 years, making them particularly attractive for long-term investors and families planning for future generations.
💡 ETFs may become even more popular. Beyond diversification and low costs, ETFs can offer administrative and tax advantages. Because index-tracking ETFs make relatively few portfolio changes, they typically generate fewer capital gains events. They can also simplify record-keeping, making future tax calculations much easier than managing large portfolios of individual shares.
⚠️ Investors should not wait until 2027 to act. Nicola Field suggests reviewing loss-making investments ahead of the new rules. Capital losses realised before July 2027 may be more valuable because future losses will not receive the benefit of inflation indexation. Investors holding pre-CGT assets acquired before 1985 may also want to consider their options before gains become taxable under the new framework.
👥 Different generations may need different strategies.
• Gen Z: The First Home Super Saver Scheme remains a powerful tool, combining tax savings with the potential for stronger returns than traditional savings accounts.
• Millennials: ETFs continue to offer diversification, simplicity and tax efficiency while balancing the financial demands of mortgages and young families.
• Gen X: With retirement becoming more visible on the horizon, superannuation grows increasingly attractive. Investment bonds may also suit those wanting to build wealth for children.
• Baby Boomers: Superannuation remains a standout option, while investment bonds can provide a tax-effective way to invest for grandchildren.
🏦 Superannuation remains the standout winner. Despite all the tax reforms, super continues to offer compelling advantages through concessional tax treatment, tax deductions on contributions and long-term wealth accumulation benefits. The trade-off, of course, is accessibility, as funds remain locked away until preservation age. For many Australians, however, it remains one of the most effective wealth-building tools available.
💡 Why it matters:
The federal government's tax reforms will fundamentally change how Australians invest from July 2027. Strategies that have been staples for decades, including negative gearing and the 50% capital gains tax discount, will no longer deliver the same benefits. Investors who understand the changes early can take advantage of emerging opportunities in ETFs, investment bonds, income-producing assets and superannuation. The challenge now is not just growing wealth, but maximising what you keep after tax.
🎙️ Sources:
Nicola Field, finance writer
Vanessa Walker, managing editor, Money magazine and host, Friends With Money podcast
⏱️ Timestamps:
00:00 – Why the government is reforming Australia's tax system
01:07 – Helping first-home buyers and taxing wealth more fairly
02:28 – Key tax changes that have passed
03:45 – What the reforms mean for shares, ETFs and managed funds
04:12 – Income investments that may benefit under the new rules
05:00 – Why investment bonds are back in focus
05:34 – Are ETFs more tax-effective than individual shares?
07:09 – What investors should do before July 2027
08:43 – Investment strategies for Gen Z
09:29 – Why ETFs suit millennials
09:57 – Opportunities for Gen X investors
10:38 – The best options for baby boomers
10:53 – Is superannuation still Australia's best investment?
12:01 – Money magazine's guide to investing for maximum profitPodcast Links:
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After a stellar 2025, cryptocurrency has endured a difficult start to 2026. So what's behind the downturn and where do investors go from here?
On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Justin Lin, investment strategist at Global X ETFs, to discuss the latest price movements and what could lie ahead for the crypto market.

00:00 Introduction
01:45 Bitcoin and Ethereum performance in 2026
02:55 What's been driving the downturn?
05:15 How Australian investors are reacting
07:45 Crypto battles AI for investor attention
09:20 Institutional demand and ETF adoption
11:00 The long-term investment case
13:45 Outlook for the second half of 2026 and beyond
14:55 Conclusion

#friendswithmoney #tomwatson #justinlin #crypto #bitcoin

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Self-managed super funds now hold more than $1 trillion in assets, yet many Australians still aren't sure how they work or whether they could be an option worth considering.

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Marisa Broome, certified financial planner and principal of wealthadvice.com.au, to explain the mechanics, benefits and risks of self-managed super funds (SMSFs).

00:00 Introduction
01:45 What an SMSF is and how it differs from retail and industry funds
03:25 Why fees and asset allocation matter
05:00 Why people choose SMSFs
06:20 Who SMSFs are best suited to (and who should avoid them)
08:45 How much money you should have before starting an SMSF
10:00 The practical steps involved in setting up a fund
15:00 Why investors should do their homework before setting up an SMSF
16:15 Conclusion

#friendswithmoney #tomwatson #marisabroome #super #smsf

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Debt can help fund life's big purchases. But for some, it can become a major source of financial stress. So where should people start if they want to get on top of it?
On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Deb Shroot, financial counsellor and Financial Counselling Australia sector advocate, to discuss prioritising debt, freeing up cash flow and working towards becoming debt free.

00:00 Introduction
02:00 Rising debt stress: mortgages, credit cards and utilities
03:00 First steps when debt feels overwhelming
04:30 How to prioritise multiple debts
07:00 The danger of the debt spiral
08:00 Common debt repayment mistakes and hardship options
09:00 Where to find extra money in a tight budget
12:00 Why you should seek help before reaching breaking point
14:00 Building healthy financial habits that last
15:00 Seeking trustworthy financial advice
16:05 Conclusion

#friendswithmoney #tomwatson #debshroot #debt

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Live where you want, buy where you can – that’s been the idea behind rentvesting. But are policy tweaks and market swings changing the equation?

On this episode of the Friends With Money podcast, Money’s Tom Watson is joined by Arjun Paliwal, founder and chief executive of InvestorKit, to discuss the latest rentvesting developments.

00:00 Introduction
02:43 Who is rentvesting used by?
04:15 The tax changes impacting rentvesting
06:02 Is rentvesting still worth it?
06:27 Sydney case study and numbers
12:04 The rentvesting decision checklist
15:34 How investors should adapt to policy changes
19:49 Final lessons for long-term investors
22:05 Conclusion

#friendswithmoney #tomwatson #arjunpaliwal #property #rentvesting

Podcast Links:
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Money Website
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