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If you haven’t looked closely at your super since the new financial year started, now’s a good time. A handful of significant changes landed on 1 July 2026, from how often your employer pays your super, through to how much you can contribute and a new tax that applies once a balance crosses $3 million. None of these changes need to be complicated, but a few are easy to miss if nobody points them out. Here’s what’s actually different this year and what’s worth checking in your own fund.
For most of super’s history, employers only had to pay your Super Guarantee (SG) contributions quarterly. As of 1 July 2026, that’s changed. Employers now need to pay your super at the same time as your wages, generally within seven business days of each payday. This is what’s being called “payday super”, and it’s now a legal requirement rather than a best-practice suggestion.
For employees, the upside is straightforward. Your super starts earning returns sooner instead of sitting with your employer for up to three months at a time, which adds up to a small but genuine compounding benefit over a working life. It also makes it far easier to spot a problem. The ATO now has real-time visibility of super payments, so if your employer falls behind, it shows up much faster than it used to under the old quarterly system.
It’s worth taking two minutes to check your last few payslips against your super fund’s transaction history to confirm contributions are actually landing on schedule. If they’re not, that’s worth raising with your employer or getting advice on.
Both major contribution caps increased this financial year, which opens up more room for people who are in a position to top up their super.
The concessional cap, which covers employer SG contributions and any salary sacrifice you make, has risen from $30,000 to $32,500 for 2026-27. These contributions are taxed at 15% inside your super fund, generally well below most people’s marginal tax rate, which is what makes salary sacrificing attractive for many.
If your total super balance was under $500,000 at 30 June last year, you may also be able to use unused concessional cap space from previous financial years, on top of this year’s $32,500. Unused amounts carry forward for five years before they expire, so it’s worth checking your available carry-forward balance in ATO online services before assuming your cap is just $32,500 for the year.
The non-concessional cap has increased from $120,000 to $130,000. If you’re eligible to use the bring-forward rule, which lets you pull forward up to three years of caps into a single contribution, the maximum has risen to $390,000. How much you can actually bring forward now depends on your total super balance at 30 June the previous year:
That $2.1 million figure lines up with the general transfer balance cap, which also increased this year (more on that below). If you’re weighing up a large after-tax contribution, whether from savings, an inheritance, or the sale of an asset, this is one to get right before you make the transfer, since exceeding your cap can trigger extra tax.
Division 296 is now law and applies from the 2026-27 financial year onward. In plain terms, it adds an extra 15% tax on the portion of investment earnings attributable to a total super balance above $3 million. If your balance is above $10 million, there’s a further 10% on the portion above that mark, on top of the standard tax already applied inside super.
A few practical points worth knowing:
If your balance is approaching $3 million, or you expect it to get there over the next few years through growth alone, it’s worth getting advice on how this affects your broader retirement and estate planning, rather than waiting for the first assessment to land.
A couple of smaller but still useful changes came in alongside the headline items:
None of these changes require urgent action for most people, but a few checks are worth making before the next quarter rolls around:
At 360 Financial Strategists, we are here to help. Whether you’re reviewing your mortgage, building wealth, or planning for retirement, our advisers can help you develop a clear financial strategy.
Book a consultation with our team today
What is payday super and when did it start? Payday super is the requirement for employers to pay Super Guarantee contributions at the same time as wages, generally within seven business days of each payday. It became law on 1 July 2026, replacing the previous quarterly payment system.
How much can I contribute to super before tax in 2026-27? The concessional (before-tax) contributions cap for 2026-27 is $32,500. This includes employer SG contributions and any salary sacrifice you make. You may also have access to unused cap amounts from the previous five years if your total super balance was under $500,000 at 30 June 2026.
What is the Division 296 super tax? Division 296 is a new tax that applies an extra 15% on investment earnings linked to the portion of a total super balance above $3 million, and a further 10% on the portion above $10 million. It applies from the 2026-27 financial year, with the first assessments expected in 2027-28.
Has the Super Guarantee rate changed this year? No. The SG rate has been 12% since 1 July 2025, which was the final step in a legislated series of increases. It hasn’t changed for 2026-27.
Do I need to do anything differently with my super fund because of these changes? Not necessarily. The changes mostly affect how much you can contribute and how often your employer pays, rather than requiring you to switch funds. That said, if your balance is approaching $3 million or you’re planning a large contribution, it’s worth getting advice specific to your situation before acting.
The 2026 Australian Federal Budget introduces tax reforms, housing policy changes and cost-of-living measures. Key changes include limiting negative gearing to new property builds, replacing the 50% capital gains tax discount with inflation indexation and a minimum 30% tax, introducing a $250 Working Australians Tax Offset, and simplifying work expense claims with a $1,000 standard deduction.
These reforms aim to improve housing affordability, support workers and strengthen the economy.
The 2026 Australian Federal Budget introduced several major reforms aimed at improving housing affordability, supporting workers, and strengthening the economy during a period of global uncertainty and elevated inflation.
The centerpiece of the Budget focuses on tax reform, property investment changes and cost-of-living relief, alongside funding changes across healthcare, aged care and disability support.
From 1 July 2027, the current 50% CGT discount for assets held longer than 12 months will be removed and replaced with inflation indexation and a minimum 30% tax on capital gains.
This change applies to:
However, transitional arrangements mean only gains from July 2027 onwards will be affected.
To improve housing supply, negative gearing will only apply to newly built residential properties from 1 July 2027.
Important details:
Negative gearing occurs when the costs of owning an investment asset, such as interest on loans, maintenance, and rates exceed the income it generates (e.g., rent). This creates a net loss, which investors can deduct from their other income, such as salary, to reduce their overall tax bill.
From 1 July 2028, the Government will introduce a minimum tax on discretionary trusts, requiring trustees to pay
tax at a minimum rate of 30% on the taxable income of the trust. Beneficiaries, other than corporate beneficiaries,
will receive non-refundable credits for the tax payable by the trustee.
The following trusts will be exempt from the new minimum tax:
The following types of income are also proposed to be excluded from the new minimum tax:
A permanent $250 Working Australians Tax Offset (WATO) will be introduced to help reduce the tax burden on workers.
Combined with previously legislated tax cuts, this increases the effective tax-free threshold to around $19,985.
From 1 July 2026, taxpayers can claim a standard $1,000 deduction for work-related expenses without needing receipts.
If actual work expenses exceed $1,000, individuals can still claim their full deductions under existing rules.
The Budget includes measures to ease household costs including:
PBS medicine refers to prescription medication subsidized by the Australian Government through the Pharmaceutical Benefits Scheme (PBS).
The Government will implement changes to the National Disability Insurance Scheme to deliver more than $36 billion in savings over four years, aiming to return the scheme to its original intent while ensuring long-term sustainability.
Small businesses receive continued support including:
These changes aim to stimulate investment and support business growth.
For many Australians, the Federal Budget delivers moderate cost-of-living relief rather than major cash payments.
Key benefits include:
However, inflation remains a major economic concern.
Inflation is forecast to reach around 5%, meaning many households may still face pressure from higher costs for essentials like housing, groceries and energy.
Australia’s economy is currently navigating:
The Budget attempts to balance economic stability with long-term structural reforms, particularly in housing and tax policy.
While savings from programs like the NDIS help improve the Budget position, economic conditions will continue to influence interest rates and financial markets in the years ahead.
The Budget introduces some of the most significant investment tax reforms in decades, particularly around property and capital gains.
Property market implications
Limiting negative gearing to new builds could shift investor demand toward off-the-plan and newly constructed properties.
However, because existing investments are grandfathered, many current investors will see no immediate change.
Changes to CGT could also affect investors holding shares and managed funds.
Key considerations include:
Importantly, the changes only apply to gains from July 2027 onwards, giving investors time to plan.
Several other Budget changes may influence financial strategies, including:
These changes could affect tax planning, business structures and retirement planning.
At 360 Financial Strategists, we help Australians navigate the financial landscape with confidence.
Book a consultation with our team today
When did the 2026 Federal Budget occur?
The Australian Federal Budget for 2026–27 was released on 12 May 2026. It outlines government spending, taxation changes and economic priorities for the coming financial year.
Will the Federal Budget affect mortgage rates?
The Federal Budget does not directly set mortgage rates. However, government spending and tax policies can influence inflation and economic growth, which may affect decisions by the Reserve Bank of Australia on interest rates.
Will the 2026 budget affect property prices?
Housing reforms introduced in the budget may influence investor demand and housing supply. Over time, increased housing construction and tax changes could help improve affordability and stabilise property prices.
Do tax cuts start immediately?
Some tax cuts begin in 2026, while additional reductions will be introduced in 2027, gradually increasing take-home pay for many Australian workers.
Budget 2026-27 – BUDGET STRATEGY AND OUTLOOK Budget Paper No. 1
Guardian – Budget capital gains tax changes and negative gearing reform explained
The Australian – New $2bn fund to turbocharge construction
The Australian – Labor’s risky reset: how the budget rewires housing market
If you’ve ever looked at your payslip and wondered whether there’s a smarter way to structure your income, you’ve probably asked:
What is salary packaging?
Salary packaging (also known as salary sacrifice) is a legal arrangement where you agree to receive part of your income in the form of benefits rather than cash salary. The goal? To reduce your taxable income and potentially increase your take-home pay.
In Australia, salary packaging is commonly used in:
But here’s the thing — it’s not automatically beneficial for everyone. The real value depends on your tax bracket, employment type, and long-term financial strategy.
That’s where structured advice from 360 Financial Strategists becomes important — because packaging income without considering superannuation, borrowing capacity or retirement planning can backfire.
Let’s answer it clearly.
Salary packaging is when you “sacrifice” part of your pre-tax salary in exchange for employer-provided benefits.
Instead of being paid fully in cash and taxed on 100% of your income, you:
This can reduce your taxable income and therefore reduce income tax payable.
The Australian Taxation Office (ATO) explains it clearly here:
https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/working-as-an-employee/salary-sacrificing-for-employees
One of the most common and effective uses.
You can salary sacrifice into superannuation, which:
This is particularly powerful for higher income earners.
At 360 Financial Strategists, super contribution strategy is often integrated into:
Salary packaging a car via a novated lease allows:
To be paid from pre-tax income.
However, it’s not always cheaper. The Fringe Benefits Tax (FBT) rules matter, and it’s worth reading up about them before you start discussing salary packaging with your employer.
If you work for certain not-for-profit or public benevolent institutions (PBIs), you may be able to package:
Up to a capped threshold.
This is one of the most financially powerful salary packaging arrangements available in Australia.
In some industries, work-related devices can be salary packaged.
For those approaching retirement, structured salary sacrifice can significantly boost super in the final 10–15 years of work. This is often part of a broader retirement transition strategy designed by 360 Financial Strategists.
Let’s talk practically.
If you’re in the 37% or 45% tax bracket, sacrificing into super at 15% tax can be powerful.
This group often gains the most due to generous FBT exemptions.
Strategic salary sacrifice can:
Can work well if:
At 360 Financial Strategists, we always assess whether salary packaging improves:
Because tax savings alone don’t equal smart strategy.
It’s not always beneficial.
Salary packaging can:
Before implementing salary packaging, we recommend reviewing it as part of your:
All services offer can help you with at 360 Financial Strategists.
Yes — potentially.
Banks often assess your taxable income after salary sacrifice.
If you’re planning to buy property, speak to a Mortgage Broker first.
This is where integrated advice from 360 Financial Strategists makes a difference. Salary packaging decisions should align with your property goals, not work against them.
It depends on:
There’s no universal answer.
That’s why tailored modelling is essential.
Salary packaging should never be viewed in isolation.
At 360 Financial Strategists, we integrate salary packaging into:
Our approach ensures:
Because smart financial decisions should work together — not against each other.
Salary packaging can be incredibly powerful — but only when aligned with your:
Before restructuring your income, speak with 360 Financial Strategists to ensure your salary packaging decision enhances — rather than complicates — your broader financial strategy.
Secure your financial future with 360 Financial Strategists—contact us today for personalised wealth creation and financial planning solutions.
Common uses include:
Yes — in most cases, the terms are used interchangeably in Australia.
Yes, if structured correctly. However, some benefits attract Fringe Benefits Tax.
It can. Certain reportable fringe benefits are included in income tests.
Only if you work for eligible not-for-profit organisations that allow living expense packaging.
Yes. Salary sacrificing into super increases concessional contributions and counts toward annual caps.
Buying property in Victoria is exciting… until you remember stamp duty exists.
For many buyers, stamp duty can add tens of thousands of dollars to the purchase price. So it’s no surprise that one of the most searched phrases in Australia right now is “stamp duty exemption vic” (2.9k searches per month).
If you’re wondering:
Let’s break it down clearly — and strategically — so you can understand your options and how 360 Financial Strategists can help you navigate this properly.
Stamp duty (officially called land transfer duty) is a tax paid when you buy property in Victoria. It’s calculated based on the purchase price or market value of the property — whichever is higher.
The higher the value, the higher the duty.
For example:
That’s serious money — and why understanding stamp duty exemption Vic rules is so important.
For official government guidance, refer to:
Let’s answer the big question directly:
Eligibility depends on your situation. The most common categories include:
Under current Victorian rules, eligible first home buyers may receive:
This applies to both new and established homes, provided you meet residency requirements.
Key Takeaways
Eligible pensioners may receive:
This is often misunderstood — and where advice from 360 Financial Strategists becomes critical, particularly if you’re restructuring assets or transitioning into retirement.
If you purchase off-the-plan (especially apartments), you may qualify for duty reductions based on the construction stage at the time of purchase.
The earlier you buy, the greater the potential concession.
Even if you don’t qualify for a full stamp duty exemption in Victoria, you may still receive reduced duty if the property is your main residence.
Victoria has introduced reforms allowing certain commercial property buyers to opt into a new annual property tax model instead of paying upfront duty.
This doesn’t apply to residential buyers — but it has sparked the popular search question:
“Is Victoria removing stamp duty?”
We’ll answer that shortly.
Yes — retirees generally still pay stamp duty.
There is no automatic exemption simply because you are retired.
However…
Eligible pensioners downsizing may qualify for specific exemptions or concessions, subject to:
This is where holistic planning matters.
At 360 Financial Strategists, we regularly work with retirees assessing:
Stamp duty isn’t just a property tax — it can affect your entire financial structure.
Let’s be honest.
There’s no “loophole hack” that legally eliminates stamp duty outside government policy.
But there are legitimate pathways to reduce or avoid it.
You may avoid or reduce stamp duty by:
This is where 360 Financial Strategists integrates:
Stamp duty strategy is never isolated from the bigger financial picture.
No — not entirely.
Victoria is not removing stamp duty for residential property purchases.
However:
For certain commercial and industrial properties, the government has introduced an option to transition from upfront stamp duty to an annual property tax after an initial transaction.
For residential buyers, current exemption policies remain focused primarily on:
Always check the latest rules via the State Revenue Office, Victoria.
Many buyers search for a stamp duty exemption vic calculator (30 searches per month) to estimate costs.
The official calculator is available via the State Revenue Office website. It allows you to:
But here’s the thing…
A calculator won’t tell you whether buying now vs later changes your financial trajectory.
That’s where 360 Financial Strategists steps in.
We don’t just calculate stamp duty.
We assess:
Stamp duty is a line item. Strategy is everything.
At 360 Financial Strategists, we approach stamp duty planning as part of:
This integrated model is what makes 360 Financial Strategists different.
Stamp duty decisions should align with your 5–10 year financial plan — not just your settlement date.
A couple in their late 50s recently approached 360 Financial Strategists to downsize.
They assumed they’d automatically avoid stamp duty.
They didn’t qualify for the pensioner exemption — but through structured modelling we identified:
The result?
They paid stamp duty — but improved long-term liquidity and retirement positioning.
Avoiding tax isn’t always the goal.
Optimising structure is.
Yes — unless they qualify under the pensioner exemption rules.
Primarily:
Legally, through:
There is no general retirement-based exemption.
Not for residential property.
Reforms apply to certain commercial property transactions only.
Because Google searches don’t know your financial situation.
Whether you’re:
360 Financial Strategists provides:
All under one coordinated strategy.
That matters when stamp duty can represent $30,000–$70,000 of your capital.
Exemptions exist — but they’re specific.
Retirees are not automatically exempt.
Victoria is not abolishing residential stamp duty.
Strategy matters more than shortcuts.
If you’re considering buying property in Victoria and want to understand how stamp duty fits into your bigger financial picture, speak with 360 Financial Strategists before you sign a contract.
A smart property decision should support your long-term financial freedom — not just your settlement date.
Secure your financial future with 360 Financial Strategists—contact us today for personalised mortgage advice and financial planning solutions.
Trauma insurance is often misunderstood, but it’s a vital part of a strong financial safety net. A diagnosis of a serious illness or a major injury can be life-changing, and the financial stress that comes with it can make a difficult time even harder. This comprehensive guide will cut through the jargon to explain exactly what trauma insurance is, who it’s for, and how to find the right policy for your circumstances. We’ll provide transparent, unbiased information to help you make a confident decision for your future.
Trauma insurance is also known as critical illness or recovery insurance. It pays a tax-free lump sum if you are diagnosed with a specific medical condition or suffer a severe injury listed in your policy’s Product Disclosure Statement (PDS).
Q: What exactly is trauma insurance?
A: It’s a lump-sum payment that’s paid directly to you upon a confirmed diagnosis of a covered illness or injury. Unlike other types of insurance, the payout isn’t tied to your ability to work or your recovery from the condition. It’s designed to give you a financial buffer to use however you see fit.
Q: How is it different from other insurance?
A: This is a key point of confusion. Below is a clear comparison:
Trauma Insurance – Lump sum on diagnosis
Medical expenses, paying off debt, home modifications, or time off work.
Income Protection – Regular monthly payments
Replaces a portion of your income if you can’t work due to illness or injury.
TPD Insurance – Lump sum (often via super)
Paid if you are totally and permanently disabled and cannot work again.
Life Insurance – Lump sum on death
Paid to your beneficiaries if you pass away or are diagnosed with a terminal illness.
Q: How does it work?
A: The process is straightforward. First, you receive a diagnosis from a medical professional. If your condition meets the detailed definition in your policy, you lodge a claim. Once approved, the insurer pays the full lump sum directly to you.
Policies vary widely in the number of conditions they cover, so it’s vital to understand the definitions.
The “Big Four”: Cancer, Heart Attack, Stroke, and Coronary Artery Bypass Surgery. These account for the majority of trauma claims.
Other Major Events: Major head trauma, severe burns, loss of limbs, kidney failure, major organ transplants, and paralysis.
Partial Benefits: Many policies offer partial payouts for early-stage conditions, such as certain early cancers, angioplasty, or loss of sight in one eye.
This is where expert guidance is invaluable. Insurers use very specific medical definitions.
For example:
A cancer diagnosis may require histological confirmation and a specific stage.
A heart attack may require proof of irreversible heart muscle damage via blood markers and ECG changes.
Common exclusions include:
Self-inflicted injuries or illnesses
Undisclosed pre-existing conditions
Illnesses or injuries occurring during the qualifying period (often the first 90 days)
Conditions not explicitly listed in the PDS
Mental health conditions (generally excluded from trauma insurance)
Ask yourself:
Could you cover major medical costs?
According to the Australian Institute of Health and Welfare, average health expenditure is $9,597 per person, roughly equivalent to an average monthly income.
Would a serious illness stop you from working?
Do you have significant debts (mortgage, loans, credit cards)?
Do you have dependents who rely on your income?
Do you have at least 12 months of living expenses saved?
Trauma Cover for Children
Child trauma cover can be added to a parent’s policy. It provides a lump sum if a child is diagnosed with a covered condition and can be used for unpaid time off work, medical gaps, or travel and accommodation.
Commonly covered conditions include childhood cancers, severe burns, meningitis, and major head trauma.
Mental Health and Trauma Insurance
In Australia, trauma insurance generally does not cover mental health conditions.
If mental health is a concern, Income Protection insurance is typically the appropriate solution, as it can provide ongoing income if you’re unable to work due to a mental health condition.
Step 1: Contact Your Insurer
Notify your insurer or adviser as soon as you receive a diagnosis.
Step 2: Complete the Claim Form & Gather Documents
You’ll usually need:
Certified photo ID
Certified birth certificate
Medical Attendant’s Statement
Medical reports, test results, and hospital records
Step 3: Assessment
The insurer assesses whether your condition meets the policy definition and may request additional medical confirmation.
Step 4: Payout
If approved, the lump sum is paid directly into your bank account.
In 2024, Sarah, a 35-year-old marketing manager, was diagnosed with aggressive breast cancer. Her trauma policy paid $200,000, allowing her to stop work, cover medical gaps, hire home help, and focus entirely on recovery—without financial stress.
TAL Australia
Claims Accepted Rate (2024): 81.6%
Average Claim Time: 1.5 months
Key Features: Paralysis Support, Child Cover, Inflation Protection
NobleOak
Claims Accepted Rate (2024): 96.0%
Average Claim Time: 1.4 months
Key Features: Stand-alone or combined cover, 33+ conditions
Zurich Australia
Claims Accepted Rate (2024): 86.2%
Average Claim Time: 1.6 months
Key Features: 169-condition coverage, multi-claim functionality
All data sourced from ASIC/APRA public reports.
Trauma insurance isn’t about expecting the worst—it’s about being prepared so you can focus on recovery and life.
Ready to find the right policy? Contact us today to speak with a certified insurance specialist for a tailored, no-obligation quote.
What is your most valuable asset? Is it your home, your car, or the money in your savings account? The answer is none of the above.
Your most valuable asset is your ability to earn an income. Without it, every other financial goal—from paying your bills to saving for a home—is put at risk.
An unexpected illness or injury can stop that income in its tracks, leaving you and your family financially vulnerable. That’s where income protection insurance comes in. It’s a financial safety net designed to replace a portion of your income if you are temporarily unable to work.
This guide will demystify income protection, explain its key features, and provide a simple, actionable framework for choosing the right policy and the most effective strategic financial advice for you.
Income protection insurance pays you a regular, ongoing monthly benefit if you’re unable to work due to illness or injury. It’s designed to help you cover essential living expenses such as your mortgage, rent, bills, and groceries while you recover.
It covers:
Illness and injury that prevent you from working
It does not cover:
Unemployment
Redundancy
Uncomplicated pregnancy and childbirth
If your lifestyle depends on your income, income protection is worth considering—especially if you:
Are self-employed or a small business owner (no paid sick leave)
Have significant debt such as a mortgage or personal loans
Are the primary income earner for your family
Have limited savings and couldn’t afford months without income
The income protection market in Australia changed significantly following regulatory reforms that began in 2020. These reforms aimed to make policies more sustainable for insurers and clearer for consumers.
The most important change was the removal of Agreed Value policies for new customers. Today, new policies are issued on an Indemnity Value basis only. While this caused confusion initially, it has resulted in simpler products with clearer definitions.
The maximum length of time benefits are paid for a single claim. Common options include:
2 years
5 years
Up to age 65
Longer benefit periods mean higher premiums.
The time you must wait after becoming unable to work before payments start. Options range from 14 days up to 2 years.
Longer waiting period → lower premium
Shorter waiting period → higher premium
You should ensure you have enough savings or sick leave to cover this period.
Indemnity Value (current standard):
Benefit is based on your income at the time of claim
Best suited for people with stable income
Agreed Value (no longer available for new policies):
Benefit amount was fixed at policy start
Previously useful for fluctuating incomes
Claims related to substance abuse
Injuries sustained during criminal acts
High-risk activities (e.g. skydiving, professional racing)
Normal pregnancy and childbirth
Rehabilitation or retraining support
Superannuation contribution cover (keeps your super growing while on claim)
Myth #1: “Income protection is too expensive.”
Many policies cost less than a few coffees per week for office-based workers. Premiums are also generally tax-deductible, reducing the real cost.
Myth #2: “Insurers always deny claims.”
Most income protection claims are paid. Denials usually occur due to non-disclosure or not meeting policy definitions—not because insurers avoid paying.
Your job strongly influences:
Premium cost
Claim definitions
Coverage eligibility
Office-based roles generally attract lower premiums, while manual or high-risk jobs cost more. Always describe your role accurately—misrepresentation can lead to claim denial.
Notify your insurer or financial adviser as soon as possible.
You’ll typically need:
Completed claim forms (you, employer, doctor)
Medical reports and test results
Proof of income (payslips or tax returns)
Proof of identity
A claims assessor reviews your case. This may take several weeks and could involve additional medical checks.
You can:
Request a formal review
Lodge a complaint with AFCA
Seek legal advice if necessary
Emma – Freelance Graphic Designer
After severe anxiety and depression, Emma’s income protection provided monthly payments so she could recover without financial pressure.
John – Builder
Following a serious back injury, John received benefits for two years while recovering and undergoing rehabilitation—helping him keep his home.
Sarah – Small Business Owner
After an unexpected illness, Sarah’s policy paid monthly benefits, allowing her to hire a temporary manager and keep her business running.
Protecting your income means protecting your future. Use this guide to compare policies or speak with a financial adviser for personalised advice.
The peace of mind that comes with knowing your income is protected is invaluable.
You’re ready to protect your income—your most valuable asset. But with so many options and your own unique circumstances, how do you know you’re making the right choice?
Many guides list features without giving you a clear, actionable plan, which can leave you feeling overwhelmed and uncertain. In the absence of a qualified insurance specialist, this guide walks you through a simple five-step process to help you choose the right income protection policy, ensuring you get the best value and the peace of mind you deserve.
Before choosing a policy, you need to understand what you’re protecting. This step is about getting a clear picture of your financial situation.
Start by calculating your essential monthly expenses, including:
Rent or mortgage
Groceries
Utilities and bills
Any other non-negotiable costs
This amount represents the minimum income you need to replace if you’re unable to work.
Consider how long your sick leave and emergency savings would last if you couldn’t work. This will directly influence your choice of waiting period later.
Actionable task:
Have your monthly budget and savings figure ready before moving on.
This is where you align your personal needs with the most important policy features. These decisions have the biggest impact on both your coverage and your premiums.
The waiting period is how long you must wait after becoming unable to work before benefits begin.
Longer is cheaper: Waiting periods of 90 days or more significantly reduce premiums.
Shorter is safer: Shorter waiting periods (e.g. 30 days) are better if you have little savings or sick leave.
The benefit period determines how long payments last.
Short-term (2–5 years): More affordable and suitable for injuries with a clear recovery timeline.
Long-term (to age 65): More expensive but essential for long-term or permanent disabilities.
Indemnity Value: The standard for all new policies. Benefits are based on your income at the time of claim—ideal for stable salaries.
Agreed Value: No longer available for new policies. Previously designed for fluctuating incomes with a pre-agreed payout amount.
Actionable task:
Choose a waiting period and benefit period that align with your financial comfort level.
Premiums vary widely and are influenced by personal factors and policy structure.
Age and gender: Premiums generally increase as you get older.
Smoking status and health: Smokers and certain medical conditions attract higher premiums.
Stepped premiums: Start cheaper but increase each year as you age.
Level premiums: Higher initially but rise much more slowly over time.
Inside Superannuation
Pros: Premiums paid from super, often cheaper due to group rates.
Cons: Fewer features, reduced flexibility, erosion of retirement savings, and potentially longer claim times.
Outside Superannuation
Pros: More customisable policies and features; premiums generally tax-deductible.
Cons: Paid from after-tax income, affecting cash flow.
Actionable task:
Compare inside vs outside super to determine what best suits your situation.
Understanding the fine print helps avoid surprises at claim time.
Your job significantly affects premiums and coverage. High-risk occupations often have higher costs or specific exclusions. Always be truthful on your application.
You are legally required to disclose pre-existing conditions. Non-disclosure is a common reason claims are denied.
Genetic testing is a complex area. While there is an industry moratorium on using genetic test results below certain policy limits, professional advice is strongly recommended.
Most policies exclude:
Criminal acts
Self-inflicted injuries
Substance abuse-related claims
The real value of income protection is a successful claim.
Contact first: Notify your insurer or financial adviser immediately.
Prepare documents: Medical reports, proof of income, and claim forms.
Understand timeframes: Claims assessments can take weeks.
If denied: Request a review, lodge a complaint with AFCA, or seek legal advice.
Choosing the right income protection policy doesn’t have to be overwhelming. By following this step-by-step process, you can confidently select cover that’s tailored to your circumstances and protects your most valuable asset.
You’ve done the hard work of understanding your needs. The next step is taking action and putting the right protection in place.
The thought of an unexpected death is never easy. In the midst of emotional distress, the last thing you want is for your loved ones to be left with a financial burden. This is where term life insurance—often called death cover—plays a critical role.
Term life insurance is more than just a financial product. It’s a promise to protect your family’s future and provide clarity and stability during the most difficult times. This guide offers authoritative, unbiased information combined with practical advice to help you understand Australian term life insurance and make informed decisions with confidence.
Term life insurance pays a lump sum to your nominated beneficiaries or estate if you pass away. Most policies also include a terminal illness benefit, which pays out if you’re diagnosed with a life-limiting illness with a limited life expectancy.
The payout can be used for any purpose your loved ones need, including:
Paying off a mortgage
Covering school fees
Managing everyday living expenses
Funding funeral costs
For many people, life insurance is less about policy wording and more about peace of mind. It ensures your family can maintain their lifestyle and focus on healing—without the added stress of financial uncertainty. This reassurance is often the greatest value of a comprehensive policy.
Life insurance is often bundled or confused with other forms of personal insurance:
Total and Permanent Disability (TPD) Insurance
Pays a lump sum if you become permanently disabled and are unlikely to return to work.
Trauma Insurance
Provides a lump sum if you’re diagnosed with a serious illness such as cancer or suffer a major injury.
Income Protection Insurance
Pays a regular monthly benefit if you’re temporarily unable to work due to illness or injury.
Unlike accidental death cover, term life insurance pays out for death caused by illness or disease, not just accidents.
The amount of cover you need depends on whether others rely on you financially. If you have a partner, children, or significant debt, life insurance is an essential part of your financial plan.
If you have no dependents, you may not need life insurance and could instead focus on cover like TPD or trauma insurance.
A practical approach is to compare what your family would need against what they would already have, such as:
Superannuation balances
Savings and investments
Existing insurance cover
Key expenses to consider include:
Mortgage and debts
Living expenses
Education costs
This helps determine the lump sum needed to maintain your family’s standard of living.
When applying, insurers assess factors such as:
Age and occupation
Medical and family history
Lifestyle factors (e.g. smoking)
You are legally required to take reasonable care not to misrepresent information. Incorrect or incomplete disclosure can lead to cancelled cover or denied claims.
Premiums typically increase over time due to:
Age-related risk
Medical inflation
Broader regulatory and economic factors
Even policies once marketed as “level” premiums are not guaranteed to remain fixed. This makes regular policy reviews essential to avoid becoming underinsured.
Life changes—and your policy should too. You may manage costs by:
Reducing the sum insured
Removing unnecessary features
Declining CPI indexation (noting this may reduce real cover value over time)
To make a claim, you’ll generally need:
A completed claim form
Medical documentation or a death certificate
Supporting identification documents
Claims can be lodged directly with the insurer or with the help of a financial adviser.
Although most life insurance claims are paid, declines may occur due to:
Non-disclosure of medical or lifestyle information
Policy exclusions
The claim not meeting policy definitions
Claims can be delayed due to administrative issues, such as repeated document requests or trustee involvement (for policies held in super). Having an adviser advocate on your behalf can significantly reduce stress and delays.
Inside superannuation:
Proceeds are non-estate assets and governed by superannuation law and trustee discretion.
Outside superannuation:
Benefits are paid directly to nominated beneficiaries, usually tax-free, without trustee approval.
Binding nominations: Legally enforceable but usually expire after three years.
Non-binding nominations: Trustee retains discretion, which can cause delays.
Only dependants or your legal personal representative can usually receive super death benefits.
Retail policies allow you to nominate anyone, with faster payouts and fewer restrictions.
Business owners often need additional cover, such as:
Key Person Insurance
Buy–Sell Insurance
These policies help protect the business if an owner or critical employee dies or becomes disabled.
Life insurance can still be useful later in life, particularly for:
Funeral expenses
Outstanding debts
Term life is typically the most accessible option, though entry age limits apply.
DIY: Suitable for simple situations with no dependents or debt.
Professional advice: Essential for complex needs, business ownership, pre-existing conditions, or structuring cover efficiently.
An adviser can help ensure you’re neither underinsured nor paying for unnecessary features.
Life insurance isn’t just about money—it’s about certainty, dignity, and protecting the people who matter most. Taking the time to structure the right cover now can make all the difference when it matters most.
Secure your financial future with 360 Financial Strategists.
Contact us today for personalised insurance advice and strategic financial planning.
Are you an Australian investor receiving dividends from local companies? You could be missing out on significant tax benefits—or even cash refunds—if you don’t fully understand the power of franking credits.
Franking credits are a cornerstone of Australia’s tax system, designed to prevent the double taxation of company profits and boost your after-tax investment returns.
This guide explains what franking credits are, how they work, who benefits most, and how to maximise your entitlements. While it provides comprehensive information, it is not personal financial advice—for tailored strategies, consult a qualified financial advisor.
Franking credits are part of Australia’s dividend imputation system, which ensures company profits are taxed only once:
Company Pays Tax: Australian companies pay corporate income tax (up to 30%) on profits.
Profits Distributed: The remaining profits are paid to shareholders as dividends.
Tax Attributed: The tax already paid by the company is “imputed” to shareholders as a franking credit.
Without franking credits, company profits would be taxed twice: first at the corporate level, then again at the shareholder level. Franking credits ensure that the tax paid by the company is recognised, preventing shareholders from paying tax twice on the same income.
Introduced in 1987 by the Hawke/Keating Labor government.
Became fully refundable in 2000, allowing excess franking credits to be refunded in cash, significantly benefiting low-income earners and retirees.
Companies maintain a franking account to track tax paid.
Dividends can be fully franked, partially franked, or unfranked.
A 100% franked dividend means the full corporate tax rate has been paid on the underlying profits.
You receive two components:
Cash dividend – the actual payment.
Franking credit – the imputed tax paid by the company.
Both are declared as assessable income (“grossing up”) and the franking credit offsets your personal income tax.
Fully Franked: Full corporate tax paid; shareholders get full franking credit.
Partially Franked: Partial tax paid; shareholders get proportional credit.
Unfranked: No tax paid; shareholders pay full personal tax.
Company tax rate: 30%
Cash dividend: $70
Franking credit: $30
Total assessable income: $100
0% marginal tax: Receive $30 refund
19% marginal tax: $19 covers tax, $11 refunded
30% marginal tax: No extra tax, no refund
45% marginal tax: $30 offsets, pay remaining $15
Franking credits reduce overall tax and may provide cash refunds, making franked dividends attractive.
Marginal tax below 30%? Receive cash refunds for excess franking credits.
Retirees relying on dividends can significantly boost disposable income.
Pension phase SMSFs have 0% tax on earnings, making franking credits fully refundable.
Provides a powerful boost to retirement income.
Higher-income investors still benefit by reducing tax payable on dividends.
Increases after-tax returns compared to unfranked dividends.
Must be an Australian resident for tax purposes. Non-residents cannot claim franking credits.
Must hold shares “at risk” for at least 45 days (or 90 for certain preference shares).
Ensures credits aren’t claimed by short-term buyers.
Prevents passing the benefit of franking credits to someone else.
Professional advice recommended if this rule applies.
If annual franking credits are under $5,000, the 45-day rule generally does not apply.
Apply anytime after July 1 for the previous financial year.
Methods:
myTax (online via myGov) – preferred method; often pre-fills dividend info.
Phone application – using NAT 4105 form.
Postal form – complete and mail NAT 4105.
Eligible individuals aged 60+ may receive refunds automatically if criteria are met, including:
Age ≥ 60
Dividend income ≤ $18,200
Shares held ≥ 2 years
Franking credits ≤ $5,460
No additional tax liabilities
Keep dividend statements for cash dividend and franking credit amounts.
Prior years’ credits can still be claimed.
TFN withholding may require full tax return.
Joint investments require separate declarations.
Formula (Fully Franked Dividend):
Franking Credit=Dividend Amount×Company Tax Rate1−Company Tax Rate\text{Franking Credit} = \text{Dividend Amount} \times \frac{\text{Company Tax Rate}}{1 – \text{Company Tax Rate}}
Example:
Dividend: $70
Company tax: 30%
Franking Credit: $70 × 0.42857 ≈ $30
Total assessable income: $100
Partially franked dividends are adjusted by the franking percentage.
Franking credits attach directly to dividends paid by Australian companies.
Distributing Funds: Dividend income, including franking credits, distributed to investors.
Accumulating Funds: Credits contribute indirectly to fund growth.
Beneficiaries or partners may claim a share of franking credits from distributions, subject to integrity rules.
Fairness: Prevents double taxation.
Domestic investment: Encourages investment in Australian companies.
Government revenue cost: Refunds can be significant.
Disproportionate benefit: Often benefits wealthy retirees.
System complexity: Adds layers to taxation.
Australia’s system is unique; most countries tax dividends twice without credits.
Strategic Portfolio Review:
Seek fully franked dividends
Diversify portfolio to manage risk
Tax Planning:
Know your marginal tax rate
Consider SMSF pension phase for tax-free benefits
Professional Advice:
Consult a qualified financial advisor or tax agent
Ensure eligibility rules like the 45-day holding period are met
Franking credits can significantly enhance after-tax returns. Understanding eligibility, claiming processes, and strategic investment decisions empowers you to maximise these benefits.
Book a free consultation with a Financial Advisor in Melbourne to optimise your strategy.
This article is for general information only and does not constitute financial or tax advice. Individual circumstances may vary. Always consult a qualified financial advisor or tax professional before making financial decisions.
The future of your business is not a matter of chance, but a matter of choice and careful preparation. Every business, regardless of size or industry, will eventually face a transition in leadership, ownership, or critical roles. This underscores the profound importance of succession planning.
At its core, succession planning is a strategic, proactive process for identifying and developing internal people to fill key positions in the event of a vacancy. It goes far beyond replacing a CEO; it ensures continuity of leadership, seamless transfer of talent and knowledge, and strategic ownership transition. Unlike reactive measures, it is forward-looking and deliberate.
In today’s dynamic business environment, succession planning is a necessity:
Mitigating Risks: Unexpected departures, retirements, illnesses, or death can cripple an unprepared organization. A solid succession plan minimizes disruption.
Ensuring Continuity and Stability: Operations, client relationships, and strategic initiatives continue uninterrupted during key personnel changes.
Preserving Knowledge and Culture: Critical insights, processes, and culture embodied by long-serving leaders are captured and transferred.
Maximizing Business Value: A clear succession plan demonstrates stability and a strong talent pipeline, increasing perceived business value.
Attracting and Retaining Talent: Employees commit more when career paths and development opportunities are clear; visible succession strategies support retention and recruitment.
This guide provides a roadmap for building a resilient succession plan, exploring its facets, a step-by-step blueprint, common challenges, and the tools needed for a business to thrive across generations. For a tailored plan, consult a professional financial advisor.
Succession planning encompasses several interconnected areas:
Identifying Key Roles: Focus on positions whose vacancy would impact operations, strategy, or client relationships.
Developing a Leadership Pipeline: Continuous identification and development of high-potential employees for future leadership roles.
Internal Transfers:
Family: Passing the business to the next generation.
Employees/MBOs: Selling to existing management or employees.
ESOPs: Employees own company shares via a tax-advantaged plan.
External Sales: Selling to a third-party buyer, preparing the business to attract investors.
Preparing for Unforeseen Events: Sudden death, disability, or resignation.
Short-term vs Long-term Plans: Interim appointments for emergencies; long-term strategy for permanent replacements.
Identifying Critical Skills: Pinpoint unique capabilities and institutional knowledge essential for success.
Knowledge Transfer & Mentorship: Implement shadowing, cross-training, documentation, and mentorship programs.
Reluctance to Let Go: Gradual transitions, advisory roles, and professional coaching ease this challenge.
Identifying the Right Successor: Use objective data, formal assessments, and focus on competencies and cultural fit.
Knowledge Transfer Gaps: Shadowing, documentation, and exit interviews ensure critical insights are retained.
Family Dynamics: Governance structures, clear rules, and sometimes mediation are essential.
Funding the Transition: Explore seller financing, loans, private equity, insurance, or SERPs.
Lack of Time/Resources: Break processes into manageable steps, delegate, or hire external consultants.
Business Consultants: Objective perspective on strategy, structure, and talent.
Financial Planners & Wealth Managers: Align personal and business transition goals.
Attorneys: Draft buy-sell agreements, wills, trusts, and ensure compliance.
HR Consultants/Talent Specialists: Support assessments, development, and knowledge transfer.
HRIS with Talent Management: Track skills, performance, and readiness.
Project Management Tools: Organize tasks, timelines, and track progress.
Succession planning checklists
Talent assessment templates
Individual Development Plans (IDPs)
Communication plan frameworks
Scenario: Retiring owner sells to long-term operations manager.
Approach: Financial advisor assisted with valuation, seller-financed buyout, and phased transition with mentoring.
Outcome: Smooth transition, preserved culture, rewarding exit.
Scenario: Two siblings vying for CEO role.
Approach: Independent assessment and co-CEO transitional model.
Outcome: Minimized conflict, leveraged strengths, ensured growth.
Scenario: CTO resigns unexpectedly.
Approach: Emergency succession plan activated; interim CTO and accelerated internal development.
Outcome: Minimal disruption, maintained investor confidence, rapid recovery.
Succession planning is an investment in your business legacy. It mitigates risks, ensures smooth transitions, and safeguards the organization you’ve built.
Embrace a comprehensive approach across leadership, ownership, emergency preparedness, and talent development to navigate transitions confidently.
Start your succession planning journey today. Book a free, no-obligation strategy session with a qualified retirement financial advisor.
What is the primary goal of succession planning?
Ensure smooth operation by developing individuals ready for key roles, minimizing disruption, and preserving knowledge.
How does it differ from traditional replacement planning?
Replacement planning is reactive; succession planning is proactive, strategic, and long-term.
What are the risks of not having a plan?
Disruption, knowledge loss, decreased morale, reduced business value, and costly emergency replacements.
How early should planning start?
Ideally 3–5 years before leadership transitions; emergency plans should be in place from business inception.
Who should be involved?
Owners/executives, HR, potential successors, and external advisors; family members in family businesses.
What role do IDPs play?
They provide structured development for future roles via mentorship, training, and cross-functional experiences.
How to ensure knowledge transfer is effective?
Structured mentorship, shadowing, cross-training, documentation, and fostering a learning culture.
What are SERPs and their role?
Non-qualified retirement plans to retain and reward key executives during transitions.
How to communicate succession plans to non-successors?
Emphasize organizational stability and development opportunities; maintain confidentiality as needed.
What if a chosen successor leaves early?
Activate emergency plans, reassess talent pools, and remain flexible with internal/external candidates.
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