At the beginning of the month, our Avondale team held an EOFY lunch to celebrate the successes of the previous financial year. We have included some of our key reflections and updates in light of our celebration.
We would also like to bring to you the most recent economic and market movements from July.
In addition, we have included an article regarding the changes to superannuation earlier this month and the impacts of recent policy changes on your investment strategy.
Lastly, we have included our most recent updates across our social media channels.
We hope you find this edition of the monthly newsletter insightful and refreshing as we step out of July and into another month.
EOFY Celebration Lunch
This month, our Avondale Wealth and Finance team came together over a shared lunch to celebrate the past financial year and reflect on the moments that made it meaningful.
A standout highlight was the strong engagement at our client events, from the Centrelink & Retirement Seminar to our Budget Briefing Lunch. Connecting with your questions and helping bring clarity to complex financial topics remains one of the most rewarding parts of what we do.
We also enjoyed looking back on Avondale Group’s first exhibition at the Retirement, Leisure and Health Expo, where our adviser Chris was invited to speak, and we had the opportunity to engage with many seeking advice for the future.
We were also proud to look back on our team’s achievements at the Elevate Conference earlier this financial year, with nominations for Practice of the Year and Rising Star of the Year, and awards for Fortnum Adviser of the Year and PFS Adviser of the Year.
July Market and Economic Movements
July has observed a range of economic and market movements, namely surrounding changing tariffs, developments in the US-Iran conflict, and lingering underlying inflation.
US Tariffs Increase
One of the more notable changes recently has been the adjustment to US tariffs on certain Australian exports. The rate has increased from 10% to 12.5% under the claim that the US is attempting to combat forced labour within international supply chains. This has prompted questions and debate given Australia’s stringent modern slavery regulations. Trade Minister Don Farrell has committed to the ongoing lobbying of the removal of tariffs on all Australian goods.
For now, Australia’s largest exports to the US, namely beef, gold, and copper continue to enter tariff-free under existing agreements. At the moment, smaller export categories may face higher costs, but the broader economic effect is expected to be contained.
US-Iran Conflict Updates
Geopolitics have also played a central role in shaping market sentiment. The conflict between the US and Iran, which escalated sharply earlier this year, has entered a temporary lull. As of today, Iran has passed another consecutive night without new US air strikes and has stated that it will only retaliate if attacked.
While the situation remains delicate, the pause has eased pressure on oil markets and reduced short‑term volatility. Oil prices have observed a fall from a two-month high set last week. There is cautious optimism that future peace talks may emerge, though markets will continue to respond quickly to any change in tone or activity. For now, the calmer backdrop is helping stabilise energy prices and shipping routes, both of which feed directly into global inflation.
Movements in Inflation
The latest data released in mid‑July showed consumer inflation expectations easing from 5.5% in June to 4.7%, aided by lower goods prices and improved supply chains. This decline was a reflection of moderating headline inflation however underlying inflation remains persistent. The RBA is monitoring underlying inflation closely and while the cash rate remains at 4.35%, the bank is not ruling out future increases if underlying inflation doesn’t moderate.
These economic events have shifted rapidly over the last month, however our team at Avondale are committed to monitoring these developments closely. If you have any concerns regarding your financial future, please don’t hesitate to get in touch.
The afternoon was a chance for us to pause, appreciate the past financial year’s successes, and look ahead with a shared commitment to continue supporting you throughout the new financial year.
Superannuation: more relevant than ever
A changing tax environment
A range of superannuation changes that came into effect on 1 July 2026, are reinforcing the role of super as one of the most tax-effective investment structures available.
Tighter rules around the use of discretionary trusts and closer scrutiny of income distributions have changed some traditional tax planning flexibility. In contrast, superannuation continues to provide favourable tax treatment, reflecting its ongoing importance in long-term financial planning.
We hope that the following superannuation update provides you some clarity and reassurance regarding the changes within this financial environment.
Payday Super – boost your retirement savings
One change is the introduction of Payday Super, which requires employers to pay super contributions at the same time as wages rather than quarterly. This shift can have a significant impact on your super balance. More frequent contributions mean compounding begins earlier which could result in improved retirement outcomes over time.
Higher contribution caps create more opportunities
From 1 July 2026, the concessional superannuation contribution cap (including employer contributions and salary sacrifice) increased to $32,500 from $30,000 in the 2025-2026 financial year.
Non-concessional caps have also increased, from $120,000 in 2025-2026 to $130,000 in the 2026-2027 financial year, enabling larger after-tax contributions. This is particularly helpful for those who have accumulated savings outside super and wish to transfer funds into a more tax-advantaged environment. Please speak to our team at Avondale Wealth if you require assistance in doing so.
Division 296 tax
Another change which came into effect on 1 July 2026 was Division 296 tax. This measure applies an additional tax on earnings associated with super balances above $3 million.
The initial proposal intended to tax unrealised capital gains, however the revised legislated version does not.
Transfer Balance Cap increase to $2.1 million
The increase in the Transfer Balance Cap to $2.1 million is another positive development, particularly for those approaching or entering retirement.
This cap determines how much can be transferred into the tax-free retirement phase. An increase allows more capital to benefit from a zero per cent tax rate on earnings, enhancing after-tax income in retirement.
Bringing it all together
Despite the ongoing changes, superannuation continues to offer a compelling tax environment, particularly when compared with other investment strategies that are facing increased complexity and scrutiny.
If you have any questions or concerns about these superannuation changes, please don’t hesitate to reach out to our Avondale team.
Perspective, not policy, drives long-term investment success
Following the Federal Budget’s proposals around negative gearing and Capital Gains Tax, public debate has intensified. Headlines often amplify uncertainty, but markets typically absorb new information quickly, and much of what is discussed publicly has already been factored into pricing.
At the same time, global developments, from shifting trade conditions to geopolitical tensions, continue to influence sentiment. When several narratives converge, it can create the impression that conditions are unstable. In reality, markets have navigated similar periods many times before. During events such as the COVID‑19 downturn or the Global Financial Crisis, markets initially reacted sharply but recovered well ahead of broader economic indicators. These episodes highlight how quickly conditions can shift and how challenging it can be to interpret short‑term movements without a structured framework.
Periods of heightened attention can also bring increased focus to particular investment sectors or themes. Investing in accordance with budget incentives, emerging technologies or widely discussed companies may appear attractive, but once an idea becomes mainstream, markets have often priced in much of the opportunity. Concentrating too heavily on narrow opportunities can reduce diversification and increase exposure to specific risks.
Staying Focused
A disciplined financial strategy adopts a broader view. It recognises that markets move through cycles, policy settings evolve and leadership rotates across sectors. Diversification is designed to manage these shifts, and regular reviews with our team can help ensure your strategy remains aligned with your goals without relying on abrupt changes driven by short‑term sentiment.
It is also worth noting that Budget measures typically unfold gradually. Markets are forward‑looking and incorporate expectations well in advance, which limits the impact of any single announcement.
In times of increased commentary, professional advice provides clarity and reassurance. Our role is to interpret policy changes, assess market developments and help you understand what is genuinely relevant to your long‑term plan. This support offers peace of mind and ensures your strategy remains anchored to disciplined, long‑term objectives rather than short‑term noise.
If you would like to discuss how current events relate to your financial plan, our Avondale Team are here to help you stay informed and confident about the road ahead.
July Social Media Recap
Since our last newsletter, Matt has been sharing timely updates and insights surrounding retirement strategies to keep our Avondale community informed across our social media channels.
We’ve included a selection of his recent videos below for you to explore.
EOFY Checklist
Key July Updates
Common Retirement Myths
If you or a loved one still have questions surrounding your financial future, please don’t hesitate to reach out to our adviser, Chris, using the details below.
🔗 http://calendly.com/chris_mcrae
📞 (02) 7804 2833
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