Leapfrog LIFE - Dominique Bergel-Grant

I wanted to share what I have written to my financial planning clients about the Federal Budget. Hopefully this helps provide some perspective…

After spending the past few days reviewing the Federal Budget and its implications for clients, the key takeaway is simple: there is little to no immediate impact for most people. While some longer‑term tax proposals warrant careful monitoring—particularly around capital gains—the budget largely falls short of the significant reform suggested in the media commentary. Given the amount of political noise and misinformation following Tuesday’s announcements, I wanted to share a clear, practical summary of what actually matters.

The key message: there is no need to panic and it best to take a pause.

✅ It is not a time to panic.

✅ Superannuation for once was left unchanged.

✅ If you already hold an investment property, then it is business as usual. With the possibility of greater capital gains tax payable on the period you own the property after 1 July 2027. The bottom line, however, is if the property is a good asset this should not change your decision about holding the property.

😢 The budget talked a lot about intergenerational “fairness” and “equality”. The reality is the greatest impact in my view of this budget will be on the younger generations. They will not have the same opportunities as those in the 40's, 50's, 60's and beyond to build wealth through smart tax strategies. Why is this?

1️⃣ The raw reality is that banks will always lend more against residential property than any other asset. Without negative gearing opportunities, the ability to leverage and build when investing in existing residential property will be taken away.

2️⃣ Most clients in their 20's and 30's often buy an investment property before they buy a home to live in. Making this harder delays when they can get on the property ladder.

3️⃣ Forcing younger investors to buy brand new properties takes away the opportunity to add value through renovations, and arguably, they are left paying developers premiums.

😬 For my clients already in retirement, for most, the only significant change, in the short to medium term, is the removal of the additional seniors' private health insurance rebate set to end 1st April 2027.

👀 For clients approaching retirement, there may be some small shifts required. However, possibly the best strategy is to see how long these changes last, with the Opposition already promising to reverse the changes to capital gains tax and negative gearing.

🤯 Overall, this budget has been frustrating to observe. It reintroduces a capital gains tax approach that was previously abolished due to its administrative complexity, and it overlooks the fact that investors do not build wealth for tax reasons alone.

Despite the fanfare, the actual tax impact is modest over the long term. Of greater concern is the lack of meaningful measures to curb government spending and address inflationary pressures. As ever, we will need to watch and see what happens over the coming months.

- Dominique Bergel-Grant
Financial Planner and Specialist Divorce Adviser

🌟🌟Is it time to financially detox?🌟🌟

So a new year has started, you have been no doubt tried to put your best foot forward and set ambitious goals, but it never takes too long for old habits to creep back in. Particularly when it comes to money matters. Overhauling your spending habits is harder to do today than ever before thanks to new technologies like pay pass, pay wave and tap and go; they make it easier than ever to spend without consequences. At least until you see your bank balance.

Being jolted into reality by a scary credit card debt or a meagre bank balance can be like going out for a night on the town and waking up the next morning with a throbbing headache. It seemed like a good idea at the time, but in the harsh light of day, it’s not so clear. If you’ve been in this situation and want to take control of your financial health, it might be time for a financial detox.

This is my step by step guide to a financial detox

Step 1: Pay your overheads first
Sit down and review what your monthly expenses are that come out of your accounts via direct payment such as your mortgage, rent, phone bill and private health insurance.

Step 2: Pay your future self next
We all have financial goals, such as saving for a home, paying off that credit card or building an investment portfolio. Decide how much you want to put towards your financial future each month and put this money aside upfront.

Step 3: Pay yourself
This is the difficult part. Leave the credit card and debit card at home and take out a month’s worth of living expenses to cover your groceries, entertainment, and other bills in cash. That’s right, cash! For the next month, cash is your king and you have to make it last the whole month. If you can’t trust yourself from picking back up your cards, hand over your cards to a trusted friend or family member and set an agreed date when you can get them back.

Step 4: Keep on track
At the end of each day write down what you spent the money on and rate it as either a ‘want’ or a ‘need’ item and keep a running tally of how much money you have left.

Step 5: View your results
At the end of the month assess your spending habits between ‘wants’ and ‘needs’ and assess if you are happy with your results. If more than 30% of your spending is on ‘want’ items then you need to assess if you living a lifestyle today that you cannot maintain. You may be putting your financial future at risk. Also compare your spending to your normal pre-detox expenses. The results should speak for themselves.

Spending with cash always leaves you feeling more accountable; it is far harder, emotionally, to hand over $50 notes compared to tapping a credit card. If you find this strategy works for you, continue to the detox. The next month however you can break down step 3 to fortnightly cash withdrawals and the month after to weekly.

We start with a full month first, to ensure a full financial detox and the value of money is reinstated.

Even though I am a financial adviser, I still give myself a weekly cash allowance to cover my living expenses and I encourage all my clients to do the same. Cash keeps you more accountable and if, at the end of the week, you find yourself with money in your wallet, you can take out a little less the next week, helping you put more aside into savings for your future self.

Do you know where all of your lost superannuation is? Here is the link to ensure you have tracked down every last cent; after all, it all counts and will make a difference to your retirement.

https://www.ato.gov.au/forms/searching-for-lost-super/

Searching for lost super Search for lost super online using myGov, phoning our lost super search line or by completing a paper form (NAT 2476).

No matter where you are on your LIFE journey I am here to help as your financial thinking partner. With a focus on guiding you through each turn with an eye on securing your financial future.

As we celebrate International Women’s Day I was proud to be on the panel for Morningstar’s International Women’s Day client event alongside Vanguard's Rachel White, CFA and Morningstar's Shani Jayamanne (chair).

An insightful discussion on overcoming perennial barriers for women including the 19% gender pay gap, the shortfall and career breaks to look after children and ageing parents was shared as well as practical solutions to .

What the event now… 🙏

video.morningstar.com

Today on the panel for the Morningstar International Women's Day Celebration 🎉 I shared ways we can close the gender gap and reduce the impact of divorce on the long term financial security of women and turn the tide on the growning number of single women over 50 being homeless 🏡

Thank you for those in attendance in the room and online who provided such amazing feedback 🙏😀