Insights Archives - Vantage Wealth Management Perth

Family Trust Tax: The May Rule Changes, just changed again – What the New Election Option Means

Posted on 1 September 2026 by Sylvia Veale

Where This Started

Back in May, Treasurer Jim Chalmers announced a 30% minimum tax on discretionary trust distributions, to commence 1 July 2028 with no grandfathering. The stated goal was to align trust income with the tax rates paid by ordinary workers targeting the practice of streaming trust profits to family members on lower marginal rates, or to “bucket companies,” each year depending on who benefited most.

A three-year CGT-free rollover window (1 July 2027 to 30 June 2030) was offered for families wanting to restructure out of a discretionary trust altogether. That relief, though, did not address state stamp duty, and under the original design, a bucket company receiving a trust distribution did not receive a credit for tax already paid at trust level creating a genuine double-taxation trap.

What Changed Overnight

Following sustained pushback from small business groups particularly the Council of Small Business Organisations Australia (COSBOA), the Mortgage & Finance Association of Australia, and the Commercial & Asset Finance Brokers Association Treasury released exposure draft legislation on 3 September 2026 that materially softens the original proposal. Consultation on this draft, closes 18 September 2026.

The core addition is a new election option. From 2028–29, trustees will face a genuine choice:

Option A – Stay In The Minimum Tax Regime (The Original Design)

The trust pays 30% tax at trustee level. Individual beneficiaries get a non-refundable 30% tax credit against their distribution. Bucket companies get no such credit, so income directed through a company can face an effective rate in the order of 63–70% before it reaches a shareholder as a dividend.

Option B – Elect Fixed Distributions (The New Alternative)

The trustee makes a one-off, largely irrevocable nomination of beneficiaries and their fixed share of income (and capital). In exchange, the trust bypasses the 30% trustee-level tax altogether. Individuals are taxed at their own marginal rates as usual, and a nominated bucket company is taxed once, at the standard 25–30% corporate rate provided that company has no discretionary share structure (share classes).

The trade-off: electing Option B means genuinely giving up the year-to-year flexibility that makes a discretionary trust discretionary. It appears that once the nomination is made, the election can only be revoked as a result of death or divorce. If distributions are varied outside the nominated fixed split, or anunauthorised beneficiary is paid, the election is automatically revoked. The trust is taxed at the top marginal rate plus Medicare levy (47%) for that year, and is permanently locked into Option A afterwards.

Other design points carried over from the original proposal:

Fixed trusts, widely held managed investment trusts, bare trusts, complying super funds (including SMSFs), and special disability trusts remain outside the regime entirely.
Primary production income and income for vulnerable minors remain exempt from the minimum tax.
Genuine testamentary trusts funded before budget night (12 May 2026) remain exempt.
Any discretionary trust established after 1 July 2028 will never be eligible to make the election.

What’s Still Unresolved

Industry reaction has been cautiously positive but not uncritical. COSBOA has welcomed the election as a genuine improvement while maintaining that the broader policy design remains flawed, and has specifically flagged the permanent lock-out penalty as excessive: “This is unnecessarily punitive and does not reflect the realities of family businesses.”

There are also open questions the draft doesn’t yet answer clearly most notably what happens to a beneficiary born or added to a family after an election is locked in, since the nomination list generally can’t be expanded except on death or a relationship breakdown.

Adapting The Restructuring Conversation

For clients currently modelling their options, this changes the shape of the conversation materially:

The election is now the default question to ask first, ahead of any full restructure. For businesses and families confident they can commit to a fixed distribution pattern indefinitely, Option B avoids both the 30% trustee tax and the stamp duty exposure that would come with restructuring into a company or fixed trust.
Bucket company strategies remain viable, but only in “clean” form. Any bucket company relied on for the election must have a single class of shares existing structures using dividend streaming or differing share classes to vary payouts between family shareholders would need to be simplified before they could be nominated.
The permanence of the election is the real decision point, not just the tax rate. Families with growing or changing beneficiary groups (new grandchildren, evolving business partners) need to weigh the tax saving against locking in today’s family structure indefinitely.
Restructuring into a company or fixed trust remains the fallback for families who value ongoing flexibility over the fixed-distribution tax saving, using the existing 2027–2030 CGT rollover window accepting that stamp duty relief from the states is still not confirmed.

Bottom Line For Clients

This remains draft legislation, not law and consultation closes 18 September 2026 and further tranches (including rules on unpaid present entitlements) are still to come. The formal election, once legislated, won’t need to be made until between 1 July 2028 and 30 June 2029. There’s no need to commit to anything now, but every family currently sitting in a discretionary trust should understand that a genuine third option beyond “pay the tax” or “restructure” is now on the table, and start thinking about whether their trust could realistically operate under a fixed distribution pattern.

*This article contains purely factual information and/or general advice and does not constitute personal financial product advice. The content of this article does not take into account your personal objectives, financial situation or needs and you must determine whether it is appropriate to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision.

About the Author:

Matthew McCarney – Executive Director & Private Client Adviser – Vantage Wealth Management

Matthew is an Executive Director of both Vantage Wealth Management Pty Ltd and VWM Financial Services Pty Ltd.

Matt holds a Bachelor of Commerce from the University of Wollongong with majors in Industrial Relations and Management Studies. Matt has also attained a Graduate Diploma in Financial Planning from the Financial Services Institute of Australasia (FINSIA). Matt is a Fellow of FINSIA and also a member of the Financial Advice Association Australia (FAAA). Matt commenced working in the financial services industry in 1996. He has worked for two of Australia’s leading fund managers, BT Funds Management and Colonial First State. Since 2003 Matt has specialised in providing quality strategic and investment advice to his clients.

Matt is passionate about making a meaningful difference in each of his client’s financial lives. Matt co-founded Vantage Wealth Management in 2008. He has served on the Board of The Dyslexia SPELD Found WA (Inc.) since 2013.

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Could You Now Be Eligible for a Part Age Pension? New Thresholds Are Worth a Second Look

Posted on 8 July 2026 by Sylvia Veale

If you’re retired or approaching retirement with a meaningful portfolio of shares, managed funds, term deposits or other private investments, changes to two key age pension thresholds from 1 July 2026 may be worth your attention, particularly if you were told in the past that your assets or income put you just outside the pension system altogether.

What’s Changed

The assets test thresholds have increased from 1 July 2026, including both the upper cut-off limits and the asset-free areas that determine when the age pension starts to reduce.

The upper limits, the point at which pension entitlement cuts out completely, have increased as follows:

Assets Test Cut-off: Non-homeowners

Single: $1,000,500 (up from $980,000)
Couple (combined): $1,369,500 (up from $1,343,000)

Assets Test Cut-off: Homeowners

Single: $733,500 (up from $722,000)
Couple (combined): $1,102,500 (up from $1,085,000)

The asset test for homeowners excludes the value of primary place of residence.

Income and Deeming Changes

Centrelink’s deeming rules assume your financial investments earn a certain rate of income, regardless of what they actually return. From 1 July 2026, the threshold at which the higher deeming rate of 3.25 per cent applies has increased to $66,800 for singles (up from $64,200) and $110,600 for couples (up from $106,200). The fortnightly income-free area has also risen, to $226 for singles (up from $218) and $396 for couples (up from $380).

Income Test Cut-off (Per Fortnight)

Single: $2,627.80 (up from $2,619.80)
Couple (combined): $4,016.80 (up from $4,000.80)

Why This Could Matter To You

If you’ve built a significant portfolio of assessable private investments, direct shares, managed accounts, term deposits and similar holdings, there’s a good chance you’ve previously been assessed as ineligible for any age pension because your assets or deemed income sat just above the cut-off. With these thresholds now higher, that may no longer be the case.

“We’re seeing clients with substantial investment portfolios who assumed the age pension was simply off the table for them,” said Robert Tawil, Adviser at Vantage Wealth Management. “With these thresholds moving up, some of those same clients may now be entitled to a small part pension. The dollar amount might be modest, but it comes with a Pensioner Concession Card rather than the Commonwealth Seniors Health Card, and that card can translate into real, ongoing savings on healthcare and everyday costs. If your circumstances haven’t changed dramatically since you were last assessed, it’s worth checking again.”

What We Would Suggest

If your assets or income were previously close to these limits, now is a sensible time to revisit your position. Even a small part pension entitlement can bring valuable flexibility and concession benefits alongside it.

We’d welcome the opportunity to review your situation against the new thresholds and let you know whether they open up any entitlement for you. Please get in touch with your Vantage Wealth Management adviser to arrange a time.

About the Author:

Robert Tawil – Private Client Adviser – Vantage Wealth Management

Robert holds a Bachelor of Economics (Economics, Quantitative Economics, Money and Banking, and Finance) from the University of Western Australia and a Diploma of Financial Planning. This allowed him to qualify as a Certified Financial Planner®. He commenced working in the financial services industry in 2015 and is a member of the Financial Advice Association Australia.

Robert values building strong relationships that are founded on trust and is passionate about helping people take control of their financial affairs and achieve their goals.

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EOFY Is Days Away – Have You Reviewed Your Superannuation Contributions for the Year

Posted on 24 June 2026 by Sylvia Veale

Make the most of super before 30 June with smart contribution strategies that can reduce tax, grow retirement savings, and protect your family in a tax-effective way.

Concessional Contributions

Personal contributions where you lodge a Notice of Intent to claim a tax deduction can reduce your taxable income and may even shift your marginal rate. It is also worth checking whether your employer and personal concessional contributions are on track to make the most of the 2025/26 concessional contributions cap of $30,000.

Non-concessional Contributions

After-tax money into super that grows in a low-tax environment. If eligible, you may be able to contribute up to $120,000 this financial year or bring forward up to three years of contributions for a total of $360,000.

Spouse Contributions

If your spouse earns a low income or is not working, making an eligible after-tax contribution to their super may help build their retirement savings and may entitle you to a tax offset of up to $540, subject to eligibility criteria.

Children’s Super

Money to your kids so they can build their balance early and positioning them for the First Home Super Saver Scheme when the time comes.

Life Insurance Inside Super

Contributions can effectively fund premiums in a tax-effective structure, protecting your family at a lower after-tax cost and maintain fund balances.

These aren’t set-and-forget decisions – small actions before 30 June can have meaningful, lasting impact.

About the Author:

Ben Devenish – Managing Director – Vantage Wealth Management

Ben, commenced work in the financial services industry in 1993 and has held Executive Director, Private Client Adviser, and Responsible Manager (RM) positions since that time. Key responsibilities as Managing Director at Vantage are to manage operational functions to achieve group strategic objectives, stakeholders are engaged to ensure aligned objectives are achieved, and most critically a team-oriented culture is fostered.

He has also been a Private Client Adviser, Responsible Manager, Head of advice WA and held national advice board positions at Shadforth Financial Group over the period from 2005 till 2017. His qualifications include Australian Institute of Company Directors (AICD), Certified Financial Planner ™, London Business School 2018 (Exec MBA unit, Developing Strategy for Value Creation), Bachelor of Economics (BEcons UWA), Graduate Diploma in Applied Finance and Investment (FINSIA), Diploma in Financial Planning (DFP), Self-Managed Superannuation Fund (SMSF) Specialist Adviser and Registered Tax (Financial Adviser) status under the Tax Agent Services Act 2009.

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Worried About Your Children Ever Being Able to Buy a Home? There are ways to help that can save tax and give you peace of mind.

Posted on 18 May 2026 by Sylvia Veale

With the residential property market having leapt hundreds of thousands of dollars over recent years, a common concern for clients is how their kids will ever be able to get enough savings together to make a start.

Many parents want to help but they are often not sure of the best way to do it.

For some, that means gifting cash. For others, it might mean acting as guarantor on a loan or letting their child live at home for longer to save. There is another strategy often overlooked – the First Home Super Saver Scheme (FHSSS).

Why Some Parents Are Using This Strategy

A common concern we hear from parents is:

“We want to help our child, but we also want to know the money is being used for a house deposit.”

That is where the FHSSS can be useful.

Rather than gifting $50,000 directly into your child’s bank account, parents may choose to help fund contributions into their child’s super over time.

Those funds generally cannot be accessed until retirement, death, significant disablement…. OR putting down a first home deposit.

That creates a level of accountability many parents appreciate.

What is the FHSSS?

The FHSSS allows eligible first home buyers (or in this case, parents on their behalf) to make voluntary contributions into super and later withdraw those funds to purchase their first home.

Key limits include:

Up to $15,000 per financial year
Up to $50,000 in total
Plus associated earnings

This can work well for parents who want to help fund their child’s deposit while ensuring the money is largely locked away for a first home purchase – not a European summer or a new car.

For full information, visit the following page:

ATO – First Home Super Saver Scheme

The Tax Benefit?

This is where the strategy can become even more attractive.

These contributions are generally taxed on their earnings at 15% inside super, which may be lower than their personal marginal tax rate if they are earning an income.

For someone earning a higher income, this can create meaningful tax savings while they save for a deposit. A key benefit is that your adult child can then potentially receive a tax deduction benefit for the contributions.

In a recent client example, Jane, a 30-year-old earning $120,000, had roughly $8,000 more available for a deposit by her parents contributing to her super fund, rather than providing her the same amount as cash.

Is it worth considering?

This strategy is not suitable for everyone.

There are rules around contribution caps, eligibility, tax treatment, and timing that need to be managed carefully.

But for parents who want to:

Help their children enter the property market
Access potential tax benefits
Ensure the money is being used for a home deposit

…it can be a practical alternative to simply transferring cash and hoping it gets used wisely.

We regularly help families assess whether strategies like this fit within their broader financial plan, both for parents providing support and children trying to enter the property market.

About the Author:

Luke Pirozzi – Private Client Adviser – Vantage Wealth Management

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The 3 Phases Of Retirement You Need To Plan For

Posted on 1 April 2026 by Egg Admin

When we think about retirement, we usually imagine the overseas trips, long lunches and guilt-free naps. After decades of work and responsibility, we can finally spend our days doing the things that could once only be squeezed into holidays and weekends.

But retirement tends to happen in phases, and each phase places very different demands on our time, energy and finances. Understanding them upfront can put you in a much stronger position to enjoy the early years without compromising the later ones.

The Active Years (60 to 70)

The active years are when your health is generally good, your energy levels are still high, and there’s a backlog of interests and hobbies waiting to be explored. Travel, classes, volunteering – your to-do list will fill quickly.

But what often surprises retirees during this phase is how much money they’re spending. The costs associated with working life and supporting a family may have fallen away, but they’re quickly replaced by spending on experiences (not to mention new cars and long overdue renovations).

The main risk here is parting with too much money too quickly. The early retirement years are known as the go-go years for a reason, but you’ll need to strike a balance between making memories and preserving your savings. While the more lavish expenses will taper off over time, others – like council rates, utilities and insurance – will continue regardless of how active you are.

A few things that might help in this phase include:

Making sure you have a clear retirement spending plan that factors in inflation
Maintaining a cash buffer to fund irregular or one-off expenses
Checking your eligibility for the Age Pension as you approach 67.

The Sedentary Years (70 to 80)

This phase tends to herald the quieter part of your golden years. Regular outings become less appealing, doctor’s appointments become more common, and – wonderful as they might be – visits from your grandkids might demand an extra rest day or two for recovery.

As the pace of life slows, we tend to see less spending on big ticket items and more on day-to-day living and hobbies of the more relaxing, if not sedentary, kind. It’s also around this time that healthcare costs start to rise.

So while this phase might not be as eventful as the first and last stages, it marks an important inflection point as far as your finances are concerned. Some things to consider include:

Ensuring your income streams are simple, reliable and easy to manage
Deciding whether to downsize your home
Planning for higher healthcare costs without assuming they’ll be covered entirely by Medicare
Making sure your will, super beneficiaries and powers of attorney are up to date.

The Frail Years (80+)

The final phase of retirement is the one furthest from people’s minds throughout their working years, but it’s often the most expensive and least flexible.

It’s during this phase that health issues become more pressing and daily tasks start to require assistance. Some people remain at home with support – whether it’s family, carers or mobility-friendly home modifications – while others move into aged care facilities.

Whatever you choose, there’s still a lot of uncertainty around long-term costs. While average life expectancy statistics can provide a rough benchmark to help you plan, they can’t be treated as predictions. You might have to fund your lifestyle for another decade or two beyond what you might initially expect.

Preparing for this phase involves:

Understanding how aged care funding works and how your income and assets may be assessed
Reviewing your super, savings and investments to make sure they can support you long-term
Staying vigilant for scams and financial abuse, which older Australians often fall victim to.

Planning Across All Three Phases

The most effective retirement plans consider all three phases from the very beginning. Focusing just the early years can leave you struggling later on, when your options have narrowed and money is in shorter supply.

This doesn’t mean predicting every expense or living frugally for decades. But you should recognise that retirement is a long-term journey that requires you to evolve with it.

If you can remain flexible and open to adjusting your spending, lifestyle and priorities as each phase unfolds, you’ll be better placed to enjoy the full spectrum of retirement, from the lively years to the quieter, more dependent ones.

About the Author:

This information was sourced from the Financial Knowledge Centre.

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From Family Home to Financial Flexibility

Posted on 16 February 2026 by Egg Admin

For Australians aged 55 and over, downsizing the family home can open the door to a powerful, and often overlooked, tax planning strategy: the ‘downsizer contribution’.

We see people quite rightly releasing money from, at times, their biggest asset – the family home.

This can be because current up-keep is unsustainable; money might be needed to top up the retirement investment pool; they’re cashing up well before any extra care may be needed; or they’re just looking to put some money aside in case the kids get themselves in a crisis.

Whatever the aim, rather than just adding those monies to existing taxable investments, eligible individuals can redirect a substantial portion of their home sale proceeds into super and convert to tax free pensions; even if they’re already retired.

When used thoughtfully, the ‘downsizer contribution’ can assist with:

Strengthening Retirement Savings: A one off opportunity to move up to $300,000 per person ($600,000 for eligible couples) into your super, helping bolster balances later in life.
Improving Long Term Tax Outcomes: Funds inside super benefit from concessional tax treatment, supporting efficient and often tax-free retirement income.
Flexibility & Diversification: Shifting wealth from property into super can turn a concentrated and illiquid asset into a highly accessible and balanced portfolio.
Avoiding Costly Mistakes: Eligibility rules, strict timing requirements, and flow on impacts (including Centrelink and estate planning considerations) mean careful advice is essential, as this strategy is not for everyone.

Downsizing isn’t just about reducing the size of your yard and cashing up. With some forward planning it can deliver some fantastic tax benefits for people already in retirement.

* This article contains purely factual information and/or general advice and does not constitute personal financial product advice. The content of this article does not take into account your personal objectives, financial situation or needs and you must determine whether it is appropriate to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision.

This insight was originally featured on our social media feed.

Insurance Cover Explained

Posted on 9 February 2026 by Egg Admin

Insurance is a vital safety net that helps protect you and your family from financial hardship when life takes an unexpected turn. From covering medical expenses to replacing lost income, the right policies can provide peace of mind and stability during challenging times. This article explores four key types of insurance: Life Cover, Total and Permanent Disability (TPD), Trauma Insurance, and Income Protection – so you can understand how each works and why they are important for securing your financial future.

Life Cover

Life insurance will pay your beneficiaries a lump sum when you die. How much they get paid depends on the sum insured of your policy. This insurance reduces the financial stress of leaving behind debt and expenses for your spouse and/or family. Life insurance will be paid directly to your nominated beneficiaries. It can be used to fund items such as:

Funeral costs;
Final medical bills;
The balance of your home and/or investment mortgage;
Other debt;
Children’s education and other costs;
Ongoing income for your spouse or family members; or
Bequests to beneficiaries.

Most life insurance policies have a waiting period for suicide, normally 12-13 months from the commencement of the policy.

Total and permanent disability (TPD) insurance

TPD insurance provides a lump sum when illness or injury prevents you from being able to work again. Typically, TPD insurance allows for the payment of items such as:

Nursing and in-home care;
Rehabilitation;
Medical care;
Home or vehicle modification;
The balance of your home and/or investment mortgage;
Children’s education and other costs; or
Ongoing income for you and your family.

There are two types of occupation definitions that you can choose from that will impact your ability to claim, any or own occupation. The any occupation means you are unable to return to an occupation for which you are reasonably suited by education, training and/or experience. This definition makes it harder to claim as you may be able to return to a different occupation that suits your skills, training or experience. The own occupation definition means that you are unable to return to your occupation specifically. This makes it easier to claim as you are only being assessed against your own occupation.

Trauma insurance

Trauma insurance can provide a lump sum of money to help you meet medical expenses and clear debts when you have suffered a medical trauma. The types of trauma covered will differ between policies, with some of the more commonly defined events being cancer, heart attack, and stroke. Due to the temporary nature of these events (in many cases), no claim could be made under a TPD policy, but the medical costs could still be financially crippling. Trauma insurance may cover items such as:

Debts repayments;
Medical costs including specialised treatment;
Nursing or in-home care;
Care for children; or
Home or vehicle modifications.

One key difference between trauma insurance, compared to TPD or income protection, is that there is no work test. That is, the payment is made on the diagnosis and/or treatment of a specified medical event rather than your ability to work. This insurance, by its nature, cannot be held inside super.

Income protection

Income protection insurance provides a monthly payment in the event that you are unable to work due to illness or injury. Unlike TPD insurance, it covers temporary illness and injury. For new policies, total income from all sources is limited to 90% of your pre-disability income for the first 6 months and 70% thereafter. There is a waiting period before your monthly payments start and then you can continue to receive the payments for the benefit period, that is how long it is paid for. The cost of cover will depend on the waiting and benefit periods selected.

Income protection is designed to cover a large portion of your income for you to meet your financial commitments, medical costs and costs associated with your return to work.

With indemnity value income protection, there is no proof of income required until claim time. Generally, an average of your income over the preceding 12 months will be taken to determine your claim payment. If your income has reduced, so too will your payment.

Income protection policies have many additional features and benefits that can significantly assist in your time of need. Some of these can only be held outside of super to ensure you receive the benefit at the time of the claim. The product disclosure statement (PDS) will explain what these benefits are. Some are at no cost, while others will add to the cost of your policy.

Income protection provides regular replacement income if you are unable to work due to illness or injury. Rather than paying a single lump-sum, it offers an ongoing monthly benefit for the duration of recovery or for the specified benefit period stated in the policy. It is particularly relevant for individuals whose household finances rely heavily on regular employment income.

Having comprehensive insurance cover ensures you and your loved ones are prepared for life’s uncertainties. By understanding these options and tailoring them to your needs, you can create a strong financial safety net that offers security and peace of mind when it matters most.

* This article contains purely factual information and/or general advice and does not constitute personal financial product advice. The content of this article does not take into account your personal objectives, financial situation or needs and you must determine whether it is appropriate to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision.

About the Author:

Robert Tawil – Private Client Adviser – Vantage Wealth Management

Robert values building strong relationships that are founded on trust and is passionate about helping people take control of their financial affairs and achieve their goals.

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Understanding West State Super: What It Is, How It Works & Why Good Advice Matters

Posted on 2 February 2026 by Egg Admin

If you’ve worked in the WA public sector at any point over the past few decades, you may have a West State Super account without even realising it. We regularly meet people who say, “I think I have one… but I’m not exactly sure how it works.”

West State Super is a unique, untaxed, and constitutionally protected scheme with rules and opportunities distinct from standard super funds. Understanding these differences is essential for effective retirement, tax, and estate planning.

What Is West State Super?

West State Super is an untaxed scheme administered by GESB and was available to WA public sector employees until it closed to new members in April 2007.

If you joined before 2007 – even if you’ve since changed positions or left the public sector – you may still hold a West State account today.

What makes West State unique is its structure:

No 15% tax on employer or salary-sacrificed contributions
No tax on investment earnings within the fund
Tax is applied when withdrawing or rolling over your benefit

That makes West State powerful when used strategically, but potentially costly if misunderstood.

Key Features You Should Know

You can salary sacrifice up to 100% of your public sector salary

This is one of the most misunderstood advantages of West State. While taxed funds restrict concessional contributions to annual caps, West State allows contributions up to 100% of your public sector salary (subject to employer policy). For many clients, who have the available cash flow, this is an opportunity to rapidly boost super tax-efficiently — especially in the final working years.

The scheme uses a lifetime “untaxed plan cap”

Instead of the normal annual concessional caps, West State is governed by a lifetime cap on untaxed benefits. For the 2025-2026 financial year, the untaxed plan cap is $1,865,000.

Understanding where you sit against this cap is crucial, particularly for higher-earning or long-tenured public sector employees.

There are strategies that can utilise the lifetime cap on untaxed benefit to avoid paying an extra 30% on withdrawals.

West State offers unique estate planning outcomes

As West State is constitutionally protected, beneficiary tax outcomes differ significantly from standard funds. Dependants under the Superannuation Industry (Supervision) Act can receive the entire benefit tax free.

Rollouts and withdrawals have different tax consequences

Rolling out of West State or transitioning into retirement requires careful consideration. A poorly timed roll-over or withdrawal can result in avoidable tax, whereas a well-planned strategy can significantly improve outcomes.

Common Pitfalls (and How to Avoid Them)

West State is powerful , but only when used properly. This is the section where we see the biggest impact on clients’ retirement outcomes.

Here are the pitfalls we see most often:

Assuming West State works like a normal super fund

Many members believe West State behaves the same way as industry or retail funds. But because it’s untaxed and constitutionally protected, standard super strategies don’t always apply.

What this causes:

Incorrect contribution strategies
Confusion about caps
Misunderstanding of tax outcomes at retirement

Rolling out at the wrong time

One of the most financially damaging mistakes we see is rolling out of West State without advice.

Poor timing can trigger unnecessary tax, especially when:

moving to another super fund
transitioning to retirement
accessing benefits because of a job change

Often, staying in West State for a little longer — or rolling out in a structured way — results in a far better outcome.

No link between West State, estate planning and tax planning

Super is often considered in isolation. But West State’s unusual tax rules mean estate outcomes can vary dramatically depending on:

who the beneficiaries are
how benefits are withdrawn
whether rollovers occur before or after death
how the estate structure is set up

A coordinated plan between your adviser, accountant and solicitor can transform the final outcome.

Why Seeking Advice Matters

West State Super can be an exceptionally valuable part of a retirement plan — but only when its unique rules are clearly understood and strategically applied.

We work closely with WA public sector employees, as well as with accountants, lawyers and mortgage brokers who support them, to:

✔ Explain exactly how West State works

✔ Review contribution opportunities

✔ Plan for retirement tax efficiency

✔ Coordinate estate planning considerations

✔ Time roll-outs and transitions correctly

West State is not a simple fund, but with the right guidance it can be one of the most effective tools available to WA public servants.

If you or someone you assist holds a West State account, we’re here to help ensure it’s managed properly, and strategically for the best long-term outcome.

* This article contains purely factual information and/or general advice and does not constitute personal financial product advice. The content of this article does not take into account your personal objectives, financial situation or needs and you must determine whether it is appropriate to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision.

About the Author:

Robert Tawil – Private Client Adviser – Vantage Wealth Management

Robert values building strong relationships that are founded on trust and is passionate about helping people take control of their financial affairs and achieve their goals.

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Vantage Investment Philosophy – Part 3: Update on Australian Private Credit

Posted on 26 January 2026 by Egg Admin

1 October 2025

Given recent regulatory developments within the Australian private credit sector, we felt it important to share our views to provide clarity and reassurance. The sector has been the subject of heightened public commentary following the release of ASIC’s latest review, and as private credit plays an increasingly important role in client portfolios, we believe our perspective will help place these developments into context.

ASIC Report and Key Findings

The Australian private credit sector is presently subject to an in-depth regulatory review conducted by ASIC, which has shared its findings with the public via the publication of a detailed report (REP 814) entitled Private Credit in Australia (9 September 2025). The report recognises the vital and growing role private credit plays in complementing bank lending and providing funding diversity across the financial system, while also highlighting areas where governance, disclosure, and operational practices can be improved. We view these recommendations as part of a broader effort to set higher industry standards, which should support a stronger, more resilient private credit market as the sector continues to expand.

Sector Concentration Risks

A key theme from ASIC’s review relates to the concentration of lending within the real estate construction and development segment, accounting for approximately half of the estimated $200 billion market. While this area provides opportunities, it also introduces elevated risks given high construction costs, subdued commercial property values, and the presence of less experienced capital providers.

Transparency and Governance

ASIC identified shortcomings in disclosure standards, valuation methodologies and reporting practices across some funds, while also noting that asset managers serving institutional investors, including superannuation funds and family offices, often demonstrate more robust governance frameworks. Importantly, we see these regulatory observations as constructive as by raising the bar on transparency and disclosure, the regulator is supporting a healthier, more sustainable market environment for both investors and borrowers.

Heightened Regulatory Action

In tandem with the report’s release, ASIC’s enforcement activities have intensified. Temporary stop orders were placed on several private credit funds, reflecting increased regulatory surveillance and real action. Additionally, Lonsec recently downgraded several private credit funds amid governance and transparency issues. These developments reinforce the need for rigorous due diligence, stronger governance frameworks, and enhanced transparency from private credit fund managers.

Vantage’s Approach to Private Credit

At Vantage, our private credit allocations focus on funds with robust diversification beyond real estate, important to mitigate concentration risks. On the rare occasions where compelling, single asset real estate-backed opportunities arise, we reserve these exclusively for experienced clients with relevant property market expertise. Each investment is reviewed on a deal-by-deal basis to ensure close alignment with the individual investor’s objectives and risk profiles

The ASIC insights underscore the value of our disciplined and selective approach to private credit investment. We conduct comprehensive due diligence on all manager partnerships, requiring full transparency over holdings, valuation processes, and fee structures. The Vantage Investment Team also engages frequently with the portfolio managers (typically on a quarterly basis) to monitor underlying exposures and adherence to stated processes. This rigorous approach ensures that where private credit is included, it is done so selectively and with appropriate safeguards.

Role in Client Portfolios

Vantage continues to believe private credit can serve as an important diversifying component in client portfolios. Just as equities span a spectrum from defensive businesses with steady earnings and dividends to more speculative companies with volatile share prices, private credit too covers a wide risk–return range.

Alongside diversification benefits, private credit offers attractive income yields in a modest interest rate environment, low correlation to listed markets, and access to opportunities not typically available in public markets. When carefully selected and managed, private credit can provide both resilience and incremental return potential within long-term portfolios.

Conclusion

We regard ASIC’s inquiry on the Australian private credit industry as a constructive development that will ultimately enhance the quality and durability of the sector. An awareness within the sector of stronger governance, improved transparency, and more consistent disclosure standard monitoring will benefit investors and improve confidence in the asset class. Combined with our selective approach, we believe this creates an opportunity for clients to access well-diversified private credit strategies that contribute meaningfully to portfolio diversification and income generation, with risks well managed and understood.

* This article contains purely factual information and/or general advice and does not constitute personal financial product advice. The content of this article does not take into account your personal objectives, financial situation or needs and you must determine whether it is appropriate to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision.

About the Author:

Anthony Nguyen – Head of Investments – Vantage Wealth Management

Anthony commenced his career in the financial services industry in 2018, bringing a strong educational background to his role. He holds a Bachelor of Commerce from the University of Western Australia and a Master of Finance from Curtin University, where he received the Curtin School of Economics and Finance Head of School Prize for graduating at the top of his class. He has also successfully passed the CFA Level 2 exam.

As the Head of Investment at Vantage Wealth Management, Anthony is responsible for overseeing investment due diligence, investment governance and portfolio management of the Vantage Managed Accounts. He is an integral member of both the Vantage Investment Team and the Vantage Investment Committee.

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Superannuation: More Than Just a Retirement Fund

Posted on 19 January 2026 by Egg Admin

Superannuation is often seen as a “set and forget” account, not offering much flexibility or tangible benefits. In 2024, TAL Australia conducted research outlining that 38% of Australians aged 55+ are concerned about having insufficient funds to cover basic living costs in retirement.

The reality is that superannuation is a powerful planning tool in a landscape of shrinking avenues to optimise tax and transfer wealth to the next generations. Areas getting significant focus across our advisory team with clients include:

Service, Fee and Performance Analysis: Considering different superannuation platforms and industry fund alternatives
Withdrawal and Re-Contribution Strategies: Reducing death benefits tax payable by adult children.
Downsizer Contributions: Considerations of large contributions into your 60s and potentially 70s using property downsizer rules.

The earlier you plan, the more options you have.